One of my responsibilities is to serve as the Chair of the Citizens Advisory Committee that assists the Community Development Department of Ogden City in reviewing its plans for HUD block grants and other resources.
One of the programs that is overseen by this committee is the Own In Ogden Program. This is a very popular program for home buyers that provides up to $5,000 in grant funds to pay for closing costs or down payments for homes located in the historic neighborhoods just east of the Downtown commercial center of town (my neighborhood).
Today we voted to make a change to the program. The way things operate currently, the $5,000 grant is placed as a zero-payment lien on the buyers home and forgiven $500 at a year with the last $3,000 being waived in the last year of the five year period. Any balance remaining when the home is sold before that five year period ends is to be paid back to the city.
Today we made the change that the grant will not be forgiven over a five year period but that it should remain in place and payable back to the city upon resale of the property. The city is anticipating a reduction in federal grant money in the future this change will allow the city to recoup the funds to assist other homebuyers in the future. I agree with this change because it is no longer free money from the taxpayers to be given away but now becomes a loan that is repayable and perpetuates the program indefinitely for future buyers. An ecclesiastical organization I am familiar with sponsored a Perpetual Immigration Fund, a Perpetual Education Fund, and now we have a government sponsored "Perpetual Home Buyers Fund". I think it makes sense. Look for these new changes to take place July 1, 2011.
3 comments:
I disagree with the decision. I hope this is told to the homebuyers UPFRONT when they purchase the home.
Austin,
Do keep in mind that participation in the program is voluntary and not compulsory. Also, these changes are for new participants starting July 1st, not retroactive to those who have already participated. I hope this clarifies things a bit.
The new arrangement will treat the funds like a loan rather than a housing subsidy. I feel that this approach may be more equitable to the taxpayers and create less distortions in the housing market.
I want to sell our rental house in South Ogden to my son. Can he use the grant to buy it? He has been renting it for 4yrs.
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