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Your Key to the achievement
of the American Dream
Questions and Answers
WHAT IS THE HOUSING
CHOICE VOUCHER HOMEOWNERSHIP PROGRAM?
The RRHA Housing Choice Voucher Homeownership Program permits eligible participants in the HCVP the option of purchasing a home with their HCVP assistance rather than renting. Through a partnership with Neighborhood Housing Services of Richmond, Inc. (NHSR) and Housing Opportunities Made Equal (H.O.M.E.), RRHA is making homeownership a reality to low and moderate income families in Richmond.
Once a family has been qualified and a home identified, the property must pass an initial Housing Quality Standards (HQS) inspection conducted by RRHA and an independent home inspection before RRHA may approve the purchase by the family.
( Please note: The RRHA Housing Choice Voucher Homeownership Program is currently CLOSED to new admissions.)
Is RRHA required to offer
homeownership Vouchers?
No.
RRHA has chosen to administer a homeownership
program, but is not required to do so. RRHA
may Impose limits on the size of this program,
or limit use of this option to certain purposes.
However, RRHA must provide homeownership
assistance when required as a reasonable
accommodation to a family with a disabled
person.
What families are eligible
to apply for the Housing Choice Voucher
homeownership Program?
Families must meet these minimum requirements:
- First-time homeowner or has not owned
or has not had ownership interest in the
past three years.
- Minimum income requirement. The qualified
monthly income of the family who will
own the home must not be, less than the
Federal minimum hourly wage multiplied
by 2,000 hours. Except in the case of
an elderly household or a family with
a disable person, welfare assistance is
not counted in determining whether the
family meets the RRHA established minimum
income requirement of $17,500 annually.
- Employment requirement. Except in the
case of elderly and families with a disable
person, one or more adults in the family
who will own the home is currently employed
on a full-time basis and has been continuously
employed on a full-time basis for at least
one year before commencement of homeownership
assistance.
- Additional RRHA eligibility requirements.
The family meets any other initial eligibility
requirements set by RRHA, such as participation
in the Family Self-Sufficiency Program.
- Homeownership counseling. The family
must attend and satisfactorily complete
RRHA's pre- and post-assistance homeownership
counseling.
What are monthly homeownership
expenses?
Monthly homeownership expenses include:
- Mortgage principal and interest
- Mortgage insurance premium
- Real estate taxed and homeowner insurance
- RRHA allowance for utilities
- RRHA allowance for routine maintenance
costs
- RRHA allowance for major repairs and
replacements
- Principal and interest on debt to finance
major repairs and replacements for the
homes, and
- Principal and interest on debt to finance
costs to make the home accessible for
a family member with disabilities if RRHA
determines it is needed as a reasonable
accommodation.
How much financial assistance
can RRHA provide in each voucher?
RRHA uses its normal voucher program payment
standard schedule to determine the amount
of subsidy. The housing assistance payment
(HAP) is the lesser of either the payment
standard minus the total tenant payment
of the family's monthly homeownership expenses
minus the total tenant payment. RRHA may
make the HAP payment directly to the family
of to the lender.
Do families have
to purchase a home in the RRHA jurisdiction
where the voucher was issued?
No.
Families that are eligible for homeownership
assistance may purchase a home outside the
initial jurisdiction if the public housing
authority in the new jurisdiction area administers
the homeownership program and receives new
families into the program. However, the
family may only use the voucher to purchase
a unit in an area where the family is income
eligible at admission to the program.
How long can a family receive assistance
under this program?
There is no time limit for an elderly household
or family with a disabled person. For all
other families, there is a mandatory term
limit of 15 years if the initial mortgage
incurred to finance purchase of the home
has a term that is 20 years or longer, and
for all other cases the maximum term of
homeownership assistance is 10 years.
What happens if the
family sells or refinances the house within
10 years of commencement of assistance?
If the family sells or refinance within
ten years of the commencement of assistance,
some of the homeownership assistance is
subject to recapture.
How do families apply
for the program?
Eligible families should contact the Richmond
Redevelopment and Housing Authority at 804
-780-4361 TTY - Dial 711, 804-644-1445
( FAX) , or by e-mail at info@rrha.com
( Please note: The RRHA Housing Choice Voucher Homeownership Program is currently CLOSED to new admissions.)
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The RRHA Housing
Choice Voucher Homeownership Program
is regulated by the Code of Federal
Regulations - 24 CFR Part 982. Equal
Housing Opportunity Program.
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