Affordable Home Development Program
The City of Houston’s Housing and Community Development (HCD) Single Family division’s mission is to create new single-family homeownership opportunities throughout Houston. The City will finance the building of new mixed-income neighborhoods to increase attainable homebuyer opportunities for Houstonians at various income levels. The Single Family division currently oversees the Affordable Home Development Program.
Information for Homebuyers
To successfully complete the application, you will need to have done the following and be ready to upload your documentation.
- Be a U.S. citizen or permanent resident. (This includes the co-applicant, and spouse)
- Household Adjusted Gross Income (AGI) at or below 120% Area Median Income (AMI) (Español) .
- Obtained a Pre-Approval Letter from your Lender.
- Must be dated within the last 120 days.
- Obtained an 8 Hour Homebuyer Education Certificate from a HUD Approved Agency.
- Completed all Required Documents in the Homebuyer Checklist Packet .
Information for Developers
The Affordable Home Development Program seeks to create communities of single-family homes around Houston. By financing developers on their eligible projects, the City can make it possible for developers to sell homes to current Houstonians at affordable prices.
Learn More Questionnaire Application Portal View Unsolicited ProposalsSubscribe to our email list to be notified about upcoming funding opportunities.
Affordable Home Development Program Properties
Through the Affordable Home Development Program, both for-profit and non-profit developers receive funding from the City of Houston to make homes attainable for Houstonians earning up to 120% Area Median Income (Español) .
Development Status
Not accepting applications
Accepting Applications
Now Accepting Applications
Additional Developer Requirements
New Homes for OST South Union
The City of Houston is partnering with Agape Homes CDC to develop homes near 6412 Calhoun Road in the OST / South Union neighborhood. Agape will oversee the new construction of 80 single-family homes, including 57 affordable homes and 23 market-rate homes.
Now Accepting Applications
New Homes for Northside
The City of Houston is partnering with Cityside Homes to develop homes in the Northside community. Cityside will oversee the construction of 59 new single-family homes, including 40 affordable and 19 market-rate homes.
Now Accepting Applications
Additional Developer Requirements
New homes for OST – South Union on MLK BLVD
The City of Houston has partnered with Mayberry Homes and Midtown Redevelopment Authority to develop homes in the Old Spanish Trail community. Mayberry Homes oversaw the new construction of 40 affordable single-family homes.
Project Under Development
New Homes For the Greater Third Ward
The City of Houston is partnering with Midtown Redevelopment Authority and five other developers to build homes throughout the Greater Third Ward. The partnership will lead to the construction of 47 new affordable single-family homes in five locations throughout the community.
Now Accepting Applications
Additional Developer Requirements
New Homes for Northeast Houston
The City of Houston is partnering with Houston Habitat for Humanity to develop Robins Landing in Northeast Houston. Houston Habitat for Humanity will oversee the construction of a new mixed-income, master-planned community with a total of 468 single-family homes, including 400 affordable homes and 68 market-rate homes.
Projected Start – Winter 2024
New Homes for South Park
To Each His Home Community Redevelopment Corporation and Horizon Residential Communities, LLC will oversee the horizontal and vertical construction necessary to prepare the lots for the new construction of 91 single-family homes, including 60 affordable homes and 31 market-rate homes, located at 5003 Almeda Genoa, Houston, Texas 77048.
Projected Start – Winter 2024
New Homes for South Houston – Garver Heights & Zuri Gardens
The City of is partnering with Cole Klein Builders to develop homes on two sites in the Minnetex Houston community. Cole Klein will oversee the construction of 200 new single-family homes, including 160 affordable and 40 market-rate homes at Garver Gardens and 80 affordable homes at Zuri Gardens..
Projected Start - Winter 2024
New Homes for South Acres/Crestmont
The City of Houston is partnering with Five Woods Realty to develop homes at 13520 Furman Road in the South Acres/Crestmont neighborhood. Five Woods Realty will build 45 three- and four-bedroom single-family townhomes, including 40 affordable and five market-rate homes. The homes will be sold to homebuyers earning up to 120% of the Area Median Income.
