Contract - DCI - Near Northwest Neighborhood Revitalization Organization - Provide Development Costs for New Construction of Single Family Home at 808 N Hill Street

Home Browse Search

The City of South Bend will recapture an amount that does not exceed the net sale proceeds from the sale of the property. The City of South Bend will recapture the outstanding balance based on the following "Recapture Amount" guidelines; however this amount shall never be greater than the net sale proceeds. If there were no net sale proceeds then the City of South Bend would recapture zero. 4. The Recapture Amount is subject to recapture under these guidelines for the following minimum periods: A. Five (5) years where the Allocation is less than $15,000.00; B. Ten (10) years where the Allocation is $15,000.00 to $40,000.00; C. Fifteen (15) years where the Allocation is greater than $40,000.00, 5. The deed effectuating the subsequent sale of the Unit by the Homeowner, and the deeds effectuating each subsequent sale of the Unit during the Recapture Period, shall reflect the balance of the Recapture Amount yet to be recaptured. 6. Upon the satisfaction of the recapture requirements with respect to any Unit, the City of South Bend shall promptly issue a certificate of satisfaction regarding the same and cause the recording of the same in the Office of the Recorder of St. Joseph County. Resale Policy The City of South Bend will utilize the resale policy when there is no direct subsidy to the homeowner, but rather when there is a construction or development subsidy to the property. A construction or development subsidy to the property occurs when the amount of NSP3 funds invested in the property exceeds the fair market value of the property after rehab. In such cases the property must be resold to an income eligible household making no more than 120% of AMI. The sale price of the home will be determined by an appraisal, and the PITI will not exceed 30% of the new buyer's monthly net income. For Rentals: The minimum affordability period required by NSP3 is to be the same as required by the HOME program, which is: NSP3 Investment per unit Length of the affordability period Less than $15,000 5 years $15,000 to $40,000 10 years More than $40,000 15 years New construction of rental housing 20 years Rent, occupancy and affordability requirements will be enforced with deed restrictions that shall run with the land, and shall be in full force and effect until the date of affordability period has expired. The recorded deed restriction shall state the number of years from the date of execution the restriction shall be in affect and shall have a date of expiration (based on above table). 17