LOTTERY APPLICATION PACKAGE PHASE ONE

Transcription

1 LOTTERY APPLICATION PACKAGE PHASE ONE Application Deadline: 5:00 PM, Thursday, May 21, 2015 Submit to: Housing Assistance Corporation 460 West Main Street Hyannis, MA West Main St. Hyannis, MA fax:

2 Sachem s Path Surfside Road and South Shore Road Nantucket Massachusetts Lottery Telephone Line (508) x. 285 APPLICATION PACKAGE APPLICATIONS MUST BE RETURNED AND RECEIVED NO LATER THAN 5:00 PM, Thursday, May 21, 2015 To: Housing Assistance Corporation 460 West Main Street Hyannis, MA PLEASE RETURN COMPLETED AND SIGNED APPLICATION & DOCUMENTATION FORMS ONLY MAIL YOUR LOTTERY APPLICATION EARLY Lottery will be held within 30 to 45 days of application deadline date. YOU DO NOT HAVE TO BE PRESENT TO BE SELECTED Information Sessions will be held at Nantucket High School Saturday, March 28th at 1:00PM and Thursday, April 2nd at 5:30 PM 460 W est Main St. Hyannis, MA hac@haconcapecod.org fax:

3 TABLE OF CONTENTS General Information Page 1 Eligibility Pages 2-3 Application Process Pages 4-5 HUD Definition of a Person with a Disability Pages 6-7 Lottery Process Page 8 Summary of Deed Restrictions Pages 9-10 Checklist of Required Document Page 11 List of Lenders Page 12 Next Steps Page 13 Staff Roster and Contact Information Page 14 Scoring Sheet for Lottery Drawing Page 15 Lottery Application Pages 1-11

4 GENERAL INFORMATION Sachem s Path is a development of 36 single family homes located at the intersection of Surfside Road and South Shore Drive, Nantucket. Housing Assistance Corporation is developing this housing for the purpose of providing income eligible and mortgage ready households an opportunity to purchase their own home on Nantucket. Phase One will produce 15 homes. Other phases will be built and a lottery held at a later date. The purpose of this Application Package is to give you all the information you need in order to understand how to complete the Lottery Application. Although the process is complicated and requires focus and work, if you read the information, follow instructions and ask questions when you don t understand something, we will be better able to process your Lottery Application to make you eligible to participate in the actually lottery drawing. All homes being built at Sachem s Path are considered to be affordable. Income eligibility has been designed to include three income levels. Income levels are determined using Area Median Income (AMI) numbers for Nantucket. The three income levels income are 80% and under of the AMI, between 81%- 100% of the AMI and 101%-150% of the AMI. These three categories are commonly referred to 80%, 100% and 150% of the AMI. The Information Package will show you how to identify which income level applies to your household. In order to ensure that houses are affordable for these three income levels, the purchase prices are determined by a methodology which is driven by the income levels. When purchase prices are determined by income, this is basis of the definition of affordable housing. Housing prices are not determined by the real estate market. Phase One The following table shows the purchase prices and the number of one, two and three bedroom homes that will be built for each income level during Phase One. 1 BR House 2 BR House 3 BR House 80% AMI $224,000 $265,000 $306, % AMI $257,000 $304,000 $353, % AMI $430,000 $483,000 $515,000 1

5 ELIGIBILITY Who is eligible to participate in the lottery? A first-time homebuyer(for 80% and 100%), as defined below, who is income and asset eligible and can be pre-approved for a mortgage that complies with program standards for new mortgage loans (see page 6 for mortgage loans program standards) is eligible to apply for the lottery. Individuals who have a financial interest in the development and their families are not eligible for this lottery. Do I qualify as a first-time homebuyer?(for 80% and 100%) Applicants are considered first time homebuyer(s) if: the household shall not have owned a home within three years preceding the application, with the exception of: a. displaced homemakers, where the displaced homemaker (an adult who has not worked full-time, full-year in the labor force for a number of years but has, during such years, worked primarily without remuneration to care for the home and family), while a homemaker, owned a home with his or her partner or resided in a home owned by the partner; b. single parents, where the individual owned a home with his or her partner or resided in a home owned by the partner and is a single parent (is unmarried or legally separated from a spouse and either has 1 or more children of whom the individual has custody or joint custody, or is pregnant); c. households that owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations; and d. households that owned a property that was not in compliance with State, local or model building codes and that cannot be brought into compliance for less than the cost of constructing a permanent structure. What is the Area Median Income and does it change depending on my family size? The Area Median Income (AMI) is established for Nantucket. In order to be income eligible, your anticipated annual gross income for all adult household members (current or anticipated) for the 12-month period following application must be at or below the income limits for Nantucket County as shown in the chart below. Household 1 Person 2 Person 3 Person 4 Person 5 Person size 80% of AMI $ 58,750 $ 67,150 $ 75,550 $ 83,900 $ 90, % of AMI $ 64,960 $ 74,240 $ 83,520 $ 92,800 $ 100, % of AMI $104,700 $119,700 $ 134,700 $ 149,550 $ 161,550 What is Annual Household Gross Income? Annual gross income means all amounts, all income from all sources, which go to or on behalf of all current or anticipated adult household members for the 12-month period following application. 2

