PAWT PAWTUCKET UCKET HOUSING HOUSING AUTHO AUTHORITY RITY HCV - - PowerPoint PPT Presentation

PAWT PAWTUCKET UCKET HOUSING HOUSING AUTHO AUTHORITY RITY

HCV HOMEOWNERSHIP PROGRAM

GENERAL OVERVIEW



PHA is not required to administer a Homeownership Program;



It is voluntary;



The PHA has made a commitment to educating, enhancing and empowering the lives of the people we serve.



The PHA believes that the Section 8 Homeownership is

• ne of the programs that will

allow us to achieve this commitment.

PHA PRELIMINARY REQUIREMENTS

 Be a participant of the Section 8 Housing Choice

Voucher Program for at least ONE year

 Must be a participant in “good standing”:  Do not currently owe money to the PHA under a

repayment agreement and

 Have had good rental payment history while on

the Section 8 Housing Program.

EM EMPLOYM PLOYMENT ENT RE REQUIRE QUIREME MENT NT

 At least one adult family member must

be employed full-time (30 hours per week)

 Employed for one year  Requirement does not apply to an

elderly/disabled family

INCOM INCOME E E ELIGIBLE LIGIBLE

 Minimum gross annual income of

$10,300.

 Public assistance (welfare) cannot be

counted in determining income eligibility requirements.

 Elderly/disabled families are exempt

from this requirement.

FIRS FIRST-TI TIME ME HOME HOMEBUYE BUYER

 To qualify as a “first-time homebuyer”

the family may NOT include:

• Any person who has owned interest in part or

whole of a residence 3 years prior to commencement of homeownership assistance, or

• Any person who currently owns title or

cooperative membership shares.

 First-time homebuyer: also

includes a single parent or displaced homemaker who, while married, owned a home with his or her spouse, or resided in a home owned by his

• r her spouse.

MINIMUM DOWN-PAYMENT

 A 3% down

payment is required.

 Of the 3% - at least

1% must be from the family’s personal resources.

ADDITIONAL ELIGIBILITY REQUIREMENTS

HOMEOWNERSHIP COUNSELING CLASSES

 Must attend and satisfactorily complete a

pre-assistance homeownership and housing counseling program and

 The Homeownership Classes must be

approved by the PHA and in conformance under HUD’s Housing Counseling program.

FOCUS OF COUNSELING CLASSES

 Budgeting and money

management;

 Credit counseling;  Obtaining mortgage

financing;

 Negotiating the

purchase price of home;

 Home maintenance;

and

 Other pre-purchasing

educational information

ELIGIBLE UNITS FOR PURCHASE

 The property

purchased must be a one-unit property or a single family dwelling unit or a condominium

INELIGIBLE UNITS

Cannot buy a multi-family home

\

HQS INSPECTION REQUIRED

 Unit must pass a Housing Quality

Standard inspection

 A professional inspection will also be

done at the request of your financial institution

 The PHA may refuse homeownership

assistance based on the results of each inspection

FINANCING YOUR MORTGAGE

OBTAINING MORTGAGE FINANCING

 You choose which Financial Lender you want

to use;

 The PHA must approve the financing before it

is finalized;

 It is your responsibility to obtain all financing

for the purchase of a home;

 The PHA will refer you to appropriate agencies

for additional financing assistance;

 Financing - must be provided, insured or

guaranteed by the state or federal government;

 Financing - must comply with secondary

market underwriting requirements; or must comply with generally accepted private sector underwriting standards;

 The PHA is not responsible for

any financing or become a co- signer for any financing to

• btain a home;

 The PHA will give you a letter

• f commitment and certification
• f your eligibility for home-
• wnership assistance

 The letter will indicate the

monthly payment you are eligible to receive

 The family is responsible for

payment of all services required for securing financing and actual purchase.

MAXIMUM TERM FOR HOMEOWNERSHIP ASSISTANCE

 Homeownership Assistance will

continue as long as the family and property continue to meet program requirements, but cannot exceed the following:

 If the mortgage is 20 years or longer,

initial mortgage assistance will continue for 15 years from the date of commencement of homeownership

 All other cases are a maximum of 10

years

EXCEPTION ON MORTGAGE TERM – ELDERLY/DISABLED

 The maximum mortgage term of 10

• r 15 years does not apply to elderly/

disabled families

 The family must qualify as an elderly

family at the start of homeownership assistance in order to receive this exception

 If a disabled family qualifies as

a disabled family at any time during receipt of homeowner- ship assistance for the family the exception will apply

CONTRACT FOR SALE REQUIREMENTS

 Meet your Lender’s requirements;  Specify price and other terms of sale;  Specify that the purchaser will arrange

for pre-purchase inspection by an independent inspector;

CONTRACT FOR SALE REQUIREMENTS (CONT’D)

 Specify purchaser will not be obligated to

purchase the unit unless inspection is satisfactory to purchaser and PHA;

 Specify purchaser is not obligated to pay

for any necessary repairs; and

 Must contain a certification that the seller

has not be debarred, suspended or denied participation.

MONTHLY HOMEOWNERSHIP PAYMENT:

Homeownership Payment is the lower of:

1.

The Payment Standard minus the Total Tenant Payment or

2.

The family’s monthly homeownership expenses minus the total tenant payment.

 Payment may be sent to the family

• r lender;

 If the payment exceeds the amount

due to the lender, the Housing Authority must pay the excess directly to the family.

PORTABILITY

 A family may move to another

city/town with homeownership assistance;

 Family must meet that Housing

Authority’s requirements under their Homeownership Program.

MOVING WITH CONTINUED ASSSITANCE

The family may move to a new

unit with either:

• 1. Tenant-based housing or
• 2. Homeownership assistance

DENIAL OR TERMINATION OF ASSISTANCE

 PHA may deny or terminate

homeownership assistance, as well as tenant-based assistance, if the family fails to meet it’s obligations under the homeownership program.

DEFAULT ON PREVIOUS MORTGAGE

The PHA cannot begin home-

• wnership assistance for a family

who has previously received assistance under the home-

• wnership option and who has

defaulted on the mortgage.

RECAPTURE OF HOMEOWNERSHIP ASSISTANCE

 If the family sells or refinances

the home, the PHA shall recapture a percentage of the homeownership assistance.

 The amount of recapture will

automatically be reduced over a 10-year period, beginning

• ne year from the purchase

date, in annual increments of 10 percent.

NOTES: