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BRANDYWINE VILLAGE FRANKLIN_ MASSACHUSETTS

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					BRANDYWINE VILLAGE
FRANKLIN, MASSACHUSETTS
AFFORDABLE HOME OWNERSHIP

MARKETING AND OUTREACH PLAN AND INFORMATION PACKET



General Information

Brandywine Village is located on Brandywine Road in Franklin, MA and is a
development by Marinella Development and comprises 64 single-family, detached homes
on a 47 acre site. There will be a total of 16 affordable homes in this 64 home sub-
division. This lottery will be for the remaining 6 affordable homes. The affordable
home price is $212,250. The affordable homes are available by lottery to income and
asset qualified first time home buyers as further defined in this information packet. There
may be a local preference for up to 3 of the six affordable homes; however, household
size and fair market guidelines will prevail.

Each home has 4 bedrooms and 2.5 baths and is approximately 2,550 sf. The homes will
be built along winding roadways that covey a true neighborhood feeling. The individual
homes have been carefully designed to reflect the New England character to relate the
homes to each other in a pleasing way that assures privacy and a sense of individual
identity while fostering the sense of a neighborhood.

The homes at Brandywine Village are all fee-simple ownership with no common area,
condominium, or neighborhood association fees. All utility services are available at the
homes which will have municipal water and sewer. The homes are constructed with very
high standards of quality control and efficiency.

All affordable units will have a “Deed Rider” that will be filed with the mortgage at the
time of purchase. This deed rider restricts the amount that the home can be resold for and
requires that the subsequent buyer have a household income at or below 80% of the area
median income, at the time of sale/resale. The deed rider ensures that the unit stays
affordable in perpetuity. All applicants must sign an acknowledgment of receipt of the
deed rider.

The application and lottery process as well as the eligibility requirements are described in
this plan.

Applications can be obtained by calling or writing to:

Maxine Kinhart
Administrator’s Office
355 East Central Street
Franklin, MA 02038
508-520-4949

Or available for pickup at:

Franklin Municipal Building
Planning Department or Administrator’s Office
355 East Central Street
Franklin, MA 02038

Franklin Public Library
118 Main Street
Franklin, MA 02038

Or downloaded from: www.franklin.ma.us/Administration/Affordable Housing




INFORMATION SESSIONS

Two Information sessions will be held to answer questions about eligibility requirements,
lottery process, of housing information. It is not mandatory that interested applicants
attend an information session.

The first information session is scheduled for Wednesday, September 24 at 6:00 pm in
the Council Chambers of the Municipal Building located at 355 East Central Street,
Franklin, MA 02038.

The second information session is scheduled for Wednesday, October 8 at 6:00 pm in
the Council Chambers for the Municipal Building located at 355 East Central
Street, Franklin, MA 02038

APPLICATION DEADLINE IS FRIDAY, OCTOBER 31, 2008 AND ALL
APPLICATIONS MUST BE POSTMARKED BY THAT DATE.

Completed applications can be dropped off or mailed to:

Maxine Kinhart
Municipal Building
355 East Central Street
Franklin, MA 02038

LATE APPLICATIONS WILL NOT BE ACCEPTED.
ELIGIBILITY REQUIREMENTS


First-time Homebuyer

Household Eligibility

The members of the household shall not have owned a home within three years preceding
the application, with the exception of:

   a. displaced homemakers, where the displaced homemaker (an adult who has not
      worked full-time, full-year in the labor force for a number of years but has, during
      such years, worked primarily without remuneration to care for the home and
      family), while a homemaker, owned a home with his or her partner or resided in a
      home owned by the partner;
   b. single parents, where the individual owned a home with his or her partner or
      resided in a home owned by the partner and is a single parent (is unmarried or
      legally separated from a spouse and either has 1 or more children of whom the
      individual has custody or joint custody, or is pregnant);
   c. households that owned a principal residence not permanently affixed to a
      permanent foundation in accordance with applicable regulations; and
   d. households that owned a property that was not in compliance with State, local or
      model building codes and that cannot be brought into compliance for less than the
      cost of constructing a permanent structure.

