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City of Phoenix Section 32 Public Housing Homeownership Program

City of Phoenix Housing Department · Phoenix, Arizona

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Assistance

20%

Of the purchase price, as the program sets it

Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Forgivable

Forgiven after 10 years

What is City of Phoenix Section 32 Public Housing Homeownership Program?

City of Phoenix Section 32 Public Housing Homeownership Program is a forgivable loan for homebuyers in Phoenix, Arizona, administered by City of Phoenix Housing Department.

  • The Section 32 Public Housing Homeownership Program lets eligible first-time buyers at or below 80% AMI purchase former City of Phoenix public housing units at a 20% discount off appraised value, structured as a 10-year, zero-interest, no-payment City Investment Loan that forgives at 20%/year beginning year 6. Buyers must qualify for a conventional first mortgage and complete homeownership, financial fitness, and maintenance classes.
  • 20% discount off appraised value via City Investment Loan.
  • Zero-interest, no-payment loan for 10 years.
  • Forgiveness from year 6 (20%/year).
  • Possible additional DPA/closing-cost grants.
  • One-year home warranty.
  • Counseling support.

How much assistance does it provide?

City of Phoenix Section 32 Public Housing Homeownership Program provides assistance worth 20% of the purchase price, as set by the program.

  • Buyer contribution: Minimum 3% of purchase price down, at least 1% from buyer's own funds.
  • Amounts are the program's published maximums, not an offer — City of Phoenix Housing Department determines any individual award.

Do you have to pay it back?

City of Phoenix Section 32 Public Housing Homeownership Program is forgiven after 10 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Sale, change in primary occupancy, or failure to maintain principal residence during the 10-year City Investment Loan term.
  • The assistance is recorded in Second position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Phoenix Section 32 Public Housing Homeownership Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — the program sets its own definition
  • The home is occupied as a primary residence
  • On credit: 640+; below 640 may qualify after completing Financial Fitness classes
  • A completed homebuyer education course, through City of Phoenix Housing Dept certified counselors; HUD-approved housing counseling agencies
  • Citizenship or immigration status: U.S. citizen or eligible non-citizen (HUD public housing rules apply)
  • DRAFT (dpa-gap-finder 2026-06-12): pending review. Applicant must be a public housing resident OR on the public housing waiting list. Favorable landlord recommendation and timely payment history required. HQS inspection required. Financial fitness classes if credit < 640. 75% of income must be earned. Distinct from Home in Five Advantage and CPLC Open Doors.

The program excludes

  • Manufactured homes
  • New construction
  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

City of Phoenix Section 32 Public Housing Homeownership Program limits household income to 80% of the area median income, which varies by county and household size.

  • Household income <= 80% AMI by household size; at least 75% of monthly income must be earned income.
  • The limit applies to total household income, not only the borrower&rsquo;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?

City of Phoenix Section 32 Public Housing Homeownership Program can be used for Single Family.

  • New construction is not eligible.
  • Manufactured homes are not eligible.

Where does it apply?

City of Phoenix Section 32 Public Housing Homeownership Program serves buyers purchasing in Phoenix, Arizona.

How do you apply?

Applications for City of Phoenix Section 32 Public Housing Homeownership Program go through City of Phoenix Housing Department, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through City of Phoenix Housing Dept certified counselors; HUD-approved housing counseling agencies.

  2. Contact City of Phoenix Housing Department to reserve funds

    Funds are reserved with the provider and are subject to availability.

  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.

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