6 What is the asset limit? For households whose income is under the 80% and the 100% AMI, the asset limit is$75,000. For households whose income is between 101% and 150% of AMI there is a $400,000 asset limit. Household assets divested within the past 2 years will be counted at their value prior to divestment. What is a household asset? Cash in savings accounts, checking accounts and safety deposit boxes, etc. Certificates of deposit, bonds, stocks, treasury bills, mutual funds and money market accounts. Revocable trusts. Equity in rental property or other capital accounts. Cash value of life insurance policies available to the applicant before death. Personal property held as an investment: Gems, jewelry, coin collections, or antique cars, etc. Personal jewelry is NOT considered an asset. Lump sum receipts or one-time receipts. (i.e. inheritance, capital gains, one-time lottery winnings, victim s restitution, settlements on insurance claims (including health and accident insurance, worker s compensation, and personal or property losses), and any other amounts that are not intended as periodic payments. A mortgage or deed of trust held by an applicant. IRA, 401(k), 403B. * Retirement and pension funds. (if employed) * *These will include only amounts the applicant can withdraw without retiring or terminating employment, minus any penalties or transaction fees. (You will be responsible to determine and verify how much of these funds are available to you as cash.) Household assets DO NOT include: Personal property. (i.e. clothing, furniture, cars, wedding ring and other jewelry that is not held as an investment, vehicles specially equipped for persons with disabilities) Term life insurance policies. (i.e. policies with no cash value) Equity in the cooperative unit in which the applicant lives. Assets that are part of an active business. Business DOES NOT include rental of properties that are held as investments unless such properties are the applicant s main source of income. Assets that are not effectively owned by the applicant. 3

7 APPLICATION PROCESS How do I apply for the lottery? You will need to submit a completed Lottery Application along with the supporting documentation and a pre-approval letter for a mortgage from a lender on their letterhead before the application deadline: 5:00PM, Thursday, May 21, For applicants whose household income is at or below 100% of AMI, the mortgage must comply with program standards for new mortgage loans. (see below) What are the program standards for new mortgage loans? The loan must be from a lending institution. Loans from private parties are not allowed. Fixed interest rate through the full term of the mortgage Interest rate that is no more than 2 percentage points above the current MassHousing Rate. This rate can be found at or call No more than 2 points Buyer down payment of at least 3%, half of which must come from the buyer. It is strongly recommended that buyers not pay more than 33% (but no more than 38%) of their monthly gross income for principal, interest, property taxes, hazard insurance, private mortgage insurance and homeowner association fees. What is a pre-approval letter? Lenders will issue a pre-approval letter after they have reviewed your credit score, credit report, income and expenses. The pre-approval must be on the lender s letterhead showing the dollar amount and include an authorized signature. How do I get a pre-approval letter? We have included a list of local lenders that are familiar with affordable housing guidelines and have special financing available for first-time homebuyers. Contact one of these lenders to tell them you are applying for the Sachems Path Lottery and need a pre-approval letter. You should also ask how long the process will take to ensure the letter will be available prior to the application deadline. You will need to give the following information to the loan originator for your pre-approval: The purchase price of the home. See the Lottery Application Nantucket property tax rate $3.76/$1000 Affordable Housing Covenant provided by HAC upon request Target date for completion of first house Winter 2016 Association fee: (per month) 80% & 100% 1BR $ BR $ BR $ % 1BR $ BR $ BR $ What documentation do I need to submit with my application? Documentation of your income, assets local preference, down payment funds and a pre-approval letter is required. See Checklist of Required Documentation. 4

