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HomeMy WebLinkAbout26-1181City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Community Services CM/ DCM/ ACM: Christine Taylor DATE: August 18, 2026 SUBJECT &RQVLGHUDGRSWLRQRIDQRUGLQDQFHRIWKH&LW\RI'HQWRQ7H[DVDSSURYLQJJXLGHOLQHVIRUWKH&LW\RI 'HQWRQ +RPHEX\HU $VVLVWDQFH 3URJUDP DXWKRUL]LQJ WKH H[SHQGLWXUH RI )HGHUDO &RPPXQLW\ 'HYHORSPHQW%ORFN*UDQWDQG+20(,QYHVWPHQW3DUWQHUVKLS3URJUDPIXQGVLQDQDPRXQWQRWWRH[FHHG IRUSURMHFWVPHHWLQJWKHSURJUDPJXLGHOLQHVDQGHOLJLELOLW\FULWHULDDQGSURYLGLQJDQHIIHFWLYH GDWH7KH&RPPXQLW\6HUYLFHV$GYLVRU\&RPPLWWHHUHFRPPHQGHGDSSURYDO   STRATEGIC ALIGNMENT This action supports Key Focus Area: Foster Economic Opportunity and Affordability. BACKGROUND On May 8, 2026, the Community Services Advisory Committee (CSAC) finalized their recommendations to City Council for the 2026 Action Plan. All projects and programs to be approved by the Department of Housing and Urban Development (HUD) under the 2026 Action Plan are funded through Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and program income from the use of these funds. In addition to federal funds, the City Council allocates General Fund dollars to provide grants for social service agencies. The following narrative describes the recommendations from the CSAC for estimated federal and general fund dollars available for the 2026-27 program year. (Exhibit 2) The City of Denton has managed the Homebuyer Assistance Program since 1992, leveraging federal HOME and CDBG funds to provide down payment assistance to low-income residents. The program offers up to $50,000 in down payment assistance to low-income first-time homebuyers in Denton, along with closing and repair cost assistance as needed. The City of Denton most recently approved a policy for the management of this program October 6, 2020 (ID 20-1566). DISCUSSION General Program Overview To qualify for the program, households must: 1. Be first-time homebuyer, meaning: a. Have not owned a home in the past three years; b. Displaced single parents; and/or c. Own a substandard mobile home. 2. Be a U.S. citizen or legal resident. 3. Qualify for a mortgage loan from a Participating Lender. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com 4. Agree to live in the home as their primary residents for the term of the forgivable loan (five or ten years). 5. Have a household income below 80% of the Area Median Income Limits, adjusted for family size, and have liquid assets less than $20,000 (not including retirement accounts). Figure 1- 2026 Income Limits Eligible homebuyers may select one of the two down payment options below: x Option 1. Funding up to the amount of $25,000, 0% interest (0% APR), forgivable loan, second lien position with a 5-year affordability period. x Option 2.Funding up to the amount of $50,000, 0% interest (0% APR), forgivable loan, with a 10- year affordability period. Updates to program guidelines The following changes are being made to the program: x Clarification that Freddie Mac and Fannie Mae’s homebuyer education courses fulfill program requirements. o A homebuyer education course from a HUD Certified Housing Counseling agency is required for all program participants according to federal HOME regulations. Currently, there are no HUD Certified Housing counseling agencies offering services in Denton County. Freddie Mac and Fannie Mae offer the only known online, self-paced courses with no fees associated. Their homebuyer education courses are aligned with the National Industry Standards for Homeownership Education and Counseling and are considered satisfactory for similar homebuyer assistance programs managed by the Texas Department of Housing and Community Affairs, and Texas State Affordable Housing Corporation. x Adjustments to maximum award amounts and loan terms to align with updates to the federal HOME program. o The federal HOME program has been updated to adjust its minimum periods of affordability thresholds. This allows the City of Denton to adjust its thresholds for maximum award amounts and associated loan terms. o Previous requirements: Maximum Award Minimum Affordability Period (Loan Term) $14,999 Five years $50,000 Fifteen years o Current/Proposed requirements: Maximum Award Minimum Affordability Period (Loan Term) $25,000 Five years $50,000 Ten years Figure 2 - Regulatory Changes from 2025 HOME Final Rule Program Funding Funding for CDBG projects is included in the 2026 Action Plan for Housing and Community Development for program year October 1, 2026, through September 30, 2027. City Council approved the 2026 Action Plan for Housing and Community Development with Ordinance No. 26-0944, on July 21, 2026. The U.S. Department of Housing and Urban Development (HUD) will consider approval of the City’s 2026 