GARY — The Gary Common Council is considering using American Rescue Plan Act funding to create a new down payment assistance program.

Under the proposed program, first responders, which include Gary police, fire and emergency medical services personnel, would be able to receive up to $30,000 in down payment assistance. Almost all other Gary residents would be able to receive $18,000 in assistance, however priority would be given to city employees, teachers and veterans.

The programs' only caveat would be that residents living in two of the city's census tracts, the tract containing the Miller neighborhood and the tract between Grant Street and Broadway Avenue near the historic Morningside neighborhood, would only qualify for assistance if they make less than 65% of the Area Median Income. AMI is the midpoint of an area's income distribution, meaning half of families in a community earn more than the median and half earn less.

During a Tuesday evening Ways and Means Committee meeting, Gary's Director of the Community Development Department Arlene Colvin said 65% of the city's AMI would be $38,391 for a single-person household and $54,844 for a four-person household.

“We’re trying to increase homeownership and we want to stabilize neighborhoods," Colvin said during the Tuesday committee meeting.

Residents who receive down payment assistance must live in the home for at least five years and the property must be their primary residence. Colvin noted that the city has a number of other housing assistance initiatives including the Hoosier Homes Down Payment Assistance Program which provides down-payment assistance grants to repeat and first-time home buyers. Applicants must have an income that does not exceed 140% of Lake County's median income, or $105,700; a minimum credit score of 620; and an income-to-debt ratio of 50% or higher.

"I'm looking forward to supporting this and I hope my colleagues do as well," Ways and Means Committee Chair Tai Adkins, D-4, said.

There will be a public hearing for the ordinance during the April 4 Gary Common Council meeting. If the council approves the legislation, Colvin said the program could go into effect within the next month.
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