The city’s affordable housing loan program has several projects underway
TALLAHASSEE, Fla. (WCTV) – From vacant lots to affordable housing: More lower-priced housing is coming to Tallahassee, thanks to a loan program adopted by the City Commission.
The Affordable Housing Loan Program was adopted last July with $ 1 million available. $ 750,000 comes from the Municipal Commission, and $ 250,000 from the CRA.
Five applications have been approved and awarded, using all available funds, but since these are loans, repayments will flow back into the program, allowing more developers to participate.
These low interest rate loans are only available to local private developers. The five ongoing projects are women or minority businesses.
Two of the projects are in the ARC districts.
The program is designed to help families achieve their dream of homeownership.
“We all know the housing market is hot right now. The average selling price of a unit in Tallahassee is around $ 256,000, and that might be a bit out of reach for those earning 80 or 100 percent of the area’s median income. 80% equals $ 61,000 for a family of four, 100% equates to approximately $ 76,000 for a family of four, ”said Jean Amsion, Director of the Housing Division.
Amison says the program has multiple benefits.
“These homes give these developers the option of not just going into the market, if that’s what they want to do, a low-interest loan so that there isn’t a lot of overhead. added at the end. It allows them to build this house for a very good price and then sell it, ”she said.
These houses are also built on infill lots. Some are vacant, others have a house to rehabilitate. Each loan is for a maximum of $ 175,000.
“If they are 80% or less of the MAI, there is a possibility of additional down payment help available to help this family and build generational wealth, to make this neighborhood more vibrant again, so that works at all levels, ”Amsion said. “The city is in desperate need of new housing, but we cannot do it alone. The county cannot do it alone. So we need our private community partners to help us. “
Full repayment is due within 18 months from the date of the loan agreement, or within six months after the certificate of occupancy.
You can find out more about the program on the City website.
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