Truckee adopts $1.56 million home buyer assistance program
TRUCKEE, Calif. and#8212; Truckee Town Council has approved a program to help first-time home buyers have a better opportunity to own a home.
The low interest loans will come out of a town funding pool of about $1.56 million, targeting 20 low-, moderate- and above moderate-income households looking to buy a first home in the area.
and#8220;We are so pleased to see such a program being rolled out,and#8221; said John Falk of the Tahoe Sierra Board of Realtors. and#8220;This will allow the productive utilization of existing housing stock and#8212; itand#8217;s a hand up, not a hand out.and#8221;
The assistance will be in the form of 2 percent interest, 30-year deferred loans for low- and moderate-income applicants, and a 3 percent, 30-year deferred loan for above-moderate applicants, according to staff reports.
The three income levels eligible are low, moderate, and above-moderate income, which are below 80 percent of Nevada County median income, between 80 and 120 percent, and 120 to 160 percent, respectively.
As an example, a family of four making $55,300 a year meets the 80 percent mark, a family of four making $82,900 meets the 80 to 120 percent bracket and a family of four at $110,560 hits the 121 to 160 percent level, according to staff reports.
Truckee resident John Eaton said he thinks the program has potential because it deals in market-rate homes, not deed-restricted affordable housing.
and#8220;This is really a creative program and I hope you give it a chance,and#8221; Eaton said.
Town Manager Tony Lashbrook said the homes bought with the town loan will be deed-restricted only to ensure applicants are primary residents, not rented out after purchase or used as second homes.
Redevelopment and Housing Coordinator David Griffith said there will also be upper-limits of home prices for the program, to ensure people arenand#8217;t using the program just to upgrade what they could already afford.
Other measures will be taken to ensure that potential home buyers have their own money invested in the down payment beyond the loan, and that the loans are paid back as quickly as possible, he said, addressing issues raised by the town council on Oct. 15.
and#8220;You took care of all my concerns,and#8221; said Council member Carolyn Wallace Dee.
With the plan approved, applications will be available Dec. 18, workshops will be held in January and applications will be due Feb. 5.
If more applications are submitted than loans are available, a random selection process will take place Feb. 18, Griffith said.