Ø      The SHOP Program will be targeting properties throughout the City of Schenectady. SHOP will be purchasing single-family homes that are in need of rehabilitation. .   

Ø      After rehabilitation, SHOP will sell the homes to eligible applicants at a reduced cost.  The goal of the program is to reduce the overall cost by about $20,000 per property.  The program has the discretion to reduce and/or increase the price based on actual costs for acquisition and rehabilitation.

Ø      Once SHOP takes title to a home, lead paint and asbestos testing and abatement will be done.  Then, a specification for the rehabilitation will be put out to bid.  Once the bid is awarded to a contractor, it is assumed that the rehabilitation will be completed within 90 days.

Ø      During the rehabilitation process, eligible applicants will be shown the homes.  Once a property is selected, a closing will be scheduled to transfer title to the new homeowner.

Ø      New homeowners will sign promissory notes and liens for the grant subsidy to acquire and rehabilitate the property.  The liens will not require any re-payment provided the purchaser resides in the home for 15 years.  There will be a pro-rated recapture of the grant subsidy if the homeowner stays less than 15 years.

Ø      Once a home is sold, the funds will be used to purchase and rehabilitate more homes. 

Ø      Applicants must be first- time homebuyers as defined by HUD.

Ø      Family gross income must be under 80% of Area Median Income