Frederick and Christian Newell, along with their three young children, have had their share of home-buying woes, but after Tuesday afternoon’s bingo-like raffle at City Hall, their worries have been lessened.
Through the second round of Iowa City’s Single Family New Home Construction Program, set up by the Housing Trust Fund of Johnson County, qualified individuals and families — such as the Newells — can receive a 25 percent down-payment assistance on newly developed property.
On Tuesday, people patiently awaited their number to be called by Iowa City Mayor Matt Hayek after drawing it from bingo dispenser.
All 51 active applications were broken up into three drawings: first-time homebuyers went first, Johnson County residents came second, and non-Johnson County residents were third. The applicants were able to select the property of their choice in the order their number was called, said Tracey Achenbach, executive director of the Housing Trust Fund of Johnson County.
The Newell family had their bingo number, “I9,” called first by ceremonial drawer Hayek.
“It’s really unrealistic, especially considering what has happened in the past,” Christian Newell said in a relieved voice. “We were already expected to get a house, and we made an offer, but it got taken off the table, and everything just fell through after that.”
Prior to this opportunity, the Newells were living in a two-bedroom apartment with five people.
“To go into a single family, three-bedroom home in which each of [the kids] can have their own space is just amazing,” Christian Newell said.
While families applied to the program looking for a second beginning, others were just ready to get out of the renting game.
Matt Degood, 30, a first-time homebuyer, received the second option in property choice.
“It’s a place to call your own,” he said. “I’m not wasting money, I’ll be putting it toward an investment.”
The previous program, now called round one, took place in June 2009 and offered a 30 percent down-payment assistance. The final property was closed in May, Achenbach said. In round one, assistance was offered to 40 homebuyers through funding awarded as a result of the 2008 from the Iowa Department of Economic Development.
This time around, 37 homebuyers will see the benefits.
“There are a variety of condominiums, townhomes, zero-lot line homes, and detached single-family homes,” Achenbach said.
There are, however, some stipulations for eligibility to the program.
All buyers must have an income below the area media income and be able to obtain a mortgage for the remaining financing on the home from a participating lender, Achenbach said. Half of the buyers make less than 80 percent of the area median income.
For a two-person household in Iowa City, 100 percent area median income is $62,300, and 80 percent is $49,800, Achenbach said.
In this troubled economy, the program also has the chance to benefit the seven developers involved in building the homes.
“We participated in the first round, and it was incredibly successful,” said Amy Ganoe, an assistant project manager at Peninsula Development Co. LLC. “It’s a great chance to have pre-sold homes in this downward economy.”
Peninsula will develop family-style row homes in the $150,000 range for the program.
The selling prices of the homes range from $125,000 to $180,000, Achenbach said.
The program, originally established to mend the damage from the 2008 flood, is still enhancing the lives of Johnson County residents two years later, those involved said.
“To know that we were picked first and that we are going to get a home is pretty exciting,” Christian Newell said.