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All buildings that
NHS develops in partnership with HPD are
sold through an HPD mandated and
supervised lottery system. The purpose
of the lottery is to ensure a fair and
random process by which applications are
reviewed and the buildings are offered
to buyers for sale.
There is no fee of
any kind (application fee, brokers fee,
etc.) required in order to submit an
application for entry into the lottery.
Residents of community boards where the
project is located receive preference
for 50% of the buildings; in addition,
some programs have a preference for
uniformed members of the NYPD. Most
programs require that the owner reside
in the building; in the case of a
building with commercial space, this
requirement can sometimes be fulfilled
by operating a business in the building.
All potential buyers must have the
financial capacity to purchase a
property, as demonstrated by the ability
to obtain the necessary financing, and
must also meet the parameters of the
individual program.
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Notice of the
sale of properties through the
lottery system is announced
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Interested
potential buyers request an
application by mail
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The completed
application must then be postmarked
by a published deadline date and
sent to a post office box
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NHS and HPD
collect all the applications from
the post office box after the
deadline has passed and randomly
assign each a log number (i.e. first
application selected is number 1)
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Applicants are
contacted by NHS in numerical order
starting with number 1 and are then
required to provide documentation of
their finances (this includes proof
of employment, tax returns, etc.)
Buyers may choose to work with a
lender that NHS has established a
relationship with or may use their
own lending institution
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Qualified buyers
are offered properties according to
their number in the review process.
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Applicants
continue to be contacted and
reviewed until all the properties
are sold, or the applicant pool is
exhausted.
NOTE - typically we
receive 25 or more applications for each
property for sale
Notice of pending
lottery and sale is advertised in three
newspapers, including one citywide paper
(usually The Daily News) and two other
smaller local papers. The opening of a
lottery is also announced on the HPD
website. The advertisement includes: a
list of the properties to be sold,
number of units in each property, a
price range, how to request an
application, the deadline for the
completed applications and any other
buyer requirements (such as income
limits, if applicable). At least two
seminars open to the public are held in
the borough where the properties are
located to explain the project and the
pending sale. Local politicians, city
council members and local community
groups are advised of the lottery and
sale. The NHS website will also include
information about lotteries and sales.
Interested buyers
must send a self-addressed business-size
(#10) envelope to the address listed in
the ad in order to receive an
application. Applications may not be
picked up in person.
Completed
applications must be postmarked by the
deadline published in the notice of
sale. Applications postmarked after the
deadline will be reviewed only after all
on-time applications are exhausted.
NHS and HPD collect
all the applications from the post
office after the application deadline
has passed. The sealed applications are
placed in a bag, mixed, and randomly
drawn (checking the postmark to ensure
the deadline was met). Applications are
logged with a number (first out of the
bag is number 1, second is number 2, and
so on) and community board residents
and/or uniformed NYPD (if applicable)
are noted.
Applicants are
contacted in numerical order based on
their log number. Applicants are
requested to provide, within a
prescribed timeframe, information
regarding income, employment, funds
available for down payment, etc. A small
fee is required in order to obtain a
credit report. This information is
reviewed to determine whether an
applicant has the financial resources to
purchase a home. A loan
pre-qualification in an amount
sufficient to enable the applicant to
purchase a building is then obtained
from a lender NHS is working with or a
lender chosen by the applicant.
Applicants who do not provide the
requested data in the time allotted or
who are unable to qualify for a loan
lose their place in the lottery.
Applicants who
qualify are offered properties based on
their log numbers and have a prescribed
timeframe to sign a contract of sale for
an available property. Not responding in
the prescribed timeframe will result in
the loss of your lottery spot.
Can I apply more than once?
No, only one
application per household is accepted.
Submission of multiple applications will
result in disqualification. However, you
may apply to as many lotteries as you
like.
What is community preference?
Preference is given
for 50% of the homes to current
residents of the community board
district where the buildings are
located. All community applicants must
meet the program requirements to be
eligible and be selected by lottery.
Will I be notified?
All successful
applicants (i.e. met the deadline and
did not apply twice) will be notified of
their log number.
For more information,
contact the NHS office nearest you
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