Several hundred people contacted the city when the program was first offered. Eight eventually received loans.
By Scott Taylor
Staff Writer

AUBURN – A loan program designed to get low-income people into downtown Auburn homes is taking new applicants.

Since March, the program has helped four people buy homes in the downtown, according to Gail Phoenix, community development coordinator. The program uses federal Housing and Urban Development money earmarked for affordable housing to help low-income people and encourage downtown redevelopment.

“All of these buildings are downtown and all of them are getting ‘rehabed’ as part of this program,” Phoenix said. “These are downtown properties that are getting cleaned up and reused.”

The program is open to those who earn 80 percent of the median income or less. For example, a family of four that makes less than $37,350 per year would qualify, she said.

Buyers must also purchase a house in one of three Auburn neighborhoods – New Auburn, downtown or the residential area north of Union Street.

Each buyer can qualify for up to 10 different loan or grant programs. That includes a 7-percent standard mortgage through Coastal Enterprises Inc. and three HOME program loans. Buyers pay back the first interest-free, 20-year HOME loan and the other two are forgiven.

Buyers can qualify for several other mortgages, grants and loans.

“So there is a lot of paperwork,” Phoenix said. “There are many pieces to keep track of and many meetings with the buyers. It’s not a ‘You’re approved; go shop’ situation.”

Despite the paperwork, the program has been popular.

Several hundred people contacted the city when the program was first offered in February. From that group, 35 applied for aid and eight eventually received loans. Three are already in their new homes, Phoenix said. Another is scheduled to close on Wednesday. Three more are scheduled to close this month and one more is scheduled to close in October.

The program also requires buyers to clean up their credit. Would-be buyers are required to meet with credit counselors regularly and to have their debt under control within two years. The city buys the buildings and leases them to the buyers until they are ready to buy them.

Phoenix is taking applications for the second phase through the end of September. Officials are set to begin selecting the buyers for the next phase in November

People interested in the program should contact Phoenix at 786-2421, extension 232.

staylor@sunjournal.com

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