8 Why should I declare that I am a minority? Nantucket County s minority population is 19.5% of the general population. Regulations require that 19.5% of the local preference candidates should be minority candidates. If we do not receive that percentage of minority local applicants, we will hold a pre-lottery of the minority non-local preference candidates to add to the local pool until we reach that percentage. If we do not receive sufficient number of minority candidates, the lottery proceeds with whatever number exists. How do I determine how many bedrooms my household will maximize? The following criteria are considered to determine if a household maximizes a unit: There is at least one occupant per bedroom. A husband and wife, or those in a similar living arrangement, shall be required to share a bedroom. HAC has the authority to increase the number of bedrooms required if there is a medical necessity for someone to have a separate bedroom, based on medical documentation. For example, a single person and a couple will both maximize a 1-bedroom house. A couple with 4 children and a single parent with 2 children will both maximize a three-bedroom house. Households that maximize the number of bedrooms have preference over those that do not. i.e. for a three bedroom home, a household that maximizes three bedrooms would have preference over a household that maximizes only two or one bedroom. Applicants must choose the bedroom size of the house they wish to purchase in their lottery application. What if I am having difficulty completing the application due to language proficiency or a disability? HAC will provide reasonable accommodation and/or language assistance if needed when completing this application. Persons will disabilities may ask for this application in large print type or other alternate formats. Persons with disabilities may ask for reasonable accommodation in rules, policies, practices, or services, or to request a reasonable modification in the housing, when such accommodations or modifications may be necessary to afford persons with disabilities an equal opportunity to use and enjoy the housing. Este documento é importante, por favor, tê-lo traduzido Este documento es importante, por favor, haz que se tradujo For assistance with a reasonable accommodation request, please contact Gael Kelleher at gkelleher@haconcapecod.org or , ext What if a member of my household is disabled? If one or more members of your household are disabled, according to the definitions of a person with a disability, your household will receive a Disability Preference. There is one accessible/sensory house being built during Phase one. All those applicants who meet the definition of disabled will receive a preference to participate in this drawing. 5

9 HUD Definition of a Person with A Disability Under Federal Civil Rights Laws [24 CFR Parts 8.3 and ] A person with a disability, as defined under federal civil rights laws, is any person who: Has a physical or mental impairment that substantially limits one or more of the major life activities of an individual, or Has a record of such impairment, or Is regarded as having such impairment The phrase "physical or mental impairment" includes: Any physiological disorder or condition, cosmetic or disfigurement, or anatomical loss affecting one or more of the following body systems: neurological; musculoskeletal; special sense organs; respiratory, including speech organs; cardiovascular; reproductive; digestive; genito-urinary; hemic and lymphatic; skin; and endocrine; or Any mental or psychological disorder, such as mental retardation, organic brain syndrome, emotional or mental illness, and specific learning disabilities. The term "physical or mental impairment" includes, but is not limited to: such diseases and conditions as orthopedic, visual, speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, mental retardation, emotional illness, drug addiction and alcoholism. "Major life activities" includes, but is not limited to, caring for oneself, performing manual tasks, walking, seeing, hearing, breathing, learning, and/or working. "Has a record of such impairment" means has a history of, or has been misclassified as having, a mental or physical impairment that substantially limits one or more major life activities. "Is regarded as having an impairment" is defined as having a physical or mental impairment that does not substantially limit one or more major life activities but is treated by a public entity as constituting such a limitation; has none of the impairments defined in this section but is treated by a public entity as having such an impairment; or has a physical or mental impairment that substantially limits one or more major life activities, only as a result of the attitudes of others toward that impairment. The definition of a person with disabilities does not include: Current illegal drug users 6

10 People whose alcohol use interferes with the rights of others Persons who objectively pose a direct threat or substantial risk of harm to others that cannot be controlled with a reasonable accommodation. The above definition of disability determines whether an applicant or participant is entitled to any of the protections of federal disability civil rights laws. Thus, a person who does not meet this disability is not entitled to a reasonable accommodation under federal civil rights and fair housing laws and regulations. 7

11 LOTTERY PROCESS What happens after I submit the complete Lottery Application? A complete Lottery Application includes the application form, required documentation and a pre-approval letter. HAC reviews this information to determine eligibility to participate in the lottery. If eligible, applicants will receive a lottery number through the mail prior to the date of the lottery. The number of applications received by HAC determines how long this process takes. Only eligible applicants will be entered into the Lottery. What is a Disability Preference? Applicants who meet the definition of disabled (pgs. 6 & 7) will receive a preference for the one accessible (mobility/sensory) home being built in Phase One. There will be a separate drawing for this house. What is Local Preference? Local Preference is defined as applicants who live or work on Nantucket or have children who attend Nantucket schools. Seventy percent of the homes may be set aside for applicants who have local preference. The first lottery drawing is for applicants eligible for Local Preference. What happens if I do not have a Local Preference? Non local preference applicants are placed in an Open Pool category with Local Preference applicants who have not already won in the Local Preference drawing. This represents the second lottery drawing. Eligible applicants are entered into all pools for which they qualify. What is an Alternate? All lottery numbers that belong in each pool will be drawn and they will be recorded in that order. Numbers chosen after the winning numbers have been drawn will be placed on an Alternate list. Applicants on this list are notified in the event a potential buyer is unable to complete the purchase. When will the lottery be held? Lottery will be held approximately days after Lottery Application deadline date. The timing of the lottery will depend on the number of applications received by Housing Assistance Corporation. All applications will need to be reviewed prior to the lottery. What happens after the lottery? 1. All winners will sign a contract to purchase the property and provide a deposit to go with it. Within 60 days of the completion of your home, you will need to obtain a loan commitment from your lender. 2. All winners will continue to work closely with their lender, providing any updated documentation the lender may require until the day of the closing. 3. All winners will stay vigilant with regard to their spending and credit. 4. Buyer will need to secure homeowner insurance and pay the first year s premium prior to closing. 5. Buyers will be required to complete an approved Pre-Purchase Workshop prior to closing. 8

