City of Carrollton, Carrollton Housing Authority Neighborhood Stabilization Program. Real Estate Services Sales + Purchases

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1 City of Carrollton, Carrollton Housing Authority Neighborhood Stabilization Program Real Estate Services Sales + Purchases

2 Purpose of the City of Carrollton NSP Program Purchase foreclosed and abandoned homes Rehabilitate homes and neighborhoods Sell to qualified home buyers Create Jobs and/or stabilize job market

3 What is NSP and Who s Involved? Federal, State, Local. Title III of the Housing and Economic Recovery Act of 2008 GA DCA allocated $54.4 Million to 23 Neighborhood Stabilization Program Projects Statewide $2.6 Million Awarded to the City of Carrollton Neighborhood Stabilization Program Builders and Home Construction Contractors, Appraisers, Real Estate Community, Finance Industry, Legal Services, Insurance Agencies, Banks, Local Governments, etc. Carrollton Housing Authority Local Management Prospective Homeowners

4 Purpose of the City of Carrollton NSP Program Purchase foreclosed and abandoned homes Rehabilitate homes and neighborhoods, going above and beyond just rehab Internet wired energy star compliant porches neighborhood consistency Sell to qualified home buyers Create Jobs and/or stabilize job market

5 NSP Buyer Incentives: 1. Overall Discount 2. Down Payment Assistance 3. Closing Costs 4. And don t forget Non-NSP Incentives

6 NSP Buyer Incentives #1 Overall Discount Properties must be purchased at an overall discount of 1% of the home value as verified by an appraisal made within 60 days of purchase.

7 NSP Buyer Incentives #2 Down Payment Assistance Carrollton NSP offers up to 6-7k down payment assistance to approximately 15 (+/-) homebuyers, focusing primarily on those families not exceeding 50% of the AMI. Second mortgage instrument (loan agreement, security deed, promissory note) that is subordinate to the primary mortgage, with the CCNSP as the holder.

8 NSP Buyer Incentives #3 No Delivery Costs Purchase price (+) renovation fees (=) sale amount. Legal fees are typically not included as closing fees to the buyer.

9 Non-NSP Buyer Incentives The Worker, Homeownership, and Business Assistance Act of 2009 extended the federal tax credit of: Up to $8,000 for qualified first-time home buyers purchasing a principle residence. Up to $6,500 for qualified repeat home buyers. Required before April 30, 2010 or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010

10 Homebuyer Qualifications: 1. US Citizen 2. Must be Primary Residence 3. (Area Median Income) AMI 4. Conventional Loan 5. Credit Counseling

11 Qualification # 1 & 2 US Citizen and Primary Residence Execute Affidavits (typically added as stipulation to the Sales Agreement/Purchase Contract

12 Qualification #3 AMI Participants must have an income at or below 120% the Area Median Income (AMI) 25% of total NSP funds must go towards families that are <50% of the AMI AMI 1999 AMI 2009 HH Income 1 Person HH 2 Person HH 3 Person HH 4 Person HH 5 Person HH 6 Person HH 58,520 71,700 30%AMI 15,050 17,200 19,350 21,500 23,200 24,950 50%AMI 25,100 25,100 28,700 32,250 35,850 41,600 80%AMI 40,150 45,900 51,600 57,350 61,950 66, %AMI 60,250 68,850 77,450 86,050 92,900 99,800 HUD figures based on Atlanta-Sandy Springs-Marietta, GA, MSA

13 Qualification #4 Mortgage Mortgage

14 Qualification #5 Credit Counseling All buyers must receive eight hours home buyer education/counseling provided by a HUD-approved housing counseling agency. Link to HUD-approved housing counseling agencies in Georgia

15 Summary Verifying Qualification Requirements US Citizen and Must be Primary Residence AMI (Income Requirement) Loan Prequalification Home Buyer Education (typically added as stipulation to the Sales Agreement/Purchase Contract)

16 Purchases

17 Purchase Foreclosed and Abandoned Homes, considerations (standards) Must be foreclosed or abandoned Purchase homes with a discount, at a MINIMUM, of 1% below the as-is appraised value. Purchase price must be no more than average home purchase price ($136,400) for Carroll County Environmental and Historic Review Lead hazard evaluation pre-1978

18 Purchase foreclosed and Abandoned Homes, considerations Evaluate HUD Risk Score

19 1. Purchase Foreclosed and Abandoned Homes, considerations (continued) Aim for Stabilization, not necessarily Revitalization Tipping Point Areas Purchase worst first Unit must be marketable at the end of the day

20 Links/Resources Neighborhood Stabilization Program Recipients Manual %20Recipients%20Manual.pdf GA DCA, Neighborhood Stabilization Program 1: Home Buyer Tax Credits: HUD Neighborhood Stabilization Program Data: City of Carrollton: Carrollton Housing Authority:

21 Great, so what s next???