Dear Home Ownership Applicant:

Here is the City of Leavenworth’s Community Development Block Grant (CDBG) Home Ownership Program. Applications will be accepted on a first-come, first-served basis until funds are exhausted. Please return the application promptly with the following attachments: 1. Rent receipts or cancelled checks for the past three months’ rent at your current location 2. Latest IRS Form 1040 (please check the Income Limits chart to verify that you do not exceed the Moderate Income Limit to qualify for this program) 3. Pay stubs for the last two months 4. Pre-approval letter from lender of your choice 5. Certificate from online home buying course Please read all program guidelines and the application completely. Note that you must have a first mortgage preapproved through a bank or mortgage company prior to applying for this program. I encourage you to apply for this program as soon as you have been preapproved for your loan. Each application must be approved by the Community Development Coordinator, and the house has to pass a Housing Quality Standards inspection. We recommend getting your application in early so that waiting for approval doesn’t delay your closing. At closing, a five year lien for the amount of CDBG assistance will be filed against the property you purchase. If you still own, and live in the house, at the end of the five-year period, the lien will be forgiven. If you sell or otherwise take action affecting title, such as refinancing or transferring, during that five years, you will be required to repay all or a portion of the grant amount. Please carefully complete the entire application and attach all of the required supporting documents to expedite the processing of your application. If you have questions, please call (913) 680-2626. Sincerely,

Mary Dwyer Community Development Coordinator

First Time Home Buyers Program Guidelines/Application City of Leavenworth effective 9/15/15

HOME OWNERSHIP ASSISTANCE PROGRAM PROGRAM GUIDELINES The purpose of this program is to assist renters in purchasing single-family homes within the corporate boundaries of the City. It may not be used for the purchase of commercial or income-producing property. Both the applicant and the home must qualify for the program.

Applicant: 1. The applicant must meet the income guidelines adopted by HUD for low/moderate income clients. 2. Applicant(s) shall not have owned a home for five (5) years. 3. Applicant(s) must be credit-worthy and otherwise able to purchase and finance a home but must need the assistance. 4. Applicants must be preapproved for the purchase of a home by a bank or mortgage company. 5. Persons or families who have received CDBG or HOME [including first time homebuyer] grants or loans on or after January 1, 1984 are not eligible. 6. Applicant(s) must sign a lien for the total amount of assistance for five (5) years to encourage remaining in the home for that length of time. 7. In all cases, the applicant is required to provide from their funds one-half (½) of the required down payment for the mortgage program being used. 8. Preference will be given to applicants approved for fixed-rate loans who currently live in the Leavenworth city limits.

House: 1. House must be within the Leavenworth city limits. 2. No assistance will be given to applicants purchasing a home in the 100-year Flood Plain. 3. Property may not have received CDBG, HOME [including Kansas First Time Homebuyer down payment assistance] or Rental Rehabilitation grants or loans on or after January 1, 1984. 4. Staff shall inspect homes for a minimum standard of livability (HQS) and the house must pass this inspection prior to closing. The City will cover costs associated with the initial HQS inspection and one re-inspection. Additional re-inspection fees will be the responsibility of the buyer (program applicant). 5. No assistance will be given for the purchase of an occupied rental home, unless the applicant is the current tenant of that home. 6. If purchasing a For Sale by Owner (FSBO) property, the applicant must obtain the services of a licensed buyers’ agent. 7. If the Property is a mobile home or a structure not attached to a permanent foundation it is not eligible. 8. Home must be valued at $150,000 or less.

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Additional requirements and guidelines: 1. Application Process: Applicants should apply for the program as soon as they receive preapproval in order to expedite the process. 2. Home Price: Purchase price of the home should be approximately the amount applicant is preapproved for plus the grant from the City. Home price cannot exceed $150,000. 3. Down payment or grant recipient financial participation: In all cases, the applicant is required to provide from their funds one-half (½) of the required down payment for the mortgage program being used. 4. Grant amount to be used toward down payment, interest buy down, principal buy down, closing costs or a combination of above: The grant amount will not exceed 10% of the Contract purchase price for buyers qualifying as moderate income and 15% of the contract purchase price for buyers qualifying as low income. Additionally no grant amount will exceed $8,000 for buyers qualifying under income guidelines of moderate income and $12,000 for buyers qualifying under income guidelines of low income. 5. Use of Grant Funds: The money provided by the City through the Block Grant Program must be used to assist in the down payment, provide principal buy-down, pay closing costs, interest rate buy-down or a combination of the above. In no case can the program be used to provide money directly to the buyer. The buyer cannot create a loan situation whereby money is given to the buyer at closing. 6. Housing Counseling/Education: Applicants must present proof of completion of required housing counseling/education when applying. On-line training with certificates of completion is available at no cost at www.homebuyerfunds.com. 7. Applicants should close on purchased home within 90 days of grant approval.

