Process For Participating in the Program

ADA Preferred Closing Attorneys

ADA Preferred Homebuyer Seminar Providers

ADA Preferred Lenders

Affordable Housing Brochure

• A minimum of 20% of the for-sale housing units (the “Purchased Unit”) in projects that receive Eastside Tax Allocation District (“TAD”) funding will be sold to qualified buyers (as described below) (the “Qualified Buyer”) at an affordable price
• Public Subsidy/Buy-Down (the “Buy-Down”) is equal to the difference between the market price (as determined by a third party appraisal acceptable to The Atlanta Development Authority (“ADA”)) and the affordable price for the Purchased Unit, outlined below:

• A lien on the Purchased Unit in the amount of the Buy-Down secured by a mortgage on the Purchased Unit subordinate to the mortgage held by entity providing the financing (the “Loan”) for the purchase of the Purchased Unit (the “Lender”)
• Buy-Down is a 0% interest rate, 50 year deferred loan
• Buy-Down is paid to ADA or its designee (“ADA/Trust”) upon sale, transfer or refinancing of the Purchased Unit or when the Qualified Buyer no longer occupies the Purchased Unit as his/her principal residence
• The Qualified Buyer will not be permitted to obtain a home equity loan using the Purchased Unit as collateral unless the Buy-Down is paid to ADA/Trust
• The Qualified Buyer can only refinance with a rate-term refinance (no cash-out refinancing is permitted)
• Only 30-year fixed-rate mortgages are permitted on Purchased Units (subject to annual review and approval by ADA)
• All documentation associated with the Loan must be approved by the ADA
• Upon the sale of the Purchased Unit, sale proceeds will be distributed in the following order:           
• Payment of the Loan
• Repayment of other deferred loan, if applicable
• Payment of Buy-Down amount to ADA/Trust
• Remainder to Qualified Buyer
• In the event of death, the Buy-Down must be repaid in full to ADA/Trust, if the Purchased Unit is transferred to an individual or family whose income exceeds the following limits:
  
  

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* Atlanta metropolitan statistical area median income.
Revised 5/10/07

Eligibility Requirements

• Qualified Buyer must have an annual gross household income that does not exceed 80% of the Atlanta metropolitan statistical area median income level as defined by the U.S. Department of Housing and Urban Development. The income limit for 2007 is $56,950 per household
• The Purchased Unit must be the Qualified Buyer’s principal residence
• Qualified Buyer is not allowed to own any other real estate prior to closing the Purchased Units
• Qualified Buyer must demonstrate the need for the Buy-Down by satisfying the * “But For” asset test to ensure compliance of the intent and spirit of the program (“But For” the TAD Subsidy the Qualified Buyer would not qualify for the Purchased Unit)
• Qualified Buyer must contribute with a minimum of $1,500 of their own funds toward closing costs for the Loan or a down payment for the Purchased Unit (the source of these funds cannot be a grant, loan or gift from a third party)
• Qualified Buyer must sign Acknowledgment of the Buy-Down which will include certain covenants and conditions related to the Buy-Down as then required by ADA
• Qualified Buyer must attend and receive a certificate from an ADA approved homebuyer training session prior to closing the loan with the Lender (online courses are not permitted)
• Lender must be approved by ADA (*If developer would like to include additional lenders on this list, the lender must submit an application and attend a lender training session.)
• If the Purchased Unit is a part of the Oakland Park (563 Memorial Drive) or Tribute Lofts (480 John Wesley Dobbs Avenue) projects, the Qualified Buyer must be a first-time homebuyer or not have owned a home that was their principal residence within the past three years
• If the Purchased Unit is a part of the Oakland Park (563 Memorial Drive) or Tribute Lofts (480 John Wesley Dobbs Avenue) projects, the market price for each Purchased Unit may not exceed $299,475.  Otherwise, the market price for the Purchased Unit may not exceed $366,025
  
  

Eligible Properties

• Single-family detached homes, townhouses and condominiums within the Eastside TAD

* Note: The ability to liquidate current property holdings to alleviate the need for the Buy-Down will be taken into account.

Developer Participation

• Developer and the Qualified Buyer will negotiate the terms for the purchase of the condominium unit or house
• Developer and ADA/Trust will enter into a sales contract, reflecting the subsidized sales price, incorporating the terms agreed to between the Qualified Buyer and Developer
• ADA/Trust will assign the sales contract to the Qualified Buyer
• As consideration for the assignment of the sales contract, the Qualified Buyer will give ADA/Trust a recourse promissory note secured by a junior deed to secure debt encumbering the Purchased Unit

• Developer will use its best efforts to cause the Qualified Buyer to submit to ADA the documentation required by ADA in connection with qualification for the Eastside TAD Affordable Housing Purchase Program, including, but not limited to, the following:
  • Submission Package Checklist
  • Lender Approval Letter
  • Buy-Down Acknowledgement
  • Family Information Sheet
  • Qualified Buyer’s Acknowledgement
  • First-Time Homebuyer Affidavit (if applicable)

Home Ownership & Mortgage Programs

Home Atlanta

Atlanta Affordable Homeownership Program (AAHOP)

American Dream Down payment Initiative (ADDI)

Vine City/English Avenue Trust Fund (HOAP)

Eastside TAD Affordable Housing Purchase Program