Affordable / Workforce Housing Policy Adopted
The City of San Marcos recognizes the importance of encouraging the development of housing that is affordable for low and moderate income persons. In July 2014 the City Council adopted an Affordable / Workforce Housing Policy (PDF) that identifies housing concerns, goals, and strategies to implement the goals. A short slide presentation about the policy can be reviewed here.
Income Limits Established for 2016
HUD has released the income limits that are used to determine income eligibility for the CDBG-funded First Time Homebuyer Program. The 2016 Income Limits (PDF) became effective March 28, 2016 and will remain in effect until the 2017 Limits are published by HUD. The CDBG program considers a person or family to have a low-to-moderate income if the annual gross income from all sources for all adults in the household does not exceed 80% of the area median income.
2017 First-Time Homebuyer Program
The City of San Marcos offers up to $7,000 in down-payment and closing cost assistance to eligible homebuyers in the form of a 0-interest, 5-year forgivable loan. The program can pay 50% of the down payment required for the primary mortgage and up to 100% of the routine closing costs and pre-paid items such as taxes and insurance.
Applicants must meet the program definition of a first-time homebuyer and must have a total gross (before taxes) household income that does not exceed 80% of the median family income as adjusted for family size (See Income Limits above). Other applicant eligibility criteria is detailed in the Policies and Procedures Manual.
The property to be acquired must be located inside the city limits, must pass an Housing Quality Standards inspection, and must be a single-family home, which can include townhouses and condominiums.
For more information please refer to the following brochure and application packet, email Dalinda Newby, or call her at 512-393-8224.
- 2016 First Time Homebuyer Application Form (PDF)
- First Time Homebuyer Policies and Procedures (PDF)
- Protecting Your Family From Lead (PDF)
- Spanish Version - Protecting Your Family From Lead (PDF)
- Shopping for Your Home (PDF)
Residency Incentive Loan Programs
The City of San Marcos has developed several homebuyer incentives to encourage qualified homebuyers to Live Where they Work! For more information about any of the homebuyer incentives, email Dalinda Newby or reach her by phone at 512-393-8224.
City Employee Residency Incentive
The City offers a residency incentive for qualified full-time employees wishing to purchase a home in San Marcos. The incentive provides a 1-time $5,000 loan to help pay closing costs and down payment costs in the form of a 5 year, 0-interest forgivable loan. Review the City Employee Residency Incentive Program Policy (PDF) for more information.
The application process is simple:
- Download the Application Form (PDF).
- When your offer has been accepted on a new or existing single-family home inside the City limits, apply for a loan with the lender of your choice.
- After the lender gives you a Good Faith Estimate, turn in your application, plus a copy of the Good Faith Estimate, Dalinda Newby in the Planning and Development Services Department.
- Once eligibility has been verified, an approval letter is issued.
- The City's loan will close concurrently with the primary loan - the City's funds are paid directly to the Title Company and are used to assist with down payment and closing cost expenses.
Texas State Professors
The City of San Marcos in partnership with Texas State University offers a residency incentive to Texas State professors who have not owned a home in San Marcos during the past three years. This program provides a $5,000 zero-interest, 5-year forgivable loan to assist with closing costs and down payment assistance. There is a five-year eligibility period during which the professor must continue to occupy the home as his or her primary residence and must remain employed in an eligible position.
Provided all terms of the loan are met, no monthly repayments are required and the loan balance will be reduced by 20% on the annual anniversary date of the loan closing. At the successful completion of the 5-year eligibility period, the loan balance will have been reduced to zero and a lien release is filed.
Policies & Application
- Texas State Professor Residency Incentive Application (PDF)
- Texas State Professor Residency Incentive Policies (PDF)
Housing Rehabilitation Program
The City of San Marcos supports the rehabilitation of owner-occupied single-family housing through its Community Development Block Grant (CDBG) Program by providing funds to Southside Community Center for their summer camp rehab program. Eligibility requirements include
- the house must be located inside the City of San Marcos
- the property taxes must be current
- the owner of the house must live in the house
- the family must meet established income limits
City Conservation Programs
The City of San Marcos has a variety of programs designed to promote energy efficiency and water conservation through its Go Green San Marcos program.
Finding Housing in San Marcos
Housing in San Marcos comes in many forms - single family housing, multi-family rental units, public housing, senior-only housing, student housing - to name a few. The following links may be helpful for those seeking housing:
Habitat for Humanity San Marcos Area
Habitat for Humanity San Marcos is part of an international non-profit housing ministry that builds decent, affordable houses for eligible applicants. Applications for their program can be found on the Habitat for Humanity website or by calling 512-754-8142. Qualified applicants must meet income requirements, currently live in San Marcos or have children who are attending a San Marcos CISD school, and have good credit.
The selected homebuyer and other volunteers work together with construction professionals to build energy efficient 3-bedroom, 2 bath homes. Habitat houses are sold to partner families at no profit and are financed with affordable loans. The homeowners' monthly mortgage payments are used to fund still more Habitat houses.
Public housing and the Section 8 Voucher Program are managed by the San Marcos Public Housing Authority, located at:
1201 Thorpe Lane
San Marcos, TX 78666