HOME Program

The North Suburban Consortium (NSC) offers Down Payment Assistance loans (DPA) to income-eligible First Time Homebuyers (one who has had no homeownership interest in a principal residence during the past 3 years OR a displaced homemaker or single parent who has only owned a home with a former spouse while married) (FTHB) purchasing a condominium, townhome or single-family property in an NSC community (Arlington, Chelsea, Everett, Malden, Medford, Melrose, Revere, Winthrop). DPA can be used to assist with the down payment and customary closing costs, however, it cannot be used for reimbursement for previously paid earnest money deposit, funding monthly housing payment reserves requirements, prepayment of life insurance premiums or to bridge the gap between purchase price and appraised value. Applicant’s primary mortgage lender must agree to fund DPA amount at closing and accept reimbursement after closing. Applicant cannot receive money back at closing.
 
DPA: Up to $7,500.00 for non-subsidized property; Up to $3,000.00 for HOME-subsidized property (DPA amount determined at completion of NSC underwriting). DPA is a 0% interest, no monthly payments, 5 year deferred loan.  Each year, on the anniversary date, 20% of the original DPA amount is forgiven.  At the end of 5 years, the loan is forgiven completely and the owner will be provided with a discharge of mortgage they must record at the appropriate registry of deeds. Owner must live in the property as their primary residence. NSC does not subordinate DPAs and if an owner refinances, sells or no longer resides in the property before the end of the loan term, they must repay the NSC a pro-rated portion of the DPA. 

Completed DPA Loan Application and copies of all required supporting documentation should first be submitted by hand delivery or by mail (no emails accepted) to NSC community representative for the city/town where the property being purchased is located.  Please allow at least 3 to 4 weeks from date of submission for review of DPA Application and supporting documentation, loan underwriting, required inspection, preparing documents, contacting parties, primary mortgage lender, closing attorney, etc.  

How Do I Qualify?

1.  Primary Mortgage Financing:  Applicant must obtain primary fixed interest rate mortgage financing from a lender.  Massachusetts Housing Partnership ONE Mortgage Program, Mass. Housing Mass Advantage, VA and FHA loans are approved mortgage products.   Applicant should contact a lender for pre-approval and to obtain primary mortgage financing.  (Primary mortgage lender must agree to fund DPA amount at closing and accept reimbursement after the NSC receives original executed NSC Promissory Note, copy of recorded NSC Mortgage and closing settlement statement.) Information about mortgage products, resources, buying a home, lenders and homebuyer counseling can also be found at My Mass Mortgage  and HUD Homeownership Assistance websites.
 
2. Homebuyer Counseling:  Applicant must attend and complete a FTHB counseling workshop offered by a HUD-certified organization or agency.  For a list of HUD-certified counseling agencies in Massachusetts click here rsion Options HOME Program Headline

3.  Income Qualifications:  Applicant's combined household income (gross) cannot exceed 80% AMI income limits set by the U.S.Department of Housing and Urban Development (HUD).  Income from ALL household members 18 years of age or older must be included, however, in certain circumstances, full- time student dependents' income may be excluded.

Applicant/Household (gross) income cannot exceed 80% Area Median Income (AMI) Limits set annually by HUD. HUD 80% AMI Income Limits (effective June 15, 2023):
 
  1 person household: $82,950.00                       2 person household: $94,800.00
  3 person household: $106,650.00                     4 person household: $118,450.00
  5 person household: $127,950.00                     6 person household: $137,450.00
  7 person household: $146,900.00                     8 person household: $156,400.00
 
4.  Purchase Price Limits: The property purchased cannot exceed Purchase Price Limits for existing and new housing (effective June 14, 2023).  

• Revere, Chelsea, Winthrop (Suffolk County):  
    1 Unit - $620,000.00 (existing or new housing) 
• Malden, Medford, Melrose, Arlington, Everett (Middlesex County):
    1 Unit - $569,000.00 (existing or new housing) 

Other Qualifications:

Asset Limits: Applicant cannot have more than $75,000.00 in liquid assets post-purchase.  Liquid assets include stocks, bonds, CDs, cash, savings, trust funds, retirement accounts, pensions, 401K, 403B, 457 and IRA accounts (see HUD Part 5 Assets Inclusions and Exclusions).
 
Credit Score:  Applicant must have a minimum credit score of 620.  If more than one Applicant, the average of all Applicants' credit scores must be a minimum of 620.
 
