A city in western Massachusetts is launching a unique program to encourage landlords to live in the multi-family homes they purchase.
The buyer of a three-family home in one of three designated neighborhoods in the city of Chicopee could receive $16,000 from the city towards the down payment. The catch? They must agree to live in one of the apartments of that house.
Chicopee Mayor Richard Kos, at a news conference Wednesday, announced the launch of the program he said was intended to improve the condition of the city’s older multi-family housing stock and improve neighborhoods where many apartment houses are owned by absentee landlords.
"Nothing speaks to better housing and improved conditions than owner-occupied housing," said Kos.
The incentive comes in the form of a no-interest loan with $1,000 forgiven annually. The balance of the loan would have to be repaid to the city if the property is sold, or the owner moves. After 16 years the loan is forgiven.
To qualify for the city funds, buyers must secure a conventional mortgage from a participating lender in the city’s program, but there are no restrictions on the buyer’s income.
"If a buyer had income of $400,000 why not let them buy a three-family home. They would have more means to make more improvements to enhance the neighborhood," said Kos.
The program participants must agree to bring the property they purchase up to code and adhere to health and safety rules. The city will require an annual proof-of-residency.
Kos, recalling how he grew up in an apartment house that his family owned, said landlords who live at the property they own become part of the social fabric of neighborhoods.
" All the police and health and building code officials won't have the same affect," he said.
The Chicopee City Council approved $96,000 to fund the program for one year, according to council president George Moreau.
" This is program that should be on-going. I am very supportive of it," he said.
Chicopee Savings Bank and the Polish National Credit Union are the only banks that have so far agreed to participate in the program. Chicopee Savings president Bill Wagner praised the initiative which he described as “outside the box.”
The program targets the three city neighborhoods of Chicopee Center, Chicopee Falls and Willimansett, according to the city’s housing specialist Kathleen Lingenberg.
" The mayor asked us to analyze our home-buyer assistance programs and determine where those federally-funded programs were not able to meet the needs of Chicopee residents and needs in our three-family ( housing) stock came to the forefront," she said.
Details about the program are available from the city of Chicopee’s Planning Department.
City officials are planning to hold an informational meeting with realtors.
