The City of Brazil is looking for residents interested in purchasing a home through the Neighborhood Stabilization Program (NSP).
Brazil Planning Administrator Stacy Gibbens told The Brazil Times five preliminary floor plans have been proposed by The Architecture Studio, Inc., Indianapolis, which was hired through NSP funds in December.
According to a press release supplied by Angie Pappano, Vice President for Kenna Consulting and Management Group, Inc., Indianapolis, the city is anticipating to complete a total of 10 newly constructed or rehabilitated homes to be put up for sale by the end of 2010.
"The homes rehabilitated and built with this grant program then will be sold to qualified homebuyers," Pappano said in the press release. "Though the program can assist households earning up to 120 percent of the Clay County Area Median Income (AMI), the target income group for the program is households earning at or below 50 percent of the AMI, adjusted for family size as determined by the United States Department Housing and Urban Development (HUD)."
Currently, 50 percent of the AMI for Clay County for a one-person household is $19,450 and $29,950 for a five-person household. The 120 percent AMI Income Limit for the same size households are $46,680 and $71,880, respectively. All figures are calculated based on the gross household income, which includes all earned, gift and federal assistance income.
Gibbens explained just because a household's income may be above the 50 percent AMI, it may not disqualify them from the program.
"NSP guidelines specify that all of the homes must be sold to homebuyers earning less than 120 percent of the Clay County AMI," she said. "However, one of the program's goals is to sell more than half of the homes either built or rehabbed to those earning less than 50 percent of the AMI."
To this point, 10 people have expressed interest in participating in the NSP Homebuyer Program, and have been sent applications from Pappano.
Gibbens added the Homebuyer Program assists those interested in purchasing a home to do so more affordably, even if their qualified loan amount is not enough on its own.
"All of the homes will be sold for the cost of developing the home," Gibbens said. "However, in some cases a homebuyer may be eligible to receive a subsidy on the purchase price of the home."
For example, if the cost to develop a home is $100,000, but the qualified loan amount is only $75,000, a subsidy of $25,000 could be secured to make the purchase.
"This grant would be secured in the form of a soft second mortgage and attached to the property for a period of 10-20 years," Pappano said in the press release. "This grant does not require any repayment as long as the home remains the primary residence of the homebuyer."
Also, potential homebuyers must agree to participate in a HUD approved Homeownership Counseling Course, which typically consists of eight one-hour sessions, which are paid for by the grant program of the counseling provider.
Gibbens added the city plans to advertise for bids from contractors in early May, with the bids to be opened in early May. If that timetable remains firm, construction and rehabilitation of homes could begin as early as mid May.
The NSP is centralized in the Fairview-Hendrix Neighborhood, which is located west of Depot Street, between United States 40 and Hendrix Street. The name of the neighborhood was created based on the legal descriptions of the area's parcels.
For more information about the NSP homebuyer program, or to request an application packet, contact Pappano at 317-781-1651 or email@example.com. Residents may also contact Gibbens at 446-0050 or firstname.lastname@example.org to request information. Gibbens told The Brazil Times she can also forward information and application requests to Pappano if needed.