TARGET POPULATION : Four two-family homes for low-income (below 80% AMI) and very low-income (below 60% AMI) households.
FINANCIAL INCENTIVE: You can receive a $15,000 grant for downpayment assistance and/or mortgage subsidy plus an additional $3,263 grant from the
City of Worcester for the purchase of any of these homes.
Also, you can receive an advance loan on the $8000 Income Tax Credit that you will be eligible to receive as a first time homebuyer. See the very bottom of this page for more information.
TOTAL DEVELOPMENT COST :
$2,110,000
FUNDING :
$480,000 City of Worcester HOME Funds
$760,000 State Housing Stabilization Funds
$870,000 Property Sales
FINANCING :
$870,000 Webster 5 Construction Loan
The Bell Hill Home Ownership - Phase 4 Initiative is a direct outgrowth of the priority identified by community groups to address the extensive amount of vacant, troublesome properties in this neighborhood. It broadens and strengthens the impact of the former phases and initiatives, which already have created 50 units of affordable ownership and rental housing in this most distressed neighborhood of the CDC’s service area. This project is comprised of a total of four separate parcels, in many cases ones that are adjacent to those completed in the earlier phases. They will be developed into a very high-quality, energy-efficient, two-family homes for low-income and very low-income households, with one rental unit targeted to a homeless household. New construction will transform the currently vacant and problematic sites into beautiful new homes for families and individuals.
Each of the homes in the project will consist of a three-bedroom, 1½ bathroom owner’s unit and a two-bedroom, 1 bathroom rental unit. Sites will include off-street parking and yards. The plans utilize a variety of “green” materials to help minimize the development’s negative impact on the environment.
A major component of this project is the Employer Assisted Bell Hill Home Ownership Fund that was established in partnership with UMass Memorial Health Care. This program began two years ago with the CDC’s Phase 3 development. As part of that phase, UMass contributed $250,000, which leveraged an additional $750,000, to create the Bell Hill Home Ownership Fund. This pool of money provides down-payment assistance grants and subsidies on soft-second mortgages to those seeking to purchase homes in Bell Hill. UMass has recently contributed an additional $100,000 to support this fund.
A portion of the fund was targeted to UMass employees to encourage them to move into the Bell Hill neighborhood. The balance is available to all low-income households. The financial incentives of this program are significant and ensure the continued growth of this neighborhood. To date the fund was utilized for the purchase of twenty-two homes in the community, which included all eleven homes that the CDC developed in its Bell Hill Phase 3 and Phase 4 projects. A total of ten homes were purchased by UMass employees. The funds that remain in this pool have been augmented by an additional contribution by UMass this year. These funds enhance the marketability and facilitate the sales of all homes throughout the neighborhoods served.
As part of the CDC’s commitment to the revitalization of the east side, it regularly invests its own capital first into every project that it develops. In Phase 4 the organization financed approximately $350,000 of the acquisition and pre-development costs incurred with its own money. The project has been fully completed with three of the home sold and the fourth scheduled to close at the end of February. The sites that were developed are listed below.
119 Eastern Ave. is located amid numbers 116, 121, 123 and 125 Eastern Ave., all of which were previously completed and sold to first-time homebuyers by the CDC in Phases 1, 2 and 3. This two-family building was destroyed by fire several years ago and has been a vacant dumping site since then. Plans called for its demolition and construction of a new 2-family home. SOLD
22 Catharine St. had been a vacant, troubled building for more than 10 years. The CDC persevered through a combination of legal and financial troubles that encumbered the property to finally acquire it for this project. Because of major structural instabilities, the house had to be demolished and replaced with a new 2-family home. SOLD
30 Catharine St. is a 6000 sq. ft. vacant lot a few doors down from #22, upon which another new 2-family home was constructed. SOLD
10 Hooper St. is another parcel that the CDC had pursued for a great many years. It was finally purchased this year at an auction held by the City of Worcester. The vacant 6200 sq. ft. lot was developed into a new
2-family home. ON DEPOSIT
This project continues the CDC’s concentration on this neighborhood in a way that will strengthen the forward momentum that is already in place. The transformation within this community over recent years is tangible and significant. The blight and unsafe conditions that once existed are now disappearing. New stakeholders are brought into the area with each new home ownership opportunity. This has led to a greater interest among homebuyers and investors to purchase homes and investment property in the community. Phase 4 will broaden this economic, visual and perceptual impact in a very positive manner.
22 Catharine Street - ** SOLD **
30 Catharine Street - ** SOLD **
119 Eastern Avenue - ** SOLD **
10 Hooper Street - ** ON DEPOSIT **
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Homebuyer Tax Credit Loan Program
MassHousing is now offering a loan program that allows first-time homebuyers to use the $8,000 federal tax credit as part of their downpayment or to cover closing costs, rather than waiting until they file their 2009 taxes.
How it works:
1. Homebuyers who are using a MassHousing loan to purchase their first home apply for the loan program through MassHousing’s statewide network of more than 160 lenders
2. The loan is used to cover closing costs and as part of the downpayment
3. In 2010, the homebuyer claims the $8,000 tax credit on their 2009 federal tax return
4. The homebuyer then repays the MassHousing tax credit loan
a. No interest is charged if the loan is repaid by June 1, 2010
b. Otherwise, the loan is amortized over the next 10 years at the same interest rate
as the first mortgage
Eligibility:
To qualify for the Homebuyer Tax Credit Loan Program, you must
• Be a first-time homebuyer using a MassHousing loan
• Meet income limits and purchase price guidelines
• Purchase a one- to four-family home before November 30, 2009
• Use the property as your primary residence for the life of the loan
Other Information:
• Loan may be used for downpayment and closing costs
• Principal and interest payments are deferred until June 1, 2010
• There is a $300 application fee. If the tax credit loan is repaid by June 1, 2010, the
borrower will receive a $300 credit toward the principal of their first mortgage
• Maximum tax credit loan amount is $8,000 or 10% of the home's purchase price,
whichever is less
For more information, visit www.masshousing.com or call 888.843.6432.
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