HOME DPA Program
Last Revised January 18, 2022 1
HOMEownership Down Payment &
Closing Cost Assistance Program
Virginia Department of Housing and Community Development
VA Department of Housing and Community Development
600 East Main Street, Suite 300
Richmond, VA 23219 Telephone: (804) 371-7000 Fax: (804) 371-7090
HOME DPA Program
Last Revised January 18, 2022 2
This page is intentionally left blank.
HOME DPA Program
Last Revised January 18, 2022 3
HOMEownership Down Payment & Closing Assistance Program
Table of Contents
INTRODUCTION .................................................................................................................... 4
PROGRAM DESCRIPTION ................................................................................................ 4
PROGRAM REQUIREMENTS ............................................................................................ 5
I. CLIENT ELIGIBILITY: .......................................................................................... 6
II. HOMEBUYER OR BENFICIARY CRITERIA AND PROGRAM GUIDELINES: ..... 6
III. INCOME DETERMINATION: ...............................................................................11
IV. SITE OR MONITORING VISITS: .........................................................................11
V. ADMINISTRATORS’ FINANCIAL AUDITS: .........................................................12
VI. REPORTING CHARACTERISTICS AND OUTCOMES OF THOSE COUNSELED
FOR HOMEOWNERSHIP: ...................................................................................12
VII. PROCESS STEPS AND REQUIREMENTS: ........................................................12
VIII. PROGRAM ADMINISTRATIVE COSTS SCHEDULE: .........................................13
Appendices
Appendix A
Document Checklist
Appendix B
Recorded Restricted Deed of Covenant
Appendix D
HUD Set Up/Completion Form
Appendix E
Disbursement Request Form
Appendix F
DPA Subsidy Layering Review Worksheet
Appendix G
Promissory Note
Appendix H
Homebuyer Authorization Agreement
Appendix I
Financial Information Sheet
Appendix J
URA Voluntary Sales Notice
Appendix K
Income Calculator Worksheet
Appendix L
Maximum Subsidy Limit Worksheet
Appendix M
Homebuyer Federal Assistance Certification
Appendix N
Visual Lead Base Paint Assessment Form
HOME DPA Program
Last Revised January 18, 2022 4
INTRODUCTION
The HOMEownership Down Payment & Closing Cost Assistance Program operates through
local partnerships with governmental entities, non-profit housing service providers, and mortgage
lenders across the Commonwealth. DHCD is seeking to competitively maintain a regional
network of grant administrators who offer housing counseling and pre-qualification screening for
eligibility on a first-come, first-served basis to address all regions of the state targeting first-time
homebuyers with incomes at or below 80% of the Area Median Income (AMI) as established by
the U.S. Department of Housing and Urban Development (HUD). The program structure must
promote equitable access to HOME funds by both entitlement and non-entitlement communities
based on income and credit criteria. The assistance is offered as a forgivable loan to eligible
homebuyers.
PROGRAM DESCRIPTION
PROGRAM GOAL: HOMEOWNERSHIP ASSISTANCE
The HOMEownership Down Payment & Closing Cost Assistance Program is a flexible gap
financing program that provides opportunities for first-time homebuyers to obtain homes that are
safe, decent, and accessible. The long term goal is sustainable housing and growth in personal
wealth and equity for low-income Virginians. Applicants who submit proposals to administer
HOME funds for DHCD must have a program of assistance outlined that would provide a
mechanism to qualify eligible homebuyers based on actual financial need, on a first-come, first-
served basis.
Applicants must demonstrate the capacity to identify target markets, housing stock and
homebuyers to increase the numbers of homeowners in Virginia. Applicants must describe a
clear plan of action which demonstrates their knowledge of, and past work with, the target
markets, barriers to access, available qualified housing stock, and potential homebuyers who are
either currently prepared or who will be prepared in the very near future to enter homeownership.
The goal of “placing low- income persons in the position of homeownership” is too vague; the
goals of the program must be clearly defined and stated outcomes must be measurable.
