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Mashpee Zoning Minutes—April 11, 2001 4 <br /> Board of Appeals <br /> Mr. Brem asked for the definition of an affordable house. Mr. Dickinson replied that it is i <br /> a home that can be purchased by an owner whose income does not exceed 80% of the <br /> median income of Barnstable County. He said that the homes will be constructed with <br /> private contributions and volunteers and will be sold to families that do not exceed 60% <br /> of the median income. The families that are chosen to buy the homes must put in 500 <br /> hours of"sweat equity"in helping to build the homes. Mr. Dickinson said that the homes <br /> will be sold for a 20-year, no interest mortgage. ! !! <br /> Mr. Brem asked how this affects the value of the house. Mr. Dickinson stated that there <br /> are two values of the house—a market value and an affordable value. <br /> i <br /> Mr. Brem questioned how families are selected. Mr. Dickinson indicated that advertising <br /> I� <br /> is done through the radio and the newspaper. Applicants are required to verify income <br /> and are subject to a credit check. Mr. Dickinson said that families can only make so <br /> much money, but they need to have good enough credit to ensure that they can pay the <br /> mortgage. The Family Selection Committee visits and interviews the applicants who <br /> meet the requirements and the Committee confirms that the family has a real need. <br /> Through this process of elimination, a group of finalists are put in a lottery, from which <br /> three home-owners are picked. <br /> Mr. Dickinson said that the familiespay mortgage, taxes and home-owners insurance that ! <br /> will amount to approximately$425.00 per month, per home. <br /> An individual from the audience interrupted Mr. Dickinson and <br /> asked " <br /> Who do the i <br /> Y ;II <br /> pay? It can't be a bank". Mr. Dickinson replied that Habitat for Humanity is the bank for <br /> these homes. i <br /> Mr. Regan said that the Board would entertain questions from those in the audience and <br /> asked for the individual to hold his questions until Mr. Dickinson was finished with his <br /> presentation. <br /> Mr. Borgeson asked what happens if the affordable home is sold before the 20-year <br /> mortgage is paid off. Mr. Dickinson said that the home-owner has a right to sell at any <br /> time. However, the Town of Mashpee, DHCD and Habitat for Humanity have the right !' <br /> to first refusal to buy the home at the cost of an affordable house at the time. If Mashpee, j <br /> DHCD and Habitat do not exercise that right,they can try to fmd a family that meets the <br /> criteria for purchasing an affordable home. If that does not happen, the family can sell at <br /> fair market price. Out of the proceeds of the sale at fair market value, Mashpee would <br /> receive the assessed value of the land. Mr. Dickinson indicated that there is not a 100% 1 <br /> guarantee that the homes will be kept affordable in perpetuity. <br /> Mr.Brem asked if the value of homes in the area would be affected by the construction of <br /> affordable homes and expressed concern that banks may decide not to issue mortgages on <br /> other pieces of property in the area. Mr. Dickinson stated that that has not happened yet j <br /> since Habitat for Humanity endeavors to construct in modestly-priced neighborhoods j <br /> I <br /> iI <br />