Media Release

April 18, 2008

PDC Secures $20 Million To Help First-Time Homebuyers In Portland

The Portland Development Commission (PDC) took a big step forward this week in its continued commitment to support first-time and minority homebuyers in Portland. On Tuesday, the PDC and the City of Portland were awarded $20 million in bond authority from the State of Oregon’s Private Activity Bond Allocation Committee. This allocation will enable PDC to create a Mortgage Credit Certificate (MCC) program that will help 100-125 families become first-time homebuyers in Portland. The program is expected to become operational on June 1, 2008.

“This award couldn’t have happened at a more critical time”, said PDC executive director Bruce Warner.  “The recent tightening of the mortgage credit markets has made it more difficult for first-time homebuyers to qualify for a home loan. This program provides the needed financial assistance to help these buyers qualify.”

Eligibility Requirements

The MCC program allows eligible buyers to claim up to 20 percent of their first mortgage interest as a dollar-for-dollar tax credit verses a traditional tax deduction, which can increase the amount of a mortgage for which a borrower will qualify. In order to participate in the MCC program potential homebuyers must:

• Have an annual income at or below $67,500 for a family of one or two, or $77,625 for a family of three or more
• Purchase a home in the City of Portland with financing from PDC or a participating lender
• Must be a first-time homebuyer, which Internal Revenue Service defines as not having owned a home in the past three years

Changes and additions to other homebuying programs  

The MCC program is further evidence of PDC's increased commitment to and funding for first-time homebuyer programs.  In January, the PDC Board added $2.15 million to its existing $900,000 homebuyer assistance budget and added five new urban renewal areas to the list of areas eligible for assistance through the PDC Neighborhood Housing Program (NHP).  These added PDC resources bring the total NHP FY07-08 homebuyer assistance budget to just over $3 million and adds Gateway, Oregon Convention Center, Downtown Waterfront, River District and the Central East Side Urban Renewal Areas.  NHP programs have been available in the Lents and Interstate Urban Renewal Areas for a number of years.

Along with this budget increase, PDC also made dramatic changes to its homebuyer assistance loan programs in January.  The new Down Payment Assistance Loan (DPAL), is a 4 percent 30-year loan, that does not require monthly payments.  Instead, the interest accrued until the home is sold or no longer occupied by the homebuyer, at which time the loan and interest must be repaid. If the homebuyer owns and occupies the home for the full 30-year loan term, the loan becomes a grant and does not have to be repaid.  

“We are very excited to have even more financial resources available for our housing programs,” said Shelly Haack, PDC Senior Housing Manager in charge of NHP.  “PDC’s commitment to helping Portland families realize the dream of home ownership has never been stronger.”

For more information about the Mortgage Credit Certificate program and the Down Payment Assistance Loan please visit www.pdc.us/nhp or call a PDC loan specialist at 503-823-3400.

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