Affordable Home Development Program
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.
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- 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
- 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
- Home sales and marketing must abide by fair housing law and not discriminate against members of protected classes
- Preference for 50% to 60% of all homes to be affordable for contiguous sites
Steps to Apply
Step 1 - Pre-Application Form
Step 2: Full Application
Once the pre-application form has been deemed eligible, developers will receive an "Invitation to Apply" email and be able to submit further details.
Expectations at the application stage:
- Project must be determined to be feasible and viable by HCDD based on underwriting review.
- An Affirmative Fair Housing Marketing Plan that meets HCDD requirements.
- Completed Phase 1 Environmental Site Assessment (ESA).
- Stipulate additional project requirements such as land tract size, project readiness and other factors.
Documents & Resources
|AHDP Video Presentation||9/21/21|
|AHDP Video Presentation #2||9/30/21|
|Second Site Supplemental Form||12/07/21|
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: Is there a $250K price cap for an Affordable Home, but the four (4) bedroom home was 278K that is 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 Area Median Income of 120% or below as calculated by HUD
This calculation changes annually; therefore, the sales price of the 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, Affordable Home Development Program is financing and tracking the number of Affordable Homes built.