WASHINGTON, D.C. – August 25, 2015 – (RealEstateRama) — Utah Housing Corporation and Mountainlands Community Housing Trust are hosting an open house for four new affordable CROWN (Credits-to-OWN) homes in Francis. The CROWN program seeks to bring homeownership within the reach of ower income households while helping local governments to revitalize neighborhoods. These homes will help four households realize the dream of homeownership as they build equity with their low monthly rent payments.
The public is invited to the open house on Wednesday, August 26, 2015 located at 281 River Bluffs Drive, Francis, UT. 84036 Using proceeds generated from American Express’s purchase of tax credits, along with other financing, an affordable housing rental project consisting of four homes was developed. The purchase of tax credits reduces the rents the tenant pays during a 15 year rental period. Mountainlands Community Housing Trust provided deferred repayment on the land in the amount of $216,000, thus enabling the rents to be reduced further.
The two, 4-bedroom and two, 3-bedroom homes will rent to households earning no more than 47% of the area median income (AMI) for Summit County (for example, $47,564 for a household of four) and will rent for $1,075 (4-bedroom) and $960 (3-bedroom) a month, plus utilities.
“This is the best homeownership program available. Four fortunate families will be able to live in a nice home at below market rents then convert that into substantial equity in fifteen years,” said Scott Loomis, Executive Director, Mountainlands Community Housing Trust.
The CROWN homes will be rental units for 15 years. The resident living in the unit at the end of year 15 will have the opportunity to purchase the home at a below market cost. The intent of the CROWN program is to provide home ownership opportunities to those who otherwise may not be able to purchase a home.
Throughout the 15 year rental period, residents assume responsibilities for basic home maintenance and repair items, participating in homeownership courses, and preparing financially to sustain home ownership.
One unique aspect of the CROWN program is the proceeds generated from the sale of CROWN homes after the 15-year rental period. Known as the CROWN Community Fund, it is estimated that more than $200,000 will be available for new affordable housing projects in 15 years.
“Working together with Mountainlands Community Housing Trust to bring quality homeownership options to hard-working households in Summit County has been a rewarding experience. CROWN offers an affordable opportunity for modest income people to get into a new home of their own,” said Grant S. Whitaker, UHC President.
The CROWN program is made possible by Federal Low Income Housing Tax Credits awarded by the Utah Housing Corporation. American Express, as the purchaser of the tax credits, is expected to fund approximately $524,500 in equity toward the project. The equity funding is used to lower the project’s debt, thereby allowing the owner to charge lower rents. Utah Housing Corporation has provided a construction loan in the amount of $736,200 and permanent financing in the amount of $312,500.
Utah Housing is a public corporation created by the state of Utah, and is the state’s leader in financing affordable housing. Working with the private sector, Utah Housing Corporation provides mortgages for first time home buyers, finances rental properties and develops special needs housing. At no cost to the State, Utah Housing Corporation has provided financing for more than 75,400 single family home purchases and 23,850 multi-family apartments since 1977.
Utahns can visit Utah Housing’s website at www.utahhousingcorp.org, call 801-902-8200, or talk to their realtor or banker about Utah Housing mortgages or homes in their communities.
Susan Van Arsdell (801) 902-8233
Jonathan Hanks (801) 902-8200