New York City is upping the ante for first-time homebuyers with a hefty investment aimed at making homeownership a more achievable goal. Mayor Eric Adams and the Department of Housing Preservation and Development (HPD) Commissioner Adolfo Carrión Jr. have announced a significant expansion of the HomeFirst Down Payment Assistance Program, now offering up to $100,000 in support toward down payments or closing costs, as reported by the City of New York's official website. Injecting an additional $41 million over the next five fiscal years for a total investment of $82 million, this initiative is designed to double its impact, serving 1,000 households within five years.
The HomeFirst program, which has already helped over 1,100 New Yorkers in the last decade, is expected to broaden its reach under the new expansion. According to statements obtained by the City of New York's official website, income eligibility will now encompass individuals and families earning up to 120 percent of the area median income (AMI), a considerable jump from the previous cap of 80 percent of AMI. Mayor Adams heralded the expansion, "For those families who need help closing a deal, or putting down that down payment, our administration is here to help." The program's scope is widening not only in financial terms but also through the addition of a new nonprofit partner, which aims to speed up support for aspiring homeowners.
In June 2024, the Adams administration's commitment to affordable housing was reflected in the agreed-upon $112.4 billion Fiscal Year 2025 budget, which allocated $2 billion for the HPD and the New York City Housing Authority's capital expenditures across two fiscal years. Continuing the trend of increased resources, Mayor Adams' administration has surpassed prior commitments by dedicating $24.5 billion in housing capital across the current 10-year plan. These measures address what has been widely recognized as a generational housing crisis in the city.
Mayor Adams' housing approach also extends to innovative solutions aimed at creating additional living spaces within existing residential properties. A $4 million state grant is facilitating the creation of accessory dwelling units to not only assist homeowners in affording their residency in New York City but also pave the way for building generational wealth. All of these efforts, along with new legislation, are part of Mayor Adams' broader plan to direct the city through an affordability crisis and foster the dream of homeownership for a larger segment of New Yorkers.
Spurred by the urgency to enhance housing affordability, local policymakers are voicing their support for these initiatives. "[The HomeFirst Down Payment Assistance Program] will provide homebuyers with up to $100,000 to purchase the home of their dreams," New York State Assemblymember Jenifer Rajkumar shared with the City of New York. Meanwhile, City Council Speaker Adrienne Adams emphasized that the Council has "consistently advocated for expanding New Yorkers' access to affordable homeownership amidst our city's housing crisis." The expansion aligns with the Council's 'City for All' housing agenda and reflects a promise by HPD to deliver affordable homeownership for low- to middle-income New Yorkers.
