An innovative new program is helping buyers get into newly constructed homes for just $500, through a simple FHA assumption and a $10,000 grant for the down payment from the Federal Home Loan Bank of Seattle. Qualified families must meet certain FHLB income requirements: those who do avoid the sometimes discouraging and often futile struggle to save enough money for a down payment and closing costs. Through the best of public-private partnerships, these families are realizing the dream of homeownership.

The affordable housing at the heart of this program is being brought to the South Hill neighborhood of Spokane by the Spokane Housing Authority and South Hill developer Mike Shuler, in cooperation with Sterling Savings Bank, the Federal Home Loan Bank of Seattle, HUD, Spokane HomeOwnership Resource Center (SHORC) and Monogram Homes.

Rhonda Nordman and her daughter Shawna are delighted with their good luck and beautiful new home.

In addition to the financial incentive, this program also allows first-time homebuyers to buy a home in an attractive setting with a central location. Many attractive and affordable neighborhood developments are being built in outlying areas, where the ground is flat and development costs are low. However, the South Hill neighborhood has a great deal of rise and fall in its topography: native rock is retained on the lots, allowing staggered rooflines and making it a very distinctive neighborhood. All the homes have vinyl siding with carefully considered colors, which helps makes this both an attractive and affordable neighborhood.

Spokane Housing Authority Board Chairman, Bill Zeck & Executive Director Dianne Quast along with Land Developer Mike Shuler, HUD Representative Judy Anderson, and SHORC Director Diana Telford share the happy day.

Prices for homes purchased through the partnership range from $95,000 and $120,000 - even before the individual $10,000 grants from the Federal Home Loan Bank. In turn, the grant enables the Spokane Housing Authority to obtain up to 20 FHA 203b loans at any one time. The loan will be assumed within one year by the first-time homebuyer through a lease purchase option agreement. The first-time homeowners initially pay a $500 rental deposit, which will be applied to their assumption costs. Eventually, 60 homes will be built and owned by first-time homebuyers in this new "upscale" South Hill Spokane neighborhood. FHLB income requirements for qualified families are based upon housing size. The first FHA loan was assumed Wednesday, December 17, 2002, when a single mother and her daughter moved into their new home.

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Today, January 15, 2003, at 10 a.m., the Department and HUD's Chapter of Blacks In Government will present a 2003 Martin Luther King, Jr., Commemoration Program in HUD's cafeteria.

The keynote speaker will be the dynamic Dr. Leonard N. Smith, Senior Pastor, Mount Zion Baptist Church, Arlington, VA. Please join your friends and coworkers this morning to celebrate the birth, life, and dream of Dr. Martin Luther King, Jr.