Title
Resolution Authorizing Modifications to the Housing Connect GSO Down Payment Assistance Program
Body
Council Priority: Maintain Infrastructure and Provide Sustainable Growth Opportunities; Exceptional Customer Service and a Diverse City Government Workforce; Ensure Fiscal Stewardship, Transparency, & Accountability
Department: Neighborhood Development
Council District: All
Public Hearing: No
Advertising Date/By: N/A
Contact 1 and Phone: Stan Wilson; 373-2509
Contact 2 and Phone: Lamont Taylor; 373-2538
PURPOSE:
City Council consideration is requested to modify the program design of the Housing Connect GSO Down Payment Assistance Program to implement the goals and strategies of Housing GSO, 10-Year Affordable Housing Plan adopted by City Council on October 20, 2020.
BACKGROUND:
The Housing Connect GSO Down Payment Assistance Program joins homebuyers, homeowners, and City partners through expanded counseling, education, financial assistance, and collaborations to ensure successful homeownership in the Greensboro area. Through these comprehensive homeownership services, the goal of the program is to empower potential homebuyers to succeed at homeownership.
Access to homeownership is a focus goal area of the Housing GSO, 10-Year Affordable Housing Plan adopted by City Council on October 20, 2020. The Plan recommends modifications to the loan repayment terms and geographic bonuses (reinvestment and redevelopment areas) of the down payment assistance program to assist more low- and moderate-income households with the purchase of a primary residence.
Proposed program modifications for qualified buyers as reflected in the attachment include:
• Program funding limited to households earning up to 120% of Area Median income (AMI) to better support lower-income residents.
• Public servant bonus for households with a household member employed in public service.
• Increased geographic bonus for homes located in reinvestment and redevelopment areas.
• Modified loan repayment terms.
The proposed changes will continue to be coupled with homeownership counseling requirements, expanded educational opportunities, and coordination with City housing services partners to increase homeownership opportunities throughout the City, with an added emphasis on homebuyer purchase in the reinvestment and redevelopment areas.
BUDGET IMPACT:
Funding is available from the federal HOME Program for eligible homebuyers with incomes at or below 80% of area median income (AMI) and from the 2016 Housing Bonds - Workforce Housing for low- and moderate-income homebuyers with incomes up to 120% of AMI as well as home purchase incentive program funds.
RECOMMENDATION / ACTION REQUESTED:
City Council is requested to approve program modifications to the Housing Connect GSO Down Payment Assistance Program and related updates to the program guidelines effective January 1, 2021.