AUSTIN, TX – July 14, 2008 – (RealEstateRama) — Recognizing that homeownership is the key to creating stable families and communities, the Texas Department of Housing and Community Affairs (TDHCA) and State Representative Eddie Lucio III have announced a funding award to a San Benito-based nonprofit organization that will provide down payment and home rehabilitation assistance to low income residents as well as much-needed benefits to the local economy.
TDHCA made two awards totaling $250,000 to Community Housing Services, Corporation, a nonprofit 501(c)(3) affiliate of the San Benito Housing Authority. The organization expects the awards to assist a total of 12 households.
“These funds will help families overcome the biggest obstacle many homebuyers face: meeting the down payment and closing requirements,” said State Representative Eddie Lucio III. “In addition, these funds will also make needed repairs to homes owned and lived in by some of our most vulnerable neighbors.”
Community Housing Services will use $61,000 in down payment assistance funds to help provide six qualifying first time homebuyers with down payment and gap financing. Assistance comes in the form of a zero percent interest, 10-year deferred forgivable loan. All participants in the program must go through homebuyer counseling, and the maximum loan amount per homebuyer is $10,000.
“Helping place Texans in a home of their own is a critical mission of the Department,” said Michael Gerber, TDHCA Executive Director. “But it’s equally important that we ensure these homes are in a good, safe condition. Together with our partners at the local level, we’re putting families on the road toward financial success, creating healthier, more cohesive neighborhoods, and increasing area construction jobs as well as the local tax base.”
The rehabilitation assistance award totaled $189,000 and will provide another six homeowners assistance in repairing and improving their single family homes, including help with architectural barrier removal. Assistance will be in the form of a zero percent interest, 20-year deferred, forgivable loan, and the maximum loan amount per homeowner is $30,000.
Gerber explained that both awards were made through the Housing Trust Fund, the Department’s only affordable housing program to receive funding from state revenue for the acquisition, rehabilitation and new construction of housing to serve low income Texans. Eligible applicants include qualifying nonprofit housing organizations, units of local government, public housing authorities, and certain for-profit entities.
Under Housing Trust Fund rules, funds may be used to serve households earning no more than 80 percent of the area median family income. For San Benito and Cameron County, this equals an annual income of $34,900 for a family for four.
About The Texas Department of Housing and Community Affairs
The Texas Department of Housing and Community Affairs is the state agency responsible for affordable housing, community and energy assistance programs, and colonia activities. The Department annually administers more than $400 million through for-profit, nonprofit, and local government partnerships to deliver local housing and community-based opportunities and assistance to Texans in need.
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