City Council adopts resolution to launch bond-funded Down Payment Assistance Program

City of Asheville Feb 2019 announced the City of Asheville Down Payment Assistance program.

The City of Asheville affordable housing bond referendum seeks to make home ownership available to low and moderate income City residents and staff. City Council took a step toward making those funds available when they adopted a Down Payment Assistance Policy resolution during their Feb. 26 meeting.

 Here is the resolution: City of Asheville Down Payment Assistance staff report

Adoption of the policy paves the way for the City’s Down Payment Assistance Program (DPA) to begin offering down payment assistance to qualified applicants. Beginning this spring, the City’s Down Payment Assistance Program (DPA) will make a total of $1.4 million available to qualifying individuals and families to help them buy a home. The funding is a combination of $1 million in bond money and through public private partnership with the Federal Home Loan bank ($400,000).

 This $400,000 in down payment assistance will be available to qualifying full-time City employees, including our “Community Heroes,” such as our police officers, firefighters and teachers who have been employed with Asheville City Schools for at least one year.

Homebuyers still must provide $1,000 of their own down payment money.

For either fund, the maximum amount of DPA funding that can be borrowed is limited to 20% of the home sale price, not to exceed $40,000. Qualified applicants need to have an income between 80% and 120% of “Area Median Income,” also called AMI. The Area Median Income (AMI) is the midpoint of a region’s income distribution — half of families in a region earn more than the median and half earn less than the median. For the City’s Down Payment Assistance Policy, AMI income thresholds identify households eligible for this down payment assistance. In other words, it’s a qualifying formula.

Find out more at open house
The City will hold an open house for its Down Payment Assistance Program from 10 a.m. to noon May 18 at the Stephens Lee Center gymnasium, 30 George Washington Carver Ave. There potential home buyers can meet with lenders knowledgeable about this lending tool.

“We want to make these funds available to eligible individuals and families where down payment assistance can help lower the monthly mortgage payment to an affordable amount,” said City Housing Development Specialist Paul D’Angelo.

Look for more information on the City of Asheville website soon. In the meantime, contact City Housing Development Specialist Paul D’Angelo at PDangelo@ashevillenc.gov or 828-251-4098.