DEED RIDER SUMMARY/ PROPERTY RESTRICTIONS

This is not the Deed Rider. A copy of the actual Deed Rider should be available from the Lottery Agent for review.
The purpose of this summary is intended to be informational only and it is not a substitute for independent legal advice. It is intended to highlight some of the obligations a purchaser will have upon resale. The Deed Rider is an especially important legal document; in part it ensures that the home remains affordable for future buyers of
your property. Purchasers are encouraged to read carefully and to seek legal counsel to have a full understanding of their obligations of the Deed Rider in its entirety. All of the deeds for the homes designated as affordable will have a deed rider, which you will be required to sign and will be recorded in the public records. The rider in part
will ensure that the home will stay affordable in perpetuity. Assuming you qualify, you will be given an opportunity to purchase a home at a substantial discount (“the affordable price”) of the property’s fair market value.
However, at a minimum the purchaser must agree as follows:

PRINCIPAL RESIDENCE
To occupy the home as a principal residence, where you regularly live, eat, sleep, are registered to vote, etc.

LEASING AND REFINANCING
You may not rent, lease or refinance your home without the prior written consent from DHCD and the Town. In addition, you must notify the Town and DHCD if you are going to refinance your mortgage.

NOTICES WHEN SELLING YOUR HOME
When you wish to sell your home, you must notify the Town and DHCD. This notice is referred to as the “Conveyance Notice” in the Deed Rider. The notice must include the Resale Price Multiplier and the maximum resale price, which DHCD must approve.

MAXIMUM RESALE PRICE
The Maximum Resale Price is limited by the percentage change in the area median income, with credit for certain capital improvements. As an example only, the maximum resale price is calculated assuming a base number
(most recent published Area Median Income as determined by HUD). At the time of initial sale the AMI is $ 82,400 (A) and the initial sales price is $ 154,200 (B) the Resale Price Multiplier would equal B/A = (C) = 1.871. Upon resale, assuming the base number has increased to $ 84,500 (D) and the cost of approved capital improvements (ex. new roof, $5,000), the maximum resale price would be calculated as follows:

New Base number (D) x Resale Price Multiplier (C) = $84,500 x 1.871 = $158,130 (E) plus
Approved Capital Improvements (new roof) = $ 5,000
THE MAXIMUM RESALE PRICE IS (E) plus Capital Improvements = $163,130

This is just an example.
There is also no guaranteed that you will be able to sell your home for the maximum resale price.

RESALE PROCESS
Under no conditions can the home be sold for more than the Maximum Resale Price. Once the Town of Natick and DHCD receive the notice to sell, the Town/DHCD has 90 days to find an eligible buyer (a homebuyer whose income is at 80% of the base are median income and who meets the asset limit). The Town/DHCD can also decide within
those 90 days to purchase the home. If the Town/DHCD finds an eligible buyer within the 90‐day period, an Eligible
Purchaser Certificate will be issued to the new buyer. The certificate states that the sale complies with the Deed Rider. If the Town/DHCD purchases your home, a Municipal Purchaser Certificate is issued. If the Town/DHCD finds an eligible buyer within 90 days, but that buyer cannot obtain financing or is otherwise unable to purchase the home, the Town/DHCD can receive an extension of an additional 60 days. If 120 days pass from the date of the Conveyance Notice, and the Town/DHCD cannot find an eligible buyer and the Town/DHCD does not want to purchase the home, you may sell your home for the Maximum Resale Price to an Ineligible Buyer who will also have to sign a Deed Rider, ensuring the home will still be subject to all the same rights and conditions.

IN CASES OF FORECLOSURE
If you do not pay your mortgage on time, or if you fall behind on payments, your bank or mortgage company has the right to take your home by foreclosing on the mortgage. In case of foreclosure, the bank or mortgage company that holds your mortgage should notify the Monitoring Agent and the town 60 days before foreclosure proceedings begin
or before the bank accepts the home in lieu of foreclosure. During that 60 day period, if it is determined that the remaining principal balance of the mortgage does not exceed the calculated maximum resale price, then the Deed Rider restrictions do not apply to any buyer that purchases the foreclosed home. Also during that 60‐day period, the Town can decide to purchase the home for the greater of the remaining principal mortgage balance, or the calculated maximum resale price. If the home is foreclosed upon and sold for a price higher than either the remaining principal balance or the maximum resale price (whichever is higher), then the excess should be paid to the Town for its Affordable Housing Trust.

Again, this is just an example summary of a Deed Rider. Applicants will be directed to a copy of a blank Deed Rider which will later be made available on the SEB webpage:
www.s‐e‐b.com/lotteries/Natick/LIP_Deed_Rider.
The actual Deed Rider for the closing will be provided by DHCD.
You will want to retain a legal or other counsel to understand your obligations if you
are asked to move forward in the process of purchasing an affordable unit