The Housing & Community Development Department (HCDD) recommends Council approval allocating $750,000.00 of TIRZ Affordable Housing funds, previously appropriated on June 12, 2019 under ordinance 2019-432, to provide down payment and closing costs assistance through HCDD’s Homebuyer Assistance Program (HAP), serving low-to-moderate income homebuyers.
HAP is designed to increase homeownership opportunities for residents and to expand the supply of quality, safe, affordable housing within the City of Houston (City). HCDD currently has twenty-four applicant files that are eligible and qualified through the City’s HAP. In order to allow the applicants to close on their homes within their contract deadlines, HCDD requests that City Council authorize the use of the aforementioned $750,000.00 in TIRZ Affordable Housing funds to provide down payment and closing costs.
The federal homebuyer assistance program administered through the Texas General Land Office (GLO) requires new documentation that is not required by HAP; these new requirements are creating delays in processing and causing closing deadlines to be missed. To avoid further setbacks for the applicants, this funding request will provide the down payment and closing costs necessary for applicants to complete the process towards homeownership. HCDD will continue to work with the applicants to secure their qualifications in the federal program to effectuate use of GLO funds for purposes of increasing homeownership opportunities for residents. HCDD will make every effort to secure full reimbursement for all households served based on HAP closing requirements.
The City HCDD HAP is designed to provide funds for down payment and closing costs to income eligible first-time homebuyers to finance the purchase of a home. The goal of the program is to increase homeownership opportunities for low and moderate-income residents, within the incorporated areas of the City. This program will work with participating lenders in the delivery of down payment and closing costs assistance to income eligible homebuyers in the City. The Homebuyer Assistance Program (HbAP) will provide funds for down payment assistance, closing costs, principal buydown, and other direct financial assistance to homebuyers to finance the purchase of a home. HbAP will help improve homeownership affordability for residents affected by Hurricane Harvey to facilitate the movement of individuals into new homes after their homes were damaged by Hurricane Harvey. This program will also provide an option for individuals in floodplains to purchase a home outside of the floodplain.
Fiscal Note:
Funding for this item is included in the FY2020 Adopted Budget. Therefore, no fiscal note is required as stated in the Financial Policies.
The Housing and Community Affairs Committee reviewed this item on October 15, 2019
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Tom McCasland, Director