Saratoga Springs raises upper income limit for workforce-homeownership program

Saratoga Springs City Council on Tuesday approved a change to the city’s workforce-homeownership guidelines that raises the upper income threshold for eligible buyers from 100% of area median income (AMI) to 120% of AMI.

The change was presented by Katie Teedeman, the city’s community development planner, who said the adjustment would align the local program more closely with U.S. Department of Housing and Urban Development (HUD) standards and make the ownership math more feasible for people who currently fall outside the program’s narrow window. “My proposal would be to change it to 120 to kind of align more with HUD’s measures,” Teedeman said.

City staff and council members said the move is intended to reduce the number of deed‑restricted homes that revert to market rate after owners are unable to carry monthly costs. Teedeman described the program as targeted at households between roughly 80% and 120% of AMI and offered example income figures for a single person: about $80,000 at 100% AMI today vs. roughly $97,000 at 120% AMI under the proposed scale. She said the city’s nine deed‑restricted townhouses on Jefferson have lost two units in the past two to three years because owners who nominally met the income test could not keep total housing costs—mortgage, HOA fees, taxes—under the city’s 35% housing‑burden standard.

Teedeman and council deputies described how traditional mortgage underwriting differs from the city’s affordability test: lenders look at principal and interest repayment ability while the city examines total housing costs, including HOA fees and private mortgage insurance, which can push a household over the 35% threshold. To reduce turnover of deed‑restricted homes, the city plans to refine applicant guidelines, maintain a roster of prequalified buyers by outreach to hospitals and schools, and offer homeownership classes in partnership with nearby communities.

The change was placed before the council as a motion by Mayor John F. Safford and passed unanimously, 5‑0.

Public comment on housing at the meeting echoed concerns about affordability and policy options. Resident Sam Brewer of Lake Avenue told council that housing costs have risen dramatically over decades and urged the city to coordinate with the local public housing office and Section 8 voucher programs to expand housing options. “I am a big proponent of the Section 8 HUD housing voucher program,” Brewer said, adding that city funds can sometimes be used to leverage federal voucher streams rather than build temporary shelters.

The council also said it will continue outreach to banks and community groups and pursue grants that could lower upfront costs for first‑time purchasers. Teedeman encouraged interested potential buyers to contact the Office of Community Development; she said one restricted listing was active at the time of the meeting and staff hopes to maintain a pipeline of prequalified applicants.