Action Plan in September 2026, and funds will become available in October 2026. This program has been out of funding since early 2025 but was approved for $300,000 in federal funding on July 21 as part of the 2026 Action Plan (ID 26-0944). This funding will assist an estimated five households. The Homebuyer Assistance Program can be funded annually in an amount approved by the City Council in the future Action Plan for Housing and Community Development. The Director is authorized to update or amend the Program Guidelines from time to time as necessary to accomplish the objectives of the Program and this Ordinance or as required by the U.S. Department of Housing and Urban Development. Ordinance This Ordinance approves the Homebuyer Assistance Program and authorizes the expenditures of federal Community Development Block Grant and HOME Investment Partnership Program funds for projects meeting the program guidelines and eligibility criteria, OPTIONS 1. Approve the program guidelines as presented 2. Do Not Approve the program guidelines 3. Postpone to a date certain to allow for further deliberation EXHIBITS Agenda Information Sheet 2026-27 CSAC Funding Recommendations and Descriptions OrdinanceDQG+RPHEX\HU$VVLVWDQFH3URJUDP*XLGHOLQHV Respectfully submitted: Jesse Kent Director of Community Services Prepared By: Leia Atkinson Housing Programs Manager Exhibit 2 2026-27 CSAC Funding Recommendations and Descriptions Request Final CSAC Funding Recommendation CDBG FUNDS GENERAL FUNDS HOME FUNDS Denton County Friends of the Family Homeless/Housing $45,437.00 $75,000.00 $50,000.00 $50,000.00 Children's Advocacy Center Victim Services $40,388.00 $100,000.00 $50,000.00 $50,000.00 City of Denton Parks Department Child Care $43,922.00 $90,000.00 $50,000.00 $50,000.00 Court Appointed Special Advocates of Denton County, Inc.Family Resources $35,340.00 $45,000.00 $40,000.00 $40,000.00 The Salvation Army Homeless/Food Security $25,242.00 $59,136.25 $26,000.00 $11,144.00 $14,856.00 Communities in Schools Child Care/Education $35,340.00 $35,340.00 $36,000.00 $36,000.00 PediPlace Healthcare $35,339.00 $50,000.00 $36,000.00 $36,000.00 Cumberland Youth and Family Services Family Resources $16,155.00 $50,000.00 $25,000.00 $25,000.00 Giving Grace Homeless Services $36,854.00 $100,000.00 $36,000.00 $36,000.00 Refuge for Women Victim Services $15,360.00 $41,080.00 $30,644.00 $30,644.00 Our Daily Bread Homelessness $39,378.00 $100,000.00 $40,000.00 $40,000.00 Paisley Street Preschool Childcare Services $15,145.00 $20,000.00 $15,500.00 $15,500.00 Denton County MHMR Behavioral Health $30,291.00 $55,000.00 $35,000.00 $35,000.00 Christian Community Action Housing/Food $0.00 $100,000.00 $0.00 Health Services of North Texas Healthcare $50,485.00 $75,000.00 $60,000.00 $60,000.00 Boys & Girls Clubs of Greater Tarrant County Youth Development $0.00 $22,000.00 $0.00 Heart of the City Food Security $0.00 $42,380.00 $15,000.00 $15,000.00 Opening Doors International Services, Inc. Immigration Services $15,145.00 $30,000.00 $16,000.00 $16,000.00 Denton Christian Preschool Daycare Services $30,291.00 $35,000.00 $25,000.00 $25,000.00 The ArtFullness Project Behavioral Health $0.00 $21,000.00 $0.00 $510,112.00 $1,145,936.25 $586,144.00 $171,144.00 $415,000.00 $0.00 $586,144.00 $586,144.00 $171,144.00 $415,000.00 $0.00 -$559,792.25 $0.00 $0.00 $0.00 $0.00 Denton Affordable Housing Corporation Housing Construction $424,878.41 $400,000.00 $0.00 $0.00 Habitat for Humanity of Denton New Construction $0.00 $65,000.00 $0.00 Denton Affordable Housing Corporation Operating Cost Operating Expenses $23,111.97 $40,000.00 $0.00 $0.00 City of Denton Minor Repair Program Minor Repairs $446,359.00 $400,000.00 $403,822.28 $403,822.28 City of Denton - Homebuyer Assistance Program Homebuyer Assistance $0.00 $300,000.00 $300,000.00 $50,000.00 $250,000.00 $894,349.38 $1,205,000.00 $703,822.28 $453,822.28 $0.00 $250,000.00 Paisley Street Preschool Window Repair $0.00 $30,000.00 $30,000.00 $30,000.00 Interfaith Ministries of Denton New Construction Community Space $0.00 $225,000.00 $0.00 $0.00 Giving Grace, Inc. Shelter Outdoor Construction $0.00 $395,230.00 $0.00 Denton Community Shelter Shelter Bathroom/ HVAC Repairs $0.00 $365,046.00 $365,046.00 $365,046.00 $0.00 $1,015,276.00 $395,046.00 $395,046.00 $0.00 $0.00 $894,349.38 $2,220,276.00 $1,098,868.28 $848,868.28 $0.00 $250,000.00 $1,286,814.33 $1,286,814.33 $848,868.28 $0.00 $437,946.05 -$933,461.67 $187,946.05 $0.00 $0.00 $187,946.05 NOTES: CHDO Funding Minimum = $72,990.91. Two years to commitment funding to a project CHDO Operating Maximum = $24,330.30. Funding is tied to project funding. Funding not required BALANCE FOR HOUSING AND PUBLIC PROJECTS Organization Service Type 2025-26 Award SUBTOTAL HUMAN SERVICES SUBTOTAL HOUSING PROGRAMS