1. Residents
  2. Neighborhoods
  3. Housing

Homeownership Programs

In order to help build more inclusive communities and stable neighborhoods, Community Development offers several programs to assist first-time home buyers achieve their dreams of homeownership by providing quality housing at a reasonable price. With our local partners, we strive to create communities of educated homeowners while meeting the guidelines set forth by the federal Fair Housing Act.


As part of our ongoing effort to build an inclusive community, the Department of Community Development works to ensure that fair and affordable housing options are available to everyone. We are committed to supporting all Huntsville residents find quality housing at a reasonable price, and upholding the federal Fair Housing Act to ensure that everyone has the right to live where they choose.

In order to meet these commitments, Community Development partners with local nonprofit and business organizations to provide the following variety of housing options in the city of Huntsville:

  • Single-family HOME Ownership Program
  • Multi-family HOME Program
  • Down Payment Assistance Program
  • Realtor & Lender Information


The Single-family HOME Ownership Program provides newly built 3 Bedroom/ 2 Bath houses with spacious, open floor plans in the Terry Heights & Edmonton Heights Neighborhoods to qualifying applicants. Applicants must be first-time home buyers and meet certain income qualifications (listed below). For more information about this program contact Habitat for Humanity at 256-533-2282 or the Family Services Center at 256-551-1610.


Multi-family HOME Program The HOME Multi-family Development Program provides funding to Public Housing Authorities, nonprofits, and for profit entities for the new construction or rehabilitation of affordable multifamily rental developments. Funding is provided in the form of low interest bearing, repayable loans. Multifamily developments carry long-term rent and income restrictions and may be layered with additional funding sources (such as Housing Tax Credits). Development funds are awarded on a first-come, first-served basis through an RFP application administered by the City of Huntsville Department of Community Development.

The Multi-family HOME Program is a federally funded program that provides local Participating Jurisdictions (PJ)’s annual allocations that may be allocated to non-profit or for profit developers to buy land and build affordable housing.

As a recipient of federal HOME funds, Huntsville directs an application cycle on a competitive basis. In addition, Huntsville’s staff is responsible for monitoring HOME-assisted developments and conducting on-site visits. They check rental property annually for compliance with HUD tenant incomes, rent levels and Housing Quality Standards.

Housing Credits and State HOME funds are often utilized with other supplemental housing resources administered by Huntsville from time to time. This method, which encourages leveraging of additional loan, grant and philanthropic sources, is an example of the measures Huntsville takes to ensure its programs benefit the greatest number of its citizens.


The Community Development Department also offers a Down Payment Assistance Program (DAP) in order to help assist first-time homebuyers in achieving their dreams of home ownership by helping them pass the first hurdle: the down payment. The program provides up to $7,500 towards down payment and closing costs based on each individual homebuyers needs. Applicants must meet certain eligibility requirements and be prepared to commit to living primarily in the property for a minimum of five years.

In addition to the number of housing assistance programs, our partners at the Family Services Center offer a number of first-time home buyer training and counseling sessions to help with the home ownership process. For more information about these classes and other opportunities, please call 256-551-1610 or visit www.fsc-hsv.org/housingprograms.html.

Income Qualifications: The following table identifies the maximum income based on family household size that will meet the program requirements.



To become a Participating Lender please review the Policies and Procedures and the DAP submission Checklist.  Lender staff working with the program must receive DAP training prior to any file submission.

Information for Real Estate Agents: To learn more about DAP program processes and to better identify eligible homebuyers, please review the Policies and Procedures and the DAP submission Checklist.

  • Phone:


  • Address:

    Community Development Office

    120 E. Holmes Avenue

    Huntsville, AL 35801 

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  • Hours:

    Monday – Friday, 8 a.m. – 5 p.m.

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