The City of Newark, Newark Housing Authority, and Invest Newark, Newark’s Economic Development Corporation, have launched a first-of-its-kind program to provide eligible Section 8 recipients, with the opportunity to use their vouchers to purchase their first home.
It is a pilot program of the Land Bank created by Mayor Ras J. Baraka, the Municipal Council and administered by Invest Newark.
The “Section 8 Homeownership Conversion Program,” is a partnership of public and private sector stakeholders to increase homeownership opportunities for low-and moderate-income families.
The program focuses on investing in existing neighborhoods, utilizing local minority and/or women-owned business enterprises contractors and building the wealth of Newark residents.
“Increasing homeownership for Newark residents, regardless of income level, is one of the important reasons why we created the Land Bank,” Mayor Baraka said. "Through this partnership with Invest Newark and the Newark Housing Authority, numerous residents will enjoy the independence and empowerment of achieving the American Dream of home ownership."
As part of the pilot program, Invest Newark acquired three blighted properties from the City of Newark that will be rehabilitated by three local developers.
The properties will then be sold to qualified recipients through a lottery process for $190,000 with a 20 year, 4% interest mortgage. The Section 8 Homeownership Voucher will then be used to subsidize the participant’s mortgage.
In the coming weeks, the Newark Housing Authority will begin opening the lottery process to pre-qualified residents, with notices posted online and in local publications.
Those selected to participate will also undergo a first-time homeowner program to increase their knowledge and prepare them for the remainder of the process.
The program’s goal is to create 150 new single-family homes in all 20 of Newark’s neighborhoods.
“Owning a home is the cornerstone of the American Dream, providing families with emotional and financial stability as it builds wealth,” Allison Ladd, Deputy Mayor and Director of the Newark Department of Economic and Housing Development, said. “This exciting and innovative Land Bank project will help to create strong, stable and safer communities.”