The Texas Department of Housing and Community Affairs (TDHCA) has awarded a $525,000 Neighborhood Stabilization Program (NSP) grant to the City of San Marcos. The grant is to be used to help redevelop blighted properties.
The focus of NSP grants is to allow cities, counties and non-profit organizations to acquire foreclosed or abandoned properties and redevelop them into affordable housing. The program also aids in the prevention of blight and declining property values.
This grant will allow the city to demolish eight blighted structures ($50,000) and purchase, rehabilitate and resell three foreclosed homes ($450,000). Program administration will be reimbursed up to $25,000.
NSP grantees must use at least 25 percent of the funds appropriated for the purchase and redevelopment of abandoned or foreclosed homes or residential properties that will be used to house individuals or families whose incomes do not exceed 50 percent of the area median income. At this level, the income of a one-person household could not exceed $25,650 per year; for a four-member household, the total income could not exceed $36,650.
In addition, all activities funded by NSP must benefit low- and moderate-income persons whose income does not exceed 120 percent of area median income.
When the houses are complete, the loans will be financed by TDHCA as a 30-year, zero-interest mortgage and will require the purchaser to make a $500 down payment. Closing cost assistance and gap financing up to $30,000 will be available to help low-income families purchase these homes.
Funding for this grant is provided from the Housing and Economic Recovery Act of 2008 (HERA) through the U.S. Department of Housing and Urban Development (HUD).
The contract period for the grant is expected to begin Sept. 1, 2009 and end Aug. 31, 2011.
For more information, contact Janis Hendrix, the city’s community initiatives program administrator, at (512) 393-8147.
Email | Print