City to provide assistance for first-time homebuyers

In 2016, the City of Columbia will begin a new down payment assistance program for those looking to buy a home in specific areas of the city.

“Often a mortgage, especially with the rental climate, can be cheaper than a rental agreement,” said Michael Trapp, 2nd Ward Councilman. “So even if folks are struggling with their rent, they may be able to buy a nice home in the central city and be able to have less of a monthly bill than they do now.”

The program is a part of the city’s 2016-2019 strategic plan, which will focus on three areas of Columbia that have lacked public and private investment over a period of time. City officials have identified those areas of focus as the central, north and east parts of Columbia.

The city has set aside $100,000 in it’s budget to help fund the program.

First-time homebuyers may qualify for 10 percent of the home’s sale price or up to $10,000. They must meet certain income eligibility, the homes must be in the strategic plan areas of focus and owners must keep up certain property maintenance standards.

Randy Cole, Housing Programs Supervisor, said homeownership helps bring stability to struggling neighborhoods.

“People stay in their homes longer and people are more invested in their neighborhood,” he said. “Also it’s a great tool for low to moderate income families to build some wealth. They can move from being a renter to a owner, then start building equity and wealth as a household.”

According to the 2010 U.S. Census Bureau, 64.4 percent of properties in central Columbia were rentals; 49.3 percent in east Columbia; and 38.5% in north Columbia.

“If you live in a rental property than there’s no incentive for you to improve that property, because you’re just there for some period of time and you’re not going to be able to generate equity or value by investing in that home,” Trapp said.

The program is an expansion of the existing Homeownership Assistance Program that has been in place for the past several years. It provided a down payment of 7.5% of the home’s purchase price or up to $7,500.

The down payment assistance program begins January 1, 2016. Click here for more information and enrollment directions.