Frequently Asked Questions regarding the
Township’s Purchase Program:
Princeton Township’s Affordable Housing Purchase Program is unique in several ways: 1. the Purchase price is based directly on gross household income, unless the income falls below the Township’s minimum income guidelines to purchase. 2. Princeton Township markets all properties, and facilitates all transactions between sellers and purchasers. 3. the Township will purchase the unit if no income-eligible buyers from the wait-list can be qualified. The Township will then remarket the property. 4. the homeowner’s restricted resale price is the original purchase price plus the homeowner’s share of appreciation as calculated from the median differential from the point of purchase to the time of resale. 5. the Township may offer loans to qualified purchasers to help offset downpayments and/or closing costs.
WHAT ARE THE CRITERIA FOR ELIGIBILITY
Princeton Township’s applicant wait-list for purchases is an open list. If your gross household income and household size fall within Region 4 Income limits, (see the Regional Income Limits link), you may be eligible for the Township’s income-based purchasing program. Please submit an application, (see the Application link), to the Affordable Housing office at 369 Witherspoon Street, Princeton, NJ 08540.
WHAT ARE THE CRITERIA FOR QUALIFICATION TO PURCHASE?
The Township offers no guarantee or representation of unit availability for every applicant. Township qualification and selection is made on the basis of criteria including, but not limited to: household size; income; debt; credit history; unit availability; and residency status.
HOW IS THE PURCHASE PRICE DETERMINED?
Princeton Township’s program is unique in that the Purchase Price is calculated from a formula that determines 28% of your gross monthly household income, (unless your income is below the minimum income required to purchase, as determined by the Princeton Township Housing Board. (If your income is below the minimum income requirement, you may still be able to purchase if you can qualify for the Township’s program and obtain a mortgage for a purchase price that is derived from the minimum income requirements). The formula calculates monthly housing costs which include the mortgage, interest, taxes, sewer, Homeowner Association fees, and homeowner’s insurance. Private Mortgage Insurance, food and utilities are not part of the monthly housing costs.
WHEN, and HOW, ARE PROPERTIES AVAILABLE FOR RESALE?
All of Princeton Township’s resales units are occupied by homeowners. The length of the wait-time is dependent upon a homeowner’s decision to move. At that time, only the Township markets the property. The Township uses a random selection process to ensure that its program is an Equal Housing Opportunity. When a property becomes available, the Township sends out notification letters, at the same date and time, to those applicants on the wait list who are household size- and income-appropriate to the property being offered. Availability is also posted on the Township website. Applicants are required to respond immediately to the notification by calling the Affordable Housing office to leave a message on the voice mail system. Interviews are scheduled in the order in which the calls were received.
ARE PRINCETON TOWNSHIP’S AFFORDABLE HOUSING PROPERTIES DEED RESTRICTED?
All of Princeton Township’s Affordable sales properties have deed restrictions that impact the property. Some of the most important deed restrictions are: A) the homeowner(s) must occupy the property full-time and permanently. The property may not be rented or leased to anyone without the Housing Board’s permission, which is given only for specific hardship situations. No one may occupy the property, not even household members, unless the homeowner occupies the property as well, on a full-time permanent basis. B) the Homeowner’s borrowing capacity is limited. The amount of money that may be borrowed or refinanced, using the property as collateral, is determined by the Affordable Housing Coordinator. C) the resale price is a restricted amount, as calculated from the original purchase price plus appreciation, and may be more or less than the new purchase price. If the purchase price is less than the resale price, the Township will contribute to the purchase price. If the purchase price is more than the resale price, the Township will recapture the difference.
HOW ARE THE DEED RESTRICTIONS AND RULES AND REGULATIONS ENFORCED?
Any infraction of any deed restrictions, controls, and/or Township Affordable Housing Rules and Regulations may result in criminal, civil, and/or financial consequences, including the loss of your Affordable property
FOR ALL QUESTIONS, AVAILABILITY AND INCOME GUIDELINES FOR RENTALS, PLEASE CALL THE RENTAL AGENCIES THAT ARE LISTED ON THE “CONTACTS LINK”.
