Who is eligible? For-profit and not-for-profit affordable housing development organizations. Must be incorporated as such.
Types of properties: New construction and rehabilitation of existing housing.
Amount of assistance to homebuyer: Negotiable, depending upon the gap in financing between the proposed project cost and the ability of a low to moderate income homebuyer to afford to purchase the home.
Qualifying homebuyers: Homebuyers must have verifiable incomes below the income limits, with total debt of not more than 45% of gross income and housing costs not more than 35% of gross income.
- Application submission.
- Request for assistance including proposed location of homes to be addressed.
- Statement of proposed sources and uses of financing.
- Breakdown of proposed construction cost for a typical home.
- Articles of Incorporation showing organization has one of its purposes as affordable housing development.
- City reviews application and staff consults with developer for a proposed subsidy amount. For rehab projects, this will include a checklist indicating items that must be addressed to bring properties up to the City’s property maintenance code and address hazardous materials on the site, including lead-based paint.
- Staff prepares agreement and submits to Council for approval.
- After approval of the agreement by the City Council, the organization takes agreement to bank to obtain construction financing and completes the project with bank funding.
- After obtaining a Certificate of Occupancy from the City’s Community Development Department, the organization sells the house.
- The City will write a check to the homebuyer and present it at the closing for the home in the amount indicated in the agreement between the City and developer.
Terms of loan to homebuyer: Two loans, including one for $5,000 repayable upon sale. Remainder, generally not to exceed $30,000, is forgivable over 10 years.