Includes all income – overtime, bonuses, pensions, social security, 401K distributions, tips, etc. Gross income cannot exceed the maximum annual income for your family’s size. LIHP must project the income that will be received for the upcoming 12- month period. Tax returns and income documentation will be required for all household members listed on the application. Income limits are subject to change annually pursuant updated annual income limits as established by HUD.
Residency Guidelines
The units must be owner-occupied as per the Town of Islip.
Asset Limitation Guidelines
The mission of LIHP and this Program is to provide affordable housing opportunities to those who, through the ordinary, unaided operation of the marketplace, would be unable to secure decent and safe homes. Therefore, there is an established limit on the amount of assets a household may have to be eligible for this program. After deducting the purchaser’s cash investment and estimated closing costs, any household with net liquid assets and equity in real property of more than 2.5 x the purchase price will be deemed ineligible for this program. Equity in real property IS INCLUDED in the asset calculation. Transfers of real property made up to 2 years prior to the date that this program’s application was signed by the applicant will be included in the asset calculation. Please note that an applicant shall be required to sell any residences prior to closing on an affordable/workforce senior condominium unit.
Age-Restricted Occupancy Guidelines
The units are restricted for “Senior Citizens.” Pursuant to the Islip Town Code, a "senior citizen" shall be defined as any person 55 years of age or older. The senior citizen's immediate family is limited to the senior citizen's spouse, children and grandchildren 19 years of age or older. Adults under 55 years of age may be admitted as permanent residents if it is established to the satisfaction of the Town Board that the presence of such person is essential for the physical care or economic support of eligible older persons.
Credit History Guidelines
The credit standards listed below 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. 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 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.
· 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).
Mortgage/Affordability Guidelines
Unless purchasing for cash, applicants must have adequate resources and credit to qualify for a home mortgage. They should have had no foreclosures in the last five (5) years and no bankruptcies in the last three (3) years. Eligible applicants will be required to attend LIHP’s pre-purchase counseling program. LIHP assists qualified applicants in securing a mortgage. However, it is the responsibility of the applicant to secure a mortgage. Applicants must submit all standard documentation required for mortgage processing, including SIGNED copies of the last three (3) years of their Federal Income Tax Returns, most recent W2-forms and/or 1099 forms, last four (4) most recent consecutive pay stubs (most recent pay stubs must indicate year to date gross income), most recent two (2) months bank statements, most recent investment accounts and retirement accounts, showing assets needed for down payment and closing costs.
· Applicants should have approximately 10% of the sales price available for down payment and closing costs (of which 3% must come from your own funds not a gift – remaining may be a gift).
· A good credit record and stable earning history is also required to qualify. If you do not currently have a good credit record or a stable earning history it is not a good idea to apply at this time.
· 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%.
· The following are not acceptable: (1)Private Mortgages; (2) Mortgages that are not with a recognized lending institution; and (3)‘No-Doc” Loans, 100% financing and 80/20 loans
Home Buyer Contribution/Gift Letter Guidelines
Applicants, at time that the application is submitted to LIHP, must have a minimum of 3% of the purchase 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% 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 expect to need approximately 10% of the sales price for down payment and closing costs. 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.
Citizenship Guidelines
Each applicant must be a U.S. Citizen or a Qualified Alien as defined at 8 USC 1641.
Pre-Purchase Mortgage Counseling
Eligible applicants are required to attend homebuyer pre-purchase counseling. Certified counselors through LIHP will conduct the counseling. There is no charge for the counseling.
Income Recertification
Any applicant determined by LIHP to be eligible who does not enter into a contract to purchase a home within six (6) months of the date of the income eligibility determination will be required to have their income eligibility recertified. The recertification process requires that the Applicant resubmit copies of four (4) current paystubs and copies of personal financial information to determine whether they still meet the eligibility requirements of the program.
Resale Restrictions
To maintain the affordability of the homes, resale restrictions will be placed on each unit and recorded against the unit. Please see Exhibit A attached to these Program Guidelines for terms of the Resale Restrictions.
LOTTERY APPLICATION PROCESS
All applicants will be ranked and considered for the program through the use of an electronic Lottery and not on a first-come, first-served basis unless the number of applications received during the Lottery application period is less than the total number of available units. Applicants will be notified of their ranking following the electronic lottery. No waitlist will be maintained following the exhaustion of the Lottery waitlist.
