FY25 NCPA Application Final 9.25.24.pdfCommunity Preservation Project Application Cover Sheet
I: Project Information
Project Title:
Project Summary: Please provide a brief description of the project.
Estimated start date: Estimated completion date:
CPA Program Area (check those that apply):
Open Space Historic Preservation Community Housing Recreation
II: Applicant/Developer Information
Contact Person and or/primary applicant:
Property Owner and Address, if applicable:
Organization (if applicable):
Mailing Address:
Daytime phone #: Fax #:
E-mail address & Website:
III: Budget Summary
Total project budget: $ CPA request: $ % of budget:
Applicant’s Signature:__________________________________ Date Submitted:___________9/25/2024
*The request includes $200,000 in direct assistance and 100% of the single project budget is being
asked for. Other projects within Valley's Homeownership Program are funded through other sources.
REQUIREMENTS FOR SUBMISSION
The following requirements should be followed in preparing an application for CPA
funding.
•Project funding applications must be for funding within a 3-year completionperiod, the length of time for which the City can enter into contracts.
•If submitting multiple applications, a priority ranking of the projects should beindicated.
•An application for support of a project that requires preservation guaranteesshould specifically address how such a guarantee has been or is proposed to be
accomplished (Appendix D)
•Applicants should include itemized project budgets, with details describing eachitem and its estimated cost. If an application is approved for funding, budgetssubmitted with applications will be considered final project budgets, and anydeviation other than small, routine reprogramming, will require approval by theCommittee prior to approval of invoices.
•Applicants should obtain three professionally prepared quotes for project costs
whenever possible. If such quotes are not available, detailed cost estimates may
be used provided the basis of the estimates is fully explained.
•If the funding application is part of a larger project, the applicant should includethe total project cost.
•If the applicant is not the property owner, permission to apply must be included.
For grant requests that are intended to fund particular areas of activity (affordable housing, acquisition of open spaces, etc.) but NOT specific programs – hereafter known as “Undesignated Fund Grants” – the following reporting requirements are a condition of the CPC’s approval of the grant request:
•Grantees shall provide an itemized accounting of all expenditures made underthe Grant once each funding round and when all funds are expended, to includethe total amount of funds expended to date and the remaining balance, plus any
information on whether the remaining funds are “pending” (i.e., conceptually
allocated to a project, but for which expenditures have not yet been made);
•This accounting will include the name of the program, a brief description, the totalamount expended on the program, and a general breakdown of these
expenditures;
•Any subsequent Undesignated Funding application submitted to the CPC forreview which has been funded in a prior round shall include the budget report forprevious expenditures (including the amount and activities funded) as part of theproject application;
Application & Project Review Information
•Applications for projects that included use of Undesignated Funds prior to theCPA request should note the fund, amount utilized and uses in the application.
APPLICATION INSTRUCTIONS
1.Please read the entire CPA Application & Review Process before beginning.
2.Complete the Application Cover Sheet.
3. Include the following information:
4.Narrative: A description of the project and, when applicable, of the propertyinvolved and its proposed use. Include responses to the following questions:
5.Project location, including address and parcel number
6.What Community Preservation criteria – both general and program-area specific
– does this project meet?
7.What community need(s) does this project serve? If the project servesmultiple needs and populations, please describe them. If the project serves apopulation that is currently underserved, please describe.
8.What specific guarantees will assure the long-term preservation of the project?
9.What community support does the project have? Explain the nature and level of
the support.
10. How will the success of this project be measured?
11. Is ongoing maintenance and upkeep required? If yes, please explain how thiswill be accomplished.
12. Project Budget: The total budget for this project, including specifically how CPAfunds will be spent. All items of expenditure must be clearly identified. Includeproject quotes, or show why this is not appropriate or feasible. List anyadditional funding sources, either committed or under consideration. Explain indetail financial need for the project and for CPA funding specifically. Include
commitment letters if available.
13. * If the application submission is for a community housing project, please submita development budget and a sources and uses budget. Also, communityhousing home ownership projects shall include an affordability analysis, andcommunity housing rental projects shall include a five-year operating budget.
14. Multi-Year Funding: If the project is expected to continue over more than oneyear, or if bonding the project is anticipated, please provide annual fundingrequirements.
15. Project Timeline: Explain the various steps of the project and when they will be
completed.
