There is established a down payment and/or closing cost affordability
assistance program, funded by developer fees, payable only from the
Township Housing Trust Fund and administered through the Township
of Franklin affordable housing program, for purchasers who seek to
purchase low- or moderate-income condominium units as part of said
program. Prospective homeowners will not receive direct funds. The
assistance dollars will be supplied to the appropriate entity/entities.
Purchasers seeking down payment and/or closing cost assistance through
this program must make application to the administrative agent. This
is a grant program. The maximum amount of any grant shall be $20,000.
Approval of any grant shall also be subject to certification by the
Township Housing Liaison and Chief Financial Officer that funds are
available from the Township's housing trust fund for this grant.
Individuals/households must make an application with the administrative
agent and be precertified, meaning that applicant demonstrates to
the reasonable satisfaction of the administrative agent that there
is a very high likelihood that with the receipt of the grant provided
herein the applicant will be able to pay all of the required expenses
related to owning their affordable home.
Individuals/households will only be awarded a grant after they
have contracted to purchase an affordable unit and the attorney review
process has been completed.
Qualified individuals/households must have incomes not exceeding
low or moderate income guidelines as applicable for Somerset County
per the New Jersey Fair Housing Act.
Applicants must be deemed credit worthy by the administrative
agent, and the amount of the mortgage principal shall not exceed three
times the applicant's gross annual income.
All grant recipients must have attended a prepurchase homebuyer
education class administered by the administrative agent prior to
signing a contract of sale or receive a certificate by meeting face-to-face
for at least three hours of one-on-one prepurchase counseling with
a counselor of the administrative agent.
At no time will any individuals/households be allowed to receive
funding approval under any of the local affordability assistance programs
more than once in a five-year time frame.
Homeowners that may be in arrears with their mortgage, sewer/water,
real estate taxes, and/or association fees may apply for the homeowner
affordability assistance program, funded by developer fees and payable
only from the Township housing trust fund and administered through
the Township of Franklin affordable housing program, for low- and
moderate-income households owning units as part of said program.
Any low- or moderate-income households, as defined by New Jersey
Fair Housing Act for Somerset County, paying as part of their shelter
costs mortgage, sewer/water, real estate taxes or homeowners' association
(condominium) fees (collectively defined as "shelter costs"), who
are in arrears are eligible to apply for the program.
On application for homeowner affordability assistance, the administrative
agent will determine whether or not the given household is spending
more than 30% of its gross income for shelter costs. This program
is not available to households spending less than 30% of their gross
income for shelter costs.
If the aforementioned shelter costs, by paying off the arrearages,
would allow the household to spend between 30% and 40% of gross income
on shelter costs, then the household may request affordability assistance
in the form of a deferred loan to assist the affordable homeowner
in becoming current with their Shelter expenses.
The eligible household shall then submit to the office of the
administrative agent income and expense information concerning the
household's shelter costs. The administrative agent, with the assistance
of the Township of Franklin will evaluate the request for the above-referenced
loan for a maximum amount not to exceed $15,000.
After review and approval by the administrative agent and Township
of Franklin Municipal Housing Liaison and subject to the availability
of funding through the Township's affordable housing program for this
form of affordability assistance, the Township of Franklin may approve
a loan to assist with the payment of the aforementioned shelter costs.
Approval shall only be granted to applicants who demonstrate to the
reasonable satisfaction of the administrative agent and the Township
of Franklin that there is a very high likelihood that with the receipt
of the affordability assistance provided herein that the applicant
will be able to stay current with their shelter costs in the future.
If denied, a written determination of why the funding assistance has
been denied will be provided by the administrative agent. This determination
shall be final and nonappealable.
The homeowner affordability assistance program is a deferred
payment loan, with the loan amount (and no interest) to be repaid
either upon the sale of the unit (if less than five years) or it is
forgiven upon the expiration of five years from the date of the execution
of the second mortgage, whichever comes first. Recapture of Township
of Franklin assistance funds provided herein will occur if the property
is sold within five years of the date of the loan. If the affordable
unit is sold during the five-year recapture period, 20% of the funds
are forgiven for each full year after the loan closing. In such cases,
the Township of Franklin shall receive a pro rata portion of the assistance
amount from the Borrower, which amount shall be deposited in the Township's
Housing Trust Fund.
Loans for all properties participating in the homeowner affordability
assistance program shall be secured through a mortgage and mortgage
note executed by the property owner in favor of the Township of Franklin.
Further, approval of any loan shall also be subject to certification
by the Township Housing Liaison and Chief Financial Officer that funds
are available for this form of affordability assistance.
At no time will any individuals/households be allowed to receive
funding approval under any of the local affordability assistance programs
more than once in a five year time frame.