LOUISVILLE, Ky. (WDRB) – Louisville Metro is tripling funding for its long-standing program that helps low- and moderate-income residents put down a down payment on a home.
Mayor Greg Fischer said about 150 households could be served in the current budget year, which began July 1, with $ 3 million in funding for the program.
“There are a lot of people who have been paying their rent on time for decades, but for some reason they can’t make a down payment,” Fischer said at a press conference Monday.
Fischer added that the city has also committed $ 7.7 million for four programs that allow people to repair their homes – Regular Home Repairs, At-Risk, Russell Rental Rehab and Exterior Code Alleviation.
âThe need for housing has been overwhelming for some time and the extra money in the budget is greatly appreciated,â said Marilyn Harris, director of the Louisville Metro Office of Housing.
The program offers zero-rate second mortgages covering up to 20% of the purchase price of the home, which are repaid over five to 15 years, depending on the purchase. And half of the debt is forgiven if buyers use the home as their primary residence for the life of the loan.
âHomeownership is crucial for residents to create generational wealth,â said Fischer. And our home repair programs help existing homeowners who are struggling to pay for expensive repairs and are at risk of losing their home or to be forced to live in dangerous or unhealthy conditions.
The average amount of aid, which can also be applied to closing costs, is around $ 22,000, city officials said.
Buyers don’t need to be first-time buyers, but their gross annual income cannot exceed certain thresholds, depending on family size.
These limits are:
- Single person: $ 43,050
- Family of two: $ 49,200
- Family of three: $ 55,350
- Family of four: $ 61,500
- Family of five: $ 66,450
- Family of six: $ 71,350
Eligible applicants must:
- Be pre-approved for a mortgage from a local financial institution;
- Have no unpaid collections, overdue balances or unpaid bankruptcies, with the exception of medical recoveries up to $ 10,000;
- Have at least $ 1,500 in savings;
- And stick to the price limits set for houses.
Applications for the down payment and home repair programs can be submitted at https://portal.neygiÃ¨nelysoftware.com/louisvilleky/participant, and hard copies are available at the Metro Development Center, 444 S. Fifth St. Learn more more on the Down Payment Assistance Program at https://louisvilleky.gov/government/housing/down-payment-assistance-program.
The city hopes these programs will help people of all races. In Louisville, 37.2% of black residents own their homes, lower than the national average of 41.8%, Fischer said.
The Regular Home Repair, At-Risk and Russell Rental Rehab programs focus on maintaining and increasing the supply of affordable, decent, safe and hygienic housing by making investments that have a positive impact on health and safety occupants, including repair or replacement of HVAC, furnace, electrical, plumbing, roofing and gutters.
The Exterior Code Relief Program eliminates exterior code violations and performs minor essential exterior repairs to ensure homes are warm, safe and dry. Money from this program can pay for the repair or replacement of exterior paint, siding, foundations, windows and roofs. The average amount of home repair assistance is $ 24,000 per claimant.
The Exterior Code Relief Program and Regular Home Repair Program are available to qualified residents of Louisville. The Russell Rental Rehab program is only available to property owners in the Russell neighborhood, and the At-Risk program is for residents of West Louisville, Shelby Park and Smoketown.
Learn more about home repair programs at https://louisvilleky.gov/government/housing/home-repair-programs.
But if you want to get help with this program, you will have to wait. Applications opened on July 1 and closed quickly.
âOur team has now received over 800 requests and calls from people looking for this help,â said Fischer. “Due to this overwhelming demand, our housing office has just closed applications for the home repair program.”
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