Recognizing that homeownership is the key to creating stable families and communities, the Texas Department of Housing and Community Affairs (TDHCA) has announced two major funding awards to one local government and one nonprofit housing finance agency to assist eligible residents with the purchase of their first home and provide much-needed economic benefits to the local construction industry.
The City of Bay City received $260,000 in homebuyer funds, which the city anticipates will assist 25 first time homebuyers. Officials with Southeast Texas Housing Finance Corporation, a nonprofit housing finance agency, expect its $182,000 award to help another 18 households purchase a home.
“In Matagorda County, we’ve seen the housing market outpace the income of some residents,” said Michael Gerber, TDHCA Executive Director. “These funds will help families overcome the biggest obstacle many homebuyers face: meeting the down payment requirements.
“Promoting homeownership is a critical mission of the Department,” he continued. “Besides helping to strengthen families and neighborhoods, these funds will help generate local construction jobs and increase area employment opportunities. We’re proud to help Matagorda County and contribute to an improved quality of life for all county residents.”
TDHCA awards homebuyer assistance funds to eligible applicants through the Department’s HOME Investment Partnerships (HOME) Program, which helps provide down payment and closing cost assistance to qualifying first time homebuyers. Assistance is limited to 6 percent of the home purchase price or $10,000, whichever is greater. Eligible applicants include qualifying units of local government, public housing authorities, Community Housing Development Organizations and other nonprofit groups, and qualifying for-profit organizations.
The U.S. Department of Housing and Urban Development (HUD) is the funding source for the HOME Program. The program is designed to serve households earning no more than 80 percent of the area median family income. For Matagorda County, this equals an annual income of $38,500 for a family for four.