At the end of February, the City of Asheville adopted a Down Payment Assistance Program for qualifying Asheville residents. The program was passed unanimously by Asheville’s Affordable Housing Committee back in January + then recommended to City Council, who officially adopted it.

The deets: A total of $1.4 million has been designated for the program, with the goal of helping low- to moderate-income residents buy homes in Asheville, which has come under increasing criticism for its lack of affordable housing. The funding helps home buyers qualify for an affordable mortgage. 🏡

Here’s what else you need to know –

Eligible applicants must make 80% or less than the area median income , or AMI ( $42,940 for a single person and $61,300 for a family of four in 2018) and be residents (or want to become residents) of the City of Asheville.

An additional $400,000 from a partnership with the Federal Home Loan Bank of Atlanta will provide funding to eligible, full-time City of Asheville employees, including “community heroes” (like teachers, firefighters, and policemen who have been employed by the City for at least a year) who make between 80% and 120% of the area median income.

The home must be in the City of Asheville , must be a single-family residence + must be the full-time residence of the buyer.

Only first-time homeowners (defined as people have not owned a home in the past three years) are eligible + must complete an approved homeowner education course .

$1 million in funds are from a Housing Bond Funding package passed in 2016. Of that amount, $500,000 is set aside until Dec. 2021 for people making 60% or less of the AMI.

Homebuyers must provide $1,000 towards their down payment .

The total amount borrowed may not exceed 20% of the total home sale price, or a max of $40,000 . The assistance depends on where you fall in comparison to AMI. Up to $5,000 will be available.

You’ll work with your bank , lender , and/or realtor , who will be in the know about the DPA program, as normal . There’s no application through the city at this time .

The funds are in the form of a 30-year loan – repayment of DPA is required when the home is sold, refinanced, becomes a rental property, etc. If the home has been a primary residence for 30 years and you are the owner, the DPA loan is forgiven. The repayment amount also decreases after 21 years of living in the residence.

City bond funds must be spent by Oct. 2023 , and FHLBA funds must be spent by March 2020 .

Want to find out more – straight from the source? The City will host an informational meeting on Sat., May 18 from 10 a.m.- 12 p.m. at the Stephens Lee Center Gymnasium (30 George Washington Carver Ave.)

DYK: There are several developments in Asheville designated affordable (available to people making 80% or less of the AMI) for renters? Here’s the full list.