Definitions Department of Community Recapture Provision First Time Home Buyer Development Homeownership HOME regulations state that the The applicant must not have owned a home as Opportunity Network homebuyer maintain the program as- their principal residence within a period of 3 sisted property as a principal residence years prior to applying for assistance. All ap- during the affordability period. This plicants are required to contribute a minimum First-Time Home residency requirement will be enforced of 1% of their own funds toward the purchase Buyer and evidenced by the recording of the price of an existing property; a minimum of down payment appropriate document. Funds must be 2% toward a new construction purchase and returned to the program if the following have 3 months of mortgage payments saved in assistance program conditions occur: an account. FTHB must secure a loan greater or equal to 90% LTV. The applicant must be  the property is sold or transferred dur- 401 Broadway, Suite 300 ing the affordability period (Temporary eligible through the FTHB program to qualify subleasing of the property is not al- Gary, 46402 for any DPA programs. Ph-219.881.5075 lowed)  a home buyer fails to provide proof an- Principal Residence nually of primary residence on assisted The home purchased must be the place where property as requested. the applicant lives and not a second home. An A recorded document with the City of Independent Home Inspection is required on Gary assuming a junior lien position property. will be used as the enforcement vehicle for this program. This lien shall be du- Recapture Provision ly recorded in the appropriate office of The owner who is subject to recapture is re- county government. quired to repay all or a portion of the direct subsidy provided from the net proceeds of the sale, during the affordability period.

Recapture provisions shall be pro-rated based on HOME assis- Affordability Period tance per unit and the affordability period (up to 15 years) . Restrictions are for certain lengths of time, The table below is based on assistance under $15,000.00 for a 5 year affordability period.. depending upon the amount of assistance in- vested. The period of affordability will com- mence on the day activity is completed in the Sale After Year % of funds to Integrated Disbursement & Information Sys- be recovered tem (IDIS).

1 80% Under $15,000…….5 years 2 60% $15,000-40,000…...10 years Over $40,000……..15 years 3 40%

4 20% Sponsored by the: City of Gary 5 0% U.S. Department of Housing & Jerome A. Prince - Mayor Urban Development E. Nikole Rumph - Interim Director Equal Housing Opportunity Program Description Types of Assistance DPA Secure (20% Down Payment) Provides mortgage assistance to qualifying DPA (Down Payment Assistance) FTHB. Maximum 20% of the purchase price up Through the Homeownership Opportunity to $15,000 of an existing home based on the 80% to 70% of area Can receive up to strength of applicant’s recent credit history. Network, the goals of the First Time Home- median income... $4,000 .00 towards pur- buyer Program are to improve and revi- chase price . talize neighborhoods- restore function, char- 69% to 60% of area Can receive up to median income... $5,000.00 towards pur- acter and pride by providing homeowner- chase price. ship opportunities. This program makes 59% to 50% of area Can receive up to Calculating Eligibility median income… $6,000.00 towards pur- Assistance amounts are determined by HOME program funds available in the chase price. calculating, projecting and verifying an form of forgivable loans for down payment, applicant’s annual income based on the principal reduction, and closing costs asso- gross amount of all adult members of the New Construction household. These calculations will be ciated with the purchase of a home. Assis- based on anticipated income received tance will be made to eligible individuals New Construction located in the Target Areas of the during the coming twelve-month period. City of Gary will qualify for 10% of purchase price or Prior year tax returns and income and families on a first-come, first-serve and statements must be supplied to support $10,000.00 whichever is less toward down payment as- one-time basis purchasing a single-family additional eligibility requirements. sistance and closing cost. home in the City of Gary. Applicants must provide total household and financial infor- Target Areas mation prior to a formal approval for assis- The City of Gary has designated the following neighbor- Effective 7/1/2020 tance. The program will use 95% of the cur- hoods as target areas. Existing properties in these areas Maximum Income Levels for 2020 rent HOME Homeownership Value Limits can receive up to $7,500.00. for a single-family dwelling as a ceiling for # OF PERSONS INCOME University Park (Per Household) down payment processing. 1 $41,950.00 processing. Horace Mann/Downtown West 2 $47,950.00 Lead Based Paint Inspection 3 $53,950.00 All applicants must successfully com- plete the City of Gary Homeownership All properties built pre-1978 must have a visual inspec- 4 $59,900.00 Opportunity Network Homebuyer tion for defective surfaces. If lead is found no DPA Education Workshops during the funds can be used until lead is stabilized by a Certified 5 $64,700.00 process of applying for assistance. Lead Abatement Contractor at the expense of Home- **Certificates are accepted from other 6 $69,500.00 buyer/Seller before close of sale. HUD-certified and approved agencies The above income limits are subject to (dated within 12 calendar months of change at the discretion of the U.S. Depart- application) . ment of Housing and Urban Development.