16. Feasibility: List and explain all further actions or steps that will be required forcompletion of the project, such as environmental assessments, zoning or otherpermits and approvals, agreement on terms of any required conservation,affordability or historic preservation agreements, subordination agreements, and
any known or potential barriers or impediments to project implementation.
17. If the project is for open space acquisition, a CR or APR is required. A third partyholder of the CR or APR must be identified.
18. Maps: USGS topographical map, assessors map, or other map as appropriate,
showing location of the project.
19. Visual materials: Photographs, renderings or design plans of the site, building,
structure or other subject for which the application is made.
20. Page numbers: please number all of the pages in the application.
21. Include the following attachments, if applicable and available:
22. Record plans of the land
o Natural resource limitations (wetlands, flood plain, etc.)
o Zoning (district, dimensional and use regulations as applies to theland)
o Inspection reports
o 21E Reports and other environmental assessment reports
o Mass. Historic Commission Historic inventory sheet
o Historic structure report or existing condition reports
o Existing conditions report
o Names and addresses of project architects, contractors, andconsultants
o Evidence that appropriate professional standards will be followed if
construction, restoration or rehabilitation is proposed
o Documentation that you have control over the site, such asPurchase and Sale agreement, option, or deed; or explanation ofhow the proposed project will proceed in the absence of sitecontrol.
o Evidence that the proposed site is free of hazardous materials orthat there is a plan for assessment and/or remediation in place
o Letters of support sufficient to document clear endorsement bycommunity members and groups, and, where appropriate, by
municipal boards and departments. In particular, projects should
receive the support of applicable boards and commissions for their
Application & Project Review Information
applications, (Conservation Commission or Agricultural Commission for open space projects, Housing Partnership for community housing projects, Recreation Commission for recreation projects, and the Historical Commission for historic preservation
projects).
o Any other information useful for the Committee in considering theproject
Valley Community Development
Mortgage Subsidy Program
January 1, 2025-June 30, 2026
18 Month Contract Period
Nton CPA
Project
Request
Personnel:
Program Director (.01 FTE) supervision 1,380$
Homeownership Program Manager (.2 FTE)23,400$
Homeownership Program Assistant (.1 FTE)7,700$
Fringe (23%)7,470$
Subtotal Personnel 39,950$
Other Expenses:
Marketing (Advertising/Printing)750$
Travel/Transportation 250$
Lead Testing 2,500$
Indirect/overhead (31%) (rent, IT, utilities, phone, finance, insurance)10,070$
Total Other Expenses 13,570$
Total Expenses
Mortgagae Subdisy Costs $50,000 x 4 200,000$
Total Program Expenses 253,520$
*Other funding sources to support additional project within Valley's
Homeownership Program include: Division of Banks, MHP, CITC, Banks,
HMLP, Private Donations and Other
September 24, 2024
To Whom It May Concern,
I am writing to express my full support for Valley Community Development's application for
City of Northampton Community Preservation Act (CPA) Program Funding. As a recipient of
CPA funds through Valley, I can personally attest to the significant positive impact these funds
have had on my life.
With the assistance of CPA funds, I was able to purchase a home in Northampton, which
otherwise would have been out of reach. This opportunity has provided me with stability and a
sense of community, for which I am truly grateful.
Beyond the financial help, securing a home has brought many other benefits. I was able to leave
an abusive situation and feel safe under my roof for the first time in years. I’m able to cope better
with my disability and live in close proximity to my job and my support system. This funding
has given me space to heal so that I can continue to do my job, helping to empower low-income
women through teaching the humanities.
I wholeheartedly support Valley Community Development's request for additional CPA funding.
It will continue to make a meaningful difference in the lives of people like me. Thank you for
considering this important funding request.
Sincerely,
Léa Donnan
September 24,2024
To Whom It May Concern,
I am writing to share why Valley Community Development is fully qualified to continue its work in
supporting new home ownership with the assistance of City of Northampton Community
Preservation Act (CPA)funding.
I received this funding through Valley in March 2023.The entire process was overwhelming,and
I felt defeated at times.I felt this way until I met Valley CDC staff member,Donna Cabana.
Donna understood the reality of the economic jump I was making as a single parent moving into
a home from low-income housing.Donna did not sugarcoat the reality of home ownership.This
was a breath of fresh air,someone who understood that entering the world of homeownership
for income-eligible populations is a culture shock.Donna emphasized needs vs.wants,
timelines,and resources.One of these resources was the CPA program funding.Donna walked
me through every step of the CPA application.
