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Valencia County seeks to spend $1.8 million on builder-match down-payment program to broaden homeownership
Summary
County staff and housing partners presented a $1.8 million state-funded builder‑match program to provide $30,000 0% loans paired with builder matches for about 55 homes; commissioners directed publication of an ordinance amending AMI eligibility to 150% and will consider program details Feb. 18 and March 4.
Valencia County commissioners on Feb. 4 reviewed a proposed $1.8 million, state-funded down‑payment assistance program designed to help roughly 55 households buy new homes.
The program presented by county consultant Mister Gabalone would pair a $30,000 0% interest loan, administered by a nonprofit housing provider, with an approximately $30,000 builder match (a price reduction or “flex cash”) to lower the buyer’s cost. Gabalone said the state funds would be reimbursed to the administrator after closings and that the county would keep recaptured funds in perpetuity for local housing uses. “The funding is state-funded, reimbursed,” he said. “The nonprofit would front the $30,000 and the funds are managed and administered by the nonprofit you choose through a procurement process.”
Why it matters: County staff and builders told the commission the program could quickly move money into the local housing market and create two housing outcomes: a household achieving homeownership and an existing rental vacancy. Robert Corman of Higgs Brothers and other builders said they already have inventory that meets price points for the program and could absorb a substantial share of the funds before the state reversion deadline.
Key details: The proposal would: - Use $1,800,000 in state DWS funds to support about 55 down‑payment loans of $30,000 each; funds are reimbursed at closing; - Pair the state loan with builder-provided incentives (approx. $30,000) for a combined benefit to buyers; - Require nonprofit administrators (examples cited: HomeWise, HCA) to underwrite, front funds at closing and service loans; and - Include $100,000 to hire county staff to help build a housing program and pursue future grants.
Legal and procedural steps: County Attorney Peto and staff said the county’s current affordable housing ordinance limits eligibility to 120% of Area Median Income (AMI). To accommodate the state program, staff proposed increasing the ordinance cap to 150% AMI and directed publication of the ordinance’s title and general subject matter so a public hearing can be held on March 4. Peto said the board will consider a program resolution on Feb. 18 and a revised IGSA with DWS soon after.
Concerns and safeguards: Commissioners stressed underwriting standards and program oversight. Housing provider representatives said counseling, underwriting to Fannie Mae/Freddie Mac standards and ongoing servicing reduce delinquency risk; HomeWise’s representative cited a delinquency rate near 1.44% for their portfolio. Commissioners also discussed geographic equity and whether funds could be used on existing homes; staff said the IGSA can be written broadly and may allow both new construction and other housing uses depending on the commission’s direction.
Next steps: The board voted to direct staff to publish the ordinance title and general subject matter; a public hearing and potential adoption are scheduled for March 4, with the board to consider the program resolution Feb. 18. The county attorney will return with procurement language and a draft IGSA with DWS for the board’s review.
At the Feb. 4 meeting, Mr. Gabalone said the program is intended to “seed long-term homeownership” while keeping recovered funds in Valencia County for future housing uses. The matter will return for formal adoption votes in coming meetings.
