Los Angeles’ housing department has received a hefty $26.8 million grant to support its subsidized-tax mortgage program from the California Debt Limit Allocation Committee, the state agency in charge of allocating certain tax breaks.
The Housing & Community Investment Department of Los Angeles (HCIDLA)’s Mortgage Credit Certificate program assists low- and moderate-income residents in purchasing their first home by giving them federal income tax credit of 20% of their annual mortgage interest when they file their federal income tax returns each year, typically for 30 years.
Not only does this put more money in homeowner pockets, but home-purchasing eligibility also rises due to lower mortgage tax interest. Recipients can combine the credit certificate with Los Angeles’ own down-payment purchase assistance programs.
“We are excited to receive these funds that will help up households in the city achieve the American dream of owning a home,” Rushmore Cervantes, the general manager of the Housing & Community Investment Department of Los Angeles, said.