New Construction

The New Construction Program is designed to build quality affordable housing in the targeted areas and/or in CD eligible areas by providing infill of newly constructed houses on vacant lots.

Low-income families and individuals, who have not owned a home in the last three years (or if the current home has been determined to be substandard), will have the opportunity to become first-time homeowners through this program.

The houses are constructed of insulated concrete forms, brick exterior, metal siding on fascia and insulated aluminum glass windows, which make them highly energy efficient and low maintenance.

Houses average 1,100 to 1,400 square feet consisting of 2 to 4 bedrooms, 1 to 2 baths and a one-car attached garage.

1. Applicant must be a first-time home buyer. (must not have owned a home in the last 3 years)

2. Applicant must select from program-approved lots. The property must have a clear title and not be in a flood zone.

3. A clear name search from a title company. Applicants with complicated name search problems and judgments will not be accepted.

4. Reasonably good credit with a record of prompt payment.

5. Enough income to make the monthly NCL loan payments. Housing expense cannot exceed 30% of adjusted gross income and total debts including housing expense cannot exceed 41% of gross income.

6. The lot must pass an environmental evaluation.

7. Applicant must be able to pay a $25.00 application fee at time of application.

8. Applicant must be able to make a 3% down payment based on the payback portion of the loan.

9. Must be at or below the following income guidelines according to family size.

10. Other criteria as required.

Applicants must be at or below the following:

Federal Income Guidelines

Family Size	80% of Median
1	$28,100
2	$32,100
3	$36,150
4	$40,150
5	$43,350
6	$46,550
7	$49,800
8	$53,000

New Construction Loan (NCL)
The NCL loan that is a pay-back is determined by a sliding scale based on family income and family size. The NCL, the primary loan, is for a period of 20 years at 3% interest.

No-Interest Deferred Payment Loan (NIDP)
The NIDP is a forgivable loan with NO payment and NO interest. It has a 20-year note that reduces by 1/20th per year to a zero balance at the end of year 20 as long as the homeowner lives in the home. If the homeowner moves before the end of year 20, a prorated amount is due and payable to the City.

SLIDING SCALE REFLECTING PAYBACK & FORGIVABLE LOAN BASED ON % OF MEDIAN INCOME BRACKET

Income	Payback HR	Forgiven NIDP
0-30% (62 Yrs. and over and/or disabled)	10%	90%
0-30%	35%	65%
31-40%	40%	60%
41-50%	45%	55%
51-60%	50%	50%
61-70%	55%	45%
71-80%	60%	40%

EXAMPLE: he estimated monthly payment for a household under 62 yrs. old qualifying for a 50% payback loan and a 50% forgivable loan on an $85,000 (total loan) reconstructed home is as follows:

Principal & Interest	$235.70
Est. Taxes	$160.30
Est. Insurance (Rate based on credit)	$69.00
Monthly Payments	$465.00
(20-yr. Note 3% interest)

* This payment is based on a $42,500.00 payback loan and a $42,500.00 forgivable loan.

1. Call C. D. Department at 775-2296 to be put on waiting list.

2. Will receive notice of Pre-Homeownership Class.

3. Attend Pre-Homeownership Class and get certificate.

4. Apply for New Construction Home Program.

5. If approved, attend orientation meeting and draw lottery number to be a homeowner.

6. Once department gets to your lottery number, select a lot.

7. House will be bid according to family size. Once bid is received, pay 3% down payment.

8. Sign Loan Papers.

9. Construction begins.

10. Homeowner picks floor plan and colors.

11. Construction takes approximately 6 months.

12. Homeowner moves in and payment begins.

13. Homeowner must attend Post-Homeownership classes.