Department: Resource Management
Staff Contact: Dianna Wright
Subject: Authorization of a cooperative agreement with Sedgwick County and Shawnee County for participation in a statewide program allowing low and moderate income qualifying home buyers the ability to purchase homes with either reduced interest rates, down payment assistance or both.
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Item Description:
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Consideration of Resolution No. 19-1050 authorizing the execution of a cooperative agreement with Sedgwick County, Kansas and Shawnee County, Kansas (Issuers) authorizing the Issuers to exercise, on behalf of the City of Olathe, the authority and powers conferred by the Kansas Local Residential Housing Finance Law.
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Summary:
In the mid-1990s, Sedgwick County and Shawnee County, acting jointly have sponsored and made available to all cities and counties in Kansas a statewide program (through HUD) allowing low and moderate income qualifying home buyers the ability to purchase homes with either reduced interest rates, down payment assistance, or both.
The program is the only program of its type in the state of Kansas and has relied on the issuance of Single Family Mortgage Bonds and/or other means to make loans available to homebuyers. The loans are originated by any lender electing to participate and must meet traditional underwriting standards (FHA, VA, GNMA, etc.).
In 1995 the City of Olathe passed Resolution 95-1069 entering into a cooperative agreement with Sedgwick County and Shawnee County authorizing its participation in the state-wide program. Over 100+ Kansas cities participate in the program, including neighboring Johnson County cities. Since 2014 the program has closed $11,140,890 in mortgages for home buyers in Olathe. The City has no liability for costs incurred by the program and does not manage any aspect of the program.
Sedgwick County’s bond counsel (Gilmore & Bell) has asked that jurisdictions with long standing agreements reverify their continued interest in the program. Resolution 19-1050 reaffirms the City of Olathe’s interest in continued participation in this program.
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Financial Impact:
The program has no financial impact on the City of Olathe’s budget, but does provide an opportunity for low and moderate qualifying home buyers in Olathe the ability to purchase homes with either reduced interest rates, down payment assistance, or both.
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Action Needed:
Approval of Resolution No. 19-1050 authorizing the execution of a cooperative agreement with Sedgwick County and Shawnee County for participation in a statewide program allowing low and moderate qualifying income home buyers the ability to purchase homes with either reduced interest rates, down payment assistance or both.
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Attachment(s):
Attachment A: Resolution No. 19-1050 Attachment B: Exhibit of Cooperation Agreement Attachment C: Resolution No. 95-1069 Attachment D: Kansas Housing Assistance Program Flier