Cohousing-L Mailing List: Re: COHOUSING-L digest 444

[David L. Mandel (75407.2361]

Marty  Roberts of Santa Rosa, Calif., wrote (a second time):

>I am new to this list and this is my first post.  I have been very
>interested in the discussion of affordability.  I am a member of the Jewell 
>Hill community in Sebastopol, CA.  We are fast approaching major decisions 
>around finances, legal entity, entitlement, etc.

>My question to those who know about housing assistance programs: Which 
>programs (if any) apply to people who already own a home?  I own a home
>which is very inexpensive in our community.  A house in our co-housing
>community might be too expensive since it is in another city where housing
>costs more.  Do you know of any programs which would apply to someone like
>me?  If my income falls at or below the median of the new community, does
>that help?  There are others in our group (and other groups) that would be
>interested in this info I believe.
>Thanks for any help

Marty (and others -- I think this is of general interest):

The biggest program by far that offers help in mortgage affordability to 
individual buyers, the federal Mortgage Credit Certificate (MCC) program 
normally requires that you haven't owned a home in the previous two years. 
Similarly with California Housing Finance Agency (CHFA) loans, which are 
sometimes available at very low interest (a bunch of us got them at 5.75% a 
year ago). There is an exception for both programs, however: If you are 
building (or buying) in a "target area," defined, I think, by its low median 
income, even current owners are eligible. We did build in such an area, and it
made a big difference to several of our members who are fairly low income but 
owned homes previously. Check with your local housing authority that 
administers MCC or with CHFA in Sacramento about target areas in which you 
might find cohousing sites.

For other housing assistance programs, prior ownership may or may not matter. 
Check into them. For the second mortgage program we arranged with our local 
housing authority for low-income buyers, first-time status was not a 
requirement.

Good luck, and regards to the other Jewell Hill folks.

David Mandel, Southside Park Cohousing, Sacramento