COURTYARD

CONDOMINIUMSINFORMATION PACKAGE

The Chelmsford Housing Authority, on behalf of the Town of Chelmsford, is accepting applications for the purchase of a 2-bedroom, 1 ½ bath townhome located at the Courtyard Condominiums at 360 Littleton Road in Chelmsford. The sales price is $157,250 with a monthly condo fee of $350. This particular unit has gone into foreclosure, but remains part of the town’s affordable housing inventory and subject to a deed restriction. As such, it is available for purchase only to first-time homebuyers, meaning you cannot have owned a home within the past three years.* The customary income and asset limits are being waved; a preference, however, is being given to households whose income falls below 120% of area median income, listed as follows:TEL# 978-256-7425 TDD# 978-256-7425FAX# 978-256-1895

Email: Lisa@Chelmsfordha.com

1 person

2 people 3 people 4 people 5 people 6 people 7 people 8 people

$81,000 $92,520 $104,040 $115,560 $124,920 $134,160 $143,400 $152,640

We invite you to read this information packet and submit an application if you think that you meet the eligibility requirements.

General Overview and Sales PricesThe Courtyard Condominiums in Chelmsford features a mix of market rate and affordable condos ranging from 2- to 3- bedroom townhomes and garden-style apartments. Five standalone buildings surround a peaceful courtyard with a swimming pool, clubhouse and fitness center available to all residents. The development itself, however, sits back from a busy Route 110, which provides easy transport to Routes 3 and 495. The Lowell Regional Transit Authority bus route connects Chelmsford to the Lowell train station on the MBTA Commuter Rail Lowell line.

The Town of Chelmsford itself is a bustling suburban community that maintains a small-town feel. The popular 6.8-mile-long Bruce Freeman rail trail runs through Chelmsford and connects Lowell to Westford. Expansion of the trail to include Carlisle, Acton Concord, and Sudbury is in the planning stages.

The school system is known for its academic excellence with its high school ranked in the top 500 in the country.

This townhome was built in 1992 and features 2 bedrooms, 2 bathrooms and a finished basement. Heating is gas/forced hot air; cooling is central air. Refrigerator, stove, microwave, washer and dryer are all included.

All affordable units will have an “LIP Deed Rider” that will be filed with the deed at the time of purchase. The Deed Rider limits the amount that the unit can be resold. It is recommended that the potential buyers review the Deed Rider with an attorney so as to fully understand its provisions. For more information on the Deed Rider and resale restrictions, please see the Deed Rider Summary later in this package.

Because of the restriction that limits the price upon resale, this home is assessed and taxes at the affordable price.

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The Courtyard Condominiums to do not discriminate based on race, color, religion, national origin, ancestry, sex, age, disability/handicap, sexual orientation, marital status, familial status, children, gender identity, military status, public assistance/housing subsidy, genetic information, or ancestry.

GENERAL ELIGIBILITY REQUIREMENTSQ. What is the appropriate minimum income?

While there is no specific minimum income, all households must qualify for a mortgage to purchase this home and must spend no more than 38 percent of their monthly income toward the monthly housing costs. The minimum income limits to qualify for a mortgage will be determined by a bank or lending institution. All applicants must receive mortgage preapproval and submit it with their application in order to be considered eligible. Mortgage requirements are listed on Page 4 of this information packet.

Q: Who is eligible to apply for the affordable units?

A: In order to qualify for an affordable unit, households must meet each of the three following criteria: Everyone in the household must qualify as a “first-time homebuyer.”

1.) The household must be pre-approved for a mortgage. (See Page 4.)

Q. Who is a “first-time homebuyer”?

A: A person is a “first-time homebuyer” if no person in his or her household has, within the preceding three years, either owned the house they lived in or owned an interest in one or more other houses, such as through joint ownership, including in trust. Exceptions may be made in the following instances:

1.) A displaced homemaker: A displaced homemaker is an individual who is an adult who meets ALL the following criteria: Has not worked full-time 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; Owned a

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home with his or her partner or resided in a home owned by the partner; Does not own the home previously owned with a partner; Is unmarried to or legally separated from the spouse.

2.) A single parent, 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 one or more children of whom they have custody or joint custody, or is pregnant).

3.) An age-qualified household (in which at least one member is age 55 or over) that is selling a home in order to purchase an affordable unit.

4.) A household 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.

5.) A household that owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.

Q: If someone in my household is age 55 or over, can I currently own a home?

A: Yes. You will not, however, be allowed to complete the purchase of an affordable home here until your current home is sold.

Q: Can I apply for this lottery as a displaced homemaker or single parent if I currently own a home?

A: Yes. You will not, however, be allowed to complete the purchase of an affordable home here until your current home is sold.

Q: Does my separation or divorce have to be finalized when I apply?

A: In order to qualify for the lottery, you must provide legal documentation that verifies your separation or divorce is underway. Your separation or divorce does not need to be finalized when you apply for the lottery but it must be finalized before you sign a Purchase and Sale Agreement.

