CLINTON HOME OWNERSHIP ASSISTANCE PROGRAM (IFA 2011) APPLICATION FOR ASSISTANCE

Transcription

1 CLINTON HOME OWNERSHIP ASSISTANCE PROGRAM (IFA 2011) APPLICATION FOR ASSISTANCE In submitting this application, I/we agree to and acknowledge that in order to be eligible for this program I/we must complete the following: 1. Gross household income must be less than 80% of the area median income by household size as certified by ECIA. The income limits are as follows: (2013 numbers) 80% Median 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person 34,950 39,950 44,950 49,000 53,900 57,900 61,900 65, Must be a first-time home-buyer as defined by HUD. That is the applicant or applicants must not have owned a home within the last three years or the applicant is a displaced homemaker (male or female). 3 The house the program applicant is looking to purchase must be vacant or owner occupied. 4. I/we must purchase a home with a fee simple mortgage from a local financial institution. Land Contracts are not eligible. See page 11 of this document for specific lending requirements. 5. The loan must meet the above listed loan guidelines. Applicants are encouraged to use local banks or Credit Unions. Balloon payment, interest only mortgages, or ARM mortgage products may not be used. 6. The term of the forgivable loan will be ten years. This product cannot become subordinate to another loan. The forgivable mortgage will decrease in value by 10% per year until the loan is fully forgiven. You MUST live in this house for the term of the forgivable loan or you will be required to pay the remaining portion of funds back to ECIA. ECIA WILL VERIFY OCUPANCY ANNUALLY. 7. The home must be located within the corporate limits of the City of CLINTON. No homes will be assisted within a designated 100 year flood plain. The home must be single family in design with no businesses attached or multifamily design. 8. All offers to purchase a home must be made contingent upon acceptance and approval by the CLINTON Home Ownership Assistance Program (CHOAP). This determination will be made by the ECIA Rehabilitation Specialist. Both the applicant(s) and home must be program eligible before closing can proceed. In addition, several additional documents will need to be signed by the seller and buyer. These will be provided to the buyer s realtor by ECIA. (The form are attached to this application.) 9. If Lead paint is found within the home by the Rehabilitation Specialist who is certified as a Certified Lead Inspector/Risk Assessor (almost all houses built in 1978 or older), the purchaser (program applicant) must not move into the structure until the house is determined to be lead safe as stated in written form from the Rehabilitation Specialist. If lead is found either inside or outside of the home, the grant will pay for temporary relocation expenses until the house is determined lead safe. Temporary relocation expenses includes, rent at your existing apartment, heating fuel/gas, electricity, and water. The grant will not pay for TV, telephone, moving expenses, or other such expenditures. The owner (approved applicant) is responsible for all utility expenditure on the purchased home from the date of possession. Do not plan to move into the house until the work is completed. No storage of personal belongings will be allowed on the premises. IF YOUR ARE NOT WILLING TO ACCEPT THIS REQUIREMENT, DO NOT SUBMUTT AN APPLICATION! Page 1 of 11

