An initiative designed to make homeownership a reality for Atlantic City’s population is underway and those interested can apply for consideration to buy several homes in the coming weeks.
Atlantic City Mayor Marty Small Sr. recently held a news conference to announce the city’s First-Time Homebuyer Lottery Program. The first homes that will be available through the plan are in Venice Park, a western neighborhood of the city.
The program is a partnership between Atlantic City, New Jersey Community Capital (NJCC), OceanFirst Bank, the Atlantic County Improvement Authority (ACIA) and the Atlantic City neighborhood Community Development Corporations (CDCs).
The ten multi-bedroom homes in the program’s first wave, which cost approximately $400,000 to construct, can be purchased by potential lottery winners for approximately $175,000. Depending on eligibility, applicants may be able to reduce the price even more through additional first-time homebuyer programs.
Atlantic City is investing $1 million in the ten total properties that will kick off the program, while NJCC is kicking in a $100,000 subsidy. The ACIA, CDCs and Atlantic City’s Community Development Block Grant Office will also contribute money towards the initiative.
The lottery is restricted to residents of Atlantic City who may be asked to provide their credit score, place of employment, verification of housing counseling certificate, and verification of pre-qualification of mortgage loan as part of the application process.
The program does come with a few strings attached. Applicants will be required to live in the residence for a period of no less than 15 years and cannot lease any portion of the property as a short-term rental. The equity built into the property cannot be mortgaged under the deal, and prospective candidates must take and complete a first-time homebuyer’s course from a certified counselor.
“We are investing in the fabric of our community with this program,” said Mayor Small. “If we say we want developers to come into Atlantic City and build here, and we want to create new homeownership opportunities, charity starts at home. We’re creating brand new taxpayers who are going to be supporting our local economy, which is why this program is so vitally important.”
Applications for the first four properties will be available on the Atlantic City website starting on August 5. The other six properties in the first round of the program will be built by NJCC and application details will be announced at a later date.
Applications will first be vetted by OceanFirst Bank and those that meet the qualifications will be entered into a lottery conducted by NJCC. Further questions on the first-time homebuyer lottery program can be directed to the City of Atlantic City Department of Planning and Development at 609-347-5404.
