Yes. Federal regulation determines one to be a first-time home buyer if they have not owned real estate in the most recent three complete years or if they were displaced from their home due to a divorce.

We calculate your DPA check amount based on how much you actually need, or your “demonstrated financial gap.” First, we look at the actual costs: your home sales price plus your estimated closing costs. Next, we look at actual money being paid towards purchase the home: the loan amount your lender has approved for you, plus any money the seller is contributing, plus the earnest money you contributed when you signed your sales contract, plus certain lender required costs that you paid for in advance that, plus gift funds received. We help with the gap between the actual costs and the actual money being paid towards the purchase of the home. Not all closing costs are covered by DPA. A list of eligible costs are posted on the application. Program guidelines will allow AFHC to cover certain types of closing costs.

On our website under “First Time Home Buyer Down Payment Assistance” we have posted instructions for using a city mapping site to see if a property address is inside Austin City Limits and is eligible for DPA. Follow the steps to verify an address, or you can call our staff to help you. Remember that just because a property has an Austin mailing address, it does not mean that it is inside the city limits. Also, some neighborhoods in Del Valle, Pflugerville, and other outlying areas actually fall within the Austin City Limits and could be eligible for DPA.

Your DPA Participating Lender will turn in your DPA application package to us about 3 to 4 complete weeks* before your closing. We only accept it if everything listed in the checklist in the front of the application is provided. That gives the City enough time to review it, inspect the house, and print a check and closing documents for your title company. *Depending on underwriting review of the application and supporting documentation, there is a possibility of the requirement for clarification of information or additional documentation. Therefore, processing times do vary and can take longer than the typical 3 to 4 weeks.

The DPA Participating Lenders listed on our website are the only professionals who have attended training and committed to a Participating Lender Agreement. Therefore, they are the only Lenders who are authorized to submit DPA applications on your behalf. If the lender and loan officer you are currently working with are not on the DPA Participating Lender list, they are not authorized to submit any DPA applications until they have been trained and approved to do so. Lenders can visit the DPA website to learn of future training sessions so they may become Participating Lenders. The Participating Lender list is subject to change without notice and based on the discretion of AHFC.

Although AHFC does not require Real Estate Agents to attend training for DPA before helping you, it is highly recommended. As a courtesy to you, a list of all Real Estate Agents who have attended training in the last fiscal year is posted on the DPA website. Applicants are not required to enlist the assistance of the Real Estate Agents listed on our website. The Participating Agents list is subject to change without notice and based on the discretion of AHFC.

The Federal guidelines require that “Household” income calculations involve the review of current “gross income” (not net) earning patterns for all income earning individuals (age 18 and over) and assume that the income currently earned will hold constant for the next 12 months. Depending on the information received, income determination may include review of pay stubs, tax returns and asset documents. Typically, gross (not net) income received over the most recent three months, including but not limited to overtime, bonuses, shift premiums, tips, patterned deposits noted on recent bank statements, interest and dividend income, equity, alimony, child support, social security, annuities, insurance pensions disability, death benefits, unemployment, some forms of TANF or Welfare, or other additional earnings / regular contributions or compensation received is averaged then projected forward 12 months to determine if applicants exceed the federal annual income limits set forth by program guidelines. Regardless of which household member is purchasing the home, Federal guidelines require all persons over the age of 18 to provide income and asset documentation because DPA Eligibility is determined by anylization of “household” size, income and asset totals. The Participating Lenders listed on the DPA Website are trained to know what documentation to request and review to determine household size, calculate income and assets in qualifying applicants for Mortgage Loans with Down Payment Assistance.

Sign up for free homebuyer education classes as soon as possible. Call Janice Kinchion at 512-974-6001 or visit the Homebuyer Counseling page for more information about free classes called “Housing Smarts.”  The classes are required for anyone interested in Down Payment Assistance. After you complete the classes, then get approved for a mortgage loan through one of the DPA Participating Lenders posted on our website. Your lender will later complete a DPA application for you and submit it to us about 3 to 4 weeks before your closing.

Shared Equity DPA may be a DPA option if you need more than $10,000 in down payment and closing costs (if you need less than $10,000, look into Standard DPA). It is a large loan that requires no monthly payments (“deferred loan”) as long as you live in the house for a consecutive 30 years from the date of purchase (also known as the affordability period), make no changes to the first lien promissory note and do not transfer title. If you adhere to the above requirements throughout the affordability period as defined above, at the end of 30 years, you will be required to pay back the amount of DPA you borrowed through monthly payment as determined in the Promissory Note.

