OHIO Program offers funds to home buyers

The funds will be used for grants or loans depending on applicants' incomes.
By MICHELE C. HLADIK
VINDICATOR CORRESPONDENT
COLUMBUS -- Tax dollars will help build 12 homes here for low-and middle-income people.
The State Controlling Board recently approved the release of $400,000 toward building the homes as part of the Low and Moderate Housing Trust Fund.
"The objective is to serve the lowest area incomes," said Rita Parise, director of planning, preservation and development for the Ohio Department of Development. "The goal is to provide housing or better housing for those who can't afford it."
The homes will be located near Sandy Drive and developed by National Housing Associates Inc., a nonprofit organization based in Westerville.
Eld-Terra Builders of Medina is expected to build the homes.
The homes are expected to be valued at $120,000, but the funds provided through the state's trust fund will lower the cost for each home buyer, depending on income.
How it works
According to Carol Forsythe, executive director of National Housing Associates, home buyers will go through the same loan process they normally would, but if they qualify, they may also apply for the funds, which reduce the amount of the mortgage.
A family of four, for example, must have an income between $21,900 and $35,050 to qualify, she said.
The amount each family receives depends on income.
The funds serve as a grant or loan that in some cases may be forgiven, but in other cases, portions must be repaid.
According to Parise, those living at 65 percent or less of the area gross median income will not be required to repay the funds if they live in the home for 15 years or longer.
Those with greater than 65 percent of the area gross median income must repay 50 percent of the funds if the house is sold and there is a profit after the home loan is paid off.
Educational program
Recipients are required to attend training that teaches what it's like to own a home, how to do various home repairs, how to manage finances and other skills, Forsythe said.
"Many people who will buy these homes will have lived in an apartment or town home," Forsythe said.
Home buyers will be able to select the style they want before the homes are built. Most of the designs are for two-story homes, but there will be a few single-story selections available as well. The single-story homes are primarily for buyers with a physical disability, she said.
Each home is expected to be 1,345 square feet and include a full basement, attached garage, stove, refrigerator, dishwasher and central air conditioning.
"They are going to be nice-quality homes," Forsythe said.
Time frame
She said the building could begin at any time. Four homes will be built to start, and additional homes will be built as the buyers come forward until all 12 are built.
Overall, Parise said, the program has been very successful since it began in 1991.
"I'd say we are doing a very effective job," she said. "We are not beating the bushes to hand money out. People are standing in line for this. There is a tremendous need for funding housing."