To: Rushern L. Baker III, County Executive, Thomas M. Himler, Deputy Chief Administrative Officer, Budget, Finance and Administration, and Rosalyn Clemens, Manager, NSP, My Home and RDA
Reinstate My Home I & II Down Payment Programs
The officials of Prince George’s County - without warning or opportunity for public comment – have terminated a very successful first time homebuyer down payment program known as My Home I and My Home II. Since 2009, My Home enabled nearly 1,300 low and moderate income people achieve the dream of homeownership. Many of them have never owned a home before. Now, county officials have turned their backs on this very important segment of the Prince George’s community by defunding the program. By promoting homeownership My Home helped to stabilize communities and served to establish family wealth in real estate. Now this lifeline no longer exists for deserving families that have been impacted by the recession and the rising cost of houses.
The Maryland Mortgage Program Triple Play has been offered as an alternative. But a careful examination of the two programs shows that they are not perfect substitutes. My Home offered from 20 to 60 thousand dollars in the form of a deferred loan throughout the county. The maximum Triple Play deferred loan is 10 thousand dollars. An additional 10 thousand dollar grant is only available in 14 zip codes hard hit by foreclosures. These are important differences given the rising cost of homes throughout Prince Georges County.
We the undersigned are important business and consumer stakeholders in the Prince George’s community. It is our position that careful consideration should be made to reinstate both My Home and My Home II Down Payment Assistance Programs.
The Maryland Mortgage Program Triple Play has been offered as an alternative. But a careful examination of the two programs shows that they are not perfect substitutes. My Home offered from 20 to 60 thousand dollars in the form of a deferred loan throughout the county. The maximum Triple Play deferred loan is 10 thousand dollars. An additional 10 thousand dollar grant is only available in 14 zip codes hard hit by foreclosures. These are important differences given the rising cost of homes throughout Prince Georges County.
We the undersigned are important business and consumer stakeholders in the Prince George’s community. It is our position that careful consideration should be made to reinstate both My Home and My Home II Down Payment Assistance Programs.
Why is this important?
The My Home Program made the dream of ownership a reality for many families. Without this program many low and moderate income families will not be able to afford suitable housing. The insensitivity of county officials towards the plight of homebuyers was demonstrated by the manner in which the program was cut without advance warning. Hundreds of ratified contracts were voided resulting in the loss of upfront monies that had been spent on inspections and appraisals. Transitioning to Triple Play was not an option as the dollar amount offered by that program could not qualify the borrower for the home specified in their contract. Typical among those affected were single parent mothers with large families. This is a concern worth immediate attention. Reinstating the program is the only way to preserve the hope of home ownership for many and to prevent the monetary cost cancelled contracts.