Mayor Lee Announces Doubling of City’s First Time Home Buyer Down Payment Home Loan Assistance Program
City’s Housing Trust Fund Grows Homeownership Opportunities for San Francisco Residents
Mayor Edwin M. Lee today announced the doubling of loan amounts for San Francisco’s Down Payment Assistance Loan Program (DALP), a homeownership program that provides financial assistance to low- to moderate-income first time home buyers, by offering a deferred-payment loan that requires no repayment for 40 years or at the re-sale of the unit. Starting this week, individual loans of up to $200,000 will be available to qualified buyers.
“The expansion of the DALP program proves the immediate and tangible impact of the Housing Trust Fund to assist the City’s first time home buyers and provide homeownership opportunities for San Francisco residents,” said Mayor Lee. “This down payment assistance program has assisted many working families in our City and will continue to support our diverse workforce that is so critical to our economy.”
Originally created through the passage of Proposition A in 1996, the program has traditionally provided loans of up to $100,000 for down payment assistance. However, given the high cost of homes in today’s market, a higher loan amount is need to enable low to moderate income borrowers to keep up with market conditions, especially families. Increased DALP amounts will enable San Francisco low to moderate income, first time homebuyers to better compete in today’s housing market, where the current median sales price is in excess of $800,000.
Through the passage of the Housing Trust Fund, the DALP will have available funds of $2 million this year, which will enable the larger downpayment amount to be available for individual down payment loans. The Housing Trust Fund will also provide an additional $1 million for the First Responders Program this year. Altogether, during the first five years following the passage of the Housing Trust Fund, through loans provided through the DALP and the First Responders Program, San Francisco will be able to help at least 100 households buy their first home.
The Mayor’s Office of Housing and Community Development (MOHCD) offers qualified buyers a number of programs that can assist first time homebuyers. In addition to the DALP, the BMR – DALP Downpayment Assistance Program (CalHome) aids first time home buyers purchasing a Below Market Rate unit. To date, MOHCD’s homeownership assistance programs have helped almost 3,000 families to buy a home. More than 600 DALP loans have been made, and since this program’s launch in 2013, MOHCD has funded four First Responder loans totaling nearly $500,000, with six other loans in process to close in 2014.