During Wednesday night’s city council meeting, elected officials were briefed on the affordable housing loan program. The program receives total funding of $ 1 million from the Affordable Housing Trust Fund (AHTF) and the Community Redevelopment Agency (ARC).
In July 2020, the City Commission approved the Affordable Housing Construction Loan Program to help finance small-scale private developments. The AHTF’s initial investment was $ 750,000 and the CRA subsequently approved $ 250,000 for projects within the boundaries of the Grand Frenchtown / Southside Redevelopment District (GFS).
The program was created in hopes of helping people with incomes below the Tallahassee metropolitan area’s median income of $ 76,400, according to statistics provided by the US Department of Housing and Urban Development (HUD) .
In 2020, the average selling price of a home in Leon County was $ 256,080, up $ 10,000 from the previous year. As it is, the average household with the current median income can get a mortgage loan at the market rate of around $ 200,000.
However, for those earning less than the median income, purchase options continue to decline due to “the very low inventory of affordable options, rising construction costs, and lack of financial resources for the industry.” deposit and closing costs ”.
With the approval of the AHCLP, applications are accepted on an ongoing basis for private and non-profit developers, up to one loan of $ 175,000 per project and up to two concurrent loans per applicant. Once built, full repayment of the loan is expected within 18 months from the date of the agreement.
Since the launch of the AHCLP, seven applications have been successfully submitted and five of them have obtained loans. Two of the loans are for projects located within the ARC GFS redevelopment district.