Down Payment Assistance Program in Gary Celebrates Initial Success with a Dozen Homebuyers
In the city of Gary, a city in Lake County, Indiana, Down Payment Assistance Program in Gary Celebrates Initial Success with a Dozen Homebuyers a down payment assistance program that took off earlier this year is already seeing noteworthy success, providing over a dozen homebuyers with financial relief in their journey to homeownership. Arlene Colvin, the city’s director of community development, shared the progress report with the Post-Tribune, noting the invaluable assistance that the program has been providing to the community.
In a unanimous decision last April, the Gary Common Council designated $2.05 million from the American Rescue Plan Act (ARPA) funds to support this initiative. The well-structured, three-tiered system offers varying degrees of assistance. First responders — encompassing police officers, firefighters, and emergency medical services personnel — can receive aid up to $30,000. Other city employees, including those working at the Gary Sanitary District and the Gary/Chicago International Airport, alongside veterans and teachers, are entitled to $18,000, independent of the home’s purchasing price.
General homebuyers in Gary are also supported through the program with a provision that affords them a 6% coverage on the purchase price, capped at $18,000. Kicked off in May, this initiative complements existing aid programs like the First Time Home Buyer venture funded by the U.S. Department of Housing and Urban Development’s HOME Investment Partnerships Program and another collaborative effort with the non-profit South Suburban Housing Center.
The ARPA-facilitated program has been praised for its expansive reach, allowing a more diverse group of prospective homebuyers to benefit, unlike the First Time Home Buyer initiative which had been relatively slow-moving due to its focus on lower income levels. One of the standout features of the ARPA initiative is the lack of income prerequisites for applicants from nearly all of Gary’s census tracts.
Colvin noted with satisfaction the broader impact the new program has achieved, providing a more inclusive aid and encouraging hopeful homeowners to take advantage of the assistance to offset increased housing prices. Since its inception, 16 individuals, including essential city personnel, have utilized the initiative, with a number of applications still underway. The program has fostered diversity, aiding not just existing residents but also welcoming newcomers from different locales.
Moreover, there has been a geographic diversity in the purchases, spreading across various neighborhoods with a significant number settling in the Westside and Glen Park areas. The initiative even facilitated the purchase of a brand new home in the Washington Manor Subdivision, a project helmed by the nonprofit Broadway Area Community Development Corporation situated in Gary’s midtown region.
Expressing optimism over the program’s unfolding journey, Colvin mentioned, “It seems to be working well,” harboring hopes that the initiative would sustain its momentum, continuing to offer much-needed assistance to the Gary residents. She outlined an ambitious goal to aid in the purchase of a minimum of 50 homes in the approaching years, a target well within reach given the substantial funding backing the program.
Colvin envisions a bright future, saying, “I think it depends on whether or not people are in the market for a home,” encouraging more individuals to explore the home market leveraging the assistance program to fulfill their homeownership dreams. It’s a golden opportunity for many to own a piece of Gary, forging a pathway to a more secure and vibrant community life.
