Lenox housing program moves forward as banks are approved

LENOX – The new homebuyer program in town is still moving forward and funds are available, while legal review holds up a full launch.

Last month the Affordable Housing Board and Trust approved a plan to develop a mortgage grant program that works with local banks to make buying a home more affordable for those with low to moderate incomes.

The loans will be run through local banks as part of the first-time homebuyer program and the mortgagee takes out the loan for the rest of the purchase price at four percent interest with no private mortgage insurance, to make the homes as affordable as possible.

Banks that wish to take part have to apply and are then awarded funding through a MassHousing package; this year Berkshire, Lee and Hoosic Banks have all been approved.

“The money is out and the program started last Monday,” said Jackie McNinch, Affordable Housing Board member and Lee Bank employee.

Each applicant, once approved by a participating bank, receives five percent of the cost of the home up to the maximum that each mortgagee can receive of $10,000 from the trust, and the next five percent of the purchase price would come through the bank from state funds.

According to committee members, there is one person interested in using the program in Lenox, but that interest is early and not near a purchase now.

Yet, before the town can begin to provide the grants, they are awaiting word from their representation at the town’s law firm, Koppleman and Paige.

The committee and Town Planner Mary Albertson have asked the firm to review the document to make sure it meets Fair Housing standards and to generate the town’s end of the paperwork.

As these last legal issues are worked out, board members have continued to express excitement over the new program.

“This program can really hit the housing gap we have,” said Kathleen McNulty-Vaughan, Affordable Housing Board member.

Yet, she agreed caution was needed to make sure the program runs smoothly.

“We need to make sure that we are set on Koppleman’s end, I agree,” said Mrs. McNulty-Vaughan.

Posted by Kameron Z. Spaulding on April 4, 2013. Filed under Community News,News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry