HABITAT FOR HUMANITY OF GREATER BANGOR (HFHGB) FAMILY SERVICES

Transcription

1 HABITAT FOR HUMANITY OF GREATER BANGOR (HFHGB) FAMILY SERVICES POLICIES AND PROCEDURES 1.0 PARTNERSHIP Successful partnerships are built upn hnesty, trust, mutual respect, and a cperative, willing attitude. A successful partnership between Habitat fr Humanity f Greater Bangr (HFHGB) and Partner Families als requires meaningful cmmunicatin and an acknwledgement f the rights and respnsibilities f each partner. The respnsibilities f the Partner Family (PF) include: Acceptance and signing f an Invitatin t Partner which utlines the mutual understanding f bth parties regarding the terms f the partnership. Cmplete Sweat Equity (SE) requirements, with emphasis n spending as much time as pssible building their wn hmes. Keeping HFHGB Family Services infrmed f any changes in ecnmic circumstances (in particular, the PF will refrain frm assuming any additinal debt withut first cntacting HFHGB Family Services). The respnsibilities f HFHGB include: Ensuring that huses are built in cmpliance with apprpriate building cdes and inspected by cunty and/r municipal building inspectrs thrughut the cnstructin prcess. Being gd stewards f dnated time, materials and vlunteer labr in rder t keep the price f hmes affrdable. Cmpleting cnstructin n the hme in a timely manner. Selling the hme t the PF at n prfit t HFHGB. Ensuring that the purchase price is financed with a zer-interest mrtgage. The partnership between HFHGB and the PF cntinues beynd the Act f Sale. After the Act f Sale, the PF shall: Make timely mrtgage payments. Maintain the hme and prperty upn which it is built. Cntinue cmmunity develpment effrts t imprve the neighbrhd. Cntinue t supprt HFHGB s missin t build hmes fr mre families in need. HFHGB will cntinue t be invlved in the neighbrhds and cmmunities where Partner Families live thrugh ther effrts. 2.0 HOMEOWNER FILES The Family Services Prgram shall maintain files fr hmebuyer applicants and selected partner families. Denied hmewner applicatins will be kept fr 25 mnths, based n Habitat fr Humanity Internatinal plicy. After 25 mnths, denied applicant files are destryed. If an applicant family is interested in cllecting any riginal dcumentatin, they must make arrangements with Family Services staff t cllect the dcumentatin by the given term r it will be destryed with the rest f the file. N riginal dcumentatin will be mailed. All cnversatins with partner families regarding sweat equity, lt assignment, r anything cncerning the partnership respnsibilities f either HFHGB r the PF shuld be dcumented in writing and placed in the family file. 3.0 APPLICATION PROCESS HFHGB has partnered with numerus cmmunity rganizatins in Penbsct Cunty Area t assist in the identificatin f interested applicants. While this partnership is in effect, persns interested in applying t partner with HFHGB must cntact HFHGB t btain an infrmatin packet r t set up a face-t-face meeting with staff at either the ffice r at an applicatin intake meeting. Eligibility f an applicant is at the cmpletin f the applicatin. This means an applicatin is nt cmplete until all supprting dcumentatin has been submitted. If the applicant meets each f the basic criteria, their applicatin, alng with all necessary supprting dcumentatin will be turned ver t the HFHGB Family Selectin Cmmittee fr review. All applicatins recmmended by the HFHGB Family Selectin Cmmittee will be reviewed by the HFHGB Bard f Directrs where all final determinatins regarding the selectin r denial f Partner Families will be vted by the HFHGB Bard f Directrs. 1 Habitat fr Humanity f Greater Bangr 83 Washingtn Street Bangr ME Habitatbangr.rg

2 3.0 FAMILY SELECTION 4.1 Selectin Criteria: a. Husing need b. Ability t pay fr the hme c. Willingness t partner a- Husing Need The fremst cnsideratin in selecting a PF is the lack f adequate husing and the inability t access adequate husing thrugh cnventinal means. This is identified by the fllwing: Substandard cnditins in current husing which may include, but are nt limited t: Structural prblems Prblems with plumbing, sewage, r electrical systems Unsafe heating system r n frmal heating system Lack f air cnditining Little r n insulatin Lack f functining entrance and exit pints (frnt and back drs) Unhealthy cnditins including, but nt limited t, mld due t rf leaks r pest infestatin due t structural cracks and crevices Unsuitable neighbrhd (unsafe r unsanitary) Inperable kitchen r bathrm Overcrwding (determined by number f persns, their ages, and gender) Cst-burdened (cst f rent plus utilities - excluding phne is greater than 35% f family s mnthly incme) Hmelessness (living with friends r relatives r in temprary husing) Family has been denied cnventinal r gvernment assisted financing Living in gvernment subsidized husing And: Family incme is nt mre than 60% f the area median incme (AMI) Nte: The HFHI Cvenant Standard fr the upper limit f affiliate incme guidelines is 60% f the AMI. a.1 Pre-Apprved fr Lans:*********NEW********* If an applicant has been apprved fr a hme lan (frm an accredited institutin) fr an amunt under $110,000, He/she can still be cnsidered fr an HFHGB hme as lng as their incme falls within ur guidelines. If they have submitted an ffer n a huse n the market, regardless f price, their applicatin cannt be accepted until they are clear f any bligatins. b - Ability t Pay Our prescreening prcess shuld ensure that all applicants have incme within ur apprved range. The HFHGB Family Selectin Cmmittee will review all applicatins t determine whether they satisfy standard Ability t Pay requirements. Heartland Habitat s Incme Guideline is t be current and cnsistent with the Habitat fr Humanity Internatinal Guidelines. These requirements help identify very lw-incme families wh cannt btain cnventinal financing, and wh have sufficient incme t affrd the mnthly mrtgage payments and ther csts assciated with HFHGB hmewnership. Evidence f Ability t Pay may include, but is nt limited t, dcumented prf f the fllwing: Stable surce f incme f which a prjected HFHGB mrtgage payment will nt exceed 30% f mnthly grss incme. A debt lad that will nt prevent the applicant frm meeting nrmal cst f living expenses each mnth (including the prjected mrtgage payment). The absence f judgments r liens. Demnstrated ability t make regular payments fr rent, utilities, etc. in current husing. The absence f excessive cllectin items n the applicant s credit reprt. 2 Habitat fr Humanity f Greater Bangr 83 Washingtn Street Bangr ME Habitatbangr.rg

3 HFHGB Guidelines will be utilized t determine incme eligibility in cnjunctin with incme tax returns f the past three (2) years. Incme tax return has t include W2s and signed 1040 frms. If self emplyed 1099 tax frm and schedule c must be prvided alng with all supprting receipts fr expenses and incme. Annual Grss Incme includes: incme tax statements, pay stubs frm their emplyer (shwing the current mnth). SRS benefits, Child Supprt, Unemplyment, Scial Security, Disability, Retirement and any maintenance frm divrce. All applicants must be able t demnstrate a stable surce f incme (emplyment histry f tw (2) years). This includes six (6) mnths f incme stability if there is n tax return fr the previus year r if the applicant is a new emplyee. Emplyment Histry can be with the same emplyer in numerus psitins r in the same ccupatin with different emplyers. All applicants with utstanding payable accunts with gvernment agencies r significant amunt f debt will be reviewed by HFHGB staff. HFHGB staff will recmmend payment plan t be in place r credit cunseling prir t bringing applicant t the Family Selectin Cmmittee. Child supprt benefits will nt be included as part f the incme when cnsidering ability t pay, if the applicant s children are fifteen (15) years r lder. This rule will als apply t applicants whse child receives incnsistent child supprt benefits. Prf has t be prvided by the SRS print ut r benefit printut frm the Child Supprt Divisin. b.1 Self-Emplyed Applicants with N Clear Recrds f Incme: If an applicant is self emplyed r is emplyed as a cntractr, the applicant is t prvide at least 24 mnths f prf f incme and expenses (if it applies), business license r permit and all ther dcumentatin prvided t their accuntant r incme tax facility every year. Recrds must be n riginal letter head frm the emplyer r frm the accunting firm. N hand written ntes will be accepted! If applicant is nt able t prvide such, the applicatin cannt be accepted and they can reapply the fllwing year if all their recrds are in line. b.2 Cash Advance Lans: If an applicant has previus histry f any kind f cash advance lans, they can still submit an applicatin as lng as they have paid the lan amunt n time r are in current payments with n defaults. If there was a special circumstance that caused them t get the lan and as lng as the lans are nt being used n regular basis as an alternative frm f incme, up t three lans will be accepted. A letter f explanatin must be submitted t describe the reasn fr the lans and what they were used fr. The lans cannt be cunted if they are ften used as incme r t make up the minimum husehld incme. b.3 Applicants with Occupants 18 yrs f age