Nevada County Picayune and Gurdon Times Newspaper Archive

Buy-Down Program Begins

Housing in Clark County was a problem before the March 1, 1997, tornadoes ripped through the county.

When these storms came through, the problem was compounded as homes were demolished.

Once the recovery effort began, the first issue to be addressed was housing for those who were essentially left homeless by the storms.

Because of this problem, area officials worked diligently on a long-term solution an equity buy-down program.

What began as a vision to help those in need took the first steps to becoming a reality Thursday, July 16, when ground was broken for a new home under the program on Cutler Street.

The home is partially financed through the equity buy-down program. This program provides an interest-free second mortgage for home buyers, which can be forgiven if they remain in the residence for seven years.

The first family to take advantage of the program was Johnny Joe and Tanya Jackson. They lived in the neighborhood when the tornadoes hit and destroyed the house they were renting at the time.

Following the twister, the family purchased the property, signing the papers recently to finance the construction of a new two-story home.

According to Blain Smith, director of the Arkadelphia 2025 Commission, the equity buy- down program was designed to promote rebuilding and home ownership in tornado-affected areas.

It is administered by the City of Arkadelphia and overseen by a board of directors. Area banks are also involved in the equity buy-down program, including Elk Horn, Mercantile and Citizens.

Applications are available for those wanting to take part in the program. They can be picked up at the Arkadelphia City Hall during regular business hours. Anyone planning to build in areas hit by the tornadoes are eligible.

Potential homeowners can borrow up to 30 percent of the purchase price of a home to be financed as a second mortgage. Should they live in the house for seven years, this debt is forgiven, becoming a grant which is not paid back.

However, the grants for this program are only available for single family homes.

First priority, Smith said, is given to families planning to live in the homes they build. But, applications will soon be available for those property owners wanting to build rent houses.

"This is the first program of its kind in the nation," Percy Malone, state representative, said. "It's a test to see if we can rebuild our neighborhoods the way we think we can."