The City of Dallas has expanded its homebuyer assistance program as housing prices continue to rise in North Texas.
The Dallas Homebuyer Assistance Program (DHAP), according to the city, “provides homeownership opportunities to low- and moderate-income homebuyers through the provision of financial assistance when purchasing a home.”
The DHAP is aimed only toward homebuyers purchasing a home within Dallas city limits. It is funded with taxpayer dollars distributed by the federal government.
The city is working on expanding the program to include an Anti-Displacement Homebuyer Assistance Program for renters who have lived within the city for at least 10 years and may leave the city limits for a less expensive home in the suburbs.
“The focus is to encourage current residents to buy and remain in the city of Dallas,” Page Jones, public information officer, told The Dallas Express.
Jones said the city council will consider this expansion on February 22. The program will provide up to $50,000 of taxpayer money in assistance and will “serve households from 50%-120% of the area median income.”
Additionally, the council will consider increasing the amount of assistance across the rest of the DHAP by up to $50,000 “to help homebuyers qualify due to increasing home prices and interest rates.”
Jones told The Dallas Express that DHAP specifically assists qualified households with a down payment, closing costs, and principal reduction for home purchases.
Funding for DHAP comes from the Dallas County Community Development Block Grant Program and the Home Investment Partnerships Program, according to Jones. Both sources consist of federal taxpayer dollars distributed by the U.S. Department of Housing and Urban Development (HUD).
“Homebuyers are required to take eight hours of homebuyer education from a HUD-certified counseling agency and have mortgage prequalification from an approved lender,” she said. “The assistance is a deferred forgivable loan, forgiven on an annual basis based on the residency terms of the loan.”
“I applaud you for this increase and I look forward to it going to the hands of people who have been here in the city of Dallas,” Councilmember Jesse Moreno told housing officials Monday.
Councilmember Jaynie Schultz asserted that the program is “a potentially huge win for the residents of Dallas.”
City officials have reportedly said they are coordinating with lenders to ensure the program works effectively.
The City’s Housing Department also administers the tax-funded Targeted Occupations Homebuyer Assistance Program. This program is “designed to provide homeownership opportunities to those who have a direct impact in Dallas communities and intended for those in the educational instruction and librarian services, healthcare, and protective services.”
