HAMMOND | Prospective homebuyers need no longer already live in the city to receive financial assistance with the down payment and closing costs of their purchases.

Since 2007, Hammond has offered grants of up to $2,500 toward buying an existing home, and $5,000 for new construction, through its Homebound program, but applicants had to live in the city for at least one year to be eligible.

The Redevelopment Commission on Tuesday night removed that residency restriction.

It was originally put in place to guarantee that every Hammond resident who wanted to participate in the program, could, said Richard Calinski, executive director of planning and development.

But with nearly half of the available funding -- a combination of casino tax money and federal housing allocations -- untapped in 2008, the time was appropriate to expand the program, Calinski said.

"If we've still got money available at the end of the program year, it hasn't been as efficient as it should be," Calinski said.

Other than the residency requirement, the buyer-assistance program remains the same.

Families with a household income of up to $99,000 per year can participate, and receive a dollar-for-dollar match of money they put up for down payments and closing costs.

To fully benefit, buyers must stay in their homes for five years, but the grants are prorated over time, with 60 percent of the grant money owed if the buyer moves within three years, and 40 percent within four years.

Firefighters, police officers and educational professionals also are eligible for an additional $1,000 toward the purchase of an existing home through the program.

"It's definitely a positive for people wanting to become homeowners in the city," Calinski said.

Rehabilitation Manager Jennifer Hinojosa, who administers the Homebound program, said she has a list of several candidates who want to participate, but who hadn't lived in Hammond for the full 12 months previously required.