Craftsman Village, Bolton - Lottery Information
** COPIES OF THIS LOTTERY INFORMATION PACKET CAN BE PICKED UP AT THE TOWN HALL **
Lottery Information
Craftsman Village Bolton
Bolton, MA
Craftsman Village Bolton is a new 30 unit development offering 8 two bedroom detached condominiums for eligible first time homebuyers (certain exceptions apply). Each unit has two bedrooms, 2 baths and a two car garage in approximately 1,900 sq. ft. Refrigerator, stove/oven and laundry hookups are included. These units will be distributed through 2 lotteries. This application is for the first lottery.
The maximum sales price for the affordable units is $167,900. The units will be sold by lottery as outlined in the attached package. The monthly condo fee is $75 and the 2017 tax rate is $21.20 per thousand. Please review the enclosed information packet in detail and complete the application and disclosure statement at the rear of the packet.
PLEASE NOTE: All applicants must include a mortgage pre-approval letter, from an institutional lender familiar with affordable deed restrictions, and complete financial documentation with the application. An application will be considered incomplete and will not be included in the lottery if a mortgage pre-approval letter and all documentation is not received on or before the application deadline. Applicants that submit an incomplete application will be notified after the application deadline. An FHA or VA loan in not acceptable as the neither will close on Deed Restricted properties.
Applicants can drop off their application in our Harvard office. If you wait we will review for completeness and eligibility. If your application is determined incomplete you would have time to submit missing documents prior to the application deadline.
A Public Information Meeting has been scheduled for 6:30 p.m. Thursday, November 30, 2017 at the Bolton Town Hall Bolton Town Hall, 663 Main Street, Selectmen’s Meeting Room to answer specific questions and provide an overview of the process. If you cannot attend this meeting please call MCO Housing Services at 978-456-8388 with any questions.
OPEN HOUSE:
Saturday, December 16, 2017 – 10:00 a.m. – 12:00 p.m. – Unit #15
Applications may be mailed to MCO Housing Services, P.O. Box 372, Harvard, MA 01451. The application deadline is January 8, 2018 All complete applications must be postmarked on or before January 8th to be included in the lottery. The lottery will be held 6:00 p.m. Thursday January 18, 2018 at the Bolton Town Hall.
Thank you for your interest in affordable housing at Craftsman Village Bolton. We wish you the best of luck. If you have questions and cannot attend the Public Information Meeting, please contact MCO Housing Services at 978456-8388 or email us at lotteryinfo@mcohousingservices.com. We encourage you to advise other people or organizations that may be interested in this program and make copies of the relevant information as needed.
Sincerely,
Maureen M. O’Hagan
MCO Housing Services for Craftsman Village Bolton LLC
Craftsman Village Bolton
AFFORDABLE HOMES through the Local Initiative Program
Question & Answer
What are the qualifications required for Prospective Buyers?
• Qualify based on the following maximum income table, which is adjusted for household size:
Household Size 1 2 3 4
Max Allowable Income $47,600 $54,400 $61,200 $68,000
LOTTERY APPLICANT QUALIFICATIONS:
Household income cannot exceed the above maximum allowable income limits.
Household must be a first time homebuyer defined as not having owned a residential property for three years, including a home in a trust. ** The following exceptions apply:
displaced homemakers, where the displaced homemaker (an adult who has not worked full-time, full-year 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), while a homemaker, owned a home with his or her partner or resided in a home owned by the partner;
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 1 or more children of who the individual has custody or joint custody, or is pregnant);
households where at least one household member is 55 or over;
households that owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations; and
households 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 construction a permanent structure.
** A home owned by one of the above exception must be sold prior to closing on the affordable unit.
3. Total household assets shall not exceed $75,000. Liquid retirement assets are counted.
Individual retirement, 401K and Keogh accounts are included at 100% of the account value.
The value of Retirement and Pension Funds differ if you are employed or are no longer working. If still employed the value is determined using the amount you can withdraw less any penalties or transaction costs. At retirement, termination of employment or withdrawal periodic receipts from pension and retirement funds are counted as income. Lump sum receipts are counted as assets.
Assets divested at less than full market value within two years of application will be counted at full market value when determining eligibility.
Complete Income and Asset Guidelines will be provided upon request, if you have an opportunity to purchase or you can view online at www.mcohousingservices.com.
Other program highlights for Lottery applicants:
Unit must be principal residence of the owners and can not be rented or leased.
Non-household members are not permitted to be co-signers on the mortgage.
A mortgage pre-approval letter, from a bank experienced with deed-restricted properties, is required to participate in this lottery.