Inspection:  A housing quality standards inspection will be completed - at no cost to Applicant - to ensure the property meets state and federal housing codes.
 
Housing-to-Income Ratio (HTI):  Applicant can have a maximum HTI of 35%. The HTI is the ratio of Applicant's monthly mortgage payment consisting of principal, interest, taxes, insurance and condominium fee (PITI) to Applicant's total monthly household income. (Primary mortgage lender will issue a truth in lending disclosure or similar document that clearly shows PITI).
 
Debt-to-Income Ratio (DTI):   Applicant can have a maximum total DTI of 50%. The total DTI includes other debt such as student loans and consumer debt in addition to housing debt.  
 
Sufficient Cash Reserves (post-closing):  Applicant must have sufficient cash reserves on hand, including DPA amount, to pay two months' PITI.

How Do I Apply?

DPA Loan Application should be submitted only when Applicant has signed a Purchase and Sale Agreement to purchase a condominium, townhome or single-family property.  Complete DPA Loan Application then contact NSC community representative for the city/town where the property being purchased is located (see contact information below).  The completed DPA Application and copies of all required documentation should be submitted to the NSC community representative by hand delivery or by mail (no emails accepted).  All documents listed below and shown on the Application checklist must be submitted with the Application unless it is noted that the NSC will prepare document or document will be signed at closing.

• Signed Purchase and Sale Agreement
• Voluntary Sale Disclosure(to be signed by seller prior to signing Purchase and Sale Agreement)
• Right to Withdraw(to be signed by seller if Purchase and Sale Agreement has already been signed)
• Evidence of permanent resident alien status or legal alien status, if applicable, for Applicant, Co-Applicant and all other household members age 18 or older
• Authorization for Release of Information Form (a separate form to be completed by Applicant, Co-Applicant and all other household members age 18 or older)
• Primary (fixed interest rate) mortgage financing Loan Application
• Primary (fixed interest rate) mortgage financing Commitment Letter from qualified lender
• Form 1008 Uniform Loan Transmittal Summary issued by Applicant's primary mortgage lender
• Truth in Lending Disclosure or similar documents issued by Applicant's primary mortgage lender (detailing PITI)
• Copy of complete credit report (reports if more than one Applicant) showing credit scores from the three credit reporting bureaus
• Certificate from HUD-certified FTHB counseling workshop (not more than two years old)
• If self-employed, copies of current year-to-date profit and loss statement and copies of 3 years Federal tax returns (including ALL schedules)
• Copies of 3 most recent years Federal tax returns (including ALL schedules) and 3 most recent years W2s from ALL employers for Applicant, Co-Applicant and all other household members age 18 and older
• Copies of 3 most recent months statements for ALL accounts including stocks, bonds, CDs, cash, savings, checking, trust funds for Applicant, Co-Applicant and all other household members age 18 and older
• Copies of 3 most recent months statements for ALL 401Ks, IRAs, stocks, bonds, retirement/pension accounts for Applicant, Co-Applicant and all other household members age 18 and older
• Copies of 3 most recent months paystubs (from ALL employers) for Applicant, Co-Applicant and all other household members age 18 and older
• Copy of current Social Security award letter(s), including disability income, if applicable, for Applicant, Co-Applicant and all other household members age 18 and older
• Proof of "other" income sources including alimony, child support, welfare assistance, etc., for Applicant, Co-Applicant and all other household members age 18 and older
• Divorce decree, if applicable
• Zero Income Affidavit (separate affidavit to be completed by each household member age 18 and older who has no income)
• Liquid Asset Certification
• IRS Certification AND Form 4506-T (separate 4506-T to be completed by each household member age 18 and older)
• Housing Quality Standards (HQS) Disclosure
• HOME Written Agreement and Recapture Agreement (NSC will prepare both - to be signed when Applicant signs DPA Commitment Letter)
• NSC Promissory Note (NSC will provide to closing attorney - to be signed at closing)
• NSC Mortgage (NSC will provide to closing attorney - to be signed at closing and recorded by closing attorney at registry of deeds)

HUD Part 5 Income and Assets Inclusions and Exclusions

Upon approval, Applicant will receive for signing DPA Commitment Letter, Recapture Agreement (acknowledging DPA amount can be recaptured if owner no longer resides in the property or if the property is refinanced, sold or transferred within five (5) years) and HOME Agreement (evidencing the household and property complies with HUD standards).

