Cincinnati City Council is considering two ordinances that would transfer money from existing federal HOME Investment Trust project accounts for the creation of low- and moderate-income housing.

The first ordinance would authorize the transfer and appropriation of $100,000 to fund the American Dream Downpayment Initiative (ADDI), a program that provides up to $8,500 in down payment and closing cost assistance to low- and moderate-income individuals seeking to buy their first homes.

Funding would come from tenant-based rental assistance and surplus ADDI 2007 project accounts.

To receive the sliding-scale grants, ADDI applicants are required to complete a U.S. Department of Housing and Urban Development (HUD) approved homebuyer counseling program and must agree to remain in the home for at least five years. HUD must deem any loans "affordable", and strict limits are placed on the prices of homes that are eligible for the program.

So far this year, 55 new homeowners have received the grant at a cost of nearly $363,000. Over 200 additional applications have been pre-approved, with 31 applicants having purchase contracts on homes.

A second ordinance would authorize the transfer and appropriation of $165,000 in federal HOME funds to help Cincinnati Habitat for Humanity with tap and permit fees to aid in the construction of new housing for low-income families.

These funds would come from a 2001 housing development account, the McMicken Transitional Housing account, and tap and permit fee accounts for the years 2006-2008.

Previous reading on BC:
Neighborhood stabilization funding to be tweaked (5/13/09)
ADDI program helps sell homes in the City (12/14/07)