During the Fayetteville City Council Work Session on May 5, 2025, city officials engaged in a detailed discussion regarding the Homebuying Hero program, aimed at expanding access to down payment assistance for potential homeowners. The program currently offers three distinct tiers of assistance: up to $20,000 for first-time homebuyers, $30,000 for public service employees, and a more generous package for city employees.

City staff presented recommendations to modify the existing program, including a proposal to remove the first-time homebuyer requirement, which would allow "move-up" buyers to apply. However, this suggestion sparked a debate among council members about the potential complications it could introduce, particularly concerning the timing of home sales and the treatment of equity from previous properties.

Council members expressed concerns about the program's current underutilization, with only eight approvals in the past three years. They emphasized the need to increase participation to help more residents transition from renting to homeownership. The discussion highlighted the challenges faced by families in unique situations, such as those undergoing separation, which complicates their ability to qualify for assistance.

Another significant point raised was the debt-to-income ratio criteria, which some council members suggested could be adjusted to allow more applicants to qualify for the program. The staff indicated that while they could explore changes, any adjustments would need to balance the risks of financial strain on potential homeowners.

The meeting underscored a broader concern about the housing market in Fayetteville, where a lack of available homes continues to hinder the effectiveness of the Homebuying Hero program. Council members acknowledged that without addressing the supply issue, increasing funding and program accessibility might not yield the desired outcomes.

In conclusion, the Fayetteville City Council's discussions on the Homebuying Hero program reflect a commitment to enhancing homeownership opportunities for residents. However, the complexities of policy changes and the ongoing challenges in the housing market will require careful consideration as the council moves forward with potential adjustments to the program.