Northampton is a unique town in that there are drastic socioeconomic differences.Often,
income-eligible populations will never be afforded homeownership because the homes are too
expensive.Many childhood friends have left this town in pursuit of homeownership in more
affordable neighboring counties.However,this resource affords people like me a chance.
Instead of moving out of my hometown,I was able to stay close to my support system,my son
and daughter were able to continue to go to their schools,and I was able to purchase a home.
One of the main reasons I wanted to stay in Northampton was the schooling system,allowing
my children to attend schools that streamline to higher education is imperative to their success.
Our home has become a hub for neighborhood friends,family gatherings,and peace.With the
support of Valley CDC and the CPA funds,I have been able to provide stability for my children.
Northampton needs more families like mine to stay.Northampton needs resources for
income-eligible populations.Valley CDC’s commitment to diversity,equity,and inclusion makes
it a perfect organization to continue supporting families purchasing homes in our communities.
They are professional,knowledgeable and aware of the barriers,mental and physical,
income-eligible families face on a daily basis.Without this funding,I would not have been able
to purchase my home,and without the support of Valley staff,I would not have had the courage
to do it.
Warmly,
Emily Laufer
September 24,2024
To Whom It May Concern,
I am writing to express my full support for Valley Community Development in their
application for City of Northampton Community Preservation Act (CPA) Program
Funding. As a recipient of CPA funds through Valley, I can personally attest to the
significant positive impact these have had on my family.
With the assistance of CPA funds, I was able to purchase a home in Northampton, which
otherwise would have been out of reach for me and my family. This opportunity has
provided us with stability and a sense of community for which we are truly grateful.
My son is autistic, and if we hadn't gotten a house in Northampton, we would have had to
change schools and try to find new friends, which would have had a bad impact on him. But
now my son can stay at the same school as his friends. My dog Loulou is the happiest I have
seen her; she has a big backyard to run around in. We had never even dreamed about
having a home in Northampton if it wasn't for Valley Community Development.
I wholeheartedly support Valley Community Development's request for additional CPA
funding. It will continue to make a meaningful difference in the lives of individuals and
families like mine. Thank you for considering this important funding request.
Sincerely,
Carlos Oliva
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City of Northampton Mortgage Subsidy Affordable Housing Program
PROMISSORY NOTE
$50,000.00 December 1, 2024
For Value Received, ___________(the “Maker”), having an address of 123 Main St.
Northampton MA does hereby promise to pay to the order of the City of Northampton, a Massachusetts municipal corporation (or its designee, the “Holder”), having an address of 210 Main Street, Northampton, Massachusetts 01060, the principal sum of Fifty Thousand Dollars and 00/100 Dollars ($50,000.00) (the “Loan”), with 1% simple interest of $500.00 per year, thereon, except as set forth herein.
The indebtedness evidenced by this Note is secured by a Mortgage and Security Agreement (the “Mortgage”), of even date herewith, on property located and known as Street, Northampton,
Hampshire County, Massachusetts and described in a deed recorded with the Hampshire
Registry of Deeds in Book _____, Page ____(the “Property”), and reference is made to the Mortgage for rights as to acceleration of the indebtedness evidenced by this Note.
All principal, interest and other payments due under this Note shall be payable on the last day of
the 30th year following the date of this Note, which is December 2, 2052 (the “Maturity Date”).
