Wachusett Woods Information
Wachusett Woods and the Town of Holden (the “Town”), are working to provide this affordable housing opportunity at Wachusett Woods, Holden, MA (the “Development”). When completed, the Development will have 39 detached single-family condominium homes of which 6 homes shall be designated as “Affordable Units” and will have three bedrooms.
All Affordable Units will have a “Deed Rider” that will be attached to the deed at the time of closing. This deed rider restricts the amount for which the unit can be resold and requires that the subsequent buyer have a household income at or below 80% of the base area median income. The deed rider ensures that the unit stays affordable in perpetuity. The form of the deed rider will be included with the purchase and sale agreement. A “Deed Rider Summary” is included in the Lottery Application. The Town, the Holden Housing Authority and the Developer will be sponsoring an application process and lottery to rank the eligible applicants for the program. The application and lottery process as well as the eligibility requirements are described in this plan. This packet contains specific information on the background, eligibility requirements, selection priority categories, application process and the affordable housing program that is part of the Development. The Town of Holden and the Developer invite you to read this information and submit an application if you believe you meet the eligibility requirements. This lottery is the first step in the application process and does not assure you a unit. If you are selected in the lottery, you must then be determined to be an eligible buyer by the Holden Housing Authority and secure a 30-year, fixed-rate mortgage from a lender in accordance with DHCD/LIP mortgage standards.
BACKGROUND
Affordable Housing in Holden
A private developer, Wachusett Woods and officials of Holden have collaborated to provide this affordable housing opportunity in Holden. In the Development to be developed a total of 39 single family homes will be built with 6 being designated as affordable and sold to eligible unit buyers at the initial sale of $166,600 it is anticipated that there will be more interested and eligible applicants than available units. The Town and the Developer will be sponsoring an application process and lottery to rank the eligible applicants for the program. The application and lottery process as well as the eligibility requirements, are described herein.
More detailed information can be found in the Chapter 40B Guidelines, Sections III and VI, at: http://www.mass.gov/?pageID=ehedterminal&L=3&L0=Home&L1=Community+Development&L2=Chapter+40B+Planning&sid=Ehed&b=terminalcontent&f=dhcd_legal_ch40bguidelines&csid=Ehed. A version of the DHCD deed rider can be found at www.mass.gov/Ehed/docs/dhcd/hd/lip/lipdeedrider.pdf
ELIGIBILITY REQUIREMENTS
Affordable Housing in Holden
Q: Who is eligible to apply for the affordable units at Wachusett Woods?
Income/asset eligible first-time homebuyers
For ownership projects which are not age-restricted, applicants must be first-time homebuyers.
To meet the definition of a first time homebuyer the household shall not have owned a home within three years preceding the application, with the exception of:
a. displaced homemakers, where the displaced homemaker (an adult who has not worked full-time, full-year in the labor force for a number of years but has, during such years, worked primarily without remuneration to care for the home and family), while a homemaker, owned a home with his or her partner or resided in a home owned by the partner;
b. single parents, where the individual owned a home with his or her partner or resided in a home owned by the partner and is a single parent (is unmarried or legally separated from a spouse and either has 1 or more children of whom the individual has custody or joint custody, or is pregnant);
c. households where at least one household member is 55 or over;
d. households that owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations; and
e. households that owned a property that was not in compliance with State, local or model building codes and that cannot be brought into compliance for less than the cost of constructing a permanent structure.
Q: What is the maximum family annual income and asset eligibility requirement?
A: To be eligible to purchase an affordable unit, annual income and assets must be below the maximum level as described below. Applicants’ income must be able to support a 30-year, fixed-rate that is sufficient to purchase their home.
MAXIMUM INCOME
Maximum allowable household, total income cannot exceed:
Household Size:
1 person - $43,050 2 persons - $49,200 3 persons - $55,350
MAXIMUM ASSETS
For eligible households, the total gross household asset limit is $75,000. Assets include all cash, cash in savings accounts, checking accounts, certificates of deposits, bonds, stocks, and the value of real estate holdings as outlined above, and other forms of capital investment. Income and Assets will be counted in accordance with the LIP program.
Q: Do we need to pre-approval for a 30 year fixed rate mortgage?
A: Applicants are required to submit a pre-approval letter with the application for an amount sufficient to purchase an affordable unit. Households should document that they have sufficient funds for a down payment and closing costs. Non-household members are not permitted to be co-signers on the 30 year, fixed-rate mortgage
The loan must meet meets Local Initiative Program/DHCD standards:
The loan must have a 30 year fixed interest rate through the full term of the 30-year, fixed-rate mortgage.
The loan must have a current fair market interest rate.
(No more than 2 percentage points above the current Masshousing Rate*) * (617) 854-1000 or www.masshousing.com
The buyer must provide a down payment of at least 3%, 1.5% of which must come from the buyer’s own funds.
