Page 12-The Portland Observer April 17, 1991
Seven Reclaimed Portland Homes Available
For Ownership At PDC’S Homestead Open House
Seven homes in Portland neigh­
borhoods will be offered to lower-in­
come residents at the upcoming Home­
stead Open House on Sunday, May 5,
1991, from 1:00 to 4:00 p.m. The Port­
land Development Commission (PDC)
administers the Portland and Urban
Homestead Programs, which provide
home ownership opportunities to those
who other wise might not be able to
afford their own home. The programs
provide a significant tool to help the
city reclaim vacant and abandoned
housing, while encouraging neighbor­
hood revitalization and stability.
Through the homestead Programs,
PDC acquires vacant homes in need of
repair and transfers them to qualified
Homesteaders. In turn. Homesteaders
agree to make necessary repairs before
moving in, accept a low-interest PDC
home repair loan and live in the house
for a minimum number of years. There
is no down payment involved in be­
coming a Homesteader. Homesteaders
pay a one-time charge for taxes and in­
surance of $500. Monthly payments on
the home repair and acquisition loans
average $350, including taxes and in­
surance.
The Portland and Urban Home­
stead programs are almost identical.
One of the differences is the residency
requirement which is five years under
the Urban Homestead Program and three
years under the Portland Program.
Each of the seven homes to be
offered May 5 will be open between
1:00 and 4:00 p.m. Potential Home­
steaders must visit each home in which
they are interested to be considered for
ownership. PDC will hold a random
drawing for each home and will notify
those whose names are selected. PDC
advisors will be at each home and will
notify those whose names are selected.
PDC advisors will be at each home io
answer questions during the open house.
The addresses of the homes being of­
fered are:
* 716 N. Webster, 2 bedroom
* 3921 N. Borthwick, 2 bedroom
* 4135 N. Mallory, 2 bedroom*
* 8515 N. Curtis, 2 bedroom
* 4538 N.E. 6th, 3 bedroom
*4911 N.E. lllh , 2 bedroom*
* 1433 N.E. Portland Blvd.,
*Urban Homestead homes requir­
ing residency of five years
Individuals interested in being added
to the mailing list for Homestead Pro­
gram offerings should call PDC’s
eastside Office at 823-3422 between
8:00 and 5:00 p.m., Monday through
Friday.
Portland Development Commis­
sion is the City’s agency for urban
renewal, housing, and economic devel­
opment.
Billions Available For Home Repair
Grants And Subsidized Loans
Most homeowners are unaware that
regardless of their income there are
Federal, state and local programs that
will help them repair and remodel their
homes.
Government at all levels recognizes
that neighborhoods are the basis of life
in our country. When a neighborhood
deteriorates, many things happen both
physically and socially. Homes that are
shabby seem to make a neighborhood
more attractive to crime and criminals.
An area in decline is like a spreading
cancer. As homes become rundown and
in need of maintenance, the residents
lose their desire to keep up the neigh­
borhood. Streets become receptacles for
trash, schools lower their standards and
very quickly the selling price o f homes
in the area drops sharply. This acceler­
ates the cycle o f degeneration.
In order to keep and maintain the
nation’s housing and neighborhoods,
government at all levels have programs
to give homeowners money (that does
not have to be repaid) for repairs or to
lend them money at below market lev­
els or at no interest. In many areas
utility companies will do energy con­
servation work free or at low cost and in
other places will lend homeowners money
at no interest to Dav the contractor of
their choice for the necessary work. In
addition there are tax incentives to pro­
mote efficient energy use.
These programs are not restricted
to low-income people, slum areas or
urban neighborhoods. Owners of single
or multi-family dwellings are eligible
for some programs regardless of income.
Most of the loans offer long terms and
low payments.
Some of the other home improve­
ments covered under these programs
are: attic and wall insulation, new win­
dows, outerwall siding, security doors
and locks, window guards, sidewalks
and masonry work, bathrooms an kitch­
ens, electrical and plumbing work, new
roofs, gutters or down spouts.
Consumer Education Research
Center, a national non-profit consumer
group, had just published CONSUMER
GUIDE TO HOME REPAIR GRANTS
AND SUBSIDIZED LOANS, a 208-
pagebook which lists over 8,500 sources
of loan and grant programs offered by
all levels o f government, utility compa­
nies and others, typical programs of­
fered and eligibility requirements. Form
letters for inquiries to these loan and
grant sources are included as well as
detailed instructions on determining your
debt-to-income ratio for elieibilitv. The
book can be obtained for $ 10.95 plus $2
shipping and handling from CERC
GRANTS, 350 Scotland Road, Orange,
NJ 07050 or by calling 1-800-USA-
0121 for credit card order.
Robert L. Berko o f CERC, tells us,
“ Some of these programs have no in­
come ceiling and others allow income
of as much as $ 100,000 per year. There
are even programs for which tenants are
eligible and many allow loans or give
grants to poor credit risks. One of the
authors of this book received a $5,000
N.J. grant plus a $4,000 interest free
loan from his utility company. In many
areas, people with disabilities can re­
ceive grants to pay for needed repairs
such as access ramps and widening of
doorways.”
