Group looks to increase homeownership

The program will operate on a first-come, first-served basis.

By DAVID SKOLNICK

CITY HALL REPORTER

YOUNGSTOWN — Youngstown and Warren have offered incentives to entice people to move to their cities, but nothing that reaches the $575,000 the Raymond John Wean Foundation is offering to eligible participants to buy houses in the Mahoning Valley’s most populated cities.

“A strong urban core is essential to the region,” said Joel Ratner, the foundation’s president.

The foundation is providing $500,000 to those who want to buy houses in Youngstown compared to $75,000 for Warren. More money is going to Youngstown because that city has a greater problem with homeownership, Ratner said.

The foundation won’t provide the funding until early next year, Ratner said, but those interested in applying for the money are encouraged to get in touch with the appropriate entities overseeing the program for Wean as soon as possible.

In Youngstown, contact Buy Into Youngstown at (330) 941-1383. In Warren, contact the city’s community development program at (330) 841-2595.

The program will operate on a first-come, first-served basis.

Prospective homeowners are eligible to receive $5,000 each, regardless of annual income. Those in Youngstown are eligible for another $5,000 if they buy a house with code violations with the money used to bring the property into compliance with the code. But only those who are at or below 80 percent of the area’s median income are eligible for that additional $5,000.

Those who already own homes in Youngstown and Warren aren’t eligible for grants, and those who obtain money through the program are required to live in the house for at least five years as their primary residence.

There are no other restrictions in Warren. But only those who work full time for any nonprofit organization, Youngstown State University and its affiliates, or Youngstown are eligible for the funding for the Youngstown program.

The foundation wants to be able to gauge demand and not spend money on marketing the new program, Ratner said. By restricting who’s eligible, those entities can properly marketing the program, he said.

If the program continues after 2008, the foundation will consider offering the money to others, Ratner said.

Warren had a $35,000 pool of money last year available to people in $5,000 increments to buy houses in the city, said Mayor Michael O’Brien. The money was gone in two days.

Youngstown has a program that provides low-income people with up to $6,000 toward the purchase of a house through a U.S. Department of Housing and Urban Development grant. But it’s “mired in red tape because of federal requirements,” and only six grants, averaging $3,000 each, were given this year, said William D’Avignon, the city’s community development agency director.

skolnick@vindy.com