THOUSAND OAKS : Council OKs Help for Home Buyers

Thousand Oaks has approved a program to help prospective buyers purchase their first home by providing help with a down payment.

The program, approved 4 to 0 Tuesday night by the City Council, could start as early as September, Housing Services Manager Olav Hassel said. Councilwoman Elois Zeanah was absent.

The council set aside $800,000 from the city’s redevelopment funds to help home buyers make their down payments.

The program works by providing loans to help buyers make down payments of up to 20% of the price of a home. For example, that amount could be as high as $35,000 for a $175,000 house, Hassel said.

Officials said they would consider only people who live and work in Thousand Oaks or who have immediate family members living in the city.

To qualify, buyers must meet requirements for low to moderate incomes under federal guidelines. For a family of four, the maximum income would be $57,800 a year. The maximum income for two working adults would be $47,000.

In return, buyers must contribute an additional 5% of the housing costs for the down payment and a 2% fee to cover the city’s cost. No payments are due on the city’s loan until the sixth year. The program doesn’t specify what the interest will be, but it will not be higher than that of the primary mortgage loan.

The council also agreed to spend $20,000 to promote and market the program.