TRUMBULL COUNTY Goal is for people to own homes

A councilman agrees that homeownership should be a priority.
By DENISE DICK
VINDICATOR TRUMBULL STAFF
WARREN -- Changes in the city's housing programs aim to encourage homeownership.
Owner-occupied housing rehabilitation, a homeownership loan program and emergency home repair are federally funded programs administered by the city's Community Development Department.
This year, the department changed the housing rehabilitation from a grant to a deferred-loan program -- trying to cut down on the number of people on a waiting list.
It originally had been a loan program but changed to a grant a few years ago. As a grant program, the waiting list to participate swelled to more than 160 people.
"With our funding and a cost of about $25,000 per home, the most we could do in a year was five or six," said Michael D. Keys, community development director.
Before the change, homes of qualified applicants were addressed on a first-come, first-served basis.
Now, priority is given to people age 62 or older, the physically disabled, households with children who have elevated levels of lead in their blood and households with incomes considered at poverty level.
Eligibility
The program is open to low- to moderate-income residents living in the city. Applicants must be the owner of the single-family home and live in the house for at least a year before applying for assistance.
The deferred loan becomes due when the property is sold or upon the homeowner's death. The interest rate is 0 percent to 4 percent based on household income.
The city instituted a moratorium earlier this year on the rental rehab program.
"There's no problem with having rental properties in the city, but we need to push homeownership," Keys said.
Councilman Gary Fonce, D-at large, who chairs council's community development committee, agreed.
"Without a doubt, that should be our No. 1 priority," Fonce said. "For too long, it seems [the city] made it too easy and almost pushed people to have rental property. As many programs as we can have that encourage homeownership, the better."
The homeownership loan program applies to houses throughout Trumbull County except in Niles and Girard, which operate their own housing programs. The city administers the program for the remainder of Trumbull County, working with Trumbull County Home Consortium.
Applicants who meet low-to-moderate-income eligibility can get a 0 percent interest deferred loan of up to $5,000 toward downpayment and closing costs.
If the home is in a target area, which is identified by census income data, the amount available increases to $7,500.
What's required
Local lenders will finance the balance for up to 30 years, but Keys said that because banks abide by different income criteria than the federal program does, those interested should check with the department first before securing another lender to ensure they're eligible.
Participants must agree to live in the home for at least five years.
A program started last year by President Bush, American Dream Downpayment Initiative, is expected to bring in about $84,000 for the city to assist people in buying homes.
"The idea of the president's new program is to increase minority homeownership," Keys said.
Emergency home repair is a loan program for low-to-moderate income homeowners in the city. It's designed to fix immediate threats to the residents' health and safety, such as lack of hot water, inoperable heating, severe roof damage or electrical wiring.
The maximum loan amount is $3,000, and people 62 or older and households with children who have elevated lead levels in their blood get priority.
A problem that constitutes a safety or health issue merits emergency rehabilitation, officials said.
More information is available by contacting the community development department at (330) 841-2595.
denise_dick@vindy.com