About 500 affordable homes will be needed in the Austin area over the next five years, Austin City Council-man Dick Lang told the League of Women Voters on Monday.

Tuesday, November 28, 2000

About 500 affordable homes will be needed in the Austin area over the next five years, Austin City Council-man Dick Lang told the League of Women Voters on Monday.

In acknowledging the lack of available affordable housing in the area as a big issue, Lang said that Semcac has helped purchase older homes with the help of the Austin-Mower County Home Ownership Fund, remodeled them and then sold the homes with no interest.

In addition, Lang told how 160 homes have been purchased with the fund already, with local real estate agents acting as facilitators.

The ownership fund was created as a revolving fund in March 1997 through equal donations totaling $150,000 from the city, Mower County and Hormel Foods Corp.

Similar donations were added to the total over three years, bringing the fund to $500,000 with interest. At that time, donations were discontinued and the fund moved into the payback phase, as low- to middle-income homebuying loan recipients began making payments.

Loans carry an interest rate of 2 percent and are enforced with second mortgages and an attached personal note.

The only requirement for inclusion in the program is residency in Mower County.

"In buying homes here," Lang, a former league member, said, "they build equity in the county."

The city, Apex Austin, the Greater Minnesota Housing Fund and private developers are working to bring sewer and water to areas in need and those ripe for building. The hope is that more private developers than governmental funds will aid Austin in its growth, Lang told league members.