El Paso Redirects $2.5M to Affordable Housing
El Paso officials propose moving $2.5 million from a dormant first-time buyer fund to finance new multi-family housing construction.
El Paso proposes reallocating $2.5 million from its first-time homebuyer program to affordable housing development. The funds have remained unused since 2021 due to rising local property values. City officials plan to discuss the shift in a public meeting tomorrow.
Rising prices render buyer aid obsolete
The program previously offered up to $45,000 in assistance plus $5,000 for closing costs. Qualification required a home price below $226,000 and household income under 80% of the area median. The El Paso Association of Realtors reports the average property price is now $280,000. In 2021, the median price was $182,000.
Funds target 35,731 unit housing gap
Officials aim to use the money to help construct 35,731 needed affordable multi-family units. The allocation also covers rehabilitation of existing housing and acquisitions for rental projects. This addresses a shortage of low-cost housing options for residents.
Federal approval follows public comment
Public comment will follow the proposal before the amendment goes to the U.S. Department of Housing and Urban Development. The submission is scheduled for October. A notice of funding availability is expected by year-end, according to GN auto markets/housing reports.
