Suffolk County – FOR IMMEDIATE RELEASE Levy Announces $850,000 in Federal Grant Monies for Home Down Payment Assistance Program Suffolk's first-time homebuyers got some good news today as County Executive Steve Levy announced that he has set aside $850,000 of federal funding for use in the County's Home Down Payment Assistance Program. Suffolk has made significant changes to the program under the Levy administration to double the amount of the down payment assistance grant – and also to increase the number of homes in the County that are eligible for this grant. Prospective first-time homebuyers can apply for a down payment assistance grant of up to $12,000 beginning May 1. Applicants must meet five key program guidelines for eligibility. First, they must live within the boundaries of the Suffolk County HOME Consortium (which includes all townships within the County except Babylon and Islip); the applicant must be a first-time homebuyer; must qualify as a moderate income family as defined by HUD, must occupy the home as a principal residence and may not have entered into a contract to purchase a home prior to May 1, 2005. "Home ownership is fast becoming an unattainable goal for so many families in Suffolk County, especially moderate income families," said Suffolk County Executive Steve Levy. "We are doing everything we can at the county level to assist families in this regard, from the Down Payment Assistance Program to our many workforce housing initiatives. The lack of affordable housing on Long Island is resulting in a migration of our young people away from their families and the region. This ‘brain drain' also negatively impacts our local economy as businesses find it harder and harder to recruit and keep a skilled workforce," Levy said. After taking office in 2004, Levy doubled the maximum down payment assistance grant from $6,000 to $12,000. He also lobbied the U.S. Department of Housing and Urban Development (HUD) to change the maximum appraised value for a home to be eligible from $279,000 to $380,000, recognizing the high cost of housing on Long Island. The $850,000 is available through the HOME Investment Partnership Funds provided by the U.S. Department of Housing and Urban Development (HUD) and is designed to assist eligible first-time homebuyers with up to 75% of a down payment with a maximum County contribution of $12,000. Since the County began participating in the program in 1993, more than $4.75 million has been distributed to 996 first-time homebuyers, and Levy noted that later this year Suffolk will give out it's 1,000th down payment assistance grant. "This represents nearly 1,000 families that would have almost certainly left the Island if not for this program," Levy stressed. Levy made the announcement about the program, which is administered through the County Executive's newly-formed Department of Economic Development and Workforce Housing, at a press conference in the Lake Ronkonkoma home of Robert and Bonnie Cunningham who were able to realize the American Dream last year with the help of a $12,000 grant from the County for the purchase of their $330,000 home. Robert Cunningham is a dispatcher for a Nassau County-based limousine company and Bonnie is a part time manicurist at a Smithtown salon. They have two children, Alyssa 13 and Allen 4. Prior to learning about the County's down payment assistance program, the Cunninghams lived for years in a crowded apartment and had contemplated leaving Long Island, their family and friends in search of a more affordable place to live. "If not for this, we'd probably be in Florida right now," said Bonnie Cunningham. "With this assistance we finally found a house and we were able to close a week before Christmas. It feels great, like we always dreamed it would. It's a place of our own that we can fix up, our kids each have their own bedroom and we have a backyard with a barbeque area. It's truly our home." Housing types available to be purchased under the program are single family residences that can be either pre-existing units or new construction, including condominiums but excluding co-operative apartments. The purchased home must be within the Suffolk HOME Consortium boundaries and cannot have an appraised market value in excess of $380,000. The grants under the program are considered deferred payment non-interest bearing loans. If the home is sold by the homebuyers within the first five years of purchase, the grant/loan must be repaid; if not, the loan is forgiven. Applications for the program may only be obtained by written request or by calling the Suffolk County Office of Community Development at (631) 853-5705. Requests for applications may be sent to the Office of Community Development at the H. Lee Dennison Building, 11th Floor, P.O. Box 6100, Veterans Memorial Highway, Hauppauge, NY 11788-0099. The program is run on a first come, first served basis where only the first 450 applications completed in full will be evaluated and certified for homebuyer participation. Family's earning 60% or below of the area median income are eligible for grants of up to $12,000 and families at or below 80% of the area median income are eligible for grants up to $9,000. For more information visit the Suffolk County website at: http://www.co.suffolk.ny.us
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