Capitola, California city officials propose to apply for $500,000 in community block grant funds from the state for first-time homebuyer assistance and housing rehabilitation, enough for three years of loans, staff time and the cost of administering the program by the Housing Authority of Santa Cruz County. As santacruzsentinel.com reports, the program would make loans to people who earn less than 80 percent of the median income, which is $52,900 for a family of two, or $66,600 for a household of three. They would be eligible to buy a home priced up to $383,000, a limit set by the Department of Housing and Urban Development, MHProNews.com has learned. Manufactured homes are included in the program, and many of them are priced below the upper limit. Guidelines limit city assistance to no more than 50 percent of the purchase price, and payments made by borrowers support future lending. The rehab loan program would have the same income limits, but the three percent interest would not be assessed until the property is sold. Additionally, seniors 62 and older could be eligible for $7,500 grants.
