A first-ever audit of Hollister’s affordable housing showed that
the vast majority of Hollister Redevelopment Agency loan recipients
are complying with the terms of their loans.
However, three homeowners who did not respond to the audit are
at risk of having their homes re-sold without their consent.
Hollister – A first-ever audit of Hollister’s affordable housing showed that the vast majority of Hollister Redevelopment Agency loan recipients are complying with the terms of their loans.
However, three homeowners who did not respond to the audit are at risk of having their homes re-sold without their consent.
In April, Redevelopment Project Coordinator Bryan Briggs sent letters to the 193 people who live in South County Housing developments in Hollister asking the homeowners to come into his office and supply proof – such as a current driver license, proof of homeowner’s insurance and a utility bill in the homeowner’s name – that they are abiding by the loan agreement they signed with the agency.
The RDA loans are made up-front through a “buy down.” The RDA gives money to a non-profit affordable housing corporation, such as South County Housing, to build a development. Once construction is complete, the new homeowner assumes a mortgage equal to the amount of RDA money used to build the home. They also get credit toward their down payment in the form of sweat equity by assisting in the construction of their, and other, homes.
Homeowners cannot profit by selling their home at market rates before end of the 33-year mortgage. They can, however, transfer the mortgage to another eligible home buyer.
Restrictions on the loans preclude homeowners from renting their houses out or having chronic code violations. Also, homeowners must have insurance.
“Those were the things we were looking for,” Briggs said.
Of the 193 homeowners, only three failed to respond to letters, phone calls and several visits from Briggs and a South County Housing representative. Those homeowners are now at risk of losing their homes.
During the RDA’s meeting Monday, the RDA board authorized agency staff to send a letter to the three homeowners who did not reply to the audit request stating that if they do not reply in a month, the RDA will purchase their homes without their consent, and South County Housing will sell them to someone else who is eligible for affordable housing.
The letter will likely be sent next month, according to Briggs, who will start a new job in Seaside next week.
This was the first RDA audit of the city’s six South County Housing developments, which were built between 1992 and 2002. Previous audits were not performed because of a lack of RDA staff, Briggs said.
Briggs said the threat of buying back and reselling the homes of people who did not respond to the audit request is a last resort, and the RDA is willing to work to solve problems with home owners.
“We value all of our people who have taken loans from us,” he said. “Even if they’re low-income people, they’re still an important part of our community.”