Flyers & Resources
| Date | Name | View |
|---|---|---|
| 11/07/23 | New Homes for Houston Virtual Homebuyer Fair | View |
| 10/19/23 | New Homes for Houston Virtual Homebuyer Fair | View |
| 09/27/23 | New Homes for Houston Virtual Homebuyer Fair | View |
| 08/16/23 | New Homes for Houston Virtual Homebuyer Fair | View |
| 08/16/23 | New Homes for Houston Virtual Homebuyer Fair | View |
| 07/12/23 | New Homes for Houston Virtual Homebuyer Fair | View |
| 06/27/23 | New Homes for Houston Virtual Homebuyer Fair | View |
| 07/12/23 | New Homes for Houston Virtual Homebuyer Fair | View |
| 06/27/23 | New Homes for Houston Virtual Homebuyer Fair | View |
| 06/07/23 | New Homes for Houston Virtual Homebuyer Fair | View |
| 06/07/23 | New Homes for Houston Virtual Homebuyer Fair | View |
| 04/8/2023 | Homebuyer Fair Flyers | View |
| 04/8/2023 | Homebuyer Fair Informational Videos | View |
| 04/13/23 | City of Houston Employee Presentation | View |
| 04/13/23 | City of Houston Employee Presentation | View |
| 02/25/23 | New Homes for Houston Virtual Homebuyer Fair | View |
| 02/25/23 | New Homes for Houston Virtual Homebuyer Fair | View |
Realtors & Lenders
Sign-up to receive program updates and training for eligibility criteria to refer your homebuyers to our programs!
Information for Developers
The Affordable Home Development Program seeks to create communities of single-family homes around the city. By providing financing to developers on their eligible projects, the City can make it possible for developers to sell homes at affordable prices to current Houstonians.
Eligibility
- Eligible organizations include:
- For-profit entities
- Non-profit entities
- Partnerships of for-profit and non-profit entities
- Developers must be in good standing with the City of Houston on all previous loans, grants, and commitments
- Developers must have experience and the capacity to complete proposed projects
- Developers must abide by fair housing law and not discriminate against members of protected classes
Proposal
- Developer must have site control at the time of application
- Site must include 40+ affordable homes
- At least 40% of the total homes must be affordably priced, with priority given to developments with greater affordability
- Affordable homes must be equivalent (in quality and planning) to market-rate homes
- Site must be located within City of Houston limits , and affordable homes must be sold to current residents of Houston
- Homes must be outside of the floodway and 100-year floodplain
- All homes must be newly constructed and meet:
- ENERGY STAR® certification standards
- City of Houston minimum construction and resilience standards
- Chapter 19 Floodplain Ordinance 2018-258 , if located within 500-year floodplain
- Preference for 50% to 60% of all homes to be affordable for contiguous sites
Steps to Apply
The Affordable Home Development Program (AHDP) is accepting applications for the construction of new single-family homes that will be attainable to low-to-moderate-income homebuyers.
To be considered for HCD funding, development proposals must align with the AHDP Guidelines and threshold criteria. HCD will review all applications submitted for project viability and initial threshold criteria when funding becomes available. The next review date is currently to be determined.
Please submit your proposal through the AHDP Application Portal .
Before submitting your proposal, you can fill out this questionnaire to see if your proposal will be competitive. You can also reach out to us at singlefamilyeligibility@houstontx.gov.
Documents & Resources
| Date | Name | View |
|---|---|---|
| 08/30/22 | Conflict of Interest Form: Completed By Business Entities | View |
| 12/06/23 | AHDP Program Guidelines | View |
| 08/26/21 | Resiliency Checklist / Matrix | View |
| 09/30/21 | AHDP Presentation | View |
| 09/21/21 | AHDP Video Presentation | View |
| 09/30/21 | AHDP Video Presentation #2 | View |
| 12/07/21 | Second Site Supplemental Form | View |
| 01/30/23 | Full Application Workbook | View |
Frequently Asked Questions
Q: Can applicants only submit sites in the City Limits? - Answer
A: We are only accepting applications within Houston City Limits.
Q: What is the minimum lot size? - Answer
A: There is no minimum lot size. The development project must include a minimum of 40 Affordable Homes
Q: Can developers submit multiple projects in the same application, or do separate applications need to be submitted per project? - Answer
A: Please submit an application for each Development Project. Each project will be evaluated on its own merit.
Q: Is there a maximum amount of funds that a project can receive? - Answer
A: No, The City has not set a maximum amount of funds awarded to each Development Project.
Q: What exactly do you mean by Single Family? - Answer
A. Single Family Homes refer to homeownership, not the style or structure of the home. We are encouraging innovative design single-family detached, townhomes, condo, etc
Q: If townhomes and condo developments are allowed, won't it be more like multi-family? - Answer
A. We will consider condominiums and townhomes as Single-Family Developments as long as the Developer transfers the deed and sells the property to low-to-moderate-income Homebuyers.
Q: If there is a $250,000 price cap for an Affordable Home, but the four (4) bedroom home is $278,000, is that still considered affordable? - Answer
A. We define Affordable Homes as a sales price in which a Homebuyer pays no more than thirty (30%) percent of gross income for monthly mortgage and utilities. The Affordable Homes in each Development should be sold to Homebuyers with an Area Median Income (Español) of 120% or below, as calculated by HUD.
