Logansport officials OK homebuyer assistance program

The agreement is between the city and Fort Wayne-based High Performance Government Network. The nonprofit organization runs a multi-city housing partnership available to cities and counties in the state to provide a homebuyer assistance program. According to the agreement, the program offers mortgage loan and financial assistance to qualified borrowers.

George K. Baum & Company, a financial planning firm, will serve as program administrator and will provide mortgage banking expertise to recruit and educate lenders on the initiative, according to the agreement.

The program will offer grants and second mortgage loans originated by participating lenders to eligible borrowers, the agreement goes on to state. Funds will be used to help finance home purchases by paying part of down payments and closing costs.

Loans will be sold to mortgage loan company Freddie Mac “or pooled into mortgage-backed securities and sold into the secondary mortgage market” at no risk to the city, the agreement continues.

The agreement indicates the city of Logansport gets a portion of the program’s administrative fees drawn by mortgage loans purchased through the program.

Logansport Mayor Dave Kitchell said Tuesday that a third party would have to administer home ownership and budgeting classes the program offers. He added Area Five Agency on Aging and Community Services has done so in the past.

At least one local bank is interested in exploring participating in the program.

Terri Riley, vice president/ mortgage loan officer with Security Federal Savings Bank in Logansport, said Tuesday that she’s very interested in learning about the possibilities High Performance Government Network offers as well as partnership opportunities.

Riley said the bank is familiar with the goals the homebuyer assistance program sets out to achieve. In the past, she said the bank has partnered with

Area Five Agency on Aging and Community Services to provide local housing and has provided grant funds from the Federal Home Loan Bank to qualifying first-time homebuyers. She added the bank has provided home ownership classes in the past as well.

Logansport City Council approved the agreement 6-0 with one abstention Monday.

City Councilwoman Teresa Popejoy praised the program at the meeting for helping first-time homebuyers at no cost to the city.

“It’s certainly a hand up for those who might need it,” she said.

City Councilman Dave Morris said Tuesday that he abstained because he was on vacation when council members discussed the agreement in committee.

“It may be a great idea but I just don’t like to vote on something when I don’t know what I’m voting on,” he said. “...I had read through the contract numerous times but I didn’t feel like last night was the night to ask 50 questions.”