Construction Cost Spreadsheet - DOC

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					               09A09      FHLB-DM ASSISTANCE              PROGRAM
                                APPLICATION
            For RURAL and URBAN areas in Greater Minnesota

                    **NEW CONSTRUCTION ONLY**

AFFILIATE   NAME:

ADDRESS OF HOME
FOR WHICH ASSISTANCE
IS REQUESTED (include city/
town and zip code):

HOMEOWNER(S)   NAME(S):



CLOSING   DATE:



                          CHECKLIST OF REQUIREMENTS
_____ 1. PRE-QUALIFICATION: AFFILIATE CONTACTED HFH-MN WITH THE
FOLLOWING               INFORMATION ON _____                    .

Please call HFH-MN approximately two (2) weeks prior to your closing with the
homeowner to start the ―pre-qualification‖ process. This involves discussing
the checklist items and your affiliate’s familiarity with the items required
for funding under this program.

When you contact HFH-MN to initiate the pre-qualification process, please have
the following information ready:

     Date of closing
     First mortgage amount
     Mortgage term (months) & monthly payment amount
     Market value appraisal amount
     Cost of land / property (if purchased) OR value of land / property (if
      donated)
     Cash construction costs (total)
     Developer’s fee amount
     Other cash sources & sponsorships (this includes donations made
      specifically to the house—it does NOT include general donations made to
      the affiliate)

                                        -1-
     Family income: review income level, sources & needed documentation for
      income verification purposes.

_____ 2. EXHIBIT A: CONSTRUCTION COST WORKSHEET AND ITEMIZED
SPREADSHEET
FHLB requires that we substantiate the exact costs of the home. All costs must
be appropriately categorized as requested on the Worksheet. The Guide to Cost
Categories will assist you in completion of this form (see page 4 of the
application). In addition to the Worksheet, provide a supporting spreadsheet
preferably from the affiliate’s accounting system with a detailed accounting
for all cash expenditures, plus in-kind materials, in-kind professional labor
and land costs.

     Exhibit A - Construction Cost Worksheet
     Itemized cost spreadsheet (including in-kind material and in-kind
      professional labor)
     If land was donated, please provide a copy of the warranty deed
      documenting the donation




_____ 3.   EXHIBIT B: HOMEOWNER AND PROPERTY DATA SHEET AND CALCULATION
OF              INCOME WORKSHEET

NOTE: Many affiliates find it useful to complete Exhibit B and accompanying
written income verification evidence before closing so that any missing
documentation can be requested from the homeowner prior to closing and obtained
at the closing.

The verification of family income is a very important element of qualifying for
funding under this program. Income cannot exceed the income guidelines. The
affiliate must independently verify the family’s income. Please submit the
following documentation:

     Exhibit B - Homeowner and Property Data Sheet
     Calculation of Income Worksheet
     The Habitat for Humanity application form.
     Tax return for year the family was selected by your affiliate to receive a
      house, (not the year they applied). Affiliates may need to request the
      appropriate tax return prior to closing since the tax return received with
      the homeowner application may be for an earlier year.
     ONE of the following must accompany the tax return:
         o Written employer verification of income letter (preferred)
         o W-2 forms that correspond to the tax return for the year of
           selection
         o Two months of pay stubs with sufficient data to determine Year-To-
           Date income


                                        -2-
     Child support/alimony confirmation. The affiliate must verify status of
      such payments with the appropriate government agency and get documentation
      in writing.
     SSI verification.    It may not show up on a tax return.   Must be
      documented.
     If applicable, to document self-employment income, please provide two
      years of Tax Returns and corresponding Schedule C’s.
     Any other documentation that further explains the family income story,
      demonstrating that income is below the limits.

       ALL SOURCES OF INCOME, EARNED AND UNEARNED, MUST BE VERIFIED.


