New Homes For the Greater Third Ward
New homes are coming to Greater Third Ward!
The City of Houston is partnering with Midtown Redevelopment Authority and five developers to build homes in multiple locations in the Greater Third Ward neighborhood. The partnership will lead to 47 affordable homes sold to homebuyers earning up to 120% of the Area Median Income.
Through the Affordable Home Development Program (AHDP), the City of Houston will contribute a forgivable loan of $705,000.00 from the Uptown TIRZ Series 2021 Affordable Homes Funds to make the homes more affordable.
Interested in buying an attainable home financed by the City of Houston? Complete your application today!
About Greater Third Ward
The Greater Third Ward is the home of important institutions in Houston's African American community, including Texas Southern University, Riverside Hospital, and dozens of prominent churches. Emancipation Park, located at 3018 Dowling, was purchased in 1872 by freed slaves in an effort led by Rev. Jack Yates, for the celebration of Juneteenth. The park was donated to the City of Houston in 1916 and, for more than 20 years was the only public park in Houston open to African-Americans. As the site of one of the original Juneteenth celebrations, Emancipation Park remains an important symbol of a turning point in state and national history. Please visit the Super Neighborhood 67 – Greater Third Ward page to learn more.
About The Developers
The Herbert Stroman Foundation (HSF) was established in 2018 by Pastor Kenneth Stroman of the Christian Hope Baptist Church. The Church has been a part of the Third Ward community for 85 years. SBB proudly maintains a strict standard of excellence at every step of the home construction process. HSF is partnering with Mayberry Homes Inc to build eight affordable homes in the Greater Third Ward community.
CR Design Build LLC was established in 2005 as a design-builder based in Houston. It brings together a talented pool of individuals who are self-motivated and driven by the opportunities of providing construction and engineering services at the highest quality possible. CR Design Build prides itself on integrity, quality, timeliness, and competitive pricing. CR Design Build will build five affordable homes in the Greater Third Ward community.
MORS Development Partners was formed for the sole purpose of developing affordable homes in Houston. The development team has decades of experience in affordable home construction and sales throughout Houston. MORS Development partners will build nine affordable homes in the Greater Third Ward community.
Change Happens CDC stemmed from a dream by Rev. Leslie Smith II in 1983 to renovate dilapidated homes in the Third Ward. The organization formally began operations in its headquarters in 2003 and has since gathered wide-ranging experience in construction projects. Change Happens CDC will build 10 affordable homes in the Greater Third Ward community.
Boynton Houston Community Development Corporation was formed in 2022 by Boynton Chapel Methodist Church in the Greater Third Ward. The Church is deeply invested in the community and operates a food pantry, administers covid testing, and founded and operates a music academy at Blackshear Elementary School. Boynton Houston CDC is partnering with Houston Business Development Inc. as a co-developer to build 15 affordable homes in the Greater Third Ward community.
About the Affordable Home Development Program
Key Facts
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The program aims to create new homeownership opportunities for residents.
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Developments located across Houston.
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Developments are mixed-income. At least 40 homes in each AHDP development will be attainable to households earning up to 120% of the Area Median Income or less. For a family of four, for example, this would mean earning $106,300 or less as of 2022.
FAQs - Frequently Asked Questions
Note: The following FAQ pertains to the City’s administration of the Affordable Home Development Program. The City’s developer partners may have additional program guidelines.
Q: How do I buy a home? - Answer
A: Homebuyers will purchase market and attainable rate homes directly through the developers. The City will partner with the developer to co-market and perform income eligibility reviews for the attainable rate homes.
Q: What role does the City have in the homebuyer process? - Answer
The City will partner with the developer to comarket the community. This includes cohosting community meetings, and webinars.
Additionally, the City will perform income eligibility reviews for homebuyers purchasing an attainable rate home.
Q: Can I use down payment assistance programs to help buy a home? - Answer
A: Homebuyers purchasing affordable or market rate homes may use down payment assistance programs available to them through their private mortgage lender or other entities.
Q: What do you mean by “attainable rate” homes? - Answer
A: Generally, rent or mortgage payments should not exceed 30% of household gross income. The City’s financial investment through the Affordable Home Development Program will decrease the purchase price from the current market rate to the homebuyer’s secured fixed rate mortgage to make homes more attainable.
Q: How will I know when homes are available to purchase? - Answer
A: The developer will market when the homes are available to purchase. HCD will also inform the community through the HCD Homebuyers Hub page, and HCD social media.
Q: How will the homebuyer process work? - Answer
A: The first step for every homebuyer will be to secure a 30-year fixed rate mortgage from a lender. For homebuyers purchasing a market-rate home, they will then continue the traditional homebuyer process.
Homebuyers purchasing an attainable-rate home will also need to attend a HUD-certified eight (8) hour homebuyer education course and earn up to 120% of the Area Median Income as determined by HUD when purchasing the home. The City’s financial investment through the Affordable Home Development Program will decrease the purchase price from the current market rate to the homebuyer’s secured fixed rate mortgage to meet the attainable home price.
Q: Is there an affordability period or secondary lien on the homes?- Answer
A: The City will not impose a secondary lien on market-rate homes.
The City will impose a five-year secondary lien on attainable rate homes. The secondary lien will be forgiven at the end of the five-year period. Please note that individual developers may impose a longer secondary lien on attainable rate homes.
Q: Will there be any difference between market-rate homes and attainable homes? - Answer
A: No, all homes will have the same construction quality, finishes, and appliances.
