HAGÅTÑA (The Guam Daily Post) — With $500,000, the Guam Housing Corp. can open up an escrow savings account that will help open the door to homeownership for low- and moderate-income residents.
The money was made available with Bill 107-37, signed into law as Public Law 37-75, “which appropriates $500,000 to the Guam Housing Corp. to fund and maintain the GHC-Rural Housing Service Escrow Savings Account for affordable housing,” Sen. Joe San Agustin, the law’s author, said in a press release.
The law helps to fulfill GHC’s side of the agreement in a memorandum of understanding with the U.S. Department of Agriculture Rural Housing Program.
“Currently, Chamorro Land Trust families are offered two forms of financial loan assistance with the Guam Housing Loan Program and the Native American Veteran Program. An updated MOU between GHC, CLTC and USDA is being drafted and, once adopted, will expand the financial opportunities for Land Trust families with this third financial program,” San Agustin said in the release.
Attaining homeownership in today’s real estate market has become a distant dream for many, requiring a 20% down payment on an average single-family dwelling listing on the low end at $350,000.
“Sen. San Agustin is hopeful that these families will utilize the services and financial opportunity to achieve safe and livable housing,” the senator’s office said in the release.
“This new opportunity allows our CLTC families to go from renting to homeownership. I wanted to find a way to help uplift our people with the opportunity to become homeowners. As a leader deeply rooted within the community, I stand committed to finding ways to provide our island residents with the essential tools for growth and create a lasting impact.” San Agustin stated.
The MOU in place between GHC and the Rural Housing Service relates to making, guaranteeing and servicing USDA RHS single-family housing loans on Guam.
“With the MOU in place, GHC will facilitate and support the provisions of the USDA housing assistance programs in Guam, which they will serve the roles provided in the MOU and to serve as the guarantor of the RHS Secured Section 502 and Section 504 loans,” the law states.
The escrow savings account required by the new public law protects the federal government from losses.
“To provide a source of funds to protect RHS from borrower defaults on RHS loans in Guam. Laws of Guam permit such escrow savings account to be created and maintained. Also, GHC bylaws authorizes such escrow savings account. GHC is required to make an initial minimum deposit of $500,000 into the GHC-RHS escrow savings account and must ensure that such funds are not pledged or taken for any purpose other than serving as a reserve to partially satisfy GHC’s obligations under the MOU with USDA RHS,” the law states.
The construction site of a home made of shipping containers and concrete is seen Tuesday, April 25, 2023, in Sånta Rita-Sumai.
