Houston Community Development Block Grants Halted

Houston Texas Down Payment Assistance Program Put On Hold

2/28/2010 – Houston Housing Market News: Community Development Block Grants for the city’s Hurricane Dolly-Ike Disaster Relief Down Payment Assistance program has been put on what city officials hope is temporary hold. This hiccup comes about because of slow reimbursement from the state, leading to a 9.2 million dollar deficit. The city has decided to place the grant program on hold until the state catches up on reimbursements leaving many people in need of grant money to make a home purchase out in the rain.

The state had authorized 11 million dollars to the program that makes available between $19,500 to $45,000 for down payments to those who make no more than 120% of the areas median household income and are willing to purchase a home in economically disadvantaged areas.

Up until this point the city had approved approx. 180 payments, but has not yet received any reimbursements from the state, who is administering the federal funds given for use in the program. Both city and state officials said that the slow pace of reimbursements is because the Hurricane Dolly-Ike Disaster Relief Down Payment Assistance program is a new program where Houston is the first city to be allocated funding. Which is a bit hard for me to swallow because in my eyes there is no difference from the Hurricane Rita program.

I would like to know what you think about the “temporary halt” of the program and why you feel that way.