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NOTE: To be
eligible for this program, participants must already receive Section
8 rental or public housing assistance.
Overview
The Louisville Metro Housing Authority's Section 8 Homeownership Program allows eligible Section 8 and public housing residents to use their housing subsidy toward a mortgage payment instead of rent. The term of assistance is 15 years if the mortgage has a term of over 20 years and 10 years in all other cases (exceptions are made for elderly and disabled families).
This assistance can
only be used towards monthly mortgage payments; program participants
must cover all costs associated with inspections, down payment,
closing and on-going home maintenance.
Eligibility Requirements
Eligibility requirements for participants include, but are not
limited to the following:
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Must be a first-time
homeowner (not owned a home in the past 3 years)
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Must meet minimum
income requirement of $14,500 (minimum wage x 2,000 hours)
or, in the case of a disabled family $8,088 (monthly SSI
benefit for a single x 12 months)
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One or more adult
members of the family must be currently employed full-time
and have been continuously employed during the past year
(exceptions made for elderly and disabled head of household)
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Participants must
attend and complete homeownership counseling offered by either
the Housing Partnership or the Louisville Urban League
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Must have stable
family composition (at least one year)
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Must not have
been in the termination of assistance process more than once
in the last two years
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Must not owe the
Louisville Metro Housing Authority or any other Housing Authority
an outstanding debt
Participation
Requirements
If the eligibility requirements are met, program participants will
have 120-days make an application with a participating lender and
secure pre-approval for a loan, find a prospective home, and sign
a sales contract (with up to two 120-day extensions available).
Program participants will remain on LMHA's rental assistance until
the home purchase is complete (if unsuccessful, rental assistance
will remain in effect).
On-going obligations include, but are not limited to the following:
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Residence in
the home
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Participation
in Post-Purchase Counseling and Individual Development Account
for repairs and maintenance
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Maintain on-going "full-time" employment
(at least 30 hours per week). Except for disabled and elderly
households, each household must demonstrate that each person
18 years or older is either employed full-time, or is a full-time
student, or is providing care to a child or disabled person on
a full-time basis. The head of household must be employed; for
other adults, a combination is allowed as long as the total
is not less than the average of 30 hours per week. Self-employment
requires a net income (income after business expenses have
been deducted) that equals the federal minimum hourly
wage multiplied by 1,500 hours
Home
Purchase Requirements
Homes may be purchased throughout the Louisville Metro area and in some cases outside of the area if certain conditions exist. The home must be under construction or already be in existence at the time the family enters into the contract of sale. The home must also meet the following criteria:
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A new or existing
single-family home
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A single dwelling
unit in a condominium or cooperative
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A manufactured
home to be permanently situated on a lot owned by the family
Background
Information
As of February 28, 2010:
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156
families have successfully purchased homes (87 working full-time
and 69 disabled families).
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Average income is 16,371 with average of 2.8 people per household.
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Average home sales price is $93,034 with average of 2.8
bedrooms.
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Average tenant payment (at least 30% of income) is $451 and
average housing assistance payment is $372.
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Sixteen clients' incomes have increased enough to no
longer need Section 8 assistance.
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Every client has successfully completed pre-purchase homeownership counseling, and participated in post-purchase counseling and Individual Development Account matched savings program.
For more information
contact Lisa Osanka
or call (502) 569-7040 or Nicole
Lyons (502) 569-3776.
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"It's a wonderful feeling
to own a home," said Helen Cole, who recently purchased her
first home in West Louisville. She gives the credit to the
LMHA program that prepares individuals and families for homeownership. "I've
already referred seven people to the program," she added. Helen
first heard about the program in March of 2000 when she was
a resident at Beecher Terrace. An LMHA staff person suggested
she might be eligible and encouraged her to consider enrolling.
After she agreed to enter the program, her case managers stayed
with her and encouraged her every step of the way. "The program
is a time commitment, but well worth it," she explained. Through
class work and regular support from her case manager, Helen
gained self-help and money management skills. Thirteen months
after purchasing her home, Helenís income increased which resulted
in her no longer needing assistance from Section 8. In those
13 months, Helen received special classes that gave her the
skills for success and she earned match money in the IDA account
to use toward home repairs and maintenance. She remains a successful
homeowner. Helen and her children are enjoying their new home,
and she has nothing but positive things to say about the program
and its staff. "They push you right on and they are there to
help you all along the way."
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