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Economic and Urban Development Department Memorandum <br /> # 06-15 <br /> February 1, 2006 <br /> TO: Honorable Mayor Osborne and City Council <br /> FROM: Steve G ity Manager <br /> Dane Bra , s istant City Manager� r �° <br /> Vickie Bu in am, Assistant Director of Economic and Urban Developme�� <br /> Richelle D. Irons,Neighborhood Redevelopment Manager �y <br /> Teresa L. Cunningham,Neighborhood/Housing Planner <br /> SUBJECT: Agreement with Lending Institutions for Decatur Homebuyer/ADDI Program <br /> RECOMMENDATION: <br /> Staff recommends approval of the attached resolution authorizing the City to enter into an <br /> agreement with local lending institutions to implement the Decatur Homebuyer/American Dream <br /> Downpayment Initiative (ADDI) Program. The program provides $5,000 in downpayment <br /> assistance for first-time homebuyers. <br /> BACKGROUND: <br /> For several years, the City of Decatur has used a portion of its federal HOME entitlement funds <br /> to implement a downpayment assistance program for first-time homebuyers in cooperation with <br /> local lenders. This year, the City has also received funds from the Illinois Housing Development <br /> Authority (II-IDA) under the American Dream Downpayment Initiative (ADDI) Program to use <br /> in conjunction with its HOME funds as a $5,000 5-year deferred, forgivable loan for <br /> downpayment and closing costs. First mortgages will be obtained through local lending <br /> institutions which agree to promote and participate in the program. Currently, five local lenders <br /> (Citizens Equity First Credit Union aka CEFCU, Hickory Point Bank, Main Street Bank, <br /> National City, Regions Bank, and Soy Capital Bank) have agreed to participate in the 2006 and <br /> 2007 program. A copy of the Agreement between the City and the Financial Institutions is <br /> attached. <br /> POTENTIAL OBJECTIONS: None known. <br /> INPUT FROM OTHER SOURCES: <br /> Neighborhood Redevelopment Staff,HOME regulations and guidelines,ADDI grant agreement. <br /> STAFF REFERENCE: <br /> If City Council members have questions, they may contact Vickie Buckingham at 424-2777 or e- <br /> mail at vbuckingham@decaturnet.org. <br /> BUDGET/TIME IMPLICATIONS: <br /> Proj ect may commence upon City Council approval of the Agreement. HOME and ADDI funds <br /> have akeady been allocated and approved. <br />