Okaloosa County increases down payment assistance to $65K for affordable housing program

The Okaloosa County Board of County Commissioners held a significant meeting on February 5, 2025, focusing on the revitalization of the state housing initiative partnership program, known as SHIP. This program is crucial for providing affordable housing to low and moderate-income families in the community.

During the meeting, officials discussed the need to update the local housing assistance plan, which has not been significantly revised in over a decade. The Affordable Housing Advisory Committee (AHAC) proposed several key changes to enhance the down payment assistance program. Notably, the maximum award for down payment assistance is set to increase from $30,000 to $65,000, reflecting the rising housing costs in the area. This adjustment aims to better support families in securing homes.

Another significant change involves the structure of the assistance. The current program offers a 10-year forgivable loan, but the AHAC recommended a new approach where the first five years would require full repayment if the homeowner sells or rents the property. After five years, the amount owed would decrease by 10% each year until the loan is fully forgiven at the end of the term. This modification is intended to provide more flexibility for homeowners.

Additionally, the program will expand the eligible costs for assistance to include not only down payments and closing costs but also mortgage buy-downs and efficiency upgrades, such as new air conditioning units. This broader scope aims to ensure that homes remain affordable and livable for families over the long term.

The meeting also highlighted the importance of requiring a certified home inspection to identify necessary repairs before funds are allocated. A minimum of $5,000 will be set aside for rehabilitation costs, ensuring that funds are used effectively to improve housing quality.

Commissioners expressed their support for the proposed changes, emphasizing the importance of monitoring the program's implementation and its impact on the community. They plan to receive updates on the program's progress, particularly as funds are allocated and utilized.

Overall, the meeting underscored Okaloosa County's commitment to enhancing affordable housing options and ensuring that low and moderate-income families have access to safe and sustainable homes. The proposed changes to the SHIP program are expected to significantly benefit the community, addressing both immediate housing needs and long-term sustainability.