However, prior to the end of the affordability period (30 years), if you decide to sell the house, rent it to someone else, transfer title, refinance your original mortgage, or pull a home equity loan from the house, you have to pay back the entire Shared Equity DPA loan back to the City plus a percentage of the properties equity (not to exceed 30%) should you have enough equity that would result in a profit or gain. For example, if prior to end of the affordability period, you should sell your house for a higher price than what you paid for it—you will pay back the DPA loan and share a percentage of this equity with the City. The percentage will be equal to the percent of your home price that the City helped you cover. For example, if the City helped you cover 23% of your home purchase price, then you will later share 23% of the equity you gain
when you transfer the title of your home to someone else. Every borrower’s percentage is unique because every sales price and DPA loan amount are unique.

No. Foster children, Foster adults, Live-in Aides and children of live-in aides should not be counted as house hold members when determining household size and their income, if any, is not included when calculating annual income.

This class does not qualify you for DPA. This course is one of the many requirements of DPA. You will need to complete an application with the DPA administrator to see you qualify.

You can take homebuyer education through any number of our partners including Frameworks CDC 512-385-1500, CCCS of Austin 512-447-0711 each are certified housing counselors and each has flexible schedules.

 Yes, this is a series of three classes and all three must be completed before you can receive your certificate.

Your eligibility to buy a home will be determined by your lender, this class only guarantees that you have met the requirements for homebuyer education.

Check with your lender to see if homebuyer education certification requires that both of you attend.

DBRA is a set of laws enacted to provide labor standards on certain federally-funded projects.  DBRA specifies the minimum wage a worker in a certain trade should receive, requires that workers be paid weekly, requires that they receive 1.5 times their hourly wage for any hours worked over 40 hours in a single week, and makes unauthorized payroll deductions or kickbacks to employers illegal.  Locally, a Labor Standards Officer (LSO) will be appointed to a particular project, and the LSO is responsible for reviewing weekly certified payrolls submitted by contractors and subcontractors.  The LSO ensures the requirements of DBRA described above are met.

No, AHFC will provide a  pre-approved contractor  from our departments master solicitation rotation list.

Not in all situations, but AHFC reimburses up to $3,000 for approved relocation expenses for the HRLP program.

Contractor/Subcontractor Activity Reports provide information on businesses employed to work on a particular project.  The types of information collected include the type of trade, whether it is a minority- or woman-owned business enterprise, the ethnicity of the contractor or subcontractor, the amount of the contract or subcontract, etc.

Some of the programs offered by the AHFC are grants, other programs require a deferred loan, which will be forgiven if you stay in the house for a certain number of years.

Many different types of projects can be funded with CDBG.  The City of Austin has elected to use its CDBG funds for the benefit of low- to moderate-income households.  CDBG projects funded through the City include emergency home repair, home modifications for disabled persons, and acquisition of land for affordable housing to name a few.  In addition the City uses CDBG to fund child care, services to elderly persons, tenant counseling services, and small business development.

The funding provided is always a loan.  However, in the case of projects that serve extremely low-income persons, the loan can be forgiven after successful completion of the affordability period.

CHDO stands for Community Housing Development Organization, a special federal designation for non-profit affordable housing organizations that meet certain qualifications.  Certain amounts of funding are reserved for CHDOs only, such as 15% of the City’s annual HOME allocation, eligibility for pre-development loans, and eligibility for operating expenses grants.

CHDO Toolbox:  http://www.hud.gov/offices/cpd/affordablehousing/library/modelguides/200...

HOME funds have certain restrictions and in some cases, the City imposes more stringent requirements.  For example, housing assisted with HOME funds must remain affordable for a certain period of time based on the amount of HOME funds invested.  This is called the “affordability period” which can last anywhere from 5 years to 20 years.  The City sometimes imposes longer affordability periods on certain projects, in some cases up to 99 years.  Some other restrictions include income limits, property standards, and limits on home sales prices.

There are a number of requirements an organization must meet to become certified as a CHDO.  The NHCD CHDO Certification Application spells out the requirements. 

The certification is found at: http://www.ci.austin.tx.us/ahfc/downloads/Certification%20Application%20...

All affordable housing programs have income eligibility requirements.  For ownership housing programs, a household’s total income cannot exceed 80% of the Austin Median Family Income (MFI). The income of all adult members of the household is included when calculating the total household income.  Certain items are included when calculating income and other items can be excluded from the income calculation.