HOW TO APPLY
Interested parties may apply to participate in the Lottery by submitting the following: online at https:// lihp.org/developments.html (please click on the tab for Bayport Gardens).
1) The Lottery application
2) All required documentation (a list of required documentation is included with the Application)
3) A non-refundable application fee of $50.00
The $50 non-refundable application fee will be paid through the secure payment service. Upon completing the online application, you will be directed to the payment section. Please follow the payment instructions to make payment by debit or credit card. Upon payment, you will receive an email confirming payment and receipt of your application. Please note that your application cannot be accepted as complete until payment is received.
REVIEW PROCESS
Following the lottery, as an applicant’s name is reached on the waitlist, LIHP will review the file to determine if all required documentation was submitted. If not, then LIHP will send notice to the applicant, by email indicating what documentation is missing. The missing documentation must be received by LIHP within 10 calendar days of the notice date. If the documentation is not received within such period, the applicant will be deemed ineligible and LIHP will move on to the next person on the waitlist. Should applicants be deemed ineligible, LIHP will notify applicants by email and will move on to the next name on the Waitlist.
If all documentation is received within the timeframe, LIHP will then conduct an eligibility review to determine if the applicant meets all Program Guidelines. A letter from LIHP detailing eligibility will be sent to the applicant after a full review of the Application has been completed. An applicant who is determined to be eligible will be offered the home to purchase. The applicant must, subsequently, begin the home buying process with the Sponsor. Should the applicant be deemed ineligible or, if eligible, elect not move forward in purchasing the home, LIHP will move on to the next name on the waitlist.
PLEASE DO NOT FAX OR EMAIL THE FORMAL PROGRAM APPLICATION OR ANY DOCUMENTS.
Applicants should not make an appointment for mortgage counseling until the applicant has received a formal letter from LIHP stating that the applicant is eligible for the Program.
POLICIES AND PROCEDURES REGARDING DUPLICATE SUBMISSIONS FOR LOTTERY PROGRAMS.
These policies and procedures are implemented to promote a fair and equitable lottery process.
Prior to Lottery:
Applicants will only be permitted to submit one application or intake form, as applicable. To this end, LIHP will endeavor, but is not required to, review all submissions prior to the lottery. If it appears that an applicant has submitted more than one application or intake form, then LIHP may reject the additional submission(s). Items to be reviewed include, but are not limited to, (1) submissions from the same address; (2) submissions that list the same household members; (3) submissions that list the same names but with different addresses; (4) submissions that utilize the same email address; (5) submissions that utilize the same phone numbers (home and cell); and (6) such other items as may be determined in LIHP’s sole discretion..
Following a Lottery:
Applicants will only be assigned one ranking number from the lottery. Therefore, if, for whatever reason whatsoever, LIHP becomes aware that more than one submission by an applicant has been entered into the lottery and been assigned a ranking number, then the applicant’s ranking will automatically default to the highest ranked number and the applicant will lose the lower ranked position. For example, if an applicant’s ranking is #10 and #100 from the lottery, the applicant’s position at #10 will be rejected and the applicant will remain ranked as #100.
General Provisions:
LIHP may contact the applicant regarding any uncertainty as to whether more than one application or intake form has been submitted. LIHP may rely upon such certifications, documentation or other information as it deems reasonable, in its sole discretion, in assessing whether more than one submission has been made. If LIHP, in its sole discretion, determines that a submission or ranked position is to be rejected, LIHP may, but is not required to, notify the applicant of same. The Program Guidelines advise applicants of the above and, accordingly, applicants have prior notice of such procedures. Nothing herein shall preclude more than one application from the same address provided the applicants will not be part of the same household for purposes of the program applied for. LIHP makes no guarantee that each duplicate will have been identified and removed from the program.
Effective: July, 2023
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. 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. If you have any questions regarding the guidelines, or need language assistance including translation and/or oral interpretation services, please contact the LIHP at info@lihp.org.
LIMITED ENGLISH PROFICIENCY AND ACCOMMODATIONS
LIHP will take reasonable steps to ensure that persons with Limited English Proficiency (LEP) and persons who need 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 info@lihp.org .
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Disclaimer: It is understood that this is not an offer and that the terms and conditions may be changed at any time by the Sponsor, Town of Islip and/or LIHP. It is further understood that notices by LIHP may be made in such manner as LIHP may determine, including solely by email or advertisement.
