§ 85-170. Affordable and workforce homeownership units.

A. 

The developer of any homeownership housing units shall enter into a contract with a housing group to monitor the sale of all units designated as affordable and workforce homeownership housing units. Any homeowners' association, condominium board or co-op board shall enter into a contract with a housing group to monitor the resale of all units designated as affordable and workforce homeownership housing units. Proof of such contract shall be submitted to the Commissioner of Housing and Human Services prior to the issuance of any certificates of occupancy.

(1) 

Initial contract sale price.

(a) 

The maximum initial contract sale price for an affordable homeownership housing unit shall be an amount equal to 80% of the current HUD area median income for Nassau-Suffolk Counties for a family of three multiplied by 2.5.

(b) 

The maximum initial contract sale price for a workforce homeownership housing unit, after any available subsidies, shall be an amount equal to 120% of the current HUD area median income for Nassau-Suffolk Counties for a family of three multiplied by 2.5.

(2) 

Resale price.

(a) 

The initial sale price for each affordable and workforce homeownership housing unit shall be increased annually by the Consumer Price Index from the date of the initial contract up to the time that notice of resale is provided.

(b) 

Notwithstanding any other provision to the contrary, the resale price of an affordable and workforce homeownership housing unit may be increased by an amount not to exceed 100% of the documented capital improvements made by the seller, as approved by the housing group, up to a maximum amount of $20,000.

(c) 

All contracts of sale must be submitted to the Commissioner of Housing and Human Services prior to execution for review and written approval of the resale price.

B. 

Ownership type. Units shall be owner-occupied and shall be the owner's primary residence. The owner shall be prohibited from renting the unit.

C. 

Financial qualifications of prospective purchasers/owners.

(1) 

Purchase price.

(a) 

Affordable homeownership housing units. In developments where the units are specifically approved for homeownership, the purchase price shall be no greater than the purchase price affordable to those with household incomes at or below 80% of the area median income based on family size for Nassau-Suffolk Counties as determined annually by the Federal Department of Housing and Urban Development ("HUD") at the time of the execution of the contract of sale.

(b) 

Workforce homeownership housing units. In developments where the units are specifically approved for homeownership, the purchase price shall be no greater than the purchase price affordable to those with household incomes at or below 120% of the area median income based on family size for Nassau-Suffolk Counties as determined annually by the Federal Department of Housing and Urban Development ("HUD") at the time of the execution of the contract of sale.

(2) 

Assets.

(a) 

For non-age-restricted housing, applicants may not have assets that, after deduction of the downpayment and estimated closing costs, exceed 25% of the contract sale price.

(b) 

For age-restricted housing, applicants may not have assets that, after deductions of downpayment and estimated closing costs, exceed two and a half times the contract sale price.

(3) 

Credit. Applicants must have adequate credit to qualify for a home mortgage if the applicant(s) is not able to establish sufficient funds to pay the purchase price and estimated closing costs.

(4) 

Counseling. All applicants shall be required to attend pre-purchase/mortgage counseling provided by the housing group.

(5) 

Approval.

(a) 

In homeownership developments with a homeowners' association, condominium board or co-op board, all purchasers must be qualified by the housing group and selected from a waiting list, if any. Any individual interested in selling an affordable or workforce homeownership housing unit must notify the housing group in writing that such unit is for sale. The housing group may notify the prospective seller of the next qualified applicant in the order of their appearance on the waiting list until a qualified purchaser has agreed to purchase the available unit.

(b) 

In the event there is no waiting list, the seller shall be obligated to find its own purchaser who is subject to the provisions set forth herein and the homeowner shall refer the purchaser to a housing group to confirm income eligibility requirements. If after 12 months of active real estate marketing for sale the homeowner has not found a qualified purchaser, the homeowner may make an application to the Town Board for relief of covenants required pursuant to this section to sell such unit at market rate to a non-qualified purchaser. Upon approval of such relief, the homeowner shall enter into an agreement with the Town that states that the difference between the final market-rate sale price and the allowable affordable sale price per the Consumer Price Index (CPI) shall be deposited in the Housing Trust Fund.

(c) 

In homeownership developments where no homeowners' association, condominium board or co-op board exists, the homeowner of an affordable or workforce homeownership housing unit may contract with a housing group to find eligible purchasers. Should the homeowner find a purchaser without contracting with a housing group, the seller shall be obligated to find its own purchaser who is subject to the provisions set forth herein and the homeowner shall refer the purchaser to a housing group to confirm income eligibility requirements.

(d) 

Prior to closing, a copy of the executed contract of sale shall be provided to the housing group along with an executed and sworn affidavit by the seller and purchaser, attesting that the contract of sale is true and accurate, that there are no other agreements between the seller and purchaser, and that the purchaser has not and will not pay any amounts to the seller that are not reflected in the contract of sale.