In its nine-year run, the Partnership’s Homeownership Program supported 83 participants with down payment assistance. As many know, the program was sunsetted in 2024, with the Live+Work College Park Program filling in its place. When residents first hear of this, a few questions naturally come to mind: if the program was such a success, why end it? What makes Live+Work different enough to produce more favorable results?

In this article, Senior Program & Operations Manager David Varnado explains how the Partnership turned a corner on stagnant participation.  

Naturally, university communities create high demand for rental properties, pressuring College Park’s already limited housing stock. While College Park hosts a staggering 31,000 residents and 41,000 students, the city has just 1,200 single family homes within its six-mile border. These conditions prompted the creation of The  Homeownership Program, designed encourage employees of the University of Maryland and the City of College Park to live where they worked.

When the Homeownership Program launched in 2015, the median home price in College Park was about $260,000, and historically low interest rates made homeownership in College Park attainable. In its nine-year tenure, the program helped 83 households purchase homes, welcoming over 300 new residents to College Park. 

In the early 2020s, the housing market shifted dramatically. The median home price in College Park ballooned to approximately $420,000, and interest rates more than doubled, exceeding 6%.  While the number of available rental units increased, which partially relieved housing woes, the single-family housing stock remained stagnant, primarily due to limited land area available for development. This adversarial housing climate disincentivized current homeowners to move; and made entry for first-time homebuyers increasingly difficult. 

Further, Homeownership Program eligibility was limited to full-time, benefits eligible employees of The University of Maryland and The City of College Park, which many prospective applicants expressed was prohibitive. These factors led to a significant decline in the Homeownership Program participation. After two years of deflated participation, it was clear the program was no longer serving homebuyers in the way it intended to – it was time to evolve. 

Recognizing the need to adapt to evolving market conditions, we made the decision to sunset the Homeownership Program and launch the Live+Work College Park Program in its place. 

Launched in the spring of 2024, Live+Work College Park addresses the challenges of the contemporary housing market. Open to individuals employed full-time within College Park city limits and the Discovery District, the program aims to reduce commute times and strengthen ties to the community.  Additionally, we introduced refined eligibility criteria to that better suited to today’s homebuyer purchase patterns. 

In its first year, the program was a success. Live+Work supported 12 home purchases, facilitating $3.5 million in home sales — a 300% increase from 2023. While a dozen transactions may seem modest, the cumulative value of our housing programs is clear. To date, 96 of College Park’s 1200 homes, about 8% used a Partnership downpayment assistance program during their home purchase. Each household represents new neighbors who now live and work in College Park, creating a more resilient and connected community.   

Live+Work College Park’s success is a testament to the Partnership’s ability to seek dynamic solutions in an ever-evolving housing market. As the region braces for changes in the federal government, we are exploring new partnerships with local employers, welcoming even more employees into our eligibility pool (Discovery District employees included!). 

To learn more about The Live+Work College Park Program, visit our webpage or sign up for an upcoming information session.