City's First-Time Homebuyer Program Aims to Repopulate Foreclosures



When the bottom fell out of the housing market, many of Suisun City's streets gained a new nuisance: the neighborhood foreclosure.

When empty houses' yards became unkempt, banks did little upkeep on them, leaving the city's code enforcement team overburdened with tasks, according to Mayor Pete Sanchez.

The city leaned on its redevelopment status in late 2008 to launch the First-Time Homebuyers Assistance Program, focused on turning as many foreclosures as the city could into homes lived in by people who may have previously been priced out of the housing market.

So far the city helped close escrow on 30 properties with $1.4 million in loan assistance, but has either turned away or left nonplussed roughly 420 parties who were interested in the program. Meanwhile, the housing crisis has continued. According to city real estate figures, as of Monday there were 391 residential properties in the city that were in some stage of foreclosure.

Program Manager Vivien Chua Togonon said the city offers down payment assistance of up to 25 percent of the purchase price of the home for any foreclosed, bank-owned or short sale property, which includes closing costs. However, there are qualifications prospective buyers must meet. First, the buyers must be able to provide at least 3 percent of the down payment on their own.

More limiting, they must also meet income eligibility requirements set by the federal Housing and Urban Development agency that can change from year to year. For example, according to the city's website a two-person household must make a maximum of $76,050 at the time of purchase and a three-person household is limited at $85,550 at the time of purchase.

Togonon said most areas of the city are covered under the program, except Peterson Ranch and an area of new homes near Railroad Avenue. Those homes lie outside the redevelopment area.

A group of homes the city obtained money to go in and renovate come with 35 percent purchase price assistance from the city for qualified buyers. However, those homes are generally more expensive than typical foreclosures.

Still, Sanchez expressed frustration with the program's limiting requirements, and the position the economy has placed many people in.

"A lot of people are interested in jumping in, but they cannot qualify for the program," he said. "Even when people are able to get in…they simply cannot afford to pay the monthly (mortgage) payment."

Meanwhile, Togonon said the city has enough money left for roughly 40 more loans to assist potential buyers.

For more information on the program, click here.