Are there mortgage guidelines that we need to follow?
Yes, they are:
Must secure a 30 year fixed rate mortgage.
The loan must have a current fair market interest rate. No more than 2% points above the current MassHousing Rate.
The buyer must provide a down payment of at least 3%, 1.5% of the purchase price must come from the buyer’s own funds.
The loan can have no more than 2 points.
The sales price of the unit is set by DHCD to be affordable to an income-eligible household paying no more than 30% of their monthly income for housing costs. The buyer may not pay more than 38% of their monthly income for housing costs.
Non-household members are not permitted to be co-signers on the mortgage.
The mortgage must be from an institutional lender familiar with affordable deed restriction guidelines.
Are there preferences for local residents and those with families?
Yes. Three of the homes are for households that meet at least one of the Local Preference criteria. Refer to the application for the local preference guidelines. Household size preference for the two bedroom units will be given to households that require two bedrooms, second preference is for households requiring one bedroom. Applicants are entered into all pools for which they are eligible.
Unit preferences are based on the following:
There is a least one occupant per bedroom.
A husband and wife, or those in a similar living arrangement, shall be required to share a bedroom. Other household members may share but shall not be required to share a bedroom.
A person described in (b) shall not be required to share a bedroom if a consequence of sharing would be a severe adverse impact on his or her mental or physical health and reliable medical documentation is provided substantiating the adverse impact.
A household may count an unborn child as a household member. The household must submit proof of pregnancy with the application.
If the applicant is in the process of a divorce or separation, the applicant must provide proof that the divorce or separation has begun or has been finalized, as set forth in the application.
Persons with disabilities are entitled to request a reasonable accommodation of rules, policies, practices, or services or to request a reasonable modification of the housing, when such accommodations or modifications are necessary to afford the person(s) with disabilities equal opportunity to use and enjoy the housing.
Are there preferences for minorities?
Yes, if the percentage of minority applicants in the Local Preference Pool is less than the percentage of minorities in the Eastern Worcester County, MA HUD Metro FMR Area, currently 19.3%, a preliminary lottery will be held, comprised of all the minority applicants who do not qualify for the Local Preference Pool. Minority applicants would be drawn until their percentage in the local pool at least meets the percentage in the Eastern Worcester County, MA HUD Metro FMR Area. Applicants not selected for the local pool would be in the open pool only.
Are there any restrictions?
YES. Deed restrictions are used to ensure the units are affordable for future buyers. The deed rider requires principal residency, affordability for perpetuity and prior approval from the Town and DHCD for capital improvements and refinancing. If you choose to sell your unit you must notify the town and DHCD in writing. There is a limit on the resale price. The maximum resale price is determined by DHCD using a Resale Price Multiplier, a figure calculated by taking the initial sales price and dividing it by the area median income. For example, if the initial price is $167,900 and the current area median income is $120,200, the Resale Price Multiplier would be $167,900/$120,200= 1.39.
Upon resale, the Resale Price Multiplier is multiplied by the updated area median income number to determine the maximum resale price.
All selected applicants are urged to review the deed rider with their own attorney. All buyers will be provided with a copy at the time of Purchase and Sale Agreement. Email maureen@mcohousingservices.com for a copy of the deed rider.
How much money do I need to make to afford the unit?
The minimum income required to purchase is based upon an applicant’s ability to secure a mortgage. Attached is a “Sample Affordability Analysis” based upon current interest rates and anticipated real estate taxes and related housing expenses.
Lottery Process
Due to the nature of the affordable units’ availability it is important for everyone to understand the procedure. Please understand the allowable income guidelines are adjusted based upon your household size. Also be advised that the program and its requirements are subject to changes in local, state or federal regulations.
Lottery Pools
The lottery has two pools – Local and Open. The unit and pools breakdown as follows:
Pool Qualifications # of Units
Local Pool Must meet at least one of the Local Preference 3
Criteria as listed on the application.
Open Pool All applicants 1
Local applicants would have two opportunities to purchase a unit by being in both the Local and Open Pools.
Household size preference for the two bedroom units will be given households that require two bedrooms, second preference is for households requiring one bedroom.
Unit preferences are based on the following:
There is a least one occupant per bedroom.
A husband and wife, or those in a similar living arrangement, shall be required to share a bedroom. Other household members may share but shall not be required to share a bedroom.
A person described in (b) shall not be required to share a bedroom if a consequence of sharing would be a severe adverse impact on his or her mental or physical health and reliable medical documentation is provided substantiating the adverse impact.
A household may count an unborn child as a household member. The household must submit proof of pregnancy with the application.
