Acquisition Rehabilitation Program (ARP)
Heart of the City Neighborhoods introduced the Acquisition Rehabilitation Program (ARP) to provide safe affordable housing opportunities for low to moderate income, first time homebuyers on the Lower West Side of Buffalo.
Working in conjunction with Housing in Urban Development (HUD) and the City of Buffalo; Heart of the City Neighborhoods introduced this program to revitalize neglected homes and restore this once vibrant and historic neighborhood.
This program targets homes which are considered neighborhood nuisances and problem properties in an effort to eliminate blight and the negative perceptions associated with urban living.
Rehabilitation on an ARP home will usually include new mechanics, updated plumbing, electrical, and gas systems, updated kitchens and bathrooms, replacement of windows and doors, in addition to new floor coverings. When rehabilitation is complete the renewed home is then sold at market rate regardless of rehabilitation costs.
In addition to the complete rehabilitation of the home, purchase assistance may be available to qualified buyers through grants and low interest loan programs. This formula assures affordability making an ARP home ideal for first time homebuyers who have limited capital for extensive home repairs, updates, and purchase.
ARP homes have had many long-term positive effects on the new homeowners and on the neighborhoods where they are located.
Program Guidelines (ARP)
- Purchaser MUST qualify as a first time homebuyer
- Purchaser MUST occupy the ARP home as their primary residence
- Purchaser MUST apply for traditional mortgage financing
- Purchaser MUST meet income guidelines (See income guidelines)
- Purchaser MUST complete homebuyer education training before closing
Income Guidelines (ARP)
| Household Size | Income (80% of area median) |
|---|---|
| 1 | $32,650 |
| 2 | $37,300 |
| 3 | $42,000 |
| 4 | $46,650 |
| 5 | $50,400 |
| 6 | $54,100 |
| 7 | $57,850 |
| 8 | $61,600 |
Home Improvement Loans
HCN has partnered with West Side NHS to begin application intake for Owner Occupied Emergency repair loans. The low interest loan (0% to current bank rate) approved up to $5,000. This loan is designed for emergencies only (i.e. new furnace, water/sewer service, foundation problems, etc.) and will be determined by the Executive Director and Loan Chairperson of West Side NHS.
Program Guidelines (Home Improvement Loans)
- Home must be owner occupied
- Applicant must meet West Side NHS income guidelines
- Home must be insured
- Home must be located in the Lower West Side Service area (see map for illustration)
Application Requirements (Home Improvement Loans)
- $50.00 application fee
- Name, Social Security numbers & date of birth for all in household
- Deed to property
- Mortgage information
- Payroll stubs for past two months
- Current Monthly bank statements
- Most Recent Federal Tax Return
- Proof of all expenses: credit cards, loans, etc.
- Water, Sewer and property tax receipts
- Utility Bills: Two copies of each most recent bill
- Proof of all income
Down Payment & Closing Cost Assistance
The Closing Cost Assistance Program is a low interest rate loan that can assist first time home buyers with the funding of reasonable closing costs normally associated with the purchase of a home. Closing costs may include: down payment, insurance, title search, survey, appraisal, filling fees, city and/or county property taxes, water and sewer, points and legal fees. The maximum loan amount is $5,000.00 for closing costs. The interest rate ranges between 1%-5% for a period of up to 15 years, based upon mortgage qualification requirements and income guidelines set forth by the West Side NHS. All loans must be secured by a mortgage.
Program Guidelines (Down Payment & Closing Cost Assistance Program)
- The applicant must purchase their home in the Niagara District of the West Side of Buffalo
- The Applicant must be a first time home buyer and be purchasing the home as his or her principal place of residence
- The applicant must remain in the home until the down payment loan is repaid. If the applicant moves out of the home, the loan must be paid in full
- The applicant is required to have at least 2% or $500.00 of their own funds invested, whichever is higher for down payment
- The applicant must qualify for a mortgage loan with an approved financial institution (No owner held mortgages!)
- Applicants must take a first-time Homebuyer Education Course through West Side NHS
Application Requirements (Down Payment & Closing Cost Assistance Program)
- $50.00 money order for application fee
- Name, social security number, & date of birth for all household members
- Most current Payroll stubs for at least 2-months including name & address of employer
- Proof of additional income (SS, SSI, Pension, alimony, child support, etc.)
- Proof of all income for persons living in household 18 years of age and older
- Current monthly statement for all bank accounts
- 2-years of federal tax returns (all schedules) or have form 1722 from IRS (1-800-829-1040)
- Any Legal Document (Divorce, separation papers, etc.)
- Good Faith Estimate of closing cost
- Copy of mortgage application and pre-approval including amount of the mortgage
- Copy of HUD-1 Form
- Copy of Purchase contract
