State, local nonprofit bolster homeownership with $250,000 award in 8-county area
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 Senator Carlos Uresti have announced a funding award to a Uvalde-based nonprofit agency that will assist eligible residents in an eight-county region with the purchase of their first home and provide much-needed benefits to the local economy.
TDHCA awarded $250,000 in down payment assistance funds to the Community Council of Southwest Texas, a community action agency serving Dimmit, Edwards, Kinney, Maverick, Real, Uvalde, Val Verde, and Zavala counties. The organization will use the funds to help an estimated 24 households purchase a home of their own.
“These funds will help families overcome the initial obstacle many homebuyers face, which is saving the money for their down payment and closing requirements,” said Senator Uresti, who represents Senate District 19 which includes the majority of the area served with this award. “This money will make it easier for families to achieve their dream of homeownership without straining their budgets before their first mortgage payment is even due.”
This award was made through the TDHCA’s Housing Trust Fund, portions of which help provide 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.
“Promoting homeownership is a critical mission of the Department,” said Michael Gerber, TDHCA Executive Director. “It helps to place families on the road toward financial success, creates more cohesive neighborhoods, improves academic achievement in community schools, and increases the local tax base.”
Under Housing Trust Fund rules, funds may be used to serve households earning no more than 80 percent of the area median family income.
The Housing Trust Fund is 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.
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.
Contact:
Gordon Anderson 512.475.4743
Jill McFarren 512.475.2844