SUBTOTAL PUBLIC FACILITY/IMPROVEMENTS TOTALS FOR HOUSING AND PUBLIC FACILITY/IMPROVEMENTS FUNDING AVAILABLE FOR HOUSING AND PUBLIC PROJECTS BALANCE AVAILABLE FOR HUMAN SERVICES FUNDING AVAILABLE FOR HUMAN SERVICES 2026-27 Funding Recommendation by Source Page 1 of 2 Exhibit 2 2026-27 CSAC Funding Recommendations and Descriptions Children's Advocacy Center for North Texas, Inc.Direct client services to help child abuse victims and families needing services.General Funds $50,000 84 COD PARD Summer Kids Camp Full and partial scholarships for a summer day camp program to income -eligible kids in need of quality care, mentoring, development of life skills, leadership, respect for others and respect for self. CDBG $50,000 34 Communities in Schools Dropout prevention programs in Denton ISD campuses located within city limits of Denton serving grades K-12 students who struggle with academic, social, emotional, and/or physical barriers to success and are at-risk of dropping out of school based on Texas Education Agency's 14 at-risk criteria. General Funds $36,000 840 Community Services, Inc. Rent relief to assist low-income households who are at risk of eviction. General Funds Court Appointed Special Advocates of Denton County Recruit, train and support community volunteers to advocate for the best interest of abused a nd neglected children, and to promote community awareness of child abuse issues.General Funds $40,000 200 Cumberland Youth and Family Services Trauma-informed mental healthcare to children, individuals, families, and couples who qualify for services based on income, location, and lack of insurance.General Funds $25,000 44 Denton Christian Preschool Quality education for preschool age children in the Denton community to ensure children are at or above grade level when entering kindergarten and help end generational poverty. Funds will cover a portion of salaries for two (2) employees – Bilingual Teacher and Bus Driver. General Funds $25,000 46 Denton County Friends of Family Shelter night consisting of one night of stay and includes supportive services; advocacy, counseling, case management, legal and protective order assistance, assistance with Crime Victim's Compensation, and housing location and assistance. CDBG $50,000 270 Denton County MHMR Outreach to Suicide Survivors by LOSS Team who are on-site at the scene of a suicide to provide resources and hope to newly bereaved. Funds will cover the cost of the LOSS Team Coordinator salary. General Funds $35,000 18 Giving Grace Supportive services including case management to individuals transitioning from homelessness and into housing. General Funds $36,000 12 Health Services of North Texas Provides quality primary medical care for impoverished and uninsured/underinsured patients of all ages (including women's health & prenatal care).CDBG $60,000 240 North Texas Solutions for Recovery Scholarships funds to those who need services but cannot pay (bed stays) over three programs; Transitional living, outpatient clinical services, and community detox Heart of the City Expansion of food pantry services to meet hunger crisis in North Texas. General Funds $15,000 1,154 Opening Doors International Services Outreach, consultation on immigration benefits and openings for immigration cases at low- or no-cost.General Funds $16,000 100 Our Daily Bread Funds will support one case manager partial salary providing intensive, housing-focused case management services.General Funds $40,000 300 Paisley Street Preschool Salary will support early learning experiences for children ages 18 months to 5 years old on a sliding scale tuition.General Funds $15,500 55 Pedi Place Primary healthcare and mental health services for children residing in Denton ages birth to 18 who are uninsured or qualify for Medicaid or CHIP benefits.General Funds $36,000 617 Project Hope Family Enrichment Center Utility assistance to low-moderate income households General Funds Recovery Resource Council Peer-led recovery support to individuals who have experienced or at risk of overdose, with a focus on serving the homeless population. General Funds Refuge for Women Salary will support Resident Navigation Services for survivors of sex trafficking with individualized support plans to achieve mental and housing stability.General Funds $30,644 12 Silent Voyces Group sessions and presentations to support families with special needs The Salvation Army, A Georgia Corp - Denton Assistance with food provided during the K.A.R.E. Kitchen daily meals and Food Pantry for clie nts experiencing homelessness and low-income households. Partial salary to support the KARE Kitchen Cook and Pantry Coordinator positions. CDBG/ General Funds $26,000 1,800 $586,144 5826 PEOPLE City of Denton - Homebuyer Assistance Program The program