As we in today’s time everywhere Human population are increasing day by day all over the world there is lots of struggle going for JOBS, HOUSES, LANDS, FLATS, APPARTMENTS etc but instead of this there is two cities of America( Downtown Detroit: Downtown, Corktown, Lafayette Park, Eastern Market, Woodbridge and the Midtown areas of Brush Park, Cass Park, Art Center, and Lower Cass) who offers FREE LANDS, FREE HOUSE, FREE RENOVATION, FORGIVABLE LOAN FOR HOUSE.
But for this you will be the part of some companies like Compuware, Blue Cross and Blue Shield, DTE Energy, Marketing Associates, Quicken Loans or Strategic Staffing Solutions etc, it literally pays for Live in Downtown. These companies are offering financial incentives for their employees to live.
Also you have to follows some instructions of the local government of this place, you are only eligible if you follows the same.
Benefits of living there are given below if you will be the part of those certain companies:
•Those want to plan of new homes they will receive up to $20,000 forgivable loan towards the purchase of their primary residence.
•Those want house on rent they will receive $2500 allowance of funding toward the cost of their apartment in the first year followed by additional funding of $1,000 for the second year.
•Existing homeowners receive matching funds of up to $5,000 for exterior improvements for projects of $10,000 or more.
Program Overview
Program Description
The Live Downtown residential living program provides four types of incentives for eligible employees to live and invest in their homes in greater downtown area. These four options will accommodate those looking to purchase a new or existing home, those interested in renting, or those interested in exterior improvements on an already owned property.
The Live Downtown program provides:
o New homeowners to the district with a $20,000 forgivable loan toward the purchase of their primary residence;
o New renters to the district with a $2,500 allowance toward the cost of their apartment in the first year, and $1,000 towards the cost of their apartment in the second year
o Existing renters within the district will be eligible for an allowance of $1,000 over one year when an existing lease is renewed
o Existing homeowners in the district with a matching allowance of up to $5,000 for exterior improvements for projects of $10,000 or more
The Live Downtown program is administered by Midtown Detroit, Inc (MDI). It is subject to the availability of funds and may be cancelled at any time. Employees are only eligible for one program.
Employee Eligibility
All applicants must be employed by a participating downtown company. Currently participating in Live Downtown are Blue Cross Blue Shield of Michigan, Compuware Corporation, DTE Energy, Quicken Loans, and Strategic Staffing Solutions. All applicants must meet the eligibility requirements as determined by their respective employer.
Eligibility for subsequent program opportunities is at the discretion of each participating employer.
Verification and Preapproval
Employees wishing to participate in the program should visit www.detroitlivedowntown.org for further information, or contact their employer designee on how to apply for the program.
Program Start Date
The Live Downtown program is effective beginning July 25, 2011.
Only purchase agreements and leases initiated after this date will be eligible. For employees who wish to take part in the exterior improvement program, their primary residence in the district must have been purchased prior to July 25, 2011.
Income Tax Related to Incentive
The applicant is required to acknowledge their understanding of the income and subsequent tax withholdings related to their participation in the Live Downtown program. As part of the application process all applicants are required to read, understand, and sign a tax disclosure form.
Program Boundaries
The Live Downtown program will be available for use with residential housing units located in the area bounded by:
◦ To the North: Interstate 94 / Mack Avenue East of Interstate 75
◦ To the East: Interstate 75 North of Mack Avenue / St. Aubin Street South of Mack Avenue
◦ To the South: Detroit River
◦ To the Southwest: Train Tracks West of Rosa Parks Boulevard & Fort Street
◦ To the West: Rosa Parks Boulevard / 14th South of Interstate 75
Owner Occupied Purchases
Property Eligibility
Housing Type
Employees currently residing outside the district wishing to purchase a home in the greater downtown for their primary residence will have several housing styles from which to choose. These include detached single-family homes as well as row houses, townhomes, condominiums and cooperatives. Structures consisting of two units are also eligible provided that one unit remains owner occupied as the qualifying employee’s primary residence.
Application Process
Verification
In order to verify that a property is eligible for the program, it will be necessary to submit a copy of the MLS real estate listing to Midtown Detroit, Inc. with part two of the application.
Time Limitation
Applicants have 60 days from their verification of eligibility to select a target property for purchase and submit their Part II application. The applicant shall then have 60 days from the date of property preapproval in order to complete their purchase. In the event of a delayed closing a one-time 30-day extension can be authorized. Applicants whose closing date is delayed beyond the 30-day extension must reapply and will be subject to funding availability.