2 10. CLINTON HOUSING PROGRAM will give grants in the form of forgivable loans available to approved homebuyers. That is, for a homebuyer to receive assistance in the form of a grant, he or she must sign a promissory note to secure the full amount. The term of the note will be variable depending on the amount granted to the applicant for rehabilitation. The term of the note shall be five (5) years, decreasing 20% per year from the date of final inspection and project acceptance if the total amount of the forgivable loan is equal to or less than $14, The term of the note shall be ten (10) years decreasing 10% per year from the date of final inspection and project acceptance if the total amount of the forgivable loan is between $15, and $40, These notes are non-transferable and subject to repayment to ECIA if the house is ever sold, rented, transferred, or if the home ceases to be your primary residence subject to the restrictions on the forgivable loan. Other restrictions as stated on the forgivable loan apply. The forgivable loan will be the sum of the actual amount of rehab expenditure, lead based paint expenditure, the Rehabilitation Specialist direct project time, and all temporary relocation expenditures. This loan can not be placed in a third loan position. ECIA will annually verify that you are still living in the home. 11. The contractor to complete the work will be chosen on a competitive basis. I/we will allow the Rehabilitation Specialist to make all arrangements for the work. 12. There will be no work done unless I/we authorize it in writing. 13. Any work done on my/our house will be guaranteed for a minimum of one year. The manufacture warranties may exceed this time period. 14. Any work done that is not authorized by the ECIA Rehabilitation Specialist will be done at my/our expense and the City will not be responsible for the workmanship of unauthorized work. 15. Rehabilitation funds may not be used to repair detached structures. Detached structures must be brought into conformance with minimum standards at the buyers expense. 16. If at anytime during the application process, or until the date of final inspection and acceptance, there is a change in my household income, or family or household composition, I/we agree to report this change to the City. The penalty for false or fraudulent statements: USC Title 18, Section 1001, provides: "Whoever, in any matter within the jurisdiction of any department or agency of the United States knowingly or willfully falsifies... or makes any false, fictitious or fraudulent statements or representation, or makes or uses any false, fictitious or fraudulent statement or entry shall be fined not more than $10,000, or imprisoned not more than five years, or both." The bottom line is being truthful with your application! 17. I/We reserve the right to withdraw from this program at any time prior to contract signing. I/we may withdraw after contract signing only with the consent and agreement of the Housing Rehabilitation Committee and the Contractor and all costs incurred to that point have been paid by the applicant. The grant will not pay for partially completed projects. 18. I/We acknowledge that all income and asset information received from this application will be kept confidential. The only people that will see this information is the Rehabilitation Specialist, ECIA Housing Committee, and possibly IFA or HUD. 19. I/We will allow access to my home to representatives of the City of CLINTON, ECIA, the Iowa Finance Authority, and HUD. 20. The purchased home will be insured at the owner s expense and ECIA will be listed on the insurance form as a loss payee. The owner will provide yearly insurance information to ECIA until the forgivable loan has expired or the note is repaid to ECIA. Proof of insurance and occupancy is required prior to or at contract signing and annually to ECIA until the forgivable loan is 100% forgiven. Page 2 of 11

3 21. Housing rehabilitation refers to the repair of or structural alteration to buildings. It is more than the routine or minor improvements that are part of the normal process of property maintenance. In most instances, the need for rehabilitation is a direct result of past neglect of such property maintenance because funds were not available to support periodic repairs. Rehabilitation may include cosmetic improvements, but generally the term is not used to refer to cosmetic improvements alone. The entire home must be in compliance with Iowa s Minimum Housing Rehabilitation Standards. To comply with the Iowa Finance Authority (HUD) HOME regulations, this definition must be expanded to include improvements not only to the residence, but also to the entire property itself. This philosophy is reflected in the Rehabilitation Specifications and, although the residence will be given primary consideration in the rehabilitation effort, the repair of garages, fences, walks and so forth also will be examined in the process. 22. The purchaser will provide the Rehabilitation Specialist a copy of the following: A. Copy of the purchase appraisal as ordered by the bank. B. A letter from your lending institution stating that I/we have borrowed to capacity as determined by the lending institutions lending requirements and which one of the required loan products have been used. C. A copy of your complete closing statement including the HUD form, amount borrowed, amount of down payment, interest rate, etc. D. Property disclosure document. E. Copy of any property inspection (termite) report if so ordered by the applicant. I (we) understand and will fully comply with the above listed requirements. Printed name Signature Date Printed name Signature Date Page 3 of 11

4 CLINTON HOME OWNERSHIP ASSISTANCE PROGRAM IFA 2011 CLINTON, IOWA Complete the enclosed application (answer all questions completely with full addresses (street, city, state, & zip) - answer Not Applicable (N/A) if the question does not pertain to you) and return the application as soon as possible to: ECIA Attn: Tim B. Crabb, Rehabilitation Specialist 7600 Commerce Park Dubuque, IA HOUSEHOLD INFORMATION HEAD OF HOUSEHOLD: ADDRESS: CITY/STATE/ZIP CODE: TELEPHONE NUMBER: CELLULAR NUMBER: SOCIAL SECURITY #: ADDRESS AGE: RACE: Do you currently own or have a mortgage on a home? YES NO Do you own other property Yes No If so, where? Have you ever been assisted with other CLINTON City housing grant funds? Yes No Have you ever owned a home within the last three years? Yes No If yes, please explain PROVIDE A COPY OF YOUR RENTAL LEASE WITH THIS APLICATION. Page 4 of 11

5 LIST ALL OTHER PERSONS WHO ARE OR WILL BE LIVING AT THE NEW HOUSE: NAME AGE SOCIAL SECURITY # RACE Do any of the above listed people have a diagnosed handicap or disability? YES NO If yes, please explain: Provide a copy of a Social Security letter stating such handicap or disability. No letter, no disability. INCOME INFORMATION Please provide total income from all persons who will be living in the household. (Include employment income, rental income, welfare, VA benefits, child support, social security benefits, pensions, retirement funds, self employment, etc.) Monthly Source of Income Name Income Address (USE COMPLETE ADDRESS) Page 5 of 11

