More Pima County residents can apply for first-time homebuying help

Some would-be homeowners in Arizona’s largest counties, Pima and Maricopa counties, could get a helping hand from the state.

Gov. Katie Hobbs has allocated $5 million from the state’s share of federal COVID relief dollars to expand a program started last year that provides down-payment assistance to first-time homebuyers.

That’s enough to provide $9,000 for 75 would-be homeowners in Pima County. The Governor’s Office said the additional dollars should also help to purchase 65 homes in Maricopa County.

This is in addition to an earlier $13 million program that provided financial assistance to about 500 homebuyers throughout the state.

That includes rural counties, which, according to the Governor’s Office, already got their second infusion of dollars — what’s now being provided to the two largest counties. With both pots of money, 589 homes have been purchased through the program in the state’s 13 rural counties, the office said.

With the new dollars for Pima and Maricopa counties, the total number of Arizonans getting a financial bump from the program should reach 1,000, it said.

The program, called Arizona is Home, started as home prices in Arizona had skyrocketed, leaving many families unable to afford the monthly mortgage payments.

Those price increases have cooled somewhat as there are more homes on the market. But they still are unaffordable for some.

Redfin, which tracks such issues, says the median sale price of a home in Phoenix in June was $455,722, up 0.2% since last year. But homes were remaining on the market longer.

In Tucson, Redfin reports a median sale price of $332,690, up 2.7%. Here, too, homes remained on the market for 61 days before sale, up 11 from the prior year.

“By putting homeownership within reach, we’re helping working families unlock the Arizona Promise and build their future right here in Arizona,’’ the Democratic governor said in a prepared statement. “Through Arizona Is Home, we’ve turned the dream of owning a home into a reality for hundreds of Arizonans, and now even more Arizonans will have that same opportunity.’’

Eligibility rules

Not everyone will qualify — and not only because this is limited to first-time home buyers who have been Arizona residents for at least six months.

In order to qualify, there is a cap on income equal to 120% of the area median income.

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In Tucson, that’s $80,760 for individuals and $115,320 for a family of four.

The income figures are higher for the Phoenix area: $94,350 for a single applicant and $134,650 for families of four.

But both programs also require buyers to have a credit score of at least 640, something considered below average for scores that generally range from 300 to 850, with the higher figure considered exceptional. The score is based on a number of factors, the largest being whether someone makes timely bill payments and how much of their credit they have used.

Under the Arizona is Home program, an applicant’s amount of debt already owed cannot be more than 45% of income.

In all cases, those who qualify must attend a homebuyer education course.

Other programs and legislative efforts

Hobbs has acknowledged that programs like this, as well as others designed to make homes and rentals more affordable, deal with just a small portion of the problem.

Lawmakers have approved — and she has signed — various measures designed to address aspects of the issue. Those include requiring many cities to allow homeowners to build “casitas’’ on their properties, and mandates for communities to allow more duplexes, triplexes, fourplexes and townhomes.

There also is a new law to allow construction to begin as early as 5 a.m. to expedite homebuilding while also providing some protection from heat for workers.

But what has eluded a deal has been a “starter home’’ proposal designed to override many local zoning regulations in a bid to provide what developers say would be more affordable housing.

Proponents want to allow smaller lot sizes, decreased setback requirements and elimination of things that some cities require, like rear-yard patios and landscaping.

Cities and neighborhood groups have balked at the changes.

There’s another potential sticking point: whether to require that the homes built to the more relaxed standards should have to be sold to those who will live there or could be snapped up by investors.

Hobbs vetoed a 2024 version of the bill. It never got that far this year as the parties involved failed to reach a compromise.