Aid for First-Time Home Buyers Planned : Housing: Under a new plan, the city would loan as much as $50,000 toward a home purchase to qualified applicants.

Hours before President Bush proposed tax benefits for first-time home buyers in his State of the Union address, Glendale city officials on Tuesday adopted a dramatic housing plan of their own.

As expected, Bush proposed tax credits and penalty-free retirement account withdrawals for first-time home buyers.

But the Glendale plan veers away from earlier housing practices, which gave the largest share of federal, state and city subsidies to low-income renters. Instead, it shifts the emphasis to home ownership. In addition, it benefits families with annual incomes as high as $52,200, or more for families with more than four members.

The plan would work like this: Families that qualify as having very low, low or moderate incomes could get home loans of up to $50,000 from the city. In some cases, the loans would be interest-free, to be repaid from the increased equity when the property is sold. In other cases, depending on income and family size, the city would get monthly payments at 3% to 6% interest.

In all cases, the city would retain an interest in the property and profit from the increased equity when the property eventually is sold, according to a report presented Tuesday at a joint meeting of the City Council, the Redevelopment Agency and the Housing Authority.

The city’s return on investments could then be used to sponsor more home loans and improvements, said Madalyn Blake, director of community development and housing.

“We’re moving people to homeownership rather than just passing them through as renters,” said Councilwoman Eileen Givens.

City officials said their plan still meets federal and state guidelines because an eight-month city study revealed that Glendale residents in need of housing assistance are about equally divided among very low-income, low-income and moderate-income people.

The plan “is a proactive approach to meeting state requirements,” Blake said.

City Council members have urged for several years that a strategy be developed to promote homeownership, particularly among city employees and others who cannot now afford to buy in Glendale.

Federal income guidelines for Los Angeles County define very low-income as an individual earning up to $15,250 or a family of four with no more than $21,750 in annual income. A low-income individual earns less than $24,350, while a family of four qualifies with an income of no more than $34,800. Moderate-income individuals earn up to $36,550 or as much as $52,200 for a family of four.

The plan sets guidelines for the distribution of an estimated $13.25 million in housing funds that will be earned from property tax revenues in the downtown redevelopment zone through 1996. State law requires that 20% of tax revenues from a redevelopment zone be used for affordable housing.

Glendale so far has spent $3.35 million in redevelopment revenues, mostly on apartments for low- and moderate-income senior citizens, according to the report.

The city’s demographic study, based on federal, state and local surveys, concluded that two-thirds of Glendale’s housing money should be spent on families and one-third for senior citizens.

Several council members said they endorse the plan to encourage more people to own their own homes, rather than rent housing. According to the 1990 census, less than half of those who live in Glendale own their homes.

Councilman Larry Zarian said he “would rather give a subsidy to somebody who buys rather than rents.” Mayor Ginger Bremberg was the only dissenter in the 4-1 vote on the five-year housing subsidy plan, saying she objected to sponsoring buyers at the higher income levels.