The loan can have no more than 2 points.
The sales price of the unit is set by DHCD to be affordable to an income-eligible household paying no more than 30% of their monthly income for the 30-year, fixed-rate mortgage. The buyer may not pay more than 38% of their monthly income for their housing costs.
Q: What are the minimum income requirements?
A: To qualify for a 30-year, fixed-rate mortgage loan the total annual household income must be adequate to support the requested 30-year, fixed-rate mortgage amount. Normally a “Housing Debt Ratio” of housing expense to include principal, interest, 30-year, fixed-rate mortgage
insurance, real estate taxes and unit owner’s insurance. The precise ratios and minimum income requirements will vary for each applicant according to the terms of the loan, the amount of the down payment, the interest rate, and other factors but generally the debt ratio is approximately 38%. This means that your housing expenses can not exceed 38% (approximately) of your monthly gross income. For this development the minimum income will be approximately $54,000
Q: What constitutes a household?
A: A "household" shall mean two or more persons who will live regularly in the unit as their principal residence and who are related by blood, marriage, law or who have otherwise evidenced a stable inter-dependent relationship, or an individual.
Q. Where are the affordable units located and when will they be available for occupancy?
A: The affordable units are interspersed in the development as shown on the attached site plan identified by the designation. They are expected to be ready in the fall of 2008.
Q. Why is there a Lottery?
A: The Lottery selection process is for use in the typical situation where the number of affordable applicants exceeds the number of affordable units as we anticipate in this situation.
Q. After the initial Lottery what is the process of selecting an affordable buyer, should the number of applications be, less than the number of affordable units.
A: Applications will be received on a “Rolling Basis” and units will be offered to qualified applicants on a first come first serve basis.
Q. How is the Lottery conducted?
A: Each qualified applicant shall be assigned a number once all required information is received. Those numbers are placed in a lottery pool. The numbers will be drawn until all applicants receive a ranking on the list. The units will be offered to the highest ranked households that need all three bedrooms. For example a household of 6 would have a higher rank than both a household of 4 and a household of
MINORITY APPLICANTS:
SELECTION PROCESS
Lottery Affordable Housing in Holden
Q: How will applicants for the affordable units be selected?
A: Incomplete or late applications will not be accepted. Eligible applicants will be placed in the pools for which they qualify. Affordable units will be offered to the highest-ranking applicants in order of ranking. The applicants will be given a reasonable time in which to apply and qualify for a 30-year, fixed-rate mortgage loan.All applications must be received or postmarked by January 5, 2009.
Q: Who will receive priority for the opportunity to purchase the affordable units?
A: The units will be offered to the highest ranked households that need all three bedrooms. For example a household of 6 would have a higher rank than both a household of 4 and a household of 2.
Q: How are the drawings conducted?
A: Ballots with the registration number for applicant households are placed in all lottery pool. The ballots are randomly drawn and ranked in the order drawn.
Q. Do I/We need to attend the Lottery?
A: Applicants do not need to attend the Lottery to be eligible to purchase an affordable home.
* The lottery program and its requirements are subject to change in Local, State and Federal Regulations.
Applications will be available during normal business hours for pick up at:
Holden Housing Authority
Gale Free Library
You may also call 508-829-9182 or 508-829-0242 to have one mailed to you.
They will also be available on the Town of Holden’s website, http://www.townofholden.net/
Completed applications should be mailed to or dropped off at :
Holden Housing Authority
9 Flagler Drive
Holden, MA 01520
Attn: Lottery
or
Holden Town Hall
Dept. of Growth Management
1196 Main Street
Holden, MA 01520
Attn: Lottery
All applications must be received no later than January 5, 2009. Applications that are late, incomplete, or missing documentation will not be entered into the lottery. There are no exceptions.
Applicants will be notified that their applications have been received and a number code has been assigned to their application.
On December 9, 2008 a Public information session will take place at the Holden Housing Authority Community Room, 9 Flagler Drive, Holden to answer questions about the Lottery process and the development.
The Lottery will be held January 20, 2009 at the Holden Housing Authority Community Room, 9 Flagler Drive, Holden at 6:30 p.m.
Applicants are encouraged to attend but attendance is not required. All applicants will be notified of their lottery status with clear instructions regarding the Purchase and Sale Agreement, obtaining a 30-year, fixed-rate mortgage, reviewing the Deed Rider and the Closing. The Holden Housing Authority will be reviewing income and asset information for final eligibility approval.
It is anticipated that the first affordable unit will be available for occupancy in early fall of 2008.
You may call the Holden Housing Authority at 508-829-9182 or Holden Dept. of Growth Management at 508-829-0242 for information.
ATTACHMENT “A”
Site Plan showing the affordable units.