At least here people have to contribute to others to help themselves – from latimes.com:
http://www.latimes.com/business/la-fi-habitat27-2009nov27,0,6797289.story
Unfortunately, for low-income families, even deeply discounted foreclosures are out of reach because of competition from more prosperous first-time buyers and investors. “If it wasn’t for this program, they wouldn’t qualify for something like this,” Quezada said. “Someone like them wouldn’t stand a chance to an all-cash offer.”
The home, which was bought out of foreclosure by Habitat, will cost the couple $208,000. In order to afford the property, Habitat arranged for the couple to receive a $65,000 silent loan through the city of Lynwood. (A silent loan, repaid only when the property is sold or refinanced, is often offered by cities and other local governments to facilitate affordable housing.) They will get a traditional loan for the rest.
The couple put in 125 hours working construction sites and other jobs for Habitat to qualify to buy the home.
Habitat for Humanity, Greater Los Angeles, aims to buy and renovate 20 properties during the fiscal year ending June 30. Rank said she sees the new availability of bank-owned properties as a way to preserve the group’s mission despite sagging donations from traditional donors, including banks, builders and the entertainment industry.
“We have a heavy investment in these communities, and we don’t want to see the families fall down again because of a high number of foreclosed homes sitting boarded up and vacant in their neighborhoods,” Rank said. “Right now it is really hard for low-income buyers to get a loan on properties, so Habitat is the builder and the lender, and we lend at zero interest.”
Sounds like a good program all around. The sweat equity has to help weed out the truly flaky.
This program should really bother those whom feel that Gov’t intervention is keeping prices artificially high–although Habitat is a private entity, they ae getting Govt funding at the all levels.
I like the programs like Habitat and Homes of Hope – where the new homeowners are required to put work in AND are prescreened for stability, employment, etc.
These homes go to families. It’s about providing a stable home situation for children.
I have a much bigger problem with the $8k home purchase tax credit and the bank bailouts.
Habitat is on my charitable giving list because it’s about a “hand up” rather than a “hand out”.
I don’t have a problem with Habitat–I have donated both time and money to Habitat and feel they are a great organization with a great cause. However, I also don’t have a problem with the Gov’t interviening to try to help stabilize things. Those who do need to stay consistant with thier thoughts and should also not support this type of intervention and Gov’t incentives and assistance either.
I don’t have a problem with it, even though I despise the govt’s attempts to keep prices artificially high (they are not “stabilizing” anything).
This program is for **families** who are willing to work toward having a **modest** home for themselves. I do think there needs to be a limit, because too much of this will indeed affect the market, but if it’s as small as these programs are (below 1% of the housing market??), they are fine by me.
If government housing market interference wasn’t keeping prices high. These people would be able to afford housing without having to beg for handouts.
Just let prices fall and we won’t have to waste time figuring out ways to get lower income families into homes.
Well said, shadash! 🙂