HUD establishes the maximum value limits of the initial purchase price or after-rehabilitation value of homeownership units assisted with Home Investment Partnerships Program (HOME) funds and the City has been using this limit as provided by HUD each year. However, the current value limits of $285,000 has not kept pace with rising housing market costs necessitating an increase to the Homeownership Value Limits to continue to assist low-to-moderate income homebuyers.
In accordance with Title 24 Part 92.254 (a)(2)(iii), HUD permits a Participating Jurisdiction, or the City, to establish its own maximum homeownership value limits assisted with HOME funds. To do so, HUD requires that the initial purchase price or after-rehabilitation value of homeownership units assisted with HOME funds not exceed 95 percent of the area median purchase price for single-family housing. According to the data provided by Collin County Association of Realtor® the median purchase price of homes located within the City of Plano for the months of October through December 2021 was approximately $440,000. Therefore, the City determined the affordable HOME homeownership value limit for the city to be $418,000.
This new affordable homeownership value limit will serve as a maximum purchase price for a single-family home for households participating in programs that increase and/or preserve affordable housing units through new construction, acquisition rehabilitation, rehabilitation, or homebuyer assistance utilizing HOME Investment Partnerships funds.
The City’s Citizen Participation Plan (CPP), describes changes that require the approval of a substantial amendment, in accordance with HUD regulations. The following changes, as outlined in the CPP, require the current need for a substantial amendment:
(1) Changes to Consolidated Plan goals and objectives;
(2) Changes to project budgets approved in the annual Action Plan that exceed 25% of the project’s approved budget; and
(3) Addition of new activities to the approved annual Action Plan.
HUD requires the City to submit the substantial amendment to the Action Plan for approval prior to establish our own value limits.
Public Input
On March 13, 2022, a public hearing and comment period notice was placed in the Plano Star Courier to inform citizens of the proposed change. All comments received by 4 p.m. on April 11, 2022, will be provided to City Council. Comments may also be made during the public hearing.