Buying a first city home just got a little easier for low- to moderate-income residents.

First-time homebuyers in the city will now have access to a pool of $350,000 in assistance for down payment and closing costs through the Lancaster Housing Opportunity Partnership.

Previously the aid, which comes in the form of a $5,000 interest-free loan for those who complete an LHOP housing class, was available only to Lancaster County residents who purchase county homes outside the city.

But a new arrangement between the county and city makes it possible for the entities to share the federal housing funds that bankroll the LHOP loans.

"We feel that overall the program would be strengthened if we took this opportunity to allow those funds to be used on either side of the line," inside or outside the city, said Matthew Sternberg, executive director of the Lancaster County Redevelopment Authority, which oversees the housing program for the county.

The redevelopment authority has annually given $500,000 to LHOP from money it gets from the U.S. Department of Housing and Urban Development. Now, the development authority is making $300,000 of that money available to city homebuyers.

Sternberg said demand for the first-time homebuyer help outside the city had slowed recently and all of the money wasn't being used, creating a chance to expand the program to city homebuyers.

Lancaster County Commissioners approved the new arrangement at their meeting this morning.

LHOP offers up to $5,000 in loan assistance to first-time homebuyers to help with down payment and closing costs for people who complete a 10-hour class on the requirements and process of purchasing a home. The interest-free loans don't have to be paid back unless the owner moves, sells the home or fails to occupy it.

Homebuyers must meet income-eligibility requirements, which begin at $35,950 for an individual.

As part of the newly approved arrangement, the city will dedicate $50,000 of its HUD funds for the LHOP program, according to Randy Patterson, director of the city Economic Development & Neighborhood Revitalization department.

The city has traditionally used its HUD money for new construction, rehabilitating homes and supporting rental housing.

Yet Patterson said the new homebuyer training and loan assistance from LHOP could be just the boost that turns city renters into owners.

"They're already paying rent that is close to a mortgage payment, they just can't come up with the down payment and closing costs," Patterson said.

In other business at the county commissioners meeting this morning,  commissioners approved an agricultural easement for 208.36 acres of farmland in Mount Joy Township owned by the family that owns Nissley Vineyards.

The easement, aimed at keeping the property from ever being developed, is being paid for by the state Bureau of Farmland Preservation at a cost of $709,465. The county's Agricultural Preserve Board will manage the easement.


Staff writer Chad Umble can be reached at cumble@LNPnews.com or 481-6031. blog comments powered by Disqus