City details homeownership programs, infill lots and resale limits on NSP properties

Sheila Ware, Housing and Community Services, described the department’s homeownership strategies and why some approaches were scaled back in the current LHAP.

Ware said the city’s purchase‑assistance program is aimed at first‑time buyers and includes counseling, a HUD‑certified homebuyer class and a 15‑year second mortgage at 0% interest that is forgiven if the buyer remains in the home the full period. The program includes up to $50,000 in down‑payment assistance and up to $10,000 for eligible closing costs; Ware said the purchase‑price cap is $300,000. She said every purchase‑assistance applicant receives a one‑on‑one budget counseling appointment and a walkthrough before closing; staff attend closings to ensure the city lien and funding application are properly reflected on the Closing Disclosure.

On infill housing, Ware said the program builds homes on city‑owned lots and is intended for applicants who otherwise could not afford market housing. She said the city conveys the lot to a qualified builder, the builder finances construction, and the builder executes a mortgage and note with the city for the land value; finished homes have sold for roughly $175,000–$270,000 in the program. Ware said 23 infill homes had been completed and seven were under construction, with about 20 city lots still available across the city; she said some lots are being split to maximize unit yield.

Ware also described how the city handles NSP rental properties. She said 31 properties were purchased with NSP funds (a county award the city administered), 18 were resold to eligible buyers and 13 remain in the city’s affordable rental portfolio. Ware said two of the rental units were set up for initial resale and could be sold once their affordability periods expire; the 15‑year affordability period applies to many of the NSP purchases and deed restrictions require buyers to meet the original income set‑aside when a restricted property is resold.

Commissioners asked how many closings occurred this year, how long the city holds funds for applicants who need credit work, and whether purchase‑assistance money remained available. Ware said funds are committed only at the point of obligation (staff do not hold funds indefinitely for individual clients) and that annual SHIP allocations can be programmed toward purchase assistance; she noted programmatic changes over time — lien forgiveness periods, sale‑price caps and down‑payment rules have been adjusted as the LHAP evolved.

Ending: Commissioners asked staff to circulate the LHAP and a programmatic breakdown of remaining balances and closings; Ware said staff will provide those figures and timelines for when NSP rental properties exit affordability restrictions and become available for resale.