THOUSAND OAKS : U. S. Offers Mortgage Insurance to Renters

The federal government will join efforts to improve a Thousand Oaks neighborhood by offering mortgage insurance for renters who seek to buy their condominiums.

City officials had long been frustrated by the Federal Housing Authority’s refusal to grant mortgage insurance for first-time home buyers in Las Casitas, a Newbury Park tract of 550 inexpensive condominiums.

The housing authority had insisted that Las Casitas did not qualify for mortgage insurance because fewer than half the units, which now sell for about $70,000, are owner-occupied. The government shies away from backing mortgages in neighborhoods with high rental rates on the theory that such areas are less stable.

But Terrence R. Duvernay, deputy secretary of the Department of Housing and Urban Development, has decided to waive that requirement. In a recent letter to Mayor Elois Zeanah, he cited Thousand Oaks’ longstanding commitment to bettering Las Casitas as the basis for granting mortgage insurance.

Since the city and homeowners began a drive to spruce up Las Casitas two years ago, the number of owner-occupied units has jumped from 30% to 40%, City Manager Grant Brimhall said.

“This is a real success story, about a neighborhood that has taken control of itself and is working to upgrade and improve,” Brimhall said. With the federal mortgage insurance, he added, “many people who are living there as renters can qualify for loans to purchase their homes” if landlords want to sell.