A new city initiative could help as many as 25 Akron families become homeowners this year.
The proposal, which is included in Mayor Shammas Malik’s capital budget, would provide up to $12,000 in down payment assistance for people to buy homes in Akron. If approved by City Council, the administration intends to put $300,000 into the program using money from the U.S. Department of Housing and Urban Development.
Details of the “brand new” loan program are still being worked out, said Kyle Julien, Akron’s planning director. But he said the city’s intention is to match funds that potential buyers are able to save on their own, giving them $3 for every $1 they save up to the $12,000 cap. The loan would be forgiven over time if residents continue to live in the home that they purchased with the city’s assistance.
“We’re looking at the way the housing market is shifting and we felt like we can strengthen the housing market and bring home ownership more within reach of folks that represent the median Akron income,” Julien said. “There are a lot of spin-off benefits.”
Some of those benefits include helping residents build wealth through the value of their homes and strengthening neighborhoods by encouraging people to make long-term investments in the city. Julien said the program could increase attachment to Akron for families.
“Hopefully, it makes our neighborhoods that much more attractive to folks, not just as a financial investment, but an emotional one,” he said. “It’s something that allows more people to see our neighborhoods as something to take a look at.”
To be eligible for the program, potential participants have to take a buyer education class certified by HUD, so the city knows they’re prepared for home ownership. They also will be income restricted to 80% of the area median income. In 2023, the median income of Akron residents was $48,544, according to U.S. Census data.
Julien said he doesn’t expect that participants will need to be Akron residents before they make a home purchase, but the houses must be owner-occupied. The city’s contribution will be forgiven over time, but how long residents must stay in the homes before it is reduced to zero is still being debated, Julien said. He said the expectation is that the program would induce long-term home ownership.
If approved by council, Julien said he’d like to see the program taking applications before the end of March. It would be available on a first-come, first-served basis. And while he said he’d hope to repeat the program in future years, it will be dependent on continued federal funding.
“I’m extremely excited,” Julien said. “It’s going to be good for our neighborhoods and help families do some wealth building.”
