GLENDALE : Partnership Will Aid First-Home Buyers

The city of Glendale has announced a partnership with private developers to help low- and middle-income families buy their first home.

The Glendale Housing Authority approved an agreement last week with local developers Ralph and Larry Cimmarusti to build 11 townhomes at 2755 Piedmont Ave. in La Crescenta. The developers expect the market price of the three-bedroom, two-bath homes to be about $190,000 each. But the housing authority will assist qualifying buyers with a guaranteed second trust deed for up to $41,000, bringing the price down to $149,000.

“That’s the maximum amount of the city subsidy, but it could be reduced if the market price of the units is less than expected, or if the buyer has a larger down payment or is able to qualify for a larger loan,” said Beth Stochl, the city’s housing development administrator.

The project is part of a five-year plan adopted in 1992 to allocate about $16 million for affordable housing for the city’s very low- to moderate-income residents. Most of the funds have been spent on senior housing projects, but the Piedmont project is the city’s second home-ownership program. The first such project, a townhouse complex on Doran Street built by another developer, was completed last year.

Under the first-time buyer programs, the city guarantees a 30-year second trust deed at low interest. The home buyer pays no interest during the first five years of the loan, and only repays the interest during the remaining 25 years. Repayment of the principal is required only if the owner sells the home within the 30-year period. Also, Owners are barred from renting out the property.

To qualify, families of three must have an annual income of about $54,000 or less and families of five must earn no more than about $63,000, officials said.