The City of Palm Springs' affordable housing opportunities come from numerous sources. These resources are distributed through the programs listed below:
Riverside County Mortgage Credit Certificate
The Mortgage Credit Certificate Program (MCC) is a federal program that helps first-time homebuyers to qualify for mortgage loans. MCCs give homebuyers a “dollar for dollar” tax credit against federal income taxes equal to up to fifteen percent (15%) of annual mortgage interest. By effectively reducing monthly mortgage payments, MCCs give homebuyers greater ability to qualify for and support a mortgage loan. Program participants are subject to limits on maximum household income and maximum home purchase price. Additionally, a certain Census Tract within the City qualifies as a Target Area, commonly known as the Warm Sands and Tahquitz River Estates Neighborhoods. If the home buyers’ tax liability is lower than their available MCC tax credit, they can carry forward the unused tax credit for three additional years.
Neighborhood Stabilization Program
The Neighborhood Stabilization Program (NSP) was funded through the federal Housing & Economic Recovery Act of 2008 (HERA) providing special appropriation of Community Development Block Grant (CDBG) funds through the U.S. Department of Housing & Urban Development (HUD). The City, as a CDBG Entitlement City, did not meet HUD's 'greatest needs' formula and its minimum $2 million dollar threshold requirements for a direct allocation.
However, the City was included in the State of California's direct allocation which the State's Housing & Community Development (HCD) announced that Palm Springs' allocation was nearly $550,000 and must meet HCD's minimum application threshold of $1 million individually or through a Joint Agreements. The City initiated contact with the four other eligible jurisdictions within Riverside County to attain the $1 million dollar threshold and capture those funds for each respective community. The bookend cities of the Valley, Coachella and Palm Springs, and Palm Desert joined cooperatively together, as well as Riverside County's willingness to accept being the lead agency. Otherwise, these funds would roll-up to the County and have to re-allocate those dollars to areas of County with the greatest need.
The City joined with Riverside County in offering a Neighborhood Stabilization Homeownership Program (NSHP). The primary objective is to address the problem of abandoned and foreclosed homes in a targeted area. The NSHP has an annual income that is not greater than 120% of the area median income as published by HUD, and is purchasing a foreclosed home in the County of Riverside. This Program will provide purchase price assistance as a silent second loan in the amount of twenty percent (20%) of the purchase price of the home. The purchase price assistance will be secured by a deed of trust recorded in second position. The first loan must be a fully amortized, fixed rate; thirty-year mortgage.
The MCC and NSP programs are operated in conjunction with the Riverside County Economic Development Agency (EDA) Housing Division. For more information about the MCC program, or to obtain a list of approved lenders, contact the EDA at 800.909.0078, 951.955.3281 or visit their website. June 2010 Program Amendment Public Notice
California Housing Finance Agency (CalHFA)
CalHFA has supported the needs of first-time homebuyers by providing financing and programs that create safe, decent and affordable housing opportunities for individuals within specified income ranges. For more information about the MCC program, or to obtain a list of participating lenders, contact the EDA at 310.342.1250 or visit their website.
The American Recovery and Reinvestment Act (ARRA) provided for the initial First-Time Homebuyer Credit Program on any home purchased as the taxpayer’s principal residence and located in the United States qualifies. The Worker, Homeownership and Business Assistance Act of 2009 extended and expanded the homebuyers tax credit. Under the new laws, qualifying taxpayers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers -- or anyone who hasn't owned a home in the last three years -- would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30, 2010. For more information on the ARRA’s Homebuyer Credit, please contact the U.S. Department of Treasury - Internal Revenue Service Palm Springs office at 760.866.6125 or visit their website. Military members and certain other federal employees serving outside the U.S. have an additional year to purchase until April 30, 2011 and close by June 30, 2011.
California Homebuyer's Tax Credit (AB 183) is for eligible taxpayers who purchase a qualified personal residence on and after May 1, 2010, and on or before December 31, 2010, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, will be able to take the allowed tax credit. The credit is equal to the lesser of five percent of the purchase price or $10,000, in equal installments over three consecutive years. Purchases will be required to live in the home for at least two years or forfeit the credit (or repay it to the state).
Homebuyer Assistance and Counseling is available through various organizations to individuals and families looking to purchase a home in Palm Springs, or for individuals and families who may have received a notice of default or a foreclosure notice. Click here for City of Palm Springs County of Riverside Foreclosure Risk Map.
Fair Housing Council of Riverside County, Inc. is a non profit agency that offers confidential counseling to help you review your current financial situation and develop a financial plan to meet your financial needs. The counseling session is designed to help you develop a monthly spending plan and discuss possible options that enable you to meet your mortgage obligations. A Counselor will also contact your lender to provide mediation services and help you apply for loan modifications and other workout programs. For more information on this program, please contact Fair Housing Council of Riverside County, Inc. at 951.682-6581 or visit their website.
Hope Now is an alliance between counselors, servicers, investors, and other mortgage market participants to prevent foreclosures by providing outreach, counseling, and assistance to homeowners. Counselors are trained to set up a plan of action designed just for you and your situation. Counselors provide in-depth debt management, credit counseling, and overall foreclosure counseling. For more information on the HOPE NOW program, please contact HOPE NOW at 888.995.HOPE (4673) or visit their website.
CA Bureau of Real Estate is a State department in charge of real estate broker licensing and consumer complaints with respect to real estate transactions. Offers license checks of mortgage brokers and lenders and a consumer complaint form. Also provides additional links for foreclosure prevention information and avoiding mortgage foreclosure scams.
Springboard Nonprofit Consumer Credit Managementis a non-profit community service agency that offers personal financial education and assistance with money, credit and debt management through confidential counseling. Springboard provides homeownership preservation and foreclosure prevention counseling. Springboard also provides pre-bankruptcy counseling and debtor education. For more information on Springboards programs, please contact Springboard at 800.449.0650.