NRHA Receives $13 million SPARC Grant

For More Information: 

Kelly R. Williams
kwilliams@nrha.us
757.314.1645

For Immediate Release
Release Date: 
Mon, 07/21/2008

Norfolk, VA (July 21, 2008) – Norfolk Redevelopment and Housing Authority (NRHA) will receive funding for first-time low- to moderate-income and market rate homebuyers. The Virginia Housing Development Authority (VHDA) has announced that $13.2 million in funds, the largest amount designated to any authority in the state, will be allocated to NRHA to finance affordable homes in the city.

The funds are through VHDA’s Sponsoring Partnerships and Revitalizing Communities (SPARC) program, which provides loans, below market rate, to first-time homebuyers through special allocations made by local housing groups. This funding, allocated annually on a competitive basis, is to assist housing groups in addressing critical housing needs in their communities. SPARC funding allows organizations to receive allocations at 0.5 to 1 percent below VHDA’s First Time Homebuyer Program rate. NRHA’s entire allocation was awarded at one percent below the VHDA fixed rate.

The NRHA HOME Program was awarded $5.8 million for eligible low- to-moderate income homebuyers and the HomeNet Homeownership Center was awarded $7.4 million for eligible market rate homebuyers. Income limits apply to both low- to moderate-income and market rate homebuyers.

The awarded allocation will enable NRHA to approve a one percent discounted interest rate for eligible first-time homebuyers to purchase new construction homes in the City of Norfolk with below market rate 30-year mortgage loans that offer a more affordable monthly mortgage payment.

Approximately 81 first-time homebuyers are expected to benefit from the awarded allocation. Based on VHDA’s current fixed rate of 5.625 percent, an eligible homebuyer’s rate would be 4.625 percent, reducing the principal and interest payment by 11 percent. It is projected that the awarded allocation will provide up to a $4 million in principal and interest payments for all of the homebuyers assisted.

NRHA combines SPARC funds with other local, state and/or federal loan and grant programs to design a variety of financing options that meet the needs of first-time homebuyers purchasing within Norfolk.

In addition to a discounted SPARC interest rate, eligible first-time homebuyers with a gross annual household income at 50-80 percent of the area median income limit can also qualify for a “soft second” forgivable no monthly payment loan through the NRHA HOME Program, which provides down payment and closing costs assistance. For more information regarding HOME related SPARC monies and HomeNet related SPARC monies at NRHA, contact Rebecca Burrus at 757-314-2108 or rburrus@nrha.us. For general information regarding the SPARC program, call the Virginia Housing Development Authority at (877) VHDA-123 or visit its website at www.vhda.com.

About VHDA

The Virginia Housing Development Authority is the state’s mortgage finance agency. Created in 1972 by the Virginia General Assembly, VHDA’s mission is to help low- and moderate-income Virginians attain quality, affordable housing. VHDA’s vision is to be the Leading Mobilizing Force for Affordable Housing in Virginia®.

About NRHA: 

Founded in 1940, NRHA is a national leader in community revitalization and fostering sustainable mixed-income communities. As the largest redevelopment and housing authority in Virginia, NRHA plays a key role in making Norfolk the city of choice to build, work, live and play.

©2017 Norfolk Redevelopment and Housing Authority  NRHA Webmail

NOTICE OF NONDISCRIMINATION - NRHA provides equal housing and employment opportunities for all persons. NRHA does not discriminate against any applicant, resident or employee on the basis of disability, age, race, color, religion, gender, familial status or national origin in the admission, access or operations of programs, services or activities. NRHA complies with Title VI of the Civil Rights Act and the Americans with Disabilities Act. An internal grievance procedure is available to resolve complaints. If you feel you have been discriminated against, you have the right to file a complaint of discrimination  by calling toll free (888) 799-2085. Qualified individuals who need communication aids, services or other accommodations to participate in programs and activities are invited to make your needs known to the 504/ADA Coordinator, Kim Thomas (757) 623-1111. Please give NRHA at least seven to ten days advance notice to meet your needs