Community Homebuyer Assistance Program (CHAP)

What is Community Homebuyer Assistance Program (CHAP)?

Community Homebuyer Assistance Program (CHAP) is a deferred second loan for homebuyers in Flagstaff, Arizona.

• The Community Homebuyer Assistance Program (CHAP) is the City of Flagstaff's flagship locally funded homebuyer assistance program, financed by the City's Housing Bond and administered through Housing Solutions of Northern Arizona (HSNA). CHAP supports first-time / first-time-equivalent homebuyers purchasing within Flagstaff city limits by reducing upfront costs and expanding long-term affordability. CHAP offers two pathways: Option 1 - Home Purchase Assistance: up to $50,000 in 10:1 matching deferred-payment, 0%-interest second-lien funds for households up to 150% AMI ($5,000 buyer contribution required); the loan is repaid through an equity-share formula on sale, transfer, cash-out refinance, or loss of owner-occupancy. Option 2 - Permanent Affordability Pilot: deeper assistance equal to 30% of purchase price (no repayment) for households up to 125% AMI on homes priced at or below $600,000, in exchange for a 99-year renewable ground lease or deed restriction; on resale, sellers retain up to 25% of market appreciation while the remainder stays in the home as public investment. Applicants must have lived or worked in the Flagstaff Metropolitan Planning Organization (FMPO) boundary for at least 12 consecutive months and not have owned a Flagstaff home in the past three years.
• Up to $50,000 per household in 10:1 matching down payment and closing cost assistance ($5,000 buyer contribution unlocks $50,000 in CHAP assistance). Structured as a 0% interest deferred-payment second lien with no monthly payments while owner-occupied.
• repaid via equity-share formula at sale, transfer, cash-out refinance, or loss of owner-occupancy. A separate Permanent Affordability Pilot (Option 2) offers 30% of purchase price with no repayment in exchange for a 99-year ground lease/deed restriction limiting resale to 25% of market appreciation.
• Funding comes from Local Government and Housing Bond.

Do you have to pay it back?

Community Homebuyer Assistance Program (CHAP) is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Option 1: Sale, transfer, cash-out refinance, or loss of owner-occupancy (repayment via equity-share formula, no forgiveness). Option 2: Resale governed by deed restriction / ground lease and seller retains up to 25% of appreciation.
• The assistance is recorded in Subordinate (typically 2nd lien) position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Community Homebuyer Assistance Program (CHAP) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Community Homebuyer Assistance Program (CHAP) limits household income to 150% of the area median income, which varies by county and household size.

• Option 1 (Home Purchase Assistance): household gross income at or below 150% of Coconino County AMI per City's annual AMI table. Option 2 (Permanent Affordability Pilot): at or below 125% AMI. The program's source-data income range of $92,000-$141,875 corresponds to typical 80%-150% AMI brackets at varying household sizes for Coconino County (FY2025 HUD AMI 4-person 100% = ~$94,500; 150% 4-person = ~$141,750).
• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Community Homebuyer Assistance Program (CHAP) caps the purchase price as follows: Option 1: no published cap. Option 2 (Permanent Affordability Pilot): purchase price must be at or below $600,000.

• Eligible property types include Single-Family, Townhome, and Condo.
• New construction is eligible.

Where does it apply?

Community Homebuyer Assistance Program (CHAP) serves buyers purchasing in Flagstaff, Arizona.

• The program targets specific areas: Properties must be purchased within the City of Flagstaff city limits; applicant residency/employment tie-back to Flagstaff Metropolitan Planning Organization (FMPO) boundary.

How do you apply?

Applications for Community Homebuyer Assistance Program (CHAP) go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Housing Solutions of Northern Arizona.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Open enrollment via Housing Solutions of Northern Arizona; complete the HSNA pre-purchase application (English/Spanish PDF) and submit by email (angelak@housingnaz.org), mail (PO Box 30134, Flagstaff, AZ 86003), or in person; HSNA schedules one-on-one counseling and reserves CHAP funds after a signed purchase contract., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.