APB Archives

HOUSES AND BUSSES (Dec 13, 03)

FROM THE SACRAMENTO BEE

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A friend sent this article. I thought you might like to read it.
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BUYING HOMES NEAR TRANSIT SITES GETS EASIER

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By Tony Bizjak -- Sacramento Bee Staff Writer Wednesday, December 10, 2003
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Sacramentans who purchase homes within a half-mile of a light rail station or a quarter-mile of a bus stop now are eligible for a boost in the size of the mortgage they can afford. A national program called "Smart Commute,"
introduced in Sacramento on Tuesday by U.S. Sen. Barbara Boxer, D-Calif., allows home buyers to qualify for mortgages about $14,000 greater than their income otherwise would support.
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It is sponsored by Fannie Mae, a private mortgage agency commissioned by the federal government to increase homeownership nationwide. Sacramento Regional Transit and the Sacramento Housing and Redevelopment Agency have signed on as co-sponsors. Fannie Mae official Michael Carroll said the theory behind the program is that people who move near transit stops can save car costs by using public transit instead to get to work.
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Those "potential" savings -- estimated by Fannie Mae at about $200 a month on average -- would then be counted by program administrators as extra income for mortgage qualification purposes. Regional Transit officials said they support the program because it encourages more people to live near transit stops, making it easier for transit to serve as a viable option to move people around.
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It marks a notable step by transit officials into more participation in land-use planning. RT officials say they are trying to take a more active role in encouraging planning that allows more people to live and work near light rail stations. "You can put as much investment in (buses and light rail) as you want, but if we don't have the support of land use, it is public money down the hole," RT General Manager Beverly Scott said. RT officials said they will give qualified buyers free transit passes for the first three months. Housing officials say the "Smart Commute" concept also gives a boost to some families who otherwise might fall just short of being able to afford a house.
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People whose income is below 80 percent of the area median earnings estimated at $47,850 for a family of four in Sacramento -- also are eligible for two ongoing programs, one local, one national, that further help first-time buyers on their down payments.
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The introduction of the "Smart Commute" program by Boxer makes Sacramento the 14th city in the country and first in California to participate in the 2 year-
old program. Fannie Mae mortgage officials chose Sacramento because it is
"forward-thinking" and is "encouraging good planning around transit stops," said Carroll, the agency's Central Valley director.
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Flagstar Bank, a national mortgage broker, has signed on with Fannie Mae to offer mortgages under the program. The temporary phone number for the program at Flagstar is ([deleted]). Nationally, the program has sold $9 million worth of loans, a Fannie Mae representative said.
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