The City of Davis Affordable Home Ownership Program offers an opportunity for income and asset qualified households to purchase a home locally at below market cost. The program does not provide loan or down payment assistance. Individuals must be able to obtain a loan and any necessary down payment required by the lender and afford the mortgage payment.

Contact the City of Davis at affordablehousing@cityofdavis.org and asked to be added to the Waitlist to purchase an affordable home.

No, we do not publish a list of available properties. Those who are on the Affordable Home Ownership Waitlist are contacted in Waitlist order when a home becomes available.

The sales price of the property is restricted to a 3.75 percent appreciation per year from its original date of sale, compounded annually. Southfield Park (the homes on Greene Terrace) is the only exception with appreciation restricted to 5.5 percent annually.

The owner is required to occupy the affordable home as their primary residence for the entire duration of his/her ownership of the home.  Such occupancy must commence within six months following completion of the purchase.

• Everyone on the title must live in the home.
• No co-signers are allowed on the purchase.
• The home in its entirety or any part of the home may not be rented.
• The home is not permitted to be in a living trust in order to meet the occupancy requirements.
• The owner is not permitted to own any other residential unit.

Each owner must execute a Declaration of Owner Occupancy at purchase and annually as required by the city.

Owners must notify the City of Davis in writing if they intend to take an extended vacation lasting one or two months during which time the owner will not be occupying the home. The home may NOT be rented in the interim.

In instances where the purchaser(s) of the affordable home intends to add new persons to the deed, the new household must re-certified to meet the city’s income restrictions.

In instances where the purchaser(s) vacate the affordable home for more than 180 days without requesting and gaining an approved exemption from the city, the purchaser(s) will be required to sell the unit upon the city’s written direction unless otherwise approved by the city.

The owner(s) of an affordable home must intend to occupy the home for a minimum of 24 consecutive months before selling. If the owner needs to sell early, they must contact the City of Davis in writing and ask for an exemption.

Households that can income and asset qualify (see Program Eligibility Requirements) and are ready to purchase a home.  We suggest you contact a lender to determine the amount of house you are eligible to purchase as you will need a loan pre-approval to purchase a home.

Contact the City of Davis at affordablehousing@cityofdavis.org and asked to be added to the Waitlist to purchase an affordable home.

The Waitlist is organized in numerical order. The Waitlist number you receive when placed on the list will change as people drop off the list due to the purchase of an affordable home, asking to be removed from the Waitlist or being removed from the Waitlist for passing three times on the opportunity to purchase a home.

When an affordable home is ready to be viewed, City staff go through the Waitlist and begin to contact potential buyers. Potential buyers are contacted based on their stated- preference in purchasing a home with 2-or-3 bedrooms or either 2-or-3 bedrooms. When a home is available, those who are at the top of the Waitlist are notified if the home matches their bedroom preference.

Potential buyers have 72-hours to view the home AND let the City of Davis know if they are interested in purchasing the home. Potential buyers interested in purchasing the home, notify city staff and begin the income and asset qualifying process.

If potential buyers are not interested in purchasing the home, they notify city staff and pass on the home. Those on the Waitlist who pass three times will be removed from the Waitlist.  Those who fail to notify City staff of their decision to pass will also have a pass against them. 

Anyone wishing to rejoin the Waitlist can let city staff know that they are interested after 24-hours has passed since they were removed.  At that time, they will fill out and return the Waitlist Questionnaire to city staff and then will be placed at the bottom of the list.

The United States Department of Housing and Urban Developments (HUD) determines the income limits per household size. The City of Davis is unable to make any exception to this requirement. Annually, HUD publishes new Income Limits. These are available on the City of Davis website and are updated annually. To qualify a household’s gross annual income cannot exceed moderate-income levels for Yolo County calculated at 120% of area median income (AMI). Also, households cannot have over $250,000 in assets.  For more information go to the Affordable Home Ownership webpage.

Households with assets that exceed $250,000 are automatically disqualified from the program. The following are considered assets: gifts, stocks/bonds, equity in property, retirement accounts (there are some exemptions), life insurance, lump sums and deeds.

We look at the last three months of income. 

No, the city looks at what they will be making to qualify them.

Yes, lawful permanent residents can use their green card as proof of residence to get financing to buy a home.

U.S. citizenship is not required to obtain an FHA loan, but an immigrant must have lawful permanent residence status, have nonpermanent residency status or be a DACA recipient.

No, the program is designed to help as many households as possible to obtain an affordable home with the hope that this will launch them eventually into a fair market home and open up their affordable home for another household. The program is NOT designed to move the same people amongst affordable homes as this is not equitable.

Not if the buyer has more $250,000 in assets when they make an offer on the home even if they claim they will not have this as equity when they sell their home.  And, the program is moving towards a first-time homebuyer’s program. Beginning in 2024, households are no longer added to the Affordable Home Ownership Waitlist if they own a home.

Is gift money allowed?

Gifts are allowed BUT count as part of the assets and the gift must be seasoned.

My child will be attending college in Davis and I want to buy an affordable home for them. Will they qualify?

No, this program is designed for low-income households not for students whose parents can afford to buy their child a home while attending college. In addition, everyone listed on the loan/title must reside in the household. And, everyone residing in the household must include their income when qualifying.

Can one spouse be on the loan and both spouses be on the title?

Both parties on the title must be on the loan. Likewise, both parties on the loan must be on the title. If the couple is married, it is possible for one spouse to obtain a loan and go on title but the other spouse must sign a Quit Claim agreeing to this.

The other alternative is to obtain a letter from the lender stating that one partner/spouse is on the loan but both partners/spouses will be vested in title on the Deed of Trust.

No, if more than one person purchases the unit, all purchasers must occupy the unit.

No, homes that are in the Affordable Home Buyers Program cannot be placed into living trust. Please refer to the City of Davis Municipal Code 18.04.040.

Once you purchase a home, you can make any modification or renovations since this is your home. You will need to check the building department for required permits and inquire with the HOA, if you have an HOA, regarding any stipulations. Please keep in mind that any modifications will not be reflected in the sales price.

Close of Escrow

Anyone wishing to close escrow in less than 30 days must first discuss this with the Affordable Housing Manager to determine whether this is possible.

If you have experience with real estate and legal documents then you may not need a realtor. However, for most people, having your own realtor is beneficial.  Using the seller’s realtor may not be in the buyer’s best interest.

The City of Davis does not require you to use any particular lenders.  Ask you realtor for recommendations or visit the Affordable Home Ownership Program webpage for a list of local lenders that can also offer CalHFA loans to low-to-moderate income households.

The City of Davis has no restrictions on the types of loans the buyer uses. Please direct all loan related questions to your realtor or lender.

Yes, the 1% administrative fee paid by the seller to the City of Davis and is calculated from the sales price of the home.  Buyers will not and should not pay this fee. If an owner or their realtor is asking you to pay this fee, please contact the City of Davis Affordable Housing unit.

The role of City staff is to ensure that the transaction protects the affordability of the program. Until recently, in a typical sales transaction, the commission was generally paid by the seller. In order to avoid making it more difficult for the buyer to obtain an affordable home, this practice of the seller paying for the buyer's realtor's commission will remain the same. The City’s position is that there should be no undue hardship placed on the buyer.

Yes