MEMORANDUM

TO: City Council

FROM: David J. Deutsch, City Manager

SUBJECT: Closing Cost Assistance Program

DATE: June 10, 2008

The FY09 Budget will contain a $10,000 allocation to provide $500 in closing cost reimbursement for certain individuals meeting City Council defined criteria. The purpose of this memorandum is to seek Council’s verification of the criteria as described at the May 12, 2008 Council Budget Worksession. That night, the program was described as targeting first time homebuyers who are purchasing a home in Bowie. The program is restricted to Bowie Police Officers and to teachers who teach in public schools in the City of Bowie.

If Council concurs that the parameters described above are an accurate reflection of Council policy, staff will initiate the development of the necessary administrative framework, including but not limited to public information and application procedures including documentation requirements. Staff will also further examine programs available from the State of Maryland through its Department of Housing and Community Development (DHCD) that may provide an opportunity for program participants to leverage the City contribution into a larger housing cost offset. We will also determine the existence of any other similar program at the county, state or federal level that may complement the Bowie effort.

Administrative procedures will be as streamlined as possible, so that program participants and staff are not burdened with unnecessary “red tape”.

The public information element will involve letters to the Prince George’s County Public Schools (Superintendent John Deasey and Regional Supervisor Kathy Kurtz), principals of the schools in Bowie, notification to local real estate professionals, outreach to the local media, an article in an upcoming issue of the City newsletter, and information to be posted on the City website.