Question 1

Who can apply to participate in Foundations for the Future?

Accepted Answer

DC residents that are employed but finding the dream of homeownership just out of reach who are committed to building long-term financial resilience and generational wealth in Washington DC. Participants must be first-time homebuyers purchasing their primary residence. We take income into consideration when choosing program participants and are targeting employed individuals that are asset limited and income constrained. Participants must be below 80% of the Washington DC median family income to qualify.

Question 2

Can you talk more about the DC residency requirement?

Accepted Answer

We define DC resident as any current resident of DC, plus anyone who lived in DC public housing in the last 7 years but currently lives in MD or VA. Public housing is defined as government-subsidized housing owned and managed by local government agencies to provide affordable rentals for low-income individuals, seniors, and people with disabilities.

Question 3

I have received funding or services from birdSEED, Yachad, DCALF, or Tzedek DC in the past. Am I automatically enrolled or eligible for the new benefits under the Foundations for the Future project?

Accepted Answer

No. Receiving past assistance from any of our collaborative organizations does not automatically make you eligible or enroll you in the Foundations for the Future project. This project operates as a completely separate, standalone demonstration initiative with its own unique application, selection criteria, and programmatic tracking. To clear up any confusion regarding how the project functions, please note the following guidelines:Application Required: You must apply directly to the Foundations for the Future project and be officially accepted into an upcoming cohort. Participants cannot own a home already.Sequential Process: Project benefits are structured as a step-by-step pathway. For example, you cannot sign up directly or separately for Step Three (Estate Planning) or Step Four (the $5,000 Emergency Fund).Earned Benefits: The $5,000 emergency fund is an integrated, sequential milestone. It is only awarded to participants who have been accepted into the FFF project, completed the financial counseling (Step One), finalized their home purchase or title preservation (Step Two), and completed their legal estate planning (Step Three).

Question 4

What is the definition of first-time homebuyer?

Accepted Answer

For this project, we are looking for participants who have never purchased a home. A first-time homebuyer is defined strictly as an individual who has never, at any point in their lifetime, held an ownership interest in a residential property.

Question 5

Are there restrictions on the type of homes that can be purchased?

Accepted Answer

The home purchased must be the primary residence. The home may be a multi-family home, if the buyer will be living in the home.

Question 6

What are the five steps of the Foundations for the Future program?

Accepted Answer

Step 1: Wealth Advising: Complete Tzedek DC’s 8-week financial empowerment program in the fall of 2026. For more information about this program, please visit Tzedek DC’s webpage here: https://www.tzedekdc.org/empowerment.For those who are not able to attend the full 8-week course, Tzedek DC will also offer single sessions of the investment class, and a class about mortgage and HELOC loans. Approved applicants who attend the investment course and are eligible for an investment account will receive $1,500 to seed the investment account.Approved applicants are also eligible for one on one financial counseling for 1:1 individualized support to reach financial goals.Note: While participants are strongly encouraged to attend all classes, as community members gain critical financial skills from the classes. However, we also understand that life is complicated and there may times people cannot attend class; please know that no one will be penalized for missing a class.Step 2: Home Purchase: Receive a home inspection and a no-strings down payment assistance grant of up to $30,000 for a first-time home purchase.Step 3: Estate Planning: Work with DCALF legal experts to protect your new asset and plan your legacy.Step 4: Emergency Fund: Receive a $5,000 emergency fund once your estate planning is complete.Step 5: Healthy Home Remediation: Access support for early detection and repair of health related housing issues.

Question 7

Are grants from Foundations for the Future taxable?

Accepted Answer

Down payment assistance (DPA) grants generally do not count as taxable income if provided by government agencies or non-profit organizations for low-income buyers. However, DPA grants from banks, employers, or seller-funded programs are often considered taxable income, potentially resulting in a 1099-MISC form and increased tax liability. Foundations for the Future grants for home purchases will be awarded to title companies at closing for the benefit of the grantee by not for profit organization birdSEED, Inc.The $1,500 investment account and $5,000 emergency fund are typically not taxable income for the recipients. Because these funds are provided out of "detached and disinterested generosity" to meet a financial need rather than as payment for services, the IRS generally treats them as non-taxable gifts. While the grants themselves are not taxed, $5,000 in a bank account/$1,500 investment account could potentially impact the recipient's eligibility for asset-tested public benefits such as SSI or SNAP benefits.

Question 8

How are program participants chosen?

