Contract for Deed Conversion Assistance Grants
Assistance Grants Details
Contract for Deed Conversion (CFDC) Assistance Grants support eligible nonprofits and units of local government in assisting eligible colonia households to convert their contracts for deeds to warranty deeds.
If an administrator assists a household with converting their CFDC without any TDHCA HOME funds, the administrator will receive a $3,500 Assistance Grant (Option 1) upon closing. Under Option 1, additional grant funds are available to eligible households seeking assistance in paying off CFD lot balances (up to $20,000) and rehabilitating their homes (up to an additional $20,000) in order to meet Texas Minimum Construction Standards after securing the warranty deed.
If an administrator assists a household with converting their CFDC and with making additional housing improvements with TDHCA HOME funds, the administrator will receive a $6,500 Assistance Grant (Option 2) upon closing and commencement of construction. All eligible households must reside in a colonia within 150 miles of the Texas-Mexico border and earn 60% or less of the applicable Area Median Family Income (AMFI).
Download the current Area Median Family Income Limits.
Administrators are expected to organize and supervise all conversion and construction activities, such as: identifying eligible households for a CFDC and, if desired, for the HOME Program; application intake and income qualification in accordance with applicable program guidelines; consultation and correspondence with attorneys, landowners, and other persons with interest in properties to be converted; document preparation for title clearing, closing and recordation; construction management, etc.
For additional information on CFDC Assistance Grants, please email the Housing Trust Fund Division at firstname.lastname@example.org or call (512) 936-7800.