CITY COUNCIL House buyer aid plan will widen its scope

It would be especially beneficial at a time when many houses are for sale, an official said.
By DENISE DICK
VINDICATOR TRUMBULL STAFF
WARREN -- A program being pitched to city council would provide help to first-time home buyers who don't meet low-to-moderate income requirements.
At a meeting of council's community development committee set for 3 p.m. Tuesday, Councilman Gary Fonce, D-at large, who chairs the committee, and Michael Keys, community development director, will run the idea past committee members.
The first-time home buyers program provides assistance with the down payment and closing costs for first-time home buyers. But because it's funded by the U.S. Department of Housing and Urban Development, recipients must meet low-to-moderate income requirements.
Keys and Fonce propose setting aside general fund money in the 2005 budget to provide that assistance for people who don't fall within those income guidelines.
Turned away
"I had a couple come in who had five kids and wanted to buy a house in the city," Keys said. "They were $1,000 or $2,000 above the limit because he had worked overtime, and under HUD guidelines, I have to count overtime."
He had to turn them away.
"People who work hard and have families are the kind of people we want in the city," Keys said, adding that the city is losing population.
It would be up to council members to determine where to set the income limit, how much to set aside for the program its first year and whether it would be a grant or loan.
The other guidelines, such as requiring participants to remain in the home for five years, could remain.
"If it doesn't work, it doesn't work, but if it does, we could have more families living in the city," Keys said.
Also supportive
Mayor Michael J. O'Brien and William "Doug" Franklin, safety-service director, also support the idea.
"It frees up some of the restrictions that HUD has because there are some families out there that fall between the cracks," O'Brien said.
Franklin said it would be particularly useful now when the city has an abundance of houses for sale.
"I think it's a good idea if we can help people who are just beyond the guidelines for income level," Franklin said.
Bringing people into the city means more income tax and additional children in the school system, Fonce said.
"It's a win-win," he said.
O'Brien said it would help people to buy homes rather than move into rental properties.
"They can spend on housing in a number of ways," the mayor said. "I'm in favor of spending that money to help people to buy houses and have people living in them rather than spending money demolishing houses."
denise_dick@vindy.com