HUD Secretary's Best in American Living Award Winners 1999
Old Town Square
Oakland, California
Projected Home Prices: $100,750-$189,900
Median Home Price in the Metropolitan Statistical Area: $255,500
Description: Prior to the development of Old Town Square, a 99-unit condominium development, there was a sense that people wanted to live downtown, but, given the absence of housing and retail amenities, it was difficult to attract middle-income families.
In order to overcome this obstacle, the developer used "reservations" in which lenders issued conditional commitments before construction began, providing assurance that mortgage financing would be available to potential purchasers. Old Town Square also offered a lease-to-own financing option, which allowed potential buyers to lease, then purchase, their homes without a traditional downpayment.
The Oakland Redevelopment Agency collaborated with many entities to complete this project. Old Oakland Housing Development Corporation, Wells Fargo Bank, and World Savings Bank helped finance the project. Fannie Mae modified underwriting criteria with respect to condominiums and agreed to accept the lease-to-own contracts. And, Bank of America provided loans with zero downpayment for most of the purchasers.
Old Town Square has successfully contributed to downtown Oakland's revitalization by increasing the tax base, acting as a catalyst for further development, and by bringing stability through homeownership.
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