7 17 chosen by Youngstown to administer funds for housing improvements

7 17 Credit Union to administer $13 Million to improve
Youngstown Housing

7 17 Credit Union was selected by the city of Youngstown to administer $13 million in America Rescue Plan Act (ARPA) funds across three programs. These programs are designed to improve housing across the city.

For the first program, the city of Youngstown allocated $8 million for the construction and/or rehabilitation of quality affordable housing. 7 17 proposed to parlay the $8 million into not only millions of dollars of housing development, but also $35 million worth of discounted mortgage financing.

To begin development, 7 17 will create a $5 million revolving commercial development fund to be used for developers to rehab vacant downtown buildings into residential condos, to build homes on vacant lots, and to develop neighborhoods. After renovation or construction, the units would be sold to individual buyers and the funds recuperated to be invested in additional projects.

Purchasers of the homes will receive interest rate reductions subsidized by the ARPA funds. The initiative has been dubbed the Youngstown Affordable Loan Program and will provide $35 million in reduced rate mortgage loans. Financing includes a 2% rate reduction and no closing costs. Through the program, based on current rates, the principal and interest payment on a $100,000 loan would be less than $500 per month. This makes home ownership more affordable than the average rent payment.

“The dream of home ownership is increasingly out of reach for many individuals,” said John Demmler, 7 17 Credit Union President and CEO. “The Youngstown Affordable Loan Program will make that dream achievable for many Youngstown families. This program directly aligns with our mission of helping people improve their lives financially and supporting the communities we serve.”

The second program will provide low-interest loans of up to $10,000 or a dollar-for-dollar match up to $10,000 to qualifying homeowners in Youngstown to improve and update the exterior of their homes and address any currently cited or potential code violations against the property. There are $3 million in ARPA funds allocated to this Residential Façade Program. The intention of the program is to stabilize and increase the value of homes throughout the city, creating neighborhoods that are visually inviting and representative of residents’ pride.

The final program has been allocated $2 million of ARPA funds for a revolving loan fund to provide resources to landlords to undertake renovations, repairs or address code violations. Eligible landlords can apply for a low interest loan of up to $50,000 for each repaired or renovated property. A single landlord is capped at $100,000. The terms of the loan includes a low, two-percent interest rate for up to a 60 month term. Landlords that wish to apply for the Landlord Revolving Loan Fund program are to apply through 7 17 Credit Union.

“We are proud to partner with 717 Credit Union, who has proven to be a true community champion, for such an important initiative,” said Youngstown Mayor Jamael “Tito” Brown. “Helping Youngstown residents achieve the dream of home ownership represents a major step forward for so many in our community.”

It is anticipated that the Residential Façade Program and the Landlord Revolving Loan Fund programs will be available late winter. The Youngstown Affordable Loan program will be available in the spring.

To further assist with enhancing rental properties, 7 17 is also developing a loan refinance program for owners of single or multiple unit rental properties. A refinance of existing debt may offer a lower monthly payment. A reduction in a monthly payment can supplement the repayment of the Landlord Revolving Loan Fund loans.