Accepted Answer

Foundations for the Future is a demonstration project and funding is limited. We will evaluate applications on a rolling basis beginning after our May 13, 2026 application opening.We will be looking for applicants who are first time homebuyers who currently live in Washington DC and will consider the amount of time an applicant has lived in the District. We will compare the income of applicants and give priority to applicants who are asset limited, income constrained and employed. Priority will be given to first generation homebuyers and applicants who are ready to purchase a home.The program is limited to 60 households and applications will be reviewed on a rolling basis. Preference will be given to applicants who are most prepared to close on a home or complete a qualifying home preservation transaction within a 120-day time frame. Interested participants are encouraged to apply as early as possible.

Question 9

When will the Financial Empowerment Program be offered, and will it be in-person or online?

Accepted Answer

Tzedek DC will offer an 8-week financial empowerment in the fall of 2026 to those applicants deemed eligible for the Foundations for the Future program. This 8-week program offers weekly 2-hour workshops on the following topics:Spending Plans, S.M.A.R.T. Goals and Action PlansUnderstanding Your PaycheckSavings, Interest, and Financial InstitutionsCredit Cards and Debit CardsInvestmentsCredit Scores and Credit ReportsScams and Know Your RightsFinancial Aid for Next Steps.
Most of these workshops will be held virtually via Zoom. For those who are not able to attend the full 8-week course, Tzedek DC will also offer in person single sessions of the investment class, and a class about mortgage and HELOC loans. Approved applicants are also eligible for one on one financial counseling and clients generally meet with financial counselors virtually.

Question 10

What is the $1,500 investment account?

Accepted Answer

Program participants will receive $1,500 that will be deposited in a no-fee investment account at Fidelity. This step is part of Tzedek DC’s 8-week Financial Empowerment Program. Participants must attend the workshop on investing in order to receive the $1,500 seeded investment account. Tzedek DC will also offer single workshops of the investment class for participations who cannot attend the full 8-week course.During the investment workshop, participants will set-up an individual Fidelity Go investment account, with support from Tzedek DC staff. Fidelity Go has no minimum to open the investment account and does not include any account fees for all accounts with a balance below $25,000.After funding the account with the initial $1,500 seed funding, the participants are in complete control of how they want to use their account. There is no requirement for how long participants need to keep the funds in their account. A participant has the right to take out some or all of the funds whenever they choose. That said, our hope and strong recommendation is that participants as they continue to remain employed will keep the funds in and add their own funds to the account, if possible, to build long-term wealth and to work towards future financial goals. This account can be grown into a retirement account over time.

Question 11

Where can I purchase a home through Foundations for the Future?

Accepted Answer

Participants in our program are eligible for no-strings down payment assistance grants of up to $30,000 for a home purchase in the District of Columbia. Our grants cannot be used for purchases outside of Washington DC.

Question 12

Tell me about the home inspections.

Accepted Answer

A home inspection is always part of the home purchasing process. The inspection is done by a licensed home inspector. The inspector can be recommended by your realtor, you can choose your own inspector, or the Foundations for the Future program can provide you with the names of inspectors. Home buyers pay for their own home inspections. Should you choose your own inspector or work with someone your realtor recommends, Yachad may join the inspection to ensure that there is a comprehensive review of the home.Should the home fail the inspection, Yachad may be able to determine the scope of work needed to see that the house is repaired. In some cases the seller will do the work.

Question 13

Why should I do an estate plan?

Accepted Answer

Everyone deserves the chance to plan for the future and decide what they want to leave behind. Estate planning is not often talked about in many families, but it is an important way to make sure a person is cared for with dignity during their lifetime and that their wishes are followed after they pass away. It also helps people pass on their home and personal belongings to loved ones and future generations.At DC Affordable Law Firm (DCALF), estate planning is described as “health and wealth planning.” DCALF believes these tools should be available to all people and families, no matter how much they own. Estate planning can include legal documents that help pass a home to future generations, as well as important documents like wills and powers of attorney.Through the Foundations for the Future program, comprehensive estate planning services are provided at no cost to individuals who become homeowners through Foundations for the Future.These services are available to program participants who purchase their first home in DC, and to heirs who become first-time homeowners by inheriting a home in DC through Foundations for the Future. After securing their home, Foundations for the Future program participants become clients of DCALF and work one-on-one with a DCALF attorney to create a free, personalized “health and wealth” estate plan.DCALF’s estate planning services are available only to DC residents. To learn more about estate planning, please visit: https://www.dcaffordablelaw.org/probate-and-estate-planning

Question 14

After closing on a Foundations for the Future home, how do I complete estate planning?

