1999-08-23 Regular Meeting - Laserfiche WebLink

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e e HARRIS COUNTY NEIGHBORHOOp REVITlllZATION PROGRAM .... '.. . ..~ .~~.~.~.~:-. ';.~::~.'.:,.'/'{~: '~'..:' ~": ~'. ':~.~;'. Harris County, Texas (the County), .through Southeast Texas Housing Finance Corporation (SETH),a Texas public non-profit has estaEilished a Homebu~ers Program (the Program). The Program is funded through a HOME grant from the U. S. Department of Housing & Urban Development under the Home Investment Partnership (-HOMEn) program. The P/'Q9ram is designed to assist low income home buyers with the purchase of newly constructed single-family residential properties. Assistance under the program may be provided to qualified applicants in the fonn of down payment, and closing cost assislance. GENERAL PROGRAM OVERVIEW The Program is designed to assist low income home buyers purchase affordable, safe and decent housing. The Program is available within the corporate limits of Deer Park, La Porte, Shoreacres, and Tomball, Texas. SETH will administer the Program on behalf of the County Program assistance is provided through the use of down payment assistance and closing cost assistance, to be structured and agreed on by the home buyer, the real estate agent, the mortgage lender, and SETH. Applicants will locate the home they would like to purchase. Mortgages will be provided by conventional low-income loan programs and FHA, VA or USDA-RD home loans. The direct assistance to the home buyer will be up to $10,000, and will be in the fonn of a deferred forgiveness loan. The loan will be forgiven after a five (5) year period (the recapture period) if all Program requirements have been met. A secondary promissory note will be executed by the homeowner in favor of the County, securing the deferred forgiveness loan. The home buyer should anticipate contributing 3% of the purchase price of the home toward down payment costs. There is a minimum investment of $500 from the home buyer. The average purchase price is anticipated to be approximately $70,000.00. The maximum purchase price Will be $115,200. Eligible properties will be newly constructed single-family properties that are for sale and that meet Section 8 Housing Quality Standards (HQS), as well as all applicable local building codes, ordinances, zoning ordinances, and the model energy code. Direct HOME assistance to the home buyer will generally be limited to down payment, closing costs, and principal reduction. In addition. SETH will provide home buyer and homeowner counseling. Each participant must succesfully complete the home buyers course prior to loan closing PROGRAM ADMINISTRATION The Program will be operated in accordance with all applicable rules and regulations of the Department of Housing and Urban Development (HUD) and the County. Administrative procedures used to implement the Program will be added or modified to meet any changes made to such rules and regulations of the above entities that may occur over time. Administrative authority for operation of the Program will rest with the Program Administrator (Administrator) appointed by SETH's Executive Director. The Administrator will serve as the approving office for Program assistance. The Administrator will be responsible for carrying out the processing of applications for assistance, recommendation for Program assistance, identification of property deficiencies, preparation of security documents and any other required fonns, maintenance of Program records as required by HUD and/or the County, and marketing and pUblic relation efforts as needed to promote the Program.