In order to describe the need for housing assistance costs of the target population applicants
should not rely solely on waiting list information maintained by their organization. Organizations
should collaborate with other local sources such as housing assistance waiting lists, other housing
program grantees and administrators, social service agencies, area agencies on aging, and local
building and fire officials to determine target populations. Program designs that emphasize
public/private partnerships will be given priority consideration.
APPLIED FORMULAS FOR ALL HOME-ASSISTED UNITS
Administrative requirements for the HOMEownership Down Payment & Closing Cost Assistance
Program will follow the established guidelines specified in the HOME Final Rule. The maximum
amount of direct assistance to the homebuyer cannot exceed 10% of the sales price, and should
be determined by a debt to income ratio analysis that does not exceed the maximum FHA
standard on a first mortgage loan for housing costs and revolving debt. Homebuyers in localities
of the state THAT have been designated as “high cost areas” or “chronically economically
HOME DPA Program
Last Revised January 18, 2022 5
depressed” (see addendum A) may receive “up to” 15% of the sales price as the need demands.
In addition, the Regional Administrator can provide an additional $2,500 in HOME subsidy to
cover eligible closing costs not adequately paid by the seller.
HIGH COST/CHRONICALLY ECONOMICALLY DEPRESSED Localities:
Albemarle
Alexandria
Allegany
Annandale
Arlington
Bath
Bland
Buchanan
Carroll
Charlottesville
Clark
Craig
Culpepper
Dickenson
Fairfax
Falls Church
Fauquier
PROGRAM REQUIREMENTS
The HOMEownership Down Payment & Closing Cost Assistance Program is designed to operate
through local partnerships with governmental entities, non-profit housing service providers, and
mortgage lenders across the Commonwealth. Administrators selected to administer the HOME
program funds must be units of local government or nonprofit organizations that are actively
participating in housing programs on a regional basis. Administrators may be located in HOME-
entitlement areas of Virginia as long as they also provide service through their organization to
non-entitlement communities.
The HOME program specifically requires:
Down payment and closing costs for identified populations where total family household
income does not exceed 80 percent of the area median income;
Supportive services including preliminary homebuyer services; i.e., pre-qualification
screening, and housing counseling services;
Access to HOME program funds must be offered on a first-come, first-served basis; and
Assisted housing and associated costs cannot exceed 95 percent of the area median
home sales price, which are established by HUD.
HOME DPA Program
Last Revised January 18, 2022 6
I. CLIENT ELIGIBILITY:
Participation in the program is limited to credit-eligible homebuyers at or below 80 percent of the
area median income (AMI) as defined by HUD based on household size and geographic location
of the assisted property. Homebuyers with total household incomes in excess of 80 percent AMI
are not eligible for this assistance. HOME down payment and closing cost assistance is not an
entitlement, but a limited public resource to be used to further first time home ownership for those
who without this assistance would not be able to move forward with a home purchase. Use the
following links to review income tables and the maximum area sales price:
https://www.hudexchange.info/manage-a-program/home-income-limits/
https://www.hudexchange.info/resource/2312/home-maximum-purchase-price-after-rehab-
value/
II. HOMEBUYER OR BENFICIARY CRITERIA AND PROGRAM GUIDELINES:
1. Homebuyers must meet all eligibility requirements:
a. Qualify as a first-time Homebuyer as defined by one of the following:
i. have never owned a home before; or
ii. have not held primary ownership in a principle residence within the most
recent three year period;
b. Receive homeownership counseling from a HUD-certified agency and HUD-
certified Housing Counselor;
c. Complete a HUD-certified Homebuyer Education Course through a Virginia
Housing or Neighborworks® certified course which can be monitored and audited
by both entities; just as long as a completion certificate can be generated with the
completion date and expiration date; Course can be also be online, but a
completion certificate must be generated with the completion date and expiration
date.
d. Possess a signed purchase offer for a property (turn key at the time of settlement);
NOTE: For Sale by Owner transactions are ineligible.
e. Demonstrate that their income does not exceed 80 percent of the AMI;
f. Contribute one percent of the sales price of the home from their personal funds if
the income is between 50%-80% of the AMI, and if the income is less than 50% of
the AMI, they can contribute $500 towards the purchase of the home. Also,
provide receipts as proof of the one percent contribution.
