Home Ownership Programs

Application Conditional_Installment (pdf)

Download

Application Mutual Help (pdf)

Download

Welcome, contact an Occupancy Specialist for more information.

Linda.Barr@tnha.net

1-907-852-7159

Summary: Mutual Help Homeownership Program Requirements

FInancial

  • Mutual Help Contribution at move in: $1,500
  • Mutual Help Maintenance Reserve: $2,500 (subject to change by action of TNHA Board of Commissioners) 
  • Homebuyer is responsible for all utilities

Ability to Pay

Must show ability to pay the administration charge: $150 (subject to change by action of TNHA Board of Commissioners)

Timely Payments

Must make required payments on or before the first day of each month

Maintenance

Must be able  toprovide maintenance to the home as needed.  The homebuyer is responsible for routine and non-routine maintenance of the home. This includes ALL repairs and replacements (including those resulting from damage of any cause.)   

Primary Residence

Must make the home the primary place  of residency

Approval Prior to Change

Must receive approval from TNHA prior to making any structural changes, improvements, repairs, or additions tothehome  

CURRENT HOMES: MUTUAL HELP PROGRAM

Now accepting applications.  See Mutual Help Application above.

812 PIZ (pdf)

Download

917 ATQ (pdf)

Download

1025 PHO (pdf)

Download

CURRENT HOMES: CONDITIONAL INSTALLMENT PROGRAM

Now accepting applications.  See Conditional Installment Program application above.

4409 Hula Hula KAK (pdf)

Download

FAQ: Conditional Installment Sale of Home

What kind of housing contract is this?

This is a sale of property to be paid over time in the form of regular installment payments.  Because the Buyer will not receive title until all the payments are made, it is called a “conditional installment sale.”

What are the benefits of a Conditional Installment Sale?

The purchase price is fixed, your payments are scheduled in advance.  You will receive title at the end of the Contract if you pay all your installments on time.  You can also pay the home off early if you have the funds, and avoid future administrative payments and interest.

What are the risks of a Conditional Installment Sale?

If you don’t pay on time, TNHA can repossess the home.  In that case you will not get any of your payments back.  Also, if you stop paying and the house is in poor condition, TNHA may require you to take title to the Home, subject to being indebted to TNHA for the unpaid purchase price.

What is a down payment?

The down payment shows your commitment to buying the home and meeting the terms of the Contract.  It is credited toward the purchase price when you complete your payments and receive title.  If you move-out with TNHA’s permission and the home is in good condition, and you have no account balance, you may receive all or part of the down payment back.

Will I be the owner of the home?

You will be treated as an owner, not as a renter.  You will have all responsibility for the home, including taking good care of it.  TNHA keeps the official title to the home until all your payments have been made.

How are the payments calculated?

The home is intended to be affordable, and to have the shortest schedule of principal payments that is consistent with affordable monthly payments.  (The “principal” is the same as the purchase price).  Interest is then calculated and spread over the term of the payments.  Review your amortization schedule to understand how the payments are allocated between principal and interest.  And don’t forget that you will also pay an Administration Charge as well..

What is included in my monthly payment?

Interest, principal (that is, payments of the purchase price), and Administration Charge.

Where do I send payments?

TNHA.  There is no third party or bank involved in this program at this time.   If TNHA asks a third party to handle payments, it will give you written notice of the change.

How long will I make payments?

The number of monthly payments is stated on the front page of the proposed Contract and in the Amortization.   20-25 years is the range for most Buyers.

How long will the contract last?

The Contract continues until you receive title or the Contract is terminated.  The period for making payments is the time period that the Contract is intended to last.    But it is possible you will be able to purchase early – and save on interest costs and Administration Charges.  Or, if you run into serious financial problems, it might take slightly longer to pay-off your debt.

When can I pay-off the home?

Whenever you have the cash or can borrow funds to pay the remaining purchase price, closing costs, plus any balance on your account for Buyer’s Charges (such as late fees).