12 SUMMARY OF 80% AND 100% AFFORDABLE HOUSING RESTRICTIONS The Massdocs Master Covenant for Affordable Housing is an affordable housing restriction for the Sachem s Path project that will be recorded at the Nantucket Registry of Deeds. This document specifies the resale, refinance and leasing provisions for the properties at Sachem s Path. The buyer of an affordable unit, selected by lottery will receive a mortgage that refers to the resale restrictions in the covenant, which will be recorded at the Nantucket Registry of Deeds at the time of purchase. This affordable unit will be sold at a substantially discounted price. The master Covenant and associated homebuyer mortgage govern the resale process for the unit and ensures that the unit remains affordable for future purchasers of the property. It is strongly recommended that purchasers of an affordable unit at Sachem s Path review the Master Covenant and unit mortgage with their attorney and lender. Below is a general description of the affordable rider: Principal Residence: The property must be the owner s principal residence Notice Requirement: If an owner wants to sell their affordable unit, they are required to notify the Town and the Commonwealth of Massachusetts. Maximum Resale Price: There is a limit on the resale price of the unit so that the unit will always be affordable. The formula for calculating the maximum resale price will be established at the time of purchase and is described in the Covenant. Refinancing: Affordable homes may not be refinanced without prior consent of the Commonwealth of Massachusetts. A copy of the 80% & 100% affordable housing restriction for this project is available for review at Housing Assistance, 460 West Main Street, Hyannis, MA To request a copy by mail, please call ext

13 SUMMARY OF 150% HOUSING DEED RESTRICTION The Town of Nantucket has provided land and funding to ensure that Sachem s Path will provide high quality housing for Nantucket s work force "in perpetuity. Just as the sale prices for the new homes are below what they could be sold for on the Open Market, it is of great importance that the homes remain equally affordable when sold in the future (commonly referred to as at resale ). As a buyer, it is important to understand that the value of a home at Sachem s Path will not increase in the same manner as an Open Market home (commonly referred to as unrestricted home). To accomplish affordability in perpetuity, a legal deed restriction will be placed on each lot which restricts the manner in which homes at Sachem s Path can be resold. The resale value of the home at any point in the future will be directly related to the Median Income for the County of Nantucket as determined annually by the Department of Housing and Urban Development. When selling, the Owner will work with Housing Nantucket (the 'Monitoring Agent' for Sachem s Path) to ensure that the proper protocols are followed. Housing Nantucket will be a valuable resource in helping educate Owners. Of equal importance, Housing Nantucket will act as steward on behalf of the Town to ensure that Sachem s Path remains a key town asset providing future families the same opportunity being provided to prospective Buyers today. 10

14 Checklist of Required Documents To be included with your lottery application BE SURE THAT YOU PROVIDE COPIES OF ALL DOCUMENTATION. ORIGINALS WILL NOT BE ACCEPTED THE FOLLOWING DOCUMENTATION IS NEEDED TO ENTER THE LOTTERY Please remember that ALL HOUSEHOLD income must be counted, even if only one person is obtaining the mortgage. Pre-approval letter from a lender on bank letterhead in accordance with guidelines. Sachem s Path Lottery Application completely filled out, using N/A for any questions that do not apply to you. Summary of Deed Restriction/Statement of Understanding signed and dated Certification, Disclosure, Understandings & Authorization signed and dated Documentation to prove your local preference: e.g. utility bills, drivers licenses, tax bills, rental agreements etc. etc. (Copies only) Disability Verification Form or SSDI Award Letter Five most recent, consecutive pay stub copies for all working members of the household, 18 years and older. Verification of child support (Copy of child support order, divorce decree, etc.) Verification of any other household income e.g.: Social Security, SSI, VA benefits, unemployment benefits, and/or public assistance. We need official statement of monthly amount received for the current year. (Copies only) Savings account statements-submit the 3 most recent bank statement copies Checking account Statements- Submit the 3 most recent bank statement copies Verification of Down Payment and Closing Cost funds 1.5% of purchase price has to be from your own savings, checking or other verified assets. Most loans require at least 3% down payment and you will be responsible for paying homeowner s insurance and the buyer s portion of closing costs. Federal Tax Returns (1040)-Copies of signed tax returns for the past three (3) years. You will have to provide all three years. We will also need W-2 s and 1099-R Forms for the most current full year. If you have not filed a tax return for any of the years requested, please call and ask for a print out that there is no tax return for that (those) year(s). Verification of cash value of all assets (assets are generally non- cash items that can be converted to cash, such as stocks, Certificates of Deposit, IRA s retirement funds). This does not include car or furniture. (Copies only) Detailed list supplied upon request. SELF EMPLOYMENT People who are self-employed will need to submit ALL of the above documentation plus the following: Copies of Schedule C for the past two (2) years. A Notarized Statement reflecting your earnings and expenses, to date for the current year. The name of the business must be on the Profit and Loss Statement. It must show quarterly or yearly profit and loss, include income and expenses and must be for at least three consecutive months. 11

