The Metropolitan Housing Alliance in Little Rock voted to reactivate its Housing Choice Voucher Homeownership program Thursday.
The program allows low-income recipients of the Housing and Urban Development's Section 8 rental vouchers to instead have those subsidies go toward house payments.
While there are eligibility requirements, a person receiving a homeownership voucher wouldn't be required to purchase a certain type of home or in a certain neighborhood, alliance Executive Director Rodney Forte said Thursday.
"That's the beauty of the program. It is not confined to a block, lot or neighborhood. It's wherever affordability lends itself," he said. "With this program, HUD is able to create some level of independence [that is] long term that would maybe cause the person not to be able to need the program."
The agency, formerly known as the Little Rock Housing Authority, facilitated the program once before in 2009. There's been recent interest in restarting the program, Forte said.
An applicant must have participated in the rental version of the Housing Choice Voucher program with the Metropolitan Housing Alliance for one year to be eligible for the homeownership program.
Family income for the household must meet at least $15,000, excluding any welfare assistance, but there are two exceptions to that requirement. The income rule doesn't apply to families designated as elderly or disabled.
Also, if a family can show it has been pre-qualified or pre-approved for financing that is sufficient to purchase a home, it may be eligible without meeting the minimum income.
The head of the household must be employed full time and have been for 12 consecutive months to receive a voucher.
Lastly, a family must not have defaulted under any previous homeownership loan and must be defined as a first-time homebuyer under HUD standards.
HUD defines a first-time homebuyer as anyone who has not owned a principal residence in the past three years, who has only owned with a spouse, who has only owned a residence not affixed to a permanent foundation, or who has only owned property that wasn't in compliance with state and local building codes.
Applicants approved for a homeownership voucher will be required to go through counseling to prepare them for ownership. The program requires a 3 percent down payment -- 1 percent of which must come from the family.
Forte said anyone interested in applying for the program can contact the housing alliance at (501) 340-4821. The agency will send letters to all of its tenants to inform them about the program.
"I'm excited, and always have been, for people to own their own little piece of the Rock," said Kenyon Lowe, chairman of the city's Housing Authority Board of Commissioners. "It makes a difference in how you perceive yourself, your attitude. I'm excited about it."
Forte said before the program begins, the alliance will educate bank lenders about the program to provide eligible applicants a list of bank partners.
The alliance also will find homeownership counseling programs to partner with and research subsidized down payment programs to suggest to the applicants.
"We don't want to get the program up and running and then people don't know how to own a home," Forte said.
"We don't want to set people up and them not be able to take advantage of the success. We want to create a program that works fully."
The Board of Commissioners unanimously approved reactivating the program Thursday and will include plan information in the agency's administrative plan document.
Homebuyers, sellers and lenders can obtain a copy of the "Housing Choice Voucher Program Homeownership Plan" document from the housing authority.
The document includes eligibility requirements, seller requirements, property requirements and information on inspections, home financing, family obligations and the terms of assistance.
The housing alliance administers more than 2,000 Section 8 rental housing vouchers and manages 902 public housing rental units.
Metro on 04/17/2015