NEW HOUSING PURCHASE ASSISTANCE PROGRAM - Paola , KS
The Governing Body of the City of Paola, Miami County, Kansas, pursuant to the
provisions of K.S.A. 12-16, 114 et. seq.; does hereby adopt a New Housing Purchase
Assistance Program (herein sometimes called “Program”) for the City of Paola as
follows:
PURPOSE
The purpose of the City of Paola, Kansas New Housing Purchase Assistance Program
is to provide the community with a long-term increase and stabilization of the property
tax base by encouraging the construction and purchase of new homes which might not
otherwise occur. The New Housing Purchase Assistance Program is designed to assist
purchasers of new homes within the corporate limits of the City of Paola. The Program
is being created to provide a cash incentive by means of a one-time grant to home
buyers to: (1) have a new home constructed, (2) have a partially-constructed home
completed, or (3) purchase a newly-constructed but previously unoccupied home. The
New Housing Purchase Assistance Program is funded by the City of Paola New
Housing Purchase Assistance Trust Fund.
Under the New Housing Purchase Assistance Program, approved home buyers whose
income does not exceed the Program’s limits and who meet all other requirements of
the Program are eligible to receive a $5,000 grant. Grants through the Program will be
available for a period of 12 months from the date of implementation unless the Program
is extended by action of the City Council.
ELIGIBILITY
The New Housing Purchase Assistance Program is available to a home buyer who
meets the following qualifications:
1) The home buyer must occupy the purchased home as a primary, permanent
residence no later than 60 days after closing.
2) The home buyer must complete and submit an application for a New Housing
Purchase Assistance Program grant including all required documentation. When
the home buyer (if applicable) has selected a lender for the purpose of securing a
mortgage on the eligible property, the home buyer and the lender will be required
to complete and submit a Grant Funding Agreement.
ELIGIBLE HOUSING
Eligible housing for the purposes of the New Housing Purchase Assistance Program
shall be defined as follows:
1) Homes must be recently constructed, single family residences that have a
certificate of occupancy or a final inspection certificate, a partially constructed
single family residence to be finished, or a proposed single family home to be
constructed.
2) Homes cannot have been previously occupied.
3) The single family home property types include single family detached homes,
single family attached homes, condominiums, and manufactured homes
permanently affixed to a foundation.
4) A single family home that meets the above criteria that was under construction
prior to the implementation of this policy may be considered as being eligible for
grant consideration provided all permit and impact fees have been paid in full.
5) Construction of an eligible single family home must be completed and occupied
within 6 months of the date the Program first expires.
6) All newly constructed single family homes must comply with all zoning and
building codes, rules, and regulations in effect at the time the application for
Program funding is submitted, and must remain in compliance with all such
codes, rules, and regulations.
7) All ad valorem property taxes and any special assessments on the property for
which the application is submitted may not be delinquent. If the ad valorem
property taxes and any special assessments are delinquent, the property will not
be eligible for grant consideration until such time as all taxes and special
assessments due and owning are paid in full and proof of thereof provided to the
City of Paola.
GRANT APPLICATION PROCESS
To apply for and receive a written commitment for a New Housing Purchase Assistance
Program grant, a home buyer must complete an application form as provided and
approved by the City of Paola, and provide all documentation that may be required
including but not limited to:
1) A Lender Agreement when the home buyer is using a lender for mortgage loan
purposes
2) A Certificate of Occupancy or Final Inspection Report from the City of Paola
Community Development Department for completed homes
3) A copy of the purchase contract
4) A copy of the appraisal on the property
5) A copy of the HUD 1 Settlement Statement
6) Lender’s commitment letter (if applicable)
7) A copy of the purchase contract and a copy of the construction contract (if
applicable) for partially constructed homes to be finished
8) A copy of the land purchase contract or a title report showing whose name title is
vested and a copy of the construction contract for proposed homes to be
constructed
9) Name and address of the title company to whom the funds will be dispersed
10) Agreement to occupy the home within 60 days after closing
OTHER PROGRAM CRITERIA
The New Housing Purchase Assistance Program is available to all home buyers who
meet the income and eligibility requirements. It is not limited to first time home buyers.
First time home buyers who are eligible for the Federal First Time Home Buyers
Program and/or the Kansas First Time Home Buyers Program are encouraged to take
advantage of all home buyer assistance that is available.
The home buyer may obtain a mortgage loan from any qualified lender. Qualifying loans
include:
• Conventional
• FHA
• VA
• Rural Development
Any mortgage lender qualified to make mortgage loans under Kansas law may assist
home buyers in securing a New Housing Purchase Assistance Program grant.
