Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, February 20, 1991                   TAG: 9102200264
SECTION: VIRGINIA                    PAGE: B2   EDITION: METRO 
SOURCE: SANDRA BROWN KELLY STAFF WRITER
DATELINE:                                 LENGTH: Medium

REGION GETS FUNDS FOR HOMES PROGRAM BENEFITS FIRST-TIME BUYERS

The money for the Rural Homeownership Opportunity Program is being supplied by the Virginia Housing Development Authority through the sale of mortgage revenue bonds.

In localities where the money is going, sponsoring groups - nonprofit and profit - have agreed to build the houses for families to buy.

Interest rates on the mortgages will be 4.75 percent or 7.25 percent, with the lower rate going to families with the lowest incomes.

Among the localities targeted are Pulaski, which will get $500,000 for eight homes to be built by Parkview Properties; Montgomery County, $500,000 for 10 houses provided by Virginia Mountain Housing Inc.; Franklin and Patrick counties, $750,000 for 15 houses provided by Nationwide Homes; and Bedford County, $250,000 for five houses provided by R/I Enterprises.

Other areas receiving mortgage funds are Martinsville, $1.2 million; Buena Vista, $400,000; Henry County, $725,000; Lexington, $90,000; Dickenson County, $500,000; and Big Stone Gap, $400,000. Fralin & Waldron Inc. of Roanoke will be building the houses in Big Stone Gap.

Preference will be given to families with incomes that do not exceed half their area's median income. Persons wishing to buy houses should contact the sponsoring group in their area.

Steve Calos, spokesman for the state authority, said all of the non-profit groups among the 60 applications received were accepted.

He said suppliers of the houses should be making announcements about the local programs in the next few weeks.

The allocations, which went to 30 localities, were announced Tuesday by Lawrence Framme, state secretary of economic development.