Q: Do I need to be a resident of Chelmsford to apply?

A: No, you do not have to be a resident of Chelmsford to apply.

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MORTGAGE PRE-APPROVAL STANDARDSMortgage pre-approval is required with the application. Households can apply with any lender, but the pre-approval must meet the following standards:

Mortgage Standards The loan must have a fixed interest rate through the full term of the mortgage. The loan must have a current fair market interest rate.

(no more than 2 percentage points above the current MassHousing rate*) The loan can have no more than two points The buyer must provide a down payment of at least 3% -- half of which must come from the buyer’s own funds

*MassHousing: (617) 854-1000 or www.masshousing.com

We strongly encourage households to apply through banks that are familiar with resale restrictions and guidelines for affordable housing programs. These banks will likely be aware of additional first-time homebuyer programs, such as that available through the Massachusetts Housing Partnership’s ONE Mortgage program. Households may also be eligible for down-payment assistance to reduce closing costs

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and/or purchase price, which therefore increases the potential for lower income households to obtain mortgages.

Households will need to bring a copy of the EXAMPLE Deed Rider to their lender. A copy can be downloaded directly off the Chelmsford Housing Authority website at www.chelmsfordha.com. The Deed Rider is a document that details, among other things, the restrictions that will be placed upon the unit at the time of resale in order to preserve its affordability. It is in the buyer’s best interest, therefore, to show all lenders a copy of the Deed Rider when applying for a mortgage. Otherwise, they may find a lender who grants a commitment for a mortgage, but backs out at the time of purchase once the lender are made aware of the resale restrictions.

The lender will ask you for your association fees and taxes. The monthly association fees will be $350 for this home. The 2017 tax rate for Chelmsford is $17.92 per thousand, and taxes are assessed at the affordable price (not the market-rate equivalent).

Q: Can a non-household member co-sign on the mortgage?

A: No. Only members of the applying household can sign on the mortgage.

PURCHASE AND SALEAfter the Chelmsford Housing Authority determines your eligibility for the program, you will be directed to the lending institution to help guide you through the process. Once the Purchase and Sale Agreement is drawn up, you will be provided with a copy of the Condominium Documents, Master Deed, and Deed Rider.

Before signing the P & S Agreement, it is recommended that the household obtain an attorney to review the P & S Agreement, Condominium Documents, Master Deed, and the Deed Rider. The household may also have the bank or mortgage company that is offering your mortgage commitment review these documents. It is important that the lawyer (or bank) ensure that the taxes being assessed on the affordable unit are based on the affordable sales price and not the market-rate equivalent. The household is also expected to put down at least a 3% down payment upon signing of the P & S agreement.

Age-Qualified households and qualified displaced homemakers who currently own a home when they apply for the lottery will need to provide a copy of a signed P & S Agreement to the Chelmsford Housing

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Authority showing that their current residence is under agreement to be sold before being allowed to enter into a P & S Agreement for the unit at The Courtyard Condominiums.

Applicants in the process of being separated/divorced when they apply for the lottery will need to provide a copy of their Divorce Decree or Separation Agreement before being allowed to enter into a P & S Agreement for The Courtyard Condominiums.

Q: Can I make cosmetic improvements after I purchase the unit? If so, will I be able to sell my unit for more money?

A: Yes. You can make cosmetic improvements to your unit. You will not, however, be reimbursed for upgrades such as granite countertops or hard-wood floors when your unit is sold as the home must remain affordable in perpetuity.

Q: What happens if I need to replace my hot water tank or make other capital improvements?

A: You must request permission from the project’s Monitoring Agent in writing before making any capital improvements. Your request will be considered and if permission is granted, you will be asked to provide receipts for the improvements that were made. The value of any approved and documented capital improvements will be factored into the resale price as long as the price remains affordable.

MORTGAGE COMMITMENTMortgage pre-approval does not ensure a mortgage commitment. Once the household has signed a P & S Agreement, he or she will need to obtain a mortgage commitment. The household does not need to go back to the same lender that issued the pre-approval letter; it is free to use another bank or mortgage company of its choosing and may want to opt for a lender who offers the ONE Mortgage loan program, which can offer significant savings for households that qualify. FHA loans as well as loans from family members, friends or other non-institutions are specifically prohibited. The names of representatives of local banks will be made available to households to assist prospective buyers with pre-approval and mortgage information. At this time, the lender will want to see the P & S Agreement, Condominium Documents,

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Master Deed, and Deed Rider. The lender will also do an appraisal of the property once it is ready to move into. Once the appraisal is complete, the household will be able to close on the home.

At least 30 days prior to the closing date, the household will need to obtain a copy of the mortgage commitment that shows the terms of the mortgage and has the signatures of the bank and/or lender. The loan must adhere to the same mortgage standards as did the pre-approval as discussed on Page 4.

