Homebuyer programs supported with HOME funds may only assist low-income homebuyers. Qualified households must be a low-income household; occupy the property as the principal residence; and purchase the property with an approved form of ownership. ADFA staff will confirm that homebuyers have obtained ownership interest permitted under the HOME program. The HOME program allows for fee simple title, 99-year leasehold interest, ownership or membership in a cooperative, or an equivalent form of ownership approved by HUD. Potential purchasers must be qualified before the sale. Appropriate Deed Restrictions must be executed.

The Compliance staff will review the following:

The amount of homeowners insurance must be sufficient to cover replacement of the structure. Efforts to obtain copies of homeowners insurance policies and real estate tax receipts must include a minimum of two letters of request and one personal visit by the recipient or other designee. If these efforts are unsuccessful, ADFA reserves the right to take steps necessary to obtain the documents, up to and including recapture of funds or foreclosure.