NEIGHBORHOOD STABLIZATION PROGRAM (NSP)
PROGRAM SUMMARY
DOWNPAYMENT ASSISTANCE/REHAB PROGRAM
COMMUNITY DEVELOPMENT BULLETIN #1
Thank you for your interest in the City of Medina’s Neighborhood Stabilization Program (NSP). The attached information will briefly describe requirements for participation. An application is attached for those interested.
Eligible Applicants can receive up to $35,000 in assistance; $40,000 if lead hazards are present:
- Min. Down payment Assistance: $1,000.00
- Min. Rehabilitation Assistance: $1,000.00
· Max. Down payment Assistance: 10% of the purchase price with a maximum of $10,000.00.
· Max. Rehabilitation Assistance: $34,000 ($39,000 with Lead Based Paint Hazards)
Eligible Buyers:
- Household gross income at or below 120% of median Income (see chart page 2)
- Pre-qualified for a fixed rate loan through a lending institution
- Contributing a minimum of $500. (either closing costs or down payment)
- Principal, Interest, Taxes & Insurance will not exceed 32% of gross monthly income
- Willing to complete 8 hours of homebuyer counseling (paid for by the program)
- Willing to allow the program to bring the home up to the State’s Residential Rehab Standard
Eligible Properties:
- Single-family homes in the designated target area; see attached map.
- Foreclosed Upon and/or Vacant for 90 days
- Purchase price 1% less than the Appraised Value (full appraisal must be used)
ABOUT THE PROGRAM
The City of Medina has obtained a grant from the State of Ohio. The intent of the Homeownership Program is to provide incentive for families to purchase foreclosed and/or vacant properties in the target area including funding to repair vital systems in the home and if funding remains to address items such as energy efficiency. The program operates on a first-come, first-serve basis. The City hopes to be able to address 3 homes in the target area. The NSP Program can provide 10% of the purchase price with a maximum of $10,000.00 towards the purchase of an eligible property. Homebuyers participating in the program will be required to attend a series of Homebuyer counseling sessions which will be paid for by the program. All homes will be inspected prior to closing. Work on all homes must be competitively bid. Construction Management will be taken care of by the program.
All homes must at a minimum meet local building codes and the State of Ohio Residential Rehabilitation Standards within six months of occupancy. Funding will be provided in order to address these requirements as well as (if funding allows) address energy efficiency concerns, safety concerns, affordability improvements and functional improvements. The combination of down payment assistance and rehabilitation assistance may not exceed $35,000.00 ($40,000 when addressing lead hazards). As this program is executed in two parts, two mortgages (one for the down payment and one for the rehabilitation component) will be necessary. In exchange, the buyer agrees to own and maintain the home for the affordability period. The affordability period is dependant upon the amount of funding utilized by the buyer as follows:
A) Down payment assistance/rehab loans of $14,999 or less will be in the form of a 5-year deferred, 100% forgivable loan; i.e., for every year of occupancy 20% of the principal loan balance is forgiven until the end of the 5th year at which time the loan is fully forgiven.
B) For loans of $15,000 UP TO $39,999, the assistance will be in the form of a 10-year deferred, 100% forgivable loan; i.e., the loan will be forgiven at the rate of 10% for each year of occupancy until the end of the 10th year at which time the loan is fully forgiven.
Both loans will be in the form of a mortgage and promissory note with a declining payment agreement. NO PAYMENTS, NO INTEREST, AND NO FINANCE CHARGES WILL APPLY. A walk-away policy has been established by the City. Should the home you are purchasing be considered a walk-away (not able to be brought up to code within the funding available), you will be notified.
Household Income Limits by Family Size
FOR ALL APPLICANTS
|
Family Size
(Persons)
|
Middle - Low Income
(120% of MI)
|
Family Size
(Persons)
|
Middle – Low
Income
(120% of MI)
|
|
1
|
$54,450
|
4
|
$77,750
|
|
2
|
$62,200
|
5
|
$84,000
|
|
3
|
$70,000
|
6
|
$90,200
|
Source: HUD FY 2009
To download a copy of the NSP application, please click here.
To download a copy of the NSP target area map, please click here.
To download a copy of the NSP Fair Housing Documents, please click here.
*Note: Fair Housing Documents must accompany all applications