Accepted Answer

After becoming a Foundations for the Future homeowner and closing on a home, participants are then eligible to engage in free, comprehensive estate planning through DC Affordable Law Firm. Participants will become clients of DC Affordable Law Firm and enter into an attorney-client relationship with DC Affordable Law Firm and be assigned to work with an attorney or attorneys from DC Affordable Law Firm to engage in the estate planning process.New homeowners are welcome to pursue estate planning legal representation through an attorney or organization other than DC Affordable Law Firm, but Foundations for the Future will not pay for, reimburse, or otherwise cover the cost of estate planning assistance delivered by an attorney, law firm, or legal services group other than DC Affordable Law Firm. Only estate planning assistance from DC Affordable Law Firm is included as an offering for Foundations for the Future program participants.To learn more about estate planning at DC Affordable Law Firm, please visit: https://www.dcaffordablelaw.org/probate-and-estate-planning.

Question 15

What is the $5,000 emergency fund?

Accepted Answer

For homeowners, the standard rule of thumb is to save 3 to 6 months of essential living expenses, with many experts advising to aim for the higher end (6+ months) due to maintenance costs. A common formula is to set aside 1% to 2% of your home's purchase price annually for maintenance and repairs, keeping this money in a high-yield savings account or money market account.When program participants who purchase their home in Washington DC and complete their estate plans, they are eligible to set up an account for emergencies. Participants will work with birdSEED and our financial partner to set up the account, and the account will be funded with $5,000. This account will be in the homebuyer’s name and funds are to be used at the discretion of the homeowner. Our hope is that the homeowner will continue adding to the account to fund preventative maintenance and other costs of homeownership that are not a factor in renting.

Question 16

Who organized the Foundations for the Future program?

Accepted Answer

Four DC based not for profit organizations are collaborating on the Foundations for the Future demonstration project as a part of the Greater Washington Community Foundation’s Health Equity Fund: birdSEED, DC Affordable Law Firm (DCALF), Tzedek DC and Yachad.

Question 17

What is the Healthy Home Repair Fund?

Accepted Answer

As a part of the Foundations for the Future project there will be funds allocated for properties purchased by our grantees that might need health and safety repairs that affect the habitability of the home, not cosmetic renovations. We will identify potential issues in home inspections and Yachad will work with buyers on repairs. Homes that are eligible for repairs include single family homes and rowhouses. Remediation measures for condominiums and co-op units will be decided on a case-by-case basis.After the home purchase, homebuyers are eligible for health and safety repairs that become apparent during the first two years of homeownership.

Question 18

Is there a timeline as to home long I can take to purchase a home after receiving a provisional grant?

Accepted Answer

As a part of the demonstration project we have deadlines for making home purchases. Purchases will need to be made within 120 days of confirmation that we are holding the grant funds for your closing.

Question 19

Can I get a grant or become a Foundations for the Future program participant after I have closed on a home?

Accepted Answer

Grants are awarded through the title company at closing and we can not award grants if a participant already closed on a home.

Question 20

Can I use funds for the earnest money deposit?

Accepted Answer

No. Earnest money deposits are due when the contract is signed. The funds from the Foundations for the Future are sent to the title company at closing.

Question 21

I read there are some grants for heirs with tangled titles, can you explain this?

Accepted Answer

Foundations for the Future offers grants of up to $30,000 to certain DCALF probate clients who meet eligibility requirements. To qualify, the client must be working with DC Affordable Law Firm (DCALF) to clear title to a home in the District of Columbia through probate or estate administration.

Question 22

What can a Foundations for the Future grant for heirs be used for?

Accepted Answer

The grant can be used to pay off debts tied to the home in an estate. This may include missed mortgage payments, unpaid property taxes, and other property-related debts that block inheritance.These funds remove the main financial barriers that prevent heirs from inheriting a home. Once these debts are resolved, the heir can move forward in the legal process and become the owner and occupant of the home.

Question 23

Can any heir apply for a Foundations for the Future grant?

Accepted Answer

No. Only clients who are actively working with DCALF to clear title are eligible to apply for Foundations for the Future funding. A member of DCALF’s legal team will work with eligible clients to complete their Foundations for the Future application.

Question 24

How do I apply for participation in Foundations for the Future?

Accepted Answer

We accept applications online on a rolling basis. Space is limited. Complete the application here.Have a question not addressed in FAQ’s, email leslie@birdseed.org with your questions.

Frequent Asked Questions