The Silver Spring Penguin

A program that encourages people to buy homes near their work places may not offer enough financial assistance, members of Silver Spring’s transportation management committee said Thursday.

The Smart Keys 4 Employees program helps homebuyers with closing costs if they set up house below the Beltway and within 10 miles of where they work, according to the state’s department of housing.

However, ceilings on household income and home price could disqualify Silver Springers from reaping the program’s benefits, said Mel Tull, with the Silver Spring Regional Center.

“For a lot of people who work in downtown Silver Spring, it’s difficult to find something affordable,” Tull told the committee.

To qualify for a $5,000 employer-matched grant, a home must cost less than $175,000, according to the housing department.

“You get to price an MPDU [moderately priced dwelling unit] based on market costs and construction,” said Charles Segerman, who represents areas north and west of the central business district. “That alone costs over $200,000.”

Mortgage products that help first-time buyers with closing costs cap the annual income at $92,000 for a household of two ($105,000 for a household of three or more). To qualify, the home cannot cost more than $429,000, the housing department’s website states.

According to 2005 census data, the average household income in Silver Spring is $91,000, with an average 2.5 people per household. The median value of a home in Silver Spring is $425,000.

“Downtown living is just more expensive in general,” Segerman added.