TO: Mayor and Members of City Council
THRU: Kelly Strickland, Assistant City Manager
FROM: Christopher Cauley, Director of Economic and Community Development
Jeffrey Morin, Housing Program Manager
DATE: September 2, 2025
RE:Title
Update on Affordability Period Requirements for the Homebuying HERO ProgramTitle
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COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
GOAL IV: The City of Fayetteville will be a highly desirable place to live, work and recreate.
? 4.5: To ensure a place for people to live in great neighborhoods
? 4.6: To reduce poverty and homelessness
Executive Summary:
Council is asked to receive updated information on the changes to affordability period requirements under the Home Investment Partnerships Program. The revised federal thresholds mean some homebuyers will now face shorter required affordability periods than before, depending on the assistance they receive. This change gives the City greater flexibility to support homebuyers in today's higher-cost market without extending the required affordability period.
Background:
The federal government recently updated regulations under 24 CFR Part 92.254, which governs affordability requirements for HOME-assisted homeownership. While the required affordability periods of 5, 10, and 15 years remain unchanged, the dollar thresholds that determine when those periods apply have been increased. Under the previous rule, assistance levels above $15,000 triggered a 10-year affordability period and assistance above $40,000 triggered a 15-year period. The new rule raises those thresholds so that assistance up to $25,000 now requires only a 5-year period, assistance between $25,000 and $50,000 requires 10 years, and only assistance above $50,000 continues to require the full 15 years.
Although the City does not rely exclusively on HOME funds, the Homebuying HERO Program is modeled on HOME regulations regardless of funding source. As ...
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