Home Loans for Police, Firefighters Unveiled

Hoping to encourage police and firefighters to move into Los Angeles, city and federal officials on Monday unveiled a home loan program featuring rock-bottom down payments, public matching funds and a debt write-off.

Mayor Richard Riordan called the plan “a win-win program that will help the city’s police officers and firefighters realize the American dream--owning their own home in the neighborhoods they serve . . . and an even bigger win for Angelenos.”

Having police officers and firefighters living in city neighborhoods will enhance efforts to move toward prevention-oriented community policing and give residents the added security of having public safety employees as neighbors, Riordan said.

The vast majority of officers and firefighters live outside the city, lured away by lower housing prices, good schools and safe neighborhoods.

The plan, to be introduced in the City Council today by Councilmen Rudy Svorinich Jr. and Richard Alarcon, would help 100 officers or firefighters buy homes during a one-year trial program. It was developed by the city with help from the Federal National Mortgage Assn., an agency that packages federal home loans.

The plan would pool $1 million in city and federal Housing and Urban Development funds to operate the Homes for Peace Officers and Firefighters program. An employee would need to pay only $1,000 toward a down payment, and the program would provide loans up to $10,000 for the rest of the down payment and closing costs. That loan would be reduced by 20% each year the employee stayed in the home and forgiven altogether after five years.

Moderate-income buyers could get low-interest mortgages through the city revenue bond program and receive federal income tax credits based on part of the mortgage interest payment.

The program will include assistance in applying for the loan and an inventory of affordable homes.

Only first-time home buyers would be eligible during its first year, city housing officials said, but the program could be expanded later for those who already own a home in another city and want to sell it to buy in Los Angeles.

Fire and police union leaders enthusiastically embraced the program Monday.

Also, the American Civil Liberties Union, which three years ago issued a report urging just such an incentive program, released a statement applauding the city’s move.