As many as 16 lower-income Central Oregon families will have the opportunity to purchase homes made affordable through federal stimulus funds. Housing Works announced today it has been awarded $600,000 through the federal Neighborhood Stabilization Program (NSP) to purchased bank-owned, foreclosed homes throughout Central Oregon.
Housing Works, the regional housing authority, will use the NSP award to acquire approximately 16 homes. The homes will be placed in the organization’s HomeQuest Ground Lease program and will be made available for purchase to lower-income households participating in Housing Works’ HomeQuest Homeownership Program. The land will be retained by Housing Works and leased long-term to the homebuyer who will purchase the improvements. The Ground Lease program offers lower-income households the opportunity for homeownership which would otherwise be beyond their means.
Households participating in the HomeQuest Homeownership Program must income qualify and can earn up to 80% of Area Median Income (AMI). This varies by county and size of household. A family of four in Deschutes County earning up to $50,800 may be eligible. In Crook County, a family of 4 could earn up to $40,950 and $40,000 in Jefferson County.
The Housing Authority anticipates working with community service providers such as NeighborImpact through referrals of program participants to the regional Housing Center for homeownership and financial fitness education and access to various down payment assistance programs.
Even with the decline in housing prices region-wide, there continues to be a gap in what many working families can afford and the price of homes.
“The Ground Lease program separates the ownership of the home from the ownership of the land,” said Cyndy Cook, Executive Director of Housing Works. “Take the cost of the land out of the equation and the home becomes very affordable.”
The HomeQuest Ground Lease program was created in 2007 to respond to the homeownership needs of lower-income households during the housing boom. Modeled after the Portland Community Land Trust, the program was developed to offer homes affordable to households earning up to 80% AMI in the region and keep them affordble for many years to come. This innovative model has inspired leading community developers and builders to partner with Housing Works in providing homeownership opportunities attainable by local working families.
Once leading the state in growth, the Central Oregon area now leads the state in foreclosures. The program does not prevent foreclosures. Instead, the Neighborhood Stabilization Program’s objective is to return foreclosed properties to the market to stabilize neighborhoods and preserve the value of surrounding homes.
To discuss homeownership opportunities through the HomeQuest Ground Lease program and qualifications for participation, call Homeownership Manager Kelly Fisher at 323-7411.
Housing Works serves over 1,600 households throughout Deschutes, Jefferson and Crook counties. With a mission to ‘foster dignity through housing’, the organization addresses a continuum of housing needs of lower income households and vulnerable citizens, such as seniors and the disabled. Housing Works offers award-winning affordable rental communities, special needs/supportive housing, homeownership opportunities, a family self-sufficiency program, savings programs, and a rental assistance program which serves almost 1,100 households.
