HomeMy WebLinkAboutResolution 98-020 home investment sweat equity optionMARANA RESOLUTION NO. 98-20
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA,
AMENDING SECTION 3.2 REGARDING DOWN PAYMENT REQUIREMENTS OF THE
PROGRAM REGULATIONS OF THE HOME INVESTMENT PARTNERSHIPS PROG~ OF
THE TOWN OF MARANA TO ALLOW FOR THE OPTION OF "SWEAT EQUITY"
REPLACING THE FINANCIAL DOWN PAYMENT REQUIREMENT AND THE OPTION TO
WAIVE BOTH REQUIREMENTS, YVHEN NECESSARY, AND REPEALING ALL
CONFLICTING REGULATIONS THEREOF.
WHEREAS, the Town of Marana entered into a Home Investment Partnerships Program
(Home Program) in conjunction with Pima County on May 23, 1995 by Resolution No. 95°30; and
WHEREAS, the Town of Marana adopted Program Regulations for the Home Program on
November 12, 1995, by Resolution No. 95-64; and
WHEREAS, although the financial requirements of the Home Program are greatly reduced
to facilitate the purchase of homes by low-income families, there still remains a significant barrier
to some low-income families by the requirement of a $1,000 down payment on the purchase of a
Home Program property; and
WHEREAS, the Town believes it is necessary to require some form of sacrifice by a home
buyer in this program to show a vested interest; and
WHEREAS, almost without exception all homes included in the Home Program require a
significant amount of physical labor in preparing them for occupancy, a viable option to the down
payment requirement would be to allow prospective home buyers to provide manual labor in
readying the home for occupancy, in other words, to substitute "sweat equity" in lieu of the do;vn
payment amount, at a rate of $10.00 per hour for such labor performed on the home; and
WHEREAS, the Town recognizes that not all prospective purchasers will have the physical
capability to perform "sweat equity" to fulfill the vested interest requirement, and may also not have
the funds to provide the cash down payment, and in such circumstances the Town should have the
option of waiving both requirements; and
WHEREAS, the Town Council has determined that the amendments to section 3.2 of the
Home Program Regulations to change the down payment requirements of applicants to the Home
Program to allow for the option of"sweat equity" in lieu of the cash down payment requirement in
the purchase of a Home Program property, and to have the authority to waive both requirements,
when necessary, are in the best interests of the Town of Marana.
Marana, Arizona Resolution No. 98-20 Page 1 of 1
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Town Council of the Town of
Marana, amending Section 3.2 of the Program Regulations of the Home Investment Partnerships
Program, with additions shown by CAPITAL LETTERS, and deletions shown by str/keom, as
follows:
0003.2 Down Pawnent Requirements
APPLICANT IS REQUIRED TO PUT AT LEAST $ 1,000 TOWARD DOWN PAYMENT,
OR AN EQUIVALENT AMOUNT OF SWEAT EQUITY (CALCULATED AT THE RATE
OF $1 O/HOUR). IN CIRCUMSTANCES WHERE THE RECiPIENT HAS NEITHER THE
FUNDS NOR THE PHYSICAL CAPABILITY TO PERFORM SWEAT EQUITY, THIS
REQUIREMENT MAY BE WAIVED.
PASSED AND ADOPTED by the Mayor and Council of the Toxvn of Marana, Arizona, this
3rd day of March, 1998.
Daniel J. Hochuli
Town Attorney
Mayor ORA MAE I~ARN/
Marana, Arizona Resolution No 98-20 Page 2 of 2