New Construction & Rehabilitation

If sites have already been purchased:

1. Provide market value appraisal information
2. Provide evidence of zoning conformance
3. Provide evidence of ownership

If sites have been identified but not yet purchased:

1. Obtain and submit at least one appraisal to substantiate the estimated acquisition costs.
2. Provide evidence of zoning conformance
3. Provide evidence of site control
4. Market value land appraisal reports must be obtained at the time of purchase and submitted to the City. Any award of grant funds is contingent on the land appraising at or above the purchase price.
5. A certification from the developer/contractor that the subsoil conditions have been adequately explored with test borings and any costs associated with the subsoil conditions has been included in the Project development budget. If test borings have not been performed or are not planned, explain why, and provide a signed statement that the applicant or the developer/contractor will accept responsibility for any delays or damages incurred as a result of unforeseen subsoil conditions.

1. Provide an assessment current market demand in the neighborhood in which the project will be located:
   • May include a market analysis completed by a third party, independent of the Grantee, that includes a detailed study including, but not limited to, definitive absorption rates, demand, comparable prices, current and projected demographic information, and marketability or
   • May include providing a verifiable waiting list
   Provide an appraisal that uses a comprehensive sales comparison approach. The appraised value should reflect the actual conditions (raw land, approved subdivision but unimproved site, or approved and improved site) of the land at the time of purchase
2. Submit a title report for the property
3. Provide evidence of zoning conformance
4. Provide evidence of site control

All builders and developers of infill housing are strongly encouraged to incorporate the defining features of a neighborhood into newly constructed infill houses.  Those defining features of older inner city neighborhoods may include:

• roof pitches
• porches
• materials
• window types

Developers must comply with any standards established by an existing neighborhood conservation district and/or approved neighborhood plan. Partners may be required to work with the City’s Design Center to finalize specific housing plans.

Homebuyers purchasing the properties must meet household income requirements of 80% or below area median income as described below and be documented via the HUD Part 5 Method of calculating income. Homebuyers will be required to provide evidence that they meet these income requirements.

Partners will be responsible for verification of income based upon established requirements of the U.S. Department of HUD.

Program Criteria

Homebuyer programs must meet the following criteria:

1. Applicant's projected annual income must not exceed 80% of the Area Median Income, adjusted for household size, at the time of application to the program
2. Applicant must have acceptable credit
3. Applicant household must be U.S. Citizens or legal resident aliens
4. Home to be purchased must be primary residence of applicant
5. Home must be in the city limits of San Antonio
6. Purchaser must attend a certified homebuyer counseling class
7. Applicant must make a minimum initial cash investment of $500 toward purchase of home
8. Home must have been constructed legally and meet City Code requirements

Credit Standards

Following are the credit standards for homebuyer programs:

1. 12 month current payment history for rent and utilities will be the standard
2. No more than three (3) late payment's in a year's time will be accepted
3. No bankruptcy within the following time frame:
   • For Chapter 7: Must be five (5) years from discharge
   • For Chapter 13: Must be two (2) years from discharge

Rental Programs Criteria

Single family rental programs must meet the following criteria

1. Applicants must maintain affordable rents as described by HUD rent limits
2. Applicants must adhere to tenant income requirements and must not exceed 80% of the gross household income
3. Tenant selection policies must limit housing to income-eligible households
4. Applicants must provide utility allowances for renters as approved by the City of San Antonio utilizing the HUD Standard Utility Allowance Model
5. Repayment of HOME funds would be required for any unit that is not rented to eligible tenants within 18 months of project completion

Predatory lending describes lending practices that take advantage of clients by charging usurious interest rates or excessive fees and penalties. Homebuyer Loans will not be made with an interest rate more than 2% above the prevailing market rate.

All homebuyers must have a pre-purchase counseling course prior to the closing date. The course must be a HUD recognized homebuyer education curriculum taught by an individual that has been certified to conduct homebuyer counseling.

The maximum sales price of an "affordable" single family home in the City of San Antonio is $120,000. However, applicants should conduct an assessment of the market to base sales price decisions on home price data from recent sales and other information about home values in the area including differences in size, quality, condition, location, and other amenities.