If the applicant is in the process of a divorce or separation, the applicant must provide proof that the divorce or separation has begun or has been finalized, as set forth in the application.
All of the applicants will be pulled and their lottery code announced at the time of the lottery. This order of selection will establish the rankings for the homes distribution. There will be two pools of applicants, one for local applicants only and the second for local and non-local applicants (open pool). The first 3 local applicants that meets the above unit preference criteria would have an opportunity to purchase a home, and the remaining local pool applicants would establish the waiting list. The same process would take place for the open pool.
Time Frames
It is anticipated that at least one affordable home will be available for immediate occupancy. If you are selected and have the opportunity to purchase the unit, you will speak or meet with a representative to review your application to verify all information. The Applicant selected for the home will start working with their lender immediately to secure the necessary mortgage. Please be advised that the final income verification will be done at the time you have an opportunity to purchase a unit. All applicants must be determined income/asset eligible BEFORE they are entered into the lottery. The selected applicants’ financial documents are verified again just before closing.
Acceptance of Home
If you choose not to purchase the property, you will go to the bottom of the list and will likely NOT have another opportunity.
Summary
We hope this helps explain the process by which the units will be distributed. It can be a lengthy and sometimes complicated process. We greatly appreciate your participation and wish you the best of luck in the lottery process.
SAMPLE AFFORDABILITY ANALYSIS
Home Price $ 167,900.00
Interest Rate 4.5%
Down Payment (%) 5%
Down Payment ($) $ 8,395.00
Mortgage Amount $ 159.505.00
Monthly Expenses
Principal & Interest $ 807.00
Real Estate Taxes 297.00
Private Mortgage Insurance 104.00
Hazard Insurance 56.00
HOA Monthly Fee 75.00
TOTAL Monthly Expenses $ 1,339.00
NOTES:
ALL values are estimates and are subject to change.
Bolton 2017 Residential Tax Rate = $21.20 per thousand
Unit Availability and Distribution
Unit # Home Style Designated Winner Estimated Availability*
15 Cortland Local Immediate
20 Cortland Local January 2018
25 Cortland Open Summer 2018
29 TBD Local Summer 2018
Unit locations subject to change.
For Office Use Only:
Date Appl. Rcvd: _____________
Local: Y / N
Household Size: ________
Lottery Code: _______________
Craftsman Village Bolton
LOTTERY APPLICATION
APPLICATION DEADLINE: January 8, 2018
PERSONAL INFORMATION: Date: ___________________
Name: _____________________________________________________________________________________________________
Address: ____________________________________________________Town: ______________________ Zip: ________________
Home Tele:____________________________ Work:_____________ _____________________ CELL: _________________________
Email: ______________________________________________________________________________________________________
Have you or any member of your household ever owned a home? ____________ If so, when did you sell it? ____________
You must meet one of the Local Preference Eligibility Criteria established by the Town of Bolton to be in the local pool. Please check the each appropriate category(s) that applies to your household*:
Current Bolton Resident
Employed by the Town of Bolton or the Nashoba Regional Public Schools
Employee working in the Town of Bolton or with a bonafide offer from an employer located in the Town of Bolton.
Parents of children attending Bolton Public Schools.
*All local applicants will need to provide proof if you have the opportunity to purchase a unit and will be verified by the Town of Bolton.
FINANCIAL WORKSHEET: (Include all Household Income which includes gross wages, retirement income (if drawing on it for income), business income, veterans benefits, alimony/child support, unemployment compensation, social security, pension/disability income, supplement second income and dividend income.)
Borrowers Monthly Base Income (Gross) _______________________
Other Income _______________________
Co-Borrowers Monthly Base Income (Gross) _______________________
Other Income _______________________
TOTAL MONTHLY INCOME: _______________________
Household Assets: (This is a partial list of required assets. A complete list will be provided should you have an opportunity to purchase. Complete all that apply with current account balances)
Checking (avg balance for 6 months) ________________________
Savings ________________________
Stocks, Bonds, Treasury Bills, CD or
Money Market Accounts and Mutual Funds ________________________
Individual Retirement, 401(k) and Keogh accounts ________________________
Retirement or Pension Funds ________________________
Revocable trusts ________________________
Equity in rental property or other capital investments ________________________
Cash value of whole life or universal life insurance policies ________________________
Downpayment Gift ________________________
TOTAL ASSETS _______________________
EMPLOYMENT STATUS: (include for all working household members. Attach separate sheet, if necessary.)
