Seeks stakeholder input on innovative funding proposal
ELLICOTT CITY, MD – June 19, 2015 – (RealEstateRama) — Howard County Executive Allan H. Kittleman today presented draft legislation to provide funding for “RENEW HOWARD” – Revitalizing Neighborhoods EveryWhere in Howard County, a neighborhood revitalization loan program. Since the program would use Moderate Income Housing Unit (MIHU) Funds, he is seeking input from stakeholders and affordable housing advocates. Executive Kittleman inherited a $15.8 million budget deficit when he took office which caused a delay in the implementation of the loan program.
“I have always been a proponent of revitalizing our older communities,” said Kittleman. “This is an innovative and creative approach to help homebuyers renovate and reinvigorate aging housing stock in Howard County.”
Under the proposal, the Housing Commission will sell $2 million in bonds. That money will leverage an additional $20 million from banks to provide loans to homebuyers seeking to renovate older homes. To assist in paying off the annual $250,000 debt service on the bonds, the county would annually commit up to 50 percent of the revenue collected from the MIHU Fee in Lieu Program. The remaining debt service will be covered by the Housing Commission.
“Loan programs such as RENEW HOWARD are important incentives to prospective homebuyers,” said Kittleman. “They help ensure our older housing stock remains attractive, especially to our younger adults who are looking to purchase their first home with limited resources.”
To participate in the loan program, eligibility would be based on the age of the home, as well as the applicant’s income level, among others.
Kittleman has invited stakeholders, including Bridges to Housing Stability and the Full Spectrum Housing Coalition, to provide feedback on the draft legislation.
Deidre McCabe, Director of Communications, Office of Public Information, 410-313-2022
Mark Miller, Administrator, Office of Public Information, 410-313-2022