Overview and Description

Even when a household has enough money for monthly mortgage payments, it can be a significant challenge to assemble the lump sum required to cover the down payment and all closing costs. Assistance is often offered in the form of a grant or forgivable loan. Many programs target specific populations, like first time buyers or buyers within certain income limits and may pair financial assistance with housing counseling or other supports.

Program Lead: Local Government, Non-Profit or Employer

Role for Local Government: These assistance programs can be offered by a public agency, nonprofit, private entity, or a joint partnership (when offered by private companies, this may also be called an "employer-assisted housing program" or EAH). Local governments should ensure that programs complement CHFA's existing homebuyer loan and down payment assistance program. Local governments should also work with partners or other programs serving renters to create pathways from rentership to homeownership. ​

Overview and Description

In cases where traditional mortgage products are not workable or affordable for some homebuyers, creative mortgage products and programs can expand homeownership opportunities. These can take a variety of forms, but generally either allow alternative mortgage terms (e.g, offering below-market interest rates), or utilize a shared equity model to bring down costs. A shared appreciation mortgage, for example, is a mortgage where the lender is paid back (in total or in part) by a share of the increase in value of the property. Often, this allows prospective homebuyers to purchase homes that might otherwise be out of reach, while still building equity. These mortgages are typically offered as part of a government-sponsored homeownership program and often as a deferred loan, where repayment is not due until sale of the home or a mortgage refinancing. While this model does not preserve the affordability of the home for the next purchaser, it does generate returns when the mortgage is repaid that can be used to offer a new shared appreciation mortgage to another homeowner in the future.

Program Lead: Local Government, Nonprofit or Financial Institution (e.g. CDFI)

Role of Local Government: Local governments can identify needs and gaps in existing mortgage products, engage specific populations and lenders to determine what types of products will be workable, and work with lenders or nonprofits to inform the development of alternative products. Local governments can also develop these products themselves if they choose.

Overview and Description

Increasing property taxes decreases housing affordability and can accelerate risk of foreclosure and displacement among homeowners, particularly those with low or fixed incomes. Property tax relief can take a variety of forms, including rebate checks sent directly to homeowners. These programs can target specific populations such as lower-income households or seniors. Property tax relief may also include support for homeowners that have already fallen behind on their taxes, including debt forgiveness, counseling, and/or financial assistance. This kind of relief can also support property owners that rent to low-income tenants. In Colorado, property tax relief exists for qualified seniors and individuals with disability.

Program Lead: State or Local Government

Role for Local Government: Property tax exemption programs often require state authorization and implementation; however, local jurisdictions should advocate for eligibility criteria and amount of tax relief.

Overview and Description

Foreclosure prevention programs can be organized by local elected officials and offered to constituents who are experiencing or are at risk of foreclosure. These programs help to educate on best financial practices, provide funding for emergencies (including determining eligibility for state or other funding) or households in immediate crisis, offer legal assistance if necessary, and other forms of support to reduce future cases of foreclosure.

Program Lead: Local Government or Non-Profit

Role for Local Government: Local governments can bring many resources to the table for this type of program, including funding (administration of state or federal resources), support for counseling, partnership with organizations offering housing counseling, and program referrals or connections for those facing foreclosure.

Overview and Description

Housing counseling programs typically combine education on housing-related issues with one-on-one counseling to improve housing outcomes. These programs can serve multiple purposes, depending on their design and intended beneficiaries.

For renters, housing counseling programs can assist with financial education and credit counseling, finding and applying for units, providing information about neighborhoods to help recipients evaluate options, and helping the renter understand their eligibility for housing assistance programs and how to obtain them. In cases where a renter is facing eviction or having a dispute with their landlord, counseling programs can help them understand their legal rights, implications of the situation, and connect them to legal support if necessary. (see housing security programs above).

For existing and prospective homeowners, housing counseling programs can provide pre-purchase education (i.e. things to know before becoming a homeowner), post-purchase education (i.e. helping current homeowners maintain their home - refinancing options, physical maintenance and upkeep, etc.), or a combination of the two. Some home purchase assistance programs require applicants to complete this type of training/course to be eligible. Local officials can partner with credited housing counselors to provide residents with these services.

Program Lead: Credited Housing Counselors and Service Providers

Role for Local Government: The Department of Housing and Urban Development (HUD) has funds available for HUD certified housing counselors, however, these funds do not always cover the full costs of housing counseling. Therefore, local elected officials can supplement HUD funding for housing counseling programs to ensure counseling assistance is available for constituents. Additionally, local elected officials can create housing counseling programs and partner with certified housing counseling providers to ensure their constituents are able to access regionally specific and verified information regarding their housing market.

Overview and Description

Homeowner Rehabilitation programs are designed to help low-income or other priority populations fix unsafe conditions in their homes. Such programs can cover a wide variety of repairs or be tailored to specific needs (aging in place or accessibility modifications, energy efficiency upgrades, lead paint abatement, etc.) or certain levels of rehabilitation (e.g., facade improvements, minor repairs, moderate rehabilitation). Emergency repair programs can support residents with problems that pose an immediate threat (broken furnace or water heater, potentially hazardous plumbing and electrical systems). Funding usually takes the form of grants, subsidized loans or in-kind services.

Program Lead: Local Government or Non-Profit

Role for Local Government: Local governments can implement these programs directly or fund a third- party non-profit. Jurisdictions can establish housing rehabilitation codes to streamline the rehab process.