The Homesteading Program, a collaborative effort between the Bureau of Building Standards & Safety (BBSS) and the Redevelopment Authority (RACA), is designed to offer homeownership opportunities for qualifying households earning up to 120% of the area median income, particularly those households who face hurdles to obtaining conventional financing.
In addition, the program also encourages the productive reuse of blighted and abandoned properties passing through the Redevelopment Authority’s inventory and, where buildings were converted into multiple units, the de-densification of center city neighborhoods and an increase in homeownership in these areas through the deconversion of buildings back into single-family homes.
Homes are sold at rehabilitation cost plus fees as Contract for Deed, or sold as purchase money with homeowners individual financing to qualifying families (see guidelines below)
1. Potential homesteader expresses an interest in a property made available to the Homesteading Program by RACA.
2. BBSS determines the rehabilitation needs of each property made available to the Homesteading Program.
3. BBSS and KNBT (through the bank’s New Horizon Program) work to pre-approve households for participation in the program and determine how much each potential homesteader is eligible to borrow.
4. BBSS coordinates tours of available properties with rehabilitation costs within the potential homesteader’s budget.
5. When a household identifies the home they wish to purchase, BBSS finalizes the pre specification sheet with customer input.
6. This detailed specification sheet is submitted to RACA for approval.
7. Once approved, homesteaders receive final loan approval and sign loan documents.
8. Rehabilitation work, overseen by a BBSS Rehabilitation Specialist, begins.