Loudoun County is set to initiate a program that would help public-sector employees buy housing in the county while helping assuage the area’s foreclosure crisis, joining its Northern Virginia neighbors.
The proposal — scheduled to be voted on at Tuesday’s Board of Supervisors meeting — would set aside 30 $5,000 home ownership grants for county employees who earn between approximately $30,000 and $70,000 a year and do not live in Loudoun. The grants would be used to help the employees buy foreclosed properties with assessed values of about $400,000 each.
The supervisors’ Public Safety and Human Services Committee examined similar programs in surrounding counties, said Sarah Coyle Etro, assistant director of the County Department of Family Services.
Fairfax County’s program provides counseling for homeowners at risk of foreclosure and loans for first-time homebuyers to buy foreclosed properties. A total of 100 loans are budgeted for the next two years, with a maximum of $91,767 per loan, depending on purchasers’ household income levels.
Prince William County’s program, still under study, would invest $50 million to fund low-interest loans for the purchase of foreclosed properties for public-sector employees, particularly those working in public safety and education.
“I would say what we have developing or already in place is much more similar to Fairfax,” Etro said.
Supervisor Eugene Delgaudio, R-Sterling, said that given Loudoun’s recent spate of foreclosures, the initiative is not a viable way to address the problem long-term.
“There’s nobody coming up with any ideas on how to address 2,500 foreclosures in this county,” he said. “That’s a problem for the Congress or the governor. And he’s ignored it.”
State code stipulates that an ordinance must be drafted to support home ownership grants, so if the item is approved Tuesday, the county would move to draft the ordinance, Etro said.
Part of the proposal also would make changes to the Eastern Loudoun Revitalization Program, which provides rehabilitation loans for properties that are at least 30 years old. One such change would allow the loans to fund improvements for foreclosed properties.
Since 2006, $150,000 has been granted to renovate four homes under the program, and $200,000 is available.
