Exciting News for Fresno Home Buyers: Mayor Unveils $100k Forgivable Loans Program
In a significant development for the city of Fresno, California, aspiring homebuyers will soon have access to loans of up to $100,000, thanks to a generous infusion of $4.1 million from the state government. The news of this mortgage assistance program was unveiled by Fresno Mayor Jerry Dyer during his annual State of the City address, which took place at the Fresno Convention Center Exhibit Hall. The announcement was met with resounding applause from the enthusiastic, packed crowd.
Mayor Dyer emphasized the pressing need for increased homeownership in Fresno, highlighting the fact that national homeownership rates stand at around 60% compared to 40% for renters. However, data from the U.S. Census Bureau’s 2021 American Community Survey indicates that homeownership rates nationwide actually exceed 65%. Sadly, Fresno lags behind, with a homeownership rate just above 50%. Mayor Dyer expressed concern over this disparity, emphasizing the substantial loss of home equity and personal wealth experienced by residents in the city. Recognizing the urgency of the situation, the state’s Permanent Local Housing Allocation has allocated funds totaling over $5.8 million to the city of Fresno.
The mortgage assistance program will enable these funds to be used toward the purchase price of a home or the required down payment. One remarkable feature of the program is that it does not require monthly payments towards the $100,000 loan. Furthermore, if the homeowner resides in the property for 15 years, the loan becomes forgivable. Mayor Dyer hailed this as an extraordinary opportunity for the citizens of Fresno to attain homeownership, recognizing the immense value it brings to individuals and the community as a whole.
To qualify for these loans, applicants must meet certain income criteria based on the “area median income.” The state estimates that the area median income for a four-person household in Fresno County is $80,300. Consequently, households seeking to participate in the city’s loan program must have an annual income at or below $64,240. These thresholds may vary depending on household size. Mayor Dyer acknowledged that not every loan would amount to $100,000 but expressed the potential to help numerous individuals—potentially 50, 60, or even 70 people in the city—realize their dream of homeownership. He further addressed the skyrocketing real estate prices and rising interest rates, asserting that this program is a crucial solution for many Fresno residents who have previously been denied the opportunity to own a home.
It is important to note that the program is exclusively designed for individuals who do not currently own a home. Mayor Dyer clarified that those who already possess homes have likely built equity, benefited from lower interest rates, and had the advantage of entering the market when housing costs were comparatively lower. Therefore, this financial support aims to assist individuals who have yet to own a home.
For those interested in learning more about the program, comprehensive details are available on the City of Fresno’s official website at www.fresno.gov/mayor/office-of-community-affairs/homebuyer-resources/. Additionally, individuals can contact the city’s Housing & Community Development division at 559-621-8300 for further information.
Mayor Dyer also emphasized the importance of expanding housing options in downtown Fresno to revitalize the district and ignite new vitality. He drew attention to the current scarcity of available apartments, with a six-month waiting list for prospective residents and vacancy rates approaching zero. Recognizing the urgency of the situation, he stated the pressing need for additional housing to meet the growing demand. Fortunately, several housing projects are already underway, including the redevelopment of the former JCPenney retail store building, which will provide 100 units, as well as the Helm Building with 99 units. Moreover, the recent acquisition of the Radisson Hotel presents a promising opportunity for further development and conversion into housing.
Sevak Khatchadourian, a prominent businessman and developer, who recently partnered to purchase the former Radisson Hotel, revealed that plans for the building are still being evaluated. While no definitive decisions have been made, Khatchadourian, the owner of the Helm Building and the Pacific Southwest Building, expressed interest in exploring options for housing, hotels, or long-term stay projects. He emphasized the need to thoroughly analyze various possibilities before reaching a final determination.
Excitingly, Fresno stands to receive $250 million from Governor Gavin Newsom’s proposed budget for downtown infrastructure development, pending approval by state legislators. Additionally, the city has submitted an application for an additional $44 million to fund modernized water and sewer lines, road improvements, and increased parking capacity in downtown Fresno. Mayor Dyer emphasized the vital importance of establishing necessary infrastructure such as water, sewer, roads, and parking facilities, without which the number of housing units available in downtown Fresno would be severely limited. He highlighted the state grants as a transformative boost for Fresno’s downtown nightlife and expressed the need to rally support to ensure the successful completion of these projects.
