2021-13 Ordinance Approving the Transfer of Volume Cap in Connection with Private Activity Bond Issues, and Related Matters

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COMMUNITY DEVELOPMENT DEPARTMENT DATE: 3/11/2021 MEMO: 21-05 TO: Honorable Mayor Julie Moore Wolfe and City Council FROM: Scot Wrighton, City Manager Cordaryl"Pat Patrick, Community Development Director Greg Crowe, AICP, Planning and Development Manager SUBJECT: Ordinance Transferring 2021 Volume Cap in Connection with Private Activity Bond to participate in the ASSIST Homebuyer Program SUMMARY RECOMMENDATION: Staff recommends approval of the attached ordinance transferring the City's 2021 volume cap allocation of private activity bond issues to the Town of Normal, McLean County, Illinois to participate in the ASSIST Homebuyer Program. BACKGROUND: Each year, Home Rule communities throughout the state receive a direct allocation of private activity bonding authority that allows a municipality to issue bonds on behalf of a private user for development and housing projects. This year, Decatur has been authorized to issue a total of$7,485,450 in bonds as part of this year's allocation. The City of Decatur is being requested by the Town of Normal to transfer our bonding authority to participate in the ASSIST Illinois Mortgage Credit Certificate Program. The City has participated in the program in the past and our local lenders are familiar with the program. Over the last 12 months, 61 loans were originated in Decatur totaling more than $4.9 million. Several Illinois communities, including Decatur,pool their bonding resources together to provide this first-time homebuyer assistance. The program provides down payment assistance and reduced rate mortgages to income qualified families in the City of Decatur. See the attached flyer for more information on the program. PRIOR COUNCIL ACTION: N/A POTENTIAL OBJECTIONS: No known objectors INPUT FROM OTHER SOURCES: N/A STAFF REFERENCE: Contact Greg Crowe atcrg owe(&decaturil.gov BUDGET/TIME IMPLICATIONS: The City's volume cap allocation must be obligated by May 1, 2020 or it will automatically be returned to the State of Illinois for reallocation to other entities.