ADDI program helps sell homes in the City

The City of Cincinnati American Dream Downpayment Initiative (ADDI) has helped 134 people buy homes in the City since its creation in 2004 and has resulted in over $5.7 million in private investment this year alone.

The grant, which comes from the U.S. Department of Housing and Development (HUD) and is administered by the City's Department of Community Development and Planning, is designed to be used by first-time homebuyers with limited income with down payments and closing costs.

So far this year, 62 property sales have closed from awards totalling $381,554, an average of $6,154 per sale.

Westwood has been the biggest beneficiary with 14 homes purchased and a total return on investment of $1.3 million.*

Twenty-nine sales were closed in 2005 and 43 closed in 2006.

To be eligible, an applicant for the ADDI must meet the following requirements:

* The applicant must attend and complete a HUD-approved homebuyer counseling program.
* Loans must be deemed affordable based upon family income and expenses.
* The home must not exceed 95% of mandated Federal Housing Administration limits for single-family homes and must pass a code inspection.
* The applicant must agree to maintain the home as his primary residence for a minimum of five years, or the grant can be revoked. This is secured by a second mortgage and promissory note in favor of the City.

Grants are awarded on a sliding scale. Those between 66 and 80 percent of the Area Median Income (AMI) are eligible to receive 6 percent of the purchase price of an eligible house. Those with an AMI between 50 and 65 percent are eligible for 6.5 percent of the purchase price, and those with lower incomes are eligible for 7 percent. Grants are capped at $8,500.

On December 5, City Council voted to increase funding for the ADDI program by transferring $250,000 from HOME project accounts for the Homeowner Infill and Rehab and the Rental Rehab programs.

This money will be used to provide down payment assistance to the 50 applicants who have been pre-approved for the program. Fifteen of those applicants have purchase contracts for homes.

None of the homes purchased with the assistance of the ADDI has been foreclosed since the beginning of the program.

* Westwood 14, College Hill 9, West Price Hill 5, East Price Hill 5, Mount Airy 4, Evanston 4, Mount Washington 3, Kennedy Heights 2, Roselawn 2, Spring Grove Village 2, Walnut Hills 1, Oakley 1, Bond Hill 1, North Avondale 1, Avondale 1, Madisonville 1, Mount Auburn 1, South Cumminsville 1, Corryville 1, Hartwell 1, Northside 1, Carthage 1