Homeownership: DHCR Paves the Way
Assets For Independence program for first-time homebuyers expands to include all income-eligible New Yorkers
Since 2000, the Division of Housing and Community Renewal (DHCR) has helped 244 Section 8 individuals and families achieve the dream of homeownership, becoming a national leader. This March, DHCR's downpayment assistance program -- Assets for Independence (AFI) -- is expanding eligibility to include not only Section 8 Housing Choice Voucher clients but all income-eligible New Yorkers. This increased accessibility will provide up to 400 low-income families with closing cost assistance and create regular savings habits with AFI consumers.
DHCR Commissioner Deborah VanAmerongen said, "Despite the recent economic downturn, New York State has literally hundreds of low-to-moderate income households with stable jobs and good credit scores who wish to purchase their first home. The AFI program provides homeowner education and financial training as well as a matched-savings plan that helps these families buy and keep their own home. We are proud to be a part of making these families' American Dream come true."
AFI motivates clients to commit to a monthly savings plan with a one-to-four matching grant, up to $7,500, toward real estate closing costs. Savings plans are offered for any duration between 12 and 24 months and deposits are adjusted accordingly. For the maximum match in a savings plan of 24 months, participants would need to deposit $78.13 each month in their AFI account.
Potential first-time homebuyers will learn how to achieve economic independence in the required financial counseling, which focuses on the important transition from debt reliance to savings and the wise use of credit. Homebuyer education classes will inform clients on how to shop for affordable mortgages, and how to work with a realtor or professional home inspector.
The program has two extensions; for Section 8 clients, the AFI matching grant may be applied toward the purchase of a single-family home, condominium or cooperative apartment. All other income-eligible New Yorkers can use AFI moneys for downpayments on one-to-four family homes which must be owner-occupied.
The U.S. Department of Health and Human Services granted DHCR a match of one million dollars to start the State's AFI program. At no cost to clients, AFI accounts are opened with Chase Bank, however clients are not obligated to secure mortgages with Chase Bank and may shop for other affordable mortgage products in their area. DHCR will monitor monthly deposits to ensure program compliance. Interested New Yorkers are encouraged to contact one of our AFI partner agencies for eligibility requirements and to request an AFI application. A list of these partner agencies follows:
Last Updated: 03/18/09