6 ASSET INFORMATION Financial Institutions / Investors Accounts Amount Interest Rate Address Savings Account Savings Account Checking Account Stocks / Bonds CD s / Other Account ** If more Financial Institutions / Investors lines are needed, please list on a separate sheet of paper. PLEASE PROVIDE A COPY OF YOUR MOST RECENT FEDERAL INCOME TAX RETURN WITH THIS APPLICATION. PLEASE PROVIDE A COPY OF EACH PERSONS SOCIAL SECURITY CARD. Do not mail your Social Security cards to us! Head of Household: Date: Joint Head of Household: Date: If you have questions regarding this application, please call Tim Crabb or Ryan Walter at (563) or Mail completed application to: ECIA, Attn: Tim Crabb, 7600 Commerce Park, Dubuque, IA All applications will be served on a first-come first-serve bases. Applications received with a signed and approved purchase agreement ( subject to CHOAP approval), a letter of approved credit (from an approved lending source) will be given priority status until all funds are used subject to applicant verification and date/time the information was received at ECIA. No applicant is guaranteed any funding until notified in writing by the Rehabilitation Specialist subject to funds remaining from this grant. Funding for this program is through the Iowa Finance Authority HM-112 Page 6 of 11

7 AUTHORIZATION FOR THE RELEASE OF INFORMATION The undersigned hereby authorize the source listed on this form, without liability, information regarding employment, income, and/or assets to ECIA/IFA/HUD, for the purposes of verifying information provided as part of determining eligibility for assistance under the ECIA Clinton Home Ownership Program. I/We understand that only information necessary for determining eligibility can be requested. Types of Information to be verified: I/We understand that previous or current information may be required. Verifications that may be requested are, but not limited to: employment history, hours worked, salary and payment frequency, commissions, raises, bonuses, and tips; cash held in checking/savings accounts, stocks, bonds, certificated of deposits, Individual Retirement Accounts, interest, dividends; payments from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, unemployment, disability or worker s compensation, welfare assistance, net income from the operation of a business, and alimony or child support payments, or any other source of income or asset. I/We agree that a photocopy of this authorization may be used for the purposes stated above. I/We understand that I/We have the right to review this file and correct any information found to be incorrect. This consent form expires 12 months after signed. X X Applicant Name Address City State Zip X X X Applicant Signature Applicant Social Security Number Date X X Applicant Name Address City State Zip X X X Applicant Signature Applicant Social Security Number Date X X Applicant Name (other household members 18 or older) Address City State Zip X X X Applicant Signature Applicant Social Security Number Date X X Applicant Name (other household members 18 or older) Address City State Zip X X X Applicant Signature Applicant Social Security Number Date Privacy Act Notice. Authority: The Department of Housing and Urban Development (HUD)/ECIA is authorized to collect this information by the U.S. Housing Act of 1937 (42 U.S.C et. seq.), Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d), and by the Fair Housing Act (42 U.S.C ). The Housing and Community Development Act of 1987 (42 U.S.C. 3543) requires applicants and participants to submit the Social Security Number of each household member. Purpose: Your income and other information are being collected by HUD/ECIA to determine your eligibility. Other Uses: HUD/ECIA uses your family income and other information to assist in managing and monitoring HUD-assisted housing programs, to protect the Government s financial interest, and to verify the accuracy of the information you provide. This information may be released to appropriate Federal, State, and local agencies, when relevant, and to civil, criminal, or regulatory investigators and prosecutors. However, the information will not be otherwise disclosed or released outside of HUD/ECIA, except as permitted or required by law. Penalty: You must provide all of the information requested by the ECIA, including all Social Security Numbers you, and all other household members have and use. Giving the Social Security Numbers of all household members is mandatory, and not providing the Social Security Numbers will affect your eligibility. Failure to provide any of the requested information may result in a delay or rejection of your eligibility approval. Page 7 of 11

