Denver’s Department of Housing Stability announced Wednesday a new housing program aiming to increase homeownership in communities of color historically targeted by practices like redlining.
The program, called the metroDPA Social Equity program, provides down payment assistance of $15,000 or $25,000 based on income level to qualifying households through an interest-free, three-year forgivable loan. The program is being offered to residents and direct descendent of those who lived in Denver neighborhoods that were redlined between 1938 and 2000.
“We’re focused on leveling the playing field for homeownership opportunities among all of our communities in Denver,” Mayor Michael Hancock said in a release. “Far too many households, historically those in communities of color, have been excluded from the American Dream and the wealth-building it offers for these families. This is a step in correcting that.”
Applicants need to quality for a 30-year, fixed-rate home loan, earn less than $150,000 a year and have a credit score above 640. Those who are approved for the program may use the funds for a down payment or closing costs to purchase a home anywhere in Front Range areas approved by the program.
The metroDPA program has been around since 2013 prior to this new addition and has helped over 4,000 households find a home they could own.
A release from HOST said the Social Equity program intends to mitigate impacts of gentrification and involuntary displacement from historically redlined neighborhoods in Denver. The program came as part of HOST’s five-year strategic plan with a goal of increasing Denver homeownership among Black, Indigenous and people of color from 41% to 45$ by 2026.
