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Low-interest loans would put county workers in foreclosed homes
Loudoun officials are working on a plan that will rid the county of some of its foreclosed homes while supplying much-needed affordable housing to county employees.Now being hashed out is a proposal that would allow the county to provide low-interest loans to some Loudoun teachers, deputies, firefighters and other county workers when they purchase foreclosed properties. The plan will be unveiled at the Board of Supervisors' June 3 meeting.
Since the beginning of 2007, about 3,700 homes – most in Sterling and Leesburg -- have been foreclosed upon in Loudoun, according to RealtyTrac.com. And more appear on the way.
"People are desperate for help,” said Antwaun Jackson, a housing intervention social worker in the Department of Family Services. “Most of the people we talk to are already 60 to 90 days in the foreclosure process."
Jackson said she is currently fielding "three to five" calls a day from people seeking advice on avoiding foreclosure. Most, she said, live in eastern Loudoun.
While this plan, proposed by Board of Supervisors Chairman Scott York (I-at large) and similar to ones in Fairfax and Prince William counties, would do little to help these people, it would assist in putting others in the glut of homes now sitting empty in Loudoun.
According to Loudoun budget officer Ben Mays, money to pay for this plan would initially come from the county's Housing Trust Fund, which currently totals about $4 million and was set aside to fund affordable housing programs.
Supervisor Eugene Delgaudio (R), whose Sterling District has been hit hardest by the housing meltdown, called the plan an economic "shot in the pants for people who would otherwise buy outside of Loudoun."
Besides aiding government workers, Delgaudio also said such a plan would be a boost to Loudoun's own bottom line since it would put taxpayers back in vacant homes. He said Loudoun lost $3 million in tax money last fiscal year because of foreclosures.
"If we don't do anything, we will continue to lose millions," he said.
Of the government's 3,100 workers, 55 percent reside outside of Loudoun, according to D.L. Fosque, the county's human resources director. School officials said nearly 40 percent of their several thousand teachers live elsewhere. Why the exodus? Home prices, for one, officials regularly say.
The median sale price of a home in Loudoun was $350,000 in April, compared to $202,000 for the nation, according to the National Association of Realtors.
And despite falling prices, Loudoun Sheriff Steve Simpson said some his "young deputies" are still finding the local housing market "almost impossible" to penetrate. Not surprisingly, he's a supporter of this home-loan plan.
"Anything we can do to enable our public servants to live where they work," he said, "is a good thing."
Contact the reporter at jjacks@timespapers.com
Wow! It's terrific that our local government has found a way to benefit from the suffering of it's taxpayers.
Why don't you invent a way for those families that are getting foreclosed on to stay in their homes. I'm not talking about investors and irresponsible purchasers but truly needy people effected by the market and the dramatic slow down in construction.
Quit finding ways to capitalize once again on the already overtaxed residents of LoCo. Help your citizens not yourselves.
Lots of people live one place and work in another. That's life for most people. Does everyone get to benefit from this program or just our tax fattened government employees?
Maybe work something out where the county can help people with forgivable loans to stay in their homes rather than give them away to the government. We give enough. I don't feel compelled to give LoCo employees houses as well.
Stop crying about starting salaries. Starting salaries are low for everyone. What happens when the county employee starts earning a better wage because he/she demonstrated good work ethic, loyalty and lasted more than a few years? (Similar criteria for raises in the private sector but ours are coupled to economic factors as well. Can't just raise taxes like you can) Do you take the house away? You should because it should go back into inventory for the next new employee.
Do you offer these homes to all working residents because their starting salaries are also low?
County employees just aren't that bad off and the benefits are better than most. Let them buy their own houses where they can afford them like everyone else.
I want my tax money back because it's just getting wasted.
Posted by SomeGuy
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One point in this article that I find troubling and definitely needs further clarification is the paragraph that states "According to Loudoun budget officer Ben Mays, money to pay for this plan would initially come from the county's Housing Trust Fund". What does Mr. Mays mean by "initially"? Where else would you get it?
I sympathize with those that feel Loudoun is an expensive county in which to buy/own a home. Times are tough for many of us. Taxes keep going up and the county pays only lip service to real spending controls. Now the new BOS wants to create a privileged class of borrowers - county employees - and provide them with low interest loans to buy homes? County employees make good money, have very stable employment with excellent benefits and have a first class retirement system. Why do they need special treatment? I do believe that there are many in this county that are responsible and would welcome the low interest mortgages that the county wants to provide. Why not use the 4 million Housing Trust Fund to make reasonable loans to families who really need the help. I do believe that is why the fund was established.
Posted by J662West
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The ignorance in these comments is astounding and extremely egocentric.
Posted by 10feettallandBulletproof
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Well, lowering the interest rate is well and good, but whether the rate is 2% or 6.5%, a teacher making $50,000/ year still can't afford to buy a $350,000 house (assuming you go by the 2 1/2 times your salary rule of thumb...) I guess if you get the teachers, etc. into an interest only loan at 2% they could afford it. But wouldn't that just put us right back where we started???
Posted by charleyp1
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