EL PASO, TEXAS (KFOX14\/CBS4) \u2014 El Paso leaders are weighing a major shift in how the city uses federal housing dollars, as rising home prices have made it harder for residents to qualify for first-time homebuyer assistance.<\/p>\n
City officials are set to discuss a proposal tomorrow that would move $2.5 million from the city\u2019s first-time homebuyer program to help pay for the development of multi-family units. <\/p>\n
The $2.5 million comes from unused funds from the program.<\/p>\n
Paulina Carr reports on El Paso weighs shifting $2.5M from first-time buyer aid to affordable housing (Credit: KFOX14)<\/p>\n<\/p>\n
RECOMMENDED: El Paso seeks public input on redirecting $2.5M to affordable housing expansion<\/a><\/p>\n The first-time homebuyer program provides up to $45,000 in assistance for first-time homebuyers, plus an additional $5,000 that can be used toward a down payment or closing costs.<\/p>\n The city said several factors have limited its ability to use the funds for first-time homebuyer assistance, and the last time the program was used was in 2021. <\/p>\n One factor is that home prices have increased, causing people to no longer qualify for the assistance.<\/p>\n To qualify, household income could not exceed 80% of the area median income, and the property would have to be priced below $226,000. <\/p>\n According to the El Paso Association of Realtors, the average price for a property is now $280,000. In 2021, the median price for a home was $182,000, making homes ineligible for the program in 2026.<\/p>\n