Lender and Closing Attorney/Settlement Agent Information:

For lender reimbursement, the closing attorney/settlement agent must provide the original signed NSC Promissory Note and copies of recorded NSC Mortgage and final closing disclosure statement (showing DPA amount) to Office of Strategic Planning and Community Development, Malden City Hall, 215 Pleasant Street, Third Floor, Malden, MA  02148 ATTN:  HOME Director.
 
If the property purchased is HOME-subsidized and subject to NSC affordable housing covenant (AHC), the closing attorney/settlement agent will be provided with an AHC to be signed at closing and recorded at the appropriate registry of deeds. A copy of the recorded AHC must be returned to the HOME Director along with DPA loan documents noted above, etc. (Recapture Agreement not required if property is subject to NSC AHC.) 

NSC DPA Community Representatives: 

Malden:         Maureen Taylor 781-324-5720 x 5730, mtaylor@cityofmalden.org
Medford:       Danielle Evans 781-475-5631, devans@medford.org
Arlington:      Claire Ricker 781-316-3090, cricker@town.arlington.ma.us
Chelsea:        Alex Train 617-466-4187, atrain@chelseama.gov
Everett:         Matt Lattanzi 617-394-2230, matt.lattanzi@ci.everett.ma.us
Melrose:        Lori Massa 781-979-4193, lmassa@cityofmelrose.org
Revere:         Tom Skwierawski 781-286-8181 x 20324, tskwierawski@revere.org
Winthrop:      Rachel Kelly 617-892-2624, rkelly@town.winthrop.ma.us 

The NSC offers rehabilitation loans to income-eligible homeowners to correct health and safety issues in the eight NSC member communities. These funds may also be used to increase energy efficiency and make accessibility modifications to a property. Loans are 0% interest, no monthly payments, fifteen (15) years deferred. At the end of fifteen (15) years, when the loan is fully repaid the owner will be provided with a discharge of mortgage that they must record at the appropriate registry of deeds.  Owner must live in the property as their primary residence. NSC may subordinate Homeowner Rehabilitation loans in certain circumstances. If an owner refinances, sells or no longer resides in the property before the end of the term, the full balance of the loan is immediately due and payable.

Eligible Properties
Properties that are eligible for Homeowner Rehabilitation assistance are:

• Located within one of the NSC communities;
• Owned and occupied by a homeowner (with good and marketable title) who qualifies as a low-income family;
• The principal residence of the homeowner

Assistance may be provided for the following single-family property types:

• One to four unit dwelling (single family home, duplex, triplex, or four-plex)
• Condominium unit
• Cooperative unit

NSC does not currently offer assistance to properties that qualify as a manufactured or mobile home. 

Applicant Eligibility
Applicants must meet the following eligibility criteria to qualify for a Homeowner Rehabilitation loan:

• The applicant’s household must earn at or below 80% of the Area Median Income (AMI) as determined annually by the U.S. Department of Housing and Urban Development (HUD);
• The applicant must reside in the subject property as their principal residence;
• Applicant must be current on the existing mortgage and property tax payments;
• Applicant must have title interest in the property;
• Applicant must maintain homeowner’s and flood insurance (if applicable)
• The property cannot have an outstanding Notice of Default or Notice of Sale filed against it within the last two years.

Other Requirements & Information
The property rehabilitated with HOME funds must have an appraised after-rehabilitation value that does not exceed 95% of the area's median price, as determined by the Homeownership Value Limits set annually by HUD.

Assistance required must be at least $1,000 per unit. Currently, the maximum amount of NSC HOME funds that can be loaned through this program is $100,000. Any project that requires assistance in excess of $100,000 must be approved by the NSC board and cannot exceed the maximum per-unit subsidy limits approved by the local HUD office.

For two-to-four unit properties, the units other than the homeowner’s unit must be operated in accordance with the HOME Program rental requirements. The Owner must rent these units to income-eligible households and restrict the rent to the affordable levels set by HUD. At least 90% of the rental units must be made available to households at or below 60% of the area median income, and all units must be made available to households at or below 80% of the area median income. The affordability of the rental units will be secured through an Affordable Housing Restriction and the length of affordability is determined by the amount of assistance provided. See the below table for minimum affordability periods. If the funds are used to rehabilitate only the owner-occupied unit in a two-to-four unit residence, the above housing rules do not apply. 

