Focus on buyers who need help but are likely to succeed
Scarce public resources for affordable homeownership should be targeted toward households that need it and would be unable to afford ownership without support but are in a strong position to succeed in ownership over time.
- Affordable Pricing: Each program should provide enough public investment to target assistance to buyers who would otherwise not be able to afford homeownership and should ensure that the buyers’ resulting costs of ownership are comfortably manageable for households at the target income level.
- Marketing Window: Rather than pricing homes to make them affordable to buyers earning the maximum allowable income, prices should be affordable to a slightly wider range of eligible buyers in order to facilitate marketing and selection. (i.e. a home restricted to buyers earning less than 80% of AMI should be priced to 70% of AMI)
- Proactive Marketing: Every program should engage in an ongoing, open and transparent marketing effort that targets the specific local populations likely to benefit and is consistent with fair housing goals. Where possible, programs should maintain a list of interested buyers that is independent of specific properties or projects.
- Targeted Selection Process: Every program should have a fair and transparent selection process including publicly available written selection criteria and procedures. Selection criteria should ensure that selected buyers are consistent with the program’s strategic goals and should ensure that these are the buyers most likely to succeed.