FINAL REVIEW OF ELIGIBILITY Before a household can close on the affordable unit, the Monitoring Agent must do a final review of the household’s income and asset eligibility as well at its mortgage eligibility in order to prepare the Resale Price Certificate and Deed Rider that will be recorded at the closing. It is therefore essential that all households continue to maintain records of all income and assets until the closing.

Three weeks prior to the closing date, the household will need to complete a Final Review Application and submit all recent income and asset documentation. The Monitoring Agent will review the Final Review Application and determine if the household is still eligible according to affordable housing program guidelines. The household will not be able to purchase the affordable unit if the Monitoring Agent determines that it is no longer eligible (over the allowable income and/or asset limits).

Additionally, approximately three weeks prior to closing, households must submit the following documentation to the Chelmsford Housing Authority.

A signed copy of the A copy of the P & S Agreement. A copy of the Mortgage Commitment Letter from the buyer’s lender,

including interest rates, points, length of loan and annual percentage rate.

Contact information for the loan closing attorney including name, address, and phone and fax numbers.

A signed copy of the Local Initiative Program disclosure statement.

The Chelmsford Housing Authority will forward this documentation to the Monitoring Agent, which requires the documents no less than two weeks before the loan closing date. The Monitoring Agent will review the P & S and

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mortgage, then mail the Resale Price Certificate and Deed Rider to the buyer’s closing attorney before the closing.

Age-Qualified Households, Displaced Homemakers and Exempt Single Parents that are current homeowners may enter into a P & S Agreement contingent upon the sale of their currently owned property. They will not be able to receive a Resale Price Certificate until they have sold their home. Once their home is sold, they will need to send their HUD-1 Settlement Statement Certificate (received at closing) to the Monitoring Agent along with all of the above-mentioned documentation.

CLOSING AND MOVE-INThe Purchase & Sale Agreement will set the Closing Date. Your lender and lawyer will be able to guide you through the steps to ensure a smooth process.

Once you have closed on the unit, you may move in.

Additionally, once you have closed on the unit, there are no future income or asset eligibility reviews but you will be required to certify annually that your affordable home remains your principal residence.

DEED RIDER SUMMARY/ PROPERTY RESTRICTIONSThe Deed Rider will be provided either the day before or the day of the closing. A copy of an example Deed Rider will be available on the Chelmsford Housing Authority’s website, www.chelmsfordha.com.

The purpose of this summary is intended to be informational only and it is not a substitute for independent legal advice. It is intended to highlight some of the obligations a purchaser will have upon resale. The Deed Rider is an especially important legal document; in part, it ensures that the home remains affordable for future buyers of your property. Purchasers are encouraged to

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read carefully and to seek legal counsel to have a full understanding of their obligations of the Deed Rider in its entirety.

All of the deeds for the homes designated as affordable will have a deed rider, which you will be required to sign.

At a minimum, the purchaser must agree to the following:

PRINCIPAL RESIDENCETo occupy the home as a principal residence, where you regularly live, eat, sleep, are registered to vote, etc.

LEASING AND REFINANCINGYou may not rent, lease or refinance your home without the prior written consent from the Monitoring Agent.

NOTICES WHEN SELLING YOUR HOMEWhen you wish to sell your home, you must notify the Monitoring Agent in writing. This notice is referred to as the “Conveyance Notice” in the Deed Rider. The Monitoring Agent will set the Maximum Resale Price by using the “Resale Price Multiplier” listed on the Deed Rider.

MAXIMUM RESALE PRICEThe Maximum Resale Price is determined using the Resale Price Multiplier, a figure calculated by taking the initial sales price and dividing it by the area median income.

For example, if the area median income in 2017 is $96,300 and a family purchases an affordable home for $157,250, the Resale Multiplier would be $157,250 ÷ $96,300 = 1.64. Upon resale, the Resale Price Multiplier is multiplied by the updated area median income number to determine the Maximum Resale Price. For example, if that same family decided to sell their home five years later, the new area median income could have increased to$100,000. The Maximum Resale Price would be $100,000 x 1.73 = $164,000 as long as that price remains affordable considering mortgage rates, condo fees and taxes.

RESALE PROCESS

Under no condition can the seller receive more than the Maximum Resale Price upon resale.

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Once the Monitoring Agent receives a written notice to sell, the Monitoring Agent has 90 days to find an eligible buyer. The Monitoring Agent or the municipality can also decide within those 90 days to purchase the home.If the Monitoring Agent identifies an eligible buyer within 90 days, but that buyer cannot obtain financing or is otherwise unable to purchase the home, the Monitoring Agent can receive an extension of an additional 60 days. If the Monitoring Agent cannot find an eligible buyer within that time frame and the Town of Chelmsford does not want to purchase the home, you may choose to sell your home to an ineligible purchaser, but at no more than the maximum affordable sale price in order to keep the home affordable to others.

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