Frequently Asked Questions

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What are the eligibility requirements to participate in the lottery?

1. Each applicant must meet the maximum allowable income limits, adjusted for household size. Refer to individual lottery for income limits as they may differ from project to project.

2. Must be a first time homebuyer (never owned or not owned a home as a principal residence for a period of three years.) *See 55+, See displaced homemaker.

3. Have $50,000 or less in household assets.

What is included in household assets?

Assets include all cash, cash in savings accounts, checking accounts, certificates of deposit, gifts for downpayment, bonds, stocks and the value of real estate holdings and other forms of capital investments.

Restricted accounts, such IRAs, 401(k)s, SEPs, and pension funds will not be used to calculate total amount of assets, but will be used to calculate gross income, if a household is currently drawing down from the account(s).   If project is a Local Initiative Project (LIP) retirement accounts can be used for 55+ households in determining income.

I am over 55 years old, are there different guidelines to purchase an affordable unit?

Yes. You still must meet the maximum allowable income limit for your household size. However, you can currently own your own home. This home must be sold to purchase an affordable unit. There is a limit to the amount of equity you can realize from the sale of your home. The allowable equity is currently set at $150,000. You may also have up to $50,000 in household assets, exclusive of the equity in the sold home.

If a Local Initiative Project (LIP) you still must meet the maximum allowable income limit for your household size and this includes the value of your retirement accounts, IRA's, 401K etc.  Additionally, if you currently own your home and sell to purchase the affordable unit you can use the proceeds  for a downpayment or to pay cash for the home.  Any remaining equity over $100,000 is considered part of your assets, which can not exceed $50,000.

What is the difference between Age Restricted or Age Qualified housing?

There is no difference.  Both means at least one person in the household is 55+.

I am expecting a baby, do I add the child to our household size?

It depends when the baby is due. Provide a due date on the application and you will be notified if you can include the child in your household size.

I pay or receive alimony and/or child support. Do I need to include it in my monthly income?

Yes, child support and alimony received by the applicant is counted as income. If you pay child support and/or alimony, it cannot be deducted from income regardless of household size.

I owned a home with my spouse within the last three years and we are now divorced, can I be considered a first time homebuyer?

Yes, you are considered a displaced homemaker. HUD defines a displaced homemaker as: Any individual who is a displaced homemaker may be considered a first-time homebuyer on the basis that the individual, while a homemaker, owned a home with his or her spouse or resided in a home owned by the spouse.

Are there preferences for local residents?

Yes. Due to the community support provided to projects, up to 70% of the affordable homes can be reserved for local residents. Refer to the application for local preference guidelines.

Are there preferences for families?

In all cases preference for two bedrooms home will be given to households with at least one child. Preference for three-bedroom units will be given to households with two or more children.

I am single, does that mean I cannot participate in the lottery?

No, it means that two or more person households would receive preference over a single person household. However, if all two or more person households are offered the unit and are unable to purchase we would then move to the one person households and offer them the unit based on their lottery rank.

Is there a household size preference for one bedroom units?

No. Usually the one bedroom units are open to single person households.

What does it mean if I “win” a home in the lottery?

It does not mean that you automatically “win” a home. It means you have the opportunity to purchase a home, at a reduced sales price, provided you meet all program eligibility requirements and can secure a mortgage. If you meet the eligibility requirements but are unable to secure a mortgage you would loose the opportunity to purchase the home/unit.

We didn’t win a unit in the lottery, what happens next?

If you were not an initial lottery winner, we have your lottery placement on the lottery ranking list. Should the initial winners be unable to purchase the unit for any reason we move to the next eligible applicant on the list until all units have been sold. Typically, there is some movement on the ranking list so if you ranked high you still may have an opportunity to buy.

Will we automatically be notified of future lotteries?

Yes, provided you have registered on this website. As new lotteries are posted an email will be sent to all registered members announcing a new lottery. You will then have to complete the appropriate lottery application and submit it to be entered in the new lottery.

Are there any restrictions to the type of mortgages required to purchase the unit?

Yes. They are:

1. The mortgage must be a fixed rate mortgage, typically 30 years.
2. Non-household members cannot be co-signers on the mortgage.
3. Buyer responsible for all down payments and closing costs.

Are there any restrictions to the affordable units?

Yes. Deed restrictions are used to ensure the homes are affordable for future buyers and are attached to the property in perpetuity. If you choose to sell your home, there is a limit on the resale price. The maximum resale price is determined using a Resale Price Multiplier, which is used to allow the price to adjust at a level consistent with area income levels. This figure is calculated by taking the initial sales price and dividing it by the area median income. For example, an initial 2 bedroom home price is $121,000 and the current area median income is $62,200, the Resale Price Multiplier would be $121,000/$62,200 = 1.95.

Upon resale, the Resale Price Multiplier is multiplied by the updated area median income number to determine the maximum resale price. For example, if the original buyer decides to sell the home in 5 years and (we assume) the then current area median income has increased to $70,000 the resale price would be determine as follows: $70,000 x 1.95 = $136,500.

In addition, the Monitoring Agent receives a resale fee that can be added to the maximum resale price and would be paid by the buyer.

How does the unit stay affordable?

Every buyer of an affordable unit signs a Deed Rider at closing. This is a legally binding document that states the unit stays affordable in perpetuity, provides the resale price multiplier and outlines the steps taken should you decide to sell. It is strongly recommended all affordable homeowners become familiar with the contents of the Deed Rider.

Can I sell the unit in the future and what do I do?

Yes. You would contact the Monitoring Agent assigned to the project. They are listed in the Deed Rider. The Monitoring Agent would establish the resale price and would administer the process. The price would be established using the Resale Price Multiplier with a resale fee, set by the Monitoring Agent, added to the price.

Can I rent or lease out the unit?

No. All units must be owner occupied.

However, there may be situations where, for example, you are transferred for a year. In those cases you may be able to rent or lease for up to one year. In all cases approval must be received by the Monitoring Agent, prior to renting or leasing the home. Typically, any rent in excess of your mortgage payment would be sent to the municipality.

Am I able to apply for a current housing lottery if I was a previous winner and currently reside in the home?

No. Since you are a current homeowner you would no longer meet the program eligibility requirements.