The City of Lauderhill: Neighborhood Stabilization Program (NSP)

The City of Lauderhill has been approved to receive $4,293,288 in emergency assistance from the Department of Housing and Urban Development (HUD) through the Community Development Block Grant (CDBG), Neighborhood Stabilization Program (NSP).

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NSP AMENDMENT

APPROVED NSP REALTY FIRMS

NSP PROPERTY LISTINGS

Quarterly Performance Reports
period ending 12.31.09
period ending 03.31.10

The purpose of the City’s NSP program is to facilitate the purchase and rehabilitation of vacant foreclosed and abandoned properties that might otherwise become sources of abandonment and blight within the community.

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Purchase Assistance Program One
The Purchase Assistance Program One is a Down Payment and Principal Buy Down program which will provide the lesser of $50,000 or 20% of the sales price for a home that has been abandoned or foreclosed. Applications will be accepted on a first ready first served basis. Applicants are responsible for finding eligible homes located within the boundaries of the City of Lauderhill (Condominium, Townhome or single family residences) which must serve as your primary residence.

Purchase Assistance Program Two
The Purchase Assistance Program Two is a Down Payment and Principal Buy Down program which will provide the lesser of $50,000 or 20% of the sales price for a home that is City owned and has been rehabilitated. The inventory of homes will be properties which have been previously abandoned or foreclosed. The home must serve as your primary residence.
 

PLEASE NOTE: Registration for this program will occur through a lottery for the general public and City employees.

Home Repairs for NSP
The City has also set aside additional funds through NSP to provide minor home repair assistance to homes purchased by the City of Lauderhill and/or the Lauderhill Housing Authority for resale.

The City will provide up to $40,000 in funds for necessary repairs and costs associated with purchasing those units.

The repair process will occur immediately after the property is purchased. Repairs will address building code violations, health/safety repairs, energy efficiency and other minor repairs. Repairs will be undertaken by licensed and insured general contractors before the units are sold to the public.

This NSP purchase and home repair program is available to eligible applicants (low to middle income buyers) who are able to qualify for a mortgage. Maximum income limits are established by the Federal government and are subject to change.

Applicant Requirements:

• Applicants do not have to be first time home buyers BUT must not own a home, in whole or in part, at time of application and prior to closing on the purchase of a NSP eligible property

• Applicants must first attempt to qualify for a primary mortgage in order to receive assistance from the City. This requires reasonable to good credit as determined by the lender

• Purchase assistance applications will not be accepted without a mortgage pre-approval from a lender

• Applicants must sign the City’s mortgage and promissory note. The City’s mortgage (typically a second mortgage) is forgiven after 5, 10 or 15 years – depending on the amount of assistance you receive

• Total household income cannot exceed 120% of the area median income. Please see income guidelines.

• Applicants must attend a HUD- approved 8 hour homebuyer education class prior to closing

• Applicants must have verifiable income and assets

Program Benefits:

• NSP funds can be used to pay for a portion of the lender’s required down payment, 100% of closing costs or assist with reducing mortgage principal balance

• Ability to purchase property at a discount

• Below market interest rates may be available from your lender per program underwriting guidelines

•  Reduced closing costs

• Fixed rate term for 30 to 40 years

• Liberal qualifying ratios

• Assistance with the home buying process

Eligible Properties:

• Single-Family Homes

• Townhomes

• Condominiums/Villas

• Limitations on maximum sales prices - $280,642

• All properties must have an inspection

• All properties must be foreclosed upon and vacant pursuant to HUD definitions

• Properties must be purchased at a 5% discount. Discount must be based off an appraisal completed no older than 60 days from date of purchase contract

• Short sale purchases, investment or second homes purchases are not permitted under this program

Documentation Verified to Determine Eligibility:

• Completed application and disclosures with signatures and date

• Proof of citizenship or legal residential status

• Three (3) pay stubs for all household members over 18

• Six consecutive (6) bank statements for all household members who have accounts

• Other assets - 401(k), retirement/pension, IRA, CDs, annuities, etc.

• Life insurance policy type and cash value (if applicable)

• Self-employment income statement with schedule C, E, or F

• Social security, supplemental security income (SSI), and disability benefits

• Proof of unearned income, child support/alimony, contributions and gifts

• Statement for scholarships, grants, and veterans administration benefits

Terms of Assistance:

0% interest, deferred payment loan secured by a mortgage and note. The loan is forgivable in its entirety at the end of the term. The term begins the date of the closing, provided the title remains under the ownership of the original purchaser. There will be two loans, one loan for the purchase and one loan for repairs.

Homeownership Assistance Amount Affordability Period
Under $15,000 ............................................5 years
$15,000 to $40,000 .....................................10 years
Over $40,000 .............................................15 years

Standard HUD Guidelines
There will be a yearly write-down of the loan after the end of each full year. The write-down will be equivalent to 1/5th, 1/10th or 1/15th of the mortgage depending on the term. The mortgage and note shall provide for pro-rated repayment, which shall be due if the home is sold, title is transferred or conveyed, or the home ceases to be the primary residence of the owner during the affordability period.

DOWNLOAD THE NSP APPLICATION