[Archived] City of Alexandria Receives $8.5 Million for Loans to First-Time Homebuyers

City Press Release


	For Immediate Release	For More Information, Contact
	March 8, 2007 PIO# 061-07/rdo	Steve Mason, Director of Communications, at 703.838.4300 Raynard Owens, Communications Officer, at 703.838.4300

City of Alexandria Receives $8.5 Million for Loans to First-Time Homebuyers

The City of Alexandria has received allocations of new funding for first-time homebuyers totaling $8.5 million from the Virginia Housing Development Authority’s (VHDA) Sponsoring Partnerships and Revitalizing Communities (SPARC) program, HomeStride Program, and a new pilot program called FlexSPARC. The allocations, which must be fully committed by June 30, supplement initial allocations of $12 million in SPARC and $1.2 million in HomeStride that were provided to the City in early 2006.

“Due to high demand, we had exhausted our existing SPARC and HomeStride allocations for Fiscal Year 2007 by mid-year,” said City of Alexandria Office of Housing Director Mildrilyn Davis. “These new allocations come at a critical time in allowing the City to continue its assistance to low and moderate income homebuyers.”

SPARC funds, which offer a 0.5 percent discount off VHDA’s First Time Homebuyer Program loan rates, will be made available on a first-come, first-serve basis to participants in the City’s Homeownership Assistance Program (HAP) and to those eligible for the Moderate Income Homeownership Program (MIHP), which is temporarily suspended. The City was awarded $5 million in supplemental SPARC Program funding.

In addition to new SPARC funding, VHDA has provided supplemental funding of $500,000 to the City through the HomeStride Program. HomeStride provides up to $25,000 in deferred payment, deferred interest financing to eligible homebuyers. The City will target these funds to moderate income homebuyers who meet eligibility criteria for the MIHP Program.

The City will target $3 million in funding provided through the pilot FlexSPARC Program to City and Alexandria City Public Schools employees who are ineligible for VHDA’s first-time homebuyer programs, but are within the income limits for VHDA’s Flexible Alternative loan program. Eligible FlexSPARC participants will receive a 1 percent discount off loan rates available through VHDA’s Flexible Alternative loan products.

SPARC, HomeStride, and FlexSPARC funds are limited and anyone interested is encouraged to inquire immediately.

For more information, call the City of Alexandria’s Office of Housing at 703-838-4622, TDD: 703-838-5056.

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