At a minimum, all properties rehabilitated through this program must be brought into compliance with the State Sanitary Code, HUD Section 8 Housing Quality Standards, and Lead-Based Paint Poisoning Prevention Act. Any major systems (structural support, roofing, plumbing, electrical and heating, weatherproofing) must have a remaining useful life of at least five years or be replaced as part of the rehabilitation work. Program funds cannot be used to luxury items, general remodeling work, or creating additions (including additional bathrooms or bedrooms), unless there is a health or safety concern that is being addressed with this work. 

Homeowner Rehab Loan Fact Sheet, Checklist and Application (Income Limits 6-1-2021).   For detailed information about the program and requirements, please contact the respective NSC Member Community Representative or the HOME Director at 781-324-5720 x 5731.

The NSC annually sets aside funding to support Community Housing Development Organizations (CHDO) with a portion of their operating expenses. CHDOs are private non-profit, community-based service organizations that have significant capacity, and whose primary purpose is, to develop affordable housing for the community it serves. In addition to CHDO operating assistance, at least 15% of the NSC’s HOME funds must be set aside exclusively for qualified, eligible CHDO projects. Once an organization becomes a certified CHDO, it is eligible to take advantage of the HOME funds set-aside and financial support for a portion of the CHDO’s operating expenses. 

CHDO Certification
To qualify for CHDO set-aside or operating assistance, the NSC must certify an organization as a CHDO. Certifications are valid for one year. The U.S. Department of Housing and Urban Development has established the below criteria to be eligible to become a certified CHDO:

1. Organized Under State/Local Law: A nonprofit organization must show evidence of its Articles of Incorporation that is organized under state or local law.
2. Nonprofit Status: The organization must be conditionally designated or have a tax exemption ruling from the Internal Revenue Service (IRS) under Section 501(c) of the Internal Revenue Code of 1986. A 501(c) certificate from the IRS must evidence the ruling.
3. Purpose of Organization: Among its primary purposes, the organization must have the provision of decent housing that is affordable to low- and moderate-income people. This must be evidence by a statement in the organization’s Articles of Incorporation and/or By-laws.
4. Board Structure: The board of director must be organized to contain no more than one-third representation from the public sector and a minimum of one-third representation from the low-income community.
   1. Public Sector Limitations: No more than one-third of the organization’s board may be representatives of the public sector, including elected public officials, appointees of a public official, or any employees of the Continuum of Care or Commonwealth of Massachusetts. If a person qualifies as a low-income representative and public section representative, their role as a public sector representative supersedes their residency or income status. Therefore, this person counts toward the one-third public section limitation.
   2. Low Income Representation: There are three ways a board member can meet the definition of a low-income representative: (1) the person lives in a low-income neighborhood where 51% or more of the residents are low income, regardless of their personal income; or (2) the person is a low-income resident of the community earning 80% of below of the area median income; or (3) the person was elected by a low-income neighborhood organization to serve on the CHDO board and said organization  is composed primarily of residents of the low-income neighborhood and has as its primary purpose serving the interest of the neighborhood residents (ex. Block groups, neighborhood associations, and neighborhood watch groups). The CHDO is required to certify the status of low-income representatives.
5. No For-Profit Control: The organization may not be controlled by, nor receive directions from, individuals or entities seeking profit from or that will derive direct benefit from the organization.
   1. For-Profit Limitations: If a CHDO is sponsored by a for-profit entity, the for-profit may not appoint more than one-third of the board. The board members appointed by the for-profit may not appoint the remaining two-thirds of the board members. 
6. No Individual Benefit:  No part of a CHDO’s net earnings may benefit any members, founders, contributors, or individuals. This requirement must also be evidenced in the organization’s Articles of Incorporation.
7. Clearly Defined Service Area: The organization must have a clearly defined geographic service area outlined in its Articles of Incorporation and/or By-laws. CHDOs may serve individual neighborhoods or large areas. However, while the organization may include an entire community in their service area (such as a city, town, village, county, or multi-county area), they may not include the entire state.
8. Low-Income Advisory Process: A formal process must be developed and implemented for low-income program beneficiaries and low-income residents of the organization’s service area to advise the organization in all of its decisions regarding the design, location, development and management of affordable housing projects. This requirement is not met solely by having low-income representation on the board. The process must be described in the Articles of Incorporation or By-Laws. 
9. Capacity/Experience: To qualify as a CHDO, a non-profit must have paid staff whose experience qualifies them to undertake CHDO set-aside activities. Capacity cannot be demonstrated by use of a consultant, except in the first year that a CHDO becomes certified. The key staff and board of directors must also have significant experience and capacity to carry out CHDO-eligible, HOME-assisted projects in the community where it intends to develop affordable housing.
   1. New Organizations: For newly created organizations, the parent organization must have at least one year of experience serving the community. 
   2. Paid Staff: A person whose salary, payroll taxes, and unemployment insurance is paid by the organization and from whom the organization withholds payroll and income taxes is considered paid staff. Paid staff may be full or part-time depending on the needs of the project.
   3. Use of Consultants: During the first year of a CHDO’s operations, a consultant may be used to meet the staff requirement. However, the consultant must also train staff in housing development and management to ensure capacity is established after the first year. 
10. Community Service: A minimum of one year of relative experience serving the community(ies) where it intends to develop affordable housing must be demonstrated.
11. Financial Accountability Standards: The organization must meet and adhere to the financial accountability standards as outlined in 24 CFR 84.21, “Standards for Financial Management Systems.” This must be evidenced by a notarized statement by the president or chief financial officer of the organization, certification from a certified public accountant, or an audit completed by a certified public accountant. 

