State makes $500,000 commitment to increasing, maintaining homeownership in Texarkana
AUSTIN, TX – May 13, 2010 – (RealEstateRama) — The Texas Department of Housing and Community Affairs (TDHCA) and State Senator Kevin Eltife today announced two awards totaling $500,000 to the City of Texarkana to help promote and maintain homeownership while providing a shot in the arm to the local economy.
TDHCA awarded Texarkana $100,000 in homebuyer assistance funds which the city will use to provide down payment and closing cost assistance to help an estimated five eligible residents purchase their first home. In addition, Texarkana received second $400,000 award to fund the repair or replacement of five substandard homes owned and lived in by low income households.
“This is exciting news for low income residents of Texarkana who have long dreamed of owning a home or whose home is now in need of major repairs,” said Senator Eltife in making the announcement. “I am extremely grateful to know that some of my constituents may soon enjoy the advantages of a new or substantially improved home. This certainly is a great occasion for the entire community, and I encourage TDHCA to continue its commitment to homeownership.”
“Repairing substandard housing is a critical mission of the Department, as it helps preserve homeownership and brings stability to entire neighborhoods,” said Michael Gerber, TDHCA Executive Director. “However, TDHCA is equally committed to enhancing homeownership opportunities for households ready to take that big step. An added bonus is that the entire community will also benefit from these awards through additional construction jobs and the payroll, taxes, and fees that help provide essential services at the local level.”
The Department’s home repair assistance may include roof repair or replacement, as well as repairs to the electrical and plumbing systems. If a home has deteriorated to the point it no longer is cost effective to repair, it may be demolished and replaced either by a traditional “site built” home or a manufactured home. The home must be the primary residence of the homeowner; rental housing units do not qualify for assistance.
Homebuyer assistance comes in the form of down payment and closing cost assistance for first time homebuyers purchasing a single-family home. Eligible participants may receive loans up to $20,000 for down payment and closing costs. Assistance will be in the form of a 2nd or 3rd lien, 0 percent interest, 10-year deferred forgivable loan.
Qualifying applicants include eligible cities and counties, public housing authorities, Community Housing Development Organizations and other nonprofit housing groups, and certain for-profit organizations which then work with qualifying households at the local level.
The U.S. Department of Housing and Urban Development is the funding source for the HOME Program. The program serves households earning no more than 80 percent of the area median family income, which for Texarkana equals an annual income of $41,350 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 services, energy assistance, colonia housing programs, and disaster recovery housing programs. It currently administers $2 billion through for-profit, nonprofit, and local government partnerships to deliver local housing and community-based opportunities and assistance to Texans in need.
