TALLAHASSIE, Florida (WCTV) – From vacant lots to affordable homes: More homes are arriving in Tallahassee at a lower cost thanks to the City Commission’s loan program.
The Affordable Housing Loan Program was took place last July with an available $ 1 million. $ 750,000 from the city commission, another $ 250,000 from the CRA.
Five applications have been approved and awarded using all available funding, but since these are loans, payments will return to the program, allowing more developers to participate.
These low interest loans are only available to local private developers. All five ongoing projects are owned by women or minorities.
Two projects are located in the districts of the CRA.
The program is designed to help families fulfill their dream of home ownership.
“We all know that the housing market is hot right now. The median sale price for an apartment in Tallahassee is around $ 256,000, which may be a little out of reach for those earning 80 or 100 percent of the region’s median income. 80% is $ 61,000 for a family of four, 100% is about $ 76,000 for a family of four, ”said Jean Amsion, Housing Manager.
Amison says the program has many benefits.
“These houses provide these developers with the opportunity to not only get a start in the market, if they want to, get a loan at low interest rates, so there will not be a lot of overhead costs until the end. This allows them to build a house for a really good price and then turn around and sell it, ”she said.
These houses are also built on backfill areas. Some are empty, others have a house that needs renovation. The maximum amount for each loan is US $ 175,000.
“If they have 80 percent or less of the AMI, there is an opportunity to receive additional assistance in the form of an upfront payment to help this family and create generational well-being to make this area more vibrant again so that it works fully,” said Amsion. “The city desperately needs new housing, but we cannot do it alone. The county cannot do this alone. Therefore, we need our partners in the private community to help with this. ”
Full payment must be made within 18 months from the date of conclusion of the loan agreement or within six months after receipt of the certificate of settlement.
You can find out more about the program at City site.
Copyright 2021 WCTV. All rights reserved.