COMMUNITY LAND TRUST (CLT)
AFFORDABLE HOUSING PROGRAM
FORMAL
APPLICATION GUIDELINES
Please Read Carefully
APPLICATIONS
ARE REVIEWED ON A FIRST-COME FIRST-SERVED BASIS.
IF YOU NEED ASSISTANCE, INCLUDING TRANSLATION AND/OR
INTERPRETATION SERVICES, PLEASE CALL LIHP AT 631-435-4710 OR EMAIL LIHP AT CLT@LIHP.ORG
I.
Program Description
The Long Island Housing Partnership,
Inc. (LIHP) will be developing affordable single-family affordable housing
units located in Nassau and Suffolk Counties, New York. LIHP, as developer, will be responsible for
implementing and administering the Affordable Housing Program.
Under the Community Land Trust (CLT) Affordable
Housing Program the homeowner will have ownership of the structure (home) and
there will be a 99-year lease of the land.
An applicant who is determined to be
eligible will be offered a home to purchase as they become available. The
applicant must subsequently begin the home buying process. Should the applicant
not move forward in purchasing the home, LIHP will move on to the next name on
the lottery ranking list.
II.
Program Eligibility
In order to be eligible
to participate in the Program, an
applicant must be a first-time homebuyer, must meet all program
requirements as described in these Guidelines including income limits, homebuyer contribution
requirements and must
have an acceptable credit history as defined
by the standards
contained in these Guidelines. These standards reflect the objective that the
housing being developed
is affordable to and
sustainable by the homeowner.
a)
Income Guidelines
All
homes will be available to income eligible households with income that do not exceed
80% of the area median income for Nassau / Suffolk Counties (AMI) as determined
by the US Department of Housing and Urban
Development (HUD):
Maximum allowable income at 80% AMI:
|
Household
|
Maximum
Total Annual
|
Household
|
Maximum
Total Annual
|
|
Size
|
Household
Income
|
Size
|
Household
Income 1
|
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|
1
|
$ 86,200
|
5
|
$132,950
|
|
2
|
$ 98,500
|
6
|
$142,800
|
|
3
|
$ 110,800
|
7
|
$152,650
|
|
4
|
$ 123,100
|
8
|
$162,500
|
Income limits may
be adjusted annually
based on the HUD
established Nassau/Suffolk median
household income.
1
Includes all income – overtime, bonuses,
pensions, social security, 401K distributions, tips, etc. Total household income minus allowable exclusions cannot exceed
the maximum annual
income listed above for your household size. The Long Island Housing Partnership (LIHP) must project the income that will be received for the upcoming
12-month period. Tax returns will be required for
all household members
whose earnings will be
used as part of the income qualification.
b)
Credit
History Standards
The following credit history standards
will be analyzed
in conjunction with income limits to determine program eligibility:
·
Applicants must have an overall good pattern of credit behavior including a history
of timely payments
for rent, automobile and installment loans, credit cards and revolving loans as described below. If a good payment
pattern has been maintained, isolated cases of slow/late
payments may not disqualify an applicant
for program eligibility.
-
Applicant must not have been
late on rental payments
in the last 12 months.
-
Payments on automobiles and installment loans should reflect no late payments in recent 24 months.
-
Payments on revolving loans
or credit cards should
not have any late payments
in recent 24 months.
·
Applicants must have
a satisfactory income,
credit and employment history.
·
At a minimum, a bankruptcy must have been discharged
at least three years from date of
application for assistance and credit re-established.
·
At a minimum, a foreclosure sale or a transfer of title in a deed in lieu of foreclosure must be at least three to five years old from date of application for assistance.
·
No
outstanding collection accounts or judgments.
·
As part of the credit history and mortgage
ability review, LIHP will utilize the middle credit score of all borrowers
from three national
credit repositories. At a minimum
this credit score must be at least 580. (Higher credit scores may be required by lenders).
