Programs aim to make it possible for more people to own homes

By Ameen Jebali
Special to the Irvington Herald

Homeownership is a cornerstone of the American Dream but it has become out of reach for many due to unprecedented housing affordability issues in Essex County and the state of New Jersey.

According to Rocket Homes, the average selling price of a home in Essex County currently stands at $562,574 –an increase of $22,563 compared to 2022.

Statistics from the U.S. Census Bureau the median household show that the income in Essex County stood at $67,826 as of 2021, as compared to $89,703 for the state average, and $69,021: the national average.

In the midst of the housing affordability crisis, local initiatives have emerged to pave the way for first-time homeowners.

There are established programs that have historically aimed to bridge the gap between aspiring homeowners and their dreams.

While these programs have some differences, they often share common goals of increasing homeownership rates, stabilizing neighborhoods, and promoting financial literacy.

Among the myriad of programs available in different cities of Essex County, including; Newark, Belleville and Irvington, is “The Homebuyer Assistance Program,” designed to provide funds for down payment and closing costs to income-eligible first-time homebuyers to finance the purchase of a home.

This program works with participating lenders in the delivery of down payment and closing costs assistance to eligible homebuyers.

According to Ashley Irizarry, administrator at the Essex County Homebuyer Assistance Program, The Division of Housing and Community Development will make a no interest deferred loan of up to $50,000 to low income homebuyers for a down payment and/or closing cost.

To access these benefits, there are a few conditions: attending educational programs such as homebuyers counseling sessions, at least a 3.5% contribution in the total sale price from their own funds and fixed limits on prices of different size homes.

Newark Mayor Ras Baraka has also championed programs to assist with first time homeownership.

On June 23, Baraka joined Neighborhood Assistance Corporation of America Founder and CEO Bruce Marks, and Vantem CEO Chris Anderson to kick off NACA’s five-day homebuyer Achieve the Dream event at the Robert Treat Hotel in Newark. The event included workshops and a variety of innovative, inclusive pathways to affordable homeownership.

One path offered by NACA is its” Best in America Mortgage,” which has no down payment, closing costs, or fees.

“With only about 24 percent of city residents owning their own homes right now, and corporations trying to purchase houses for rental investments, we need to provide Newarkers with affordable pathways to homeownership,” said Baraka.

On Sept. 13, Baraka shared a recent amendment to Newark’s Inclusionary Zoning Ordinance, which was initiated by the mayor and approved by the City Council. The amendment allows the city to exclusively offer new affordable housing units to Newark residents for a 90-day period, aimed at increasing the accessibility of affordable housing for local residents.

“This is a step forward in ensuring that families who have lived in Newark generation after generation, and others who share pride in City residency, can stay here,” said Baraka.

New Jersey Community Capital, is another nonprofit organization that provides financing and other support to help individuals, businesses, and neighborhoods build wealth, with a focus on traditionally underserved communities.

Using financial education, pre-purchase homeownership counseling and down payment assistance for eligible homebuyers, their “Address Yourself” home buyer down payment assistance program, focuses on creating affordable pathways for low-to-moderate-income individuals and families.

Bill Crawley, founder of Polaris American, a real estate developer in East Orange, leveraged a $500,000 line of credit from NJCCapital to purchase and revitalize two vacant properties for affordable housing in his childhood neighborhood.

Crawley said he appreciated the opportunity NJCC provided him to achieve his community-centered development project.

Agencies that can help

If you’re seeking assistance with mortgage down payment or looking for educational programs for first time homeowners, you can reach out to any of the organizations listed below:
www.nj.gov
www.nj.gov/dca/hmfa
www.essexcountynj.gov
www.nj.gov/dca
www.nj.gov/njhrc
www.habitat.org
www.dca.ga.gov

  Affordable Housing, Irvington