Watsonville Considers Reinstating Down Payment Assistance Program

From Watsonville City Council: The Watsonville City Council will consider reinstating the City’s Down Payment Assistance Program at their regular meeting on January 13, 2017. The City offered a similar program using Redevelopment Agency funding, however the program was suspended when the Redevelopment Agency was dissolved in 2012. The program proposes to provide up to $60,000 for qualified low to above moderate income applicants to use toward the purchase of a home in the City.

Reinstatement of the City’s Down Payment Assistance Program will provide an alternative for low to above moderate income applicants to access funding to help purchase homes in Watsonville. The funds can be used for the purchase of affordable and market-rate units within the City. The program will be funded through the City’s Inclusionary Housing Fund, which has a current balance of approximately $1.6 million.

“Due to the constraints on HOME and CalHome funds, it has become more difficult for applicants to qualify for loans. Reinstatement of the Down Payment Assistance Fund will provide funding for those homebuyers that make too much money to be eligible for state and federal Down Payment assistance programs, but not enough money to be able to afford the high home prices in Watsonville,” explains Suzi Merriam, Acting Community Development Director, the department responsible for administering housing programs for the City.

The first round of funding for the program is $250,000 until June 30, 2017. The City will consider the appropriate amount to be budgeted for the 2017-2018 Fiscal Year after initial rollout.

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