SOUTH PORTLAND — A new affordable homeownership program is under way in the city.

The local program is part of the federally funded Neighborhood Stabilization Program. The local program is open to residents and non-residents of South Portland. It is run through the South Portland Housing Development Corp., which is affiliated with the South Portland Housing Authority.

Participants must meet income requirements. The limit for an individual is $61,152 and $87,360 for a family of four. The program provides a subsidy of up to 25 percent of the purchase price interest-free.

“It’s a great opportunity to add stability and improve housing stock that has been impacted by the recent downturn in real estate. The South Portland community is well-served by this effort.” Michael Hulsey, executive director of the housing authority, said in a statement. 

Three properties – two single-family homes and one two-family residence – have been purchased for rehabilitation. Program participants must enroll in order to receive notification of other properties as they become available.

For more information about the program, contact Karen Dunfey at 773-4140 or download a preliminary application.