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Purchasing an Affordable Home In Davis

Affordable Homeownership Program Overview

The City of Davis Affordable Homeownership Program provides income- and asset-qualified first-time homebuyers with the opportunity to purchase a home in Davis at a below-market price. The program is designed to expand access to homeownership for low-income households who may otherwise be unable to purchase a home in the local housing market.

Please note that the program does not provide mortgage financing or down-payment assistance. Buyers must be able to secure a mortgage, satisfy any lender down-payment requirements, and afford the ongoing costs of homeownership, including monthly mortgage payments, property taxes, insurance, and homeowner association dues, if applicable. Buyers may work with any lender of their choice.

The program supports households seeking the stability, financial security, and community benefits that homeownership can provide.

Davis currently oversees several affordable units, and additional affordable ownership units are created as new developments are built. These homes are privately owned and occupied by individual households and remain subject to deed restrictions that preserve affordability for future buyers. When the owner of an affordable homes decides to sell, the City administers the resale process and works to match eligible buyers from the Waitlist with available homes. 

Understanding the City's Affordable Homeownership Program

The City’s Affordable Homeownership Program is different from the traditional real estate market. The program was created to provide long-term homeownership opportunities for income-qualified households who might otherwise be unable to purchase a home in Davis.

Because affordable homes are sold at below-market prices, they are subject to deed restrictions and program requirements that preserve affordability for future generations of homebuyers. Home buyers who purchase through the program benefit from a reduced purchase price and, in exchange, agree to comply with the program's resale restrictions when they sell.

Before participating in the purchase or sale of an affordable home, buyers, sellers, and real estate professionals should understand the following:

  • The primary purpose of the program is to create and preserve affordable homeownership opportunities for income-qualified households.
  • Affordable homes are sold at prices determined by the City’s affordability formulas and deed restrictions, not by market demand alone.
  • Home buyers benefit from purchasing a home at a lower price than a comparable market-rate home and; future resale transactions are restricted to maintain affordability.
  • The amount of equity gained for homes in the program may be less than what could be achieved through the purchase of a market-rate home.
  • The City’s priority is to administer the program in accordance with adopted regulations and deed restrictions in order to provide homeownership opportunities for low-income buyers.
  • Buyers must complete eligibility, income, and asset verification requirements that may not be required with traditional market rate home sales.
  • Sellers must apply required marketing, notification, and review requirements and procedures before a sale can be completed.
  • These additional requirements could mean, the sale of an affordable home may take longer than the sale of a market-rate home.
  • Individuals who purchase affordable homes are able to purchase a home at a price below comparable market-rate homes. In exchange, they agree to comply with the program's resale restrictions, which help preserve affordable homeownership opportunities for future buyers.

The City encourages buyers, sellers, lenders, escrow officers, and real estate professionals to familiarize themselves with program requirements early in the transaction process to help ensure a smooth and successful sale.

New Affordable Housing Developments

To learn about affordable housing developments currently under construction or in the planning process, please visit the City's Community Development Projects webpage:

https://www.cityofdavis.org/city-hall/community-development-and-sustainability/development-projects

Individuals interested in purchasing an affordable home in a new development must participate in a lottery process. This requires the buyer to contact the developer to determine the lottery process.

For further information on the lottery process please see City Ordinance 18.05.040(g):

“Buyer/tenant selection and screening. Buyer/tenant selection and screening shall be carried out by the developer, owner, city, or by the designated responsible party, at the sole expense of the developer. Included in the affordable housing plan submitted by the developer, shall be a proposed marketing plan

with an estimated timeline of events, which must be approved by the city and shall adhere to the city's buyer/tenant selection and screening guidelines.

The City of Davis will monitor the buyer selection and screening process through required monthly reports, and through the ability to review any and all files regarding the process at any time that city staff requests to do so. The City of Davis will possess the ability to halt any sale or break any lease of an affordable unit at its discretion, for reasons to include, but not restricted to, the following: if the buyer selection and screening process was not strictly adhered to, or if the buying household is found not to meet the guidelines of qualification, as specified in the guidelines.”

Program Eligibility 

To qualify for this equal opportunity program, a household’s gross annual income must fall within the low- to moderate-income limits for Yolo County and may not exceed 120% of the Area Median Income (AMI). Income calculations include wages and salaries (including bonuses), public assistance, benefits and pensions, child support, and cash income.

Buyers must also demonstrate that monthly housing costs for the affordable unit— including mortgage principal and interest, taxes, insurance, assessments, and homeowner fees—do not exceed thirty-five (35) percent of gross monthly income, adjusted for household size (Davis Municipal Code Section 18.05.020).

Current Income Limits

2026 HUD maximum AMI limits for Yolo County by Household Size (updated annually - spring)

Family Size

1

2

3

4

5

6

7

80% of AMI or Low Income

$72,600

$83,000

$93,350

$103,700

$112,000

$120,300

$128,600

100% of AMI or Median Income

$95,150

$108,700

$122,300

$135,900

$146,750

$157,650

$168,500

120% of AMI or Moderate Income

$114,150

$130,500

$146,800

$163,100

$176,150

$189,200

$202,200

Current Asset Limits 

In addition, gifts, stocks/bonds, equity in property, retirement accounts, life insurance, lump sums, and deeds are considered assets. Households with assets that exceed $250,000 are automatically disqualified from affordable housing ownership.

Program Guidelines - Please refresh your browser as guidelines may have recently been updated.

Deed Restrictions on Affordable Homes 

Guidelines for Buyers

Guidelines for Sellers

Frequently Asked Questions for Buyers and Sellers

Instructions for Buyers, Sellers & Realtors

Division of Fees and Commissions

Deed Restrictions 

To keep these homes affordable for future buyers, the City applies deed restrictions to each property. Key requirements include:

  • All owners must live in the home as their primary residence.
  • The maximum resale price is limited to a 3.75% annual appreciation rate, compounded from the original purchase date. Southfield Park is the sole exception, with a 5.5% annual appreciation cap.
  • When an owner decides to sell, the resale process is managed through a City program that matches affordable units with eligible buyers. A fee equal to 1% of the sales price is required at closing to cover program administration costs.

For the complete list of deed restrictions, please refer to Davis Municipal Code 18.04.

Affordable Home Ownership Waitlist

After reviewing the program guidelines, deed restrictions, and income/asset qualification information, you may request to join the Waitlist by emailing: affordablehousing@cityofdavis.org.

Waitlist Guidelines

Required Documents for Income & Asset Review

Review the list of documents needed for income and asset qualification.
PLEASE DO NOT SEND THESE DOCUMENTS UNLESS REQUESTED BY THE CITY. 

Resources for Homebuyers

Some of the documents on this webpage were provided by a third party and may not meet current accessibility standards (WCAG 2.1 AA). If you need this information in an accessible format, please contact staff at affordablehousing@cityofdavis.org and we will provide it in a timely manner upon request.