City to administer home loan program (Columbia Daily Tribune)
By MATTHEW LeBLANC of the Tribune’s staff
Published Sunday, March 4, 2007
The Enterprise Development Corp. will no longer administer a federally funded home loan program beginning next month, ending a long-running partnership between the city and the local not-for-profit.
As of April 1, the city will take over the Homeownership Assistance Program, a loan program aimed at helping low-income, potential first-time home buyers in certain areas in Columbia. The city has worked since 1995 with Enterprise to administer the program.
Tom Lata, community development director with the city’s Planning and Development Department, said the city will begin processing loan applications and verify applicants’ income levels - duties that normally would fall to EDC.
City staff members already were doing much of the work involved with the program, he said, including inspecting homes and doling out loan payments.
"The advantage to having them do it … was they also do small-business loans, and they had a natural relationship with the lenders," Lata said.
Formed in 1983, EDC handles small-business loans and some other low-income housing programs. Since it began administering the home loan program with the city, the agency has approved more than 400 loans totaling about $811,000.
City figures indicate about $85,000 in loan funding was distributed to 24 home buyers last year.
A planning department newsletter sent out in February said EDC decided to turn program administration over to city staff because the agency wants to "focus more on its business development activities."
Donna Hamilton, EDC’s associate director, said new federal rules regarding the program and staff cutbacks at the agency prompted that decision.
"We’re a two-person office, and we’re a little stretched for time," she said.
Under the loan program, participants can receive as much as $3,500 from the federal Department of Housing and Urban Development if they meet income guidelines and other requirements. The loan is forgiven if the homebuyer lives in the home for five years.
The program was created after a city advisory commission found a need to increase homeownership among low- to moderate-income residents.
The administrative change is not expected to affect program applicants.
Housing Programs Coordinator Vicki Turner said the city will have to work with local banks to redevelop the relationship they once had with EDC but it’s not likely the change will overwhelm planning department staff.
About $85,000 is budgeted for the loan program this year.
Eligibility requirements and information about applying for a homeownership assistance loan can be viewed at www.GoColumbia Mo.com/Planning.
By MATTHEW LeBLANC of the Tribune’s staff
Published Sunday, March 4, 2007
The Enterprise Development Corp. will no longer administer a federally funded home loan program beginning next month, ending a long-running partnership between the city and the local not-for-profit.
As of April 1, the city will take over the Homeownership Assistance Program, a loan program aimed at helping low-income, potential first-time home buyers in certain areas in Columbia. The city has worked since 1995 with Enterprise to administer the program.
Tom Lata, community development director with the city’s Planning and Development Department, said the city will begin processing loan applications and verify applicants’ income levels - duties that normally would fall to EDC.
City staff members already were doing much of the work involved with the program, he said, including inspecting homes and doling out loan payments.
"The advantage to having them do it … was they also do small-business loans, and they had a natural relationship with the lenders," Lata said.
Formed in 1983, EDC handles small-business loans and some other low-income housing programs. Since it began administering the home loan program with the city, the agency has approved more than 400 loans totaling about $811,000.
City figures indicate about $85,000 in loan funding was distributed to 24 home buyers last year.
A planning department newsletter sent out in February said EDC decided to turn program administration over to city staff because the agency wants to "focus more on its business development activities."
Donna Hamilton, EDC’s associate director, said new federal rules regarding the program and staff cutbacks at the agency prompted that decision.
"We’re a two-person office, and we’re a little stretched for time," she said.
Under the loan program, participants can receive as much as $3,500 from the federal Department of Housing and Urban Development if they meet income guidelines and other requirements. The loan is forgiven if the homebuyer lives in the home for five years.
The program was created after a city advisory commission found a need to increase homeownership among low- to moderate-income residents.
The administrative change is not expected to affect program applicants.
Housing Programs Coordinator Vicki Turner said the city will have to work with local banks to redevelop the relationship they once had with EDC but it’s not likely the change will overwhelm planning department staff.
About $85,000 is budgeted for the loan program this year.
Eligibility requirements and information about applying for a homeownership assistance loan can be viewed at www.GoColumbia Mo.com/Planning.
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