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Home Ownership

Housing and homeownership opportunities involving state government include offering incentives aimed at the development side and at the individual financing side of the housing market. On the development side, activities such as new housing construction (both single family and multi-family), and housing rehabilitation are supported. On the individual financing side programs exist to offer assistance toward down payment and closing costs.

Like many community development initiatives, a variety of entities exist that impact the housing market. Each may work in a niche area to serve a particular customer base. There are both private developers and non-profit developers. City governments and non-profit organizations often enter the market to support a housing gap that exists within their community.

Primarily, the issue of homeownership and housing development for the Division of Business and Community Services rests in focusing on assisting low and moderate-income persons. The subsidies that are offered provide a variety of approaches to the issue by allowing access and participation by local governments, private developers, and homeowners toward meeting the needs of low and moderate-income in meeting their housing needs. These subsidies may be aimed at particular persons or families meeting certain income criteria or at particular areas of the state that meet demographic criteria.

Missouri has a variety of public and not for profit entities that support housing. These include:

The Business and Community Services Division supports new construction and rehabilitation efforts with programs such as the Community Development Block Grant Program, the Neighborhood Assistance Program, the Neighborhood Preservation Program and the Historic Preservation Program.

Best Practices

  • Boonville: 10 single-family homes are being built in a subdivision, next to their Headstart Daycare, by the nonprofit community action agency, the Central Missouri Counties Human Development Corporation. The homes are 3-bedroom and 1,000 square feet, with a carport. They will sell to LMI families and the monthly PITI payment cannot exceed 29% of the LMI family's gross household income. LISC funds were used for predevelopment and infrastructure costs, a bank is providing the home construction loan financing, Rural Development and MHDC are providing mortgage loan products, and CDBG funds are being used to pay up to 50% downpayment assistance and up to 100% closing costs.
  • East Prairie: CDBG and Workforce Development funds are being used by the nonprofit, Susanna Wesley for job training and materials to construct 3 new homes to be sold to LMI families. CDBG funds were also used to acquire the lots for the three homes. Proceeds from the sale of the homes will be used to build more homes to be sold to LMI families. Rural Development is providing 502 Homeownership loans/mortages.
  • Mexico: The city purchased lots with CDBG funds and donated them to their local Habitat for Humanity to construct homes for LMI families.
  • Montgomery City: The nonprofit community action agency, North East Community Action Corporation (NECAC) will build single family homes for LMI families. The first 5 homes are being constructed under Rural Developments Self-Help housing program. Rural Development is providing the home construction funds with equity labor from the homeowners. CDBG and MHDC funds are being used to pay street, water, and sewer infrastructure costs. CDBG funds are also being used for downpayment assistance and closing costs. HUD Section 8 vouchers are being used to assist with the purchase of some of the homes.
  • Sikeston: The nonprofit, Business Research Institute (BRI) is using CDBG funds to provide LMI families with downpayment assistance and closing costs to purchase existing and new homes in the Pin Oak and Sunset subdivisions of the city. Rural Development is providing 502 mortgage loans for LMI homebuyers.

Business and Community Services
301 W. High Street, Rooms 720, 770, Jefferson City, Missouri 65102
Tel: 800-523-1434    Fax: 573-751-7384   Email: [email protected]

Missouri Association of Community Action

Missouri Association of Counties

Missouri Chamber of Commerce

Missouri Community Betterment

Missouri Development Finance Board

Missouri Economic Development Council

Missouri Housing Development Commission

Missouri Main Street Connection

Missouri Municipal League

State Emergency Management Association

US Census Bureau

US Department of Agriculture

US Department of Housing and Urban Development