Family Selection Criteria

First:  Demonstration of need.  This includes income at or below 50% of median for the county in which the house is to be built.  The following table shows the income limits for the Norwood Pine Street Gardens project, which is in San Miguel County.  This table is based on the U.S. Department of Housing and Urban Development 2010 Adjusted Home Income Limits:

San Miguel County:

Other criteria for selection under this category include living in substandard housing, either overcrowded, lacking a bathroom or kitchen, or paying too much rent.

Second:  Ability to Pay.  Currently, the purchase price of HFHTR homes is $136,000.  This includes a $1,000 down payment from the family, a $10,000 down payment assistance loan from the Federal Home Loan Bank, which does not have to be repaid if the family owns the house for at least 5 years, and a $125,000 mortgage from the USDA Rural Development Office.  HFHTR requires that the family qualify for a USDA Rural Development 502 Direct Loan. HFHTR will make a preliminary determination of the family’s ability to qualify for this loan.  The family will not be required to pay more than 24% of their adjusted monthly gross income (gross annual income less $480 per child and child care expenses divided by twelve)  The family must produce financial information showing sufficient income and HFHTR will obtain credit reports to determine that the family is not overburdened with debt.

Third:  Willingness to Partner.  Each family selected must agree to work a minimum of 200 hours for each family member over 18.  Of these hours at least 100 must be on the family’s own house, and no more than 30% of the hours can be performed by anyone other than the family members.

Fourth:  Work or Residency.  The family must have resided in the HFHTR service area, which includes San Miguel and Ouray Counties and the Rico Growth Area of Dolores County, for a minimum of one year prior to submitting an application or at least one family member must have worked in the service area for at least one year prior to submitting an application.