City Commission votes to create short term affordable housing construction loan program
TALLAHASSEE, Fla. (WCTV) - The Tallahassee City Commission voted at its Wednesday meeting to create a short term affordable housing construction loan program. The program will use $750,000 from the Affordable Housing trust Fund.
The program is designed to have a short turnaround; those who receive the loans have 18 months to pay it back, or within 6 months of getting a certificate of occupancy.
The City's Director of Housing and Human Services, Abena Ojetayo, says you'll often see new housing developments popping up around Tallahassee, so it can be difficult to believe there is not enough affordable housing.
However, profit margins are higher for market rate or luxury housing, making those types of developments more financially desirable to build.
“Our goal with this program is to make sure we reduce the cost for developing housing units as much as possible so that those savings can be passed down to folks that are making our area median income. To do more, create more units for working class families and for those that are making less than that,” said Ojetayo.
The individual loans would be $175,000 each; the funding will be accessible to private developers, including non-profits.
Ojetayo says the City hopes to have the program up and running within a couple of months.
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