About the program
City Council unanimously approved the updated guidelines for the $18 million program—what the city is calling HbAP 2.0—to provide funding to low-income, first-time homebuyers for down payment assistance, closing costs and principal buydown.
Houston homes have increased in prices since Hurricane Harvey. A 2023 Rice University Kinder Institute for Urban Research study highlighted how Houston homes now average $509,986. In 2017, the average price of homes in Houston were roughly $296,400, according to Texas A&M University Texas Real Estate Research Center.
According to documents, the homebuyer assistance program is limited to applicants who meet the definition of a first-time homebuyer, including:
- A homemaker or single parent who has previously owned a marital home and is now owned by the former spouse
- An individual who has only owned a property that was not permanently affixed, i.e. a mobile home, to a permanent foundation per Tex Occupation Code 1201.003(12)
- An individual who has only owned a property that was not in compliance with state, local or model building codes, and which cannot be brought into compliance for less than the cost of constructing a new permanent residence
- An individual who has had no ownership in a residence during the three years ending on the date of the purchase of the property
- This includes a spouse (If an individual meets the above test, they are considered first-time homebuyers)
- Individual(s) replacing a home that was lost during Hurricane Harvey
- Renters must have resided in the City of Houston on or before Aug. 25, 2017
The original program, which was approved by council Jan. 9, 2019, offered up to $30,000 to income-qualified first-time homebuyers. With this new, revamped program, the amount has increased to a range of $50,000 to $125,000 depending on the compliance period—the required number of years the property must be the homeowner’s primary residence ranging from five, eight and ten years—according to city documents.
City of Houston Housing Director Mike Nichols said the new program is expected to assist 200 households.
“We’re going to be in front of this nationally to bring more affordability to Houston,” he said. “This is a small step. It will impact over 200 families, but it’s a big step not only for these families, but also the direction that we want to move.”
Ariel Buford, a public information officer for the Housing and Community Development Department, said in an email that the department anticipates the program starting in late February, shortly after they finalize a contract amendment with the Texas General Land Office.
What council members are saying
Council member Edward Pollard asked Nichols if homeowners would be affected if the home’s value or property tax rate increases.
“This program is not right for everybody,” Nichols said in response. “It’s right for individuals who have very minimum income, no debt and enough sustainability to handle this.”
Mayor John Whitmire said this is a historic collaboration between the Texas General Land Office and something he has been working on since the beginning of his administration.
“We made very clear that affordable housing was one of our highest priorities as we deal with displaced individuals from Harvey, as we deal with the homeless population and low-income and middle-income Houstonians,” he said.
Council member Tiffany Thomas, who also serves as chair of the Housing Committee, said this program will help Houston grow and keep people in their neighborhoods.
“This is a huge deal for the city,” she said. “I look forward to several many successes that come from this program. Moving forward, I hope it’s a model on how we reorganize our own down-payment assistance to keep this level moving forward.”