2. NOTE: If purchaser puts down more than the required amount of cash to purchase a
home, the additional cash will go towards the purchase of the home. If it is determined
the purchaser will receive funds back at closing, then the HOME funds MUST be reduced
by that amount. No FUNDS will be RETURNED or REIMBURSED (regardless of the
source) to the purchaser at closing/settlement when HOME funds are awarded for down
payment and/or closing cost assistance.
The Administrator is responsible for reviewing the final Closing Disclosure prior to closing. If it
is determined that the purchaser is receiving cash back at closing, then the HOME funds “MUST”
be reduced by that amount. If the purchaser is required to pay any costs up front that would have
an effect on settlement, the administrator must make appropriate adjustments to prevent cash
back at closing.
HOME DPA Program
Last Revised January 18, 2022 7
3. The Administrator’s homebuyer application must clearly disclose all program requirements
and fees to the homebuyer.
a. The purchaser must sign a homebuyer agreement form with the administrator for
the down payment and/or closing assistance.
b. All information and documentation must be retained by the Administrator for 5
years after the required affordability period from the date of loan closing.
4. Eligible properties must meet programmatic requirements of Mortgage Lenders and
include the following:
a. Single-family property (one unit);
b. Townhouse homes;
c. Condominiums
d. Manufactured home
i. The manufactured housing must be connected to permanent utility hook-
ups. The manufactured housing must be located on land that is owned by
the manufactured housing unit owner, or on land for which the
manufactured housing unit owner has a lease for a period at least equal to
the applicable period of affordability.
NOTE: Two unit properties are no longer eligible
5. Program guidelines:
a. Funding is limited to down payment and closing cost assistance for purchasers at
or below 80 percent AMI. Purchasers can receive up to 10 percent or up to 15
percent (within the established approved areas by DHCD) of the sales price as
needs demand.
b. The maximum amount of secondary financing and other subsidies will be restricted
to the lesser of 20% (including DHCD HOME funds) of the purchase price or
appraised value.
c. Homebuyers with cash assets of 10 percent or more of the sales price will not be
eligible for down payment and closing cost assistance (i.e. assets which cannot be
liquidated without the applicant incurring a penalty- written verification will be
required). NO EXCEPTIONS!
d. Loan packages submitted for funding consideration cannot exceed 96.5 percent of
the loan to value (LTV) or a cumulative LTV of 108 percent including any other
sources of subsidies. The total loan origination charges cannot exceed 2.5% of
the loan amount. Administrators should be aware of the comparable sales prices
in their targeted areas.
e. Homebuyers must meet the usual and customary mortgage underwriting criteria
that demonstrate creditworthiness sufficient to obtain a mortgage loan
commitment, and must possess a 90 day work history before application of
grant funds.
f. The sales price of the home must not exceed five times the borrowers’ household
income, and the area median purchase price limits must be met.
g. NOTE: Will make an exception in high cost/chronically economically
depressed localities deemed eligible by DHCD. The maximum amount of
secondary financing and other subsidies will be restricted to the lesser of
20% (including DHCD HOME funds) of the purchase price or appraised value.
In addition, all other program parameters must be met.
HOME DPA Program
Last Revised January 18, 2022 8
h. A complete FHA appraisal must be conducted on all HOME-assisted properties.
