Site search
sponsored by
Home
News
Grass Valley received a $500,000 grant from the California Department of Housing and Community Development for its first-time homebuyers program.
“We've been looking forward to getting that funding,” said city Community Development Director Joe Heckel.
The money will help fund the purchase of six houses for low-income buyers, Heckel said. The assistance program provides qualified homebuyers with as much as $75,000 for a down payment.
Grass Valley had had the homebuyers' assistance program in place since 1998 and has issued 42 loans with an estimated $1.8 million in grant funds since then.
“The sources we had in the past had all been depleted,” Heckel said.
And, Heckel said, for several years low-income buyers couldn't qualify for a loan even with the down payment.
“The purchase price of the homes they were looking to buy were significantly beyond their purchase power,” he said. “The good part about getting this money now is that housing prices have dropped to the point where some people can potentially qualify now.”
As of late July, Grass Valley had about 65 homes under the maximum purchase price the state allows for first-time buyers in Nevada County, according to a report prepared by City Hall staff.
The parameters of the new program will be much the same as the current program, which allows a maximum loan amount of $75,000 to be used for down payment, closing costs or both. The terms are 0 percent deferred for 30 years.
To qualify, residents must make no more than 80 percent of Nevada County's median income — $51,350 for a family of four.
The note becomes due and payable when the borrower sells the home, rents the home, adds someone to title other than an immediate family member (defined as a parent, spouse or child), refinances without prior written approval from the city or changes the use from single family residential.
At the time the note becomes due and payable, the homeowner will be required to pay back to the city the original amount of the loan plus a percentage of the net appreciation on the home.
The program could possibly start in March or April of 2010 and Heckel noted the city probably already has a backlog of interested applicants.
The funding is part of a $25.2 million grant from the federal HOME Investments Partnership Program, which was awarded to 32 municipalities and county governments to provide housing opportunities for Californians.
To contact Staff Writer Liz Kellar, e-mail lkellar@theunion.com or call 477-4229.
“We've been looking forward to getting that funding,” said city Community Development Director Joe Heckel.
The money will help fund the purchase of six houses for low-income buyers, Heckel said. The assistance program provides qualified homebuyers with as much as $75,000 for a down payment.
Grass Valley had had the homebuyers' assistance program in place since 1998 and has issued 42 loans with an estimated $1.8 million in grant funds since then.
“The sources we had in the past had all been depleted,” Heckel said.
And, Heckel said, for several years low-income buyers couldn't qualify for a loan even with the down payment.
“The purchase price of the homes they were looking to buy were significantly beyond their purchase power,” he said. “The good part about getting this money now is that housing prices have dropped to the point where some people can potentially qualify now.”
As of late July, Grass Valley had about 65 homes under the maximum purchase price the state allows for first-time buyers in Nevada County, according to a report prepared by City Hall staff.
The parameters of the new program will be much the same as the current program, which allows a maximum loan amount of $75,000 to be used for down payment, closing costs or both. The terms are 0 percent deferred for 30 years.
To qualify, residents must make no more than 80 percent of Nevada County's median income — $51,350 for a family of four.
The note becomes due and payable when the borrower sells the home, rents the home, adds someone to title other than an immediate family member (defined as a parent, spouse or child), refinances without prior written approval from the city or changes the use from single family residential.
At the time the note becomes due and payable, the homeowner will be required to pay back to the city the original amount of the loan plus a percentage of the net appreciation on the home.
The program could possibly start in March or April of 2010 and Heckel noted the city probably already has a backlog of interested applicants.
The funding is part of a $25.2 million grant from the federal HOME Investments Partnership Program, which was awarded to 32 municipalities and county governments to provide housing opportunities for Californians.
To contact Staff Writer Liz Kellar, e-mail lkellar@theunion.com or call 477-4229.
