If You're Interested in Purchasing an Affordable Home…

Who may apply for this program?
Any person or household who meets the eligibility requirements may apply. However, you must be able to qualify for a mortgage on your own.

Do I have to be a first-time home buyer?
No. As long as your income is within program limits, you can purchase a workforce home.

Where can I find information on available housing units?
You can visit http://www.coloradohousingsearch.com/ for available units.

Do I have to attend a homeownership education class to qualify for this program?
You are not required to attend a homeownership education class; however, it is STRONGLY recommended that you attend one.  Several non-profit organizations offer such classes.  Information regarding these organizations can be found at http://www.milehigh.com/housing.

What are the income limits for the program?
The affordable housing program has minimum and maximum income limits. The minimum and maximum income limits are based on the Denver Area Median Incomes published annually by the U.S. Department of Housing and Urban Development.  The minimum income limit is 50% of the AMI (area median income) and the maximum will be either 80% or 95% AMI, depending on the development.
My income exceeds the income limits, can an exception be made?  There are no exceptions made in regards to the household income limits.  These income limits are established per the above guidelines and are set. Reminder: All individuals earning an income will be counted towards total household income and must be reported.

What must be included with the application? 

• Name /Address of the development in which you're interested in purchasing
• Completed application signed and dated by all applicants. 
• Complete copies of the last TWO YEARS of FEDERAL income tax returns and corresponding W2's, for each employed household member age 15 or older. If you do not have copies of your tax returns, contact the IRS at 1-800-829-1040.    
  Last TWO MONTHS of statements for all checking, savings or other asset accounts.  Asset accounts include stocks, bonds, money market accounts, individual retirement accounts and government bonds. The interest or dividends earned from these accounts will be added to your annual gross income.
• Employment verification form for each employed household member age 15 or older. (http://www.milehigh.com/housing/for-sale/forms)
  Copies of the last TWO MONTHS pay stubs from each employed household member age 15 years and older. IF SELF EMPLOYED, three years of Profit & Loss statements.  
• Affidavit of documented citizenship and copy of State picture ID.  (This form can be found at http://www.milehigh.com/housing/for-sale/forms 
• Award letter(s) if receiving social security, pension, survivor, disability payment or Temporary Assistance to Need Families (TANF)
  If receiving a financial gift from another person, the person will need to provide a letter that includes the amount of the gift and when the gift will be given.
• If you have been divorced since you last filed your federal income tax form, a copy of your executed divorce decree.  Applications will not be processed until a final divorce decree has been issued. 
• If divorced; copy of Divorce Decree showing maintenance (alimony) and a copy of child support/custody orders if there are minor children.  Applications will not be processed until a final divorce decree has been issued.

How long can expect my application to take to process?
It may take up to ten business days to process your completed application.  A completed application includes all of the information listed above. Applications can be found at http://www.milehigh.com/housing/for-sale/forms
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The Four Most Common Application Omissions include:

• Submitting only W-2’s without copies of the accompanying taxes (or visa versa); 
• Submitting only two paystubs, not realizing that most paystubs cover only a two week period.   Leaving one month of paystubs unaccounted for; 
• Self-certifying the Verification of Employment – the VOE must be completed by the employer  and submitted directly to our office; and
• Completing the Affidavit but not having it notarized.

Is this a subsidized program?
No.  Private developers are required by ordinance to provide a certain number of affordable homes within developments of 30 or more homes. Neither the City nor the developers provide any subsidy to buyers. However, you can receive down-payment assistance from organizations  approved by the City. These organizations can be found at:  http://www.milehigh.com/housing

How about seller-assisted down-payment assistance?
The City does not allow the use of any seller-assisted programs, such as Neighborhood Gold or Nehemiah programs. These programs have a negative effect on affordable housing by artificially inflating the purchase price of a home.

Is moderately priced housing the same as low income housing?
No. The City defines moderately priced or workforce housing as housing that is affordable to persons earning between 50 percent and 80 percent of the Denver area median income.

My income is below $25,000; where can I find a place to live in Denver?
People or families with incomes lower than 50% AMI may not be able to afford a home under the Affordable Housing program. The Denver Housing Authority (DHA) offers a variety of programs to assist very low income households. DHA can be reached at 720.932.3000. You can also view their website for additional information at: http://www.dhanet.com/DHA/Housing/

This is an emergency - can you find me a place to live right now!
Unfortunately, the Affordable Housing program does not offer emergency housing. However, you can contact Mile High United Way at 211 for a list of emergency housing providers. You can also view their website for additional information at:  http://www.unitedwaydenver.org/.

How long is my income-verification valid?
Your income verification is valid for six months. However, if you signed a purchase contract prior to or within the six months, the validity is automatically extended until the close or cancellation of the purchase contract.

I was income-verified over nine months ago but did not purchase an affordable unit home. Do you still have my file?
No. Files are only kept for six months unless you applied for a renewal.