Except in the event of any default of the Maker, no payments of principal, interest, or other amounts due under this Note shall be due by the Maker to the Holder before the Maturity Date. Notwithstanding the foregoing, amount of the Loan that shall be forgiven beginning in year 16 for each year that the Maker remains in compliance with the terms of this Note, the Mortgage,
the Northampton Mortgage Subsidy Affordable Housing Program Guidelines (the “Guidelines”),
and/or terms of any other agreement entered into by Borrower and Lender (collectively, the “Governing Documents”) Repayment is as follows: After
Year: Amount Due:
1 $50,500
2 $51,000
3 $51,500
4 $52,000
5 $52,500
6 $53,000
7 $53,500
8 $54,000
9 $54,500
10 $55,000
11 $55,500
12 $56,000
13 $56,500
14 $57,000
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15 $57,500 ** years 1-15 - The full $50,000 is due plus 1% simple interest of $500 a year, $7,500 total
interest
** years 16-30 - $3333.33 forgiven for each full year - 1% simple interest of $7,500 is not
forgiven
After year: Amount Due:
16 $54,166.67 17 $50,833.34 18 $47,500.01 19 $44,166.68 20 $40,833.35 21 $37,500.02 22 $34,166.69 23 $30,833.36 24 $27,500.03 25 $24,166.70 26 $20,833.37 27 $17,500.04 28 $14,166.71 29 $10,833.38 30 $7,500.00 It shall be a default under this Note if, prior to the Maturity Date, (1) the Maker does not use the Loan for the purpose of purchasing the Property, (2) the Maker does not use the Property as the
Maker’s primary residence, (3) the Maker sells or otherwise transfers the Property, or any part thereof, without the prior written consent of the Holder; (2) the Maker grants any mortgages on the Property (other than the Mortgage) or any part thereof, or refinances any mortgage, or places a new mortgages or any other encumbrance on the Property, without the prior written consent of
Holder; (3) the Maker defaults on any of its obligations under the Governing Documents; (4) the
Maker fails to perform any covenant, agreement, term or condition in the Senior Mortgage (defined in the Mortgage) and any other lien upon the Property, or any part thereof, which has or shall have priority over the lien of this Mortgage (notwithstanding the foregoing, the Maker shall not modify, amend, or extend such Senior Mortgage, or the debt or any obligation secured
thereby, without obtaining the Holder’s prior written consent); or (5) the Maker has made any
material misrepresentation to the Holder. Notwithstanding any other provisions of this Note, in the event the Maker is not in default under the Note or the Mortgage on the Maturity Date, and provided the Note and Mortgage remained in
effect for its entire term of Thirty (30) years, all principal, interest (if any) and any other
payments due hereunder shall be forgiven. In the event of any default described above, interest at the rate of 5% per annum shall accrue on the outstanding principal balance, and, at the option of the Holder, all outstanding principal and any accrued, unpaid interest shall then become immediately due and payable, without notice or
demand by the Maker.
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The rights and remedies of the Holder as provided in this Note and the Mortgage shall be
cumulative and concurrent, and may be pursued singly, successively, or together, against the
Maker, the Property described in the Mortgage, and any other funds, property, or security held by the Maker. The failure to exercise any such right or remedy shall in no event be construed as a waiver or release by the Holder of said rights or remedies or the right to exercise them at a later time.
The Maker, endorsers, guarantors, sureties, accommodations parties hereof and all other persons liable or to become liable for all or any part of this indebtedness, jointly and severally, waive diligence, presentment, protest and demand, and also notice of protest and demand, of non-payment, of dishonor and of maturity and also recourse to suretyship defenses generally; and
also jointly and severally hereby consent to any and all renewals, extensions, or modifications of
the terms hereof or the release or the substitution of any security for the indebtedness evidenced hereby and any other indulgences shall not affect the liability of any of the said parties for the indebtedness evidenced by this Note.
The Maker, endorsers, guarantors, sureties, accommodations parties hereof and all other persons
liable or to become liable for all or any part of this indebtedness, agree, jointly or severally, to pay all costs of collection, including reasonable attorneys’ fees and all costs of the suit, in case the unpaid principal sum of this Note, or any payment of interest or principal and interest thereon is not paid when due, or in case it becomes necessary to protect the security for the indebtedness
evidenced herein, or for the foreclosure by the holder of the Mortgage, or in the event the Holder
is made a party to any litigation because of this Note, the Mortgage or related loan documents, whether suit be brought or not, through courts of original jurisdiction, as well as courts of appellate jurisdiction, or through a Bankruptcy Court or any other legal proceedings.
This Note may not be amended, modified, or changed, nor shall any waiver of any provision
hereof be effective except only by an instrument in writing and signed by the party against whom enforcement of any waiver, amendment, change, modification or discharge is sought. Whenever used herein, “Maker” and “Holder” shall be deemed to include their respective heirs, personal representatives, successors and assigns.
All notices to be given to the parties under this Note shall be given in writing at the addresses given above. This Note shall be construed according to and governed by the laws of the Commonwealth of
Massachusetts.
Include description of the property.
