City Launches First Time Homebuyer Down Payment Assistance Program

NEW ROCHELLE, NY — Are you a New Rochelle resident interested in purchasing your first home and might be interested in some help with that down payment?

First-time home buyers in New Rochelle can now get some help thanks to a new down payment assistance program recently approved by the city council. The city will start offering eligible home buyers up to 19 percent toward the price of a single-family home as long as buyers can match at least 1 percent from their own funds and meet additional criteria.

"Expanding affordable housing and opportunities for homeownership is central to New Rochelle’s vision for a growing a diverse city where people of all backgrounds are welcomed and provided pathways to grow roots in the community and get ahead," City Manager Charles Strome said. "The First-Time Home Buyer’s Down Payment Assistance Program is yet another instance of the City’s commitment to residents and reason why New Rochelle, with its rich culture, bustling downtown and beautiful neighborhoods, is such an attractive place to live."

The First-Time Home Buyer's Down Payment Assistance Program is designed for prospective buyers of single-family homes, co-ops and condos valued as high as $494,000. The income eligibilities are as follows:

• individuals earning an average of $71,400
• couples earning an average of $81,600
• families of 3 earning an average of $91,800
• families of 4 earning an average of $102,000
• families of 5 earning an average of $110,150
• families of 6 earning an average of $118,300

Applicants must purchase and occupy the home as their principal residence for five years, after which time the zero-interest loans will be forgiven.

The initiative was launched this month and will help make the American Dream of homeownership a reality for local low- and moderate-income households and will also address the racial wealth gap facing communities across the nation.

Home ownership is widely believed to be the number one asset for accumulating wealth for most Americans. According to a report recently released by the National Association of Realtors, homeownership across the country continues to grow to its highest point since the Great Recession. However, in New York, Black homeownership (35 percent) and Hispanic homeownership (28 percent) are both significantly lower than White homeownership (66 percent).

"Our City is only as strong as the people who call it home and that’s the reason why New Rochelle is prioritizing innovative initiatives like this that are elevated through inclusivity," Commissioner of Development Adam Salgado said. "We take pride in all of our residents and have a continued long-term commitment to the people and diversity that makes up New Rochelle."

New Rochelle is launching a comprehensive outreach campaign to engage the community and spread the news about the new program, including a dedicated website and social media campaign, in addition to town hall-style forums and community events for those interested in learning more and applying.

A forum for industry professionals will be held on April 26 at City Hall and one for the general public will be held on May 11 at the New Rochelle Public Library.

Funding for the program was through a combination of local and federal money through the U.S. Department of Housing and Urban Development's HOME program and New Rochelle's Affordable Housing Fund.

Additional eligibilities for applicants are:

• a resident of New Rochelle
• a first-time homebuyer (cannot have owned a home during the 3 years before purchasing a residence with HOME funding); requirement waived for U.S. military veterans who have a DD-214, verifying honorable service.
• complete a mortgage counseling/education workshop at a HUD-certified not-for-profit housing agency.
• purchase a lead-free paint home within New Rochelle; a lead-based paint inspection will be conducted for all homes built before 1978.
• occupy the purchased property as a principal residence
• pass a Housing Quality Standards Inspection before receiving HOME funding.
• must not enter into a contract of sale prior to being awarded a purchaser certificate.
• contribute, from own funds, at least one percent of the purchase price towards the down payment.
• have a documented minimum annual household income of $40,000 and be able to obtain a mortgage

Applications may be obtained on New Rochelle's website.