Program Objective

To continue Hopkinton’s commitment and dedication to maintaining a racially and economically diverse population.

Purpose of the Plan

The purpose of providing affordable units at the Stagecoach Heights Development is to create homeownership opportunities for families and individuals who can not otherwise afford to purchase a single family home in the Town  of Hopkinton . In order to assure that local needs are met, this marketing plan gives preference to local residents, as defined below.

The program will allow for some preference of persons already in the community in that seventy percent of the units will have preference given to Hopkinton residents.

Project Description

Stagecoach Heights is a 44 unit development located on Wood Street (Route 135) in Hopkinton.  Of the 44 units, eleven (11) are designated as affordable through the New England Fund Program of the Federal Home Loan Bank Board (FHLBB).  There will be two (2) three bedroom affordable units and nine (9) two bedroom affordable units.

To be eligible for any category, an applicant must be a first time home buyer as defined by DHCD, (see Applicant Information for additional definition of first time home buyer), have a maximum household size of six persons, and meet the following income limitations for the Boston area based on HUD determinations:

          Household Size         Maximum Bedroom             Household Income Limit  
                                                        Unit                                  (HUD 80% of Median)

            1  person                      2                                              $46,300
             2  persons                    2                                              $52,950
            3  persons                    2                                              $59,550
            4  persons                    2                                              $66,150
            5  persons                    3                                              $71,450
            6  persons                    3                                              $76,750

Household income is based on combined annual income from all income sources of all income earning members in the household over the age of 18 years of age.

Hopkinton Resident and Open Pool Category

Seventy percent of the units, will be reserved for residents of the Town of Hopkinton and or Local Preference Pool. The definition of “Hopkinton Resident” and “Town of Hopkinton Employee ” which meets the qualifications for the Local Preference Pool shall be any one of the following (which all have equal standing):

Hopkinton Resident – A Hopkinton resident is defined as a household in which one or more members lives in the Town of Hopkinton   as evidenced by a minimum of three proofs of residence (drivers license, utility bills, rental receipts, etc.) or immediate family members (parents or children) of Hopkinton residents.

Town of Hopkinton Employees – defined as those regular employees of the Town who work a minimum of thirty hours per week and employees of businesses located in the Town of Hopkinton .

Minority Group Member

Minority households are identified in accordance with the regulatory classifications established by HUD: Native American or Alaskan Native, Asian or Pacific Islander, African-American, Hispanic/Latino or Cape Verdean and as further described on Attachment C.  All houses will be offered for sale and sold on a basis that is open to all persons regardless of race, color, creed, national origin or ancestry, sex, age, marital status or household composition.

The Town of Hopkinton is committed to providing equal access to all applicants.  In the event that the pool of Local Preference applicants does not include at least 17.5% of households who have one or more household members who are a minority (as indicated in the application) other eligible minority applicants will be included until at least 17.5% of the applicants in the Local Preference pool are minority. This will be done through a preliminary lottery in accordance with state requirements.

The Open Pool consists of households who do not meet Hopkinton Resident criteria.

Media Marketing

Marketing will provide outreach to potential low and moderate income homebuyers from both the community and the region and will provide for the marketing of units to the minority population within the community area. Flyers will be made available for distribution to such organizations as local banks, churches and other groups. Information will be sent to Metrolist Clearinghouse, Boston City Hall , PO Box 5996 , Boston , MA 02114 -5996 and posted on the Citizen’s Housing and Planning Association website, www.chapa.org/housinglotteries.htm and Town of Hopkinton web site.  Advertisements will be run in the Hopkinton Crier, Hopkinton Independent, and Bay State Banner.   Promotional material will carry the fair housing logo.

Flyers may also be distributed in the paycheck envelopes or other method determined by the Town of Hopkinton to notify town employees of the lottery and their preference in the lottery.

An informational session has been scheduled for 6PM on June 7, 2006 at Town Hall.

Maximum Asset Limitations and Mortgage Qualification

For households under the age of 55, the total gross household asset limitation is $50,000.  If one household member is over the age of 55 and the household currently owns a property (to be sold for eligibility for this lottery), the total amount of allowable equity in the property is $150,000.  Therefore, the combined asset limitation for households over the age of 55 is $200,000.

Liquid assets include all cash, cash in savings accounts, checking accounts, certificates of deposit, bonds, stocks, and the value of real estate holdings as outlined above, and other forms of capital investment.  Restricted accounts, such as 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).  Imputed interest income from all accounts, including liquid assets and restricted accounts, will be calculated by multiplying the total amount of assets over $5,000 by ˝% and adding it to the total gross income.

Bonus pay, overtime pay or other compensation will be reviewed on a case-by-case basis.  While it will be reviewed to determine income-eligibility, consideration will be taken if it was a one-time occurrence, or is not a regular occurrence, especially if it renders the household over the income eligibility guidelines.  In this case, it could be determined that the household will remain income-eligible.

Allowable assets of potential buyers can not exceed $50,000.

In addition, the purchasers must also qualify for a minimum mortgage amount equal to 50% of the purchase price of the unit.

The Lottery

Every attempt will be made to make the application process clear and not unduly complicated to complete, but to include documentation of income eligibility and homebuyer status.  The selection process will allow for equal access to the units by anyone qualified to apply within accepted preference standards.

To enter the lottery, applicants must submit an application form (see Attachment A & B) and prequalification letter from bank or financial institution.  In the application, they must state their first time home buyer status, income eligibility, and preference category.  Once received, the applications will be screened for eligibility. Because a large number of applications are anticipated only limited verification of applicant statements is planned before the lottery.  Additional screening will take place after the lottery drawing.

The lottery will be held in a public place at an advertised date and time.  In the lottery, all of the applicants' entries will be drawn and their standing will be determined by the order in which they were drawn and preference.  Preference will be given to households (two or more persons) over individuals. Preference for 2 bedroom units will be determined by existing household size. Applicants will be notified of their standing in the Hopkinton Resident and Open Pool categories.   Hopkinton residents will have standing in both the Hopkinton Resident and Open Pool categories.

The eleven (11) units will be reserved as follows:  eight (8) Hopkinton Resident preference units; and three ( 3 ) Open Pool units. Applicants with the highest ranking as determined by lottery ranking and preference, and family size, will be invited to apply for mortgages and additional screening.

Screening

Following the lottery, applicants with a relatively high standing, numbering two for each available unit will be invited to submit more detailed information to enable a certifying agent to certify that they are first time home buyers that their income meets requirements  and they meet Hopkinton Resident or Open Pool requirements.  During the screening process, this more detailed information will be verified by a certifying agent.

The applicants will then be given a maximum of thirty days to obtain a mortgage approval. Applicants further down the list will be contacted in the same way when additional units are available.

The lottery and certifying process will be carried out by Stagecoach Heights Realty, LLC and be coordinated with the Hopkinton Housing Partnership Committee of the Town of Hopkinton who will administer these guidelines and make any and all final interpretations.