EXHIBIT A
RESALE RESTRICTIONS
BAYPORT GARDENS
The following restrictions will be placed on the homes to maintain affordability upon future home re-sales:
a) Ranked Waiting list - Those persons who are still on the initial ranked list after all homes have been sold will be placed on a ranked waiting list.
b) Notification of Intention to Sell Unit - Homeowners wishing to sell their home must complete a "Notice of Intention to Sell" and return it to LIHP at the following address:
Long Island Housing Partnership
180 Oser Avenue, Suite 800
Hauppauge, NY 11788
Attn: Bayport Gardens
c) Resale Price - Sale Price may be set by the current owner; however, the sale price cannot exceed the original sale price adjusted by the Consumer Price Index (CPI) from the time of the original sale price up until that of resale. All other program requirements must be met by new purchaser(s) such as the purchaser(s) cannot earn more than 100% of median income based upon family size.
i. CPI Inflation Calculator - Once the "Notice of Intention to Sell" is received, LIHP on behalf of the Town of Islip will calculate the resale price by using the Federal Bureau of Labor and Statistics CPI inflation calculator located at https://data.bls.gov/cgi-bin/cpicalc.pl
ii. Maximum Resale Price - The price calculated above is the MAXIMUM resale price for the Home. Seller shall not add costs of capital or home improvements to the price.
iii. Time of Original Sale Price - The "time of original sale price" will be the Homeowner/Seller's original closing date.
iv. Time of Resale -The "time of resale" is the date that the LIHP receives the "Notice of Intention to Sell”.
v. Notification of Maximum Resale Price - LIHP will notify a Seller in writing of the maximum resale price.
vi. Resale Price Negotiation - Sellers and buyers may negotiate the price, but it cannot exceed the Maximum set by LIHP.
d) Finding a Buyer - Affordable Homeowners may find a buyer by (1) using the ranked wait list; or (2) if no wait list is established or the wait list is exhausted, Sellers can find a buyer on their own. All buyers, regardless of how they are found, must complete a formal program application and comply with the Program Guidelines.
i. Using the Wait List - LIHP is not a realtor and is not responsible for marketing a Seller's Home or finding a buyer. If a wait list exists, LIHP will review applicants in rank number order (with rank #1 being the first rank number). The first ranked applicant who meets all program requirements will be given the first opportunity to purchase the home. If the applicant with the first rank number does not meet the requirements, LIHP will move on to the next rank number (from #1, to #2, then #3, and so forth) and so on until an applicant is approved to purchase the Home or the wait list is exhausted.
ii. The Seller May Find His or Her Own Buyer - The Seller is responsible for providing LIHP with the buyer’s contact information. The buyer will be required to qualify according to all program guidelines. LIHP will only accept and review one potential buyer at a time.
iii. Use of a Real Estate Agent - Sellers who choose to use a real estate agent shall not rely on the real estate agent to provide the correct resale restrictions and program guidelines to the buyer. Real estate agents are required to follow resale procedures and program requirements.
iv. Buyer Approval - Buyers will be notified of their eligibility status once all steps of the screening process have been completed. Applicant screening is a confidential process. LIHP is not allowed to discuss the status of a potential buyer's application with the Seller or anyone who is not the buyer(s).
e) Formal Program Application & Fee to Buyer - Once a potential buyer is identified, they will be sent a formal program application. A nonrefundable application fee may be required to be paid by the buyer.
i. Mandatory Mortgage Counseling for Buyers - All applicants will be required to attend program and mortgage counseling at the LIHP.
ii. Processing/Screening Fee to LIHP - A fee of 1.0% of the Resale Purchase Price/Contract Price will be paid by the Seller at closing for services rendered by LIHP in screening applicants for program eligibility.
f) Contract & Closing_- The seller is responsible for providing the following documentation to LIHP and should provide a copy of these resale procedures to their attorney to ensure compliance:
i. Contract of Sale - The seller is responsible for providing LIHP with a copy of the fully executed Contract of Sale. The Contract of Sale must include a rider that states:
"This sale is contingent on seller's payment at closing to LIHP of a fee equal to 1.0% of the Purchase Price/Contract Price."
ii. Copy of Contract & Notification of Closing Date - The seller is responsible for notifying LIHP of the closing date, place and time. A representative of LIHP may attend the closing.
iii. Copy of Deed- The seller is responsible for providing LIHP with a copy of the executed deed containing the resale covenants and restrictions.
The foregoing procedures are subject to change in the event new requirements are adopted by the Town of Islip.