2006-05-11 - Laserfiche WebLink

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NOTICE OF SPECIAL MEETING A SPECIAL MEETING OF THE CHARLOTTESVILLE CITY COUNCIL WILL BE HELD ON Thursday, May 11, 2006 AT 5:00 p.m. IN THE Basement Conference Room. THE PROPOSED AGENDA IS AS FOLLOWS: Work Session: Criteria for homeownership preservation program by which grants would be provided to low and moderate-income homeowners in the form of a credit against their real estate bills BY ORDER OF THE MAYOR BY Jeanne Cox BASEMENT CONFERENCE ROOM – May 11, 2006 Council met in special session on this date with the following members present: Dr. Brown, Mr. Caravati, Mr. Lynch. Absent: Ms. Hamilton and Mr. Schilling. Ms. Lisa Kelley, Deputy City Attorney, reviewed the charter amendment, and said tonight’s focus will be on developing criteria for making grants. She said the City is required to use VHDA’s definition of low and moderate income persons. She said the VHDA’s definition of “low or moderate income,” for the Charlottesville metropolitan statistical area (MSA) is $63,300 for a household of two persons and $73,300 for a household of three or more persons. Ms. Kelley reviewed the eligibility requirements of Alexandria’s affordable homeownership preservation program. Mr. O’Connell said that Alexandria has hired two new people as their program has gotten more complicated. He said 1,021 people used the Alexandria program in 2005. Mr. John Gunter, Commissioner of Revenue’s office, reviewed the existing rent and tax relief program for the elderly and disabled. He said 470 properties currently use the program now. Mr. Lee Richards, Commissioner of Revenue, said that his office will keep track of administration costs, and will try to keep within the existing budget. He said he is not asking for additional funds at this time. Mr. Richards said that limits will be put into the data base and will link to qualifying parcels. He said a mass mailing will then be sent to all qualifying properties with a return envelope. He said the property owner’s federal tax return will provide all the necessary information. Mr. Dave Norris, Council Member Elect, asked if tax returns have to be used. Mr. Richards said that is the easier way for people to apply. He said other information could be taken, but it would make it more complicated. Mr. O’Connell said that staff recommends the following eligibility criteria: housing value of $238,200 which is the loan limit VHDA offers in Charlottesville to low and moderate income households; that a property for which a grant would be awarded should be owner-occupied as of January 1, 2006; and household income of no more than $50,000. Mr. Richards said that Council could consider excluding $8,500 of income of relatives in the house. This type of exclusion is part of the City’s elderly and disabled tax relief program. Mr. O’Connell said that, at this time, staff is not recommending requirement that an eligible property be subject to an ongoing mortgage obligation. Ms. Kelley said that in setting up the parameters of the program, Councilors should consider how the program will promote the purchase of homes by low and moderate income persons.