The Department of Housing and Urban Development (HUD) authorized the Danville Redevelopment and Housing Authority to use a portion of it’s Housing Choice Vouchers to assist first time home buyers in meeting the monthly mortgage and other homeownership expenses. To participate you must have a voucher.
Eligibility requirements are as follows:
- Must be a first-time homeowner or cooperative member;
- No family member has owned/had ownership interest in their residence for at least 3 years;
- The qualified annual income of adult family members who will own the home must be at least $10,300 ($6768 for disabled families) – welfare assistance included only for elderly/disabled families in determining eligibility;
- At least one family member who will own the home must have been working full-time continuously for at least one year (except elderly/disabled families);
- Family must meet any addition requirements as set by the Housing Authority;
- Family must attend and satisfactorily complete the Housing Authority’s pre-assistance homeownership counseling requirements.
The Danville Redevelopment & Housing Authority uses its normal voucher program payment standard schedule to determine subsidy amount. The housing assistance payment (HAP) is the lesser of either the payment standard minus the total tenant payment or family’s monthly homeownership expenses minus the total tenant payment. Payment may be made directly to the family or to the lender.
The DRHA Housing Choice Voucher Homeownership Program permits eligible participants in the HCVP the option of purchasing a home with their HCVP assistance rather than renting. Through a partnership with the City of Danville, DRHA is making homeownership a reality to low and moderate income families in Danville.
Once a family has been qualified and a home identified, the property must pass an initial Housing Quality Standards (HSQ) inspection conducted by DRHA and an independent home inspection before DRHA may approve the purchase by the family.
- First-time homeowner or has not owned or has not had ownership interest in the past three years.
- Minimum income requirement. The qualified monthly income of the family who will own the home must not be less than the Federal minimum hourly wage multiplied by 2,000 hours. Except in the case of an elderly household or a family with a disabled person, welfare assistance is not counted in determining whether the family meets DRHA established minimum income requirement of $17,500 annually.
- Employment requirement. Except in the case of elderly and families with a disabled person, one or more adults in the family who will own the home is currently employed on a full-time basis and has been continuously employed on a full-time basis for at least one year before commencement of homeownership assistance.
- Additional DRHA eligibility requirements. The family meets any other initial eligibility requirements set by DRHA, such as participation in the Family Self-Sufficiency Program.
- Homeownership counseling. The family must attend and satisfactorily complete DRHA’s pre- and post-assistance homeownership counseling.
- Mortgage insurance premium
- Real estate taxes and homeownership insurance
- DRHA allowance for utilities
- DRHA allowance for routine maintenance costs
- DRHA allowance for major repairs or replacements
- Principal and interest on debt to finance major repairs and replacements for the homes, and
- Principal and interest on debt to finance costs to make the home accessible for a family member with disabilities if DRHA determines it is needed as a reasonable accommodation.