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INCOME LIMITS Home Ownership Assistance Program Household Size 1 Person 2 Persons 3 Persons 4 Persons 5 Persons 6 Persons 7 Persons 8 Persons

Low Income $25,700 $29,350 $33,000 $36,650 $39,650 $42,550 $45,450 $48,400

*Moderate Income $ 41,000 $ 46,950 $ 52,800 $ 58,650 $ 63,350 $ 68,050 $ 72,750 $ 77,450

*Figures are adjusted annually by the Department of Housing and Urban Development; current rates effective March 2015. Notice: Department of Housing and Urban Development (HUD) program income limits and qualifications are subject to change without notice. Additional conditions and limitations to this program are in effect. This program is funded by HUD’s Community Development Block Grant Program (CDBG) and is conducted and administered in conformity with title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d), the Fair Housing Act (42 U.S.C. 3601-3619), and implementing regulations.

Applicants whose income is below the “low” cap may qualify for up to $12,000 or 15% of the selling price of the home, whichever is less; applicants who make more than the “low” limit but less than the “moderate” limit may qualify for up to $8,000 or 10% of the selling price, whichever is less.

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HOMEBUYER ASSISTANCE PROGRAM APPLICATION Date Applied:________________ APPLICANT INFORMATION (Please Print) Applicant Name Co-Applicant Name Current Address Home Phone No. Cell Phone No. Email Address Work Phone No.

RENTAL HISTORY (Please Print) List all places of residence beginning with current address and dating back at least three years. Address

NOTE:

Landlord

Date From

Date To

Attach rent receipts or cancelled checks for past six months as proof of

current residence.

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HOUSEHOLD INCOME: Employment Information: Applicant

Co-Applicant

Name of Employer Employer’s Address Employer’s Phone Number Length of Employment Note: If employed less than one (1) year with the above listed employer, please provide list of employers and information for the entire year. If other employed adults (18 yrs. old and older) are in the household, please provide their employer’s name, address, and length of employment on attached sheet. If an adult over 18 yrs. old is going to be living in the residence and has no income, they will need to sign an affidavit of no income. ANNUAL INCOME

APPLICANT

CO-APPLICANT

OTHER ADULT

Gross Wages Social Security Pension/Annuity SRS/ADC Child Support/Alimony Disability Investment Interest Other (unemployment, etc.) TOTALS

Projected current year combined annual household income: $ _____________ Attach last year’s IRS Form 1040. Attach pre-approval letter from lender. Attach certificate from home buying course.

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PERSONAL DATA (Please Print) Names of all persons in the household, birth dates and age [the household is all persons normally living in the household even if temporarily displaced (i.e. military assigned overseas), at the time of application whether related or unrelated to the head of the household]. Also, list part-time residents such as children visiting a non-custodial parent. Name

Date of Birth

Age

Check here ( ) if you have additional family members and list on reverse side. Please list all assets at time of application for all adults in household. ASSETS

APPLICANT

Money, bank accounts, IRA, etc. Stock/bond value Vehicle #1 Vehicle #2 Other property in your name Business Assets Other taxable assets

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CO-APPLICANT

OTHER ADULT

Questions: 1. Have you or the property received a grant from the City of Leavenworth or the State of Kansas for homebuying assistance or house repairs? ___yes ___no If yes, what year? ____________ 2. Do you own other property besides this house? __yes __no If yes, what address? _________________________________________________________________________ HUD requires the City of Leavenworth to report the following information for all grant recipients. HUD encourages self-reporting but you are not required to furnish the following racial/ethnic information: Head of Household Marital Status: ( )Married, ( )Divorced, ( )Widow(er), ( )Single (never married) Race: ( )White, ( ) Black/African American, ( )Asian, ( )American Indian/Alaskan Native, ( )Native Hawaiian/Other Pacific Islander, ( )American Indian or Alaskan Native and White, ( ) Asian and White, ( ) American Indian or Alaskan Native and Black or African American, ( ) Other Multi-Racial, ( ) Asian/Pacific Islander Ethnicity: ( ) Hispanic or Latino, ( ) Neither

CERTIFICATION Please certify by signature that you have read and understand all Home Buyer Assistance Program guidelines and that you qualify for the program and agree to abide by terms and conditions expressed in those documents, including the placing of a five (5) year lien on your property for the amount of CDBG assistance you are receiving. Should the property be subject to any action affecting the deed, including sale, refinancing, or transferring, within five (5) years from the date the lien is signed, you will be required to repay the City in full. ____________________________ Applicant

_________________________ Applicant

____________________________ Date

_________________________ Date

Return completed application and documentation by mail or in person to: Community Development, 100 N. 5th St, Leavenworth, KS 66048.

