County Launches Efforts To Boost Home Ownership Opportunities

SS/housing.pr 97-179 Contacts: Steve Simon, 301-217-6534
(Mont. Co. Information Office)
Joe Feuerherd, 301-929-6724
(Mont. Co. Housing Opportunities Commission)

COUNTY LAUNCHES EFFORTS TO BOOST
HOME OWNERSHIP OPPORTUNITIES For Immediate Release: June 9, 1997

Montgomery County Executive Douglas M. Duncan and a host of other elected
officials joined today to launch "Home Ownership Montgomery," a multi-faceted housing
initiative aimed at boosting home ownership throughout the county and, specifically, in
selected older communities.
One part of this effort entails the County's new Closing Cost Assistance Program,
which serves first-time home buyers with loans of up to $7,500 -- or 5 percent of the home
sales price -- for down-payments and other closing costs on homes costing up to $189,500.
Another element involves use of the new $5 million Neighborhood Initiative program, which
provides low-rate mortgages for buyers of owner-occupied homes in three older Montgomery
County neighborhoods which currently have a high concentration of rental units --
Connecticut Avenue Estates in Wheaton, McKendree in Montgomery Village, and Long
Branch in the east Silver Spring area.
"Our goal is to assist families and individuals who have most of what it takes to
become a homeowner, but who need a little help in making that final leap," said Duncan.
"Certainly, the actual home purchasers will benefit from these initiatives, but, just as
importantly, the existing residents of our neighborhoods will benefit by having new neighbors
who have a stake as home owners."
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HOME OWNERSHIP MONTGOMERY 2-2-2

"There is perhaps no better way to support our communities than to work with the
leadership of these areas to promote approaches which they have determined will effectively
enhance the stability and livability of their areas," said County Council President Marilyn J.
Praisner. "Here in Connecticut Avenue Estates, in Long Branch, and in other areas of the
county where home ownership rates are low, community leaders are looking for the tools they
need to promote stability and commitment to community that home ownership brings."
Duncan and Praisner were joined by U.S. Senator Paul Sarbanes; County Housing and
Community Affairs Director Elizabeth Davison; Housing Opportunities Commission Chair
Barbara Goldberg-Goldman; U.S. Department of Housing and Urban Development Assistant
Secretary Michael Stegman; Stacey Davis Steed, Vice President of Housing Impact for Fannie
Mae's Southeastern Regional Office; Montgomery Housing Partnership President Tad
Baldwin; and various other officials in announcing the program at a press conference today at
a private residence in the Connecticut Avenue Estates neighborhood. The home, at 12107
Centerhill Street, is being purchased by the Montgomery Housing Partnership with County-
provided funds. The non-profit organization will refurbish it and resell it to a household
which qualifies for assistance under the Home Ownership Montgomery programs.
The kickoff of the Home Ownership Montgomery effort coincides with National Home
Ownership Week, which runs from June 7-14, 1997.
The various Home Ownership Montgomery programs are jointly sponsored by the
County's Department of Housing and Community Affairs and the Housing Opportunities
Commission (H.O.C.), in cooperation with Fannie Mae, the Montgomery Housing Partnership
and neighborhood civic associations.

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"Through its home ownership programs, HOC has helped nearly 9,000 home buyers
purchase their first house in Montgomery County," said Goldberg-Goldman. "Now, through
the County's Closing Cost Assistance Program and through the Neighborhood Initiative
Program, more low and moderate income families will get the help they need to realize their
dream of home ownership. Furthermore, through our partnership with Fannie Mae, the
Montgomery County communities most in need of increased home ownership will benefit. It
is a win-win for everyone involved."
The Closing Cost Assistance Program is a $1.3 million partnership with Fannie Mae --
with $1 million in loan money being made available by Fannie Mae and $300,000 from the
County. Fannie Mae is a Congressionally chartered, shareholder-owned company and the
nation's largest source of funds for home mortgages.
"Increasing the availability of affordable mortgage credit is an important part of
Fannie Mae's $1 trillion commitment," said Steed, of Fannie Mae. "The Montgomery County
HOC program is a perfect example of the creativity our local partners are utilizing to help
families overcome the obstacles to owning a home of their own."
Closing costs include everything from a down-payment on the home and appraisal fees
to home inspections and legal fees. The Housing Opportunities Commission will administer
the program, which will begin in July. Between 150 and 200 first-time home buyers are
expected to participate in the program during its first year. Interest rates have not been
established yet, but are expected to be less than 8 percent. All areas of the county are open
to the program, although a percentage of the funds will be set-aside to boost home ownership
rates in selected areas of the county.

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Under the new $5 million Neighborhood Initiative Program, the HOC will make low-
interest loans to buyers for buyers of homes priced up to $185,000 in selected areas of the
county. The program is being funded through proceeds of previous home ownership bond
sales administered by the HOC, which will begin making loans through the program in July.
In addition to these new initiatives, Montgomery County has longstanding programs to
help first-time home buyers and longtime home owners. These programs include the
Moderately Priced Dwelling Unit Program, which makes home ownership possible for first-
time buyers in new communities, the Mortgage Purchase Program, which makes low-interest
loans to first-time home buyers, and the County's Home Improvement program, which
provides low-rate loans to income-eligible families for needed home repairs.
For information on Home Ownership Montgomery, contact Joe Feuerherd at the
Housing Opportunities Commission, (301) 929-6724.

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