Acronyms:
HUD: U.S. Department of Housing and Urban Development
CDBG: Community Development Block Grant Funds
HOME: HOME Investments Partnership Funds
HQS: Housing Quality Standards
DAP: Downpayment Assistance Program
TREC: Texas Real Estate Commission
Definitions:
Affordability Period: is the term in the second-lien deferred loan Deed of Trust that provides for the homebuyer(s) to maintain the property purchased as their principal residence for a specific number of years based on the amount of funds provided for the Downpayment Assistance.
Dependents: are the individuals under eighteen (18) years old who reside in the same household as the applicant(s). Adult dependents eighteen (18) years of age or older will be included, if they are full or part-time students. Unborn children are not included. Examples of supporting documentation for dependents that may be required for the loan package include:
- Birth Certificates (for each dependent).
- Legal documentation of adoption or guardianship.
- Copy of current college class registration, if applicable.
Displaced Owner: is one who moves from real property or who moves personal property from real property, permanently, as a direct result of acquisition, rehabilitation, or demolition from a project assisted with Downpayment Assistance funds.
Homebuyer: is a prospective purchaser who must be low-income, with an annual gross income that does not exceed eighty (80) percent of the median income for the area and who occupies the property as the principal residence for the affordability period for the second lien deferred loan.
Household Income: is the annual gross household income anticipated to be received during the coming 12-month period for all adults who will reside in the household. The annual gross income shall be determined by HUD’s income eligibility calculator under the “Part 5” definition.
In addition to all wages and salaries, income includes: overtime pay, commissions, fees, tips, bonuses, and all other compensation for personal services before payroll deductions.
Household income must include the following types of income and current supporting documentation:
- Aid to Families with Dependent Children (AFDC)
- Child Support
- Alimony
- Social Security / SSA
- Disability / SSI
- Other household income may be included
Household Size: includes all persons who will be residing with the applicant(s) in the house and claimed on current year income tax return.
Program Administrator: is the Harris County Community Services Department's Lending Services Staff, who will administer the Downpayment Assistance Program.
Property Standards: are the minimum local codes, rehabilitation standards, and zoning or other ordinances of the property. When there are no local codes, HUD requires that the property must meet and comply with codes from The International Residential Code, IRC – 2000 Edition, International Plumbing Code, International Mechanical Code and International Energy Conservation Code, Version 3.0 – 2000. Homes within airport runway clear zones and flood zones will not be approved.
Second-lien Deferred Loan: is a lien that is placed against the property until the affordability period is matured or satisfied by the terms of the Deed of Trust. This lien is in second position to the lending company’s first lien placed against the property. This loan does not require repayment unless the affordability period is not satisfied.
Service Area: is where the property is located within the unincorporated areas of Harris County or in one of the fifteen (15) cooperative cities in Harris County.
Single Family Home Inspection: is a property inspection performed by the Harris County Community and Services Department staff.