BREA : Program for Home Buyers to Be Created

The City Council has hired a consultant to assist in devising a program for low-income home buyers and enable the city to meet its affordable housing goals.

Development Fund, a nonprofit organization, will create the program, within six to nine months, at a cost of $37,000, officials said this week.

The program will focus on how to help low- to moderate-income home buyers secure down payments and mortgage gap assistance and how city funds can be used to obtain loans from local lenders.

Redevelopment Services Director Sue Georgino said the program will also be available citywide, instead of the current practice of concentrating on just a few areas of the city. In addition, new homes as well as those on the resale market will be included in the program.

Under state law, the Redevelopment Agency must set aside 20% of its funds for affordable housing. Georgino said the city has set aside $2.6 million this year.

Part of the job of the consultant will be to pre-screen banks participating in the home buyers’ program, Georgino said. She said the consultant would also work for the approval of the program by the Federal National Mortgage Assistance, create and execute operating agreements with lending banks and assist staff in promoting the program in the community.