Homeownership Grants for Owner Occupants

Application Instructions, Program Information and Requirements

Program Summary

The City of College Park is offering $5,000 in grant assistance, on a first-come, first-served basis, to encourage the conversion of single-family rental properties to owner-occupied housing and to encourage police officers and city employees to make their homes in College Park. Funds are provided at settlement for use toward purchase of the property and participants may use grant funds in conjunction with other housing programs.

Eligibility:    

1. Anyone purchasing a single-family property that was previously rented for a minimum of two years is eligible for a $5,000 grant.   

2. A full-time certified police officer employed by the Maryland State Police, Prince George’s County Police, Maryland-National Capital Park & Planning Police, Metro Transit Police or the University of Maryland Police is eligible for a $5,000 grant toward the purchase of any city property including condominium apartments.

3. A full-time employee of the City of College Park is eligible for a $5,000 grant toward the purchase of any city property including condominium apartments.

Program Obligations & Requirements

1. Grant funds can only be used toward purchase of the property.  The funds will be paid at the time of settlement.

2. Applicants must agree to live in the property for a minimum of 5 years. If the property is sold anytime during the first 5 years, the pro-rated portion of the balance of the grant shall be immediately due and payable to the City.  If at any time during the five year period the property ceases to be owner occupied, the entire original grant amount shall become due.

3. Applicants must sign a Declaration of Covenants and Conditional Repayment Agreement at settlement.  Upon disbursement of grant funds, a lien will be placed on the property for a period of 5 years.

4. Recipients of a New Neighbors Program grant will be required to complete an annual certification form provided by the City stating they are in compliance with the terms of the grant.

5. Five years after the date of purchase, the owner(s) will be under no obligation to repay grant funds and the lien will be removed by the City.

6. The College Park New Neighbors Program grant may be taxable income, and the

      applicant is encouraged to consult with a financial advisor or the IRS to determine

      the status of these funds.

7.     Applicants must maintain appropriate homeowner’s insurance on the property at all times and provide an insurance certificate, naming the City as an additional insured at the time of settlement.

Application Process

1. Complete and submit the attached application forms and all required documentation to the City of College Park Planning Department at least two weeks prior to your scheduled settlement date.

2. If you are approved for a College Park New Neighbors Program grant, you should

      check with your mortgage company to see how the grant will be treated in the

      qualification process.

Definitions

1. Single- Family Property:  A building containing only one dwelling unit, which may be detached or attached, that is used as a complete and independent living facility for one family, which includes permanent provisions for living, sleeping, eating, cooking and sanitation.

2. Rental Property:  A non-owner occupied property which has been rented to a person or persons for a period of  two or more years, or an owner-occupied property which has been rented by three or more individuals for a period of two or more years.

3. An owner-occupied property is a property which is the owner’s permanent, year-round residence and which may be occupied by the owner’s family and no more than two other individuals who lease space from the owner.

For additional information contact Dorothy Friedman at 301-277-3445 or via e-mail at dfriedman@collegeparkmd.gov.