Mayor Eric Adams and the Department of Housing Preservation and Development (HPD) Commissioner Adolfo Carrion Jr. on Thursday announced the expansion of the HomeFirst Down Payment Assistance Program, which gives first-time homebuyers up to $100,000 to put towards the down payment or closing costs on homes within the five boroughs. The additional $82 million will fund the program for the next five years, expand income eligibility, and introduce a new nonprofit partnership to streamline the process.
Established in 2004, the HomeFirst program has made homeownership a reality for lower-income New Yorkers. Over the past decade, it has helped 1,100 individuals achieve their goal of owning a home.
As 6sqft previously reported, racial disparities in homeownership rates are severe and residents of color face more obstacles when buying a home than white residents.
Just 28 percent of Black families and 17 percent of Hispanic families owned their homes, compared to 41 percent of white families, as the city’s Where We Live NYC report detailed in 2021.
With the additional funding, the program’s reach will nearly double, expanding eligibility to individuals and families earning 120 percent of the area median income up from the prior 80 percent of the AMI limit. This means New Yorkers earning $130,440 annually as single households and $167,760 annually for a family of three now qualify.
HPD will continue its partnership with Neighborhood Housing Services of New York City (NHS) and launch a new collaboration with the Center for NYC Neighborhoods to expand capacity and assist more first-time homebuyers.
Christie Peal, executive director and CEO of the Center for NYC Neighborhoods, emphasized the significance of the program, especially as the city grapples with an affordability crisis.
“At a moment when New Yorkers are struggling with the cost of living, HomeFirst puts the dream of affordable homeownership within reach for more New Yorkers,” Peal said. “Access to down payment funds has been one of the biggest barriers New Yorkers face when trying to purchase a home in our high-cost market, especially for lower-income families and communities of color.”
She continued: “Doubling the number of households that HomeFirst will serve is an important step towards a more affordable New York City. We’re honored to partner with HPD in their expansion of the program and in turn help build more equity and stability for New Yorkers.”
In October 2021, the HPD announced it would offer up to $100,000 towards down payments or closing costs to first-time homebuyers earning up to 80 percent of the AMI, a considerable increase from the $40,000 in forgivable loans previously offered by the city.
To qualify, prospective homebuyers must be first-time buyers, make a minimum down payment of 3 percent of the purchase price, and purchase a one- to four-unit family home, a condo, or a co-op in one of the five boroughs.
Get all of the details about the HomeFirst down payment program here.
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