Only five months after coming online, a Grand Forks city program aimed at easing the cost of home-buying has been given the ax.
The Down Payment and Closing Cost Assistance Program offered assistance to homebuyers in the form of a loan of up to $10,000.
“It’s going to be a soft close,” Community Management Officer Meredith Richards said. “We still have some people in the pipeline.”
The process will continue for those who have started it but Richards said the program will not be accepting new applications.
Since its start in May, the program has yet to close a loan.
That means the $420,000 in federal grants designated for those loans has remained untouched.
When added to other grant money, the total balance of the city’s Home Investment Partnership Program funding is $804,000.
“The upshot is that we have $800,000 there, but it doesn’t really look like it’ll be going anywhere anytime soon,” Richards to the City Council’s finance committee on Oct. 14. “The money doesn’t do us any good unless we’re spending it on good projects.”
On Monday, the City Council voted to follow a recommendation to terminate the program and find “shovel-ready” projects where the money could be spent instead.
Continue reading the story here. An earlier version of this story appeared on this blog last week.