Inside the plans to expand Polk County's down payment assistance program
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Polk County Down Payment Assistance administrators want to expand the program after it was exhausted within weeks due to demand.
Why it matters: The expansion could help address housing bias, Neighborhood Finance Corporation (NFC) director Stephanie Murphy tells Axios, given that the program's inaugural recipients were disproportionately people of color.
Catch up quick: Polk County Supervisors allocated $5 million from federal pandemic allocations to launch the program through NFC, a local lending group focused on neighborhood revitalization.
- Low-income families are eligible to receive $30,000 no-interest, deferred loans through the program that began early last year.
Driving the news: NFC is seeking additional money to reopen it to new applicants, including from federal grants.
Zoom in: Of 150 families who have closed on loans, at least 66 — or 44% — were families of color.
- There were 72 white recipients and 12 that declined to identify their race or ethnicity.
- Loans for another 13 families are expected to be completed in the coming months.
Context: According to the U.S. Census Bureau's 2022 five-year estimates, around 80% of Polk County's population identified as white.
What they're saying: Most of the families would not have become homeowners without the assistance.
- In many cases, the loans allow them to avoid paying for private mortgage insurance, which can cost $100 or more monthly, Murphy says.
What's next: NFC will present these results to supervisors on Sept. 25.
- The group would like annual contributions to the program from local governments but realizes that the county may not have space in the budget, Murphy says.