HOME American Dream Downpayment Initiative _ADDI_ by chenmeixiu


									                  HOME American Dream Downpayment Initiative (ADDI)
                                 Program Summary

Eligible Applicants:                   Non-profits, units of local government outside of local
                                       HOME Participating Jurisdictions that received an ADDI
                                       allocation, and public housing authorities

Program Description:                   ADDI is an acquisition only program: HOME funds are
                                       used only for downpayment and closing cost assistance.
                                       Pre- and post-purchase counseling of all homebuyers is

Eligible Properties:                   Single family residences, including detached homes, town
                                       homes, condominiums, and manufactured homes
                                       permanently affixed to a foundation. Mobile homes are not

Terms of HOME Funds to Sponsor:        Grant to Sponsor

Eligible Households:                   Households earning 80% or less of area median income.
                                       Special targeting and outreach to public housing residents,
                                       persons assisted by public housing authorities, and/or
                                       current residents of manufactured housing is required.

Terms of Assistance:                   0% interest, deferred payment loan of the greater of
                                       $10,000 or 6% of the purchase price up to $14,999 with a
                                       5 year term

                                       Recapture of funds on a pro-rata basis with transfer or sale
                                       of property within the loan term

                                       HOME loans are secured by a recorded recapture
                                       agreement and promissory note.

HOME Funds Per Unit:                   Between $1,000 and $14,999.

HOME Subsidy Limits:                   Down Payment & Closing Cost Assistance:
                                       Up to $14,999 maximum.*

                                           *This is a maximum. The actual amount provided
                                           should be the minimum required to make the deal
                                           feasible for each specific homebuyer.

                                       In addition, the following cap applies to the HOME down
                                       payment subsidy in all cases:
                                  Homebuyer’s total contribution of cash, grants & gifts
                                  + HOME funds for down payment can not exceed 25% of
                                  the home purchase price without special approval from

HOME Subsidy Limits (con’t)       Note: If the above analysis reflects no need for HOME
                                  down payment assistance, the homebuyer is ineligible to
                                  participate in IHDA’s Homebuyer Programs.

                                  Closing Costs: Up to a maximum of $2,000.00 which is
                                  included within the overall subsidy limit.

Minimum Homebuyer Contribution:   Homebuyer must contribute a minimum of $1,000 towards
                                  downpayment unless sponsor requests waiver, PLUS
                                  closing costs not funded by HOME.
                                  The $1,000.00 contribution may be funded from the
                                  buyer’s own resources, grants, or gifts, but not by other
                                  closing credits (e.g., partial year property tax credits).

Codes & Property Standards:       Entire property must meet Section 8 and IHDA Property
                                  Standards (including all local codes) at the time of
                                  purchase. Sponsors are required to hire or contract with a
                                  qualified inspector, who will perform both the HQS
                                  inspection and a visual inspection for lead based paint as
                                  required by 24 CFR Part 35. An outside home inspection is
                                  also required.

Eligible Costs:                   Eligible HOME costs are limited to $10,000 or 6% of the
                                  purchase price up to $14,999 per unit and include the
                                  1) Downpayment and closing costs as set forth above
                                  2) Project delivery up to 15% of hard and soft costs

Administrative Fees:              Sponsors may take up to the lesser of 5% of their total
                                  HOME Project Funds or $10,000 for administration of the

Program Duration:                 24 months

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