The City of West Palm Beach was awarded $4.3 million through the U.S. Department of Housing and Urban Development’s Neighborhood Stabilization Program (NSP).
NSP funds are to be used to purchase foreclosed and abandoned properties and to rehabilitate or redevelop these properties for occupancy by qualifying families.
The City of West Palm Beach has targeted its initial NSP award to assist with revitalization of the Coleman Park Neighborhood and has developed a “50-50 Homebuyer Assistance Initiative for assist homebuyers who desire to purchase a residence in the Coleman Park Neighborhood.
The neighborhoods will have the added benefits of free wireless internet access, new city programs and activities, and a new community hub among other transforming elements. By focusing efforts in this community…a true positive transformation will occur in blighted areas.
To participate in the City’s 50-50 Homebuyer Assistance Initiative a family must meet the following qualifications:
- Annual household income cannot exceed 120 percent of the area median income (adjusted for family size) at the time of purchase
- Must attend and complete an 18 hour Homebuyer Education Class
- Must occupy the property as their primary residence
- Must be able to secure a 1st mortgage for 50 percent of the purchase price of the property
- Must provide a down payment equal to 1.75 percent of the purchase price
The City of West Palm Beach will provide a “soft” 2nd mortgage (up to $80,000) for the remainder of the purchase price. If the property is sold during the first five years of ownership the initial purchaser is allowed to receive any increase in value (appreciation) the “soft” 2nd mortgage would be fully assumable by the subsequent purchaser.
During the 20 year period of affordability, the property can only be sold to a homebuyer whose household income does not exceed 120 percent of the area median income and the property must be the homebuyer’s primary residence.
If the property is sold after the 5th year of ownership, the initial purchaser is allowed to receive any increase in value (appreciation) and 5 percent per year (retroactive to year 1) reduction of the City’s “soft” 2nd mortgage. After 20 years, the City’s “soft” 2nd mortgage is forgiven.
Existing residences purchased and rehabilitated by the City are expected to be made available for purchase at prices below $90,000 and new constructed homes are expected to be available at prices ranging from $130,000-$160,000.
The City expects to assist 50-60 families with homeownership through the 50-50 Homebuyer Assistance Initiative.
Household Size Maximum Income
1 person $63,360
2 person $72,360
3 person $81,480
4 person $90,480
5 person $97,680
Interested parties can get more information this Saturday at Coleman Park from 10AM – 2PM or by calling the City of West Palm Beach at 822-1250.