Property Selection and Specifications

CNH assists families to purchase a basic home that will meet the needs of the family.  Families approved by the CNH Family Selection Committee search for houses that meet their preference and affordability.  CNH must approve all homes through an inspection process described below.

1. Manufactured homes, double-wides, single wides, and modular homes are not eligible.

2. Recreation and waterfront properties are generally not eligible.

3. Properties that are currently rented are not eligible.

4. Parcels in excess of 10 acres are not eligible.

5. Renovated homes must be in the Cities of Fremont, Newaygo, White Cloud, Grant or Village of Hesperia.

6. Homes must be located within an area that CNH determines to be economically viable and stable, and has similar homes with similar property values.

7. CNH prioritizes selection of existing homes where renovations can make a positive community impact.

8. All purchase agreements must read, "This sale is contingent upon CNH Board and MSHDA approval."  A CNH representative will release this contingency in writing upon appropriate approvals.

Property Inspection

Once a buyer selects a property according to program procedures, a CNH representative will make a preliminary inspection of the identified property to determine if the property can be brought up to HUD minimal housing quality standards (HQS) within program spending parameters.  A second inspection will then be completed by a licensed builder inspector on behalf of CNH.  All assisted developments will meet HQS:  however, all reasonable attempts will be made to meet the Michigan Rehabilitation Code subject to funding availability.  CNH has the legal right to refuse any property being assisted with agency funds to ensure compliance with agency property standards.  This is accomplished by requiring the following language in each purchase agreement.  "This sale is contingent upon CNH Board and MSHDA approval.  The CNH Board and MSHDA makes all final decisions regarding assistance for a particular property, renovation details, and any other assistance provided on behalf of CNH.  CNH staff will then prepare a Property Profile form to the CNH Board of Directors.

Renovations to Existing Homes

a.  Renovation Specifications - CNH inspectors determine what renovations are needed to bring the residential property to HUD minimal housing quality standards (HQS) and Michigan Rehabilitation Code within budget guidelines.  Renovations generally include basic home systems such as heating, electrical, plumbing, roof, windows, floor coverings, lead based paint remediation, and general safety.  CNH specifies the renovations to be done and reviews this list with the homebuyer.  Renovation specifications are then mailed to CNH approved contractors seeking bid proposals.  Contractor selection is typically made based on most responsive and responsible bid and expected completion date.

b.  Renovation Contract  - Homeowners are required to sign a CNH Renovation Contract with the contractor they choose from the bids received.

c.  CNH Homebuyer Subsidy/Second Mortgage - A homebuyer subsidy (2nd Mortgage) is recorded at time of closing up to $20,000 repayable to MSHDA upon future resale. The amount of the lien is the difference between the post rehab appraisal and the buyer's mortgage amount.

Additions to Existing Homes

1. CNH can build additions costing up to approximately $20,000 using local contractors and the same process described in the "Renovations to Existing Homes" section above.

2. Additions are approved by the CNH Board on a case-by-case basis.

3. A clear need for the addition must be demonstrated by the family choosing the home.

4. CNH and MSHDA make all final approvals on design, materials, and contractors with buyer input.

5. Renovated homes with additions must be in the Cities of Fremont, Newaygo, White Cloud, Grant or Village of Hesperia.

6. Additions will be constructed after the buyer purchases the home.

7. A homebuyer subsidy (2nd Mortgage) is recorded at time of closing up to $20,000 repayable to MSHDA upon future resale.  The amount of the lien is the difference between the post rehab appraisal and the buyers' mortgage amount.

New Construction

1. CNH designs and builds homes on a limited basis and sells them to qualified buyers with up to a $30,000 gap financing based on the financial need of the buyer.

2. A homebuyer subsidy (2nd Mortgage) is recorded at time of closing up to $30,000 repayable to MSHDA upon future resale.  The amount of the lien is the difference between the appraised value and the buyers mortgage amount.

3. Families in possession of land seeking CNH assistance must deed CNH the land and allow CNH to design and build their home.  CNH will enter into a purchase agreement for the sale of the home when land is deeded to CNH.

4. Buyers must be pre-qualified for a mortgage at time a purchase agreement is signed.

5. New homes must be in the Cities of Fremont, Newaygo, White Cloud, Grant and Village of Hesperia.

6. CNH and MSHDA make all final approvals on design, materials, and contractors with buyer input.

HQS Final Inspection

A final inspection is made after renovations are completed by a CNH representative for the purpose of ensuring the property meets HUD minimum housing quality standards (HQS).  An HQS report is completed and submitted to MSHDA as part of their required Project Completion Report packet.  Only a CNH representative who has received proper MSHDA training for HQS Inspections can complete the inspection and the HQS form.

Project Checklist

CNH staff will utilize a checklist for each project showing the tasks to be completed, who completed them and when they are completed.  A copy of this checklist will be kept in each project tile.  Staff will initial each task they complete or identify the party that completed the task (eg realtor, lender, etc.).

CNH Board Approval

CNH staff will submit a Family Profile, Applicant Purchase Budget, Property Profile and Project Budget to the CNH Board of Directors for final approval.