Increase Homeownership Opportunities 

Navigation: Increase HCV Homeownership | Provide Appropriate Funding to Make Section 32 of the Public Housing Repositioning Program Work | Increase Support and Funding for Homeownership Counseling and Down Payment Assistance to Help First-Time Homebuyers | Support the Neighborhood Homes Investment Act | Redesign Mortgage Insurance

Updated July 10, 2025

Increase HCV Homeownership 

The HCV Homeownership program allows voucher holders at PHAs that have homeownership programs to use their voucher to receive monthly assistance in purchasing a home. To be eligible to use the homeownership option, participants must meet different or additional eligibility requirements such as being a first-time homebuyer, income requirements, employment requirements, and/or completing a homeownership program. As of February 2024, there were 9,710 active homeownership participants. As of April 1, 2024, there have been 10,443 closings using the homeownership voucher program.  

Homeownership is proven to be a critical step to financial stability and to building generational wealth. As such, HUD should be doing everything that it can to help families have access to homeownership. The HCV Homeownership program is one tool in the toolbox that should be elevated to help families buy their own home. 

Recommendation: Empower residents by increasing housing choice and providing homeownership options by promoting the HCV Homeownership. 

Navigation: Back to Top

Provide Appropriate Funding to Make Section 32 of the Public Housing Repositioning Program Work 

Section 32 of the Quality Housing and Work Responsibility Act (QHWRA) permits PHAs to make public housing available for purchase by low-income families, provided the unit remains their primary residence. Under this provision, PHAs may sell an existing or newly acquired public housing unit to an eligible public or non-public housing resident, approve a Homeownership Plan utilizing Capital Funds to assist public housing families in purchasing a home, or use Capital Fund assistance to acquire homes for sale to eligible low-income families. 

Recommendation: Empower residents by expanding housing choices and homeownership opportunities through the promotion of the Section 32 Public Housing Repositioning Program. Advocate for increased Capital Fund appropriations to enable PHAs to address essential capital repairs while allocating funds to support Section 32 initiatives. 

Navigation: Back to Top

Increase Support and Funding for Homeownership Counseling and Down Payment Assistance to Help First-Time Homebuyers 

Many first-time homebuyers are unsure where to start their journey. Housing counseling programs play a crucial role in helping families secure, maintain, and preserve their homes. These programs address housing barriers, assist with financial management, provide fair housing education, offer guidance on home improvement, and conduct workshops on avoiding predatory lending. By equipping first-time homebuyers with the knowledge they need, housing counseling ensures they are well-prepared to purchase their first home. 

For many, the cost of a downpayment can be a significant obstacle. Downpayment assistance programs for eligible families help make homeownership more accessible, enabling more low-income families to take this critical step toward building generational wealth. 

Recommendation: Increase support and funding for homeownership counseling through HUD’s Housing Counseling Program. Provide down payment assistance to eligible first-time homebuyers. 

Navigation: Back to Top

Support the Neighborhood Homes Investment Act 

The Neighborhood Homes Investment Act provides tax credits to incentivize private investment in the development of owner-occupied homes in stagnating or distressed communities. This program aims to increase the availability of quality starter homes by allocating tax credits to states based on statewide allocation plans. These plans are guided by criteria ensuring that investments contribute to neighborhood stabilization and revitalization. 

Similar to the Low-Income Housing Tax Credit, the Neighborhood Homes Tax Credit is only applied after construction is complete and a qualified homeowner occupies the home. The credit is restricted to covering the actual value gap, as determined by market conditions. 

Recommendation: Support the Neighborhood Homes Investment Act.  

Navigation: Back to Top

Redesign Mortgage Insurance 

Steps must be taken to expand homeownership opportunities for low-wealth households, as homeownership is a vital pathway to building generational wealth. Implementing liquidity cushions could help protect against income disruptions or unexpected expenses, reducing the credit risk associated with offering mortgages to low-wealth families. 

One approach is liquidity insurance, which could temporarily cover a borrower’s monthly mortgage payments in the event of income loss or sudden financial strain. This insurance could be financed through a modest increase in the FHA’s mortgage insurance premium, providing a safeguard for both borrowers and lenders. 

Recommendation: Create and fund mortgage liquidity insurance to help ensure low-wealth families can access homeownership.

Navigation: Back to Top | Increase HCV Homeownership | Provide Appropriate Funding to Make Section 32 of the Public Housing Repositioning Program Work | Increase Support and Funding for Homeownership Counseling and Down Payment Assistance to Help First-Time Homebuyers | Support the Neighborhood Homes Investment Act | Redesign Mortgage Insurance