Our Neighborhood Stabilization Program
The City of Livermore, along with the cities of Berkeley, Fremont, San Leandro and Union City, received approximately $2.23 million in Neighborhood Stabilization Program 1 (NSP 1) funds through the State of California to purchase and completely renovate foreclosed or abandoned properties in selected areas. The Cities issued a competitive Request for Proposals and selected Hello Housing (formerly Hallmark Community Solutions) to facilitate the purchase, renovation and sale of homes. Once renovated, these homes are sold to low and moderate income homebuyers at an affordable price.
The City of Livermore is also a member in the Alameda County NSP2 Consortium, which in 2010 was competitively awarded $11 million in a second round of NSP funding to expand these revitalization efforts. Each home developed with NSP2 funding will achieve a GreenPoint Elements Rating, which assures buyers that their new home has been renovated with the environment and cost-saving energy improvements in mind.
One of the obligations for the Neighborhood Stabilization Program is that eligible homebuyers comply with long-term affordability requirements, which in the Livermore Consortium cities can be achieved in one of two ways:
1) A homebuyer can borrow a small mortgage assistance loan from the City of Livermore, of which some portion can be used to cover closing costs. This loan can be no more than 3% of the purchase price of the property, will accrue interest at 3%, and will be evidenced by a 30-year promissory note and a deed of trust recorded against the property. After 20 years, the loan will be forgiven 10% per year until it is completely forgiven in year 30. The vast majority of homebuyers choose this option.
2) A homebuyer can choose to execute a “resale restriction and option to purchase agreement”, which is recorded against the property requiring that, in the event the homebuyer decides to sell the property in the first 15 years, the property be sold at a price affordable to middle-income households.
More detailed information about these two options will be provided during the qualification process.