Loan program aims to help inner city neighborhoods

The intersection of Brazos and Guadalupe streets is one of the area’s a new program could offer city employees financial assistance in purchasing their first homes. The intersection of Brazos and Guadalupe streets is one of the area’s a new program could offer city employees financial assistance in purchasing their first homes. Photo: ROBERT MCLEROY, SAN ANTONIO EXPRESS-NEWS Photo: ROBERT MCLEROY, SAN ANTONIO EXPRESS-NEWS Image 1 of / 1 Caption Close Loan program aims to help inner city neighborhoods 1 / 1 Back to Gallery

City Council recently approved a pilot program to give city employees financial assistance in purchasing their first homes in San Antonio.

Project HOPE—approved by city council June 14—allocates $240,000 to full-time city employees in forgivable loans to purchase homes within the inner city.

Called the Home Ownership Program for Employees (HOPE) program, the loans are aimed at repopulating the Community Revitalization Action Group (CRAG) area, which composes the original 36 square miles of the city, and the Inner City Reinvestment/Infill Policy (ICR/IP) which stretches further to specific areas.

Employees may receive a loan in the amount of $10,000 for purchasing a home in the CRAG and $5,000 for one in the ICR/IP at a zero percent interest rate.

Lori Houston, San Antonio's assistant director for the Center City Development Office, said the funds for Project HOPE will serve for the 2012 fiscal year, which ends in October.

She said during that time between 24 and 48 loans could be awarded.

Houston said the city is attempting to provide incentives to get city employees closer to their jobs and into some of the older areas of the city.

“We want to see how successful it is,” she said. “We hope it becomes a model for other corporations to use.”

The loans are forgiven over a five year period at a rate of 20 percent each year provided recipients remain employed with the city.

If loan recipients leave their jobs before the five-year period is up, the remainder of the loan is due to the city.

The 2010 census showed a decrease in population in District 1 and District 5. Both districts are situated in the inner city and have the two lowest populations among the city's 10 districts.

Kristine Egan, a senior GIS specialist in San Antonio's Department of Planning Development Services, said the population of District 1 dropped by 4,690 people while District 5 dropped by 3,605 between 2000 and 2010.

Any home in the ICR/IP qualifies for the loan, even if newly built. City employees eligible for a loan must work full-time and be first-time homebuyers in San Antonio.

Houston also said a minimum 620 credit score is required among other stipulations. But the program does have some critics.

Bob Martin, president of the Homeowners Taxpayer Association of Bexar County, said the reason the city is offering loans to those buying homes downtown is because people do not want to live there.

“How is that a public service?” he said. “They're taking taxpayer money and they're going to turn it over to politically favored groups — in this case, city employees.”

Martin added that there are no income restrictions in the plan.

“A high-ranking city employee could get a little help paying for an expensive condo.”

mdwilson@primetimenewspapers.com