Page 33 - Indulge December/January 2016

“The money Hanna and other
Photo by Sarah Evans & Brynne Camburn
loan becomes a grant. Those who
move earlier must pay back the
money, but on a pro-rated basis.
He says two employers adjusted
the program to include rentals.
Mitch Hanna, events and
marketing manager for the City
Center Lehigh Valley investment
group, bought his first home
through the program.
“I found one in the Old Allentown
area; it had historic charm,
manageable size, is located in a
strong neighborhood and is within
walking distance to work, bars and
restaurants, and all other amenities
in downtown area,” he says. The
money Hanna and other participants
received can be used for a down
payment, closing costs or renovations.
Bernhard says a separate program
offers facade improvement grants,
which can be used for exterior repairs. Realtors and banks that it partners
That fits in with the overall program’s with, participants aren’t required
theme: Add economic diversity to
areas that, largely, are low-wage,
participants received can be used
for a down payment, closing costs
or renovations.”
with the idea that
people who are
invested in their
properties will be
more likely to stay on top of
upkeep and beautification.
The initiative includes a home
ownership counseling program, which
typically covers topics including
finding, financing, negotiating for
and maintaining a residence. Part
of the program, Bernhard says,
helps to align homebuyers with
the most appropriate financial
institution for their situation.
“We have three participant banks
that have agreed to facilitate these homebuyers, he explained, but
loans.” That includes helping to
reduce closing costs and being
more liberal with issues such as
loan-to-value ratio, he says.
Although the initiative has
to use a particular company.
While there’s no overall
limit on how many homebuyers DECEMBER/JANUARY 2016 • INDULGE | 33
can participate in the program,
individual companies can set
restrictions. “Some don’t have a
cap,” Bernhard says, “some have
said there’s a limit — for instance,
10 [participants] in a year.”
He says there’s no cap on income
level, making the program attractive
to CEOs and entry-level workers
alike. It’s also not likely to go away
soon: “There’s been no contemplation
yet about disbanding the program
at any given time,” Bernhard says.
The program is a win not
just for the city and eligible
participating employers, too.
Businesses that donate funds
for façade improvements are
eligible for an 80 percent tax
credit on their contribution.