An effort to help families establish home ownership in Kootenai County took a big step forward Monday.

"It's exciting because it's one of those things that's going to touch everybody who keeps saying, 'What are we going to do,'" said Kiki Miller, Coeur d'Alene City Council member and a founder of the Housing Solutions Partnership.

Hayden Homes donated $10,000 to the Coeur d'Alene Regional Realtors to support silent second mortgages for homebuyers in Kootenai County.

The contribution will serve as seed money to fund a marketing plan for the countywide campaign expected to launch soon.

"This program helps bridge the gap between what buyers qualify for and the home’s purchase price, removing a significant financial hurdle for local workers and families seeking to purchase a home in the area," a press release said.

Miller said funds raised through this campaign, administered by the Idaho Housing and Finance Association, will be earmarked for Kootenai County homebuyers who work and live locally. 

Many can't afford to buy a home here as prices have climbed in recent years.

"This is going to be the gamechanger tool for housing," Miller said.

The partnership proposed the concept of a voluntary funding campaign to the Coeur d’Alene Regional Realtors nearly three years ago and the organization agreed to spearhead it.

Silent second mortgages, which are loans that don’t require monthly payments, can be packaged alongside first-time homebuyer loans or other financing options, offering a flexible solution to support homeownership. 

When a property is sold or refinanced, funds return to the IHFA/Home Partnership Foundation to assist future homebuyers, creating a revolving pool of resources aimed at increasing housing stability in the region, the release said.

"It can continue to grow and have more impact," said Lindsay Allen, chair of the Coeur d'Alene Regional Realtors committee that worked on the issue

Deb Flagan, vice president of community engagement at Hayden Homes, said as home prices have climbed, the required down payment has grown significantly and is often the greatest hurdle for middle-income families.

By supporting the start-up of this program, Hayden Homes is helping to reduce the financial stress that first-time buyers often face, empowering more individuals and families to invest in their futures through homeownership, the release said.

"We are proud to support this program, which provides vital assistance to help hardworking individuals and families remain in Kootenai County, strengthening the workforce and building a strong community," Flagan said.

Allen said there are many professionals like teachers and first responders who earn too much to qualify for some loan assistance programs, but not enough to buy a median-priced home of $545,000 in Kootenai County.

To buy such a home and keep the monthly payment within 30% of their income, which is what banks like to see, could require a $100,000 down payment. Not many have such money and must rent.

Silent second mortgages, however, can create more middle-class home ownership opportunities, Allen said, and give those trying to leave the rental market a better chance to succeed.

"It's these people that we need to continue to support," she said.