Tucson program will cover home closing costs for 250 essential workers
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The city of Tucson and the Tucson Industrial Development Authority are launching a program to help cover closing costs on homes for an estimated 250 essential workers.
The Essential Workers Housing Fund will launch June 1 and provide up to 1% of the first mortgage loan amount — or up to $2,500 of a down payment on a home.
Tucson Mayor Regina Romero says the choice to focus the program on essential workers is a form of thanks.
“Essential workers sustained our economy during the pandemic, and now is our turn to support them during the home buying process,” said Romero.
Romero says the city is using the Centers for Disease Control and Prevention definition of “essential worker,” both medical and nonmedical, so more people are eligible to apply.
“It includes police officers and firefighters, as well as healthcare workers, teachers, grocery store workers. It's a broad definition that will serve the people that kept us safe during the pandemic and kept our economy moving,” said Romero.
Dre Thompson is the CEO of the Tucson Industrial Development Authority. She says the fund is expected to provide payments within the first week.
“We've already had 1.6 million people get eyeballs on the program. We've had thousands of folks come to the website, submit and get information,” said Thompson.
Thompson says the project is being linked to an existing city program to distribute money quickly. Those behind the fund understand that purchasing a home is a time-sensitive issue.
“Every minute and every day counts, because now, it's not only that housing prices are skyrocketing, but also interest rates. And so, every day counts from now on for these essential workers,” said Romero.
Thompson says the fund currently sits at $625,000, and is expected to last at least six to 12 months and that the authority is still fundraising with hopes to provide more payments.
She says a potential challenge for the program is that applicants must have already been approved for a mortgage and have a house in hand. She says interested parties would apply through their mortgage lender.
“We expect, at the beginning, people learning about the program, that's going to help them weigh and make decisions, whether they are ready to purchase a home,” said Thompson.
In April, median home prices in Tucson were up 21.1% from last year, at $365,000.
