PEP, September 2010: New homes for members with union help

Three members bought their first homes and will receive up to $8,000 in federal tax credits with help from DC 37's Municipal Employees Housing Program.

"Who would have thought that a single parent like me would have a chance at all this on my salary?" said Public Health Advisor Vernell Gibbs, a Local 768 member who closed in May on a two-bedroom apartment in a new 10-story Bronx co-op.

The Internal Revenue Service reports that more than 2.9 million first-time buyers like Gibbs and 1.5 million repeat homebuyers have applied for the Obama housing tax rebate, helping to jump-start the ailing housing market.

A breakup prompted Local 1407 member Jimmy Lee to relocate from Manhattan to Rego Park, where he bought a one-bedroom co-op. The move offers Lee a fresh start on a quiet street in a bustling section of Queens.

Retired Senior Librarian Elizabeth White's five-year house hunt ended with gratitude for her union and ticklish disbelief at her luck in landing a two-bedroom flat in a newly converted Brooklyn co-op. As she unpacked, White admired the view of the Empire State Building from her living room window.

Gibbs, Lee and White learned about MEHP in the Public Employee Press and attended housing seminars at the union. With advice and a little hand-holding, MEHP Coordinator Jorge Ortiz helped them get mortgages through the program's participating lenders and grants toward closing costs for those who qualified. And each saved $2,000 by using attorneys from DC 37's Municipal Employees Legal Services.

Obama tax credit

Under the July extension of the deadline on President Obama's housing tax credit, first-time home buyers with contracts in place earlier have to Sept. 30 to close on their home purchases and qualify for up to $8,000 for first-time home buyers and $6,500 for others in federal tax credit. MEHP urges buyers to use professional tax preparers.

"Owning beats renting," said Lee, a city Bookkeeper. "I get to build equity and there is more pride in owning. In the long run I am building my future."

To help members squeezed by the shortage of affordable housing, DC 37 Executive Director Lillian Roberts founded MEHP in cooperation with the city Housing Preservation and Development Dept. MEHP helps municipal employees get discounted state mortgage loans, federal Section 8 grants, HPD Home First grants and low-interest, fixed-rate mortgages.

When the housing bubble burst, it presented opportunities for hopeful house hunters with good credit. "The seller jumped at my offer of 15 percent less than the asking price," said White, "and I got an apartment in move-in condition a few blocks from Junior's restaurant!"

"I built up my credit by paying down my store cards," said Gibbs, who, at her sister's urging, entered an HPD lottery and won. "DC 37 was there for me at every step. My attorney Noemi Bonilla and Jorge Ortiz helped me get grants and made sure I didn't overpay."

Gibbs moved from "a terrible neighborhood" to an area "where people care and take care of their homes," she said, beaming with pride. "When you become a homeowner, there's a different mindset. You tell yourself, I have to take care of this because it is mine."