HOP has been designed to meet the needs of low-income families and individuals who want to purchase a new home, but are unable to qualify without financial assistance. This program will provide a secondary mortgage for the purchase of a single-family home or condominium. The secondary mortgage is a loan, with all payments deferred until sale, transfer, or refinancing. The Agency will share in a percentage of the equity accumulated on the property, depending upon the circumstances that exist at the time of subsequent sale, transfer, or refinancing, and federal requirements. Applicants are required to use all liquid and convertible assets for down payment and estimated closing costs except the amount totaling six months housing costs and an emergency allowance of $5000.

HOP funds are available on a first-come, first-serve basis, until all annual funds are used.

To read more about the Homeownership Opportunity Program, please go to: http://www3.lacdc.org/CDCWebsite/HDP/ProgramInfo.aspx?ID=59

Similar to the HOP program, the Community Development Commission also provides first-time homebuyer assistance to help low-income families and individuals purchase newly constructed homes that were partially financed with CDC development funding. Check this website for listings of AHOP properties that may be available.

1. The Applicant may not have held an ownership interest in a Principal Residence within the past three years;
2. The Applicant must occupy the acquired housing as a "Principal Residence"; and
3. Applicant must attain homeownership counseling and education from an agency accredited and certified by the U.S. Department of Housing and Urban Development or National Reinvestment Corporation. All who will be named on title must attend this training and each person must present a certificate.
4. Maximum Annual Income Limits:

The MCC Program offers the first-time homebuyer a federal income tax credit. This tax credit reduces the federal taxes the holder of the certificate pays. It can also help the first-time homebuyer qualify for a loan by allowing a lender to reduce the housing expense ratio by tax savings.

The qualified homebuyer who is awarded an MCC may take an annual credit against their federal income taxes paid on the homebuyer's mortgage. The credit is subtracted dollar-for-dollar from his or her federal income taxes. The qualified buyer is awarded a tax credit of up to 15% with the remaining 85% taken as a deduction from the income in the usual manner.

To read more about the Mortgage Certificate Program, please go to:

http://www3.lacdc.org/CDCWebsite/HDP/ProgramInfo.aspx?ID=8

The primary goal of the RSIP is to reduce or eliminate aircraft noise by sound insulating homes of eligible residents located within the high noise areas. Eligible communities include portions of the unincorporated areas of Lennox and Athens that are within the 65 dB CNEL noise contour (CNEL means Community Noise Equivalency Level). 65 dB CNEL is the threshold above which land is not considered to be acceptable for residential use unless the dwellings incorporate sound insulation.

There is no cost to the property owner for any of the noise insulation improvements. Types of improvements include the installation of sound rated windows and doors, attic insulation, wall modifications, electrical service panel upgrades and heating, and ventilation and air conditioning systems.

To read more about the Residential Sound Insulation Program, please go to: http://www3.lacdc.org/CDCWebsite/HDP/ProgramInfo.aspx?ID=805

Program Highlights:

• HERO loan is available to first-time homebuyers (borrowers) with no ownership interest in or who have not held "title" to a principal residence during the three year period preceding the purchase of the property;
• Only foreclosed or abandoned properties are eligible;
• Eligible properties are single-family foreclosed or abandoned homes with a maximum purchase price of $493,000, and attached or detached foreclosed or abandoned condominium/townhomes with a maximum purchase price of $394,240;
• Eligible locations are located within HERO Census tracts only;
• Properties must be purchased at a discount of 1% from the current market appraised value;
• Second Trust Deed Financing for families with up to 80% County Median Income will receive $75,000 or 25% of the purchase price, whichever is the least; families with up to 120% County Median Income will receive $50,000 or 25% of the purchase price, whichever is the least;
• Down Payment Assistance provides down payment and/or closing costs assistance to low-, moderate-, and middle-income households for foreclosed, vacant or abandoned homes. The maximum down payment assistance is 6% or $10,000 of the purchase price, whichever is less;
• Grants of up to $25,000 are available to address code violations only;
• All properties built prior to 1978 are required to have a visual and lead-based paint inspection and must pass the inspection prior to loan approval;
• Community Development Commission will share equity participation for the first five years; and
• Mortgage Credit Certificate and Mortgage Revenue Bond programs may be available with HERO.

1. Borrower must invest a minimum of 1% of the downpayment, not including closing costs;
2. Borrower must complete an 8-hour education homeownership course from an approved U.S. Department of Housing and Urban Development (HUD) counseling agency;

 HERO Frequently Asked Questions

The ISRP has been designed to provide financial assistance for acquisition and rehabilitation of foreclosed residences for affordable rental housing to low-income persons. Two qualified nonprofits were selected through an RFP and are eligible to apply for secured loans to finance the acquisition, rehabilitation and related project costs of a foreclosed property. The properties will be located within approved census tract areas of Hawaiian Gardens and must be a 1-4 unit property. Developers must agree to operate the housing at affordable rents for a period of 55-years.

All loans have a 55-year term with no interest, and will be secured by a Deed of Trust that is first in priority. All repayments to the Commission are deferred until sale, transfer, refinancing or full repayment of the first mortgage. Available residual receipts will be divided equally between the Commission and the Developer.

• Financing to acquire or acquire and rehabilitate properties;
• Only foreclosed properties are eligible;
• Eligible properties must be 1 - 4 unit properties;
• Eligible properties must be located within ISRP Census Tract only areas;
• Properties must be purchased, at minimum, 1% below the current market appraised value;
• Properties must be rented to households with 50% Area Median Income; and
• All properties built prior to 1978 are required to have a visual and lead-based paint inspection and must pass the inspection prior to loan approval.