Created on 10/8/2004 11:39 AM
MARKETING AND BUYER SELECTION PLAN
AFFORDABLE CONDOMINIUMS
“AVENUE 264”
264 Massachusetts Avenue, Arlington
This document was reviewed and approved by the Affordable Housing Task Force, (10/19/04) and the Arlington Fair Housing Advisory Committee (10/29/04). It was then submitted and approved by the Board of Selectmen (11/22/04) as part of the submission to the State Department of Housing and Community Development under the Local Initiative Program (submitted 12/1/04).
The Town of Arlington, through its Director of Housing, is currently marketing 4 condominium units available for low and moderate income first time homebuyers in late spring, 2005. These units are part of a 27 unit condominium. Marketing for the affordable units began in September, 2004, and included an information session on September 28, attended by 80 people. The application deadline is January 14, 2005. Available units are as follows:
Two 1--bedroom units for $140,000
One 1-bedroom plus study unit for $150,000
One 2-bedroom unit for $165,000
MARKETING THE UNITS
1. The Town of Arlington, in conjunction with the seller’s broker Coldwell Banker, has prepared marketing materials for the available units. The marketing materials include:
· information about the units, including size, location, amenities, price, fees;
· a summary of the deed restriction and limits on resale;
· a summary of the application and buyer selection process;
· maximum and minimum income permitted to qualify for a unit;
· instructions on how to obtain an application for a unit;
· condominium documents and information, as available;
· use of Equal Housing Opportunity slogan or logo.
All marketing materials will comply with state and federal fair housing laws.
2. Outreach efforts will include the following:
· Articles and ads in the Arlington Advocate throughout the marketing period;
· Marketing materials to potential first time homebuyers who have recently participated in the North Suburban Consortium’s first time homebuyer training sessions in Arlington, Medford and Malden;
· Within Arlington, sending marketing materials to local community groups, places of worship, social service agencies (including Senior Center, Food Pantry, Boys and Girls Club), public housing authority, minority organizations, such as the African American Society and Martin Luther King Day Celebration Committee, real estate brokers, municipal buildings (including main areas and individual departments in Town Hall, public library, Chamber of Commerce, and banks, and the School Department and other Town departments, including the Superintendent and all principals, and the Director of the METCO Program.
· Outside Arlington, sending marketing materials to minority organizations in Boston, Waltham, Somerville and Cambridge, and Medford, as well as to all Arlington METCO families.
· The Director of Housing will conduct at least one information session for potential applicants prior to the application deadline. Advertising for this session will include all of the above-mentioned methods.
APPLICANT ELIGIBILITY
1. All applicants must meet the following minimum eligibility requirements. Third party documentation will be required to verify eligibility.
· Gross household income must be at or below 80% of area median income as determined by HUD and adjusted for household size;
· Applicant must have sufficient income to qualify for financing to purchase the unit. A household’s monthly housing expense (principal, interest, taxes, insurance, condominium fee) shall not generally exceed 33% of its gross monthly income. Exceptions may be made if the buyer can meet bank-underwriting criteria;
· Applicant must verify access to sufficient funds for a down payment of 5% of the purchase price and for closing costs;
· Applicant household size must be appropriate for the unit. Appropriate household size will require the use of all the bedrooms as set forth in these guidelines. It is expected that no more than two people will be required to share a bedroom. Couples are assumed to share a bedroom.
· Applicant must be first-time homebuyer. Applicant must not have owned a home in the past three years. Test will be based on IRS 1040 forms over the last 3 years. Exceptions will be made for divorced or separated heads of household who owned a home with a former spouse;
· Prior to closing, applicants must present a valid Certificate showing they have completed a First-Time Homebuyer workshop approved by Mass Housing;
· Applicant must have positive references and be credit worthy. References are required to obtain the following information: a) payment history from current and prior tenancies; b) track record on maintaining and respecting property; c) number of people living in household; d) credit history; e) potential problems regarding household members’ ability to successfully participate in condo association.
BUYER SELECTION
There will be a lottery within 4 weeks following the application deadline (January 14, 2005) for households who meet the minimum eligibility requirements described above.
In keeping with state policy, Arlington residents will be given preference for 2 of the 4 units. Two separate lotteries will be conducted. The “Arlington Resident Lottery” will contain only Arlington residents, as described below. The “Open Lottery” will contain all applicants, both Arlington residents and non-residents. Arlington residency is defined as a household which meets one of the following criteria: (1) a current resident; (2) a household in which one adult member currently works in Arlington, or a family with a child attending school in Arlington. Families of current Arlington METCO students will therefore be given residency status in order to increase the minority participation in the resident pool.
For each pool, every applicant will be given a number. The #1 applicant in the “Arlington Pool” will be given first choice of a unit, followed by the #1 applicant in the “Open Pool”. Then the #2 applicant in the “Arlington Pool” will be given a choice, followed by the “Open Pool” #2 applicant. If there is not an appropriate unit available for the #2 applicant because of unit size, the #3 applicant in that pool will be next. In the end, we will have 2 applicants from each pool. (See Selection Process, #4)
Selection Process
The following process will be used to select buyers:
1. All applications received by the deadline will be reviewed, on a preliminary basis, for minimum eligibility.
2. All applicants who, based on their applications, meet minimum eligibility requirements will be placed into one or two pools for the units for which they qualify.
a. Arlington residents, as defined above, will be placed in the “Arlington Pool”.
b. All applicants will be placed in the “Open Pool”.
3. Applicants will be notified that their applications have been received, and will be sent a description of the lottery process and schedule
4. Two lotteries will be held to select finalists—one for Arlington Residents and one for all applicants (“Open Pool”). For each pool, all applicants will be assigned a number in the order they are selected from the lottery.
5. Top applications will then be reviewed. Linda ProsnitzApplications will be processed to verify eligibility, 1051870694including1051870694Linda Prosnitz: income, source of down payment and closing costs, eligibility for a bank loan, landlord and other reference checks, and household size. The Town reserves the right to request additional information necessary to verify
eligibility. Any applicant who provides false information or whose references speak negatively on one or more of these issues may be deemed ineligible. Applicants who are determined not to be eligible will be notified as to the reason and will be given 5 days to appeal their status to an Appeal Committee, to be established. The Appeal Committee will be made up of the Chair of the Fair Housing Advisory Committee, and a representative of the Housing Authority and the Town’s Human Services Department.
6. For each pool, the applicant with the lowest lottery number whose application is successfully processed will execute a Purchase and Sale agreement with the owner for a specific unit, apply for a mortgage and complete an approved First-Time Homebuyer workshop.
7. Each buyer must be approved for a mortgage in a timely manner consistent with the Purchase and Sale agreement.
8. In the event that any selected applicant does not complete the purchase process, for any reason, the next applicant on the same lottery list will proceed through the purchase process, and so on.
In the event no applicants in a pool successfully complete the purchase process, the Town reserves the right to remarket the unit.
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