AFL-CIO PROGRAM HITS HOME.

Byline: Evan Pondel Staff Writer

NORTH HOLLYWOOD - Luis Periera just finished laying a fresh plot of sod in his back yard. The smell of paint still hangs heavy in his home and the hardwood floors have been buffed to perfection.

``I just moved in December. Let's just say I'm pretty happy to be here,'' said the 31-year-old social worker.

With the median price of a San Fernando Valley home soaring to a record $335,000 in January, Periera has good reason to feel content with his recent purchase in North Hollywood for about $260,000.

The first-time buyer hosted a block party Monday to thank the AFL-CIO Housing Investment Trust - the primary reason Periera was able to buy his home and not be rejected by a mortgage lender. Mayor James Hahn attended the event to congratulate Periera, while expressing praise for the AFL-CIO's initiative in a city where 38 percent of the population owns a home.

``This initiative provides the financial resources needed to make owning a home a reality,'' Hahn said.

Known as the Hit Home program, Periera received financial backing from the AFL-CIO because of his job with the Los Angeles Department of Children and Family Services. A partnership between the AFL-CIO, a federation of labor unions that represents city employees, Countrywide Home Loans and Fannie Mae enabled Periera to qualify for a loan.

``All I had to do was put 10 percent down, and now I have a 30-year fixed with a decent rate,'' Periera said.

Try 5.75 percent.

The home itself is approximately 900 square feet with two bedrooms and one bathroom. The lot is about 7,000 square feet. Periera said the property was in move-in condition before he closed escrow.

His broker, Irish Africano, began searching for such a home in October.

``And I told Luis to meet with different mortgage lenders. It's important to shop around right now,'' she said.

That's when Periera met Kim Patterson, a sales manager at Countrywide Home Loans in Woodland Hills. She instantly noticed his employment with the city and ``I told him he qualified for the Hit Home program,'' Patterson said. ``Hit Home made the process very easy. He was even able to receive a $500 credit toward the cost of closing because of the program.''

Countrywide has originated more than 2,500 mortgages under the initiative since its inception in November 2000 for a total volume of nearly $300 million in financing. The Calabasas-based company said many of the borrowers are from historically underserved segments of the population, including minorities and single-parent households.

The AFL-CIO Housing Investment Trust essentially acts as a lender to Countrywide, taking about 5 percent of the mortgage rate. The remaining interest is distributed between Countrywide and Fannie Mae, a mortgage company that backs the AFL-CIO.

``Our business is to increase home ownership. These programs do just that,'' said Ted Chandler, a vice president with Fannie Mae.

The AFL-CIO has placed 80 people in homes throughout Los Angeles, financing about $16 million in loans. The organization expects to finance about $100 million in loans by this time next year. Nationally, Hit Home is expected to generate 10,000 loans with a total volume of $1.2 billion in the next three years.

``It's our job to take care of our members. And a home is the single greatest wealth builder for individuals and single families,'' said Carol Miriam Nixon, chief investment officer for the AFL-CIO Investment Trust. ``And there's no reason we can't continue to help more and more people own homes in Los Angeles.''

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(color) Social worker Luis Periera just bought a $260,000 home in North Hollywood with the help of the Hit Home loan program.

Gus Ruelas/Staff Photographer