The Oregonian reports today about the funds our area has received from the Neighborhood Stabilization Program. Through the program managed by the Portland Development Commission, eligible buyers in eligible neighborhoods can by eligible houses by making use of a $50,000 interest free second loan. The map below is from the PDC Website and is a graphic- their interactive map should be the definitive authority.
The Oregonian article by James Mayer cites estimates that 20 to 25 buyers may benefit from the program. The home must be bank owned (foreclosured), in the areas the designated by the program, and cost less than $266,000 and at least 1% under appraised value. Buyers are limited to an income limitation of $84,000: 120% of the median income for Multnomah County.
The program looks to be very much like the first iteration of the $7500 First Time Buyer Credit of 2008. The money must be repaid when the house is sold or changes hands. It is a loan, not a credit like the current $8000 First Time Buyer Credit which expires on December 1st if Congress does not act. An accountant would need to verify the elibility of a buyer using both the First Time Buyer Credit in conjunction with the PDC funds. Also note that the PDC website on the Own Your Own Loan program has some additional requirements and some that are different than those cited in the O’s article.