Home Purchase and Rehabilitation

Purpose: The Home Purchase and Rehabilitation Program is designed to assist with the purchase and rehabilitation of properties in the Ourstreet Target Area.  (Click HERE to view Ourstreet Target Area)

These are the guidelines and application for the Home Purchase and Rehabilitation Program, H.P.R. It is very important that you read through each section of the guidelines to fully understand the program.

Assistance to Owners: The Program will provide up to $10,000 for down payment assistance and closing costs and up to $20,000 for rehabilitation of single family properties that are to be owner occupied. An additional amount up to $10,000 is available for lead hazard remediation. The actual amount of assistance will be determined based on MSHDA requirements. Inclusive of all costs, MSHDA funding per unit cannot exceed $37,500.

Eligibility Requirements:

• Properties must be single family properties located in the Ourstreet Target Area.
• Applicant’s income must be between 40% and 80% of the Area Median Family Income.
• All homebuyers must be able to obtain a mortgage with interest rates and closing costs at the best available to borrowers with good credit in the local market. All buyers will be qualified by local lenders to spend at least 25% of their income for housing. More specifically all loans must meet MSHDA requirements.
• Upon closing, ownership must be properly recorded, property taxes shall be paid to date and property insurance must be current.
• Recipients must complete approved pre-purchase counseling, provided by Community Action House.
• Recipients must make a contribution to the down payment of at least 1% of the sales price.
• The lien requirement for homebuyer assistance is based on the homebuyer subsidy. A homebuyer subsidy is the amount of public funds provided which enables a family to buy a home. The homebuyer subsidy is limited to the public funds used to cover: The difference between the market value of the property at the time of sale and the homebuyer’s investment.
• The post rehab appraisal shall not exceed $271,050.
• To be eligible, the project will address all code compliance issues, including outstanding housing violations. Rehabilitation costs related to code compliance issues are given priority. In addition we will consider repairs of items which might fail in the first five years due to age/obsolescence or those which do not meet rehabilitation standards.
• No work will be paid for prior to the City of Holland Ourstreet Program’s involvement in the project or Agreement/Mortgage Signing.
• Tenants shall not be displaced as a result of the project. Documentation of former tenants will be required on vacant rental properties.
• Applications will be taken on a first-come, first-served basis, with applications being considered and stamped on the date the completed application is received by the Ourstreet Office. A completed application includes pre-approval of a loan which meets MSHDA standards and a copy of the Good Faith Estimate and submission of a certificate of completion of pre-purchase counseling.

Owners’ Responsibilities as a Result of Receiving HPR Funding:

• Funds will be provided as a deferred payment loan. When the property is sold or if the conditions of the mortgage are not complied with, repayment of the loan will be triggered.
• Provide all required documentation to the Ourstreet staff in a timely manner.
• Notify Ourstreet staff of any proposed changes to the project and get written approved change orders for variations.
• Three estimates for the proposed rehabilitation are required. These estimates will be from qualified, licensed and insured contractors. Staff will provide assistance in preparing specifications and bidding the project out.
• Work cooperatively with staff to ensure rehabilitation is completed according to specifications.
• After rehabilitation, the owner must maintain the property in compliance with City of Holland Housing code and nuisance ordinances.
• Participants must comply with all applicable regulations including lead based paint requirements.
• Participants must comply with any and all MSHDA requirements.

Program Procedure:

1. Completed applications will be reviewed by Ourstreet Staff to determined eligibility.
2. Any missing information will be provided and questions answered.
3. Verifications of income and assets will be completed.
4. Applicants must complete pre-purchase counseling.
5. An inspection of the proposed property will be completed.
6. Provide the seller and the buyer with the booklet, “Renovate Right.”
7. Buyers will meet with Ourstreet staff to determine rehabilitation work.
8. Rehabilitation specifications will be provided.
9. A risk assessment will be scheduled to determine required lead interim controls work.
10. Prospective owners will work with staff to solicit bids from qualified and licensed contractors. The entire project will be awarded to the lowest qualified contractor.
11. Bids will be reviewed and contractors selected.
12. Loan closing(s) will be conducted.
13. Rehabilitation will begin.
14. Inspections will occur with each billing.
15. Final inspection will occur.
16. Lead clearance exams will be administered if necessary.
17. No payment will be made until the all work is completed. Homebuyers cannot move into the property until the home clears for lead hazards.
 

Household Income cannot be lower than 40% of area median income.  Also, household income must not be higher than 80% of area median income.

If you think you may qualify, please fill out the Pre-Screening Application below under "Attachments" and upload to:mailto:s.harder@cityofholland.com?subject=HPR%20Pre-Screening%20Application

For more information contact:

Sue Harder
Ourstreet Program Coordinator
616-355-1330
s.harder@cityofholland.com