PSL giving free lots to low-income residents

By CHRIS YOUNG May 5, 2006
PORT ST. LUCIE — The city wants to give away seven residential lots to very low-income residents to build their dream homes.
The problem is, there aren't enough applicants.

One woman now lives in a home under the city program. The city gave her a lot and $23,000 for a down payment, and Habitat For Humanity built the house, said Community Services Director Tricia Swift-Pollard, who heads the program.

The city will give another lot away soon. But six other lots haven't been awarded yet. Swift-Pollard said she thinks not many people have heard about the program.

Applicants do need one or two years of good credit and be able to qualify for at least a $50,000 mortgage. They cannot make over 50 percent of median income, which changes based on family size. For a family of four, that limit is $27,300; for two people, $21,850.

The city gives the lot and up to $75,000 for a down payment and closing costs as an interest-free second mortgage on the home.

The mortgage must be paid when the homeowner sells the house or refinances but doesn't require payments before that.

"(The city) is being very accommodating to the needs of homeowners," said Runa Saunders, vice president of retail banking at Harbor Federal Savings Bank in Fort Pierce, noting the inclusion of a lot to build on.

Swift-Pollard said there were only five houses for sale in the entire city priced under $150,000 as of mid-April, and 330 homes in the $175,000 to $200,000 range.

While some people at the income level targeted by the city's program might not qualify because of bad credit, it is entirely possible to qualify, loan officers said.

Saunders said that having good credit means managing finances wisely and paying bills on time, such as rent, utilities or car insurance.

"(But) if you don't pay rent on time, we can't loan the money for a house, knowing your history," she cautioned.