The District plans to start three small pilot programs next year to promote creation of more low- and moderate-income rental housing and to help large families buy homes, using federal community development block grant (CDBG) funds.
The programs are part of a proposal, presented yesterday at a City Council committee hearing, for using $22 million the city expects to get in CDBG funds for fiscal year 1984 and $4.8 million in extra block grant funds under the recently passed emergency jobs bill.
The jobs monies are to go to landlords to fix up vacant housing and to correct housing code violations, to small and minority-owned businesses for activities that will mean hiring long-term unemployed persons, to repair public housing and to hire public housing residents to perform various services for other residents.
The city must apply for the CDBG funds by July 1, and the City Council first must approve the spending proposals. The programs were outlined yesterday by James E. Clay, director of the D.C. Department of Housing and Community Development.
One of the pilot programs would provide mortgage insurance on loans by private lenders for rehabilitating low- and moderate-income rental housing, guaranteeing that the loan will be paid off if the developer defaults.
Lenders have been reluctant to make these loans recently because of the poor rental housing market, and the insurance would be intended to get financial institutions back into this kind of lending. The first year's program will only be big enough for one or two small loans, Clay said.
Developers also would get larger subsidies than they do now to increase numbers of low-cost housing units, under another plan.
The third new program would help large families make down payments on homes with three or more bedrooms. The income qualifications, depending on family size, would range from $13,000 to around $38,000. There are enough funds for about 15 families the first year, Clay said.
The jobs funds would be broken down like this:
* $1.5 million to landlords to rehabilitate vacant one- to four-unit buildings into low- and moderate-income housing.
* $1 million for loans to small and minority-owned businesses for working capital and construction projects that provide jobs.
* $1 million to repair public housing and public facilities, using unemployed public housing residents.
* $1.324 million to hire public housing residents to provide home health care, property management and improvement, drug abuse prevention, child care and homemaker services.