HARTFORD HOUSING AUTHORITY
CHARTER OAK TERRACE PURCHASE AGREEMENT (6/2/98)
Under the 5 (h) Plan
Through the Campus of Learners Concept
NOTE: Title to the Home and Lot to be purchased hereunder will be subject to (1) a first option to purchase by HHA at a market price and (2) a requirement that will require You to share with HHA one-half of any profit from a sale of the Home and Lot during the first three years after your purchase and at a market price after that time.
AGREEMENT made this ____ day of ____________, 199_, by and between _________________________ _______________________________________ [ Social Security #] _____________________________ of _______________________________________ ("You"), and the HOUSING AUTHORITY OF THE CITY OF HARTFORD, a public body corporate and politic of the City of Hartford, organized and existing under Chapter 128 of the General Statutes of the State of Connecticut, with offices at 475 Flatbush Avenue, Hartford, Connecticut 06106 (hereinafter, "HHA").
1. DESCRIPTION. You hereby agree to purchase the residential structure and all improvements serving the residential structure, whether underground or aboveground, and not owned by the Metropolitan District, the City of Hartford or a public utility company together with all fixtures, including plumbing and electrical fixtures, and kitchen appliances (if any) (collectively, the "Home") along with the land underlying and adjoining the Home as shown on Exhibit A attached hereto (the "Lot"), known as [Lot #]____________[Street Address] ______ _______________________, Hartford, Connecticut.
2. PURCHASE PRICE. The total purchase price for the Home and Lot is $_________ (the "Purchase Price"). You shall pay the total purchase Price to HHA in the following manner:
(a) $_____ upon execution of this Agreement, receipt of which is hereby acknowledged (the "Deposit");
(b) the amount which is the sum of (1) a reasonable amount of your personal savings as a down payment (which reasonable amount of savings will be determined by HHA in its reasonable discretion and consistent with the requirements of your first mortgage commitment) and (2) the proceeds of the mortgage for which You have obtained a commitment pursuant to paragraph 3, by bank or certified check on the date of closing of title, as hereinafter set forth; and
(c) if (and only if) You qualify for a second mortgage by being a low or very low income household by executing a second mortgage note and deed in favor of HHA in the amount of the difference between the Purchase Price and the amount of the mortgage proceeds of the first mortgage. The second mortgage note will not provide for periodic installments of principal and interest, but will become due and payable if You transfer the Home and Lot to a person who is not eligible to assume the mortgage, if You default under the covenants regarding use and occupancy of the Home and Lot contained in your deed or if You default under Your first mortgage, or if You put a new mortgage on the Home and Lot that is not permitted by HHA.
3. MORTGAGE CONTINGENCY. This Agreement is contingent upon You being able to secure a first mortgage from a bank or mortgage company licensed by the State of Connecticut in an amount of not less than the greater of (a) $20,000.00 or (b) the largest mortgage You can afford, subject to the conditions that You not spend more than 35% of your adjusted gross income on monthly housing expenses, the mortgage provides for amortization of principal over thirty years and the annual percentage rate (APR) for the mortgage is not, in HHA’s reasonable opinion, significantly higher than is generally available from banks in the Hartford area. This shall be determined by using a monthly housing expense test under which mortgage interest and principal, property taxes, private mortgage insurance and homeowners’ insurance [including fire, casualty and liability coverages] and utility charges [including gas, water, and electric charges] shall be included in determining monthly housing expenses. If You have been unable to obtain a mortgage commitment by ___________ __, 199_, we will notify You that this Agreement has been terminated and we will return the Deposit to You. TIME IS OF THE ESSENCE WITH REGARD TO THIS PROVISION. You will provide HHA copies of all applications, tax returns, pay stubs and other letters and papers You give to or receive from your mortgage lender.
4. QUALIFICATIONS OF BUYER. You and HHA acknowledge and agree that pursuant to certain restrictions to which the Home and Lot are subject, the property can only be sold to "low or very low" income households, and if You do not qualify at the time the closing is to take place, HHA shall have the right and option to terminate this Agreement and HHA shall refund the Deposit to You.
5. CLOSING. The closing will take place on or before _________ __, 199_ at the offices of Your lender or at such other place acceptable to HHA.
6. USE AND RESALE RESTRICTION. The Home and Lot is limited to use and occupancy only for residential purposes and such incidental activities related to residential use as are permitted by the Hartford Zoning Ordinance as amended from time to time. THE DEED OF THE HOME TO YOU AND THE SECOND MORTGAGE BETWEEN YOU AND HHA WILL CONTAIN PROVISIONS THAT WILL APPLY IN THE EVENT OF A RESALE OF THE UNIT, WHICH PROVISIONS WILL REQUIRE THAT THE HOME CAN ONLY BE SOLD IF IT IS FIRST OFFERED FOR SALE TO HHA AND THAT, DURING THE FIRST THREE YEARS AFTER YOU BUY THE HOME YOU MUST PAY ONE-HALF OF ANY PROFIT TO HHA. IN ADDITION, YOU WILL NOT BE ABLE TO RETAIN ANY PART OF THE SALE PRICE OF THE UNIT UNLESS AND UNTIL THE SECOND MORTGAGE TO HHA DESCRIBED IN SECTION 4.b. HAS BEEN PAID IN FULL.
7. TITLE. Title to the Home and Lot will be conveyed by a Quit Claim Deed, subject only to current taxes, and subject to (i) all terms, conditions, restrictions, agreements, obligations, easements and rights set forth in the Deed; (ii) HHA’s option to purchase pursuant thereto; (iii) restrictions regarding resale of the Home and Lot, and (iv) current municipal ordinances and laws, none of which, however, will either render the title uninsurable or be violated by occupancy of the Home or use of the Lot for the purposes set forth herein and in the Deed.
