The city of Orlando seeks

contractors to build singlefamily homes in Parramore in a $1.8 million effort to add affordable housing in the area.

Orlando is seeking contractors to build single-family homes on public land in Parramore, a $1.8 million effort to add affordable housing to the long-blighted downtown neighborhood west of Interstate 4.

The city plans to sell the homes to low-income families by offering interest-free loans for down payments that the buyers may never have to repay.

“When we start talking about pride, true community pride, I do think it comes from home ownership,” said Commissioner Regina Hill, who represents Parramore and other westside neighborhoods.

The city hopes to build singlefamily homes on as many as 10 city-owned lots, including two near the new K-8 school called the Academic Center for Excellence at North Parramore Avenue and West Amelia Street and eight just south of State Road 408.

Orlando issued a request for proposals on Tuesday seeking builders for the homes, which would have a minimum of three bedrooms and two bathrooms, with at least 1,300 square feet of living space.

The city plans to pay the full cost to build the homes from the budget of its Downtown Community Redevelopment Agency.

The initiative comes as Mayor Buddy Dyer’s administration has renewed its focus on renewal in Parramore, which has for decades seen its population dwindle as it struggled with crime and drugs.

“There’s not a higher priority right now than getting this done in Parramore,” said Thomas Chatmon, executive director for the CRA as well as the city’s Downtown Development Board.

The city has yet to receive any construction bids or determine the cost of each home, so the sale price has not yet been determined, officials said.

To help low-income buyers afford the down payment, nointerest loans, ranging from $10,000 to $20,000, will be made available. The loans will be forgivable, so if the buyer stays put for five or 10 years, depending on the terms, they never have to repay.

But the loan must be repaid if the buyer chooses to sell early, which Chatmon said is meant to discourage flipping and “ensure that the homes stay within the ownership of families that need them.”

The new program represents an unusual approach by the city, which in the past has typically focused on larger communities of affordable rental housing, rather than single homes meant to be sold. Over the years, those larger projects have often stalled.

A plan to replace Parramore Village, a segregation-era community torn down in 2003, fell apart during the housing crisis. The city recently approved a new project for that site, Parramore Oaks, which already finds itself tangled in a legal fight.

Habitat for Humanity was active in building houses in Parramore until about a decade ago, but has struggled to find the right opportunities there since shifting focus to townhomes, said Jennifer Gallagher, Habitat for Humanity of Greater Orlando’s senior director.

Chatmon said the city hopes that leading the way by building homes in Parramore will inspire private developers to take the plunge.

“We’re leading the way by taking the risk and demonstrating that it can be done,” he said.