Council approves $400,000 ARPA-funded down-payment assistance program for first-time buyers and city employees

Zarena Gaze, the city’s newly appointed affordable housing coordinator, presented a first-time homebuyer down-payment assistance program funded by the American Rescue Plan Act.

The program totals $400,000: $300,000 is allocated for income-eligible first-time homebuyers who meet the program’s AMI thresholds, and $100,000 is reserved for city employees (including school department, firefighters and police) who intend to buy in Everett. The program uses a 20,000 forgivable loan structure: each award is a $20,000 loan with 20% ($4,000) forgiven each year over five years; if an owner remains in the home for five years the loan converts to a grant with no repayment required.

Eligibility requires household income between 60% and 100% of area median income (AMI), completion of a first-time homebuyer counseling workshop and a signed purchase-and-sale agreement. The program will operate on a first-come, first-served basis; with $400,000 available at $20,000 per household, administrators estimated the funding could assist about 20 households, subject to eligibility and completed documentation.

Councilors asked administrative questions about employee eligibility, resale/recapture if a property is sold before five years, and how multifamily purchases would be handled. Staff said prorated repayment would be required if a home is sold prior to five years; purchasers of 2– or 3-family properties would have to enter an agreement assigning deed restrictions on the rented units and comply with monitoring requirements.

The council voted favorable action on the order to accept and expend the grant and implement the program (roll call recorded as 9 ayes, 0 nays).