Sources of Income Included in Calculating Household Income:  Some examples include wages from employment, net income from self-employment, monthly Social Security or Disability checks, food stamps, and child support.

Sources of Income Not Included in Calculating Household Income:  Income of children under age 18, college financial aid, income tax refunds, lump sum payments from such things as insurance claims, inheritance, and settlement payments arising from litigation.

Income from Assets Included in Calculating Household Income:  Income from assets is calculated if the value of the assets exceeds $5,000.  Examples of income from assets include interest, dividends, profit from royalties, and income from payments from an estate or trust fund.  [NOTE:  The value of the asset is not what is counted.  It is the income the asset produces that is counted toward total household income.]

Any project or activity assisted with federal funds must undergo an environmental review to ensure the project or activity “will not have a significant adverse environmental impact and to encourage the modification of projects to enhance environmental quality and minimize environmental harm.”  [24 CFR 50 § 50.3] 

Following the procedures established by HUD to perform an environmental review constitutes Environmental Compliance.

Count on 3 to 6 months.  Each project is different, and there are many factors that can affect the length of time needed to move an application through the approval and loan closing process:  environmental review, deal structuring, lead time needed to get an item on the Council agenda if necessary, preparation and review of loan documents, other lenders’ requirements, etc.

Bonds are issued as one way to finance the development of affordable rental and ownership housing.

Contractor/Subcontractor Activity Reports provide information on businesses employed to work on a particular project.  The types of information collected include the type of trade, whether it is a minority- or woman-owned business enterprise, the ethnicity of the contractor or subcontractor, the amount of the contract or subcontract, etc.

“Section 3” refers to Section 3 of the Housing and Urban Development Act of 1968 which requires that recipients of certain HUD financial assistance, to the greatest extent possible, provide job training, employment, and contract opportunities for low- or very-low income residents in connection with projects and activities in their neighborhoods.

On federally-funded projects, reporting is required if any contract or subcontract exceeds $10,000.  However, because the reporting form collects additional useful information, AHFC often requires it on non-federal contracts as well.

Section 3 is applicable for contracts in excess of $200,000 or in excess of $100,000 for a subcontractor.

Supportive housing can help people with psychiatric disabilities, people with histories of addiction, formerly homeless people, frail seniors, families, young people aging out of foster care, individuals leaving correctional facilities, and people living with HIV/AIDS to live independently with dignity in the community. Tenants of supportive housing often face two or more of these categories of challenges. For these populations, permanent supportive housing is a highly effective intervention. Research indicates that • More than 80% of residents stay housed for at least one year • Incarceration rates are reduced by 50% • Emergency room visits decrease by 50% • Emergency detoxification services decrease by 85%, and • There is a 50% increase in earned income.

Although permanent supportive housing is a resource-intensive intervention, the high public costs of homelessness mean that it costs essentially the same amount of money to house someone in stable, supportive housing as it does to leave that person homeless and stuck in the revolving door of high-cost crisis care and emergency housing. Cost studies demonstrate that we can either waste money prolonging people’s homelessness or spend those dollars on a long-term solution that produces positive results for people and their communities.

For more information please see the full City of Austin Permanent Supportive Housing Strategy.

Permanent supportive housing is permanent, deeply affordable housing where services are offered to help homeless, disabled and low-income people live independently in the community. Tenants have leases or lease-like agreements; apartments are affordable; rent cannot exceed a third of tenants’ income; and property management and services are provided by not-for-profit organizations.  The concept behind supportive housing is simple: Tenants rent attractive, safe, affordable apartments and have access from on-site or off-site professionals to whatever support they need to stay housed and healthy.

Residents will primarily include Austin's most vulnerable chronically homeless population, many of whom are frequent users of public services like 911, courts and hospitals. Tenants can include people with psychiatric disabilities, people with histories of addiction, seniors, families, people living with HIV and AIDS, and young adults transitioning out of foster care. In most cases the service provider organization selects tenants from its own waitlist or pool of clients, and lets other agencies know when they have an opening. They then screen the client based on their particular program or tenant screening guidelines.

Supportive housing is built to blend seamlessly with buildings around it. Not-for-profit organizations typically develop supportive housing to be either the nicest building on the block or ‘invisible’ to enhance desirability for neighbors and tenants.  In some areas, it might be a few units within an existing apartment complex, and in other areas it might be an entire building.

The range of services offered is flexible and depends on the needs of the residents. They can include medical and mental healthcare, vocational and employment services, child care, substance-abuse counseling, and independent living skills training.