Home Ownership Options

Community Housing Alternatives offers an array of housing programs for households seeking affordable homeownership opportunities.  These funds are made available through the HOME & ADDI Programs and are available to persons whose household incomes do not exceed 80% of the Area Median Income (AMI).   Some of the many programs that we offer include:

Acquisition Development Resale (ADR): 

Housing opportunities under this program are provided as a result of our agency acquiring a home that is in need of renovation.  The home is fixed up and resold to a qualified buyer at the appraised value, however a subsidy is developed that allows the buyer to take out a mortgage based on their affordability.   

Maximum subsidy: Up to $40,000 plus up to $15,000 in down payment assistance.  Types of repairs that are made to the home include: Code violations, accessibility, energy improvements, and approved general improvements  

Home Purchase Rehabilitation (HPR):

Similar to the ADR Program, the HPR model allows for repairs to be made to the home that address code violations, accessibility, energy improvements, and approved general improvements, however the home buyer selects the home of their choice and enters into a purchase agreement.  Our staff then completes a list of necessary repairs that we then bid out to an approved contractor.  Upon closing on the home, the homeowner signs a contract for the repairs and the repairs are made to the home.  CHA manages the rehabilitation process, which is usually complete within 60 days of closing.

Maximum combined assistance: $37,500, inclusive of up to a maximum of $15,000 for DPA at closing

Down Payment Assistance (DPA):

For buyers that find a home that is not in need of any repairs to address code violations, accessibility, energy improvements, and approved general improvements, down payment assistance can be provided.  These funds are provided to assist with related pre-paid and closing costs associated with the home purchase.  

Maximum assistance: $15,000 for DPA provided at closing.

Neighborhood Stabilization Program (NSP):

To address the foreclosure challenges in our country, Congress enacted the Housing and Economic Recovery Act (HERA) for the redevelopment of abandoned and foreclosed upon residences.  Locally, CHA will utilize this opportunity to increase homeownership opportunities for families in the Washtenaw County area.

Unlike the HOME & ADDI funded programs, all NSP funds will be used to benefit individuals and families whose income does not exceed 120% of the Area Median Income (AMI).  To qualify, buyers will be required to complete a minimum of 8 hours homeownership counseling through the WHEP, including a home maintenance class. Classes can be found at:  www.ewashtenaw.org/homeownership

Eligible Properties

Foreclosed Homes. A property “has been foreclosed upon” at the point that, under state or local law, the mortgage or tax foreclosure is complete and the title for the property has been transferred from the former owner under some type of foreclosure proceeding or transfer in lieu of foreclosure in accordance with state or local law.

Abandoned Homes.  A home is abandoned when mortgage or tax foreclosure proceedings have been initiated for that property, no mortgage or tax payments have been made by the property owner for at least 90 days, AND the property has been vacant for at least 90 days.

•The purchase price cannot exceed $160,000 in all jurisdictions except the City of Ann Arbor and Ann Arbor Township (cannot exceed $180,000)

•NSP: Purchase price must be a minimum of 15% less than appraised value

•Appraisal must be in conformity with the appraisal requirements of the URA at 49 CFR 24.103, 

•Appraisal must be completed within 60 days prior to an offer made for the property  

Recapture Formula for All Washtenaw County Funded Programs: 

There lien is set up as a 0% Interest, deferred payment, 20-year loan.  This means that as long as you live in the home as your primary residence, there is no payment required.

The County will be repaid both the principal and a percent of appreciation (based on the County’s subsidy as a percent of the home’s after rehab value), at the time of sale or transfer. If at the time of sale or transfer, the home has not appreciated in value or the proceeds are insufficient to repay both the principal and shared appreciation, the balance of the owner’s unpaid lien shall be forgiven.

If the owner remains in the home as the primary residence for 20 years, the principal and appreciation is forgiven.