Development Description:
Lenox Station Condominiums
One Lenox Street, Unit 104, Norwood, MA
John Marini Management Company, and the Town of Norwood, worked to provide this affordable housing opportunity. In this project, 51 homeownership units were built in Norwood, with 5 units to be sold to first-time homebuyers with incomes at or below 80% of the area median income. The price of these homes was set at $165,000.00. The affordable units have 2 bedrooms and 1 ½ baths. The five units will be offered for resale through this process when and if they become available.
CURRENTLY: 10-10-2013 There is one unit available for resale.
All affordable units have a “Deed Rider” that was filed at the time of purchase, and will be continued on any resale. This deed rider restricts the amount that the unit can be resold for and requires that the subsequent buyer have a household income at or below 80% of the area median income, at the time of resale. The deed rider insures that the unit stays affordable for the long-term. All applicants must sign an acknowledgement of receipt of the deed rider.
Prospective homeowners must anticipate that along with the cost of monthly mortgage payments, there will be additional annual expenses for property taxes (estimated at $1,650 per year based on the current tax rate and sale price of the unit), condominium fees (estimated at $1,200 per year and payable in monthly installments), utilities and condominium unit owner’s insurance.
Income guide:
Maximum Income
To be eligible, the combined annual income for all income sources of all income-earning members in the household must be at or below eighty percent of the Boston area median income, as defined by HUD, for the local area. Income in most cases is defined as gross taxable income as reported to the IRS. According to the 2013 Income Guidelines released by HUD on December 11, 2012, 80% of the area median income for Boston, MA, and therefore the maximum allowable income, is the following:
One-person household $47,150.00
Two-person household $53,900.00
Three-person household $60,650.00
Four-person household $67,350.00
Application Process:
AFFORDABLE HOMEOWNERSHIP LOTTERY
Lenox Station Condominium
Outreach and marketing for the resale of one two bedroom unit at Lenox Station Condominiums will begin on October 10, 2013. Advertisements will placed in the local newspaper, the Norwood Bulletin as well as minority newspapers, The Bay State Banner, El Mundo and Sampan as well as CHAPA’s website: massaccesshousingregistry.org. All applications received will be reviewed on a first come, first serve basis.
Applications can be obtained at:
The Norwood Housing Authority
40 William Shyne Circle
Norwood, MA 02062
And/or in the following location:
Norwood Town Hall
566 Washington Street
Norwood, MA 02062
Applicants will be notified in writing or via email (if address provided) that their application has been received.
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ELIGIBILITY REQUIREMENTS
Lenox Station Condominium
First-Time Homebuyers:
First-Time Homebuyers – household shall not have owned a home three (3) years preceding application.
Displaced homemakers and households over the age of 55 do not have to be first-time homebuyers, but must sell their current property before they purchase a unit.
Income and Asset Eligibility:
To be eligible to purchase an affordable home, annual income and assets must be below the maximum levels as described below. The applicant’s income must be able to support a mortgage that is sufficient to purchase the affordable home.
Maximum Income
To be eligible, the combined annual income for all income sources of all income-earning members in the household must be at or below eighty percent of the Boston area median income, as defined by HUD, for the local area. Income in most cases is defined as gross taxable income as reported to the IRS. According to the 2013 Income Guidelines released by HUD on December 11, 2012, 80% of the area median income for Boston, MA, and therefore the maximum allowable income, is the following:
One-person household $47,150.00
Two-person household $53,900.00
Three-person household $60,650.00
Four-person household $67,350.00
Income eligibility guidelines will be based upon this HUD Area Median Income (AMI) information.
Household Asset limit is $75,000.00
NAHC Income and Asset Eligibility Certification Process
The following outlines NAHC process for reviewing and establishing income and asset eligibility for Lenox Station and Washington Square. NAHC may require additional information or further review in specific cases.
Materials required for applicant review
Document Period
Federal tax returns for 3 most recent years, including W-2 & 1099 Forms
Statements for all assets, (banks & investments) for the most recent 3 months of application date
Income statements:
For regular employment: five consecutive statements
ending within one month of application date for all
jobs (check/direct deposit stubs)
For social security: official statement of monthly amount received for year in review
For pension: statements indicating amount received
For IRA or other income derived from assets: statements indicating regular amounts received and annual amount received for most current year.
For child support and alimony: documents indicating the payment amount.
For unemployment benefits: five consecutive statements or verification from the Department of Revenue of benefits received.
Process for Establishing Income
Income eligibility is established based upon projected gross earnings for the anticipated12 months from the date of application for all household members over the age of eighteen. The projected income is calculated based on the review of gross income as reported on W2 and 1099-R forms, tax returns and pay statements for each source of income. Additional income establishing requirements may be outlined in a developments’ information and application materials.
Annual Income
W2 and 1099-R forms from prior years and current pay statements will be used to determine the anticipated income. Annual income is income the household anticipates to earn for a period of 12 months.
Commissions and Overtime
Commissions are calculated as income. Overtime is calculated as income, but it can be calculated as isolated and temporary income separately if there are special circumstances. The applicant must provide verification from his/her employer to support the claim and prior years tax returns, W2s and pay statements must also support this claim.
Cash Income
If an applicant earns income in cash, three months of bank statements indicating account deposits will be used to establish income.
Social Security
Social security is counted as income. Applicants must provide the official statements / annual Social Security Benefit Letter regarding the monthly amount received for the calendar year under review. Social security payments made to children under the age of 18 are excluded from household income.
Pensions
Distributions from a pension are considered as income; statements must be provided indicating the regular amount received. Otherwise, it is be counted as assets.