What is the interest rate?

The interest rate is stated on the front page of your Contract.

What is an Amortization Schedule?

This shows the schedule of payments you will make, and how each payment is divided into interest and principal.   Administration Charge is in addition to the principal and interest you will pay.

What is the Administration Charge?

TNHA incurs costs to provide the home to you, such as the time staff incur to account for your monthly payments and to document contract compliance.  The Administration Charge covers those costs.  The main cost is fire and casualty insurance for the home.

Will my payments stay the same for the whole contract?

The Administration Charge may increase if insurance costs increase substantially.

What happens if I don’t make payments?

TNHA will send you notice of termination and/or contract violation.  You will be given a certain time period to cure the violation, or to prove that you didn’t violate the Contract.   If you don’t promptly correct the violation TNHA may go to court to repossess the home.  TNHA can seek a judgment against you for the installment payments you haven’t made, and to enforce the Contract requirements.

What if I can only make partial payments?

Talk to TNHA and explain your situation as soon as possible.    TNHA can only work with you if you stay in communication.

Can I borrow on the home?

No.  TNHA is the record title owner, and will not approve any personal liens or mortgages on the home.

Can I get out of the Contract if it’s not working for me?

You can ask TNHA to let you out of the Contract.  If the home is in good condition, TNHA will allow you to terminate the contract.  However, if the home is in poor condition, TNHA may refuse, because the home can’t be put back into good condition for a new buyer without large expenditures.  In that case, different arrangements will have to be made.

We will be out of town for several months. What do I need to do?

Notify TNHA of your situation and what you plan to do to protect the home and to continue your payments.  TNHA must have your current contact information and information about local contacts responsible for the home.

I need someone to help me fix the plumbing/ furnace/ electrical/remodel. Will TNHA help me?

No.  You are fully responsible for taking care of the home and keeping it operational.  TNHA might be able to give you names of contractors who do the kind of work you are looking for, but the decision and choice to hire and pay contactors is up to you alone.

I can’t afford to replace some of the damaged/obsolete/worn-out parts of the house. What do I do?

  In the future, TNHA may develop homeowners’ assistance programs for low-income Alaska Native/Native American families who meet eligibility requirements.   However, at this time no owner’s assistance program is available.  You will need to keep the home in safe, decent, sanitary condition using your personal resources or other programs that might be available.

I plan to move, but I want the Home for retirement. My sister wants to live there, is this allowed?

Absences are limited under this program to 24 months.  If your sister qualifies, TNHA may approve her as a new Buyer. She can be added to your Contract to show that you both have an interest in the home.  The better option is for you to pay-off the home and then it will be yours to live in (or not).

What happens to the home if I die?

TNHA may transfer the Contract to a person you choose, with TNHA’s approval, after your death.  Your choice of individual to receive the home is documented in your “Successorship Designation.”  It is important to select someone to take the home who will have the income to make payments or who has the resources to pay-off the home.

If I have an issue or dispute with TNHA, what does the Contract require me to do?

Communicate soon.    Talk to your representative.  Disputes are easier to clear-up when they are addressed early on.  TNHA also has a grievance procedure you must use if you have issues with the Home or TNHA’s decision-making.  A grievance has to be submitted in a timely manner for TNHA to address it.

I think TNHA made a mistake after I made extra payments. What should I do?

Make sure you contact TNHA so it can check accounting records and tell you what monies have been received.  Again, if you can’t resolve this dispute by talking with staff, TNHA has a grievance process you can use.

Can I assign my Alaska Permanent Fund Dividend?

TNHA will accept any valid adult APFD assignment to credit on a conditional basis toward your house payments.  Because TNHA can’t be certain how much will be actually received from the assignment, the funds are not considered to be “paid” until they are actually received by TNHA.

I want to sell it, take the proceeds, and move out of town. How do I do this?

