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The Bloomfield program, which helps middle-income residents buy homes, has raised concerns from some who work with low-income residents at risk of homelessness.
The new down payment program is a $1 million fund to help first-time homebuyers who make 80% to 100% of the area median income, or $69,520 to $86,900 per person in Broomfield.
Homebuyers who meet the salary requirement can receive a 30-year deferred loan at 2% annual interest on amounts not to exceed 6% of the purchase price or $50,000. Homebuyers must contribute at least $2,500 as a down payment The federal government sets salary limits and qualifications each year.
Bloomfield City Council members approved the down payment program on a 9-1 vote. Ward 4 Councilwoman Laurie Anderson opposed the bill. Anderson and other critics of the program have expressed concern that the money should be directed toward low-income residents.
“There are so many needs in our community right now, and we have long debated that the most cost-effective way to help people is to put a roof over their heads to prevent them from spiraling. ” Anderson said in a statement. “Thus, the $1 million allocated could have been better spent on rental assistance and other assistance through Broomfield’s nonprofit partners.”
The program’s annual budget of $1 million is funded by Bloomfield’s Inclusive Housing Ordinance, which incentivizes developers to build affordable housing. Developments that do not include a percentage of affordable housing units could instead pay cash, which would be allocated to the city’s Inclusive Housing Ordinance Fund.
“While some may argue that this funding comes from the IHO Fund and not the General Fund, at the end of the day, we are allocating these funds and when discussing the allocation of nonprofit funds we consider other programs “We can no longer consider it in June,” Anderson said.
At the council’s Jan. 23 meeting, 5th Ward Councilman Todd Cohen asked if inclusionary housing funds could be allocated to nonprofit organizations. City officials say there are no formal restrictions on how the funds can be used.
“When we established the Housing Development Fund, we were looking at creating opportunities to support development and new programs to support increased housing opportunities,” Sharon Tessier, the city’s housing policy manager, said at the meeting. Ta.
Tessier agreed with City-County Manager Jennifer Hoffman that limits on how IHO funds are used will be set internally. She said any changes to how funds are allocated would require discussions with developers.
Dana Scott, executive director of Bloomfield FISH, which provides food and housing assistance to residents, said she sees low-income residents in need of help right now.
“In the first 10 days of January, 30 people requested emergency rent assistance,” Scott said at the Jan. 23 meeting. “I really want to encourage you to focus on our most vulnerable populations: those living below 60% AMI, those living without housing, and those at risk of eviction. I want them to seriously think about the people who are being hurt.”
Under federal program limits, those earning 60 percent of the area median income can earn up to $52,140.
Scott said the down payment program is a good program, but with limited funds available, he wants city officials to prioritize residents experiencing housing insecurity and homelessness.
“In the emergency room, we prioritize patients with severe trauma and who are at risk of death over patients with mild trauma. I believe we need to take every possible step to prevent people from falling into hunger, housing instability, and homelessness,” Scott said in a follow-up statement after the meeting. “That being said, I believe we can allocate resources to address every need on the AMI continuum. But that requires more funding.”
Despite the concerns, supporters of the program have high hopes that homebuyers will benefit.
“At a time when home prices are so high, we are excited to approve a down payment assistance program to help individuals who may otherwise be excluded from the housing market,” said Ward 2 City Councilor Paloma Delgadillo. he said. “I fundamentally believe that Broomfield is for everyone, and when I say ‘everyone,’ I include low-income residents. We are pleased that, as a council, we have chosen to actively live our values by endorsing this program and ensuring that Broomfield is a community for everyone. . ”
The nonprofit Colorado Housing Assistance Corp. will administer the program. The new townhomes in the Grand View at Interlochen development, located at 471 Interlochen Boulevard near the Omni Interlochen Hotel, feature income-restricted units eligible for a down payment program.
The program targets first-time homebuyers, but also applies to other residents, such as households that need to downsize for medical reasons or individuals who need to escape domestic violence in their current home. subject to.
City and county officials estimate the proposed budget will help about 20 homebuyers, but additional funding may be available through the Colorado Department of Rural Affairs.
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