717 Credit Union to Administer $13M for Youngstown Housing
YOUNGSTOWN, Ohio – The city has selected 717 Credit Union to administer $13 million in American Rescue Plan Act funds across three programs to improve housing.
As part of the Youngstown Affordable Loan Program, the city allocated $8 million for the construction and/or rehabilitation of quality affordable housing. The credit union proposed to parlay the $8 million into not only funding for housing development, but also $35 million worth of discounted mortgage financing.
To begin development, 717 will create a $5 million revolving commercial development fund to be used for developers to rehabilitate vacant downtown buildings into residential condos, to build homes on vacant lots and to develop neighborhoods. After renovation or construction, the units will be sold to individual buyers and the funds recuperated to be invested in additional projects.
Homebuyers will receive interest rate reductions subsidized by the ARPA funds. The program will provide $35 million in reduced-rate mortgage loans. Financing includes a 2% rate reduction and no closing costs. Through the program, based on current rates, the principal and interest payment on a $100,000 loan would be less than $500 per month.
“The dream of home ownership is increasingly out of reach for many individuals,” said John Demmler, president and CEO of 717 Credit Union. “The Youngstown Affordable Loan Program will make that dream achievable for many Youngstown families. This program directly aligns with our mission of helping people improve their lives financially and supporting the communities we serve.”
The Residential Façade Program will provide low-interest loans of up to $10,000 or a dollar-for-dollar match up to $10,000 to qualifying homeowners in Youngstown to improve and update the exterior of their homes and address any currently cited or potential code violations against the property. There are $3 million in ARPA funds allocated to the program, which aims to stabilize and increase the value of homes throughout the city.
The third program, the Landlord Revolving Loan Fund, has been allocated $2 million to provide resources to landlords to make renovations or repairs or to address code violations. Eligible landlords can apply for a low-interest loan of up to $50,000 for each repaired or renovated property. A single landlord is capped at $100,000. The terms of the loan include a 2 percent interest rate for up to a 60-month term. Landlords can apply through the credit union.
The Residential Façade Program and the Landlord Revolving Loan Fund are expected to be available in late winter. The Youngstown Affordable Loan Program will be available this spring.
“We are proud to partner with 717 Credit Union, who has proven to be a true community champion, for such an important initiative,” Mayor Jamael Tito Brown said. “Helping Youngstown residents achieve the dream of home ownership represents a major step forward for so many in our community.”
To further assist with enhancing rental properties, 717 is also developing a loan refinance program for owners of single- or multiple-unit rental properties.
Published by The Business Journal, Youngstown, Ohio.