Any sale of the home must be approved by TNHA and may be rejected for the reasons stated in the Contract.    Your first stop should be to talk with TNHA.  Do not sign a sales contract or “earnest money” before you talk to TNHA about what you are hoping to do. You can explore the idea of a sale, but don’t commit.

What happens if my spouse and I separate or get divorced?

TNHA prefers that spouses reach an agreement over how the house will be occupied after divorce or separation.   If you want to remove a spouse or domestic partner who is currently on the Contract, TNHA must approve the removal.  If you are the one moving out, TNHA may require that you also stay on the Contract for financial reasons.

Why do I need to get insurance?

TNHA's coverage does NOT include personal belongings: you should obtain insurance to cover your personal effects, equipment, vehicles, and belongings.  TNHA’s risk pool coverage does not cover your possessions in the event they are damaged in a fire, storm, or accident involving the home.  Nor will TNHA pay for any damages or loss, because only you are responsible for insuring your personal effects.

What happens if the home suffers loss from fire or accident?

TNHA will review whether the proceeds of the risk pool coverage or other insurance are sufficient to rebuild, repair or replace the home.  Generally if there are sufficient funds TNHA will fund or perform the repair/replacement.  However, if TNHA determines that rebuilding is not feasible, the Contract specifies how the risk pool proceeds will be applied and whether you will receive conveyance of the land and/or any proceeds from risk pool coverage.  You will not receive any risk pool proceeds if the cost of debris removal, remaining purchase price (the principal balance on your Contract), and other Contract charges exceed the amount of risk pool proceeds.   You will not receive TNHA’s interest in the land if the unpaid purchase price exceeds the risk pool proceeds.  When there is a loss or fire, make sure you stay in close communication with TNHA while TNHA reviews the available options.

What is an Affordability Covenant?

If the home was funded by federal Indian Housing Block Grant dollars, under the Native American Housing Assistance and Self-Determination Act (NAHASDA), then a legal covenant has been placed on the home to ensure that it benefits low-income Indian/Alaska Native families for the home’s useful life.  This Covenant is recorded in the official property records.   The effect of the Covenant is stated in the Contract for Conditional Sale of Home.  The major impact is that you are more limited in transferring the home to others, during the term of this Covenant.   For example, if you want to transfer the home to a non-Native non-Indian who is not a low-income family member, the transferee will have to pay off the Covenant (the pro-rated government subsidy) in addition to the purchase price you have remaining on the Contract, in order to take over the home.  TNHA staff are ready to counsel you on the impacts of the Covenant and NAHASDA requirements, which are complex.

Money Talk

$200 Administrative Fee (Effective SEPTEMBER 01, 2018)

MUTUAL HELP HOMEOWNERSHIP PROGRAM

Do you homebuyers ever wonder why you pay the minimum required administrative charge of $200 per month?  The fundamental aspect of the Mutual Help Homeownership Opportunity Program is to provide affordable housing for the residents of the North Slope Borough with the opportunity to eventually own a home.  Everyone in this program pays the same percentage of income as his/her housing payment and the obligation to pay the amount must be equitably enforced.  In order for TNHA to be able to maintain the viability of this program for years to come, it is very important that the homebuyers continue to pay their monthly obligation on time every month to avoid excessive use of subsidies and dependence on government.  When you fail to make payments or to perform other obligations of the Mutual Help and Occupancy Agreement (MHOA), you not only reduce funding that TNHA can use for modernization of your or your neighbor’s home, but you will be issued a letter of noncompliance that may result in MHOA termination and eviction.  Thank you for making timely payments  to achieve  homeownership!

$25 Late Fee

  •   Statements are mailed on the 20th day of the month announcing your next payment due and any past due amount owed.
  •  All monthly payments for all homebuyer programs are due on or before the first (1st) day of the month.
  •  If TNHA has not received payment by the 10th day of the month, you will receive a late notice and will be charged a $25 late fee.

Utilities

All utilities are the sole responsibility of the homeowner.