Income and Asset Eligibility:

To be eligible to purchase an affordable home, annual income and assets must be below
the maximum levels as indicated below. There is no minimum income; however,
applicant income must be able to support a mortgage that is sufficient to purchase the
home.

Maximum Income:

To be eligible, the combined annual income for all household members, from all sources
in the household must be at or below eighty percent of the Boston area median income as
defined by HUD (Department of Housing and Urban Development) for the local
statistical area. (Boston MA) Maximum income figures are based on the combined
annual income from all income sources of all income-earning members of the household
and including imputed income on assets. Income includes but is not limited to: gross
wages, retirement income, business income, veterans’ benefits, alimony/child support,
unemployment compensation, social security, pension/disability income, supplemental
second income and dividend income.
FY 2008 Maximum Income Limits (As established by HUD)

Median      80%           2        3        4         5        6         7        8
                          Person   Person   Person    Person   Person    Person   Person
Income      Median
            Household     52,950   59,550   66,150    71,450   76,750    82,050   87,350
85,800      Limits by
            Size


Applicants for affordable units must meet the program income limits in effect at the
time they apply for a unit and must continue to meet the program income limits in
effect at the time when they actually purchase a unit.




Maximum Assets:

The total gross household asset limit is $50,000.

Assets include but are not limited to: liquid assets such as cash, cash in savings accounts,
checking accounts, certificates of deposit, bonds, stocks, individual retirement accounts,
and other forms of capital investments, excluding equity accounts in homeownership
programs or state assisted public housing escrow accounts.


Minimum Household Size/Larger Households Preference

General

Household size should be appropriate for the number of bedrooms in the home. It is
appropriate to set a minimum. The minimum household size for this lottery will be
determined by the need for the 4 bedrooms based on the number of household members.
A maximum household size for the units may be established provided that:

   •     Maximum allowable household size may not be more restrictive than the State
         Sanitary Code or applicable local bylaws, and may not violate state and federal
         civil rights laws.
   •     Maximum allowable household size may not be more restrictive than the Large
         Household Preference established below.
Larger Household Preference

Within an applicant pool first preference shall be given to households requiring the total
number of bedrooms in the unit based on the following criteria:

     a. There is at least one occupant per bedroom.1
     b. A husband and wife, or those in a similar living arrangement, shall be required to
        share a bedroom. Other household members may share but shall not be required to
        share a bedroom.
     c. A person described in the first sentence of (b) shall not be required to share a
        bedroom if a consequence of sharing would be a severe adverse impact on his or her
        mental or physical health and the lottery agent receives reliable medical
        documentation as to such impact of sharing.

A “household” shall mean two or more persons who will live regularly in the unit as their
principal residence and who are related by blood, marriage, law or who have otherwise
evidenced a stable inter-dependent relationship, or an individual.

Lottery drawings shall result in each applicant being given a ranking among other
applicants with households receiving preference for units based on the above criteria.
Household size shall not exceed State Sanitary Code requirements for occupancy of a
unit (See 105 CMR 400).2


The Lottery

The Lottery Application

The application period will be at least 60 days. From September 1 to October 31, 2008.
To ensure the fairness of the application process, applicants will not be required to
deliver application materials and will be permitted to mail them. Applications must be
postmarked by October 31, 2008. No Exceptions will be made.

The lottery application will address a household’s:
   • income
   • assets
   • size and composition
   • minority status (optional disclosure by the household)
   • eligibility as a first-time buyer (for ownership units)
   • eligibility for local preference
   • require a pre-approval for mortgage sufficient to purchase home
1
  Disabled households will not be excluded from a preference for a larger unit based on household size if such larger unit
is needed as a reasonable accommodation.
2
  Note, however, that fair housing exceptions may apply: see HUD Fair Housing Enforcement—Occupancy Standard;
Notice of Statement of Policy, Docket No. FR-4405-01 (1998).
The lottery administrator will verify documentation. (e.g., three prior year tax returns
with the W2 form; 5 most recent pay stubs for all members of the household who are
working, three most recent bank statements and other materials necessary to verify
income or assets).

