Before selling your home to a new buyer you must make sure the requirements of the program are met. Below are two program documents you may have in place on your home.
1. Declaration of Covenants and Restrictions – all NSP properties have this document on their property for a term of 20 years. For 20 years the home must be sold to a household meeting the income and occupancy requirements set forth in the Declaration.
Income level – Contact the Anoka County Community Development to be advised of the income level.
Area Median Income (AMI) – this is the total annual household income that is allowable to meet program requirements. HUD releases the income levels based on family size. Income levels change annually and either increase or decrease based on the area median at any economic point in time.
Occupancy – anyone who purchases an NSP property during the 20 year term must purchase the property to live in and occupy the property as their principal residence. An NSP property holding a Declaration cannot be sold to an investor or owner who wishes to rent out the property for housing or commercial purposes.
The 20 years is a set date and does not renew with each purchase. Contact Anoka County Community Development to see how many years are remaining on a particular property.
Anoka County recommends when you list the NSP property that you work with your Realtor to make restrictions known on the property Disclosure document and on the MLS. If the program requirements are not known to new buyers it could trigger confusion and enforcement actions. Any party interested in purchasing your home may contact Anoka County for clarification of this Declaration and its requirements.
2. Purchase MoneyMortgage – if you received closing costs or a soft second mortgage you would have signed a Purchase Money Mortgage and a Promissory Note securing those funds against your property. The Mortgage held a loan term (5 to 20 years) in which repayment would be required if you were no longer the owner/occupant of the NSP property. In some cases your Mortgage may be satisfied if you met the term of the agreement. If you have not met the term of the Mortgage you will be required to repay the Mortgage satisfying the agreement of Federal Funds if you sell your home