County workers win chance to buy houses through new program
By: Teddy Kahn
Special to The Examiner
February 11, 2009
More than 150 Prince William County employees on Tuesday won highly coveted spots in a new program to help public workers buy homes in the county while easing the county’s foreclosure crisis.
The county received 323 applications for 167 spots in the Home Help Program, which seeks to reduce the oversupply of vacant houses, including foreclosed properties, by extending loans and reduced mortgage rates to entry-level employees.
“This is a little bit we’re able to do on the margin to help absorb homes on the market,” said county Finance Director Christopher Martino.
Foreclosures in the county reached 8,242 in 2008 — the highest number of any jurisdiction in the state.
“My goal has been to purchase a home by the time I’m 24, and this is a big step in that direction,” said Karen Gagnon, an aide for Supervisor Martin Nohe, R-Coles, who was among Tuesday’s winners.
Home Help is one facet of the county’s fight to stem foreclosures. Officials also plan to use the $4.1 million from the $700 billion federal bailout package that Congress passed in the fall to buy foreclosed properties and fund projects for low-income homeowners.
Although foreclosures will continue in 2009, Martino said he hopes the worst is over.
“The volume of activity is picking up,” he said. “Homes are selling and changing hands, although the prices are obviously down. But that’s how the market works.”
In January, 647 existing homes were sold, up from 312 a year earlier, according to statistics from Metropolitan Regional Information Systems Inc. But the median sales price was off 38.7 percent, from $286,750 in January 2008 to $175,900 last month.
The plan helps fulfill a long-time county goal to have more public employees living in the county. Martino hopes the program will help Prince William recruit and retain employees, many of whom live outside the county and face long commutes.
The county invested $50 million in certificates of deposit at SunTrust Bank to fund the first year of Home Help. County officials emphasized that the money comes from an investment portfolio and does not use taxpayer money.
“Ideally, we have 167 employees who actually close on a house and move into the county,” Martino said.
