Neighborhood Stabilization Program Makes 2009 the Year to Buy a Home

KANSAS CITY, MO -- Congress created a tremendous opportunity for homeownership when it passed the Neighborhood Stabilization Program in October of 2008. Kansas City Missouri received $7.3 million to help sustain neighborhoods in Kansas City.

Neighborhood Housing Services of Kansas City Inc., in partnership with other Kansas City Community Development Corporations (CDC’s) and not-for-profit organizations is working with the City of Kansas City, Missouri to acquire, rehabilitate and resell bank owned properties. These homes will be sold to pre-approved buyers.

“The truly innovative aspect of the program is that the pre-approved buyer will be able to select the bank-owned property to be rehabilitated. The buyer will be able to work with the CDC to select colors, floor coverings etc. All homes will receive Energy Star certification to ensure lower energy costs. We will also be able to modify a home to make it more accessible. This is a truly tremendous opportunity for anyone who has been waiting for the right time to buy”, said Mark Stalsworth, President/CEO of Neighborhood Housing Services. “Interest rates are at an all time low and first time buyers will be eligible to receive a tax credit of up to $8,000 when they file their 2009 tax return.”

All homes must be located within the HUD designated target areas, which are generally located in the 2nd, 3rd, 4th, 5th and 6th City Council Districts.

These homes will be offered for sale to households earning up to 120% of Area Median Income ($70,375 for a four person household). Down payment and closing cost assistance will be available for households purchasing these homes. For households earning less than 80% of area median income based on household size ($56,300 for a family of four), the City of Kansas City also orgivable loans available equal to 20% of the sales price of the property.

For those borrowers who qualify based on household income, and who are able to provide 250 hours of sweat equity, Habitat for Humanity Kansas City is offering 0% interest loans for both rehabilitated and newly constructed homes.

All eligible households must complete a home buyer education class, which will be available through Neighborhood Housing Services. For information on home buyer education, please contact Marjorie Major at 816-822-7703 Ext. 215, or mmajor@nhsofkcom.org.