HOMEOWNERSHIP DEVELOPMENT PROGRAM (HDP)

NOTE: If you are interested in registering your property with the City of Columbus Vacant Property Registry, please visit the following website: https://slate.tolemi.com/c/columbus-oh  

Applications are provided once a qualified organization has met with Housing Division staff to have both the organization and proposed project vetted for eligibility. Funding for this program is limited.

For additional information please contact:

Kristina Eason, Program Manager
Office: 614-645-9643
homeownershipdevelopment@columbus.gov

HDP Program Guidelines

Please click here for  HDP Guidelines.(PDF, 319KB)

The Homeownership Development Program (HDP) is designed to redevelop residential homes and residential properties either for sale as homeownership opportunities or for short term lease purchase (up to 36 months) within the city of Columbus. The program provides development and affordability gap financing based on need but not to exceed a total of $60,000.00 per unit in the form of a deferred forgivable loan. The City may consider larger gap financing amounts only if there are extraordinary circumstances and other financing sources cannot address the full gap.

This provides an incentive for non-profit and for-profit developers and/or builders to rehabilitate or construct quality homes to AWARE standards available for sale at an affordable price for income qualified homebuyers. Applicant and property criteria for participation in this program are outlined below.

The City receives funds from the U.S. Department of Housing and Urban Development (HUD) to conduct activities that are in compliance with the HOME Investment Partnerships Program with regulations at 24 CFR Part 92.

Geographic Information

Priority will be given to projects located in one of the City of Columbus’ Neighborhood Investment Districts (NIDs) and Community Reinvestment Areas (CRAs); eligibility extends elsewhere in the city of Columbus. A non-profit certified as a CHDO can develop anywhere within their established boundaries.  Please click here for more information regarding CRAs. 

Eligible Applicants

Non-profit and for-profit developers are eligible to apply including Community Development Housing Organizations (CHDO's). A non-profit certified as a CHDO can develop anywhere within their established boundaries. The City will also evaluate a development organization's proven track record of completing, financing, and selling its proposed product. 

Eligible Property

Single family residences (including double conversions into single family homes, condos and fee simple townhomes), which will serve as the principal residence of the prospective homeowner, are eligible. Rental properties are ineligible. Units must be decent safe and sanitary as determined by the City before they are sold. Priority will be given to developers who take control of the site(s) from the Land Bank. 

Property Value Limitations

The selling price and the appraised value of all properties used in this program cannot exceed 95% of the U.S. median purchase price for new construction and existing housing limits for the area as defined by HUD. Subsidy provided cannot exceed maximum per unit subsidy limits established by HUD based on unit size.

Eligible Activities

Eligible activities include items such as acquisition/rehabilitation and soft costs; new construction with acquisition and soft costs; and affordability gap financing for the homebuyer. Construction must begin within three (3) months of loan closing.

Financing Guidelines

Financing may be a combination of a Development and/or an Affordability Gap. The City may consider larger gap financing amounts if the applicant can demonstrate financial need based on construction costs, appraisal values, and/or buyer affordability need. A minimum of $1,000 in affordability gap subsidy is required as part of the project structure when there is a development gap only funding request. Subsidy provided cannot exceed maximum per unit subsidy limits established by HUD based on unit size.

• Developer/Builder Forgivable
  • Maximum Developer Loan Limits: up to $60,000 per unit may be loaned for the purpose of Development and Affordability subsidies. The City may consider larger gap financing amounts only if there are extraordinary circumstances and other financing sources cannot address the full gap and if the applicant can demonstrate financial need based on construction costs, appraisal values, and/or buyer affordability needs.
  • Term: Deferred 24 months. However, the home must be sold or leased to a qualified buyer within nine months of completion.
  • Interest Rate: Five percent (5.0%) interest will accrue and compound annually if the unit is not sold or leased within nine months of completion to a qualified homebuyer.
  • Repayment: No repayment of the Development Gap principal or accrued interest will be required if the property is sold or leased within nine months of completion to a qualified homebuyer that meets the qualifications outlined in Income Qualified Homebuyer Forgivable Loans below.

   

•  Loans

Eligible Home Buyers

Households with annual gross income at or below 80% of the area median income (AMI) adjusted for household size as defined by the U.S. Department of Housing and Urban Development (HUD). Homebuyers may be eligible for the American Dream Downpayment Initiative  (ADDI) Program if they are a first time homebuyer and meet program guidelines. Total household income is used when calculating annual gross income. The total yearly household income includes the income of all adults 18 years of age and older living in the home. The family size includes all persons living in the home.  

Click here to download the current HUD Income Limits

City Reservation of Rights

The City of Columbus reserves the right to waive the provisions of these guidelines within the limits of the Federal HOME, CDBG, City and State regulations in order to advance its mission and the goals of the Consolidated Plan. Such waiver shall not be construed as a general set-aside of the provisions and is at the sole discretion of the Director of the Department of Development.

These guidelines outline the basic funding requirements of this program and are not meant to be all-inclusive. The funds for this program are limited. As such, they will be available on a first-come, first-served basis based on submission of eligible projects.