This calculation changes annually; therefore, the sales price of Affordable Homes should be listed based on the affordability of the low-to-moderate income Homebuyers at the time of sale.
Q: Many home builders have financing means/lenders available for home buyers. Would this benefit potential home buyers, or should that be left up to the Buyer? - Answer
A. Yes, Builder financing is a welcomed option for Homebuyers, as long as Homebuyers are given a choice to finance on-site or bring their financing to the deal.
Q: Does the mayor want 2,000 Affordable Homes or 2,000 total homes with 40 percent being affordable? - Answer
A. Currently, the Affordable Home Development Program is financing and tracking the number of Affordable Homes built.
Full Application FAQs
Q: Will the financial records submitted as part of our application be part of the public record under the Freedom of Information Act? - Answer
A: Yes. The City of Houston is a public governmental entity. The Affordable Home Development Program is funded with public taxpayer funds. For more information about the Texas Public Information Act, refer to the City of Houston website: https://www.houstontx.gov/pia.html and the Texas Public Information Act website
Q: Is the Affordable Home Development Program funded through federal government funds? - Answer
A: No, the Affordable Home Development Program is funded by a local Tax Increment Reinvestment Zone (TIRZ) bond.
Q: Are there any accessibility requirements? - Answer
A: All developments are subject to City of Houston accessibility requirements.
Q: If an Affordable Homebuyer receives a developer subsidy, how many mortgages would there be? - Answer
A: There are two separate loan agreements in the AHDP. The first is between the City and the developer which will be in the form of a no interest forgivable loan. The loan will be forgiven as the developer constructs and sells Affordable Homes. The second loan agreement will be between the City and each individual Affordable Homebuyer in the form of a secondary lien which will be forgiven over a five-year affordability period.
Q: Would the construction loans be forgiven on a pro-rata basis? - Answer
A. Yes. Additionally, each construction loan will be negotiated in an individual legal review process.
Q: Can you elaborate on what is considered a “proportionate amount of Market Rate homes”? - Answer
A. The proportionate number of Market Rate homes is relative to the neighborhood. The City would expect a higher percentage of Market Rate homes in high opportunity areas.
Q: Is there an average subsidy per home or average home cost developers should target? - Answer
A. The City anticipates a range of $75-$100K subsidy per home in high-to-mid opportunity neighborhoods and $25-$50K subsidy in low-to-moderate income neighborhoods. The City realizes that the subsidy amount is subject to change based on current comparable sales and the income level of the Homebuyer.
Q: Is the City asking for the site plan for each home built on the properties? - Answer
A. The City only requires one site plan per model.
Q: Are there any application templates available, such as proforma, construction budget, or affirmative marketing plans? - Answer
A. Please contact your Relationship Manager for more information.
Q: Can you provide more information on the level of detail required on the construction cost estimate, construction schedule, development proforma (sources and uses of funds), and scope of work? - Answer
A. Please contact your Relationship Manager for more information.
Q: Are there any requirements for noise abatement? - Answer
A. All projects must adhere to City code and HCD minimum construction standards. The City will prioritize projects that demonstrate commitment to additional resiliency standards as detailed in the Full Application.
Q: Can the affordable buyers use the City’s down payment assistance or Houston Community Land Trust on top of the AHDP subsidy? - Answer
A. Affordable Homebuyers can not double-dip or duplicate benefits. For example, if the Market Rate sales price is $250,000 and the Developer drops the price to $200,000 to close the affordability gap. If the Homebuyer is preapproved for a $180,000 mortgage, they can use City of Houston down payment assistance for $20,000.
Q: Will Affordable Homebuyers need specific homebuyer education courses? - Answer
A. The City does not propose specific homebuyer education courses. However, the City strongly encourages proactive community engagement. If you have partnered with a local agency or offer homebuyer education courses internally, please include this information in your application narratives.
Q: We are currently shovel-ready but want to ensure any homes we build will count towards our Affordable Home deliverable in our potential contract. What is your advice on when to begin the construction phase? - Answer
A. The City and developer will agree to an Affordable Home count based on the submitted pre-application during the legal review process. The City has no intention of slowing the construction cycle. The City can work with you to amend the Affordable Homes on your pre-application form if your project will yield at least 40 Affordable Homes. Please contact your Relationship Manager for more details.
Q: We submitted the pre-application before the design plan was completed and are concerned that we may not reach the number of Affordable Homes submitted. Can we modify the count? - Answer
A. The City can work with you to amend the Affordable Homes on your pre-application form if your project will yield at least 40 Affordable Homes. Please contact your Relationship Manager for more details.
