The Denver Office of Economic Development today kicked off two new programs to address residential foreclosure and to spur the revitalization of neighborhoods heavily impacted by foreclosure.
The Office of Economic Development launched a $25 million Mortgage Credit Certificate Program, which will assist homebuyers and homeowners with high-cost or sub-prime loans that are at risk of foreclosure. The Office also announced partnerships with two consortiums led by the Denver Housing Authority and the Denver Urban Renewal Authority to redevelop foreclosed properties through the federal Neighborhood Stabilization Program.
“Through these new programs, we’re providing relief to homeowners at risk of foreclosure and to our neighborhoods that have been impacted the greatest by foreclosures,” said Mayor John Hickenlooper. “We’re helping to stem the tide of foreclosure through a comprehensive strategy that creates economic opportunities for our community through job creation and the sustainable redevelopment of housing.”
A Mortgage Credit Certificate is a tool to reduce the amount of federal income tax a borrower must pay by providing an annual federal income tax credit. This in effect provides additional take-home income for the borrower to use in making a monthly mortgage payment.
The Mortgage Credit Certificate Program will benefit approximately 180 households throughout Denver. It will target homeowners with any adjustable rate single-family mortgage loan originated between Jan. 1, 2002, and Dec. 31, 2007, who are eligible to refinance. Additionally, the program is available for eligible homebuyers to purchase a home. Annual family income cannot exceed $88,600 for one or two persons and $101,900 for three or more. Higher income and purchase price limits are also available in targeted areas.
The Mortgage Credit Certificate Program is funded through $15 million from Denver’s Private Activity Bond capacity and $10 million from the state of Colorado Private Activity Bond capacity provided through the Housing and Economic Recovery Act of 2008.
Created through the Housing and Economic Recovery Act of 2008, the Neighborhood Stabilization Program is providing Denver with approximately $9.6 million to acquire, redevelop and resell foreclosed properties that might otherwise become sources of abandonment and blight. The City is contracting with two separate teams, led by the Denver Housing Authority and the Denver Urban Renewal Authority, to administer the Neighborhood Stabilization Program throughout the following neighborhoods that have experienced the greatest incidents of foreclosure: Montbello, Green Valley Ranch, Northeast Park Hill, Elyria Swansea, West Colfax, Villa Park, Barnum, Athmar Park, Westwood and Mar Lee. Additional neighborhoods may be added to the program, contingent upon additional federal Neighborhood Stabilization Program allocations and the leveraging of funds with partnering organizations.
The Denver Housing Authority and Denver Urban Renewal Authority teams include a wide range of partner agencies with experience in rehabilitation and development, including Habitat for Humanity, Colorado Housing Assistance Corporation, Colorado Coalition for the Homeless, NEWSED, Northeast Denver Housing Center, Del Norte and the Urban Land Conservancy.
“We’re extremely fortunate to have such an incredible team of nonprofit and community organizations that will work collectively with the City to get families back into foreclosed homes and support Denver’s neighborhoods,” said OED Executive Director André Pettigrew. “One of our goals is to use green standards to ensure that these redevelopments have a minimal impact on our environment, provide energy savings to families and serve as a complement to our sustainable economic development efforts.”
More information about both programs is available online at the OED Web site. The site includes a wide variety of housing information for renters, first-time homebuyers and current homeowners.
To apply for an MCC, interested individuals may contact any of the mortgage lenders participating in the program:
American Capital Financial, 303-830-2208
American Liberty Mortgage, 303-458-3778
Circle One Mortgage, 303-464-3778, 303-302-3132
Megastar Financial Corp., 303-321-8800, 303-233-6410, 303-429-2500
Rocky Mountain Mortgage Specialists, 303-773-6106
Universal Lending Corporation, 720-524-2679
Uptown Mortgage, 303-839-5262
US Bank Home Mortgage, 303-369-4561
Wells Fargo Home Mortgage, 303-779-9199; 303-980-7693; 720-344-7200
WR Starkey, 303-757-0300, 720-489-0712
for more detailed information on the MCC program.
The Denver Office of Economic Development (OED) is dedicated to advancing economic prosperity for the City of Denver, its businesses, neighborhoods and residents. Working with a wide variety of community partners, OED operates to create a local environment that stimulates balanced growth through job creation, business assistance, housing options, neighborhood redevelopment and the development of a skilled workforce.