15 LIST OF LENDERS Tabitha Baker - Eastern Bank Cell Iyanough Road, Hyannis, MA Beth Ann Meehan Cape Cod Five Cents Savings Bank Pleasant Street, Nantucket, MA Mark Higgins The Cooperative Bank of Cape Cod Benjamin Franklin Way, Hyannis, MA Clifford Carroll - RMS Residential Mortgage Services Lewis Bay Road, Hyannis MA Lisa Oakley Citizens Bank Barnstable Road, Hyannis, MA Sara P Congdon - Hingham Institution for Savings x Main Street, Nantucket, MA Carrie Carrizosa - Boston Private Bank A Beacon Street, Brookline, MA Claudette Vickery Santander Bassett Lane, Hyannis, MA Julie Bell - Nantucket Bank, a division of Blue Hills Bank Pleasant Street, Nantucket, MA Tom McGarr - USDA Rural Development , ext Cranberry Highway, West Wareham, MA The staff of Housing Assistance Corporation has been working with all the mortgage originators on this list. These banks are familiar with and have all the pertinent information on Sachems Path. 12

16 NEXT STEPS 1. Contact one of the lenders on the list provided in the Lottery Application Package to obtain a pre-approval. Be sure to ask how long this process will take to ensure you have your preapproval prior to the Deadline of 5:00PM, Thursday, May 21, Collect all the documentation that is required to be submitted with your Lottery Application. Many of the documents are ones that the lender will also need. Use the check list included in the Lottery Application Package. 3. Make copies of documentation. We cannot accept originals. 4. Complete the Lottery Application, answering all the questions and filling in the asset, liabilities and annual income charts. 5. Review your Lottery Application to ensure all questions have been answered and all documents are signed as required. 6. Submit the complete Lottery Application: application, documentation and pre-approval letter from the lender ASAP. The absolute deadline is 5:00 PM, Thursday, May 21, 2015! 13

17 STAFF ROSTER & CONTACT INFORMATION Cheryl Kramer Director of Housing Consumer Education Center ext 287 Karin Bar Housing Counselor ext 289 Joan Maney Housing Counselor ext 283 Gael Kelleher Real Estate Broker & Director Cape Community Real Estate ext 284 Karen Davis Real Estate Salesperson & Administrative Assistant ext 282 (works Monday & Thursday) Bridget Armstrong Real Estate Salesperson & Administrative Assistant ext 285 Nancy Davison Vice President of Program Operations ext

18 SCORING SHEET FOR LOTTERY DRAWING FOR INFORMATION ONLY HAC WILL USE THIS FORM FOR EACH APPLICANT TO DETERMINE THE LOTTERY DRAWING EACH APPLICANT IS ELIGIBLE TO PARTICIPATE IN. Name Household Size # Adults: # Children: Local Preference: Disability Preference: _ Minority Status: 80% Income 100% Income 150% Income Household Maximizes: 1 Bedroom 2 Bedrooms 3 Bedrooms Pre-approval letter plus down payment shown on application is 80% AMI $224,000 $265,000 $306, % AMI $257,000 $304,000 $353, % AMI $430,000 $483,000 $515,000 Applicant has chosen a: 1 BR House _2 BR House _3 BR House 15

19 Lottery Application Section Please return only the following Lottery Application Pages 1-11 with required documentation.

20 SACHEM S PATH Phase One LOTTERY APPLICATION Lottery Application Deadline: 5:00 PM, Thursday, May 21, 2015 Personal Information Applicant Name: Address: _ Co-Applicant Name: _ Address: Town: _ State: Zip Code: Town: State: _ Zip Code: Home Telephone Number: Cell Phone Number: *_ Employer: Home Telephone Number: Cell Phone Number: *_ Employer: Employer Address: Employer Address: _ Occupation: Occupation: _ Yrs. In current job: _ Yrs in occupation: Yrs. In current job: Yrs in occupation: *Housing Assistance Corporation wants to provide you with information regarding our upcoming events and programs through your . If you prefer to not get these s, please check this box. Household Composition (List the head of household and all members who will be living in the home you purchase. Give relationship of each member to the head of household.) Full Name: Relationship to *List Head of Household first Head of Household SELF Age If household member is over 18, is that person a full time student? 460 West Main St. Hyannis, MA hac@haconcapecod.org fax:

