The Los Angeles Community Redevelopment Agency is making interest-free down payment loans available to prospective home buyers in the eastern San Fernando Valley who qualify for a mortgage loan but need help with up-front money, city leaders announced today.
The $2 million East Valley Region Homeownership Opportunity Program is intended to help first-time home buyers purchase property and revitalize neighborhoods that have fallen into disrepair.
"The intention is first-time home buyers, but remember the primary purpose of the Community Redevelopment Agency is to reduce and eliminate blight. So the primary purpose of this program is to eliminate the possibility that neighborhoods that have one, two and sometimes in one block you will see three vacant houses with foreclosure notices on them, that we can actually impact the blight that has been impacted on those who are remaining," said Councilman Richard Alarcon.
Qualifying families who purchase homes in the 6th and 7th council districts, which include Pacoima, Sylmar, Van Nuys and Panorama City, can receive up to $75,000 for a down payment.
City officials expect 50 to 100 families to benefit from the program.
"The biggest investment that most Americans will make in their lives will be to buy a home and, with this, the city of Los Angeles, Councilman Alarcon and myself are stepping up to make sure government participates in solutions to this current economic crisis," City Councilman Tony Cardenas said.
A family of four with an annual income between $50,000 and $71,800 would be eligible for the city loan. Those families must live in the purchased house as their primary residence and cannot use the property for investment purposes.
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The loans will be interest free. The full amount of the loan must be repaid if the house is sold within five years. Buyers that stay in the house for six to 10 years would have the loan reduced by 10 percent per year, and if they remain in the home for 11-45 years, they would be responsible for repaying half of the principle.
Over the past few years, 500 families have received financial assistance from the Community Redevelopment Agency to buy a home, said Cecilia Estolano, CEO of the CRA/LA.
For more information, log onto www.EastValleyHOP.org. Informational sessions on the loans will be held:
-- June 6, from 9 a.m. to noon in English and 1 p.m. to 4 p.m. in Spanish at the Marvin Braude Center, 6262 Van Nuys Blvd.;
-- June 13, from 9 a.m. to noon in Spanish and 1 p.m. to 4 p.m., in English at the Pacoima Community Center, 11243 Glenoaks Blvd.;
-- June 20, from 9 a.m. to noon in Spanish and at the Marvin Braude Center, 6262 Van Nuys Blvd;
-- June 27, from 9 a.m. to noon in English at the Mission Community Police Station, 11121 N. Sepulveda Blvd.