If you are moving forward as a FHA 1st time home buyer and currently looking within the areas of Orange County, Los Angeles, and or Ventura County, then you will want to know about the recent announcement made by the Federal Housing Administration and the Department of Housing and Urban Development just a few days ago.
As of December 9th, the Federal Housing Administration and U.S. Secretary Shaun Donovan for the Department of Housing and Urban Development (HUD) has announced the grant approval and implementation of $19 million to be placed for community development and affordable housing within four designated communities within Southern California. HUD also states that this annual funding, in addition to the community development, will help individuals to be able to find affordable homes for families whom are currently living on the streets and provide permanent housing for those living with illness.
U.S. Secretary Shaun Donovan was quoted stating, “This year’s block grant funding requires tough choices that we would not have made in better circumstances.” Donovan continued to with, “As we work under the challenges of our nation’s deficit, we must also understand that these programs are absolutely essential in promoting community development, producing affordable housing, helping our homeless and even supporting long-term disaster recovery.”
As a first home buyer with the available FHA loan programs available, the increase in FHA loan ceiling limits, and the community contribution for development and affordable housing made by HUD, the benefits as a 1st home buyer continue to increase by illustrating opportunity as a 1st time buyer, positive pricing through affordable programs within the market, and financial strength over the longevity of one’s investment in first time home buying.
The four communities mentioned in the approved community and affordable housing grant are shown below within each of the community recipient breakdowns with grant type and amount:
HUNTINGTON BEACH |
• CDBG $1,234,158
• HOME $722,353
• COMMUNITY TOTAL = $1,956,511
• CDBG $2,028,175
• ESG $97,703
• HOME $1,105,645
• COMMUNITY TOTAL = $1,956,511
LONG BEACH |
• CDBG $7,875,755
• ESG $379,364
• HOME $4,534,441
• COMMUNITY TOTAL = $12,789,560
• CDBG $952,686
• COMMUNITY TOTAL = $952,686
Providing a GRAND TOTAL of $18,930,280 for the four areas.
For and FHA 1st time home buyer, knowing and understanding all of the various terms, departments, and various players within the real estate industry can be a daunting and overwhelming request. To better help understand where the allocated amounts shown above are going, as listed on the HUD’s website, the abbreviations for CDBG, HOME, and ESG, are defined and explain as the below:
CDBG | Community Development Block Grant Program
Since 1974, the CDBG has provided approximately $134 billion to state and local governments to target their own community development priorities. The rehabilitation of affordable housing and the improvement of public facilities have traditionally been the largest uses of CDBG although the program is also an important catalyst for job growth and business opportunities. Annual CDBG funds are distributed to communities according to a statutory formula based on a community’s population, poverty, and age of its housing stock, and extent of overcrowded housing.
HOME | Home Investment Partnerships Program
HOME is the largest federal block grant to state and local governments designed exclusively to produce affordable housing for low-income families. Since 1992, more than 600 communities have completed nearly 950,000 affordable housing units, including 403,000 for new homebuyers. In addition, 224,000 tenants have received direct rental assistance.
ESG | Emergency Shelter Grants
ESG provides homeless persons with basic shelter and essential supportive services. It can assist with the operational costs of the shelter facility, and for the administration of the grant. ESG also provides short-term homeless prevention assistance to persons at imminent risk of losing their own housing due to eviction, foreclosure, or utility shutoffs.