The One-Dollar Homeownership Program is an unprecedented partnership between NACA and cities and towns across the nation to create affordable homeownership for low to moderate income homebuyers in underserved communities. Community residents can purchase a vacant house or lot from the city for only one dollar. NACA will provide financing for any necessary repairs/renovations, or for new construction through NACA’s Best in America Mortgage.
This is a comprehensive neighborhood revitalization program that addresses a myriad of intractable issues in underserved neighborhoods. It increases the tax base; it revitalizes communities with increased greater investment in property improvement; increases participation in the community and school system; and fundamentally addresses the crime issue. It is well established that the most effective crime fighters are homeowners who do not tolerate issues impacting their homes or neighborhoods. The One-Dollar Homeownership Program creates a critical mass of homeowners in a neighborhood to achieve this transformation.
Cities, towns, and quasi-government entities own many vacant homes and empty lots taken for tax delinquency, code violations, or other circumstances. In fact, they could take ownership of many more if they had an effective use for these properties. The One-Dollar Homeownership Program is the answer. These government owned properties are sold to community residents who wish to revitalize neighborhoods through affordable owner-occupied homeownership. This program eliminates the developer’s significant overhead and profit as the properties are directly transferred to a homebuyer. NACA and the homebuyer work directly with local contractors to complete the work instead of the developer. All the properties will be affordable for low- to moderate-income homebuyers. Owner occupancy is a requirement and includes a 10-year deed restriction and a security lien to prevent a home from being flipped for profit, or a land trust to preserve affordability and provide funds for maintaining the community while generating reasonable equity building generational wealth over time.
NACA is well positioned to achieve this transformative neighborhood stabilization program in partnership with cities and towns.
NACA provides its unprecedented homeownership programs in all fifty states as described below.
NACA is the largest and most effective HUD approved counseling organization providing between 20% and 30% of the total housing counseling in America. All of NACA’s homeownership programs include NACA’s comprehensive housing and financial counseling for both homebuyers and homeowners. NACA provides comprehensive documented supported comprehensive counseling for both homebuyers and homeowners. NACA continues to provide homeowners who need assistance from a trusted sources in working with and obtaining affordable solutions from lenders and servicers. NACA’s role is to advocate for the homeowner to keep them in their homes with an affordable mortgage payment.
Homebuyer Purchase Program
NACA is the brightest light in reversing the history of racism and exclusion in providing affordable homeownership for people of color. NACA’s purchase program provides a solution to address the major barriers in the housing market to affordable homeownership.
- Limited savings;
- Unaffordable terms;
- Restrictive underwriting; and
- Racism and Biases.
Homebuyers access NACA’s Best in America mortgage as described below. All homebuyers are welcome, with the focus on low-to moderate-income people and people purchasing in low-to moderate-income areas. NACA has $20 Billion committed to this mortgage with $15 Billion from Bank of America on the following extraordinary terms without consideration of one’s credit score:
- Aucun acompte
- Pas de frais de clôture
- Pas de frais
- No Mortgage Insurance
- Sous le taux fixe du marché
The NACA Mortgage can be used for a wide range of property and transaction types. This includes the following property types: Single-Family, Condominium, Multi-Family, Mixed-Use Properties and Co-ops. The types of transaction types are the following: Pre-Existing, New Construction, Manufactured/Mobile Homes, and Modular Homes.
Additional NACA HOUSING PROGRAMS
- Programme d'achat – provides opportunity to purchase one to four-family and mixed-use units with virtually unlimited property and construction types.
- Purchase & Renovation – provides the opportunity to purchase a property and renovate it after closing.
- CHAUD-PHA – provides people with a Section8/Housing Choice Voucher the ability to use these funds for the mortgage payment using NACA’s low rate 20-year fixed rate term.
- Homeowner Refi & Rehab – provides funds for homeowners to make necessary improvements.
- NACA’s New Construction Homes – provides affordable high quality energy efficient factory-built homes at less than half the cost of existing new construction.
- Homeowners – HomeSave Program – provides counseling to homeowners with an unaffordable mortgage not obtained through NACA, and assistance with their servicer to obtain an affordable payment.
- Rental Housing Program – Provides tenants with comprehensive housing counseling to obtain and sustain tenancy, prevent eviction, or to find emergency or transitional shelter until they can secure tenancy or become homeowners. Involves tenants in advocacy campaigns against corporate and abusive landlords.
The City would provide City owned or controlled vacant homes or vacant lots for homebuyers to purchase for one dollar. The specific City responsibilities including the following:
Provide a list of available City owned vacant homes and vacant properties that would be available for this program.
- Community Stabilization
Identify specific communities with a critical mass of homes needing renovation, lots for new construction, and homeowners needing funding for repairs.
Streamline and coordinate the permitting process.
- Code Enforcement
Enforce building codes and aggressively penalize violators in focused communities with landlord’s who own vacant properties or occupied properties is disrepair.
- City Services
Provide additional services in focused communities.
