DHCR Celebrates National Homeownership Month

ALBANY, NY (06/18/2009)(readMedia)-- June is National Homeownership Month and the state Division of Housing and Community Renewal (DHCR) and their not-for-profit housing agency partners are offering down-payment assistance programs for first-time home buyers. These programs, together with the new $8,000 federal tax credit for first-time home buyers, can make homeownership possible for many more working families in New York.

DHCR recently expanded its highly successful "Assets for Independence" (AFI) program to include not only Section 8 Housing Choice Voucher clients but all income-eligible New Yorkers. DHCR Commisisoner Deborah VanAmerongen said "This increased accessibility will provide up to 400 low-income families with closing cost assistance and help them develop budgeting skills and regular savings habits."

Previously, the AFI program provided matched-savings for down-payment assistance grants for statewide Section 8 housing choice voucher holders. DHCR was a national leader in administering this program, helping more than 250 voucher holders in cities and counties across the state purchase their very own home.

To capitalize on this success, DHCR applied to the US Department of Health and Human Services (HHS) to expand the program. The request was quickly approved and DHCR began recruiting additional partner agencies to provide outreach and applications to consumers from all areas of the state.

The AFI clients must attend home buyer education classes and be mortgage-ready when they finish their savings goal. In order to receive the maximum grant, the individual or family must save $1,875 for a term of between 12 and 24 months, and sign a savings plan agreement with DHCR. The individuals and families are also required to save at a federally-insured bank, and DHCR has partnered with Chase Bank to provide this service.

AFI is available to families earning up to 60 percent of the Area Median Income (AMI) and offers a $4.00 match rate for every dollar saved, with a maximum grant value of $7,500 per household for a single-family home purchase. The match rate increases to $6.00 with a maximum grant value of $11,250 if the family chooses a multi-family (2-4 units/owner occupied) as their first home. The AFI program allows the individual or family to shop for an affordable mortgage and a home of their choice in any location which best suits their needs, and there is NO lien placed on the home.

DHCR also manages another federal program for HUD known as HOME or Housing Opportunities Made Easy, which provides down-payment assistance grants to income-eligible consumers. This program is available to families earning up to 80 percent of AMI and provides down-payment assistance in the form of a "soft second lien" placed on the home. The second lien is reduced on a pro-rated annual basis. As the family continues to occupy the home over time, the lien is ultimately forgiven.

The HOME program also funds Community Housing Development Organizations (CHDO) to buy, rehab and sell affordable housing. In these cases there may be no second lien, but a deed restriction assuring that the home remains affordable and can be re-sold only to another income qualified household. CHDOs may also use funds to both develop and provide down payment assistance, structuring the assistance for maximum affordability.

Additional information on these programs and how consumers may be able to take advantage of one or more of these programs is available on the DHCR website at:

http://www.dhcr.state.ny.us/Programs/AssetsForIndependence/

http://nysdhcr.gov/Apps/profiles/profile_HOME.asp

http://nysdhcr.gov/Programs/Section8HCV/hcvp00.htm

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