Council directs staff to expand Homebuying Hero program; staff to return with policy language May 12

Fayetteville City Council directed staff to revise the Homebuying Hero down‑payment assistance program to expand eligibility and return with concrete policy language at the May 12 meeting.

Staff presented three program tiers: the citizen program (up to $20,000 for qualifying buyers), a public‑service hero program (up to $30,000 for select public‑service roles) and a city‑employee program (initially conceived at $30,000 as an employee retention measure). Staff recommended requiring applicants to use available state programs before tapping city funds and outlined administrative issues connected with allowing “move‑up” buyers (buyers who previously owned a home).

City staff warned that allowing move‑up buyers creates administrative complications: the timing of selling the previously owned home can temporarily convert the transaction into investment property, and equity from a sale can affect income‑eligibility calculations. Staff also noted program funding is time‑limited and draw rates have been low; council members argued the program should be made easier to use and better marketed to realtors, mortgage brokers and institutional employers.

Council directed staff to prepare policy language that would (a) expand eligibility to move‑up buyers while defining how equity and timing are treated, (b) require applicants to utilize state resources before city funds, (c) extend public‑service eligibility to include retirees and employees of private universities and medical facilities, and (d) align the city‑employee conditions with other public‑service tiers (certain council members supported removing a one‑year employment hold but securing assistance through a repayment agreement if the employee leaves). Staff will return with a formal proposal at the May 12 meeting.