The Bank of Greene County has a new loan program that is the latest idea in a multi-pronged approach to addressing the affordable-housing crisis in Woodstock at the same timer that other efforts are also being pursued.
The bank and the Woodstock Housing Alliance have launched a low-interest loan program to provide financing of $5000 to $20,000 to help with the construction costs of affordable accessory dwelling units (ADUs).
Called the Affordable ADU program, the loan is funded with $175,000 in seed money from the federal American Rescue Plan allocated by the town board early this year.
The program will benefit eight to 15 eligible property owners in its first year to build kitchens, purchase appliances, or pay for other construction costs.
The Bank of Greene County drafted the application, came up with the criteria, and will review each loan request.
“And so they’re basically doing everything up to the awarding, and then they award the loan,” said Woodstock Housing Alliance founder and executive director Kirk Ritchey. “And then they provide reports of any information on whether a person has fallen behind or if they’re approaching default. And we are able to intervene or find out more information if necessary.”
The WHA can help answer questions before people apply and then refer them to the bank.
The loan payments won’t start for six months, giving the property owner time to find a tenant and collect rent to help pay off the loan.
“The hope would be that the work could be done prior to the payments beginning, and then rent could be then used to pay for the loan rather than the person having to pay out of their bank account,” Ritchey said. “We’re glad that the bank extended that. It was actually the bank that proposed that delay in the payments of the loan. We immediately thought it was a great idea.”
Ritchey said the loan program was ready to begin. The Bank of Greene County will administer the loans. The WHA will help identify qualified residents. Upon loan approval, the WHA will assist in locating qualified contractors.
“This is a first step toward enabling more affordable housing in Woodstock, so sorely needed by our workforce, young families, seniors, and others who are facing the exorbitant cost of housing,” Ritchey said.
Trisha Lamb, Bank of Greene County vice-president and director of residential and consumer lending, is on board. “Creating additional living space to rent, upgrading utilities, and improving homes are vital to support the community,” Lamb said.
Loan-program participants must agree to an affordable rental rate for the duration of the loan.
In another program, HomeShare Woodstock matches homeowners who wish to stay at home but need assistance with maintenance or daily chores or who just want companionship with those seeking a place to rent. The tenant provides work or assistance in exchange for lower rent.
All participants in HomeShare Woodstock are invited to participate in the Affordable ADU program.
Making town-owned properties ready for housing development by providing the necessary infrastructure planning is yet another Woodstock initiative backed by ARP funding.
Finally, the town board is actively pursuing a series of zoning amendments aimed at making the building of affordable housing more palatable to developers.
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