Acquisition Financing Structure
New or existing homes may be purchased with or without the use of a mortgage. A mortgage that provides for acquisition along with additional funds for rehabilitation (e.g. FHA 203K) is permitted under this program. The purchase of a home through land contracts will be evaluated on a case-by-case basis. Any land contract must be recorded with the Wayne County Register of Deeds under this program.
Application of Funds Lump Sum Single Payment to Title Company
Up to twenty thousand dollars ($20,000) will be made available prior to closing through wire transfer or certified check directly to the title company, closing attorney or other settlement agent for disbursal on behalf of the applicant. These funds can be applied directly to the purchaser’s closing costs and down payment. Funds can also be used to purchase mortgage discount points.
Treatment of Cooperative Purchases
Live Downtown purchase incentives support the purchase of housing that is managed and governed by a cooperative structure. These purchases will be approved on a case by case basis based on the specific requirements of each employer. Contractual Obligation In order to secure the loan, a contractual agreement will be entered into between the employer and the participant.
Compliance Annual Update
A compliance update form will be mailed by Midtown Detroit, Inc., via certified mail, to each participant each year. This will serve as verification of employment status, ownership, and residency. Each program participant will be required to submit proof of insurance, evidence of occupancy and payment of property taxes at this time in order to remain in compliance with the loan agreement. The loan is considered due immediately in the case of any of the following events: Separation of Employment If a participant should separate from the sponsoring company, the repayment of any unforgiven loan funds will be considered due. Sale of Property If a participant sells the home for which a loan has been applied, the amount of any unforgiven portion of the outstanding loan is due immediately. In the case where a participant is purchasing another home in the Live Downtown program area, the loan will continue subject to compliance for the remainder of the term. Change of Residence If a participant moves from the home for which a loan has been awarded, the amount of the outstanding loan is due immediately. However, in the case where a participant is purchasing another residence in the Live Downtown program area they can apply to have the outstanding balance applied to the new residence and continued forgiveness will then be subject to compliance of the new residence for the remainder of the term. Uninhabitable Condition In the event of damage due to fire, vandalism, or act of nature that renders the structure uninhabitable, the homeowner will have 120 days to complete repairs or the structure will be considered abandoned and the outstanding amount of the loan becomes due. Limitations Employees currently owning their primary residence within the district are not eligible for the purchase program.
Residential Rental
Property Eligibility Housing Type
Employees wishing to reside in the greater downtown by leasing their primary residence will have several housing styles from which to choose. These can include detached single-family homes as well as row houses, townhomes, lofts, flats and apartments. In order to ensure a quality rental unit all eligible units must conform to applicable building codes, be a registered rental unit with the City of Detroit Buildings, Safety Engineering, and Environmental Department and be subject to inspection by Midtown Detroit, Inc. staff. Verification & Pre-approval In order to verify that the rental property is eligible for the program, a copy of a preliminary lease agreement and a current Certificate of Compliance issued by the City of Detroit Buildings, Safety Engineering, and Environmental Department must be submitted with part two of the application. A staff member of Midtown Detroit, Inc. may also contact the lessor to schedule an inspection if the property has not been recently evaluated. Applicants should also submit a copy of their driver license with the application
Application Process Step Application Part Action Responsible
Fully complete part one of the appropriate application Applicant
2 1 Read, understand and sign the tax disclosure form Applicant
3 1 Deliver completed Part 1 of the application and the tax disclosure form to your human resource designee (DTE applicants deliver to MDI) Applicant
4 1 Determine applicant eligibility for program Corporate Designee
5 2 Select target property for primary residence within 60 days of eligibility verification Applicant
6 2 Deliver completed part 1 & 2 with attachments to MDI Applicant
7 2 Determine property eligibility MDI
8 2 Notify applicant of property pre-approval MDI
9 3 Secure signed lease for pre approved property Applicant
10 3 Distribute landlord contract to applicant for delivery to property manager MDI
11 3 Facilitate signature of landlord contract and return to Midtown Applicant
12 3 Final employer and administrator sign-off MDI Leasing Lease Terms The minimum term for a residential lease under this program will be for one-year. Leases longer than one year are acceptable. Month to month leases are not eligible.
