Glens Falls has won a $449,000 grant from the New York State Homes and Community Renewal agency that will help low- and moderate-income people move from renting to home ownership. At least one banker is saying the timing is right.
Soaring apartment costs have shrunk the potential gap between rent payments and mortgage payments, making this an excellent time for many renters to transition into home ownership, said Tom Connors, Vice President of Mortgage Origination at Glens Falls National Bank. The program can make home purchases more affordable because qualifying purchasers put down only 1% of their own money toward the down payment.
“The big stumbling block with buying a new home is the cash requirement – the down payment, closing costs, mortgage insurance,” Connors said. “Grants like this are great for first time homebuyers, especially younger people. It helps get them into a property without a whole lot of money out of pocket.”
The HCR grant reaches beyond Glens Falls to all of Warren County. Consultant C.T. Male Associates has worked closely with the city for years in the writing and administration of these grants. The company estimates that the HCR grant will benefit nine Glens Falls households and six additional households elsewhere in Warren County.
The money is distributed on a first come, first served basis over the grant's term of 30 months.
“If we make good progress with the Home Grant, we will look to reapply again in late 2023,” said Jim Thatcher, Manager of Community Development for C.T. Male. He works closely with the city. This is the first HCR grant the city has won since 2018.
Glens Falls National Bank services a number of loans funded through the HCR grant and other similar programs.
“We do a lot of work in the affordable lending space so we understand how these loans work,” says Lisa Atkins, CRA Loan Originator at the bank. “For borrowers, it’s nice to know the people handling your home mortgage transaction are local and easily accessible.”
Another possible stumbling block for the program may be the dearth of houses on the market. The Glens Falls area has seen double-digit increases in home values year-over-year during the pandemic with fewer homes on the market, as buyers sought to move out of the city or to purchase second homes.
Warren Economic Development Corporation President Jim Siplon says the related issue to this is that fewer people live in the homes that exist. This means that empty-nester couples and older single people are staying in their homes much longer than they used to. The normal progression would see an elderly home owner move out of the area or downsize, opening the family home to sale. The average home in the county now has 2 people instead of the 4.6 it once had.
"There's less inventory and it's getting pricier," Siplon said. A year, or so ago, he said the southern Adirondacks region had about 60 to 70 homes on the market under $300,000. Now, he said, there are less than 30 in Warren County.
"The point is that this problem is not relenting," he said, adding that the pandemic made the situation worse, but it had already been bad. He said the housing shortage has taken decades to occur, it will take more than one budget cycle to repair it.
"This [the grant money] is a step in the right direction, but it's one of 20 things that need to happen," Siplon said.
The city has also been awarded $481,000 in federal Community Development Block Grant funding. The money is an entitlement grant. A payment is made to Glens Falls annually, but the exact amount changes from year to year.
“These grants allow us to help the people that need it and the communities that need it,” said Patrick Dowd, Director of Community Development for Glens Falls. “The CDBG funding alone has enabled us to help a dozen or more people in just the last three months.”
Qualifying CDBG projects address needs such as infrastructure, housing rehabilitation, public services, and homeowner assistance.
According to Glens Falls officials, 15% of the CDBG money is budgeted for local nonprofits including the YMCA and the Tri-County Literacy Center who provide certain services that may not be available through the city.
This year’s CDBG funding covers projects through July 31, 2023.