Housing GSO: HRA Greensboro Affordable Housing Plan

ACCESS TO HOMEOWNERSHIP

MODIFY DPA PROGRAM DESIGN | Recommendation

The City should modify the terms of DPA loan repayment to better serve low- and moderate-income households.

Income Distribution of DPA Recipients, 2010-Present

The greatest need for access to affordable homeownership is among households earning below 80% AMI, or roughly $50,000 per year. Since the infusion of bond dollars, the DPA program appears to be serving more moderate and higher income households than previously, with most of the recent DPA participants make over $40,000 annually. Program funding should be shifted to better support lower-income residents. The $10,000 loan should be forgivable for households that earn below 80% AMI or have a household member employed as a public servant (e.g. teachers, police officers). Otherwise, assistance should be provided as a five- year deferrable loan. For higher-earning residents who purchase homes in areas of reinvestment, the loan can be forgivable, given the interest in investing in these identified areas. means of providing affordable homeownership options for low- and moderate-income households, the City should assess the ability and interest of Greensboro’s largest employers to provide employer-assisted down payment assistance and work with lenders to create Employer Incentive Programs to promote access to homeownership. As additional

HOME, 2010-2017

Bond 2018-2019

70

60

50

40

30

20

10

0

Less than $20K $20K - $29,999 $30K - $39,999 $40K - $49,999 $50K - $59,999

$60K+

Source: City of Greensboro, Housing Consultants Group

HR&A Advisors, Inc.

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