assists first time homebuyers with closing costs and down payment assistance to low and moderate households CDBG/HOME $300,000 5 City of Denton - Minor Repair Program The program addresses urgently needed repairs of homes in the city limits of Denton up to $24,500 for low and moderate income households. CDBG $403,822 38 TOTAL $703,822 43 UNITS Denton Community Shelter Repairs in bathrooms to enhance facilities using materials appropriate for usage. Repairs include demolition, reconstruction of wall system, installation of moisture-resistant finishes, upgrades to plumbing, improvements to mechanical ventilation, flooring replacement, and comprehensive ADA compliance verification. CDBG $365,046 1,878 Paisley Street Preschool Window replacement to provide better energy and temperature control in the facility. CDBG $30,000 55 $395,046 1,933 PEOPLE TOTAL PUBLIC FACILITY PROJECTS TOTAL HOUSING PROJECTS Funding AmountOrganization Project Description Projected Outputs HUMAN SERVICES PROJECTS Funding Source Page 2 of 2 Community Services Homebuyer Assistance Program Guidelines 2026-30 Program Years INTRODUCTION The Community Services department has administered the Homebuyer Assistance Program (HAP) since 1992 to help low and moderate-income families purchase their first home. Funds are provided as a secured forgivable loan at 0% interest for five (5) to ten (10) years, and the note is forgiven monthly. The loan balance is payable upon the sale, home equity loan, lease, some refinance loans or transfer of title. The program is funded through federal grants from the U.S. Department of Housing and Urban Development and is available on a first-come-first-serve basis if funding is available. Guidelines are subject to change based on changes to the federal regulations. Any questions should be addressed to Community Services. Community Services 601 E. Hickory Street, Denton, Texas 76205 Phone Number: (940) 349-7726 ADA/EOE/ADEA ~ TDD (800) 735-2989 WHO IS ELIGIBLE? Participants must meet the requirements listed below to qualify for the program. PROGRAM ELIGIBILITY The household must: 1.Be first-time homebuyer: a)Have not owned a home in the past three years; b)Displaced single parents; and/or c)Own a substandard mobile home. 2.Be a U.S. citizen or a legal resident. 3.Qualify for a mortgage loan from a Participating Loan Officer. The program has restrictions on interest rate, debt-to-income ratio, and type of loans. Non-occupant co-borrowers or co-signers are not eligible. 4.Contribute a minimum of 1.75% of the sales price toward the purchase of a home. 5.Have cash reserves of one month of mortgage payments in their checking, savings account, or any other assets after buyer contribution. 6.Agree to live in the home as their primary residence during the term of the forgivable loan. 7.Attend a Homebuyer Education Class provided by a HUD-approved housing counseling organization. See page 4 for a list of agencies that offer homebuyer education classes. EFFECTIVE 10/01/26 Community Services Homebuyer Assistance Program Guidelines 2026-30 Program Years INCOME ELIGIBILITY 1. Household income cannot exceed 80 percent of the Area Median Income Limits, adjusted for family size. The current eligible income limits are provided in Attachment 1. 2. Liquid assets must be less than $20,000 (not including retirement accounts, i.e., IRA’s, 401K plan, etc.). HOME/PROPERTY ELIGIBILITY 1. Residential property must be located inside the city limits of Denton and includes existing or newly constructed single-family residence, condominium or townhouse. Mobile homes and manufactured homes are not eligible properties. 2. Property must be occupied by the owner, buyer, or vacant at contract signing. Rental property is eligible when the tenant has been notified in writing prior to contract signing that the home might be sold, or the tenant is in the process of vacating, provided the buyer will occupy the home as their principal residence immediately after closing. 3. Age of home: a) Homes built prior to 1970 may be eligible for homebuyer assistance if the major systems of the house have been upgraded. The major systems include: electrical systems, plumbing systems, including water and/or sewer lines, roof replacement, heating, ventilation, and air conditioning (HVAC) and if needed pier and beam foundation stabilization. If a pre-1970 home has not received these upgrades, the Minor Home Repair Program may be available. b) Any structure built before 1978 must be free of any deteriorated paint. The City of Denton will conduct a visual assessment of pre-1978 houses to determine the condition of the paint. If the visual assessment shows deteriorated paint, the paint will need to be stabilized and a clearance test conducted by trained workers in accordance with Federal lead-based paint requirements for safe treatment. 