The Housing and Community Development Department’s (HCDD) Homebuyer Assistance Program (“HAP”) is designed to increase homeownership opportunities for low-to-moderate income residents and to expand the supply of quality, safe, affordable housing within the City of Houston. Funding sources for the program includes U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnership (HOME) grants, HUD Community Development Block Grants (CDBG) and City of Houston Affordable Housing Tax Increment Reinvestment Zone (TIRZ) funds. The Housing & Community Development Department respectfully requests approval of increasing the existing Ordinance No. 2016-911 of the Fourth Amended and Restated Homebuyer Assistance Program (HAP) Guidelines subsidy from $15,000 and $25,000 to a static amount of $30,000 in assistance for all first-time homebuyers and decreasing the current buyer contribution from $1,000 to $350.00.
Since the inception of the more user-friendly model (ordinance No. 2016-911) of the HAP in 2016, the program has realized more than a 100% increase in program participation, with a total 105 applications, and a spend of $1,005,000 in FY2017 with a total of 29 homes closed. In FY18 the HAP received 179 applications, closed 59 homes and assisted with $1,305,000 in down payment and closing costs. With the implementation of the new home development program, our goal is to close 75 homes in FY19.
The current median home price is now above $200,000, and with the average low-to-moderate income buyer’s purchasing power only at about $140,000 based on the HUD definition of a low-to-moderate income family of four at the 80% AMI level (earning at or below $59,900, annually) this modification will increase the number of Houstonians eligible to attain homeownership, while increasing economic opportunities for low-to moderate- income residents in the City of Houston. Additionally, decreasing the buyer contribution from $1,000 to $350 will align with the Harris County down payment assistance program requirements.
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Homebuyer Assistance Program (HAP)
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Activity
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Delete/Decrease
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Add/Increase
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Increase subsidy level from $15,000 and $25,000
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30,000
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Decrease buyer contribution, currently at $1,000
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$350.00
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Household Size
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Income Limit - $30,000
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1
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$41,950
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2
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$47,950
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3
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$53,950
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4
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$59,900
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5
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$64,700
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6
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$69,500
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7
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$74,300
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8
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$79,100
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The Housing and Community Affairs Committee reviewed this item on September 18, 2018.
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Tom McCasland, Director