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Taylor restarts down-payment assistance program; council awards administration to National Faith Home Buyers
Summary
Council approved awarding administration of the Home Down Payment Assistance program to National Faith Home Buyers and amended prior subrecipient agreements to increase per-client assistance up to $40,000, using Wayne County Home Consortia grant funds and combining 2020/2021 allocations to expand program capacity.
The Taylor City Council voted June 17 to relaunch its Home Down Payment Assistance (DPA) program, awarding administration to National Faith Home Buyers and increasing the maximum per-client assistance available under existing subrecipient agreements.
Staff told council the administration contract will pay $1,200 per client for application intake and $75 per hour for additional consulting services. Council approved using Wayne County Home Buyers Assistance grant funds to support the program and authorized the mayor to sign a $219,590 2021 subrecipient agreement with the county.
Council also amended the city’s 2020 subrecipient agreement to raise the forgivable assistance cap from $14,999 up to the maximum allowable $40,000 per client. Staff explained how forgivable liens work under the program: a $14,999 award typically carries a five-year forgivable period (forgiveness drops off if the homeowner remains in place for the full term); amounts above that generally require a longer, ten-year forgivable period. Staff said the forgivable assistance is recorded as a lien on the property and that the program’s lien would typically be secondary to a primary mortgage.
Staff estimated the combined 2020 and 2021 allocations amount to just over $400,000 available for administrative and assistance purposes; at the $40,000 assistance level, that funding might serve fewer than 10 homes, while at the $15,000 level it could serve roughly two dozen. Council members pressed staff on eligibility thresholds, pro-ration details, and whether assistance targets 80% area median income (AMI) or up to 120% AMI; staff said exact eligibility and proration rules would be finalized in program policies and advertised once details are complete.
Council approved the awards and amendments by voice vote; staff said the city will begin advertising the program and invite prospective first-time homebuyers to apply once program rules are finalized.
Next steps: City staff to finalize program guidelines, publish eligibility criteria and application materials, and return to council with any necessary administrative details.