8.ADJUSTMENTS. The Purchase Price will be adjusted at Closing for real estate taxes and municipal assessments, as well as other items normally adjusted between sellers and buyers of real property in accordance with the procedure normally followed by the Hartford County Bar Association.
9. ASSIGNMENT. This Agreement is not assignable by You.
10. CONDITION OF HOME AND LOT, INSPECTION. Except to the extent required by the New Home Warranty Act, Chapter 827 of the Connecticut General Statutes:
You agree to accept the Home and Lot in its condition "as is." HHA agrees to convey the Home and Lot to You in the same physical condition as of the signing of this Agreement, normal wear and tear excepted. You acknowledge that You have had the opportunity to make a full and complete inspection of the Home and Lot, as to the extent desired by You. You waive any right to object to any defect in the Home and Lot. You shall not conduct additional inspections of the Home and Lot unless accompanied by a representative of HHA. You acknowledge and agree that You have received a Disclosure of Environmental Conditions, attached hereto as Exhibit B, and accept the Home and Lot in its "as is" condition with regard to such conditions and without recourse to HHA.
11. WARRANTIES. HHA AND YOU AGREE THAT HHA DISCLAIMS ANY AND ALL WARRANTIES AVAILABLE TO YOU EXCEPT THOSE REQUIRED BY THE HOME WARRANTY STATUTE OR OTHERWISE MANDATED BY LAW. If there are unexpired, assignable manufacturers’ warranties on appliances or other items included in the sale of the Home, HHA will assign its warranty rights to You.
12. DEFAULT BY BUYER. In the event You fail to perform any of the agreements, obligations and covenants under this Agreement within the time period indicated, You shall be in default under this Agreement and HHA may keep the Deposit paid hereunder by You as liquidated and agreed upon damages arising from such default which shall not be construed as a penalty or forfeiture, but as consideration for the release of You by HHA from any and all further obligations under this Agreement to HHA, and HHA shall thereupon be automatically released and relieved of any and all of its obligations, covenants and agreements hereunder and this Agreement shall be deemed terminated.
13. DEFAULT BY SELLER. In the event of default by HHA, and upon the return of the Deposit to You, this Agreement will be terminated. In addition, HHA agrees to pay You the sum of $100.00 as liquidated and agreed upon damages arising from such default which shall not be construed as a penalty or forfeiture, but as consideration for the release of HHA by You from any and all further obligations under this contract to You, and You shall thereupon be automatically released and relieved of any and all of your obligations, covenants and agreements hereunder and this Agreement shall be deemed terminated.
14. BROKER OR AGENT. You represent that You have not dealt with any real estate broker or agent, other than officers or employees of HHA in connection with the purchase of the Home and the Lot. You agree to hold HHA harmless from any claims for fees or commissions due any real estate broker or agent, based on claims made through You. YOU AGREE THAT YOU HAVE HAD THE OPPORTUNITY TO RECEIVE FREE HOME OWNERSHIP COUNSELING FROM NON-PROFIT GROUPS NOT CONNECTED TO HHA. YOU DO NOT NEED TO USE A REAL ESTATE BROKER OR AGENT OR TO PAY ANY FEE TO ANYONE FOR ADVICE CONCERNING THE PURCHASE OF THE HOME.
`5. DEFINITION OF LOW OR VERY LOW INCOME HOUSEHOLDS."Low or Very Low Income Households" shall be defined as households that have gross family income at or below the United States Department of Housing and Urban Development ("HUD") income guidelines by family size, which are promulgated on a county basis and adjusted from time to time by HUD. If the HUD guidelines discussed in this section are no longer available, holder, in conjunction with HUD will determine another appropriate index to satisfy the intent of this section.
16. ONLY AGREEMENT. This Agreement is binding upon the parties hereto and their heirs, successors and assigns and may not be assigned by You. THIS AGREEMENT SUPERSEDES ANY AND ALL PRIOR UNDERSTANDINGS AND AGREEMENTS OF ANY KIND BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF (EXCEPTING, HOWEVER, ANY SEPARATE RENTAL AGREEMENT FOR THE HOME) AND IT IS MUTUALLY UNDERSTOOD AND AGREED THAT THE TERMS HEREOF CONSTITUTE THE ENTIRE AGREEMENT BETWEEN THE PARTIES AND THAT NO VERBAL STATEMENTS MADE BY ANYONE WITH REGARD TO THE TRANSACTION WHICH IS THE SUBJECT OF THIS AGREEMENT WILL BE CONSTRUED AS A PART THEREOF, UNLESS THE SAME IS INCORPORATED HEREIN IN WRITING. HHA IS NOT AND WILL NOT BE BOUND BY ANY STIPULATIONS, REPRESENTATIONS, AGREEMENT OR PROMISES, ORAL OR OTHERWISE, NOT PRINTED OR INSERTED IN THIS AGREEMENT. THIS AGREEMENT MAY NOT BE CHANGED OR TERMINATED ORALLY.
YOU RECOGNIZE THE SPECIAL NATURE OF THE TERMS AND CONDITIONS OF THIS AGREEMENT AND, WITH THE INDEPENDENT ADVICE OF LEGAL COUNSEL, FREELY ACCEPT SAID TERMS AND CONDITIONS, INCLUDING, WITHOUT LIMITATION, SUCH TERMS AND CONDITIONS AS MIGHT AFFECT THE MARKETABILITY OR RESALE PRICE OF THE HOME.
17. Each Counterpart an Original. You and we may execute this Agreement in two or more counterparts, each of which shall be deemed an original.
HOUSING AUTHORITY OF
THE CITY OF HARTFORD