- Recreational facilities and programs
- Additional crime prevention presence as appropriate
- After school programs
- Environmental Inspection
Inspect properties for environmental soil contamination and where necessary remediate. Provide certification of non-environmental contamination.
- Vacant Lot Preparation
Vacant lots must be ready for the delivery of the modular homes including the following:
- Site preparation.
- Access to utilities for electrical, sewage and plumbing.
- Provide necessary security for vacant units until occupied.
- Logistical Assistance
Provide assistance in the coordination and facilitation of moving modular units into the vacant lot. This includes coordination of the transportation through the City, removing obstacles such as wires and facilitating cranes as necessary.
- Homebuyer must be a City resident, or recently displaced. Displaced residents must have lived in the City for at least five consecutive years, within the last 10 years.
- Residency Verification – any one of the following IDs (driver’s license, state ID, or City ID), in conjunction with at least one of the below mentioned supporting documents.
- Lease, utility bill, bank statements, W-2 &/or tax return(s)
- Homebuyer does not have to be 1st time homebuyers but cannot currently be a homeowner.
- Homebuyer’s income must be equal to, or less than, the City Median Income according to the US Census Department’s MSA (Metropolitan Statistical Area) for the to be eligible for the program.
Step 1 – Homebuyers must complete NACA’s comprehensive counseling.
Step 2 – Homebuyers must be NACA Qualified to be eligible.
Step 3 – NACA Qualified homebuyers are provided with a list of available properties, consisting of vacant houses and vacant lots.
Step 4 – Homebuyers visit available properties and are provided access.
- A. New Construction
The Homebuyer follows the below process to purchase the lot from the City and purchase a new home.
- Homebuyer reviews model home and different design options
- Homebuyer selects home design
- Homebuyer reviews available City lots
- Homebuyer executes:
- Purchase & Sales contract with the City to purchase vacant lot for one dollar
- Purchase contract for the new construction.
- New construction project loans will not be closed until the project is 100% complete.
- B. Vacant Home
Follow the below process:
- a. NACA coordinates the home inspection.
- b. NACA has a contractor estimate the renovation cost including itemization of the repairs and associated costs.
Step 5 – NACA Qualified homebuyers can select three choices that fit within their affordability range (NACA Counselors will provide guidance on affordability).
Step 6 – An in-person lottery will be held to determine who will be awarded said properties.
- A press conference will be held in the City Hall Conference Room for the lottery.
- Lottery Procedure
The lottery is based on the following priorities:
- Resident in the community the house is located
- Applicant with a Section8/Housing Choice Voucher
- Applicant that makes 50% or less of the City’s median income
- Applicant that makes between 51% and 80% of the City’s median income
- Applicant that makes between 81% and 100% of the City’s median income
Homebuyers receive keys with their name and NACA ID on them which will be placed in a model house and drawn randomly. The below determines the number of keys a homebuyer would receive based on the program’s priorities. The more keys, the greater the opportunity to be selected.
- Property selection priority:
- 3 keys for their 1st choice,
- 2 keys for their 2sd choice, or
- 1 key for their 3rd choice.
- Homebuyers living in the community where the property is located:
- 3 keys
- Homebuyers with Section 8/Housing Choice Voucher:
- 3 keys
- Homebuyer’s Income: 25% – 50% of median income (no section 8/HCV):
- 3 keys.
- Homebuyer’s Income: 51% – 80% of median income (no section 8/HCV):
- 1 key
Step 7 – Upon lottery selection, homebuyer enters into purchase & sales contract with the City (seller). There would be a second lottery selection for each property as a backup if the selected homebuyer declines or is not able to close.
Step 8 – After contract is finalized, homebuyer meets with NACA Counselor to complete the bank application process and submission.
Step 9 – Rehab Project – One-Dollar Vacant Properties:
NACA’s H.A.N.D. department coordinates and assists the homebuyer through the following process.
- Has property inspected for environmental and housing issues. Works with the City to address these issues.
- NACA’s H.A.N.D. department works with the homebuyer to finalize the scope of the rehabilitation project.
- Homebuyer solicits bids from licensed contractors.
- H.A.N.D. aids homebuyer in selecting contractor & finalizing rehabilitation budget.
- Rehabilitation scope of work and budget finalized.
- Homebuyer receives mortgage commitment from bank & closes on loan.
- Homebuyer works with H.A.N.D. & contractor to manage renovation/construction project with target completion date of 6 months. During this period, homebuyer is not required to make any out of pocket mortgage payments if the property is not livable during the renovations.
- Periodic inspections will be conducted throughout the renovation/construction project and reviewed by H.A.N.D.
- A renovation timeline of 6 months from closing will be the expected project completion date, with additional time allotted on a case by case basis. The 6-month mortgage payment forbearance cannot be extended.
- Upon completion of the rehabilitation, a final inspection will be conducted.
- H.A.N.D. will supply the lender with proof of completion, disburse final contractor payments and close out rehabilitation escrow account.
Step 10 – MOVE IN