City to Start Two Home Loan Programs

The City Council has approved creation of a loan program to help first-time home buyers in the city and another to benefit people who already own homes in Cypress but need to make repairs to their property.

Both programs are now being set up by the city staff. Loan criteria and other details will be announced by the City Council as they are settled, and applications will be taken.

The goal is to have the program launched by July 1, officials said.

Chris Kelly, director of community development, said the money for both programs will come from income the city gets from redevelopment projects.

State law requires that 20% of such funds be earmarked for affordable housing.

Kelly said the city already has a pool of redevelopment income that will help finance the home buyer and rehabilitation programs.

“When you have a city with housing stock that is 20 to 30 years old, a good proportion are going to need repairs,” Kelly said.

“As for new buyers, a city such as Cypress already has had one generation that has grown up. This first-time home buyer program would help a second generation to afford to live in the community,” Kelly said.

The help for first-time home buyers will be in making loans more affordable, Kelly said.

Lending institutions will work with city staff to draw up a plan to help first-time buyers, she said, and to offer loans up to $10,000 each for housing rehabilitation projects.