County gets $140,000 for down payment program
Low- and moderate-income home buyers in Eagle County may benefit from $140,000 in state funds aimed at helping out with low-interest, long-term down payment loans, Gov. Bill Owens said.
The grant will match funds provided by Eagle County and local businesses. The state funds will be used to build a revolving loan fund administered by Eagle County. Low- and moderate-income buyers, who may be paying rents similar to the monthly cost of home ownership, will be able to borrow the amount of a down payment in a low-interest, low-payment “soft” second mortgage.
Upon repayment of the loan, Eagle County will revolve the funds, making another loan to a qualified borrower.
“Providing funding for these local housing efforts is essential,” Owens said. “I am pleased the state is able to assist these Colorado communities in providing needed services to their residents.”
Funding from the Colorado Division of Housing assists communities in meeting the affordable housing needs throughout the state. The Division of Housing, located in the Department of Local Affairs, targets its resources to address the growing housing need of households with lower incomes. The Division of Housing estimates that 66,479 lower income households in Colorado are in need of affordable housing.
Affordable housing programs in mountain communities have been in short supply. The implementation of this program increases the opportunity for home ownership in an area where wage rates have not kept pace with increasing home prices.
“This partnership between the state, local governments, nonprofits and local businesses enables valuable members of the community to become home owners in a housing market affected by the pressure of vacation-home purchasers,” said Kath Williams, director of the Colorado Division of Housing.
Mike Beasley, executive director of the Department of Local Affairs added, “Investment in affordable housing is vital to Colorado communities.”
“It not only provides an essential service to each household, it benefits the entire community by stabilizing the local economy and, expanding the tax base,” Beasley said. “We appreciate all the organizations involved in this effort.”
The Division of Housing funds new construction of rental and home-ownership development, single-family and multi-family rehabilitation, down payment assistance and the development of housing for persons with disabilities as well as for victims of domestic violence and homelessness.
Each month the seven-member State Housing Board provides funding recommendations on affordable housing requests being considered.