4. The property must be safe, decent, and sanitary. An independent home inspection must be completed by a State Licensed Home Inspection Company. In addition to the Home Inspection, Staff will also perform an inspection of the house to ensure that the house meet the program’s property standards. A list of required repairs will be provided. Funds will not be released until all the items of concern have been addressed. Staff will complete a final inspection on the property prior to closing. 5. Funds up to $10,000 are available to assist homebuyer with program required repairs. These funds are separate from the down payment and closing costs assistance. The following are specifics on the repair funds: a) This assistance for repairs is available in a grant. b) Properties in the 100-year floodplain or floodway are not eligible for this assistance. c)Repair funds are not available for lender-required repairs since these repairs are required to be completed prior to closing or required to be in an escrow account at closing. d) Staff will complete the work specifications, and cost estimate of the required program repairs before bids are requested. e) Contractors with minimum liability insurance may perform the work. f) Staff will seek a minimum of three bids from interested companies. Community Services Homebuyer Assistance Program Guidelines 2026-30 Program Years g) The work specification, cost estimates, and bids will be completed prior to closing. h) Repairs will be completed after closing and before the buyer(s) move into their home. 6. The Seller must agree to the terms and conditions in the “Notice to Real Property Owner” in accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act, as amended. 7. The buyer and seller must have independent real estate representation prior to negotiating terms. The buyer’s real estate representation is required to be on the list of Participating Realtors, as provided below. 8. It is required that the house contain an adequate number of bedrooms for the number of household members in accordance with the following table: Number of Bedrooms Maximum Household Members 1 2 2 4 3 6 4 8 5 10 9. HOME Homeownership Value Limits Sale price and value are subject to HOME Homeownership Value Limits. The current effective date and limits can be found in Attachment 1 and remain in effect until HUD issues new limits. WHAT TYPE OFASSISTANCE IS AVAILABLE This is a first-come, first-served program. Funds are not reserved until the applicant has been certified eligible AND an executed purchase contract is received by the City of Denton Community Services Department. The program is contingent on the availability of funds. Eligible homebuyer may select one of the two down payment options below: Option 1. Funding up to the amount of $25,000, 0% interest (0% APR), forgivable loan, second lien position with a 5-year affordability period. Option 2. Funding up to the amount of $50,000, 0% interest (0% APR), forgivable loan, with a 10-year affordability period. The amount of assistance is based on need. Assistance is available to assist first-time homebuyers with the following: 1. Closing Costs: HAP will only assist with normal and customary buyer’s closing costs and prepaids. Check with your mortgage company for specific eligible and non-eligible closing costs. 2. Down Payment: HAP will assist with the minimum down payment required by the Participating Lender such as three and one half percent (3.5%) down payment for FHA loans and five percent (5%) for most conventional loans. 3. Principal Reduction Funds: Principal reduction funds can only be used to assist in the Community Services Homebuyer Assistance Program Guidelines 2026-30 Program Years difference between the sales price of the house and the maximum loan the buyer can afford above the minimum down payment. An affordable payment is considered 30% of household income based on program calculation. The household is ineligible if their payment would cause the household’s total debt burden to exceed 43% of their monthly household income. Interested buyers will work with their mortgage company to apply for these funds. The mortgage company will need to submit the program application to the City of Denton for approval of all funds, including principal reduction. The City of Denton recommends that buyers and the mortgage company receive a preliminary program approval before making an offer on a home. TERM OF LOAN/REPAYMENT OF FUNDS 1. Term of Loan: The term of the loan is five (5) to ten (10) years. The buyer(s) are required to live in the home as a principal residence for the term of the loan to comply with the program and contract requirements. 