Since it is important that the work
be done properly, the book describes in
detail how to pick a reputable contrac­
tor, negotiate a contract and insure that
work is done properly and for a fair
price.
For more information about CON­
SUMERS GUIDE TO HOME REPAIR
GRANTS AND SUBSIDIZED LOANS
Contact Robert L. Berko, CERC,
350 Scotland Road, Orange, N.J. 07050
(201) 676-6663 or outside N.J. 800-
872-0121.
First Interstate Bank's Community Lending Center
Making the dream of 1
home ownership reality. r
’ hether you're just dreaming
house. When you're ready to buy,
of owning a home or you're we'll help you find the loan that
ready to buy, First Interstate Bank's
best meets your needs. And we'll
Community Lending Center is
continue to offer support and
here to help.
education even after your home
At the Community Lending
loan closes.
Center, we place a special emphasis
So if you're dreaming of buying
on first-time home buyers and the a home, come to the Community
Lending Center. Where we'll help
programs available to them. And
we offer a step-by-step approach
you make your dream reality.
to home ownership.
First, we'll help you evaluate
Community Lending Center
your personal finances and counsel 5730 NE M artin Luther King Jr. Blvd.
Portland, Oregon 97211 • 225-3751
you on how to prepare to buy a
W
% 4
Real Estate Today Examines
Assumability Of FHA Mortgages
are fully assumable without qualifica­
tion by owner-occupants or investors.
Although sellers in this category tech­
nically remain liable for loan repay­
ment after the loans are assumed, HUD
as yet has not taken action against sell­
ers in the event of loan default by the
assumer.
For the time period between Dec.
1, 1986 and Dec. 14. 1989, assumer
qualification is required if the loan being
assumed was initially originated for an
investor within the previous 24 months.
Under this requirement buyer qualifi­
cation expires Dec. 14, 1991. Buyer
qualification for loans initially origi­
nated for owner-occupants is no longer
required. It expired on Dec. 14, 1990.
In cases involving assumptions by
non-owner-occupants, a minimum
amount of equity, usually in the form of
a down payment, is required to release
the seller from liability for the loan. For
investor assumptions dated before Feb.
5, 1988, equity totaling 15 percent is
required. For those dated on or after
Feb. 5, 1988, 25 percent equity is
required. If the property will be used as
a secondary residence rather than for
investment purposes, assumers must
have 15 percent equity in the property.
One way for sellers to be released
from loan liability is to obtain an agree­
ment from the buyer for novation, which
involves the buyer taking over sole ob­
ligation for repayment of the debt, the
article notes. Sellers in the December
1986-December 1989, are limited to
owner occupants who are qualified; no
investor assumptions are permitted.
Unless the buyer agrees to novate, the
seller shares loan liability with the buyer
for the life of the loan.
In situation involving loans dated
before buyer qualifications became a
requirement, the seller should attempt
to have the buyer qualified anyway, the
article notes. If the buyer does not or
Changes in the assumability of
single-family mortgages insured by the
Federal Housing Administration (FHA)
must be understood by both sellers and
buyers, to avoid unwelcome surprises
before a home sale is closed, according
to an article in the March issue of Real
Estate Today, published by the Na­
tional Association of Realtors.
The U.S. Department of Housing
and Urban Development (HUD), which
operates FHA, has made assumability
very complex, according to “ FHA As­
sumptions: Unraveling the Rules.”
Through 1986, assumption of FHA-
insured loans was relatively hassle-free,
leaving sellers with virtually no further
obligations for the loans they were
passing on , and requiring no qualifica­
tion for the buyers assuming them. How­
ever, since then, HUD has tightened
the assumption process, including lia­
bility for sellers and credit scrutiny for
assumeser.
“ The rules have caused confusion
and consternation,” says John R. Krause,
author of the article. A thorough under­
standing of the changes is just as im­
portant for sellers as it is for the people
who will be assuming the sellers’ FHA
mortgages, he notes. Although is is
harder to assume FHA-insured loans
now than in years past, assumability
can be an attractive feature, since most
conventional loans are not assumable.
HUD divides its treatment of FHA
assumptions into three categories sepa­
rated by different factors-loans closed
before Dec. 1, 1986, loans closed be­
tween that date and Dec. 14,1989 (this
group contains two subgroups, one
containing loans with property apprais­
als before Feb. 5,1988 and, loans origi­
nated on or after Dec. 15, 1989, for
which either a property appraisal or a
conditional HUD commitment has been
made.
Loans closed before D ec.l, 1986
will not qualify, the seller may still
pcrmit.it the assumption to take place,
but should consider action to cut his
risk of liability, the article says. One
way is for the seller to loan the buyer
part of the purchase price (called a
seller ’ ‘carryback” ). Payments on both
the carryback and the loan assumed by
the buyer should be made at the same
time. The key to a carryback is a provi­
sion stating that if the buyer defaults on
the assumed mortgage, he would also
be considered in default on the carry­
back. “ The carryback, structured in
this manner, enables sellers to know as
soon as the FHA loan is in default and
to initiate prompt action to maintain
control,” Krause says.