_____ 4.   EXHIBIT C, D, E AND F:      FIRST AND SECOND MORTGAGES AND NOTES
Please include a copy of the signed and recorded first and second mortgages and
mortgage notes. Do not send original notes. The mortgages have been signed and
recorded with the county recorder (copies of mortgages must show recording
data).


_____ 5.    EXHIBIT G:      RECORDED DEED RESTRICTION
Please include a COPY of the recorded Deed Restriction (please keep originals
for your files). A copy is available on our website. Please make sure you are
using the most current version, which displays 09A09 Deed Restriction in the
footer.


_____ 6.   EXHIBIT H:      PROPERTY APPRAISAL (INCLUDING A PHOTO OF HOME)
Copy of the property appraisal is attached as Exhibit H. (This is a NEW
requirement of the FHLB.)


_____ 7. EXHIBIT I:       $675 PROCESSING FEE
A check in the amount equal to 7.5% of the total FHLB grant ($675) made payable
to Habitat for Humanity of Minnesota is attached to this Application as
EXHIBIT I. The fee is designed to help cover the costs of applying for and
administering funding of this program.


_____ 8.   EXHIBIT J:       AFFILIATE INCOME GUIDELINES
Affiliate's Family Income Guidelines for families selected this year is
attached as EXHIBIT J. Affiliate’s Board has designated the method of applying
FHLB funding (we highly recommend that you reduce second mortgage amount). You
will need to submit a copy of your affiliate’s maximum and minimum family
income guidelines for families selected this year. Your Board of Directors
must authorize the use of this funding and designate the method of applying the
funding to the purchase price (hopefully, a reduction in the second mortgage
amount).


_____ 9. EXHIBIT K:        PURCHASE AGREEMENT

                                         -3-
Homeowner and affiliate have signed a Purchase Agreement. Use of a Purchase
Agreement is required. A standard form Purchase Agreement is available for
your use. Please be sure the correct grant amount of $9,000 is used.


_____ 10.   EXHIBIT L:    CLOSING STATEMENT / HUD-1
Homeowner and affiliate have signed a Closing Statement detailing sources and
uses of funds to acquire the home.

Use of a Closing Statement is required. Please include the amount of the first
mortgage, the second mortgage and the $9,000 FHLB Deed Restriction on the
Closing Statement.

****PLEASE NOTE, the mortgages and deed restriction must not exceed the
appraised market value.****

_____ 11.    EXHIBIT M:    PRIVACY NOTICE
Homeowner has signed the privacy notice. Please keep originals for your
records.



                          Guide to Cost Categories
Following is a guide to help you categorize home costs into the appropriate
categories on the FHLB (and CRV) Construction Cost Worksheet. (Please note,
some categories may not be applicable to you.)


General Construction
Excavation, foundation, framing


Interior Finishing
Insulation & related, sheetrock, millwork, doors, cabinetry, appliances,
flooring, paint, accessories


Exterior Finishing
Sheathing, weatherproofing, exterior doors & windows, siding, soffit & facia,
gutters


Energy Conservation (elements as defined under the Green Communities Criteria)
    High-efficiency furnace (92% AFUE or better)
    Set-back thermometer
    Timer or humidistat controls
    High-efficiency water heater
     — Tankless
     — High capacity w/ off-peak heating program
    Energy Star appliances and/or lighting
    Energy Star or Home Energy Rating System (HERS) verification fees
    High-performance insulation (Icynene, ICF, or otherwise)
                                      -4-
     Radiant in-floor heat
     Solar power components


Accessibility/Visitability
    Accessible plumbing fixtures (walk-in bath, extended sink, single-lever
     faucets etc.)
    Accessible kitchen features (range, fridge, counter height, pull-out
     cabinetry, etc.)
    Grab bars and/or blocking
    Lever door handles
    Rocker switches
    Framing – 40‖ hallways, 60‖ complete clearance bathroom, 36‖ doorways, 60‖
     complete clearance kitchen




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