NORWICH –Chenango County lawmakers agreed to apply for federal grants designed to help financially struggling individuals purchase their first homes and upgrade their well and septic systems.
The programs are managed in partnership with Opportunities For Chenango, headquartered in Norwich, with funding made available through New York State’s community development block grant programs for small cities. The grant amounts for the two programs aren’t known yet.
The home ownership program is designed to assist low and moderate income households in becoming first time homebuyers. Chenango County has implemented the program almost annually since 1995, resulting in 151 new first time homebuyers since then.
The homes are evenly distributed throughout the county, but with higher concentrations in places with higher population centers. OFC Director Wayne Viera said he anticipates another 18 new home buyers with this newest cycle.
Local lenders and realtors play an integral part in promoting the program by providing affordable lending products and services, he said.
Participation is limited to households with incomes at or below 80 percent of the median income for their household size. Income is based on the current, combined gross income of all household members who will live in the house to be purchased. To be eligible, for example, a person living alone would need to earn a maximum of $31,000, a household of four; $44,240.
A true estimate of median income in Chenango County based on the 2010 census isn’t expected until June, but Viera estimates that the current median income of a family of four here is $38,000.
There are additional qualifiers as well. Each first time homebuyer must contribute a minimum of 10 percent of their total grant assistance subsidy at closing, they must have about $350 for one year’s paid homeowner’s insurance; a minimum of $55 of savings in a checking or savings account at the time of closing; and pay $150 to OFC for a post purchase counseling class that they are required to attend.
The total purchase price of he home and closing costs must not exceed $150,000.
In presenting the programs for board approval, the OFC director was questioned about borrowers’ delinquency rates. Supervisors from Preston and Norwich requested the detail.
Viera said there have been no delinquencies. “When we looked back, we found out that we’re doing extraordinarily well,” he said, crediting the required education, financial fitness and credit counseling sessions.
The well and septic program has also been underway for a number of years, resulting in about 38 households receiving new well and septic systems. OFC is currently advertising on the radio and in print for potential customers.
Current funding for the two community development block grants is not affected by President Obama’s proposed reductions in federal spending. Obama initially proposed a 50 percent cut across the board to programs, the likes of which have contributed more than $96.8 million in investments for the residents, homes and businesses of Chenango County over the past decade. But a ground swelling of support that came out primarily at the local level resulted in only 2.9 percent cuts, which will occur for future community development programs.
Viera said 72 percent of OFC’s customers have employment income in addition to receiving services. Twelve to 14 percent are on fixed income.
OFC is part of “a finely tuned and highly functioning network of service providers with commitment to helping people help themselves,” said Viera. “Collaborations between non-profits, government, education and employment entities make life changes possible.”