Applicants are not required to use a specific lender for their pre-approval letter or
their mortgage.

Only applicants who meet qualification requirements will be included in the lottery.

Lottery Procedure

Once all required information has been received, qualified applicants should be assigned
a registration number. Only applicants who meet the eligibility requirements shall be
entered into a lottery. The lottery shall be conducted after any appeals related to the
project have been completed and all permits or approvals related to the project
have received final action.

Ballots with the registration number for applicant households are placed in all lottery
pools for which they qualify. The ballots are randomly drawn and listed in the order
drawn, by pool. If a project has units with different numbers of bedrooms, units are then
awarded (largest units first) by proceeding down the list to the first household on the list
that is of appropriate size for the largest unit available according to the appropriate-unit-
size criteria established for the lottery. Once all larger units have been assigned to
appropriately sized households in this manner, the lottery administrator returns to the top
of the list and selects appropriately sized households for smaller units. This process
continues until all available units have been assigned to appropriately sized applicant
households.

If the project includes units accessible or adaptable for occupancy by disabled persons,
first preference (regardless of applicant pool) for those units shall be given to such
disabled persons, including single person households, in conformity with state and
federal civil rights laws.

The lottery administrator should retain a list of households who are not awarded a unit, in
the order that they were drawn. If any of the initial renters/buyers do not rent/purchase a
unit, the unit shall be offered to the highest ranked household on that retained list. This
list may generally be retained and used to fill units for up to one year. However, other
factors such as the number of households remaining on the list, the likelihood of the
continuing eligibility of such households, and the demographic diversity of such
households may inform the retention time of the list, subject to the approval of the
Subsidizing Agency.

After the initial lottery, waiting lists should be analyzed, maintained, and updated
(through additional marketing) so that they remain consistent with the objectives of the
     housing program and are adequately representative of the racial, ethnic, and other
     characteristics of potential applicants in the housing market region.

     Lottery Example

     This theoretical lottery has an OPEN pool that includes all applicants and a LOCAL
     PREFERENCE pool with only applicants from the local area.

         •   Total applicants in lottery: 100
         •   Total minority applicants: 20
         •   The community in which the lottery takes place falls within the HUD Boston
             Metropolitan Statistical Area which has a minority population of 20.7%.

     1. Determine the number of applicants who claim a LOCAL preference according to
        approved criteria.
     2. Determine the number of minority applicants in the LOCAL preference pool.
     3. Determine the percentage of minority applicants in the LOCAL preference pool.

        Total Applicants in Total Minority Applicants % Minority Applicants in
    L    Local Preference               in             Local Preference Pool
                Pool         Local Preference Pool
               60                      10                     16.7%

         Since the percentage of minority applicants in the LOCAL preference pool is below
         the percentage of minority residents in the HUD defined statistical area (16.7% as
         opposed to 20.7%), a preliminary lottery is required.

     4. The 10 minority applicants who do not have LOCAL preference are entered into
        a preliminary drawing and assigned a rank based on the order of their draw.
        Minority applicants are added to the LOCAL preference pool in order of their rank
        until the LOCAL preference pool has at least as great a percentage of minority
        applicants as the larger statistical area. In this example, 4 applicants will be added
        to the LOCAL preference pool to bring the percentage of minority applicants up to
        21.8%.

Total Applicants in Supplemented To     Total Minority          % Minority Applicants in
        Local Preference Pool              Applicants     S       Supplemented Local
                                      in Supplemented               Preference Pool
                                     Local Preference Pool
                64                            14                          21.8%

     5. Draw all ballots from the adjusted LOCAL pool and assign rankings to each
        household. Preference for appropriately sized households will still apply and all
        efforts should be made to match the size of the affordable units to the legitimate need
        for bedrooms of each household.
     6. Once all units for LOCAL residents have been allocated, the OPEN pool should
   proceed in a similar manner. All LOCAL residents should have ballots in both
   pools, and all minority applicants that were put in the LOCAL pool should remain
   in the OPEN pool as well.

