City of Carrollton,

Carrollton Housing Authority

Neighborhood Stabilization Program

Real Estate Services – Sales + Purchases

Purpose of the City of Carrollton

NSP Program

Purchase foreclosed and abandoned homes

Rehabilitate homes and neighborhoods

Sell to qualified home buyers

Create Jobs and/or stabilize job market

What is NSP and Who’s Involved?

Federal, State, Local….

Title III of the Housing and Economic Recovery Act of 2008

GA DCA allocated $54.4 Million to 23 Neighborhood Stabilization Program Projects Statewide

$2.6 Million Awarded to the City of Carrollton Neighborhood Stabilization Program

Builders and Home Construction Contractors, Appraisers, Real Estate Community, Finance Industry, Legal Services, Insurance Agencies, Banks, Local Governments, etc.

Carrollton Housing Authority – Local Management

Prospective Homeowners

Purpose of the City of Carrollton

NSP Program

Purchase foreclosed and abandoned homes

Rehabilitate homes and neighborhoods, going “above and beyond” just rehab

Internet wired

energy star compliant

porches

neighborhood consistency

Sell to qualified home buyers

Create Jobs and/or stabilize job market

NSP Buyer Incentives:

1. Overall Discount

2. Down Payment Assistance

3. Closing Costs

4. And don’t forget Non-NSP

Incentives

NSP Buyer Incentives #1 –

Overall Discount

Properties must be purchased at an overall

discount of 1% of the home value as verified by

an appraisal made within 60 days of purchase.

NSP Buyer Incentives #2 –

Down Payment Assistance

Carrollton NSP offers up to 6-7k down payment

assistance to approximately 15 (+/-) homebuyers,

focusing primarily on those families not exceeding 50%

of the AMI.

Second mortgage instrument (loan agreement, security deed, promissory

note) that is subordinate to the primary mortgage, with the CCNSP as

the holder.

NSP Buyer Incentives #3 –

No Delivery Costs

Purchase price (+) renovation fees (=) sale amount.

Legal fees are typically not included as closing fees to the buyer.

Non-NSP Buyer Incentives –

The Worker, Homeownership, and Business Assistance Act of 2009 extended the federal tax credit of:

◦ Up to $8,000 for qualified first-time home buyers purchasing a principle residence.

◦ Up to $6,500 for qualified repeat home buyers.

Required before April 30, 2010 or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010

Homebuyer Qualifications:

1. US Citizen

2. Must be Primary Residence

3. (Area Median Income) AMI

4. Conventional Loan

5. Credit Counseling

Qualification # 1 & 2 –

US Citizen and Primary Residence

Execute Affidavits

(typically added as stipulation to the Sales

Agreement/Purchase Contract

Qualification #3 – AMI

Participants must have an income at or below 120% the Area Median Income (AMI)

25% of total NSP funds must go towards families that are <50% of the AMI

AMI

1999

AMI

2009

HH

Income

1

Person

HH

2

Person

HH

3

Person

HH

4

Person

HH

5

Person

HH

6

Person

HH

58,520 71,700 30%AMI 15,050 17,200 19,350 21,500 23,200 24,950

50%AMI 25,100 25,100 28,700 32,250 35,850 41,600

80%AMI 40,150 45,900 51,600 57,350 61,950 66,550

120%AMI 60,250 68,850 77,450 86,050 92,900 99,800

HUD figures based on Atlanta-Sandy

Springs-Marietta, GA, MSA

Qualification #4 – Mortgage

• Mortgage

Qualification #5 –

Credit Counseling

All buyers must receive eight hours home buyer education/counseling provided by a HUD-approved housing counseling agency.

Link to HUD-approved housing counseling agencies in Georgia

http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?&webListAction=search&searchstate=GA

Summary –

Verifying Qualification Requirements

US Citizen and Must be Primary Residence

AMI (Income Requirement)

Loan Prequalification

Home Buyer Education

(typically added as stipulation to the Sales Agreement/Purchase Contract)

Purchases

Must be foreclosed or abandoned

Purchase homes with a discount, at a MINIMUM, of 1% below

the as-is appraised value.

Purchase price must be no more than average home purchase

price ($136,400) for Carroll County

Environmental and Historic Review Lead hazard evaluation

pre-1978

Purchase Foreclosed and Abandoned

Homes, considerations (standards)

Purchase foreclosed and Abandoned

Homes, considerations…

Evaluate

HUD “Risk Score”

1. Purchase Foreclosed and

Abandoned Homes, considerations (continued)

Aim for Stabilization, not necessarily

Revitalization

Tipping Point Areas

Purchase worst first

Unit must be marketable at the end of the day

Links/Resources

Neighborhood Stabilization Program Recipients’ Manual

http://www.dca.ga.gov/communities/CDBG/programs/downloads/NSP/NSP%20Recipients%20Manual.pdf

GA DCA, Neighborhood Stabilization Program 1: http://www.dca.ga.gov/communities/CDBG/programs/nsp.asp

Home Buyer Tax Credits: http://www.federalhousingtaxcredit.com/

HUD Neighborhood Stabilization Program Data: http://www.huduser.org/datasets/nsp.html

City of Carrollton: http://www.carrollton-ga.gov/

Carrollton Housing Authority: http://www.carrolltonhousingauthority.com/

Great, so what’s next???