Home values may not exceed 95 percent of the area median sales prices (203B
limits established by HUD).
i. All units of housing must meet the applicable Uniform Physical Condition
Standards as established by HUD pursuant to 24 CFR 5.703 prior to final
settlement or closing.
j. The home inspection must be conducted by a certified home inspector with
separation of duties. Any required repairs notated on the inspection report wll have
to be repaired prior to closing and a re-inspection must be done to determine that
all repairs were completed prior to closing and included in each client file.
k. HUD lead-safe provisions apply to all assisted home properties purchased. This
includes a notice of lead hazard, visual assessment for lead base paint form,
remedy of any lead problems, and re-inspection if applicable. All assessments
must be conducted by a third party HUD Certified, VA Lead Inspector or VA
Risk Assessor.
III.
l. Use the following link to access the HUD Lead Based Paint Visual
Assessment Training Course:
http://www.hud.gov/offices/lead/training/visualassessment/h00101.htm
m. The files of the Administrator must include a written completed calculation of
income for each homebuyer compared to applicable limits of the program. Any
changes to the calculation of income up until closing must be properly documented
in writing and signed by the client, and included in the file.
6. Underwriting Guidelines:
a. DHCD will utilize the current ratios of 33% for the housing ratio and 43% for the
debt to income ratio.
b. DHCD will make exceptions to the debt to income ratio not to exceed 45% if the
monthly payments on the following debts are followed and documented in the file:
i. Auto Loans - (except if there is less than 9 months left to pay off)
ii. Student Loans - (except if there is less than 9 months left to pay off)
iii. Personal Loans (except if there is less than 9 months left to pay off)
iv. Charge Cards – look at minimum required payments only.
v. Child Support - (except if there is less than 9 months left to pay off)
vi. Alimony - (except if there is less than 9 months left to pay off)
vii. Federal/State Tax Lien Repayment Schedules - (if less than 9 months
not calculated)
7. Credit Criteria and Other Income Criteria Guidelines:
a. Applicant must show a good credit history with at least 3 trade lines open and
current, and must have a median credit score of 620 or higher.
b. Student loan requirements:
c. Fannie Mae Monthly student loan payment as listed on credit report or student
loan statement; if deferred or in forbearance, either 1% of the balance or one
monthly payment.
d. Freddie Mac Monthly student loan payment as listed on credit report or student
loan statement; if deferred or in forbearance, 0.5% of the balance.
e. FHA Monthly student loan payment as listed on credit report or student loan
statement; if deferred or in forbearance, either 0.5% of the balance or one monthly
HOME DPA Program
Last Revised January 18, 2022 9
payment. If on an IBRP (Income Based Repayment Plan) and actively making
payments, the program can use the income based payment. If not actively making
payments, the program can use 0.5% of the balance.
f. VA Monthly student loan payment as listed on credit report or student loan
statement or 0.5% of the balance divided by 12 months, whichever is higher; if
deferred, not included in underwriting.
g. USDA Monthly student loan payment as listed on credit report or student loan
statement; if deferred, in forbearance or on IBRP (Income Based Repayment
Plan), either 0.5% of balance or one monthly payment.
h. Bankruptcy must be discharged for 3 years from the discharge date, NO
Exceptions
i. Foreclosure and/or Deed-in Lieu of foreclosure must not have been within the last
3 years, and the applicant must have established a good credit history since the
foreclosure and/or bankruptcy.
j. Collection accounts totaling a $1,000 or more must be paid in full prior to closing,
and evidence must be provided as proof of payment.
k. All judgments must be paid in full regardless of amount prior to closing, and
evidence must be provided as proof of payment.
l. Any delinquent federal debt such as student loan, tax liens, etc. will not be eligible
for down payment assistance.
m. If child support and/or alimony income is being used to qualify the applicant for the
program, then DHCD will need to have documentation showing proof that the
applicant has been receiving this income for 6-12 months. If the child support
and/or alimony income has been received for less than 6 months, then it cannot
be counted in the qualifying ratios, No Exceptions! Below are the types of
acceptable documentation:
i. Bank statements in the applicant’s name,
ii. Cancelled checks from the account the check was written on,
iii. A print out from Child Support Enforcement if court ordered, and/or a
A print out from the institution that provides the direct deposit of the income
on a Debit card.