The New Housing Purchase Assistance Program grant at the discretion of the home
buyer may be, but not limited to, used for closing costs, down payment, or mortgage
principal and interest reduction.
Cash purchasers of new homes may also qualify for the Program.
The New Housing Purchase Assistance Program may not be used in conjunction with
any other housing initiative program of the City of Paola.
In a subdivision where either sanitary sewer or water service is not provided by the City
of Paola and certain water or sanitary sewer connection fees are not paid to the City of
Paola, the amount of the grant will be reduced by 50%.
DEFINITIONS
When used in this Program document and any subsequent documents, the following
terms shall have the meanings hereinafter indicated:
1) “Appraisal” shall mean, with respect to each Eligible Home (whether completed,
partially completed, or proposed), the appraisal of the Eligible Home that has
been approved by the lender in connection with the making of the First Mortgage
Loan.
2) “Buyer” shall mean the individual or individuals purchasing an Eligible Home.
3) “Closing” shall mean, with respect to an Eligible Home, the purchase of an
Eligible Home by a Buyer.
4) “Eligible Home” shall mean a single family, never occupied residence within the
corporate limits of the City of Paola. When completed, such single family
residence must be permanently affixed to the real property and must have
achieved the status of an improvement to real property.
5) “Final Certificate of Occupancy” shall mean, with respect to each completed
Eligible Home, a final certificate of occupancy issued by the City of Paola
Community Development Department.
6) “Final Closing Documents” shall mean the final documents prepared by the
mortgage lender.
7) “Person” shall mean any individual, corporation, limited liability company,
partnership, joint venture, association, joint stock company, trust, estate,
unincorporated organization.
8) “Seller” shall mean, with respect to an Eligible Home, the person selling the
Eligible Home to the Buyer.
9) “Term” shall mean the period of time commencing on March 1, 2010 and ending
on February 28, 2011.
10) “Title Company” shall mean with respect to a closing, the title and escrow
company given responsibility for the closing.
AMENDMENT OR REPEAL
This Program may, at any time after adoption, be amended, supplemented, or repealed
by a majority vote of the Governing Body.
APPROVED AND ADOPTED by the Governing Body of the City of Paola, Miami
County, Kansas this 26th day of January, 2010.
The Governing Body of the City of Paola, Miami County, Kansas, pursuant to the
provisions of K.S.A. 12-16, 114 et. seq.; does hereby adopt a New Housing Purchase
Assistance Program (herein sometimes called “Program”) for the City of Paola as
follows:
PURPOSE
The purpose of the City of Paola, Kansas New Housing Purchase Assistance Program
is to provide the community with a long-term increase and stabilization of the property
tax base by encouraging the construction and purchase of new homes which might not
otherwise occur. The New Housing Purchase Assistance Program is designed to assist
purchasers of new homes within the corporate limits of the City of Paola. The Program
is being created to provide a cash incentive by means of a one-time grant to home
buyers to: (1) have a new home constructed, (2) have a partially-constructed home
completed, or (3) purchase a newly-constructed but previously unoccupied home. The
New Housing Purchase Assistance Program is funded by the City of Paola New
Housing Purchase Assistance Trust Fund.
Under the New Housing Purchase Assistance Program, approved home buyers whose
income does not exceed the Program’s limits and who meet all other requirements of
the Program are eligible to receive a $5,000 grant. Grants through the Program will be
available for a period of 12 months from the date of implementation unless the Program
is extended by action of the City Council.
ELIGIBILITY
The New Housing Purchase Assistance Program is available to a home buyer who
meets the following qualifications:
1) The home buyer must occupy the purchased home as a primary, permanent
residence no later than 60 days after closing.
2) The home buyer must complete and submit an application for a New Housing
Purchase Assistance Program grant including all required documentation. When
the home buyer (if applicable) has selected a lender for the purpose of securing a
mortgage on the eligible property, the home buyer and the lender will be required
to complete and submit a Grant Funding Agreement.
ELIGIBLE HOUSING
Eligible housing for the purposes of the New Housing Purchase Assistance Program
shall be defined as follows:
1) Homes must be recently constructed, single family residences that have a
certificate of occupancy or a final inspection certificate, a partially constructed
single family residence to be finished, or a proposed single family home to be
constructed.
2) Homes cannot have been previously occupied.
3) The single family home property types include single family detached homes,
single family attached homes, condominiums, and manufactured homes
permanently affixed to a foundation.
4) A single family home that meets the above criteria that was under construction
prior to the implementation of this policy may be considered as being eligible for
grant consideration provided all permit and impact fees have been paid in full.
