City, bank officials tout program to boost Las Vegas homeownership
Las Vegas’ housing market, among the worst in the nation, will get a boost from a new homeowner assistance program.
On Wednesday, officials from Wells Fargo bank and the city of Las Vegas announced that about $9 million will be available for people seeking to buy houses.
The bulk of the money, about $7.2 million, will be available for grants of up to $15,000 for prospective buyers to use as a down payment. An additional $1.15 million will go to the city for housing programs.
The money comes from the Wells Fargo Foundation, a charitable arm of Wells Fargo bank. Last year, the foundation invested $213.5 million in nonprofits nationwide.
The money announced Wednesday will go to Neighborhood Housing Services of Southern Nevada, which will evaluate people for eligibility.
The idea, according to bankers and city officials, is to help the local housing market recover from an epic real estate market crash that has sapped homeowners throughout Southern Nevada of their equity.
Las Vegas is one of four U.S. cities chosen for Wells Fargo’s Neighborhood LIFT program, which aims to drive $1u2007billion in housing investment nationwide within five years.
"There are some beautiful homes sitting vacant in desperate need of some new families," said Councilman Steve Ross, whose Ward 6 in northwest Las Vegas is among areas in the nation hardest hit by foreclosures and widespread depreciation.
City officials have been frustrated in recent years by the impact on neighborhoods of thousands of houses going unoccupied and untended and becoming a blight.
They have established a registry for foreclosed properties to keep tabs on houses and alert owners, often big banks or distant companies, before they fall into disrepair.
For the most part, officials are helpless to blunt the damage to neighborhoods caused by empty houses and falling or stagnant home values that dissuade investment.
According to SalesTraq, an Applied Analysis company, there have been nearly 5,000 foreclosures in Las Vegas in the 12 months ending in March.
The announcement of the new home-owner assistance program at Las Vegas City Hall was an attempt to attract attention to the program. Applications will be taken May 4-5 at the Riviera.
Under the rules of the program, people who make up to 120 percent of the area median annual income can qualify. That’s about $79,200 for a family of four.
Other requirements are staying in the house for five years and being able to qualify for a mortgage with Wells Fargo or another lender.
Sandy Streator, regional sales manager for Wells Fargo Home Mortgages, said houses valued at up to $300,000 could be bought through the program, but houses owned by Wells Fargo aren’t eligible.
Streator said the program is different from the infusion of capital into the housing market during the years leading up to the explosion of the housing bubble around 2008.
That is because lending requirements are tighter and banks are more cautious to ensure a mortgage is sustainable.
"A lot of people are afraid to get back into the market now," Streator said. "We are hoping this encourages people to go into homeownership again."
Wells Fargo officials estimate that at least 425 people can qualify for grants, which can be combined with other forms of assistance.
The city of Las Vegas Department of Economic and Urban Development offers down payment assistance with funding from the federal government.
Under that program, according to Tim Whitright of the city’s Department of Neighborhood Services, people can qualify for up to $50,000 of assistance, although he said awards average about $20,000 to $25,000.
Contact reporter Benjamin Spillman at bspillman@ reviewjournal.com or 702-224-5512.
HOW TO APPLYFor more information on how to apply for as much as $15,000 in down-payment assistance from Wells Fargo, call 866-858-2151, or attend the Neighborhood LIFT event May 4-5 at the Riviera. The event is from 10 a.m. to 7 p.m. in the Royale Ballroom.
Register online at www.neighbor hoodlift.com.
