GENERAL ELIGIBILITY REQUIREMENTS

Q: Who is eligible to apply for the off‐site affordable units?

A: In order to qualify for an affordable unit, households must meet each of the four following criteria:

1.) Everyone in the household must qualify as a “first time homebuyer”.
2.) The entire household’s income and assets must be below the maximum allowable income and asset limits
3.) The household must be pre‐approved for a mortgage that meets Local Initiative Program mortgage standards
4.) The households must be of appropriate size and composition

Q: Who is a “first‐time home buyer”?

A: A person is a “first‐time homebuyer” if no person in his or her household has, within the preceding three years, either owned the house they lived in or owned an interest in one or more other houses, such as through joint ownership.

Exceptions may be made in the following instances:

1.) A displaced homeowner: A displaced homeowner is an individual who is an adult, who has owned a home only with a spouse, who is legally separated from a spouse, and who does not currently own the home previously owned with a
spouse.
2.) A household that owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.
3.) A household that owned a property that was not in compliance with State, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure.
4.) An age‐qualified household (in which at least one member is age 55 or Over which is selling a home in order to purchase a LIP unit.

Q: What are the income eligibility requirements?

A: To be eligible to purchase an affordable unit, annual household income must be
within a set range, set by maximum and minimum income levels and household
assets may not exceed a set value. The details are on the following pages.

Q: Do I have to be a resident of the Town of Natick to apply?

A: No. At the time of the Lottery there was Local Preference given for the opportunity to purchase
some, but not all, of the affordable units first. There is no Local Preference after the Lottery.

MAXIMUM INCOME AND ASSET LIMITS

Q: How is a household’s income determined?

A: The Lottery Agent will project a household’s income based on their current
income and assets. In an effort to provide as accurate an income estimation as
possible, the Lottery Agent will also review historical income data to provide a
basis for future income estimates.

ALL SOURCES OF INCOME ARE COUNTED
.
Any monies you anticipate receiving in the next 12 months will be counted as income and monies received over the previous 6 months will be analyzed to help estimate future income.
This includes, but is not limited to, Social Security, alimony, child support overtime pay, bonuses, unemployment, severance pay, part‐time employment, matured bonds, monies to be received in court settlements and interest and
dividends on bank accounts and other assets. If a household applied on December 1st, 2008, the total amount of anticipated money to be received by all members of the household from December 1st 2008 thru December 1st, 2009 will be counted as income. There are some exceptions that will not be counted, most notably income from employment of children under the age of 18 years. Households must submit their 3 most recent tax returns for proof that they have not owned a house within the past three years. If a household claims that certain income will stop in the near future, all claims must be supported with documentation. It is not up to the household to determine what monies received over the past year should and should not be counted as their calculated income. Therefore, all
monies should be listed on the application and the inclusion of these monies in determining a household’s eligibility will be based on affordable housing guidelines.

Maximum Income

To be eligible to apply for purchasing an affordable unit, the combined annual income
for all income sources of all income‐earning members in the household must be at or
below eighty percent of median income for the local area (Boston‐ HFMA). The
maximum incomes allowed for this program are:
HOUSEHOLD SIZE INCOME LIMIT
1 $ 46,300
2 $ 52,950
3 $ 59,550
4 $ 66,150
5 $ 71,450
6 $ 76,750


Asset Limits

All households shall not have total gross assets exceeding $75,000 in value. Household Assets are calculated at the time of application. Any monies you would use as a future down payment on the home will still be counted as assets. Assets may include cash, cash in savings and checking accounts, net cash value of stocks, net cash value of retirement accounts (such as 401k), real property, bonds, and capital investments.

Q: Are there eligibility exceptions for households that are barely over the income limit but considerably under the asset limit (or vice versa)?

A: No. All households must be under BOTH the income limit and the asset limit. Eligibility isn’t based on only one or the other.

Q: If I qualify as a displaced homeowner can I currently own a home?

A: No. A displaced homeowner gets an exemption if they’ve owned a home in the past 3 years. A person that is currently going through a divorce or separation and currently owns a home (even if it is to be sold soon) is not eligible for this lottery. They may apply after the home has been sold or title has been relinquished.

Q: If someone in my household is age 55 or over can I currently own a home?

A: Yes. Only households qualifying under the “age‐qualified household” exception may own a home when applying and this home must be sold before they purchase an affordable unit. The amount of equity that the “age‐qualified
household” will retain in equity from the sale of the house will be added to their asset total. Their asset total must be below $50,000.

Q: If I qualify for the lottery as an age‐qualified household, how much time will I be given to sell the home?

A: Before your closing date on the new affordable unit you must sell your current home. Age‐Qualified Homeowners that are found to be income and asset eligible will be able to sign a Purchase and Sale agreement for the new affordable unit. They will then likely need to sell their current home within 30 days and submit the documentation from the sale to the Lottery Agent who will then do a final verification of household asset eligibility. More detailed instructions for displaced homeowners will be given after the Lottery.