·
The credit standards listed above are to determine
program eligibility and do not represent a mortgage approval. The applicant is
responsible for securing a mortgage approval through a responsible lending
institution.
c)
Home Buyer Contribution
Applicants, at time that
the application is submitted
to LIHP, must have a minimum
of 3% of the subsidized sales price in savings
and/or checking accounts
(not a gift) or verifiable liquid assets from their
own funds to apply towards the down
payment. The
amount required for a 3% to 5% or more down payment must be shown in the most
recent bank statements submitted with application. The
bank statements submitted must show the bank name, account holder’s name and
account number with a detailed list of transactions. At a minimum, the applicant
should have 5-10% of the sales price for down payment and closing costs.
d)
Citizenship
Each
applicant must be a U.S. Citizen or a Qualified Alien, as defined at 8 USC
1641.
III.
Gift Letter
LIHP
will allow a gift letter from an immediate family
member stating that the money provided
is in the form of a gift and will not have to be repaid. This letter must be signed, notarized and submitted with the application. This gift contribution cannot be
used towards meeting the
required minimum 3% home buyer down payment contribution.
IV.
First-Time
Homebuyer Requirement
This program is limited
to first-time
homebuyers only as described below:
·
A household
that has not owned
a home during the three-year period
immediately prior to the date of application for assistance is considered
a first-time
homebuyer.
·
Applicants may own vacant land or a vacation
timeshare provided that they have not
received the benefits of the mortgage interest deduction and/or property tax deduction during
the prior three years from date
of application
for
assistance.
·
Applicants who do not hold title to a home but did receive the benefits of the mortgage
interest deduction and/or property tax deduction during the prior three years from date of application
are not considered first-time homebuyers.
·
Please
contact LIHP with any questions regarding this requirement.
V.
Housing
Type
The
homes available through the Program are newly constructed single-family homes.
The homes are currently planned in Nassau and Suffolk Counties. Please note that the homes will be
constructed in phases over multiple years.
VI.
Purchase
Price
The projected unsubsidized purchase price of
the home will be based on the home being offered ad selected. (All grants are
subject to funding availability and final approval).
VII.
Residency
Requirement
Applicants must occupy the property
as their Principle
Residence.
VIII.
Re-Sale
Restrictions
There will be restrictions
placed on the homes to maintain
affordability upon future home re-sales.
IX.
Pre-Purchase
Mortgage Counseling
All income eligible applicants are required to attend
homebuyer pre-purchase mortgage counseling. Certified counselors through the Long Island Housing Partnership (LIHP) will conduct the
counseling. There is no charge for the counseling.
X. Mortgage Ability
Applicants must have adequate resources and credit to
qualify for a home mortgage. LIHP can assist
qualified applicants in securing a mortgage. However, it is the sole responsibility
of the applicant to secure a mortgage. Applicants must submit to LIHP all standard
documentation required for mortgage processing, including signed copies of the
last three years of their Federal Income Tax Returns, W-2 forms, 1099
statements, four (4) most recent consecutive pay stubs, two (2) most recent,
consecutive months bank statements (all pages) and investment accounts showing
assets needed for down payment and closing costs. This documentation is
required for all household members age 18 and over. Applicants should also have a good credit
record and stable earnings history.
LIHP will conduct a mortgage ability analysis to assess
an applicant’s ability to obtain a mortgage and to sustain homeownership. Factors to be considered in this analysis
include income, employment, down payment, credit history and adherence to
program guidelines.
All loans to finance the purchase of the home will be
reviewed to ensure that they meet program guidelines.
XI. Affordability
To purchase the home,
applicants must have:
a)
Sufficient income
to pay the monthly mortgage payment, including loan principal, interest, property
taxes, and insurance premiums. Applicants must also have sufficient funds for a
down payment and closing costs estimated at 5-10% of the sales price; and
b)
The ratio of total monthly housing
cost i.e. mortgage payments, property taxes, insurance premiums plus other debt
(e.g. credit cards, car payments, school loans, etc.) to monthly household
income may not exceed 45%.
Affordability
will vary depending on income, sales price, insurance requirements, interest
rates, property taxes, and buyer down payment.
XII. Restrictions
Mortgages must be
with a recognized lending institution. The following types of mortgages are not permitted:
1.
