 The primary purpose of the Homeownership
Appraisal Gap Financing Program is to
provide financing for the new construction,
and or rehabilitation of vacant,
deteriorated homes in order to increase the
rate of homeownership in Hartford.
The Homeownership Appraisal Gap Financing
Program commits financing to the developer
(for-profit and non-profit), which is then
made available to the homebuyer. The “Gap”
is the difference between the total project
costs and either the appraised value of the
property at closing or the actual purchase
price. Substantial efforts must be made by
the developer to sell the property at or
above the appraised value.
The Homeownership Appraisal Gap Financing
Program Parameters
The City will provide the minimum assistance
to bridge an appraisal gap. Appraisal Gap
Financing will not be provided to projects
with unreasonable or inflated costs. Luxury
items such as swimming pools, Jacuzzis, etc.
will not be eligible for Appraisal Gap
Financing. Appraisal Gap Financing will not
be available as a construction loan or as a
loan to developers. Loans will only be made
to the actual homebuyer/owner-occupant.
Support will be in the form of a 0% loan,
having a seven-year term to the homebuyer.
If the borrower complies with the conditions
of the loan, namely, maintains the residence
as the borrower’s primary residence for the
required periods of occupancy; maintains the
property; complies with the terms and
conditions of any first mortgage; and
maintains appropriate hazard insurance, the
City’s loan will be reduced pro-rata based
upon the time the homeowner has occupied the
unit. The buyer’s first mortgage financing
shall be from sources that finance close to
100% of the appraised value. The first
mortgagee will escrow taxes and insurance.
First mortgages not requiring income
verification are not allowed.
The maximum Appraisal Gap Assistance will be
$20,000 per unit with a maximum of $40,000
on any one property. No more than 20% of the
total development cost can be soft costs
(developer’s fees and profit included). The
amount of the financing provided will be the
lesser of the difference between the total
project costs and either the appraised value
(1st Mortgage Lenders Appraisal) of the
property at closing or the actual purchase
price. A cost certification prepared by an
independent Certified Public Accountant and
paid for by the developer will determine the
total project costs and must be submitted
prior to any funds being dispersed.
Project Underway
Quality, Comfort, Convenience, Value:
These are the hallmarks of the Townhomes
at Dutch Point, a new 58 home
condominium development, located at the
heart of the distinctive Sheldon Charter
Oak neighborhood in Hartford.
The Townhomes have been designed with
the best of modern amenities while
giving a respectful nod to the historic
character of the area. New
tree-lined streets maximize stunning
views of the nearby Church of Good
Shepherd and Colt Park, a central park,
play space and community building.
The Townhomes combine an urban lifestyle
and small town neighborhood charm.
Come experience the best of city living
in Hartford.
|
|
|
Dutch Point developed by The Community
Builders, Inc. in partnership with the
Hartford Housing Authority. For
more information, please call The
Townhomes at Dutch Point Sales Office
toll free at (888) 832-2162 or by email
to dutchpoint@prudentialct.com.
|
Required Periods of Occupancy and Recapture
Provisions
The City’s mortgage will be a 0%,
non-amortizing loan, forgivable after 7
years provided the borrower maintains the
property as their primary residence for a
period of not less than 7 years. Should the
borrower move, sell or transfer title within
the first 5 years the total amount of the
loan will be due and payable. Should the
borrower move, sell or transfer title within
the remaining 2 years, the loan will be
forgiven at the rate of 50% after five full
years, 75% after six full years, and 100%
after seven full years.
For More Information On The Appraisal Gap
Program Please Contact:
|
