County of Santa Clara Approves $25 million in First-time Homebuyer Assistance
SANTA CLARA COUNTY, CALIF.— The County of Santa Clara Board of Supervisors unanimously approved $25 million of 2016 Measure A Affordable Housing Bond funds (Measure A) to finance a new, first-time homebuyer down payment loan program. Through a partnership between the County’s Office of Supportive Housing and Housing Trust Silicon Valley (that will administer the program) the funds will assist approximately 250 households over the first five years of the program by providing deferred loans for down payments of up to 17% of a home’s purchase price.
In November 2016, Santa Clara County voters approved Measure A, a $950 million affordable housing general obligation bond. A portion of those assets were earmarked to fund a loan program for first-time homebuyers with incomes not exceeding 120% of the Area Median Income (AMI).
“As part of our overall strategy to expand affordable housing options in the county, this loan program gives us the opportunity to offer many first-time home buyers a financially viable way to fulfill their dream of homeownership,” said County of Santa Clara Supervisor Mike Wasserman, Vice Chair of the Board’s Housing, Land Use, Environment and Transportation Committee.
As the number of loan assistance programs have declined over the past eight years, many potential first-time homebuyers have either postponed purchasing a home or chosen to relocate to find more affordable housing options.
“Affordable housing has been one of Santa Clara County’s biggest challenges for several years now, and it seems to get worse every month. The first-time homebuyer assistance program will give many residents an opportunity that would otherwise be out of reach. Our people are Santa Clara County’s most valuable asset, and this program will help ensure that the County remains the vibrant, welcoming place to live that we all love,” said County of Santa Clara Supervisor Ken Yeager.
The County’s down payment loan program does not require monthly principal or interest payments. Borrowers will repay the principal loan amount plus a share of the appreciation based on the percentage of the loan borrowed. Payment is deferred until the Maturity Date is reached, sale of the home, or refinance of the first mortgage.
“Housing Trust is a natural fit to administer the County’s program,” said Kevin Zwick, CEO of Housing Trust Silicon Valley. “We have over 18 years of lending experience to over 2,500 homebuyers. We’re glad to be in a position to assist the County of Santa Clara with this Measure A initiative.”
For information regarding the county-wide first-time homebuyer program, call Housing Trust Silicon Valley at (408) 436-3450, ext. 234.
ABOUT THE COUNTY OF SANTA CLARA OFFICE OF SUPPORTIVE HOUSING
The Office of Supportive Housing's (OSH) mission is to increase the supply of housing and supportive housing that is affordable and available to extremely low income and/or special needs households served by the County. One of its primary aims is to support the County of Santa Clara’s mission of promoting a healthy, safe, and prosperous community by ending and preventing homelessness. OSH’s major activities include efforts to organize and operate homeless services countywide, including homelessness prevention, crisis response, and Permanent Supportive Housing and Rapid Re-Housing programs. In addition, OSH strives to increase the supply of housing by funding and spurring the development of housing for low income households, with a particular focus on extremely low incomes. OSH is the lead department within the County implementing the 2016 Measure A Affordable Housing Bond program.
ABOUT HOUSING TRUST SILICON VALLEY
Housing Trust Silicon Valley (Housing Trust) is a nonprofit community loan fund that works to improve quality of life for low-income people in the Greater Bay Area by increasing affordable housing opportunities. Since 2000, Housing Trust has invested $171 million in programs that help everyone from those experiencing homelessness to renters to first-time homebuyers - creating more than 16,000 affordable housing opportunities serving over 29,000 of our neighbors. It is the first nonprofit Community Development Financial Institution (CDFI) to receive a Standard & Poor’s rating, AA- because of its strong capacity to meet financial commitments. For more information visit www.housingtrustsv.org
ABOUT THE COUNTY OF SANTA CLARA, CALIFORNIA
The County of Santa Clara government serves a diverse, multi-cultural population of 1.9 million residents in Santa Clara County, the fifth largest county in California. With a $6.5 billion budget, more than 70 agencies/departments and 20,000 employees, the County of Santa Clara plans for the needs of a dynamic community, offers quality services, and promotes a healthy, safe and prosperous community for all. The County provides essential services including public health and environmental protection, medical services through Santa Clara Valley Medical Center (SCVMC), child and adult protection services, homelessness prevention and solutions, roads, parks, libraries, emergency response to disasters, protection of minority communities and those under threat, access to a fair criminal justice system, and scores of other services, particularly for those members of our community in the greatest need.
Visit us at: http://www.sccgov.org
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Media Contact: Bruce Herman, Office of Supportive Housing, (408) 793-1800.