and lder Any individual listed n the applicatin as an ccupant ver the age f 18 has t submit their financial infrmatin and will als be screened as a future resident f the HFHGB hme. If in schl, prf f enrllment will be requested. b.4 Applicants that dn t pay rent r live with ther family members: An applicant must demnstrate their ability t live independently and t manage the financial bligatins f maintaining a hme fr a minimum f twelve (12) cnsecutive mnths prir t applicatin. If an applicant is currently nt living independently, the applicatin will be cnsidered if he/she can dcument a histry f living independently fr 12 cnsecutive mnths within the past 24 mnths prir t the time f applicatin and can justify the current living arrangement. c- Willingness t Partner The third criteria t cnsider in the family selectin prcess are the family s willingness t meaningfully participate as a partner with HFHGB. Examples f bjective criteria fr assessing willingness t partner include, but are nt limited t, the fllwing: The family agrees t pay the mrtgage regularly and n time after purchase. The family is willing t cmplete HFHGB Sweat Equity (SE) requirements in a timely manner. The family agrees t avid new cnsumer debt during this prcess. The family must be willing t mve where the affiliate has land n which t build r has a recycle hme. The family ntifies the affiliate f any change in family cmpsitin. The family ntifies the affiliate f negative changes in ecnmic circumstances, including any reductin in incme. The family prmptly ntifies the affiliate f any changes in cntact infrmatin. The family agrees t maintain the hme and prperty after purchase. 3 Habitat fr Humanity f Greater Bangr 83 Washingtn Street Bangr ME Habitatbangr.rg

4 4. 2 Legal Issues HFHGB must als perate in accrdance with the Fair Husing Act (FHA), the Equal Credit Opprtunity Act (ECOA), and the Americans with Disabilities Act (ADA). The FHA makes it unlawful t discriminate against any persn in the sale, rental, advertising, r financing f husing n the basis f race, clr, religin, sex, handicap, familial status, r natinal rigin. The ECOA makes it unlawful fr any creditr t discriminate against any applicant, with respect t any aspect f a credit transactin, n the basis f race, clr, religin, natinal rigin, sex r marital status, age (prvided the applicant is ld enugh t enter int a cntract), surce f incme (such as public assistance) r because the applicant has in gd faith exercised any right under the federal cnsumer credit laws. The ECOA defines a creditr as a persn wh, in the rdinary curse f business, regularly participates in the decisin f whether r nt t extend credit. Our affiliate des this when ur bard reviews the Family Selectin Cmmittee s recmmendatins. The affiliate is als a creditr because it makes lans t the families wh becme HFHGB hmebuyers. The ADA prhibits discriminatin based n physical disability in mst areas, including husing. 4.3 Other Issues Residency Status At least ne persn t be listed n the deed as a grantee fr a HFHGB hme must be either; a dcumented United States Citizen; r a persn with the dcumented legal right t permanently remain and be emplyed in the United States f America (the Permanent Resident ). The main applicant must be the Permanent Resident and have permissin t legally be emplyed in the United States f America. 1. Withut limiting the applicatin f the eligibility requirements set ut in the paragraph abve, a persn may be named as a grantee n the deed fr a HFHGB hme wh is nt a Permanent Resident. Every persn whse name appears n the deed fr a HFHGB hme must als sign the applicable prmissry ntes and mrtgages fr that hme n matter what their legal r marital status may be. 2. Individuals must prvide dcumented prf f a status sufficient t demnstrate they are able t meet the requirements t be deemed a Permanent Resident by HFHGB. Acceptable dcumentatin includes, but is nt limited t, ne r mre f the fllwing types f dcuments fr each persn, at least ne dcument per persn must have recent pht. Applicants may chse frm: Driver s license Scial Security card U.S. Passprt Certified cpy f birth certificate U.S. Alien Registratin Card r permanent Certificate f Naturalizatin Resident card ( green card ) Certificate f U.S. Citizenship Native American tribal dcument U.S. Military card r draft recrd Schl ID card with a phtgraph Vter s registratin card Any ther dcument that is acceptable fr the Emplyment Eligibility Verificatin (Frm I-9) Crime Cnvictins: If an applicant is currently serving r has served a sentence fr any vilent crime, theft, sexual ffence, human trafficking, pedphilia psitin, fraud, gang crime, sliciting, dmestic vilence, etc, r have a serius restrictin rder filed against him r 4 Habitat fr Humanity f Greater Bangr 83 Washingtn Street Bangr ME Habitatbangr.rg

