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Status Indicator: In Progress | On Hold | Complete/Ongoing

Initiative: 3.21 Advance home ownership programs

Connected, Engaged, & Inclusive Communities

Description

The Housing & Neighborhood Services Department is invested in advancing homeownership opportunities and programs. This initiative aligns with our Forever Home, Durham goal of providing 400 affordable homeownership opportunities for low- to moderate-income homebuyers. We manage the following programs in support of this effort: 1) Down Payment Assistance (DPA) Program and 2) City-Owned Vacant Lots. 

Key Measures & Data Analysis

The Department has numerous programs that are offered within the "advance home ownership programs" initiative. The chart depicts the Down Payment Assistance program for households assisted from January 2024 (FY 2024) through April 2026 (FY 2026).

Loans Closed Down Payment Assistance Program

Why is it important?

We recognize investment in homeownership programs is crucial in promoting household stability, financial strength, and fostering community belonging. Our Down Payment Assistance Program and City-Owned Vacant Lots programs support eligible households in making homeownership a reality despite challenging real estate market conditions.

What have we been doing?

Staff have continued expanding homeownership opportunities through partnerships with nonprofit housing developers and the City’s Down Payment Assistance (DPA) program. Efforts have focused on preparing City-owned lots for development and supporting first-time homebuyers through financial assistance and program improvements.

1. Down Payment Assistance (DPA) Program

    • Eligible homebuyers may receive up to $80,000 for down payment and closing costs assistance towards the purchase of a home in the City of Durham. The home must be used as the homebuyer's primary residence. Funds will be provided as a forgivable loan with a 0% interest rate and a 15-year term. Loans will be made on a first-come, first-served basis until $4.3 million in available program funding is depleted.
    • Fiscal Year-to-date for FY2026, a total of 26 loans have been issued totaling over $1.7M+ in assistance to first-time homebuyers.
    • Since program relaunch in 2023, the DPA program has issued 47 loans with 5 underway to close.

Interested homebuyers can apply for Down Payment Assistance through a participating lender. For a list of participating lenders and more information about the program, please visit: https://www.durhamnc.gov/4609/Down-Payment-Assistance-Program

2. City-Owned Surplus Lots

    • In the Fall of 2023, a Request for Proposals (RFP) was released for a non-profit development organization to construct affordable for-sale units on 14 City-owned vacant lots. Through this competitive proposal process, 3 vendors were selected to develop homeownership housing units on 12 City-owned vacant lots.
    • Development agreements with Habitat for Humanity of Durham, Black Lamb Development Corporation, and Durham Community Land Trustees (DCLT) were executed in the Fall of 2024 to begin development on the 12 lots.

What's next?

In the coming months work to expand homeownership opportunities will continue through the following activities:

1. Down Payment Assistance (DPA) Program

    • Continued program management and monitoring.
    • Developing a marketing strategy and dashboard to better communicate program results and opportunities.

2. City-Owned Surplus Lots

    • Continue to work with Habitat for Humanity of Durham, Black Lamb Development Corporation, and Durham Community Land Trustees (DCLT) on the development of the 12 lots.
      • Completing deed conveyances and advancing development with nonprofit partners.

City Website Home Page: Durham, NC | Official Website (durhamnc.gov)
Budget Website Page: Budget & Management Services Department | Durham, NC (durhamnc.gov)

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