8 SELLER S OCCUPANCY CERTIFICATION Date SUBJECT PROPERTY ADDRESS: Address City St Zip I/We, the Seller(s) of the subject property listed above certify that: (Check only those items that are applicable) This property is vacant and without any tenant resident or tenant personal property. No tenant has occupied the property during the previous one (1) year. The property is not occupied, but personal property owned by a person other than the owner is located at the site. At the time of the acquisition of the property by the buyer, the property will be delivered vacant and without any party in possession or with a right to possession to the property. Further, if the property is not occupied at this time, the Seller also certifies and agrees that it has not now and will not after the date hereof allow any person, including the former owner, to occupy the property under a lease or any other agreement for possession of the property either oral or written. Outside of escrow, I/we shall not receive any money from the Buyer and/or enter into contract or agreement with the Buyer regarding disposition of this property. Signature Date Printed Name Page 8 of 11

9 Notice to Seller(s) Voluntary Acquisition Notice Date: Buyer: Seller: SUBJECT PROPERTY ADDRESS: Address Maquoketa, Iowa Dear Seller: Please be advised that the buyer listed above is interested in acquiring your property. The buyer is receiving down payment or closing cost assistance from the U.S. Department of Housing and Urban Development (HUD) under the HOME Program. This effort to acquire your property is voluntary in nature, and, therefore without any threat of eminent domain (condemnation). In the event we cannot reach an amicable agreement for the purchase of your property, we will not pursue this proposed acquisition. At this time, we are prepared to offer you $ to purchase your property. Depending on the results of an appraisal, our written offer may differ from this amount. Under the HOME program, we cannot purchase property for more than its current fair market appraised value. The seller has a right to a copy of the appraisal and also has the right under the Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA) to withdraw from the transaction if the appraisal differs (higher or lower) from the appraised value. If your property is in default, but foreclosure proceedings have not yet been initiated/completed, and our offer is for less than the current balance of your mortgage loan(s), we suggest that you seek legal counsel or guidance. We cannot provide you with the legal guidance regarding any tax, credit, or deficiency judgment consequences to you related to the sale. In accordance with the URA, owner-occupants who move as a result of a voluntary acquisition are not eligible for relocation assistance. A tenant-occupant who moves as a result of a voluntary acquisition for a federally-assisted project may be eligible for relocation and rental assistance. Such displaced persons may include not only current lawful Page 9 of 11

10 occupants, but also former tenants required to move for any reason other than an eviction for cause in accordance with applicable federal, state, and local law. If your property is currently tenant-occupied or a tenant lawfully occupied your property on or after February 17, 2009, we need to know immediately. In most cases under the Protecting Tenants at Foreclosure Act of 2009, tenants have the right to continue as a tenant for the remainder of the lease or at least 90-days from the date given notice to vacate (whichever is longer). If the property was foreclosed after February 17, 2009, the purchaser must obtain adequate documentation of tenant protection compliance. Please complete the attached Seller's Occupancy Certification form regarding tenant protection and occupancy. If your property is currently tenant-occupied or a tenant lawfully occupied your property within the past 90 days prior to our offer, our offer is subject to an evaluation of the complexity and cost of relocating the occupant(s) as well as timeliness considerations of the transaction. The seller would be required to submit a copy of the lease or rental agreement if the property was tenant occupied. Further, you should not order current occupant(s) to move, or fail to renew a lease, in order to sell the property as vacant. If you have any questions about this notice or the proposed project, please contact: Note: The Iowa Finance Authority will not allow any home that has been rented within the last 12 months to be purchased with HOME funding. The purchased must be owneroccupied or vacant for the last 12 months. Name: Timothy B. Crabb, Rehabilitation Specialist ECIA, 7600 Commerce Park Dubuque, Iowa x214 tcrabb@ecia.org Sincerely, Buyer or Buyer s Representative Signature Date: Printed Name: Enclosure (Seller s Occupancy Certification) Page 10 of 11

11 LENDERS LOAN REQUIREMENT STANDARDS. Any mortgage lending entity s principal mortgage loan products may be used provided they meet all of the following minimum requirements: (1) The loan must be a fully amortizing, fixed-rate loan with rate not to exceed Fannie Mae 90-day yield % or VA-published interest rate at par; (2) Loan terms must include an 80 percent or higher loan-to-value ratio; (3) No less than a 15-year, fully amortized, fixed-rate mortgage shall be used; and (4) No adjustable rate mortgages or balloon payment types of mortgages will be allowed. (5) personal loans from individuals or land contracts are not allowed. Recipients are encouraged but not required to have the beneficiaries of their home ownership assistance activity utilize a principal mortgage loan product offered by one of the following: Iowa finance authority, USDA Rural Development, Federal Home Loan Bank, HUD (including FHA and VA), Habitat for Humanity, Fannie Mae, or Freddie Mac. If you have questions regarding these requirements, please call Tim Crabb at Page 11 of 11