8. Affordability Period
a. The Period of Affordability is based on the direct HOME subsidy provided to the
homebuyer that enabled the homebuyer to purchase the unit. A direct subsidy
consists of any financial assistance that reduces the purchase price from fair
market value to an affordable price or otherwise subsidizes the purchase (e.g.,
down payment or closing cost assistance). It is the responsibility of the program
administrator to assure that all HOME funds are included in the calculation of the
affordability period.
Amount of Assistance or Subsidy
Affordability Period
by Years
$1,000 – $14,999
5
$15,000 - $40,000
10
Amounts over $40,000
15
b. No monthly repayment is required on the forgivable HOME loan issued by DHCD.
The applied subsidy will be forgiven at the end of the period of affordability.
HOME DPA Program
Last Revised January 18, 2022 10
c. Recapture: Homebuyers are subject to recapture restrictions to ensure that the
home remains affordable consistent with the applicable period of affordability.
DHCD’s program design incorporates the recapture provision consistent with the
standards in the HUD HOME Investment Partnerships Program Final Rule 24 CFR
92.254.
If the homebuyer sells or transfers title of the HOME assisted property, either voluntarily or
involuntarily, during the Period of Affordability, the state will recapture, from the available net
proceeds, the entire amount of the HOME investment from the homebuyer. If there are no net
proceeds or the net proceeds are insufficient to repay the HOME investment due, the state can
only recapture the amount of the net proceeds, if any. The net proceeds are the sales price minus
superior loan repayment (other than HOME funds) and any closing costs.
The recapture provision applies to all properties that receive down payment or closing cost
assistance through this program, even loans that are assumable. If a homebuyer assisted through
this program allows the property to be assumed by, another party prior to the end of the
affordability period, the total amount of assistance will be recaptured and returned to DHCD.
The forgivable HOME loan IS NOT Assumable. If the new homebuyer receives an Assumable
1
st
lien position primary mortgage giving the original homebuyer the right to assign the unpaid
balance of his obligation, without prepayment penalty, to another person upon sale of the
mortgaged property, the forgivable HOME loan MAY NOT be assumed and the recapture
provision is triggered. The state will recapture, from the available net proceeds, the entire amount
of the HOME investment from the original homebuyer and the property ceases to be a HOME
assisted unit.
d. Repayment: The owner of the HOME-assisted Unit shall at all times maintain the
Affordable Unit as his or her principal place of residence during the Period of
Affordability. At no time shall the owner of the HOME-assisted Unit lease or rent
the Affordable Unit to any person or persons. Failure of the homebuyer to occupy
the HOME assisted unit as his or her principal residence (i.e., unit is rented or
vacant) will trigger the repayment of the entire outstanding HOME investment.
DHCD will attempt to bring the property back into compliance by having the
homebuyer re-occupy the property. If re-occupancy fails, the homebuyer must
repay the entire HOME investment back to the state of Virginia.
e. Homebuyers must execute a Restricted Deed of Covenant for the amount of the
HOME subsidy with a term that runs consistent with the applicable affordability
period) (APPENDIX B); NOTE: Minimum HOME Investment per unit is $1,000 per
HUD regulations (24 CFR 92.205 Section C).
f. Homebuyers must understand that there will be a lien placed on the property
during the affordability period.
g. The homebuyer(s) may prepay the whole unpaid balance of this indebtedness at
any time without penalty. However, the provisions of the HOME homebuyer
agreement will not be released during the affordability period.
h. Subordination: The program may consider a subordination agreement in the case
of a foreclosure and/or in certain extenuating circumstances where a loan
modification will allow the house to remain an affordable unit and assist the buyer
in maintaining the property as their primary residence. In no case shall the
program consider cash out or equity refinancing. All requests must be submitted
to DHCD in writing.
