Acquisition/Rehabilitation Program (for homes that NCHI owns)
Through this program the organization acquires properties in the New Chauncey Neighborhood that are currently in use as rental properties or those at risk of becoming rental properties. All properties found to have substandard conditions are then rehabilitated to meet minimum housing standards.
After rehabilitation is complete the properties are then sold as owner occupied homes to income eligible persons. This program does not provide first mortgage funds; therefore, eligible persons must be able to obtain a mortgage. The amount of mortgage that the eligible person can obtain will determine participation in the program. The property upon completion of the rehabilitation must meet the West Lafayette Housing-Property Maintenance Code.
A) Home Ownership Assistance
For the acquisition with Community Development Block Grant funds and/or HOME funds for resale to an eligible person:
1. Home Ownership Assistance
The desired level of NCHI’s “gap financing”, or the difference between the total costs of the organization and what an eligible person can afford, varies per project. The gap financing will be in the form of a forgivable loan with provisions.
Criteria for projects acquired by other funds:
1. There is no established criteria for private funds unless established by the funding source.
2. The use of other federal or state funds will be determined by the specific funding source.
Homebuyer Assistance Program (for homes that NCHI does not own)
Through this program the organization provides financial assistance for down payment to eligible persons for the purchase of a modest home within the city limits of West Lafayette. The organization does not purchase the property in this program but only facilitates the sale by providing financial assistance to a low to moderate income person who would otherwise be unable to purchase a home.
1. The sale of the property is a traditional transaction where the client finds a home with or without NCHI’s help, makes an offer and obtains a mortgage. Applicants need to be pre-qualified by NCHI and approved by the City of West Lafayette and the NCHI Board of Directors for financial assistance prior to making an offer to purchase a home.
2. The financial assistance is in the form of a forgivable loan of up to a maximum of $20,000. Due to limited funding this program is not always available.
3. The client must obtain a first mortgage and have sufficient funds to cover the remaining portion of the down payment. Lower income persons with limited funds but not less than the required minimum of $500 may apply and upon Board approval obtain a loan for the remainder of the down payment.
Emergency Repair Program
The purpose of the program is to provide emergency repair assistance to low income homeowners. This program has emphasis on elderly and disabled households allowing them to remain in their homes and remain self-sufficient. The property upon completion of the rehabilitation must meet the West Lafayette Housing-Property Maintenance Code.
For all programs
A) Client Eligibility
1. The applicant’s household income cannot exceed the HUD income limits for a moderate income family. The upper limit is 80% of the Area Median Family Income adjusted for family size. Currently, the household income for a family of four cannot exceed $49,300. The income limits are periodically changed by HUD.
2. The applicant is expected to contribute at least $1,000.00 towards the purchase of the home. Extenuating factors may be considered on an individual basis to approve a lesser amount of personal investment, but in no case will the approved amount be less than $500.00.
B) Investment Security/Mortgage
All Programs require that the financial assistance be in the form of a promissory note secured by a mortgage.
a. For forgivable loans the mortgage will be written for 10 years. Included in the mortgages will be the provision that if the property is sold, rented, or transferred within the first 6 years of the mortgage term, the total amount of assistance will have to be repaid. The amount that would have to be repaid is reduced over the remaining years of the mortgage.
b. All other mortgages include a similar provision regarding repayment of the remaining amortized amount if the property is sold, transferred or rented.
C) Deed Restriction
NCHI deeds the property to the Client subject to the restrictions that the Client, and the Client’s successors and assigns, shall use the property only for residential purposes and that the property shall be occupied by the Client, or the Client’s successors or assigns. This restriction shall be valid for a period of 10 years from the date of the deed signing. NCHI may enforce this restriction by an action in equity to prevent use of occupancy of the property in violation of this restriction.
D) New Chauncey Housing Incorporated programs must comply with all Community Development Block Grant and all other federal program regulations as applicable.
E) New Chauncey Housing Incorporated is an organization of the City of West Lafayette and must comply with all local regulations and policies as outlined in the organization agreement.
F) New Chauncey Housing Incorporated is an equal housing opportunity provider.
Amendments to the program policies, procedures and criteria are to be approved by the majority of the Executive Board and are to have written approval by the City of West Lafayette Department of Development.
Exceptions to program purchase, rehabilitation or gap financing limitations due to extenuating circumstances or situations that promote NCHI’s missions or promotes a benefit to a low to moderate income persons that otherwise would not be able to receive the benefit are to be documented by the Executive Director, approved by the Executive Board and approved in writing by the City of West Lafayette Department of Development.