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Household Size Income Limit Household Size Income Limit <br />One $32,550 Five $50,200 <br />Two $37,200 Six $53,900 <br />Three $41,850 Seven $57,600 <br />Four $46,450 Eight $61,350 <br />• NSP3 funds will be loaned to an intermediary to help acquire NSP3 eligible homes. <br />• Using other funds, the intermediary will rehabilitate these homes in accordance with <br />the City's rehabilitation standards (Attachment 2), market them, and sell them to <br />income qualified households. <br />• The maximum sales price will be the lesser of the aggregate cost to acquire, rehabilitate <br />and sell the property, or its fair market value as established by a City approved <br />appraiser. <br />• In consultation with the City, sales prices may. be adjusted to, reflect market conditions <br />and homebuyer qualifying requirements. <br />• The City will record an NSP3-funded silentsecond mortgage in the amount necessary to <br />accomplish the sale. <br />• Concurrently with the transfer of ownership'to the homebuyer, and in addition to the <br />trust deed, a regulatory agreement will be recorded to require its repayment should the <br />property be sold prior to completion of a 45 year period of affordability. <br />• Depending on need, homebuyer„eligibiWy and the availability of funds, the City may also <br />provide down payment assistance. loans using,federal HOME Program American Dream <br />Downpayment Initiative; (ADDI) funds. <br />• The City requires that homebuyers make downpayments equal to 3 percent of the <br />purchase price'out of their-or funds. Gift funds cannot be used to meet this <br />requirement., <br />• For households participatingin the-program, the City's required debt ratio is 30/40. <br />Should experience suggest that the ratio is not working, the City may re-evaluate and <br />adjust it. <br />• In some cases the intermediary may be unable to sell the homes at a price that enables <br />them to. recover eligible development costs (acquisition, rehabilitation, marketing, <br />developer fee). The City Will reimburse the intermediary for such costs. <br />• If within six months of marketing a home for sale, the intermediary has been unable to <br />identify an income qualified homebuyer with adequate cash to make the downpayment <br />required for a first mortgage, the intermediary will offer the home for sale under the <br />terms of a Lease to Own Program. <br />• Lease to Own Program guidelines will be established by the intermediary in consultation <br />with the City. <br />• The Lease to Own Program will be operated by the intermediary in consultation with the <br />City. <br />• The City has allocated $366,029 of NSP3 funds for this program, and has established a <br />performance measure of at least one unit acquired, rehabilitated and sold to an income <br />eligible household. The dollar amount is the minimum that must be allocated to this <br />program. If necessary to accomplish the goal, additional funds may be transferred from <br />the other program. <br />Page 4 <br />20A-41