Housing GSO: HRA Greensboro Affordable Housing Plan

ACCESS TO HOMEOWNERSHIP

MODIFY DPA PROGRAM DESIGN | Recommendation

Greensboro should provide increased, targeted subsidies that allow buyers to access more of the market and encourage homeownership in areas of reinvestment.

Down payment assistance is the City’s most immediate tool to help low- and moderate-income residents afford homeownership.

By increasing DPA’s geographic bonus for homes located in reinvestment areas, the City can incentivize access to homeownership in identified areas of need. Supporting neighborhood reinvestment is one of the City’s primary goals for addressing its affordable housing challenges, so encouraging new homebuyers in these identified reinvestment areas will help both boost homeownership and support strong neighborhoods. The DPA geographic bonus should be increased from its current $5,000. It should be increased to the greater of $10,000 or 20% of property value, so that the total DPA loan becomes a $10,000 geographic bonus plus up to a $10,000 DPA award OR 20% of total home value. Geographic bonuses should be available and forgivable to all program participants, regardless of income. Providing 20% of the home value ensures buyers will not have to purchase private mortgage insurance, allowing for additional savings.

Random Woods

HR&A Advisors, Inc.

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