Vol. 5, No. 9, September 2008
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‘A leg up’ for would-be homebuyers in Atlantic City
‘Luxury tax’ funds down payment assistance program
As it turns out, a portion of Atlantic City’s luxury tax—imposed on things like hotel rooms, amusement rides and alcohol—now helps fund what for most of us is neither a luxury nor a necessity, but certainly a heartfelt desire: home ownership.
A new program from the Atlantic County Improvement Authority offers up to $30,000 in down payment assistance to buy a single-family home in Atlantic City. The program will provide up to 10 percent of the purchase price and as much as $5,000 towards eligible closing costs on a fixed-rate mortgage.
Atlantic County Executive Dennis Levinson calls the program a natural for casino employees, whose numbers are expected to swell as future projects like Revel and Pinnacle are completed.
“Casino investment here is no longer in the hundreds of millions; people are spending one, two and three billion dollars for hotel casinos,” Levinson says. “Those places need a steady and secure work force; that work force needs a place to live.”
Applicants must have lived here for at least a year and have an annual household income between $36,500 and $100,000. Prospective buyers, who cannot have owned another home for two years, must be pre-approved by a mortgage lender sanctioned by the New Jersey Mortgage Finance Agency. Home prices cannot exceed $350,000.
John Lamey, executive director of the ACIA, says the program should appeal to families who can swing a monthly mortgage payment, but find it hard to come up with a down payment.
“It’s tough for working class people to accumulate that kind of money,” Lamey says. “Right now we have $3 million available, and we’re hoping to fund 100 home purchases. If there’s a need for it in future years, we could put more money into it.”
The long-term benefits for the city are apparent. “Home ownership leads to stability in the neighborhoods, and when people are stakeholders, they tend to take care of their properties,” Lamey says. “There is less turnover. It just makes for stronger communities.”
All down payment and closing cost assistance is offered to the homebuyer as a deferred no-interest loan, secured by a mortgage, to be repaid to the program based on the proceeds from resale, refinance or any changes in title and a portion of the appreciation. The percentage of appreciation shared by the ACIA when the house is sold decreases over time, encouraging long-term ownership.
“Working people should take advantage of it,” says Levinson. “It gives them a leg up.”
For a list of income eligibility guidelines and approved lenders, call 609-645-5838 or visit www.atlanticcountyimprovementauthority.org.
Bright Lights, Big City
A mericans, tired of car-based living and suburban sprawl, are reconsidering urban life.
This could be just the time to repopulate Atlantic City. Multiple reports by news media and the real estate industry indicate that the once-pervasive trend toward suburban developments made up of close-set, vinyl-sided McMansions may be going the way of Levittowns and split-levels.
Americans are disillusioned with “the sprawl and stupor that sometimes characterize suburban life,” according to the March issue of the Atlantic. And though the suburbs continue to sprawl, urban life—close to nightlife, shopping, fine dining and cultural attractions—has taken on a new luster. With fuel at record levels, close proximity to work and play are suddenly very, very important to Americans living on a budget.
According to a June survey by Coldwell Banker, 81 percent of homebuyers polled said they would consider moving to the city to cut their daily commute. Three-quarters said they like the idea of walking to work.
The trend could be an important one for Atlantic City, which needs a vibrant residential infrastructure to support grocery stores, movie theaters and a thriving community citywide.
The Ins and Outs of Home Desig n
It’s the nature of trends to be “here today, gone tomorrow.” Outdated features in the home can be a big drawback if you decide to sell. Let’s look back at some once-trendy design fads, and what’s considered cool today (keeping in mind that these trends, too, must pass).
TODAY SO YESTERDAY
• Wrought iron fences • Picket fences
• Cathedral ceilings in the foyer • A “cottage look” with lower ceilings
• Water closets • Free-standing toilets
• Purple and gray, black and white • Blue and brown
• Granite countertops • Soapstone or concrete countertops
• Flat screen TVs • Massive entertainment centers
• Dedicated hobby or game rooms • Dedicated living rooms
• Wood-burning fireplaces or stoves • Gas fireplaces with fake logs