Private
mortgages;
2.
“No
Doc” Loans, 100% financing,
and 80/20
loans;
3.
203K loans;
4.
Adjustable rate
or interest only loans; and
5.
Non-occupying Co-Borrowers are not permitted.
XIII. Asset
Limitation Policy
After deducting down payment and estimated
closing costs, any household
with net liquid assets
more than 25% of the unsubsidized
sales price, will be referred to the specific program’s committee. The committee
will examine the applicant’s full economic situation
and other possible extenuating circumstances to determine
if they would be able to purchase
a home without
the assistance. If it is determined that because of its assets, a household would be able to purchase
a home without
the assistance and if no relevant
extenuating circumstances exist, the household will be deemed ineligible for the Long Island Housing Partnership program to which it applied.
XIV. FIRST-COME FIRST-SERVED
APPLICATION PROCESS
To
be considered for the Program, applicants must submit an Application,
together with all required documentation, by the deadline. Applications
will be reviewed on a first-come first-served basis in the order in which they
are received until the waitlist is exhausted or a qualified buyer closes on the
purchase of the properties whichever occurs first. Upon sale of all the Units
subject to the Program, no further waitlist will be maintained.
Applications
are available and can be submitted on LIHP’s website at https://www.lihp.org/clt.html
The
Application and all required documentation must be submitted by the required
timeframes to be considered for the purchase of a home. If the required
documentation and fee is not submitted by such date, the applicant will be
deemed ineligible for the Program.
Please note, only
completed applications with required documentation and $100 application fee that
meet all program guidelines will be considered for this program.
APPEALS:
Applicants who are deemed ineligible may appeal the
determination by submitting a request to LIHP. The appeal request must be in
writing and must be received (together will all documentation) by LIHP
within five (5) calendar days of the date of LIHP’s notice to applicant of the
determination of ineligibility. The appeal must state the basis of the appeal
and contain documentation to support the appeal. Please note that, if the
applicant was deemed ineligible due to failure to submit required documentation
within the required time frame, then, no appeal will be granted unless the
applicant submits the remaining required documentation with the appeal request
within the timeframe required. The appeal will be promptly reviewed and the
applicant advised of the final determination by email. Notice to LIHP of an
appeal request can ONLY be submitted via a file-specific link that will be
provided by LIHP.
FAIR HOUSING AND NON-DISCRIMINATION
LIHP
is committed to promoting fair housing, equal opportunity, and
non-discrimination in compliance with all federal, state and local laws,
including, but not limited to, the Fair Housing Act, as amended by the Housing
for Older Americans Act, the Americans with Disabilities Act, the Civil Rights
Act, and the New York State Human Rights Law and all Fair Housing Laws will be
followed. The LIHP staff is available to assist with the application, and
answer questions about eligibility requirements. In furtherance of this policy,
LIHP shall not discriminate on the basis of race, creed, color, national or
ethnic origin, sex, sexual orientation, gender identity, familial status,
source of income, religion, disability, veterans’ status, age, or any other
basis prohibited by law.
LIMITED ENGLISH PROFICIENCY AND ACCOMMODATIONS
LIHP
will take reasonable steps to ensure that persons with Limited English
Proficiency (LEP) and persons who are in need of assistance or who have a
limited ability to speak, read, or write English, will have meaningful access
and an equal opportunity to participate in the Program. Interpreters,
translators and other aids needed to comply with this policy shall be provided
as reasonably necessary. If you have any questions regarding the guidelines, or
need assistance including translation and/or oral interpretation services,
please call LIHP at 631-435-4710 or contact LIHP at clt@lihp.org .
Disclaimer: It is understood that this is not an
offer and that terms and conditions may be changed at any time by the Long
Island Housing Partnership, Inc., and Affiliates. It is further understood that
notices by the Long Island Housing Partnership, Inc., and Affiliates may be
made in such manner as Long Island Housing Partnership, Inc., and Affiliates
may determine, including solely by advertisement. It is also understood that entry into the
lottery is not a guarantee that you meet all program requirements to purchase a
home.