Durham Strategic Plan Dashboard
Prosperity
Status Indicator: 
In Progress | 
On Hold | 
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 in FY 2022 through FY 2024.
• 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.
• This program was relaunched in July 2023.
• Revisions were made to the Program Policy and Underwriting Guidelines in October 2023.
• Worked with City of Durham Communications Department to develop a commercial marketing the program. The commercial has aired in local media outlets and on the City's social media platforms.
• Appeared on the June 2024 CityLife Talk Show to share information about the Down Payment Assistance Program. To view the June 2024 CityLife episode, please visit: https://www.youtube.com/watch?v=jZpAXJQisrg&list=PL55F2BC0E2C30C05D&index=4&t=389s
• 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.
• On May 31, 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. All proposals must be submitted by July 29, 2024. For more information about the RFP, please visit: https://www.durhamnc.gov/CivicAlerts.aspx?AID=3661
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, three vendors were selected to develop homeownership housing units on 12 City-owned vacant 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.
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.
• Maintain the timeline established in the competitive Request for Proposals (RFP) to onboard new vendors to administer the Minor Repair and Substantial Rehabilitation programs for a 3-year period.
3) City-Owned Surplus Lots
• Execute development agreements with 3 vendors selected to create homeownership housing units on 12 City-owned vacant 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
City Website Home Page: Durham, NC | Official Website (durhamnc.gov)
Budget Website Page: Budget & Management Services Department | Durham, NC (durhamnc.gov)
Budget and Management Services Department
Office of Performance and Innovation
Strategy and Performance Division