The EDA provides a loan guarantee for the contractor's private financing of the acquisition and rehabilitation. The loan guarantee provides the needed security for private lending institutions to loan on very dilapidated houses in tough selling markets and also enables contractors to obtain more favorable loan terms. Down payment and closing cost assistance is provided by the EDA to first time homebuyers, making it possible to sell the rehabilitated units in the city's revitalization area. The ARR Program has produced significant benefits to the new homebuyers. The new homeowners have a lower property maintenance requirement in time and cost.
Monthly payments are just above the current rent payment, thus allowing renters to become owners.
The formerly blighted properties become owner-occupied, thus creating more stability in the neighborhood. The rehabilitated houses provide a quality standard for the neighborhood and a home that the new homebuyer can be proud to own. The funds were used to provide downpayment assistance to buyers. The wonderful aspect of the ARR Program is that no public funds are used for the acquisition and rehabilitation of these properties. Families and the creation of safe and decent neighborhoods are the most important components of our mission statement.