IRAs and Other Assets
IRAs and other assets that are drawn down regularly are considered income. Statements must be provided showing the amount received on a regular basis as well as the cumulative amount drawn during the most recent year and are counted as income. Otherwise, it is counted as assets.
Child Support and Alimony
Child support and alimony received by the applicant are counted as income. If an applicant pays child support and/or alimony, this can not be deducted from their income regardless of household size. Statements indicating payment agreements and amounts must be submitted. If there is a discrepancy between what is received for alimony and/or child support and what is court ordered, documentation should be provided indicating the difference and the amount received by the applicant will be used.
Full-Time Students Over the Age of 18
$480.00 per year of income from dependent household members over the age of eighteen that are full-time students is counted towards total household income. Students must show proof of student status by submitting a transcript or other official documentation and must be claimed as dependents on tax returns.
Divorce
Applicants in the process of divorce must show proof of legal separation and intent to divorce in order for income and assets to be established separately from that of their partner.
Income from Assets
Where the family has net family assets in excess of $5,000, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD. The current passbook rate is 1%.
Asset Limit Determination
Asset Limit
Household Asset must not exceed $75,000.00.
Reductions in Assets Prior to or During the Application Period
Applicants are not permitted to reduce household assets in order to meet the appropriate asset limit (property, cash or total limits) by paying off loans or other debts or gifting money at any point after initiation of the marketing period. Any reductions in assets or changes in household assets during these periods will not be taken into consideration in establishing the applicant’s eligibility.
Down Payment Assistance
Down payment assistance through a documented (municipal program, program run by a non-profit) program does not count toward the asset limit however, assistance from an applicant’s family member or friend is counted.
Department of Housing and Community Development
Eligibility Summary for the Subsidized Housing Inventory
40B Guideline Amended May, 2013
Description of assets and the treatment of such in determining eligibility, are referenced in HUD’s “Occupancy Requirements of Subsidized Multifamily Housing Programs”; Handbook 4350.3, Chapter 5, Exhibit 5-2, includes the following:
1. Cash held in savings and checking accounts, safe deposit boxes, homes, etc: For savings accounts, use the current balance. For checking accounts, use the average balance for the last six months. Assets held in foreign countries are considered assets.
2. Revocable trusts: The cash value of any revocable trust available to the applicant.
3. Equity in rental property or other capital investments: The current fair market value less (a) any unpaid balance on any loans secured by the property and (b) reasonable costs that would be incurred in selling the asset (e.g., penalties, broker fees, etc.).
4. Stocks, bonds, Treasury bills, certificates of deposit, mutual funds, and money market accounts: The value of stocks and other assets vary from one day to another and should be determined within a reasonable time in advance of the applicant’s submission of an application to participate in the subject housing program.
5. Individual retirement, 401K and Keogh accounts: When the holder has access to the funds, even though a penalty may be assessed. If the applicant is making occasional withdrawals from the account, determine the amount of the asset by using the average balance for the previous six months. (Do not count withdrawals as income.)
6. Retirement and pension funds.
a) While the person is employed:
Amounts the applicant can withdraw without retiring or terminating employment. Count the whole amount less any penalties or transaction costs.
b) At retirement, termination of employment, or withdrawal:
Periodic receipts from pension and retirement funds are counted as income. Lump-sum receipts from pension and retirement funds are counted as assets. Count the amount as an asset or as income, as provided below. If benefits will be received in a lump sum, include the lump-sum receipt in net household
If the applicant initially receives a lump-sum benefit followed by periodic payments, count the lump-sum benefit as an asset as provided in the example below and treat the periodic payment as income. In subsequent years, count only the periodic payment as income. Do not count the remaining amount as an asset.
NOTE: This paragraph assumes that the lump-sum receipt is a one-time receipt and that it does not represent delayed periodic payments. However, in situations in which a lump-sum payment does represent delayed periodic payments, then the amount would be considered as income and not an asset.
7. Cash value of life insurance policies available to the applicant before death (e.g. the surrender value of a whole life policy or a universal life policy): It would not include a value for term insurance, which has no cash value to the applicant before death.
8. Personal property held as a investment: Gems, jewelry, coin collections, or antique cars held as an investment. Personal jewelry is NOT considered an asset.
9. Lump sum receipts or one-time receipts: Inheritances, capital gains, one-time lottery winnings, victim’s restitution, settlements on insurance claims (including health and accident insurance, worker’s compensation, and personal or property losses), and any other amounts that are not intended as periodic payments.
10. A mortgage or deed of trust held by an applicant: Payments on this type of asset are often received as one combined payment of principal and interest with the interest portion counted as income from the asset. This combined figure needs to be separated into the principal and interest portions of the payment. (This can be done by referring to an amortization schedule that relates to the specific term and interest rate of the mortgage.)
To count the actual income for this asset, use the interest portion due, based on the amortization schedule, for the 12-month period following the certification. To count the imputed income for this asset, determine the asset value at the end of the 12-month period following the certification.
Household Assets DO NOT include the following:
Personal property (clothing, furniture, cars, wedding ring, other jewelry that is not held as an investment, vehicles specially equipped for persons with disabilities).
Term life insurance policies (i.e., where there is no cash value).
Equity in the cooperative unit in which the applicant lives.
Assets that are part of an active business: "Business" does NOT include rental of properties that are held as investments unless such properties are the applicant’s main occupation.
Assets that are NOT effectively owned by the applicant:: Assets are not effectively owned when they are held in an individual's name, but (a) the assets and any income they earn accrue to the benefit of someone else who is not the applicant, and (b) that other person is responsible for income taxes incurred on income generated by the assets.
