R2023-205 Resolution Authorizing Agreement with Community Investment Corporation of Decatur for Managing the Decatur Homebuyer Ecosystem, Counseling and Education Program

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L CICD COMMUNITY INVESTMENT GORP;IRATIOM �;1F C'_'Oi;7UR • Expected results/outcomes from overall processes; a generalization of what typically happens with counseling one- on-one. In addition to the development of an action plan,CICD's counselor will complete a Financial Analysis for the client. For this the counselor and the client will do the following: • Client completes a budget form. • Applicable clients receive third-party authorization,including the release of information and the ability to speak on their behalf. • Obtain and verify the budget by having the client bring proof of income and expenses through copies of paystubs, bank statements, and receipts/invoices. • Discuss ways to save money,cut expenses,and ensure the client understands and agrees,which is particularly important during post-purchase counseling. • Develop a budget the client can afford and explain their debt-to-income ratios and how that compares to living costs and maintaining lifestyles. Individual one-on-one counseling for homeownership will cover all the topics described in the Group Education section above to ensure the entire homeownership process is discussed,and will include additional topics based on the potential home buyer's need. There may be the need for several appointments to ensure the client's satisfaction and understanding of all of the program's material.After completion of pre-purchase counseling,the client is given a certificate to confirm counseling attendance with a HUD-approved agency,and that certificate is suitable for two years from the date of counseling. CICD maintains a policy for client follow-up to ensure that clients are progressing towards their housing goals once counseling services have begun. If CICD has not been in contact with a client as scheduled,three attempts are made within a 30-day period to contact that client.Two attempts are made to schedule a verbal or face-to-face follow-up session. If the initial attempts are unsuccessful,a written communication(email or letter)is sent to the client mentioning the unsuccessful contact attempts and informing them that there is a need for follow-up communication. Individual Credit Counseling CICD provides all of its clients with credit counseling. As part of counseling intake,individuals create personalized budgets, realistic goals for spending,and plans to manage debt. CICD's housing counselor conducts a credit review which enables the discussions to be focused on healthy credit habits,reducing or eliminating debts, and banking benefits.Unbanked clients learn key financial terms and processes related to lending,those institutions'duties,and credit scoring. While CICD does not offer credit building products,during credit counseling clients are presented with multiple products available from other entities,including financial institutions,that meet their individual needs. Client credit scores are used for a discussion and review of expenses and spending habits to produce financial accountability and stabilization for future saving needs.This practice can help LMI households improve their financial stability and credit score,preparing them to participate in the pre- purchase program in the future. Marketing and Outreach In addition to its current outreach activities discussed above, CICD will work with the SOLVR Group,a local consulting company,to develop and implement a marketing and outreach strategy to increase awareness of their pre-purchase counseling services,the homeownership opportunities available in Decatur,highlight Homebuyer Ecosystem partners, including the City of Decatur,and bring clients into the Homebuyer Ecosystem. The Homebuyer Ecosystem coordinator will act as the point of contact with SOLVR,to direct their actions and will implement aspects of the strategy that can be directly handled by CICD. 3