HOME DPA Program
Last Revised January 18, 2022 11
9. Eligible first mortgage products include the following:
a. Fixed Rate FHA 30-Year mortgages, Conventional and VA mortgages must be
originated with a Virginia Housing approved lender;
b. Rural Housing Services Guaranteed or Direct Loans through USDA Rural
Development.
c. ARM, Interest Only, Balloon, and FHA 203K are ineligible mortgage products
for this program.
IV. INCOME DETERMINATION:
For all families, the Administrator shall determine annual income by examining the source
documents evidencing annual income (e.g., wage statement, interest statement, and any
unemployment compensation statement) for the household or family. When determining whether
a household or family is income eligible, the Administrator shall use the following definition of
"annual income" for the HOMEownership Down Payment & Closing Cost Assistance Program.
Annual Income as reported under the Part 5 definition of income (Section 8).
1. Total household income includes all of the following:
a. Wages, salaries, tips, etc.;
b. Business Income;
c. Interest & Dividend Income;
d. Retirement, Insurance and Social Security Income;
e. Unemployment and Disability Income;
f. Welfare Assistance; Alimony, Child Support, and Gift Income; and
g. Armed Forces Income
2. Qualifying Income includes all of the following:
a. Wages, salaries, tips, etc.;
b. Business Income;
c. Interest & Dividend Income;
d. Retirement, Insurance and Social Security Income;
e. Alimony, Child Support, and Gift Income; and
f. Armed Forces Income
Disability Income ( if considered 100% disabled)
More information that is detailed may be found at
http://www.hud.gov/offices/cpd/affordablehousing/training/web/calculator/definitions/part5.cfm
V. SITE OR MONITORING VISITS:
1. Administrators are subject to annual site visits by DHCD staff, or their designees and
contractors, to monitor activities and determine that all applicable HOME regulations are
being met. This includes an inspection of all project and homebuyer files concerning
beneficiaries in HOME-assisted units such as the following:
a. Evidence of Housing Counseling;
b. Checklist should be in every file (APPENDIX A)
c. Administrator’s application for assistance;
d. Certifications of income;
e. Appraisals;
f. Whole House Inspection Report and a Re-Inspection Report, if needed;
g. Lead-Safe Provisions Form and Visual Assessment for Lead Base Paint Form
HOME DPA Program
Last Revised January 18, 2022 12
h. Home Investment Partnerships Program Deed of Trust (Copy) with whole dollar
amounts and no cents;
i. Title Insurance Policy;
j. Closing Cost Worksheet; which replaces the HUD1
k. Good Faith Estimate
l. Promissory Note;
m. Hazard and Liability Insurance Policies; must be listed as a lien holder
n. Termite Inspection and evidence of treatment, if necessary;
o. HOME Project Set Up and Completion Reports; etc.
2. Administrators must disclose the following policies and related procedures at any time
during the period of the written Agreement:
a. Conflict of Interest policy;
b. Fair Housing policy;
c. Affirmative Marketing policy;
d. Equal Employment policy;
e. Non-discrimination policy; and
f. Drug-free workplace policy.
3. Nonprofit organizations will be required to provide written records of the following
documentation with any contract that is negotiated:
a. Internal Revenue Service 501 (c) 3 designation;
b. Articles of Incorporation;
c. State Corporation Certificate;
d. Agency By-laws; and
e. List of current Board Members.
VI. ADMINISTRATORS’ FINANCIAL AUDITS:
Administrators shall be responsible for submitting an annual, independent, organization-wide
audit for each fiscal year in which the organization receives funding from DHCD. Organizations
expending more than $500,000 in federal funds, from all sources, during their fiscal year are
required to follow the federal requirements of OMB Circular A-133 for that audit.
VII. REPORTING CHARACTERISTICS AND OUTCOMES OF THOSE COUNSELED FOR
HOMEOWNERSHIP:
DHCD will collect data pertinent to those potential homebuyers who were unable to access and
receive the benefit of HOME program funds as well as those who received the benefit.
VIII. PROCESS STEPS AND REQUIREMENTS:
There are three basic steps in the process to provide HOME program funds to homebuyers:
Setting up or reserving the funds: disbursing the funds for their use in the final settlement or
closing of their real estate transaction: and completing the activity in the HUD accounting system.
