What is the Housing Choice Voucher Homeownership Program?

The basic premise of the Housing Choice Voucher Homeownership Program is that the voucher subsidy can now be used to help a first-time homeowner meet monthly mortgage expenses, in addition to the former use of the voucher subsidy to help a family with the rent.

Who Qualifies?

In order to be eligible for the homeownership program, a family must meet the following criteria:

1.   The family must be a current voucher program participant or eligible for admission to the housing choice voucher program

2.   Family must have good credit, and be able to obtain a mortgage based on their income, credit and debt.

3.   The family must qualify as a first-time homeowner (no member of the family has had any ownership interest in a principal residence in the past 3 years.

4.   The annual income of at least one adult family member who will own the home at the commencement of homeownership assistance must be equal to or greater than the Federal minimum hourly wage multiplied by 2000 hours. Meaning they must currently be employed on a full-time basis (defined to mean not less than an average of 30 hours per week), and has been continuously employed for at least one year. Brunswick Housing Authority has discretion to determine whether, and to what extent, an employment interruption, successive employment, and self-employment satisfies the employment requirement.

5.   For disabled families annual income must be equal to the monthly Federal Supplemental Security Income (SSI) x 12. Welfare assistance shall be included only for adult elderly or disabled family members who will own the home.

6.   If any family member has previously defaulted on a mortgage when participating in the voucher homeownership option, the family is ineligible for the homeownership option.

7.   Except for cooperative members who have acquired cooperative ownership share to commencement of homeownership assistance, no family member may have a present ownership interest in a residential property.

8.   The family must also satisfy any other initial eligibility requirements established by Brunswick Housing Authority in the administrative plan. However, Brunswick Housing Authority may not establish minimum income requirements or employment requirements in addition to the standards established by the rule.

Eligible Homes

Homes eligible for this program are new construction, manufactured housing, pre-owned units, and units owned or controlled by a Public Housing Authority. It is the family's responsibility to find a home that is eligible for the voucher homeownership assistance. If the family is already a rental voucher participant and is determined to be eligible, Brunswick Housing Authority may authorize the family to search for a home to purchase without the interruption of their rental assistance. Families participating in this program may select an eligible unit anywhere within Brunswick Housing Authority's jurisdiction. Families may purchase a unit out of Brunswick Housing Authority's jurisdiction under the portability procedures of the voucher program, but only if the receiving Public Housing Authority is administering a homeownership program and accepting applicants for their program.

Financing

It is anticipated that mortgage lenders will consider the voucher assistance when underwriting the loan and the underwriting standards of the individual lender and/or financing program will apply. The participating family ultimately is responsible for securing its own financing. Brunswick Housing Authority may develop partnerships with lenders to assist the family in obtaining financing, but may not require the use of certain lenders. Voucher funds may not be used to assist with financing costs, such as downpayment or closing costs. The family is responsible for 3% of sales price of the home as the downpayment. Of this 3%, the higher of 1% of sales price or $500 must come from family's personal resources. The family is responsible for all homeowner expenses not covered by the HAP (Housing Assistance Payment) payment. For instance, if the monthly homeownership expenses exceeds the payment standard, the family is responsible for paying the difference in addition to the required TTP(Total Tenant Payment).

Time Limits

Except for elderly and disabled families, Section 8 homeownership assistance may only be paid for a maximum period of 15 years if the initial mortgage incurred to finance purchase of the home has a term that is 20 years or longer. In all other cases the maximum term of the homeownership assistance is 10 years. There is no time limit on homeownership for elderly and disabled families. However, if anytime during this time limit the family's income is able to support the full homeownership expense, Brunswick Housing Authority will no longer be able to assist the family and the family will be totally responsible for the full mortgage payment.

Termination of Assistance

Among those reasons that Brunswick Housing Authority may deny or terminate homeownership assistance is:

1. The family does not comply with voucher program requirements at 24CFR 982.552 or for criminal activity as defined by 24CFR 982.553
2. The family does not comply with family obligations described at 24CFR 982.633

Brunswick Housing Authority must terminate voucher homeownership assistance for the family if the family is dispossessed from the home pursuant to a judgment or order of foreclosure on any mortgage-securing debt incurred to purchase the home. The Public Housing Authority may permit a family subject to a foreclosure action to move to a new unit with voucher rental assistance. However, Brunswick Housing Authority must deny such permission and terminate the family's participation in the housing choice voucher program if the family defaulted on a FHA-insured mortgage and the family fails to demonstrate that it has (1) conveyed the title to the home to HUD or HUD's designee and (2) has moved from the home within the period established or approved by HUD.