IN WITNESS WHEREOF, the Maker has executed this Note as a sealed instrument as of
this _______________ of ____________________, 2024.
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_____________________________ Buyer
____________________________________________ Buyer
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City OF Northampton Mortgage Subsidy Affordable Housing Program
MORTGAGE AND SECURITY AGREEMENT THIS MORTGAGE AND SECURITY AGREEMENT (this “Mortgage”) is made on this 1st. day of December 2024, by and between ________ (“Borrower”), having an address of
__________Northampton MA, and the City of Northampton, a Massachusetts municipal
corporation or its designee (“Lender”), having an address of 210 Main Street, Northampton, Massachusetts 01060. I. GRANTING CLAUSE
Borrower is indebted to Lender in the principal sum of $50,000 (the “Loan Amount”),
which Loan Amount shall be used to purchase the Property (defined below) (the “Loan”), which indebtedness is evidenced by Borrower’s Promissory Note of even date herewith (the “Note”), providing for repayment of the Loan Amount under certain conditions and providing for other conditions of the Loan.
To secure to Lender Borrower’s repayment obligations under the Note, and the performance of the covenants and agreements of Borrower contained in the Note, this Mortgage, the Northampton Mortgage Subsidy Affordable Housing Program Guidelines (the “Guidelines”), and/or terms of any other agreement entered into by Borrower and Lender, Borrower hereby
mortgages, grants and conveys to Lender, with MORTGAGE COVENANTS, upon
STATUTORY CONDITION and with the STATUTORY POWER OF SALE, on the property located at _____________ Florence, MA 01062, described in a deed recorded with the Hampshire Registry of Deeds in Book _______, Page ____ (the “Land”), and more particularly described in Exhibit A attached hereto;
TOGETHER with all the buildings and improvements now or hereafter erected on such Land, and all fixtures, easement, rights, licenses, appurtenances, and rents, all of which shall be deemed to be and remain a part of the property covered by this Mortgage; and all of the foregoing, together with said Land, are hereinafter referred to as the “Property.”
Borrower covenants that Borrower is lawfully seized of the estate hereby conveyed and has the right to mortgage, grant and convey the Property, and that the Property is free from any mortgages and other encumbrances except the first mortgage granted by Borrower to _________ (the “Senior Lender”) to secure the Loan Amount granted by the Senior Lender for the purchase
of the Property. Borrower warrants and covenants to defend generally the title to the Property
against all claims and demands, subject to encumbrances of record. II. COVENANTS
Borrower and Lender covenant and agree as follows:
1. Repayment. In the event that Borrower refinances, sells or transfers the Property or there is any other event of default (defined below) or the last day of the thirtieth (30th) year following the
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date of the Note, which is December 2, 2055 (the “Maturity Date”), Borrower shall repay to Lender the Loan Amount with interest, all as set forth in the Note.
The principal amount owing on the Note and all other charges, as therein provided, and all other amounts of money owing by the Borrower to the Lender pursuant to and secured by this Mortgage, shall immediately become due and payable without notice or demand upon the appointment of a receiver or liquidator, whether voluntary or involuntary, of the Borrower, or
upon the filing of a petition by or against the Borrower under the provisions of the Bankruptcy
Act of 1898, as amended, or upon the making by the Borrower of an assignment for the benefit of the Borrower’s creditors. The Lender is authorized to declare, at its option, all or any part of such indebtedness
immediately due and payable also upon the happening of any of the following events:
(a) Failure of Borrower to use the Loan Amount to purchase the Property; (b) Failure of Borrower to use the Property as Borrower’s primary residence;
(c) Nonperformance by Borrower of any covenant, agreement, term or condition of this Mortgage, the Note, the Guidelines, and/or any other agreement heretofore, herewith or hereafter made by Borrower with Lender;
(d) The sale or other transfer of any kind or nature of the Property, or any part thereof,
without the prior written consent of Lender, which consent may be withheld at Lender’s sole discretion; (e) The granting of any mortgages on the Property (other than this Mortgage) or any part
thereof, or refinancing any mortgage, or the placing of new mortgages or any other
encumbrance on the Property, without the prior written consent of Lender, which consent may be withheld at Lender’s sole discretion. Any mortgage granted on the Property by Borrower shall be subject to this Mortgage. Notwithstanding the foregoing, Lender may, at Borrower’s request and at Lender’s sole and absolute
discretion, agree to subordinate this Mortgage to a mortgage granted to the Senior
Lender to purchase the Property, as evidenced by a subordination agreement executed by Lender and recorded with the Registry of Deeds, which mortgage, if any, shall be referred to as the “Senior Mortgage”. Notwithstanding the foregoing, Borrower shall not refinance, increase the amount of, modify, amend, or extend such Senior
Mortgage or the debt or any obligation secured thereby without obtaining Lender’s
prior written consent; (f) Failure of Borrower to perform any covenant, agreement, term or condition in the Senior Mortgage (defined below) and any other lien upon the Property, or any part
thereof, which has or shall have priority over the lien of this Mortgage; and/or
(g) Lender’s discovery of Borrower’s failure in any application of Borrower to Lender to disclose any fact deemed by Lender to be material, or the making therein, or in any of the agreements entered into by Borrower with Lender (including, but not limited to,
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the Note and this Mortgage) of any material misrepresentation by, on behalf of, or for the benefit of Borrower.
