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DEVELOPMENT SERVICES MEMORANDUM <br /> NO. 11-04 <br /> January 11, 2011 <br /> TO: Honorable Mayor Michael T. McElroy and City Council <br /> FROM: Ryan P. McCrady, City Manager <br /> Greg C. Crowe, Assistant City Manager <br /> Richelle D. Irons, Director of Neighborhood Services <br /> Vickie J. Buckingham,Neighborhood Programs Manager <br /> SUBJECT: Agreement with Federal Home Loan Bank of Chicago and Busey Bank <br /> for the Affordable Housing Frogram(AHP) funds <br /> RECOMMENDATION: Staff recommends approval of the attached resolution authorizing the City <br /> ("Project Sponsor")to enter into an agreement with Federal Home Loan Bank(FHLB) of Chicago <br /> ("Bank") and Busey Bank("Member") for the Affordable Housing Program (AHP). The FHLB of <br /> Chicago program will provide $38,000 for 10 units in down payment assistance for low/moderate <br /> income first-time homebuyers. The City of Decatur will commit to provide assistance to ten <br /> homebuyers under the HOME Down Payment Assistance Program. <br /> BACKGROUND: Busey Bank recognizes affordable home ownership continues to challenge the <br /> low/moderate income home buyer. Busey Bank approached City staff with the opportunity to <br /> participate in the Affordable Housing Program with the FHLB and Busey Bank. The FHLB of <br /> Chicago Affordable Housing Program will provide additional assistance to new homebuyers. The new <br /> homeowner will be provided an opportunity to access both the FHLB Affordable Housing Programs <br /> funds and the City of Decatur's HOME Down Payment funds. First mortgages will be obtained <br /> through Busey Bank. Busey Bank agrees to promote and participate in the program. A copy of the <br /> Agreement between the City, Busey Bank, and the Federal Home Loan Bank of Chicago is attached. <br /> POTENTIAL OBJECTIONS: None known. <br /> INPUT FROM OTHER SOURCES: Neighborhood Outreach Division, HOME regulations and <br /> guidelines. <br /> STAFF REFERENCE: If City Council members have questions, they may contact Richelle D. Irons <br /> at 424-2864 or e-mail at rirons@decaturil.gov. <br /> BUDGET/TIME IMPLICATIONS: The program may commence upon City Council approval of <br /> the Agreement and submission of the signed agreement to FHLB. <br />