January 15, 2008

PDC Expands Homebuyer Assistance Programs

At their January 9 meeting, the Portland Development Commission (PDC) Board of Commissioners approved new funding and significant changes to PDC’s homebuyer assistance tools. The changes increase the PDC home ownership budget and opens up PDC’s homebuyer assistance tools to better partner with private sector lenders. It also replaced the PDC Shared Appreciation Mortgage with a more traditional deferred payment loan.

The Commission increased funding for PDC Homebuyer Assistance Programs by $2.1 million. It also expanded PDC’s homebuyer assistance service areas adding the Downtown Waterfront, Gateway, Oregon Convention Center and River District Urban Renewal Areas to the existing Lents and Interstate Corridor Urban Renewal Areas.

In addition to the increased funding and expanded program areas, PDC is introducing a new loan program. The new program is called the Opportunities Through Partnership (OTP) program and it allows for the first mortgage loan to be made by a participating lender, which may be PDC, with a second loan from PDC. The OTP program is a four percent, silent second mortgage, meaning the payments are deferred. The loan funds may be used for down payment assistance, up to 25 percent of the purchase price, or an interest rate buy-down. PDC can lend up to 105 percent of the value of the property and 5 percent of the loan can be used to pay for home improvements after purchase.

“PDC is excited to have more funding, new programs and a stronger partnership with private sector lenders to help more Portlanders own a home of their own,” said Bruce Warner, PDC’s Executive Director. “Home ownership is a cornerstone of our strategy to make Portland a great place to call home.”

The expansion of PDC’s homebuyer assistance programs is needed to help address the gap in home ownership rates between whites and communities of color. According to 2005 U.S. Census figures, and data obtained by the Native American Youth and Family Services (NAYA), the gap in home ownership rates between whites and African Americans is 21 percent; for Asians it’s 1 percent; for Hispanics it’s 26 percent; for Native Americans it’s 42 percent. According to the Regional Multiple Listing Service, the median priced house in the Portland metropolitan area rose from $79,900 in 1990 to $287,000 as of October 2007.

For more information about PDC’s new and expanded homebuyer assistance programs please visit, www.pdc.us/nhp or call a PDC loan specialist at 503-823-3400.

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