2. Repayment of HAP funds: The assistance is forgiven monthly. For example: If the assistance is $10,000 for a 5-year term, every month the homebuyer lives in the home the loan balance will be reduced by $166.67 per month or 1/60 of the loan amount. The HAP lien is released at the expiration of the term of the loan, once all the funds have been forgiven. However, in the following circumstances, the City of Denton will require that the HAP assistance be repaid: Situation of Repayment Terms of Repayment Transfer or sale of the property Repayment of loan balance from net proceeds1. If net proceeds are not sufficient to repay balance, it can be reduced to available net proceeds at sale. Foreclosure Transfer in lieu of foreclosure Home equity or Cash-Out refinance Repayment of full amount of assistance Property ceases to be owner-occupied Repayment of full amount of assistance. Lease of property Repayment of full amount of assistance. Discovery of misrepresentation or fraud Repayment of full amount of assistance. 1 Net proceeds are defined by HUD as the sale price less closing costs and mortgage payoff. 3. Refinance Loans: The Homebuyer Assistance Program will approve a refinance loan for a HAP buyer if the refinance payment remains affordable and it will either 1) lower the interest rate at a minimum 1.5% or 2) reduce the loan term. 4. Non-Assumable: The loan from the City of Denton is not assumable. The loan must be paid in full upon the sale or transfer of the property. PROCESS TO RECEIVE ASSISTANCE The following is the process to receive assistance if you meet all the eligibility criteria: 1. Contact a HAP Participating Lender from the approved list provided by Community Services or available online at https://www.cityofdenton.com/en- us/residents/services/housing-assistance/home-buyer-assistance. The lender will determine if you qualify for a mortgage loan and determine your preliminary eligibility for the program. Your mortgage company will submit the necessary paperwork to the Community Services Homebuyer Assistance Program Guidelines 2026-30 Program Years program for consideration under the HAP program. A preliminary approval is good for three months and can be extended for an additional two months with a signed earnest money contract. 2. Contact a Participating Realtor from the approved list provided by Community Services or available online at https://www.cityofdenton.com/en-us/residents/services/housing- assistance/home-buyer-assistance. The realtor can assist you in finding your home, based on the lender's loan qualification. Once you have selected your home, the realtor can also assist you in entering into a purchase agreement. 3. HAP lender will submit your HAP application. Once you have obtained preliminary loan approval and entered into a purchase agreement, your lender will submit your application to the program for down payment and closing costs assistance. You will NOT have to apply directly to the City. 4. Complete a Homebuyer Education course from a HUD-Certified Housing Counseling Agency, Fannie Mae, or Freddie Mac. Options available are listed in Attachment 2. 5. When the buyer's application is received, the Community Services Department will begin processing the request for assistance. An outline of our functions follows: A. Information is reviewed for completeness and accuracy, and an eligibility check is performed. B. Review independent home inspection and request any needed repairs. Conduct a visual assessment of pre-1978 houses to determine presence of deteriorated paint. Conduct an environmental review on the property. C. Determine the amount of HAP assistance from Settlement Statement and wire funds to the title company. Assistance is subject to completion of repairs. Notify Lender, Title Company, and buyer of assistance. D. Conduct a final inspection of the property. E. Prepare and submit HAP Deed of Trust and Promissory Note to the title company for closing. CLOSING REQUIREMENTS On the day of closing, the buyer(s) will be required to sign the following legal documents for the HAP program. 1. Promissory Note: The promissory note states that the buyer(s) must comply with the following conditions: a. Buyer(s) agrees to reside in the house for the term of the forgivable loan of five (5) to ten (10) years from the date of the promissory note. b. Buyer(s) agrees to maintain the property in safe and sanitary condition. c. Buyer (s) agrees to pay all mortgage payments, taxes, and other assessments on the property in a timely manner. 