21 Have you recently (in the past 3 months) seen your credit report? In your estimation how would you rate your credit history? Poor Fair Good Excellent Don t Know _ What do you currently pay for rent? Does any member of your household currently or within the past three years own/owned any residential property? If yes, please give details: Are any members of your household disabled? SSDI Award letter If yes, submit either the Disability Verification Form or a copy of your Homebuyer education: I have attended a Home Buyer Education Workshop series. Yes No _ If yes, location _ Date_ Do you have down payment money available? YES Amount: $ NO (Remember, you need to have at least 1.5% of the purchase price of your OWN money for down payment.) ASSETS Type Cash Value Annual Income from assets Bank Name Checking Accounts Savings Accounts Retirement Plans Real Estate Owned Stocks Other (i.e. rental property, lump sum payment) LIABILITIES (Car loan, Credit Cards, Student loans, etc.) Creditor s Name Monthly Payment Unpaid Balance Due Date Type NOTE: If you anticipate that any person (i.e. significant other, roommate, etc.) will be added to the household within 12 months following application, their names, relationship, income and assets must also be included as a household member on your application. If a member of the household over the age of 18 is NOT working, he/she must provide, as part of the required verification, a signed notarized statement describing their current situation. 2

22 ANNUAL INCOME Source Applicant Co-Applicant Other Household Members 18 & over Salary/Regular Pay Total Overtime Pay Commissions Fees Tips Bonuses Interest Dividends Net Income From Business Net Rental Income Periodic S S, Pensions, Retirement Funds, Etc. Unemployment Benefits Workers Compensation Alimony, Child Support TAFDC Part Time Work Other Total for each household member: TOTAL HOUSEHOLD INCOME $ Non-discrimination Policy: Discrimination on the basis of race, creed, color, sex, age, disability, marital status, familial status, veteran s status, sexual orientation, and/or national origin, or any other basis is prohibited by law and is specifically prohibited in the lottery process. 3

23 Minority Status: (Optional) Ethnicity: Hispanic: Non Hispanic: Race: (Optional) Native American /Alaskan Native Asian Black or African American Native Hawaiian or Other Pacific Islander Other (non-white) White Multi Race: (Optional) Native American /Alaskan Native and White Asian and White Black or African American and White Native American /Alaskan Native and Black or African American Native Hawaiian or Other Pacific Islander and White Other Multiple Race Information for BOX 1 Income Limits Use total household income from page 3 to confirm that your income is at or below the maximum income for your household size. Maximum Area Median Income (AMI) (For Nantucket County) Household size 1 Person 2 Person 3 Person 4 Person 5 Person 80% of AMI $ 58,750 $ 67,150 $ 75,550 $ 83,900 $ 90, % of AMI $ 64,960 $ 74,240 $ 83,520 $ 92,800 $ 100, % of AMI $104,700 $119,700 $ 134,700 $ 149,550 $ 161,550 BOX 1 My household size is limit of $. and the household income is at or below the maximum income Information for BOX 2 Local Preference Definition: You and/or the co-applicant live in the Town of Nantucket, work in the Town of Nantucket, or have a child who attends school in the Town of Nantucket. You are required to document your local preference. (license, lease agreement, utility bill, etc.) BOX 2 I live in the Town of Nantucket My child attends school in the Town of Nantucket II live I work in the Town of Nantucket I DO NOT have a local preference 4

24 Information for BOX 3 House Choice Use the number of people in your household and the explanation of bedroom maximization on page 5 of the Lottery Application Package to determine which bedroom size you maximize. Then use the total of your pre-approval and down payment available (see below) to determine the house you wish to purchase in your income bracket. BOX 3 You must choose which bedroom-sized house you are applying for. This decision is final. CHECK ONE ONLY BOX 3 1 BR House 2 BR House 3 BR House 80% AMI $224,000 $265,000 $306, % AMI $257,000 $304,000 $353, % AMI $430,000 $483,000 $515,000 Ex. If you are an 80% applicant and your household consists of married couple with two girls, you would maximize a 3BR house. If your pre-approval and down payment are equal to or more than the price of the 80%, 3BR house for $300,000, then you would check that house in Box 3. If your pre-approval and down payment is less than the price of the 3 bedroom house but more than the price of the 2 BR house for $258,000 and your children can share a bedroom, then you would check that house in Box 3. The attached pre-approval letter is for a mortgage of $ The down payment we are planning to use is $ The total of these 2 amounts is $ 5

