Presentation of Application Process (Power Point)
This program is designed to help low- to moderate-income families purchase and occupy a home in the CDBG Eligibility Area of Columbia. (Map)
Applicants must be “first time home buyers” who meet the Department of Housing and Urban Development (HUD) income limits (see below). Exceptions to the first-time-homebuyer rule are “displaced home-makers” and “single parents.”
Definitions: A First Time Home Buyer is an individual and his/her spouse who have not owned a home for three years. A Displaced Homemaker is an adult who has not worked full time, full year in the labor force for a number of years, but during such years worked primarily to care for his/her home and family, and who is unemployed and experiencing difficulty in obtaining or upgrading employment. A Single Parent is an individual who is unmarried or legally separated from a spouse and who has one or more minor children in their care and custody, or who is pregnant.
Current income limits are as follows:
Family Size Income Limit
1 person $34,700
2 persons $39,700
3 persons $44,650
4 persons $49.600
5 persons $53,550
6 persons $57,550
7 persons $61,500
8 persons $65,450
One-person, non-elderly, non-disabled households whose income is above 60% ($26,025.00) of the median family income will be eligible only if they are buying a home within a central City area bounded by Stadium, Old 63, Business Loop 70, and Broadway.
How does the program work?
When buying a home, many low- to moderate-income families may not have adequate funds for the down payment and other up-front loan closing costs. Assistance up to $4,000 is available in the form of a 5-year forgivable loan to assist homebuyers in purchasing an existing home in the CDBG eligibility area (see map). These funds are only to be used for down payment and closing costs (prepaid costs such as taxes and insurance are not eligible) or to reduce the principle amount of a loan, and buyers must provide a minimum of $500 in cash toward the purchase.
Application for assistance is made through your lender in cooperation with the City of Columbia Planning and Development Department. Once you have met your lender’s requirements for loan approval, have your loan officer contact Planning and Development at (573) 874-7239.
Buyers are required to attend an approved homebuyer education program, such as “Home Buying 101” or “MoneySmart”, designed to help them understand their credit history and the process of buying and paying for a home.
Local lenders are partners in this program. Some lenders offer home loans at terms that make home ownership attractive and affordable. They may also refer buyers to the appropriate credit and homebuyer education programs offered throughout Columbia.
What types of property are eligible?
Only existing single-family homes in the CDBG eligibility area are eligible. City staff will inspect the property to determine that it meets the City’s property maintenance code, and any deficiencies found by staff must be corrected prior to homeownership assistance funds being provided.
Houses built prior to January 1, 1978, must have an inspection to determine if deteriorated paint exists, and samples of deteriorated paint and bare soil may be taken and sent to a lab for analysis. If any deteriorated paint contains lead above HUD’s level of concern, paint stabilization of deteriorated surfaces by trained personnel is required. The buyer is restricted from moving into the home until stabilization is complete and a clearance of the unit confirms that no lead hazard exists. A $500 grant is available to the buyer to help offset costs associated with lead hazard reduction. Any costs over this amount will be paid by the buyer and/or seller.
Are there any other requirements?
Prior to receiving city funds, the buyer is required to sign an Affidavit and Promissory Note that prevent the leasing, subleasing or selling of their home for a minimum of five years. This Affidavit will be recorded at the Boone County Recorder’s Office. Homeownership assistance funds are required to be repaid on a prorated basis if the property is sold, leased or subleased before the end of this five-year affordability period.
The value of the property to be purchased cannot exceed $190,152.00.
What other programs are available?
Local lenders offer a number of loan packages -- take the time to find the loan package that works best for you. HUD publishes an informative brochure, Don’t Be a Victim of Loan Fraud – Protect Yourself from Predatory Lenders. Please read this brochure carefully.
Where can I get more information?
If you have questions or need additional information, contact the Department of Planning & Development on the 2nd floor of City Hall at 701 E. Broadway.
Telephone: (573)874-7239 (TTY: 1-800-MOR-ELAY)
Fax: (573)874-7546
Website: www.gocolumbiamo.com/dept/plan
E-mail: planning@gocolumbiamo.com.
FAIR HOUSING IN COLUMBIA
The Fair Housing Act prohibits discrimination in housing because of race or color, national origin or ancestry, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women and people securing custody of children under 18), handicap (disability), marital status or sexual orientation.
Contact the Human Rights Commission at (573) 874-7488 (V/TTY) if you feel you have been a victim of discrimination.
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