Employer: ______________________________________________________________________________
Street Address: ______________________________________________________________________________
Town/State/Zip: ______________________________________________________________________________
Date of Hire (Approximate): ______________________________________________________________________ Annual Wage - Base: __________________________
Additional: ______________________ (Bonus, Commission, Overtime, etc.)
ABOUT YOUR FAMILY: OPTIONAL
You are requested to fill out the following section in order to assist us in fulfilling affirmative action requirements. Please be advised that you should fill this out based upon family members that will be living in the home. Please check the appropriate categories:
Applicant
Co-Applicant
(#) of Dependents
Black or African American _________
_________
_________
Asian _________
_________
_________
Hispanic/Latino _________
_________
_________
Native Hawaiian / Pacific Islander _________
_________
_________
Native American or Alaskan Native _________
_________
_________
Other, Not White _________
_________
_________
The total household size is _________
Household Composition: Include Applicant(s)
Name _______________ Relationship_____________ Age_____ Name _______________ Relationship_____________ Age_____ Name _______________ Relationship_____________ Age_____ Name _______________ Relationship_____________ Age_____
ADDITIONAL INFORMATION:
Please be advised that the income to be used should include income for all members of the household that are to be residing in the home. Applicants will be responsible for all closing costs associated with the purchase of a home. The down payment must be a minimum of 3%, ½ of which must come from the buyer’s own funds, based upon standard underwriting procedures. Some of this may be in the form of a gift depending on the lending institution.
SIGNATURES:
The undersign warrants and represents that all statements herein are true. Income and assets must be verified and a pre-approval letter from a bank submitted before entry into lottery to have an opportunity to purchase the affordable home at Craftsman Village Bolton in Bolton, MA. I (we) understand if selected all information provided shall be verified for accuracy at the time of bank application prior to closing.
Signature ________________________________ Date: _________________________
Applicant
Signature ________________________________ Date: _________________________
Co-Applicant
Return with SIGNED Affidavit & Disclosure Form, mortgage pre-approval letter and complete financial documentation to:
MCO Housing Services
P.O. Box 372
Harvard, MA 01451
Drop Off: 206 Ayer Road, Harvard
Email: lotteryinfo@mcohousingservices.com
Affidavit & Disclosure Form
I/We understand and agree to the following conditions and guidelines regarding the distribution of the affordable home at Craftsman Village Bolton in Bolton, MA.
The annual household income for my family does not exceed the allowable limits as follows:
Household Size
1
2
3
4
Max Allowable Income
$47,600
$54,400
$61,200
$68,000
Income from all family members must be included.
I/We have not individually or jointly owned a single family home, town home, condominium or co-op within the past three (3) years, including homes in a trust. We understand the exceptions that apply.
I/We certify that my/our total household assets do not exceed the $75,000 asset limit and understand additional asset guidelines will be provided if we have an opportunity to purchase. I/We understand that assets divested at less than full market value at least two years prior to application will be counted at full value in determining eligibility.
The household size listed on the application form includes only and all the people that will be living in the residence.
I/We certify all data supplied on the application is true and accurate to the best of my/our knowledge and belief under full penalty of perjury. I/We understand that providing false information will result in disqualification from further consideration.
I/We understand that by being selected in the lottery does not guarantee that I/we will be able to purchase a home. I/We understand that all application data will be verified and additional financial information may be required, verified and reviewed in detail prior to purchasing a home.
I/We understand that it is my/our obligation to secure the necessary mortgage pre-approval for the home purchase through a bank experienced with deed-restricted housing. I/We understand all expenses, including closing costs and down payments, are my responsibility.
I/We further authorize MCO Housing Services to verify any and all income, assets and other financial information, to verify any and all household, resident location and workplace information and directs any employer, landlord or financial institution to release any information to MCO Housing Services and consequently the project’s monitoring agency, for the purpose of determining income eligibility.
I/We understand that if selected I/we will be offered a specific home. I/We will have the option to accept the available home, or to reject the available home. If I/we reject the available home I/we will move to the bottom of the waiting list and will likely not have another opportunity to purchase an affordable home.
Program requirements are established by the Dept of Housing and Community Development (DHCD) and the Town of Bolton. I/We agree to be bound by whatever program changes that may be imposed at any time throughout the process. If any program conflicts arise, I/we agree that any determination made by DHCD is final.
I/We certify that no member of our family has a financial interest in the project.
I/We understand there may be differences between the market and affordable units and accept those differences.
I/We understand these are deed restricted units and acknowledge that it is recommended we consult an attorney.
I/We have completed an application and have reviewed and understand the process that will be utilized to distribute the available home at Craftsman Village Bolton. I/We am qualified based upon the program guidelines and agree to comply with applicable regulations.
