Housing GSO: HRA Greensboro Affordable Housing Plan

ACCESS TO HOMEOWNERSHIP

MODIFY DPA PROGRAM DESIGN | Overview

Key Partners • City of Greensboro - NDD • Non-profit partner • Neighborhood associations in candidate areas

Greensboro’s Homebuyer Down Payment Assistance Program (DPA) assists low- and moderate-income households with the purchase of a primary residence . Eligible homeowners may receive up to $10,000 for down payment and closing cost assistance in any area within city limits as a five-year, forgivable loan at zero percent interest. The City contracts with a non-profit partner to administer the DPA program. Program participants are often also directed to additional sources of subsidy through state homebuyer assistance programs, including North Carolina Housing Finance Agency’s Home Advantage Mortgage and Down Payment assistance, both of which can be layered with DPA. While the program was historically funded through Greensboro’s federal HOME allocation, bond funding dramatically increased the capacity of this program. It served seven households in 2017 and 108 households in 2018. The injection of funds from the Housing Bond broadened the program’s income eligibility requirements up to residents making 140% AMI. Since this change, the program has serviced a majority of residents with higher incomes. This raises the question of whether the program is presently helping households who could not otherwise achieve homeownership or granting funds to households that would have bought homes regardless. Recommended program modifications will help the City prioritize funds for the buyer’s true need for purchase. The City should modify the loan repayment terms and geographic bonuses of its Down Payment Assistance program. Reconfiguring the program will ensure that assistance will go to those who otherwise would not have been able to access homeownership.

Action Steps

1. Restructure loan repayment terms with underwriting partner

2. Approve reinvestment areas that will qualify for geographic bonuses in the DPA program

3. Publicize geographic bonuses with help of neighborhood associations

Anticipated Cost to Implement: ~$15K DPA loan per household in area of reinvestment (could range up to 20% of total home sales price)

HR&A Advisors, Inc.

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