FREQUENTLY ASKED QUESTIONS – ARTIST SPACE FOR SALE How do I apply for artist live/work space for sale through the BRA Artist Space Initiative? When a building is nearing the end of construction, the developer hires a marketing agent to conduct the sales of both market-rate and affordable units. The marketing and sale of the affordable units is done according to a marketing plan that has been approved by the City of Boston’s Fair Housing Department and the Boston Redevelopment Authority’s Compliance Department. Affordable units are sold through an application and lottery process. When affordable units begin marketing, ads run in local neighborhood newspapers that list dates to pick up and return applications for the units. At the same time the ads for affordable units are placed, the BRA sends out a notice by email to all of the artists who have signed up to receive emails through this program with information about the units for sale and how to apply. The applications usually must be picked up in person. (These applications are not the same as the Artist Certification Application, which must also be submitted and approved in order for an artist to be eligible to qualify for an artist preference or to purchase a unit with an artist requirement. Most artists apply for artist certification in advance of applying for artist live/work units, so their certification, which lasts for five years, is already in place.) What materials do I need to submit with my application? The application will list all supplemental materials that need to be included. When you pick up your application you will have the complete list. Generally the materials required include copy of your last two years’ federal and state tax returns, copies of paystubs, copies of complete financial records listing household assets, a pre-approval letter from a bank or qualified lender and other materials. The BRA reserves the right to request additional information at any point in the Income Certification Process. Can I have a co-signer on my mortgage loan? Only when the co-signer is part of the household is this allowed. So the co-signer must be planning to live in the unit, and the co-signer’s income will be included in the total household income calculation. No Guarantors are allowed. After the Application Period A lottery will be scheduled after the application deadline by the marketing agent. Applicants will be notified of the lottery date. The lottery determines the order in which applicants are offered an opportunity to purchase units. Lottery order is adjusted for preferences (ie Boston residents are offered units before non-residents; BRA Certified Artists are offered artist preference units before non-BRA Certified Artists). Financial information is reviewed during an income certification process before an applicant is offered the opportunity to purchase a unit. This entire process usually takes a few months; the timeline is dependent on number of applications and completeness of financial data submitted by each applicant. Once an applicant selected through the lottery process has been found to be eligible based on restrictions, the sale proceeds like a normal real estate transaction. These units have resale restrictions that are in place through a nonfinancial mortgage held by the city: at future resale, units must be sold to households who qualify based on the same income, asset and artist certification restrictions. The maximum re-sale price is set according to a formula for all future re-sales, for instance adding 5% of the initial price paid per year. Owners can recoup costs of investments made into their unit for certain eligible capital improvements. A note about preferences: applicants who do not qualify for the preferences should not be discouraged from applying. Many units are sold to buyers after the supply of eligible buyers who do fit the preferences is exhausted. Income Restrictions See BRA income tables for maximum income limits for purchasers. Application includes a description of various income sources. All income sources should be included in total income. Asset Restrictions For units sold to households with income below 80% of Area Median Income (AMI), household assets (excluding retirement accounts) cannot exceed $75,000. For units sold to households with income between 80% and 120% of Area Median Income (AMI), household assets (excluding retirement accounts) cannot exceed $100,000. Condo fees Units sold in a multi-unit building will have a monthly condo fee that is described within the building’s condo documents. The condo fee amount varies from building to building. What is included in the condo fee also varies (some include heat and/or other utilities, most include maintenance and insurance for common areas). You should read the condo documents so you know what to include in your budget. Resale restrictions Affordable artists units have restrictions that require that when the unit is sold again, it must be to a qualified buyer. The buyer must fit all of the requirements in the unit and building deed. The sales price cannot exceed the maximum resale price as laid out in the unit and building deed. The resale price is generally the initial sales price plus 5% interest compounded annually. The price can also be adjusted to recoup certain qualified improvements that the owner has made to the unit, with the approval of the BRA. When a unit owner first decides to sell, s/he should contact the BRA’s Housing Compliance Department to determined the maximum resale price. The BRA’s Artist Space Initiative keeps a list of artists seeking space and can help a unit owner market your unit at resale if desired. Can I see floorplans or visit the units that are being marketed? Floorplans should be available for viewing or pickup when you pick up your application. The marketing agent will usually schedule a walk-through for interested buyers after the lottery is held. For more information or for reasonable accommodations for persons with disabilities regarding the FP3 applications, please call Maloney Properties, Inc. at (617) 670-2600 x273. Equal Housing Opportunity FREQUENTLY ASKED QUESTIONS – ARTIST SPACE FOR RENT Buildings with both artist live/work space and work-only studios keep a waiting list of artists looking for space. Contact the building managers to find out what is currently available and how to get on the waiting list. See lists on the BRA website page titled Opportunities for Artist Space in Boston.