AUBURN – Auburn will try new income guidelines on its program to help lower-income residents buy houses downtown.

The changes make the program fit more neatly with current property values, according to Gail Phoenix, city community development coordinator.

The program uses federal Housing and Urban Development money earmarked for affordable housing to help low-income people and encourage downtown redevelopment.

Buyers must also purchase a house in one of three Auburn neighborhoods – New Auburn, downtown or the residential area north of Union Street.

Each buyer can qualify for up to 10 different loan or grant programs. That includes a 7-percent standard mortgage through Coastal Enterprises Inc. and three city program loans. Buyers pay back the first interest-free, 20-year city loan and the other two are forgiven.

The program used both income and family size as criteria, but Phoenix said this hurt larger families. The City Council agreed to change the program this spring and drop the family size criteria.

“We found that even with our subsidies, most home buyers couldn’t afford to buy,” Phoenix said. Larger families with larger incomes could qualify, but didn’t end up needing the help.

Just using income makes more sense, she said.

“A house is a house,” she said. “Whether its a small family or a large family, they still have the same income and they pay the same mortgage.”

The filing deadline is Aug. 31, and Phoenix said she expects between 30 and 40 prospective homebuyers to apply. The city will select about 10 applicants, and Phoenix said she expects six to make it all the way through the process.