5 her, the applicatin cannt be accepted and must be denied due t unwillingness t partner n the grunds f nt demnstrating the ability t be a safe member f the cmmunity. If an applicant has served r is currently serving any sentence fr a minr misdemeanr, they can still present an applicatin but are nt guaranteed an apprval as their apprval is dependent n their behavir after the cnvictin and what the cnvictin was fr. HFHGB still has the right t refuse their applicatin if suspicins f cntinuus behavir r habits are present. Our bligatin is t the cmmunity we serve and their safety Drug Cnvictins: If an applicant has recently been cnvicted f a drug distributin charge, their applicatin will be rejected as the risks f having the prperty seized are higher. If they have been cnvicted with a drug pssessin charge, their histry befre and after the charges will be taken int cnsideratin befre a decisin can be made. HFHGB has the right t refuse t partner with the individual if signs f cntinuatin f use are present as they are a risk. Denial can be based n ability t pay Judgments & Liens The Family Services staff is respnsible fr ensuring that a PF is nt encumbered with judgments r liens befre that family is presented t the Family Selectin Cmmittee. If they are finishing payments n a medical lien, the candidate file can be revised fr any ther debt and previus credit histry befre a final decisin can be determined. After a PF is selected and befre the PF ges t an Act f Sale (AOS), the Family Services Crdinatr will check again fr judgments and liens 45 days prir t clsing. If a PF has acquired a judgment r lien, the AOS will be pstpned and the PF will be referred t credit cunseling Bankruptcy In General, applicants must wait tw years after a bankruptcy and shw gd credit in the time since the bankruptcy is discharged. This time perid may be waived if the bankruptcy was due t extrardinary circumstances beynd the family s cntrl (e.g. death, serius illness, fire, natural disaster, etc.) Freclsure In General, applicants must wait tw years after a freclsure and shw gd rental histry in the time since the freclsure is discharged. This time perid may be waived if the freclsure was due t extrardinary circumstances beynd the family s cntrl (e.g. death, divrce, serius illness, fire, natural disaster, etc.). The applicant als needs t submit a letter f explanatin fr the reasn it happened signed and dated by the applicant. If the freclsure was with a previus Habitat affiliate, their applicatin cannt be accepted, as they are cnsidered a financial risk Marital Status f Applicants HFHGB des nt discriminate in its selectin prcess n the basis f marital status. Hwever, there are legal issues which make infrmatin regarding the marital status f applicants relevant t the applicatin prcess. Spuses r fiancés f applicants must be included as c-applicants n the applicatin and submit all their infrmatin even if they have n incme. The state f Kansas des recgnize legal separatin. Hwever, HFHGB must be able t safeguard its security interest in the hmes it sells. Therefre, Applicants wh are married but separated must submit a curt apprved dcument cnfirming that legally they are married but separated. This dcument must include the date f marriage and the date f separatin. Als, the aplicant must als write a letter stating that the Applicant is aware that, if selected, he r she must sign an affidavit t be drafted by the HFHGB attrney affirming the fllwing: That they are legally separated. That the absent spuse will nt reside in the huse if they are ultimately selected t partner with HFHGB. That the absent spuse will have n legal interest in any huse purchased by them frm HFHGB. That they agree t ntify HFHGB in the event that the spuse mves int the hme subsequent t clsing. That they understand failure t s ntify HFHGB culd result in the terminatin f their right t remain in the hme. That they understand that sme dcumentatin may be required f the absent spuse t ensure the safety f the family and thers. Any Selected Family wh is married but separated must sign the abve affidavit prir t beginning t wrk SE. 5 Habitat fr Humanity f Greater Bangr 83 Washingtn Street Bangr ME Habitatbangr.rg