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CERTIFICATION OF APPLICANT(S) The applicant certifies that all the information in this application is given for the purpose of obtaining a grant under the Community Development Block Grant Home Rehab Program, and is true and complete to the best of the applicant’s knowledge and belief. The following documents are attached hereto and to the best of my/our knowledge are accurate copies of the originals: _____ 1. Rent receipts for the last 6 months. _____ 2. Employment and/or income verification (Attach all that apply.) a. Payroll check stubs for the most recent two pay periods (3 periods if variable) b. Copy of annual social security determination letter c. Copy of letter of eligibility for annuity or pension d. If applicant receives child support or alimony: Copy of document determining monthly amount. e. Unemployment or Disability Determination Letter f. Statement of interest earnings for last two years from all accounts g. Copy of last filed IRS federal tax forms _____ 3. Certificate from home buying course. ______4. Pre-approval letter from lender. The undersigned acknowledge receipt of the following materials: Attachment #1 – Sample Lien Statement, Attachment. If the approving officer determines that the first time home buyer’s loan cannot be made for the purposes described herein, the applicant understands that the City shall provide no assistance for this project. The applicant agrees not to discriminate upon the basis of race, color, creed or national origin in the future sale, lease, rental, use, improvement or occupancy of the real property rehabilitated with assistance from this loan. Verification of any of the information contained in this application may be obtained from any source named herein. By the application the undersigned consent to release of income information. By my/our own signature(s), I/we acknowledge receipt of, have read and understand the City’s First Time Home Buyer’s Policy and I/we agree to abide by the terms of the policy, the FTHB contract documents and applicable City codes.

_______________________ Applicant’s Signature

_______________________ Co Applicant Signature

Applications cannot be accepted for further processing if the following apply:

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Staff Check ______ 1.) Property is in a designated flood plain; ______ 2.) Property is used by households with a total combined, gross family income in excess of stipulated limits from all sources accruing to all household members 18 years of age or older. _______ 3.) Property is on the rental list or is used for rental purposes of any type including rent received from storage of materials, sleeping rooms for boarders or shared housing arrangements with multiple families/persons whether related or unrelated to the applicant. _______ 4.) Properties which have received CDBG, HOME [including Kansas First Time Homebuyer down payment assistance] or Rental Rehabilitation grants or loans on or after January 1, 1984. _______ 5.) Persons or families who have received CDBG or HOME [including first time homebuyer] grants or loans on or after January 1, 1984. _______ 6.) Property is a mobile home or a structure not attached to a permanent foundation.

At any time during the application process, if any of the above statements are found to be true, this application is void and staff will not process it any further. A file copy of the rejected application with reason stated will be kept for the record.

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LIEN STATEMENT TO: The City of Leavenworth, KS, and all concerned persons with interest in property described as follows: I/WE, _________________________________________________, ATTEST AS FOLLOWS: 1.

I/We received a grant in the amount of $ _________from the Community Development Department, City of Leavenworth, Kansas, for the purpose of buying the property described as ___________________________, located at____________________________________.

2. I/We do agree, as a condition of accepting this grant NOT to sell or refinance the above described property for a period of five (5) years from the date of closing and/or as otherwise agreed upon, (TO WIT: ____ day of______, 201__) or I/we will repay the grant. Sale as used herein includes any conveyance of interest by contract or deed. 3. I/We agree to fully repay this grant upon any resale or refinancing for any reason during the term of this lien. If equity and/or appreciation are not sufficient to pay all judgments against the property, I/We shall enter a repayment agreement with the City. I/We agree to fully repay this grant upon any renting of the property to parties not assigned to this agreement or for any other violation of the terms of this agreement. I/We agree to fully repay this grant upon citation and conviction of any property code violation during the five year term of this lien. I/WE HEREBY ACKNOWLEDGE AND ACCEPT THE ABOVE CONDITIONS AND STATEMENTS AS TRUE AND CORRECT. DATED THIS _____ DAY OF ________________________, 20 _____. __________________________________ Owner (Print Name)

_________________________________ Owner (Signature)

__________________________________ Owner (Print Name)

_________________________________ Owner (Signature)

STATE OF KANSAS COUNTY OF LEAVENWORTH

BE IT REMEMBERED, that on this _____ day of _____________________, 20_____, before me, the undersigned, a notary public in and for the County and State aforesaid, came _______________________________, who _____ personally known to me to be the same person(s) who executed the foregoing lien statement, and duly acknowledged the execution of the same. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my notarial seal on the day and year last above written.

_________________________________________ NOTARY PUBLIC STATE OF KANSAS, LEAVENWORTH COUNTY

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My Commission expires: _______________________

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