2. Deed of Trust: A security instrument that allows the City of Denton to place a lien on the property for the term of the loan. At the end of the loan term, the entire grant will be forgiven. At that time, the City of Denton will file a Release of Lien with the Denton County Clerk's Office. Community Services Homebuyer Assistance Program Guidelines 2026-30 Program Years x Applicants are subject to all program requirements and guideline changes. Guidelines are subject to change without notice. x Programs are subject to availability of funds. If there are no funds available, potential applicants will be placed on a waiting list. x This information is intended to give applicants a quick overview of the program requirements. Not all program and eligibility requirements are included. The program will be implemented in ways consistent with the Title VIII of the 1968 Civil Rights Action as known as the Federal Fair Housing Law. The law makes illegal any discrimination in the sale, lease or rental of real property based on race, color, religion, handicap, national origin, familial status or gender. Any applicant denied assistance from the program has the right to appeal the denial. Complaints concerning the program should be made in writing to the City of Denton Department of Community Services. If unresolved in this manner, a formal appeal must be made in writing on a form provided by the Division and filed with the Community Services Manager. If needed, a meeting will be scheduled between the applicant, the Housing Programs Manager, and the Community Services Manager. A written response to the applicant will be made within thirty (30) working days. In accordance with 24 CFR 92.356 and 24 CFR 570-611, applicants can be denied participation in the City’s Homebuyer Assistance Program if a conflict of interest exists. A conflict of interest exists if an applicant is an employee, agent, consultant, officer, elected official or appointed official of the City of Denton and if, within the past 12 months, any of the applicants: 1. Exercises or has exercised any function or responsibilities with respect to funds for this program, 2. Participates or has participated in the decision-making process related to funds for this program, or 3. Is or was in a position to gain inside in formation with regards to program activities. PROGRAMMATIC WAIVERS The City of Denton repair programs must follow specific guidelines required by the funding source to assure proper administration and management. If an applicant feels that their circumstances require special consideration, a request may be made in writing, waiving from the usual requirements. All waiver requests must be requested in writing and should specify the program requirement(s) to be considered for waiver and state the applicant’s reason(s) or special circumstances why they believe a waiver should be approved. The Housing Programs Manager will review requests on a case-by-case basis. OTHER DISCLAIMERS NON-DISCRIMINATION REQUIREMENTS DISPUTE CONFLICT OF INTEREST REQUIREMENTS Community Services Homebuyer Assistance Program Guidelines 2026-30 Program Years The City Manager or their designee, upon determination of a good cause, may waive any guidelines not otherwise required by the funding source, City ordinance, or policy. Applicant will be notified in writing of the final decision. APPEALS PROCESS An appeal of a program decision may be in made in writing to Community Services using the contact information below. A written response to any appeal will be completed and mailed within 15 days from the receipt of the written appeal. Documentation of the appeals will be placed in the appropriate project files. Community Services Department Email Community.DevelopmentMail@cityofdenton.com Community Services Department Address 601 E Hickory St., Denton, Texas 76205 Community Services Homebuyer Assistance Program Guidelines 2026-30 Program Years ATTACHMENT 1 The effective dates and limits in Attachment 1 remain in effect until HUD issues new limits. Effective Date: 10/1/2026 Maximum Income Limit – 80%: Family Size 1-person 2-person 3-person 4-person Income Limits $67,850 $77,550 $87,250 $96,900 Family Size 5-person 6-person 7-person 8-person Income Limits $104,700 $112,450 $120,200 $127,950 HOME HOMEOWNERSHIP VALUE LIMITS Effective: 10/1/2023 Existing Homes New Homes $370,000 $370,000 Community Services Homebuyer Assistance Program Guidelines 2026-30 Program Years ATTACHMENT 2 List of Homebuyer Education Classes available in the Area: Name of Agency Available Registration Fannie Mae: HomeView Free online course https://www.fanniemae.com/education Freddie Mac: CreditSmart Free online course https://creditsmart.freddiemac.com/paths/h omebuyer-u Finally Home! Online course (maximum fee of $50) https://www.finallyhome.org/en/partners/td hca/ BCL of Texas Saturday class in Dallas https://bcloftexas.org/homeownership/ classes or 214-688-7456 Housing Channel.org Classes Available in English and Spanish in Arlington and Fort Worth https://www.housingchannel.org/classes or Phone: 817-924-5091 Toll-Free: 1-877-924-5095 EFFECTIVE 10/01/26