Audit finds millions in unclaimed housing funds
In the quiet neighborhoods of Durham, North Carolina, a hidden opportunity is waiting for first-time homebuyers, though many eligible residents are completely unaware of it. The city’s Down Payment Assistance Program offers up to $80,000 in forgivable loans to help low- and moderate-income families secure a home.
A recent city audit highlighted a significant gap: while millions of dollars remain available, the program lacks a formal outreach strategy, leaving many potential homeowners in the dark. Since its relaunch in late 2023, the program has already helped 42 buyers with average awards of $66,500, yet over $1.6 million still sits unused.
The program is designed as a 15-year loan that is forgiven at a rate of 1/15th per year, meaning that if a buyer stays in the home for the full term, the debt is completely wiped clean. To qualify, applicants must earn at or below 80% of the Area Median Income (AMI) and work with participating lenders. Despite its success for some, auditors have suggested that Durham’s strict income cap may be preventing other residents—who still struggle with today’s high housing costs—from accessing these life-changing funds.