_______________________ ____________________________ _____________________
Applicant Co-Applicant Date:
Return with completed and signed application, a mortgage pre-approval letter and all financial documentation to: MCO Housing Services
P.O. Box 372, Harvard, MA 01451
Required Personal Identification and Income Verification Documents
TO BE RETURNED WITH APPLICATION
Provide one copy of all applicable information. Complete financial documentation is required and must be sent with your application to participate in the lottery. Incomplete applications will not be included in the lottery and the applicant will be notified after the application deadline. You may drop off your application at MCO Housing Services Harvard Office. If you drop off and wait while we review your application, you would have the opportunity to provide the missing documents prior to the deadline.
Initial each that are applicable, and provide the documents, or write N/A if not applicable and return this sheet with your application.
1. _____ Federal Tax Returns – 2014, 2015, 2016 (NO STATE TAX RETURNS)
• NOTE: Provide all pages that are submitted to the IRS. For example, if a Schedule C is submitted to the IRS and not part of your application, your application will be considered incomplete.
_____ W2 and/or 1099-R Forms: 2014, 2015, 2016
_____ The most recent last five (5) consecutive pay stubs for all jobs (check/direct deposit stubs). For unemployment, copies of unemployment checks or DOR verification stating benefits received. Same for disability compensation, worker’s compensation and/or severance pay.
NOTE: If you have obtained a new job within the last 12 months and are no longer working for an employer, you worked for in 2016, you must provide a letter from the employer with your separation date, along with your offer of employment from your new employer.
NOTE: You need to provide 5 pay stubs whether you are paid weekly, bi-weekly or monthly.
_____ If you meet the local preference with a bona fide offer of employment at a company located in Bolton you will need to provide evidence of the bona fide offer.
_____ Benefit letter providing full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts.
_____ Child support and alimony: court document indicating the payment amount, DOR statement. If you do not receive child support provide a letter stating, that you are not receiving child support.
_____ Interest, dividends and other net income of any kind from real or personal property.
Asset Statement(s): provide current statements of all that apply, unless otherwise noted:_____Checking accounts – Last three (3) months of statements – EVERY PAGE – FRONT AND BACK.
NOTE: If you have cash deposits or non payroll or income deposits you MUST identify where the funds have come from. If you fail to explain they will be counted as income, which may put you over the income limit.
NOTE: Do NOT provide a running transaction list of activity. You must provide the individual statements.
_____Pre-paid debit card statements – current month.
NOTE: This is NOT your ATM/Debit card. This is usually a separate debit card statement showing income deposited directing onto the debit card, i.e. Social Security or other regular income. NOTE: If Social Security payments are deposited on a Direct Express card it is your responsibility to provide proof. You can print a statement from the Direct Express website at https://www.usdirectexpress.com/.
_____Saving accounts – last three months of full statements
_____Revocable trusts
_____Equity in rental property or other capital investments
_____Investment accounts, including stocks, bonds, Treasury Bills, Certificates of Deposit, Mutual Funds and Money Market Accounts including all individual retirement accounts, 401K, Keogh accounts and Retirement and Pension funds.
_____Cash value of Whole Life or Universal Life Insurance Policy.
_____Personal Property held as an investment
_____Lump-sum receipts or one-time receipts
_____Proof of student status for dependent household members over age of 18 and full-time students. Letter from High School or College providing student status, full time or part time for current or next semester.
_____A household may count an unborn child as a household member. The household must submit proof of pregnancy with the application, i.e. letter from doctor.
_____If the applicant is in the process of a divorce or separation, the applicant must provide legal documentation the divorce or separation has begun or has been finalized. Information must be provided regarding the distribution of family assets.
12._____ If you are self-employed you MUST provide a detail expense and income statement for the last 12 months and three months of business checking and savings accounts along with last three Federal Income Tax Returns.
We understand if we do not provide all applicable financial documentation we will not be included in the lottery. We also understand we will be notified after the application deadline that our application is incomplete. We also acknowledge that MCO Housing Services will not make any changes to our application, before the deadline date unless we came to the Harvard office to make the necessary changes.
Print Applicants Name(s): ______________________________________________________
_________________________________________ ______________________________________
Applicants Signature DATE Co-Applicants Signature DATE Return application and ALL required financial documentation to:
MCO Housing Services
P.O. Box 372
Harvard, MA 01451
Drop Off: 206 Ayer Road, Harvard, MA
Email: lotteryinfo@mcohousingservices.com Phone: (978) 456-8388/Fax: 978-456-8986