NSP FAQ
Q

Assume a grantee has adopted the HOME affordability rules and the costs for a specific unit have been counted toward the LH25 set aside. If an NSP homebuyer in that LH25 unit resells within the affordability period, is s/he required to sell the property to another very low income homebuyer?

Date Published: October 2012

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A

It depends on whether the grantee adopted the recapture or resale methodology for ensuring long term affordability.  If the recapture methodology was used and the homeowner sells the NSP-assisted property during the affordability period, the very low income homeowner may sell the NSP-assisted property to any buyer at any price the market will bear, subject to the terms outlined in the mortgage, deed restriction, or covenant running with the land filed at the time of closing .  If the resale methodology was used and the very low income homeowner sells the NSP-assisted property during the affordability period, then the subsequent purchaser must be very low income (at or below 50% AMI).


Tags: NSP Program Requirements - 25% Set Aside

FAQ ID:

421