HomeMy WebLinkAbout1999-08-25 HAC MIN CITY OF CHULA VISTA
MINUTES
HOUSING ADVISORY COMMISSION
Wednesday August 25, 1999 Housing Conference Room
3:30 p.m. Legislative Building
CALL TO ORDER/ROLL CALL - 3:35 p.m.
PRESENT: Chair Madrid, Members McCann, Lopez-Gonzalez, Clayton, Dufresne, Ahamed
ABSENT: Worth
STAFF: Housing Coordinator Arroyo, Community Development Specialist II Atwood,
Administrative Secretary Hernandez
1. MSC (McCann/Clayton) to approve July 7, 1999 minutes (6-0-1 Worth absent).
2. LEASE-TO-OWN PROGRAM -
Ms. Atwood gave a brief summary on a Lease-to-Own Program. Ms. Atwood stated that the City
received a proposal from J.K. Chilton & Associates introducing a new affordable housing program
that would promote home ownership opportunities for qualifying households in Chula Vista. Ms.
Atwood mentioned that this program would utilize bonds for down payment and closing cost
assistance. Basically the homebuyer signs a three-year lease which would reflect the monthly
payments under a traditional 30-year conventional fixed rate mortgage established at the time the
lease-purchaser commits to the house. After signing a three-year lease, the home purchaser makes
monthly payments to the program's non-profit corporation which holds title to the home. Ms.
Atwood stated that the lease would cover principal, interest, taxes, insurance, and an administrative
fee for a non-profit to oversee that the properties are administered properly. Upon conversion to
home ownership status, the homeowner would make the monthly mortgage payments for the
remaining 27 years (30 year minus the 3-year lease period). The lease-to-own conversion takes
place without interruption to the homeowner and without any increase in monthly payments.
Chairman Madrid asked if the City would administer the program.
Ms. Atwood responded that the cities would be involved in the Joint Powers Authority. The actual
program administration will be run by a non-profit. The lease payments will be paid to the non-
profit, which in turn the non-profit will distribute the monies to the mortgage companies. The City
will have no staff involvement, no financial involvement, other than determining the qualifying
guidelines for the program. Any City that participates in the Lease-to-Own program can create the
program within its own boundaries and requirements.
Ms. Atwood stated that a representative from J.K. Chilton & Associates would be invited to the
next scheduled meeting to discuss and answer any questions regarding the Lease-to-Own program.
MSC (McCann/Lopez-Gonzalez) to approve in concept the Lease-to-Own Program (6-0-1 Worth
absent).
3. STAFF REPORTS -
Ms. Atwood mentioned the Outstanding Local Government Supporter Award that was given to the
City of Chula Vista for the Cordova Village Project.
4. MEMBERS' COMMENTS -
Member McCann stated that he attended the hard hat premiere of Teresina Loma Verde, and
mentioned that it's a fabulous project. Member McCann commended staff and the Housing
Advisory Commission.
5. ADJOURNMENT - 4:05 p.m. to the next scheduled meeting of October 27, 1999.
Recorder, Alicia Hernandez