If buyer qualification does not occur
and a carry back is not offered, the
seller may elect to examine the buyer’s
credit before the assumption takes place.
However, credit reports may be dated
or incomplete, omitting such informa­
tion as previous seller-financed mort­
gages or utility payments. It is wise for
the sellers to have the buyers fill out a
formal credit application, thus initiat­
ing a credit update by the reporting
agency, the article notes.
Like FHA, the Department of
Veterans Affairs has also changed the
assumability of home loans it guaran­
tees, the article notes. DVA requires
qualifications for assumers of loans
originated on or after March 1, 1988.
No qualification is required for those
assuming mortgages originated before
that date.
Real Estate Today is published
monthly, except in February and De­
cember.
The National Association of Real­
tors, the nation’s largest grade
association's the voice for real estate,
representing more than 800,000 mem­
bers Involved in all aspects of the real
estate industry.
City Of Portland Energy Office AndPacific Power
Team Up to WeatherizeNortn Portland Apartment Complex
bates, loans and tax cred­
its, available to owners
from utilities,local banks
and the S tate of Oregon.
The new “ Low
Income Weatherization
Rebate” program, offers
property owners up to
$1,000 for each low
income apartment unit
they fully weatherize. An
additional cash rebate of
28.87% is offered by
Pacific Power as a pass­
through of the State of
Oregon’s Business En­
ergy Tax Credit. The fi­
nancial incentives will
save Pacific Renaissance
Inc., up to 68% of its
weatherization costs.
The weatherization
work at Colonial Park
will include replacing 44
old single pane windows
with energy efficient in­
sulated windows, insu­
lating the attics, walls
and floors, and wrapping
the hot and cold water
pipes.
Tenants of the newly renovated
Colonial Park will be the ultimate bene­
ficiaries with affordable apartments
which are comfortable and energy effi­
cient.
The Portland Development Com­
mission is participating in the project
by offering a $120,000 Investor Reha­
bilitation Loan. The 3% loan will pay
A new cash rebate for weatheriza­
tion offered through the City of Port­
land Energy Office by Pacific Power is
making it possible for the City to assist
in extensive weatherization of a North
Portland apartment complex. Long
known for its drug and crime related
problems, the apartment complex once
called Kerby and Borthwick Square, at
4061-69 N. Kerby and 4004-68 N.
Borthwick has new owners, a new name;
Colonial Park Apartments, and new
hope.
Pacific Renaissance Inc., began
work last month to rehabilitate and
weatherize its newly acquired 48 unit,
colonial style apartment complex. “ I’m
excited that the energy Office is work­
ing in partnership with Pacific Power to
make a significant impact on the revit-
ilization of our north and northeast
Portland neighborhoods” , says Mike
Lindberg, Commissioner-in-Charge of
the Portland Energy Office. In March,
1987 the City’s Bureau of Buildings
boarded up the complex on recommen­
dation from police and fire authorities.
Half the units are now occupied and the
others still vacant with boards over the
windows and doors.
The new owners do not hesitate to
say it’s financial incentives offered by
Pacific Power, through the Portland
Energy Office, that are making the ex­
tensive weatherization of Colonial Park
possible. The Portland Energy Office
offers comprehensive weatherization
assistance to owners of multi-family
buildings. Assistance includes consul­
tation on financial incentives: cash re­
$1000CASH BACK
q 7 ± V
V
V
PER APARTMEM I M l
ftl J
" 1
Weatherize, increase resale values and save money doing it!
The Portland Energy O ffic e and Pacific Pow er
A L ig h t
have a new w eatherization rebate program
fo r apartment owners w uh low income tenants Rebates fo r installing storm windows, insulation,
caulking and other energy saving measures can esceed $10 0 0 p er u n it.
For more inform ation on
the L o w Incom e W eatherization Program or other apartmem weatherization rebate programs, call
M a n s W o o d in the Energy O ffice. 7 96-7035.
for a portion of the $270,000 rehabilita­
tion package and will be matched with
private funding. Rehabilitation plans
include a new roof and gutters, new
interior and exterior paint, new doors,
installation of new healing and electri­
cal systems, interior improvements such
as carpet and tile, and removal of aban­
doned oil tanks, along with landscap­
ing and security lighting.
Helping Oregonians
Stay Warm
Customer and employee donations
to Portland General Electric.’s (PGE)
1990-91 Project HELP campaign are
up 10 percent over last year.
As of March 15, some 12,393
employees and customers have con­
tributed $284,098 to Project HELP, an
emergency fuel assistance fund created
in 1982 to help needy families pay their
winter fuel bills. PGE shareholders con­
tributed an additional $40,000 to kick
off the campaign in November.
So far this year. Project HFJ.P has
helped some 1,953 low-income fami­
lies stay warm. Last year, the fund
assisted 3,037 Oregonians. Project HELP
funds arc available to qualifying cus­
tomers regardless of fuel source. Pay­
ments are made directly to the cus­
tomer’s fuel supplier.
Anyone wishing to contribute to
the fund can send their tax deductible
contribution directly to The Salvation
Army.P.O. Box 5080, Portland,97208.
Contact: Roxanne Bailey, Public
Information Representative 464-8466.