Quake Program Helps 1st-Time Home Buyers

As part of the city’s earthquake recovery effort, the Los Angeles City Council approved a loan program Wednesday for first-time home buyers in the northeast San Fernando Valley.

The program, which is limited to Councilman Richard Alarcon’s district, also provides loans to help residents pay for valves that shut off the gas flow during an earthquake.

Operated by the city’s Community Redevelopment Agency, the program was designed to encourage residents to invest in the community, which suffered severe damage in the Northridge quake.

The program sets aside $250,000 in loans that will allow low-income residents to purchase homes that have been repossessed by the federal department of Housing and Urban Development.

The money will primarily be used to help first-time buyers make down payments or pay closing costs. The program will also provide grants of up to $7,500 to improve the exterior of the homes and grants of up to $350 for the gas shut-off valves.

Alarcon said he supports the program because it provides loans to “fill the gaps” and makes it easier for residents to buy and repair homes in the area.