1. Set Up Report/Completion Report – To Reserve or Commit Funds for the Homebuyer
submit the following completed forms and documents to DHCD:
a. HUD Set Up/Completion Form (APPENDIX D)
b. Copy of the Verification of Income, and/or pay stubs or tax returns
c. Loan Cost Estimate Worksheet
d. Financial Information Sheet (APPENDIX I)
e. Copy of Homebuyer Authorization Agreement (APPENDIX H)
HOME DPA Program
Last Revised January 18, 2022 13
f. Sales Contract
g. DPA Subsidy Layering Review Worksheet (APPENDIX F)
h. Income Calculator Worksheet (APPENDIX K)
i. Environmental Review Form (DHCD will complete)
j. Executed Spending Plan
2. Disbursement of the Funds – To request that DHCD disburse the funds to either the
administrator or the settlement agent or attorney submit the following completed forms
and documents to DHCD:
a. Disbursement Request Form (APPENDIX E)
b. Revised documents WHEN the loan commitment and or income have changed
and the client still meets the eligibility requirements
c. Copy of the Lender’s Loan Commitment Letter
NOTE: Administrators must be set up through the Virginia Department of Accounts for electronic
transmission of funds. The instructions and forms are located at the following web address:
http://www.doa.virginia.gov/General_Accounting/EDI/EDI_Main.cfm
3. Completion of the Activity – To complete or close out the activity in the HUD accounting
system submit the following completed forms and documents to DHCD:
a. Copy of the updated Set up/Completion Form (APPENDIX D)
b. Closing Disclosure Worksheet – A copy that has been executed by the buyer is
required
c. Recorded Restricted Deed of Covenant (APPENDIX B)
d. Promissory Note (APPENDIX G)
e. Copy of the Appraisal
f. URA Voluntary Sales Notice (APPENDIX J)
g. Visual Assessment for Lead Base Paint (APPENDIX N)
h. Maximum Subsidy Limit Worksheet (APPENDIX L)
i. Whole House Inspection Report and a Re-Inspection Report, if needed
j. Disbursement Request Form for any final program administrative costs that are
due to the administrator
k. Homebuyer Federal Grant Certification Form (APPENDIX M)
l. Administrator must provide written documentation of providing homeownership
counseling to the purchaser
m. Administrator must provide receipt of payment for any lead-based paint
inspections, and/or home inspections that are paid and/or conducted on the behalf
of the purchaser by the administrator. A lead inspection report must also be
submitted
n. Copy of Flood Hazard Determination Form (from mortgage lender)
IX. PROGRAM ADMINISTRATIVE COSTS SCHEDULE:
Administrators may collect program administrative costs, for administering these HOME program
funds as follows:
Project Funding - there will be a total allowable Program Administrative Cost of $1,500 for each
completed activity billable to the HOME program. The breakdown is as follows:
HOME DPA Program
Last Revised January 18, 2022 14
An administrator must submit all of the required documents on the document checklist
along with a completed HUD set-up/completion form to have funds reserved for a
purchaser.
DHCD will release $1,500.00 when an administrator submits a completed HUD
Completion Report, accurate closeout documentation, and a recorded Restrictive
Deed of Covenant are received.
The anticipated program administrative costs must show on the HUD Set-up/
Completion form
Program Administrative Costs must be requested on the appropriate disbursement
form.
Copies of a counseling certificate and proof that the Administrator is not receiving HUD
funds for homeownership counseling must be submitted to receive an additional
counseling fee of $300.
The federal regulations require Lead Inspections for homes built prior to 1978. The
Administrator can receive up to $300 for a combination of a visual lead base paint
assessment, whole house inspection, and re-inspections by submitting a copy of paid
receipts showing the portion the Administrator paid for said inspecitons. A copy of the
report must be submitted to DHCD along with the completed HUD homeownership
completion form.