BERNARDI AND WALKUP ANNOUNCE ZERO PERCENT LOAN PROGRAM FOR HOMEOWNERS LIVING IN TUCSON'S RIO NUEVO NEIGHBORHOODS
No-cost loans will help approximately 55 families renovate their homes

TUCSON, AZ - Lower income families living in Rio Nuevo neighborhoods in downtown Tucson will soon be able to renovate their homes with zero percent loans supported by the Department of Housing and Urban Development and the City of Tucson. HUD Assistant Secretary Roy A. Bernardi and Mayor Robert Walkup announced the no-interest loan initiative today outside a newly renovated home before touring neighborhoods targeted for the subsidized home improvement program.

Today's announcement builds on an existing citywide initiative to provide below market interest rate loans (between three and five percent) to homeowners seeking to improve their properties. Like the below-market loan program, Tucson's new zero percent loans are supported through HUD's Community Development Block Grant (CDBG) Program and will benefit homeowners who earn less than 80 percent of Tucson's median income (see attached chart).

"This is a wonderful source of financing for individuals and families who want to improve their homes and protect their investment," said Bernardi. "This is also a marvelous example of how the public and private sectors can come together to help revitalize communities from the ground up."

Walkup agreed, "Investing in homes and neighborhoods demonstrates the importance of residents in creating a viable downtown that will attract retail and commercial investment."

HUD and the City of Tucson will help subsidize no interest loans for approximately 55 qualifying homeowners while Wells Fargo Bank will provide the financing. In addition to income restrictions, borrowers must meet the following criteria:

• Own and occupy homes in Rio Nuevo neighborhoods;
• Be current on their real estate taxes and mortgage payments;
• Be free of any delinquent liens or encumbrances; and,
• Cannot have more than $10,000 in liquid assets that will not be used to fund the rehabilitation.

City staff will assist borrowers in application process. Loans will range from a minimum of $5,000 to a maximum of $65,000.

Today's announcement comes as HUD is sponsoring a two-day conference highlighting the tax benefits available to businesses located within the area's new Empowerment Zone, which includes portions of Tucson, Pima County and South Tucson.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities, creating affordable housing opportunities for low-income Americans, supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet.

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