Town of Catskill
Affordable Homeownership Project
Joe Izzo, Supervisor
Town of Catskill
439 Main Street
Catskill, NY 12414
(518) 943-2141
First Time Homebuyers Program
The Town of Catskill is currently investigating the possibility of introducing a first time homebuyer program. If implemented, the Town intends to apply for a Community Development Block Grant in the amount of $400,000.
The grant will be used to purchase and subdivide a sufficiently sized parcel of land. Grant funds will also be used to install water lines and septic systems for each parcel. The Town hopes to develop between 15 and 20 of these sites.
The Town will then deed these parcels over to income eligible applicants who will construct a home on the site. The town is now developing partnerships with builders and lenders that will support program participants in the construction of their new home.
Preliminary concepts indicate that a typical, detached single family home with 1,500 square feet of living space can be constructed for approximately $150,000. Assuming that the value of the land and utilities is $15,000, each program participant will be required to borrow approximately $135,000 for the new home. This amount will vary, depending on the type of home selected.
The Town will partner with the United States Department of Agriculture to provide affordable mortgages. In some cases, mortgage rates may be as low as 1% and have a term of up to forty years. If a homebuyer were to purchase a home using a direct USDA loan of $135,000 at 4% for forty years, their monthly payment (principal and interest only) would be just $564.22.
The Town needs to demonstrate to the Governor’s Office for Small Cities that there is sufficient interest in the program to warrant the investment of $400,000 in CDBG funds. To demonstrate interest, the Town is requesting that all persons that may be interested in participating in this First Time Homebuyers program.
If you are interested in participating in this project, please complete the questionnaire on the following section of this brochure and return it to the Town Offices by December 30, 2005. Please do not hesitate to call Joe Izzo, Supervisor at (518) 943-2141 if you have any questions.
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