To become certified, fill out the CHDO Application and mail or hand deliver it to: 

North Suburban Consortium
c/o Office of Strategic Planning and Community Development
Attention: HOME Director
215 Pleasant Street, Third Floor
Malden, MA 02148

Applicants will be given 30 days to respond to any request for additional materials. If requested additional materials are not received within 30 days, the CHDO application will be denied. 

CHDO Set-Aside

NSC is required to set aside at least 15% of its annual HOME allocation for projects owned, developed, or sponsored by CHDOs. A CHDO may serve in one of these roles or it may undertake projects in which it combines roles, such as being both an owner and developer. 

A CHDO, acting as owner, sponsor, or developer, may undertake any of the following activities utilizing the 15% CHDO set-aside:

• Acquisition and/or rehabilitation of a rental property;
• New construction of rental housing;
• Acquisition, rehabilitation and resale of existing, vacant homebuyer property;
• New construction of homebuyer property

To be considered a CHDO-eligible project, CHDO set-aside HOME funds must be used during the construction or rehabilitation of the project.

To apply for CHDO Set-Aside funds, submit a CHDO Application (if no certification has been completed within the last year) and the Developer Application. Please refer to the Rental Development and Homeownership Development sections for more information about the eligible activities. 

CHDO Operating Assistance
NSC has the option of allocating up to 5% of its HOME allocation to provide funds for CHDO operating assistance. This allocation does not count towards the 15% CHDO set-aside funds. For exact information on how much CHDO operating assistance NSC is offering in a particular year, refer to the Annual Action Plan.

Operating assistance may be used to reimburse reasonable and necessary costs for the operation of the CHDO. Such costs include salaries, wages, and other employee compensation and benefits; employee education, training, and travel; rent; utilities; communication costs; taxes; insurance; equipment; materials; and supplies. Operating assistance may not be used to reimburse costs associated with an NSC HOME funded project.

CHDO operating assistance awarded may not exceed 50% or $50,000, whichever is greater, of the CHDO’s total operating expenses in that fiscal year. 

Eligibility

To qualify for CHDO operating assistance the organization must:

• Be (re)certified as a CHDO at the time of application for operating assistance;
• Provide services within one or more of the NSC communities;
• Provide a copy of its annual operating budget;
• Document that is has resolved any compliance findings on its NSC funded projects in a timely manner;
• Demonstrate that the CHDO will reasonably receive funding for a CHDO set-aside project within 24-months if it is not currently receiving funding for a CHDO set-aside project.

How to Apply

To apply for CHDO Operating assistance, CHDOs must complete the CHDO Application, including all requested attachments, documentation, and forms. The application may be mailed or hand delivered to:

North Suburban Consortium
c/o Office of Strategic Planning and Community Development
Attention: HOME Director
215 Pleasant Street, Third Floor
Malden, MA 02148

Applicants will be given 30 days to respond to any request for additional materials. If requested additional materials are not received within 30 days, the CHDO application will be denied.