Durham Strategic Plan Dashboard
Prosperity
Status Indicator: 
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Complete/Ongoing
Initiative: 3.21 Advance home ownership programs
Connected, Engaged, & Inclusive Communities
Description
The Community Development Department is invested in advancing home ownership 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, 2) Minor Repair and Substantial Rehabilitation Program, and 3) City-Owned Surplus Lots.
Key Measures & Data Analysis
• The Department has numerous programs that are offered within the "advance home ownership programs" initiative. The chart depicts the Minor Repair Projects completed from December 2021 (FY 2022) through December 2024 (FY 2025).
• Habitat for Humanity has steadily administered the Minor Repair Program, averaging 2 repairs per month since contract execution. Supply shortages and increased costs of materials, paired with restrictions on working in resident's homes to reduce the spread of COVID-19, impacted program performance.
Completed Minor Repair Projects
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 Surplus Lots programs support eligible households in making homeownership a reality despite challenging real estate market conditions. Additionally, our Repair and Rehabilitation Programs help protect current affordable housing stock and allow Durham residents to remain safely in their homes.
What have we been doing?
Through this initiative, we have been managing the following home ownership programs:
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.
- As of December 2024, a total of 13 loans have been issued totaling over $815,000+ in assistance to first-time homebuyers.
- 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. Minor Repair & Substantial Rehabilitation Program
- The City of Durham Minor Repair & Substantial Rehabilitation Program is currently administered by Habitat for Humanity of Durham. They help eligible Durham homeowners with limited income correct substandard housing conditions, which pose an imminent threat to life, safety or accessibility
- In May 2024, a competitive Request for Proposals (RFP) was released seeking experienced organizations to continue administration of the Minor Repair and Substantial Rehabilitation programs for a new 3-year term. Proposals were due in July 2024 and evaluated in October 2024. The Department has been working on drafting contracts for the recommended vendors to go before City Council.
3. 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, we will work towards the following:
1. Down Payment Assistance (DPA) Program
- Continued program management and monitoring.
- Exploring additional mechanisms to market the program to eligible homebuyers.
2. Minor Repair & Substantial Rehabilitation Program
- Continued management of the contract with Habitat for Humanity who currently administers the Minor Repair and Substantial Rehabilitation programs.
- Execute contracts with the vendors recommended through the RFP process. We anticipate the contracts will go before City Council in the Spring of 2025.
3. 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.
Additionally, we will be reviewing the Forever Home, Durham goal of "provide 400 affordable homeownership opportunities for low-income homebuyers." This goal was established prior to COVID-19, and economic and real estate market changes have impacted the provision of affordable homeownership. Any changes to the performance measures for this goal can be found at: https://www.durhamnc.gov/4593/Forever-Home-Durham
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