25 DISABILITY VERIFICATION FORM TO BE COMPLETED BY PHYSICIAN OR OTHER LICENSED HEALTH PROFESSIONAL TO: NAME OF MEDICAL VERIFIER:. ADDRESS: _ RE:APPLICANT NAME: SS# last 4 digits: _ Dear Sir/Madam, Housing Assistance Corporation is responsible for determining the eligibility of applicants who are applying one accessible home through Sachems Path, Nantucket Lottery. U.S. Department of Housing and Urban Development (HUD) regulations establish criteria which should be met for an applicant to be determined (based on disabled or handicapped status) eligible. Has a disability, as defined in Section 223 of the Social Security Act [42 USC423] defines disability as: "Inability to engage in any substantial,gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months," or "In the case of an individual who attained the age of 55 and is blind and unable by reason of such blindness to engage in substantial,gainful activity requiring skills or ability comparable to those of any gainful activity in which he has previously engaged with some regularity and over a substantial period of time." Is determined, pursuant to HUD regulations, to have a physical, mental, or emotional impairment that: Is expected to be of long-continued and indefinite duration; Substantially impedes his or her ability to live independently, and Is of such a nature that the ability to live independently could be improved by more suitable housing conditions; or Has a developmental disability as defined in 42 U.S.C Section 102(7) of the Developmental Disabilities Assistance and Bill of Rights Act [42 U.S.C. 6001(7)] defines developmental disability in functional terms as: "Severe chronic disability that: Is attributable to a mental or physical impairment or combination of mental and physical impairments; Is manifested before the person attains age 22; 6

26 Is likely to continue indefinitely; Results in substantial functional limitation in three or more of the following areas of major life activity: (1) self-care, (2) receptive and responsive language, (3) learning, (4) mobility,(5) self-direction, (5) capacity for independent living, and (7) economic self-sufficiency; and Reflects the person's need for a combination and sequence of special, interdisciplinary, or generic care, treatment, or other services which are of lifelong or extended duration and are individually planned and coordinated." Other: HUD's definition does not exclude persons who have the disease of acquired immunodeficiency syndrome or any conditions arising from the etiologic agent for acquired immunodeficiency syndromes. For purposes of qualifying for the Sachems Path Lottery, a person whose disability is based solely on drug or alcohol dependence is excluded. I certify that to the best of my knowledge and belief the above information is correct. Name of Person Completing Form Title Signature Date WARNING: Section 1001of Title 18 of the U.S. Code makes it a criminal offense to make willful false statements or misrepresentations to any Department or Agency of the United States as to any matter within its jurisdiction. 7

27 Checklist of Required Documents To be included with your lottery application BE SURE THAT YOU PROVIDE COPIES OF ALL DOCUMENTATION. ORIGINALS WILL NOT BE ACCEPTED THE FOLLOWING DOCUMENTATION IS NEEDED TO ENTER THE LOTTERY Please remember that ALL HOUSEHOLD income must be counted, even if only one person is obtaining the mortgage. Pre-approval letter from a lender on bank letterhead in accordance with guidelines. Sachem s Path Lottery Application completely filled out, using N/A for any questions that do not apply to you. Summary of Deed Restriction/Statement of Understanding signed and dated Certification, Disclosure, Understandings & Authorization signed and dated Documentation to prove your local preference: e.g. utility bills, drivers licenses, tax bills, rental agreements etc. etc. (Copies only) Disability Verification Form or SSDI Award Letter Five most recent, consecutive pay stub copies for all working members of the household, 18 years and older. Verification of child support (Copy of child support order, divorce decree, etc.) Verification of any other household income e.g.: Social Security, SSI, VA benefits, unemployment benefits, and/or public assistance. We need official statement of monthly amount received for the current year. (Copies only) Savings account statements-submit the 3 most recent bank statement copies Checking account Statements- Submit the 3 most recent bank statement copies Verification of Down Payment and Closing Cost funds 1.5% of purchase price has to be from your own savings, checking or other verified assets. Most loans require at least 3% down payment and you will be responsible for paying homeowner s insurance and the buyer s portion of closing costs. Federal Tax Returns (1040)-Copies of signed tax returns for the past three (3) years. You will have to provide all three years. We will also need W-2 s and 1099-R Forms for the most current full year. If you have not filed a tax return for any of the years requested, please call and ask for a print out that there is no tax return for that (those) year(s). Verification of cash value of all assets (assets are generally non- cash items that can be converted to cash, such as stocks, Certificates of Deposit, IRA s retirement funds). This does not include car or furniture. (Copies only) Detailed list supplied upon request. SELF EMPLOYMENT People who are self-employed will need to submit ALL of the above documentation plus the following: Copies of Schedule C for the past two (2) years. A Notarized Statement reflecting your earnings and expenses, to date for the current year. The name of the business must be on the Profit and Loss Statement. It must show quarterly or yearly profit and loss, include income and expenses and must be for at least three consecutive months. 8