Individuals who have a financial interest in the development and their families shall
not be eligible.

Final Qualification and Closing

Once the lottery has been completed, applicants selected to purchase units must be given
a reasonable pre-specified time period in which they must secure financing.
This lottery is the first step in the application process and does not assure you a
home. If you are selected in the lottery, you must then apply and secure approval
for a mortgage from a bank for a mortgage that meets the following criteria:


            The loan has a fixed interest rate. The rate must be fixed through the
            full term of the mortgage.

            The loan has a current fair market interest rate of no more than 2
            percentage points above the current MassHousing Rate* (see
            www.masshousing.com).

            The buyer may pay a number of points no greater than the prevailing
            industry standard, 2 points.
    
            Minimum 3% down payment is required. Buyers are required to have
             at least .5% of their own funds and must provide proof.

            The buyer may not pay more than 38% of their monthly income for the
             mortgage.

Before a Purchase and Sale Agreement is signed, the lottery agent should submit income
and asset documentation of the applicant to the municipality. Income verification should
include tax returns and W-2s from the past three years, five most recent pay stubs, three
months recent bank statements and 401 K reports, reliable documentation as to other
sources of income and assets. The Municipality will then verify that the household’s
annual income does not exceed 80% of the area median income, or such lower income limit
as may have been established for the particular project. The Municipality will verify that
household assets do not exceed the maximum allowed. Closing of the sale will also be
contingent on the approval of the buyer’s financing.

Non-household members should not be permitted as co-signers of the mortgage.
DEED RIDER SUMMARY (Must Be Returned with Completed Application)

The purpose of this summary is informational only and it is not a substitute for reading
the Deed Rider. The Deed Rider is an important legal document that restricts the sale or
encumbrance of the property and it ensures that the home remains affordable for future
buyers of your property. The Deed Rider remains in effect in perpetuity. You should
read the entire text of the Deed Rider carefully and seek legal counsel to have a full
understanding of your obligations of the Deed Rider in its entirety.

Summary of Deed Restrictions:
    You must occupy the home as your principal residence.
    You may not rent or lease the home.
    You must seek permission from the Town of Franklin and DHCD prior to
    refinancing your mortgage or making capital improvements.
    When you wish to sell the home, you must notify the Town of Franklin and
    DHCD in writing. (Conveyance Notice).
    Once the Conveyance Notice has been received. The Town of Franklin or DHCD
    has 90 days to find an eligible purchaser or to purchase the home. If the owner
    fails to cooperate in resale efforts, the 90-day period can be extended for a period
    commensurate with the time the lack of cooperation continues. If, after 120 days
    after the Conveyance Notice, an eligible purchaser has not been located, the home
    can be sold to an ineligible purchaser; however, it must be sold at no more than
    the maximum resale price. A compliance certificate will be issued to the seller
    and a new deed rider will be recorded with the sale of the home.
    The Maximum Resale Price (MRP) is limited by the percentage change in the
    area median income times the Area Median Income (AMI).
        o Example: the MRP is calculated using the most recently published AMI
             (as determined annually by Department of Housing and Urban
             Development) times the Resale Price Multiplier. The Resale Price
             Multiplier (RPM) is the Sales price divided by the AMI. (Initial Sale:
             $165,000÷82,400=2.00) Upon resale, if the AMI has increased to $90,000,
             then the Maximum Resale Price would be calculated as follows: Resale
             Price Multiplier x AMI = MRP or $90,000 x 2.0 = $180,000. $180,000
             would be the new sales price to an income and asset qualified household.
    There is no guarantee that you will be able to sell your home for the maximum
    resale price.

I certify that I have read the summary of the deed rider and I have been provided a draft
deed rider and that I understand that any affordable home will be subject to the terms of
the deed rider.
Signed:


Applicant/Household Member                   Applicant/Household Member

				
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