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DCA details Georgia Dream homebuyer program and targeted down-payment grants
Summary
DCA officials told legislators the Georgia Dream program helped about 2,000 first-time buyers last year and is funded by a bond program; officials also described time-limited HomeSafe funds that provide higher down-payment assistance in distressed counties while funds remain.
Department of Community Affairs officials gave the State Planning & Community Affairs committee an overview of the Georgia Dream homeownership program and related down‑payment assistance.
Brenda McGee, division director for homeownership at DCA, said Georgia Dream provides affordable mortgage financing to eligible first‑time homebuyers through a network of 97 participating lenders and roughly 250 local branches. "Last year, we did over 2,000 new homeowners with an average loan of about $140,000," McGee said. The program is capitalized through a private-activity bond program administered by the Georgia Housing Finance Authority (GHFA).
Down-payment assistance tiers: McGee described several assistance levels. The standard, statewide down‑payment assistance is $5,000; certain public‑service employees (public safety, educators, health care workers) or households with a member with a disability can qualify for $7,500. A time-limited tranche of federal HomeSafe Georgia funds supplies up to $15,000 in some treasury‑defined distressed counties; DCA said those funds will be used "as long as we have them" and are expected to be available through the end of the year.
Program limits and counseling: McGee explained legal constraints from the Internal Revenue Code — eligibility requires first‑time buyer status, income limits and purchase‑price limits (she cited typical limits: $250,000 Metro Atlanta cap; $200,000 elsewhere). DCA said the average purchase price in recent closings was about $140,000. DCA requires pre‑purchase counseling for every first‑time homebuyer and conducts outreach through lenders and real‑estate professionals rather than paying agent incentives.
Bonds and liability: Committee members asked who issues the program bonds and whether the state bears liability. DCA staff said the Georgia Housing Finance Authority sells the private activity bonds and that GHFA debt are obligations of the authority, not the state; GHFA is rated highly by Standard & Poor’s, DCA said.
Local results and outreach: A Savannah-area participant identified by role as CEO of Feed the Hungry described local use of the program, saying layered local and state assistance helped about 144 households in Chatham County. The participant also said local efforts are helping struggling homeowners with assistance up to $50,000 (that claim was presented by the participant and not quantified by DCA in the hearing).
What’s next: DCA encouraged lawmakers to help publicize Georgia Dream in their districts; staff offered to share county-level maps and lender lists to support outreach and confirmed the limited HomeSafe funds will be allocated where Treasury-designated criteria are met.
