FOR SALE

1134 Nelson Street

Fort Wayne, Indiana

The West Central Neighborhood Association (WCNA) is seeking a buyer for the property located at 1134 Nelson Street. This home is being rehabilitated with partial funding from federal HOME funds ($53,720.00) secured through the City of Fort Wayne Office of Housing and Neighborhood Services which is working with the WCNA to improve the neighborhood by providing affordable housing.

Located at the end of an historic brick street, this charming gable-front home overlooking Moody Park was rescued from the brink of demolition by the WCNA. Through the assistance

of the Indiana Association for Community Economic Development (IACED) and the City of Fort Wayne, the WCNA is financing the renovation of this home using a combination of the federal HOME funds and a loan from Tower Bank. It is for sale to a low-to-moderate income buyer who will be an owner-occupant.

Having suffered years of neglect, much work has gone into this home to return it to a livable condition once again. The overall project has included the removal of asphalt shingle siding and restoration of the wooden clapboards below, addition of two dormers to increase headroom in the second story, first floor laundry facilities, new kitchen and half-bath, and the creation of a modern interior layout to include a full bath on the second floor. The house will feature the installation of new windows, and new mechanical systems including heating and air-conditioning, plumbing, and electrical. The large lot allows for plenty of off-street parking space and room for a garage.

Features

· Extensively renovated structure

· All new mechanical systems including 90%+ high-efficiency, gas forced air heating; 14 SEER central air conditioning; plumbing; and electrical

· fresh drywall and paint

· new carpet

· all new kitchen with maple cabinets, laminate countertops, vinyl flooring, undercabinet lighting, track lighting, and new appliances (range, refrigerator, dishwasher, over-the-range microwave)

· modern half-bath with new pedestal sink, chrome faucet, chrome light fixture, and vinyl flooring

· modern full bath with new shower/tub, vanity, chrome faucet, chrome light fixture, and vinyl flooring

· fresh exterior paint

· laundry area on main floor

· new second-story dormers

· new and reconditioned windows throughout

· overlooks historic brick street and Moody Park

Property Information

Contact Information

West Central Neighborhood Association (WCNA)

P.O. Box 13151

Fort Wayne, IN 46867-3151

(260) 385-WEST

Community Connections

Trish Kraner (Manager of Real Estate Development)

227 E. Washington Blvd. Suite 306

Fort Wayne, IN 46802

(260) 424-1831

(260) 423-4502 (fax)

tkraner@pathfinderservices.org

Glenn Ellenberger

Keystone Realty

843 Goshen Ave.

Fort Wayne, IN 46808

484-0025

www.keystonehomes4u.com

Buyer Qualifications

· Must be owner-occupant of the property

· Must have a household income of 80% or lower the Area Median Income (AMI) – see chart below

2007 HUD Income Limits for Allen County, IN

(Median Income = 60,600 for a family of four)

	Limit per Number of Persons in Household
% of Area Median Income	1	2	3
80%	$34,350	$39,250	$44,150

· Should be in contact with Community Connections regarding homeownership education and financial assistance and qualifications:

Community Connections

Trish Kraner (Manager of Real Estate Development)

227 E. Washington Blvd. Suite 306

Fort Wayne, IN 46802

(260) 424-1831

(260) 423-4502 (fax)

tkraner@pathfinderservices.org

Additional Information

· The property is located within the West Central Local Historic District which is subject to design guidelines to protect the historic, cultural, and architectural integrity of the West Central neighborhood. Any future exterior work to the property that may result in a conspicuous change of characteristic features requires applying for a Certificate of Appropriateness from the Historic Preservation Commission Administrator located in the City of Fort Wayne's office of Community and Economic Development. Changes involving new construction, reconstruction, alteration, demolition, major maintenance, exterior color changes, and the introduction of fences, walls, lighting fixtures, permanent landscaping, etc. require a certificate before other permits are issued for, or work begun on, exterior projects. There is no fee or charge for filing a Certificate of Appropriateness application. For more information, call 427-2160.

· Because federal money has been invested in this property, there is a provision attached to insure that the housing remains affordable in the future (15 years), so the City of Fort Wayne has created a profit sharing arrangement called a “Resale Provision.” A homeowner may sell the property after the period of affordability without any restrictions. The affordability period will be terminated should any of the following events occur: foreclosure, transfer in lieu of foreclosure or assignment of an FHA-insured mortgage to the Office of Housing and Urban Development. The original housing developer may use purchase options, rights of first refusal, or other preemptive rights to purchase the housing before foreclosure to preserve affordability. In general, the Resale Provision applies to loans made for the purpose of closing an appraisal gap.

· The following points apply to the Resale Provision:

· The property must be sold to a low-income family, meeting the current federal income guidelines

· The purchasing family must occupy the property as a primary residence

· The purchasing family cannot pay more than 30 percent of their gross family income toward the principal, interest, taxes and insurance for the property on a monthly basis

· The homeowner is guaranteed a “fair return” (see formula below) on his or her investment

· All the requirements are to be described in a land covenant that is recorded with the Allen County Recorder’s Office by the housing developer

· The lien holder (housing developer) must use the following formulas to calculate a fair return to the seller and the amount due to the City of Fort Wayne:

· Formula for Fair Return to Seller = a + b + c + d + e

a) Appreciation in value during the ownership period (original purchase price multiplied by the appreciation rate as computed from the Metropolitan Indianapolis Board of Realtors Multiple Listing Service book for the number of years owned)

b) Five percent return per annum, compounded annually, on original down payment

c) Amount of mortgage principal paid during ownership period

d) Value of verified capital improvements made during the ownership period

e) Original down payment

· Formula for Amount Return to City = a – b – c – d

a) Selling price of home

b) Payoff balance of mortgage

c) Fair return to seller (from above calculation)

d) Closing costs at sale

EXAMPLE:

original purchase price in 1994 $50,000

original down payment $5,000

original mortgage balance $45,000

value of verified capital improvements $0

selling price in 1998 $65,000

closing costs at time of sale $3,000

amount of mortgage principal paid during ownership period $2,000

Fair Return to Seller = $10,827:

a) $50,000 multiplied by 5.5% $2,750 +

b) $ 5,000 multiplied by 5.0% per year $1,077 +

c) mortgage principal paid $2,000 +

d) value of verified capital improvements $0 +

e) downpayment $5,000 =

$10,827

Amount Returned to City = $8,173:

a) selling price of home $65,000 -

b) payoff balance of mortgage $43,000 -

c) Fair Return to Seller $10,827 -

d) closing costs $3,000 =

$ 8,173

· If selling the price of the home is not affordable to low-income families, the housing developer and the City of Fort Wayne may choose to either reduce what is due to the City or provide an additional subsidy to the new purchaser to make sure the affordability standard is met. This will be based upon market conditions from the area the property is listed.

· Period of Affordability: If the housing does not continue to be the principal residence of the family for the duration of the period of affordability, the housing must be made available for any future buyers whose family qualifies as a low-income family and will use the property as its principal residence. The housing must remain affordable to a reasonable range of low-income homebuyers. The period of affordability is based on the total amount of federal HOME funds invested in the housing as follows:

a – Five (5) years where the allocation is less than $15,000.00;

b – Ten (10) years where the allocation is $15,000.00 to $40,000.00;

c – Fifteen (15) years where the allocation is greater than $40,000.00.