6 Any applicant that is legally married but nt legally separated at the pint f applicatin, must at least have initiated divrce prcedures with a lawyer and the divrce must be final befre the HFHGB hme can be purchased r the spuse must be added t the applicatin as a c applicant. The HFHGB affidavit will be filed with the curt as an addendum t the Deed f Trust. An Applicant wh is fund t have prvided materially false infrmatin abut his r her marital status at any pint either prir t r after selectin shall be subject t de-selectin even if the hme is cmpleted. 4.4 Family Selectin Cmmittee The Family Selectin Cmmittee (FSC) is cmpsed f n less than 10, nr mre than 20 members wh are residents f Penbsct Cunty chaired by an HFHGB Bard Member. The FSC will: Meet mnthly with meetings cancelled r added as necessary Cnduct a unified review prcess f each applicatin Visit the hmes f applicants fr the purpse f determining the applicant s suitability fr the HFHGB s hmewnership prgram 4.5 Family Selectin Prcedures Once the dcuments necessary t prperly evaluate an applicatin are in hand, infrmatin n qualifying applicants is presented t the FSC fr review at the mnthly FSC meeting. 1. The cmmittee is given an Applicatin Infrmatin Sheet (AIS) that cntains but is nt limited t: General infrmatin name, address, phne numbers, number in husehld (adults, children, relatinships), and age. Verified incme, debt and mnthly expenses. Descriptin f current living cnditins (renting rent amunt; wn huse payments) and explanatin f why applicant is in need f husing. The applicant cannt wn a huse r land at the time f sale f the HFHGB huse; Infrmatin regarding whether the family wns land n which it wishes HFHGB t build. Cpy f Credit Reprt. Other applicatin materials requested by the FSC as apprpriate. 2. If the FSC determines that a hme visit is apprpriate, applicants are then assigned t n less than tw FSC members wh will cnduct the visit. 3. Hme visitrs reprt n the visit at the next cmmittee meeting. 4. Once the infrmatin frm the hme visit is reprted, the FSC vtes n whether t recmmend the applicant t the BOD fr final apprval. 5. Pertinent infrmatin regarding the three criteria is presented t BOD at their next mnthly meeting. The BOD reviews the infrmatin presented fr each applicatin and makes the final decisin n selecting r denying the applicant. 6. Denial at any pint in the prcess results in a letter infrming the family f the denial, the reasn(s) fr the denial, and includes suggestins fr remediatin and ther pssible husing ptins, alng with an invitatin t re-apply nce any prblem issues have been remedied. If denied by the FSC they must wait ne year befre re-applying but if denied by the BOD they must wait a ttal f 3 years befre they can re-apply. 7. Selected families will receive a call t infrm them f their acceptance, fllwed by a letter giving the date f acceptance and scheduling f their HFHGB rientatin meeting. 5 Applicatin Plicies An applicant that withdraws its applicatin r is deselected after he/she has been apprved by ur Bard f Directrs must wait a 12 mnth perid befre they can re-apply. A new cmplete applicatin and requirements will have t be submitted. Eligibility f an applicant is at the cmpletin f the applicatin. This means an applicatin is nt cmplete until all supprting dcumentatin has been submitted. An interested applicant can submit an applicatin up t three times depending n the previus reasns f denial. If their circumstances have changed fr the better and n previus signs f falsificatins were suspected then the applicant is eligible t apply. If the applicants were previusly suspected f fraud, HFHGB is nt bligated t accept their applicatin due t the bvius unwillingness t partner. 6 Habitat fr Humanity f Greater Bangr 83 Washingtn Street Bangr ME Habitatbangr.rg

7 5.1 Re-Certificatin f Applicants HFHGB Bard f Directrs reserves the right t request re-certificatin f all prgram participants 45 days prir t clsing. At that time all incme will be verified and credit will be revised t ensure ability t pay. All participants must submit tw mnths f updated paystubs fr all adults wrking and mving int the HFHGB huse, three mnths f bank statements fr all bank accunts and any prf f payment fr any cllectins pending n their credit r new debt acquired since their applicatin was apprved. Any incme r credit changes must be cmmunicated t HFHGB immediately s that a time perid can be granted t the family t crrect the change depending n the circumstances. Any changes n credit that affects liens and judgments must be disclsed regardless f them shwing r nt shwing n the credit reprt. Failure t d s will disqualify the family frm the HFHGB prgram even if the huse has been cmpleted. This frmally ends the Family Selectin prcess. 7 Habitat fr Humanity f Greater Bangr 83 Washingtn Street Bangr ME Habitatbangr.rg