Arlington, VA -- Arlington County has been awarded a $7 million dollar commitment of funds that will provide affordable mortgages to the county's low to moderate income residents and municipal and school system employees.

Arlington's allocation is the largest of 32 awards totaling approximately $46.2 million made available by VHDA's innovative new "Sponsoring Partnerships and Revitalizing Communities" (SPARC) program. The loan program uses mortgage revenue bond funds to provide financing at ½% (percent) lower than VHDA's standard below-market rate. The county's allocation will be combined with other local and national funding to provide low-interest financing, down payment and closing cost assistance for potentially 50 homeowners. Proposals under the SPARC Program statewide will result in approximately 525 affordable home purchases across Virginia.

"We are thrilled to leverage VHDA's funds to address critical housing needs in Arlington," said Doug Myrick, Arlington's homeownership program coordinator. "Currently, only 27 percent of county employees live within the jurisdiction, and many of them cite the high cost of housing in Northern Virginia as a deterrent to homeownership," Myrick said. "The combination of the various funding resources will greatly help to resolve some of these issues."

VHDA Commissioner Allen Jones agreed. "With a comprehensive program such as this, we are able to take positive steps to alleviate some of the housing problems faced by the low-income residents across the state," he said.

"On a local level, I think it's great that some of our county and school employees will be able to buy a home inside the beltway," said Jones, a longtime Arlington resident.

The SPARC program encourages partnerships in the housing industry by allowing localities, housing authorities, developers and housing advocates to custom design loan programs that will address the critical housing needs of their communities.

The Arlington plan proposes to help residents with very low incomes. A pilot program would move 20 of these households from rental to homeownership. Applicants will be able to take a free VHDA Homeownership Education Course, the county's Condominium Education Course and have their credit report profiles evaluated to determine creditworthiness.

"It is a wonderful example of how we can use creative resources and form partnerships to increase affordable housing opportunities during a time when available cash supplies are dwindling." said Susan Dewey, VHDA's executive director.