Section 7 Housing and Community Development
Policy 7-3 HOUSING PROGRAM POLICY
DISTRIBUTION : Mayor and City Council
SUBJECT : Housing Program
PURPOSE: To establish policy level guidance for implementation of local
funded and conducted under the Community Development Block Grant (CDBG) and HOME
Investment Partnerships (HOME) programs.
BACKGROUND: Each year the City of Lawton receives grant funds from the
Department of Housing and Urban Development (HUD) under the Community Development
Block Grant (CDBG) Program and the HOME Investment Partnerships (HOME) Program. HUD
encourages investment in housing affordable to and occupied by low-income persons and
families, those with incomes less than or equal to 80 percent of the area median family income
adjusted for family size. HUD promulgates detailed rules and regulations that govern grant
funded activities. The programs must be administered in accordance with those federal
guidelines. Therefore, there is no requirement or need for local council policies to prescribe local
procedures. It is appropriate, however, that the City Council provide local policy guidance for
the conduct of the housing programs. Council Policy 7-3 promulgates broad, general policy level
guidance for the conduct of the City
s federally funded housing programs. The housing
programs are administered by the Housing and Community Development Department. The
department is responsible to formulate policies and procedures to facilitate successful
administration of Lawton
s housing programs.
PROCEDURES: I. GENERAL POLICY. Housing assistance
programs funded by HUD
CDBG and HOME programs will be administered in accordance with federal guidelines
prescribed by HUD. Grant funds will be invested in housing activities in Lawton solely for the
benefit of low-income persons and families, as defined by HUD eligibility criteria. Funds may
be used for direct loans,
deferred loans, or grants or may be combined with other public or private money to provide
housing assistance to the greatest number possible of low-income persons or families. All
housing assistance programs will be administered in such a way as to ensure fair and equitable
distribution of benefits. Eligible applicants for funding assistance will be considered and
selected in compliance with the Fair Housing Act and without regard to race, color, national
origin, religion, sex, familial status or handicap.
II. SPECIFIC POLICY.
1. The Housing and Community Development Department Director shall develop and implement
local policies and procedures necessary to administer local federally funded housing assistance
programs in accordance with HUD
s CDBG and HOME program rules, regulations, federal
guidelines, and applicable state statutes.
2. The Housing and Community Development Department Director is responsible for
administering all CDBG and HOME housing assistance programs in accordance with HUD
guidelines and the guidance contained in this policy.
B. Housing Activities. The Housing and Community Development Department Director will
implement the housing projects and activities in accordance with the housing strategy established
in the City of Lawton Consolidated Plan. The Director will ensure all housing projects and
activities funded by HUD programs are administered to comply with HUD guidelines and the
guidance provided in this policy:
1. CDBG Housing Rehabilitation Project
2. CDBG Emergency Home Repair Project
3. CDBG Housing Improvement Project
4. HOME First-Time Homebuyer Project
5. HOME Homeowner Rehabilitation Project
6. HOME Tenant-Based Rental Assistance Project
7. HOME Rental Rehabilitation Loan Project
8. HOME Community Housing Development Organization Project.
C. Income Eligibility. Income eligibility will be established in accordance with HUD
recently published low-income criteria. Further, income eligibility for each housing project or
activity will be designed to target the housing needs and strategy outlined in the Consolidated
D. Loans and Grants.
1. The Housing and Community Development Department Director is approving authority for
grants and loans issued to eligible applicants.
2. All loans and grants awarded for local housing projects or activities which involve a long
obligation by the recipient(s) or in which the loan has an amortization schedule for payback will
be secured by a promissory note and mortgage between the recipient(s) and the City of Lawton.
E. Terms and Conditions of Loans and Grants.
1. If the property for which a loan is obtained is sold, transferred, rented, leased, assigned,
the borrower(s) permits any lien or security interest to attach upon the property, or if a contract
executed for the sale, transfer, rent or lease assignment of the property or any part thereof within
the period of the loan without the consent of the City Council, the loan becomes immediately due
and payable in full with interest retroactive to the date of the mortgage document.
2. If the borrower(s) satisfies all of the conditions of the loan agreement and payment in full
the loan at expiration of the agreement then the mortgage will be released.
3. Exceptions to paragraph II.D.2 above apply to the CDBG Emergency Home Repair Project
and the Housing Improvement Project which require short term obligations. In the latter case,
lieu of a promissory note and mortgage, a written agreement complying with HUD requirements
will be implemented between the recipient(s) and the City of Lawton.
4. For all loans and grants, a lien will be filed at the Comanche County Clerk
s office to secure
s obligations under the program agreement to ensure the property is not
contracted for sale, sold, or put to some other unauthorized use in contravention of HUD and
local policy requirements. If the property is not sold, transferred, rented leased or assigned,
the borrower(s) does not permit a lien or security interest to attach upon the property for which
the loan was obtained, or if a contract is not executed for the sale, transfer, rent, lease or
assignment of the property or part thereof within the term of the loan agreement and payment in
full of the loan, the lien on the property shall be released after the expiration date.
REFERENCES : None.
RESCISSION: This policy becomes effective June 9, 1998 and rescinds Council
30, 51, 60, and 61.
DEPARTMENT : Housing and Community Development
Cecil E. Powell
June 9, 1998