Irvine Holds Door Open to Homeowners : * Using Federal Funds to Help Buy Affordable Condos Is a Program Worth Repeating

When it comes to having a stake in the neighborhood, few things are better motivators than home ownership, a fact that the federal government wisely recognizes.

Several communities in Orange County have taken advantage of a federal program to make it easy for people with below-average incomes to buy their first homes. Irvine is the latest.

The private, nonprofit Jamboree Housing Corp., based in Irvine, received $1 million in federal funds, administered by the state Department of Housing, that will help 20 people buy condominiums in Irvine ranging in price from $105,000 to $175,000. The buyer makes a minimum 5% down payment, and Jamboree lends $50,000 more to add to the down payment. That lowers the monthly payment enough to be affordable to residents with lower incomes.

There were more than 125 applicants for the lottery that determined which 20 households would be fortunate enough to get the loans. The program’s executive director, Lila Lieberthal, said dozens more potential homeowners have called to ask if there will be future loans. The problem there is money; the federal government is saying it is strapped for housing funds.

The Jamboree-assisted homeowners will have to repay the loans when they sell their houses or refinance them. If they sell to a family eligible for the program, the new buyers can assume the loans.

The company lined up three lenders to provide mortgages that Lieberthal said are “somewhat below market rates” and also persuaded escrow and title firms to lower their usual rates. Owners must live in the homes, have three or more in the family, and have a maximum income of under $40,000 for a family of four.

With housing prices still high in Orange County despite the recession, the program is needed. It will benefit Irvine and the county, and is worth repeating elsewhere.