5) Construction of an eligible single family home must be completed and occupied
within 6 months of the date the Program first expires.
6) All newly constructed single family homes must comply with all zoning and
building codes, rules, and regulations in effect at the time the application for
Program funding is submitted, and must remain in compliance with all such
codes, rules, and regulations.
7) All ad valorem property taxes and any special assessments on the property for
which the application is submitted may not be delinquent. If the ad valorem
property taxes and any special assessments are delinquent, the property will not
be eligible for grant consideration until such time as all taxes and special
assessments due and owning are paid in full and proof of thereof provided to the
City of Paola.
GRANT APPLICATION PROCESS
To apply for and receive a written commitment for a New Housing Purchase Assistance
Program grant, a home buyer must complete an application form as provided and
approved by the City of Paola, and provide all documentation that may be required
including but not limited to:
1) A Lender Agreement when the home buyer is using a lender for mortgage loan
purposes
2) A Certificate of Occupancy or Final Inspection Report from the City of Paola
Community Development Department for completed homes
3) A copy of the purchase contract
4) A copy of the appraisal on the property
5) A copy of the HUD 1 Settlement Statement
6) Lender’s commitment letter (if applicable)
7) A copy of the purchase contract and a copy of the construction contract (if
applicable) for partially constructed homes to be finished
8) A copy of the land purchase contract or a title report showing whose name title is
vested and a copy of the construction contract for proposed homes to be
constructed
9) Name and address of the title company to whom the funds will be dispersed
10) Agreement to occupy the home within 60 days after closing
OTHER PROGRAM CRITERIA
The New Housing Purchase Assistance Program is available to all home buyers who
meet the income and eligibility requirements. It is not limited to first time home buyers.
First time home buyers who are eligible for the Federal First Time Home Buyers
Program and/or the Kansas First Time Home Buyers Program are encouraged to take
advantage of all home buyer assistance that is available.
The home buyer may obtain a mortgage loan from any qualified lender. Qualifying loans
include:
• Conventional
• FHA
• VA
• Rural Development
Any mortgage lender qualified to make mortgage loans under Kansas law may assist
home buyers in securing a New Housing Purchase Assistance Program grant.
The New Housing Purchase Assistance Program grant at the discretion of the home
buyer may be, but not limited to, used for closing costs, down payment, or mortgage
principal and interest reduction.
Cash purchasers of new homes may also qualify for the Program.
The New Housing Purchase Assistance Program may not be used in conjunction with
any other housing initiative program of the City of Paola.
In a subdivision where either sanitary sewer or water service is not provided by the City
of Paola and certain water or sanitary sewer connection fees are not paid to the City of
Paola, the amount of the grant will be reduced by 50%.
DEFINITIONS
When used in this Program document and any subsequent documents, the following
terms shall have the meanings hereinafter indicated:
1) “Appraisal” shall mean, with respect to each Eligible Home (whether completed,
partially completed, or proposed), the appraisal of the Eligible Home that has
been approved by the lender in connection with the making of the First Mortgage
Loan.
2) “Buyer” shall mean the individual or individuals purchasing an Eligible Home.
3) “Closing” shall mean, with respect to an Eligible Home, the purchase of an
Eligible Home by a Buyer.
4) “Eligible Home” shall mean a single family, never occupied residence within the
corporate limits of the City of Paola. When completed, such single family
residence must be permanently affixed to the real property and must have
achieved the status of an improvement to real property.
5) “Final Certificate of Occupancy” shall mean, with respect to each completed
Eligible Home, a final certificate of occupancy issued by the City of Paola
Community Development Department.
6) “Final Closing Documents” shall mean the final documents prepared by the
mortgage lender.
7) “Person” shall mean any individual, corporation, limited liability company,
partnership, joint venture, association, joint stock company, trust, estate,
unincorporated organization.
8) “Seller” shall mean, with respect to an Eligible Home, the person selling the
Eligible Home to the Buyer.
9) “Term” shall mean the period of time commencing on March 1, 2010 and ending
on February 28, 2011.
10) “Title Company” shall mean with respect to a closing, the title and escrow
company given responsibility for the closing.
AMENDMENT OR REPEAL
This Program may, at any time after adoption, be amended, supplemented, or repealed
by a majority vote of the Governing Body.
APPROVED AND ADOPTED by the Governing Body of the City of Paola, Miami
County, Kansas this 26th day of January, 2010.
Hannes Poetter - a passion for real estate |
Hannes Poetter - a passion for real estate |
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