28 Summary of the Covenant for 80% and 100% The Massdocs Master Covenant for Affordable Housing is an affordable housing restriction for the Sachem s Path project that will be recorded at the Nantucket Registry of Deeds. This document specifies the resale, refinance and leasing provisions for the properties at Sachem s Path. The buyer of an affordable unit, selected by lottery will receive a mortgage that refers to the resale restrictions in the covenant, which will be recorded at the Nantucket Registry of Deeds at the time of purchase. This affordable unit will be sold at a substantially discounted price. The master Covenant and associated homebuyer mortgage govern the resale process for the unit and ensures that the unit remains affordable for future purchasers of the property. It is strongly recommended that purchasers of an affordable unit at Sachem s Path review the Master Covenant and unit mortgage with their attorney and lender. Below is a general description of the affordable rider: Principal Residence: The property must be the owner s principal residence Notice Requirement: If an owner wants to sell their affordable unit, they are required to notify the Town and the Commonwealth of Massachusetts. Maximum Resale Price: There is a limit on the resale price of the unit so that the unit will always be affordable. The formula for calculating the maximum resale price will be established at the time of purchase and is described in the Covenant. Refinancing: Affordable homes may not be refinanced without prior consent of the Commonwealth of Massachusetts. A copy of the 80% & 100% affordable housing restriction for this project is available for review at Housing Assistance, 460 West Main Street, Hyannis, MA to request a copy by mail, please call ext Statement of Understanding I/We have read the summary of the covenant for Sachem s Path lottery. I/We understand that the home we are applying for has a covenant that restricts the home to be my/our principal residence, cannot be leased or refinanced without following appropriate protocol and home must be sold to an income-eligible buyer at no more than the maximum resale price. I/We understand that, if selected by lottery to purchase a Sachem s Path affordable unit, a full copy of the covenant will be provided to me, and that if my household is certified as income eligible and is able to obtain an approved mortgage, that I/We will be required to execute the covenant at the time of purchase and it will be recorded along with the deed at the Nantucket County Registry of Deeds. Applicant Signature Date Co-Applicant Signature This page must be signed! Date 9

29 Summary of Deed Restriction for 150% The Town of Nantucket has provided land and funding to ensure that Sachem s Path will provide high quality housing for Nantucket s work force "in perpetuity. Just as the sale prices for the new homes are below what they could be sold for on the Open Market, it is of great importance that that the homes remain equally affordable when sold in the future (commonly referred to as at resale ). As a buyer, it is important to understand that the value of a home at Sachem s Path will not increase in the same manner as an Open Market home (commonly referred to as unrestricted home). To accomplish affordability in perpetuity, a legal deed restriction will be placed on each lot which restricts the manner in which homes at Sachem s Path can be resold. When selling, the Owner will work with Housing Nantucket to ensure that the proper protocols are followed. Housing Nantucket will be a valuable resource in helping educate Owners. Of equal importance, Housing Nantucket will act as steward on behalf of the Town to ensure that Sachem s Path remains a key town asset providing future families the same opportunity being provided to prospective Buyers today. I/We understand that, if selected by lottery to purchase a Sachem s Path affordable unit, a full copy of the deed restriction will be provided to me, and that if my household is certified as income eligible and is able to obtain an approved mortgage, that I/We will be required to execute the deed restriction at the time of purchase and it will be recorded along with the deed at the Nantucket County Registry of Deeds. Applicant Signature Date Co-Applicant Signature Date This page must be signed! 10

30 Certification, Disclosure, Understandings & Authorization Certification: I/We certify that the information provided in this application is true and correct as of the date set forth opposite my/our signature(s) on this application and acknowledge my/our understanding that any intentional or neglectful misrepresentation(s) of information contained in this application may result in civil liability, and/or criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Section 1001, et seq., and liability for monetary damages to the lender, its agents, successors and assigns, insurers and any other person who may suffer any loss due to reliance upon misrepresentation which I/we have made on this application. Use of Information Disclosure: The information collected will be used to determine whether you are eligible to participate in various programs which may include the Resale Purchase and/or lotteries. This information may be disclosed as required and permitted by law outside the Housing Assistance Corporation without additional consent including to your employer for verification of income and employment, to financial institutions for verification of information and to the lottery monitoring agent (if applicable). Household Eligibility: Individuals who have a financial interest in the development and their families shall not be eligible for this lottery without a waiver from the Department of Housing and Community Development. We certify that we have no financial interest in Sachem s Path. Understanding of Selection: I/We understand that I/we are selected in the lottery, it does not guarantee that I/we will be able to purchase a home and that all expenses including closing costs and down payment are my/our responsibility. I/We also understand that it is my/our obligation to secure a fixed mortgage for the term of the loan and of the purchase price of the home. I/We understand that we will need to provide a down payment and that I/We will be required to have some percentage of my/our own funds available to be eligible for the lottery. I/We understand that even though I/we think that I/we have submitted all the necessary documentation and/or verifications, I/we are not guaranteed to be in the lottery if HAC finds that any documentation and/or required information is missing. I/We have read the application and all the attached information and understand the lottery process. Authorization: I/We consent to the disclosure of such information for the purpose of income, asset and any other verification related to my/our application. Applicant s Signature Co-Applicant s Signature Date Date Send completed application, copies of required documentation, verifications AND Mortgage pre-approval letter to: Housing Assistance Corporation Sachem s Path Lottery 460 West Main Street Hyannis, MA APPLICATION DEADLINE IS: 5:00PM, Thursday, May 21,