Time Limitation
Applicants have 60 days from their verification of eligibility to select a target property for rent and submit their Part II application. The applicant shall then have 45 days from the date of property preapproval in order to sign a lease. Applicants whose lease signing is delayed beyond the 45-day limit must reapply and will be subject to funding availability. Leases signed before Midtown Detroit, Inc approves property eligibility with signature in Part II of the application will not be eligible for funding. Application of Funds For new downtown area residents, a total of up to $3,500 in rental subsidy funds will be available to an employee over a two-year period-$2,500 in the first year and $1,000 in the second year. Existing downtown area residents will receive $1,000 for a period of one year upon lease renewal. Funds will be distributed quarterly directly to participant’s lessor. Property managers will be required to enter into agreement with Midtown Detroit, Inc. to accept funding on behalf of the candidate. All paperwork must be completed and received for initial payment by the 15th of the month prior to each new quarter. Application packages received after this date will be deferred to the next new quarter. Rent payment deadlines remain the responsibility of the tenant. Participants should retain adequate funds to cover their rent obligation throughout the course of their participation in this program.
Compliance 13
Monitoring
To ensure compliance, participants who receive funding are subject to monitoring for a one-year period beginning at the day of lease. Termination of funding is initiated through noncompliance with the funding agreement. Noncompliance events include separation of employment and change of residence. In the event of noncompliance, all future quarterly payments to lessor will be withheld. Applicant may be asked to supply copies of current tenant paid utility bill quarterly as part of monitoring. Separation of Employment If a participant should separate from the sponsoring institution, for any reason, the quarterly payments will cease. Change of Residence If the participant moves out from the residence for which the lease has been signed, no further payments will be paid. However, participants relocating to another eligible residence in the downtown area, may reapply and, if approved, quarterly payments will then be made to the new lessor. Overall rental subsidy funding shall not exceed $3,500 per participant
Existing Owner Improvements Property
Eligibility Housing Type
Employees currently owning a home in the greater downtown as their primary residence will be eligible for exterior improvement matching allowances. Eligible structures include owner occupied residential properties consisting of one to two units. These can include detached single-family homes as well as row houses and townhomes. Residences where a homeowners association, condominium association or other form of cooperative is responsible for the building exterior are not eligible. Verification & Pre-approval In order to verify the employee property is program eligible, it will be necessary to submit a copy of the deed to the Midtown Detroit, Inc. with part two of the application. Pre-approval of a proposed exterior home improvement project is required.
A written scope of work must be submitted with part three of the application. Eligible Work Qualified Improvements Qualified improvements will be limited to the exterior of the home. These improvements include a wide range of beautification, weatherization and restoration projects. These projects include: o Roof replacement o Masonry restoration o Window repair or replacement o Exterior restoration o Exterior painting o Exterior Lighting o Gutters and downspouts o Siding & trim repair o Street Fronting Sitework (including fencing, walks, etc.) 15 All work must be approved in part three of the application by Midtown Detroit, Inc.. Assistance and guidance will be made available through the Midtown Detroit, Inc. staff along with a recommended contractor list.
Zoning and Code Compliance All approved work must be performed in conformance with local zoning ordinances and applicable building codes. Should the structure be located in or adjacent to a City of Detroit designated historic district, the proposed work must meet applicable requirements including the issuance of a Certificate of Appropriateness from the City of Detroit Historic District Commission. Property Tax and Insurance Property tax payments and homeowner’s insurance coverage should be up to date in order to participate in the program. Proof of insurance and evidence of property taxes being paid current are required in part three of the application. Matching Funds This allowance will operate on a reimbursement basis.
Preapproved projects with qualifying costs of $10,000 or more will receive the maximum allowance of $5,000 upon project completion and proof of payment. Preapproved projects with qualifying costs of less than $10,000 will receive a 50% allowance reimbursement upon project completion and proof of payment. Future projects remain eligible for matching funds until the $5,000 total reimbursement is reached. Qualifying project costs will be based on materials only for Owners wishing to undertake their own repairs. Matching Fund Example Total Qualifying Project Costs Total Paid by Homeowner Reimbursed Upon Completion and Full Payment Allowance Amount Available for Future Project $ 12,000 $ 12,000 $ 5,000 0 $ 10,000 $ 10,000 $ 5,000 0 $ 8,000 $ 8,000 $ 4,000 $ 1,000 $ 5,000 $ 5,000 $ 2,500 $ 2,500 Contractors All proposed work requires bids from a minimum of two contractors.
Work may be performed by a general contractor, or depending on the scope, one or two specific tradespersons. In the case of multiple trades hired directly by the homeowner, two bids will be required for each trade. Owners may also perform their own work where practical though only the cost of materials will be considered eligible project costs for the matching allowance. 16 Separation of Employment If a participant should separate from the sponsoring institution, for any reason, the quarterly payments will cease.