I do not have a job; can I still apply?
In order to assure future home owner success, we require demonstration of two months of pay stubs or a year-to-date profit and loss statement for those self-employed.

I am self employed, what will you accept in the place of a pay stub?
If you are self employed, you must submit three years of profit and loss statements.  If you have just become self-employed, please submit a year-to-date profit and loss statement prepared by either you or your accountant. The statement must be notarized, sworn to, and signed by you.

I lost last year's tax return - do you really need it?
Yes. Incomplete applications will not be processed and will be returned. You can contact the Internal Revenue Service to request a summary statement of your previously filed tax return. Request transcripts by calling 1-800-829-1040, or order by mail using IRS Form 4506T (Request for Transcript of Tax Return) found at http://www.irs.gov/pub/irs-pdf/f4506t.pdf.  The IRS does not charge a fee for transcripts. Allow two weeks for delivery.

My last tax return shows more income than I now make. Will this affect my eligibility for the program?
Probably not; we use pay stubs to determine your current and future income, and the employer verification of income to project current income. Your tax return is used to verify other information on your application.

Do I have to be a U.S. citizen to apply?
You do not need to be U.S. citizen to apply; however, you must demonstrate lawful presence in the country by completing the affidavit found at http://www.milehigh.com/housing/for-sale/forms.

I just arrived in the U.S. and have never filed taxes. What do I need instead of tax returns?
You must provide documentation to verify the date of entry into the U.S. (a copy of Form 1-94 with entry date stamped). You must also contact the Internal Revenue Service to request a Form 4506T stating that you have not filed federal taxes in the last two years. You can request this form by calling 1-800-829-1040 or by accessing http://www.irs.gov/pub/irs-pdf/f4506t.pdf.

I have a relative who will be co-signing my mortgage loan but will not live in the home I am purchasing. Will my co-signer have to be income-verified as well?
Yes and No. If the co-signer, regardless of whether they will live in the unit, is listed on the Deed of Trust, then they are considered to have an ownership interest in the home and must be income-verified. However, if the co-signer is not listed on the Deed of Trust, then they do not have to be income-verified.  Please be aware that any person who is going to live in the home must be income certified.

Do you provide financing for my home?
No. The Business & Housing Services does not provide mortgage financing.  Purchasers must receive their financing through a commercial lender, such as a bank or mortgage company.  Again, we strongly encourage you to contact a non-profit homeownerships counseling agency for guidance.  These agencies can be found at http://www.milehigh.com/housing.

I am receiving a gift from a relative for downpayment assistance and closing costs. What do I do?
You should provide a letter from the person giving you the gift indicating the amount of the gift.

If You're a Current Affordable Home Owner…

My property tax bill shows an assessment that is higher than the maximum I am allowed to sell my unit for, what do I do?
If you signed and recorded a Memorandum of Acceptance (MOA) when you purchased your home, the assessor's office will use the restricted value to determine your taxes, otherwise your tax will reflect the unrestricted market value of your property. Provide a copy of your MOA to the assessor's office to correct the mistake.

What is a Memorandum of Acceptance (MOA)? I don't remember signing one.
The MOA documents your acknowledgment and understanding of the covenant restrictions placed on your property. You should have signed one at the time you closed your mortgage.

What is the control period on an affordable unit home, and what does it mean?
The control period is a set period of time beginning on the settlement date of the initial sale of the affordable unit home and either 15 years for IHO units or between 5 and 20 years into the future for re-zonings. During the control period, the affordable unit must be sold at a restricted price to an income-qualified buyer. The control period is not re-set or restarted with the resale of any unit.

Are there any limits on the sale price of an affordable unit home after the control period is up?
It depends on the Covenant.  For IHO units, if the sale is the first to occur within 10 years after the end of the 15-year control period (i.e. years 16 through 25), half of the excess profits must be paid to the City's Housing Incentive Program Fund. This requirement may or may not apply to projects built under re-zoning agreements.  Please refer to the project Covenant.

Once the control period has expired, can the owner sell to whomever they want to?
The City has a right of first refusal and must be offered the affordable unit home at a fair market price during the first 30 days. If after that time the City does not make an offer to purchase the unit, the owner can sell it to anyone. However, the excess profit must be shared if the sale meets the condition described above.

What is the definition of “excess profit”?
Generally, excess profit is calculated by first determining an “affordable unit home sale price” which is the total of the initial acquisition price (adjusted for inflation), realtor's commission, and some closing costs. This figure is then subtracted from the contract sales price to determine “excess profit”. The City is entitled to one half of the excess profit from the first sale of an affordable unit home occurring within 10 years of the end of the control period.

How are the affordable unit home requirements enforced?
The City's affordable unit home requirements are enforced through covenants that are placed on the property. Once the control period has ended, and once the City has received its share of the excess profits (if applicable), these covenants are released.

Does the City take action against affordable unit home owners who do not follow the covenants and program requirements?
Absolutely YES! The City will vigorously enforce all requirements and, when necessary, seek remedies as provided for by the ordinance.