Affordable housing is on the rise thanks to a hefty grant.
The La Plata Home Fund Inc. received $550,000 from the U.S. Treasury’s Community Development Financial Institution Fund, according to a La Plata Home Fund news release.
“With this funding, we are able to move hard-working families into homeownership,” said Karen Iverson, executive director of the La Plata Homes Fund, in the release. “We work with teachers, police officers, and medical professionals who want to put down roots in La Plata County but cannot afford the high cost of housing in the area.”
According to statistics provided by the Durango Area Association of Realtors, in the second quarter of 2014 the median price home in La Plata County rose to $329,500, a 4.6 percent increase from the second quarter in 2013.
A family needs to earn at least $81,000 to afford the median-priced home, and 65 percent of households in La Plata County earn less than that, the release said.
The agency provides assistance to low-income families with a mortgage assistance loan. The loan helps fill in the gap between what a household can afford and the market rate of housing.
The mortgages are typically silent shared appreciation loans. Borrowers do not make interest payments, however when they sell or refinance their home, the principle is paid back plus the appreciation is shared pro-rata with La Plata County Housing Fund, meaning every shareholder receives an equal proportion of the share.
The U.S. Department of the Treasury’s Community Development Financial Institutions Fund announced $195.4 million in awards for 185 local financial institutions nationwide. The fund invests in and builds the capacity of the institutions serving rural and urban low-income people across the nation. For the 2014 funding round, a total of 427 applications were received requesting more than $474 million.
The La Plata Homes Fund was one of only four agencies in the state to earn the federal grant.
vguthrie@durangoherald.com
