More may be able to afford Newport

June Casagrande

A new program could make it a little easier for some people to

become homeowners in the city, but only a handful of units would

qualify.

The City Council on Tuesday will consider whether to join a joint

powers authority designed to create homeownership opportunities for

moderate-income and slightly above moderate-income residents. And

though only about 45 homes in the city, most of them condominiums,

fall below the $309,750 price ceiling, council members at a study

session last week agreed it’s worth considering.

“Sounds like it might be a worthy program for the council to

consider,” Mayor Tod Ridgeway told colleagues and presenters from

Chilton and Associates, the company that coordinates the joint powers

authority.

Though the program is not limited to first-time buyers, it’s

designed to benefit people who can’t quite scrape together a down

payment. In Newport Beach, the income limit for a family of four to

qualify for the program is $105,860.

Through the lease-to-purchase program, the joint powers authority

buys the house or condominium, then leases it out to the applicant

for about three years. After the applicant has proved

creditworthiness, the mortgage is transferred to the applicant. The

down payment, which is 3% of the cost of the home, is basically a

gift of the joint powers authority to the new homeowner.

“A number of council members felt it was worth looking into, so it

will be on the agenda for the meeting on [Tuesday],” Assistant City

Manager Sharon Wood said. “There was some question about financial

liability, but financial liability does not rest with the city. It

rests with the joint powers authority.”

The authority issues bonds and uses the proceeds to finance the

home purchases.