Any event enumerated in this Section, upon the happening of any of which the Note shall become, or may be declared to be, immediately due and payable, are in this Mortgage called an “event of default.”
In the event the Property is refinanced, sold, or transferred, Borrower shall repay to
Lender an amount not to exceed the original $50,000 without interest. The Note, the Guidelines, and/or terms of any other agreement entered into by Borrower and Lender (collectively, are the “Governing Documents”).
1. Other Mortgages; Charges; Liens. Borrower shall perform all of Borrower’s
obligations under the Senior Mortgage (if any is allowed by Lender), including Borrower’s covenants to make payments when due. Borrower shall pay or cause to be paid all taxes, assessments and other charges and impositions attributable to the Property that may attain a priority over this Mortgage.
2. Hazard Insurance. Borrower shall keep improvements now existing or hereafter erected on the Property insured against loss by fire and other hazards included within the term “extended coverage.” All insurance thereof shall include a standard mortgage clause in favor of Lender and shall name Lender as loss payee and as an additional insured party. Lender shall
hold the policies and renewals thereof, subject to the terms of the Senior Mortgage (if any). In
the event of loss, Borrower shall give prompt notice to the insurance carrier and to Lender. Lender may make proof of loss if not made promptly by Borrower. 3. Preservation and Maintenance of Property. Borrower shall keep the Property
in good repair and shall not commit waste or permit impairment or deterioration of the Property.
Borrower shall comply with any law, by-law, ordinance, restriction, regulation, order or code affecting the Property or the use thereof, including, without limitation, those relating to oil, hazardous or toxic substances or materials or any other environmental contaminants. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform
all of Borrower’s obligations under the declaration or covenants creating or governing the
condominium or planned unit development, and constituent documents. 4. Protection of Lender’s Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which
materially affects Lender’s interest in the Property, Lender, at Lender’s sole option, upon notice
to Borrower, may (but shall not be obligated to) disburse such sums and take such actions as are necessary to protect Lender’s interest, and any expenses so incurred by Lender, including reasonable attorney’s fees, shall be added to the sums secured by this Mortgage.
5. Inspection. Lender may make or cause to be made reasonable entries upon and
inspections of the Property, provided that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause therefor related to Lender’s interest in the Property.
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6. Damage by Fire or Other Casualty; Condemnation. If by reason of any damage or destruction to the Property, any sums are paid under any insurance policy mentioned
in Section 3, such proceeds shall, subject to the rights of the holder of the Senior Mortgage (if
any), be paid to Lender alone, to be applied toward reimbursement of all costs and expenses of Lender in collecting such proceeds, and, at the option of Lender, either toward payment of the indebtedness secured hereby or any portion thereof, rebuilding or replacement of that part of the Property so damaged or destroyed; provided, however, if the holder of the Senior Mortgage (if
any) determines to apply available insurance proceeds to reconstruction of the Property, Lender
shall consent to such application. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemnation are hereby assigned and shall be paid to Lender to the extent of the amount of the outstanding Loan, as provided in the Note, subject to
the terms and conditions of the Senior Mortgage (if any).
7. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of the conditions of the terms for payment of the sums secured by this Mortgage granted by Lender to any successor in interest of Borrower shall not
operate to release, in any manner, the liability of the original Borrower and Borrower’s
successors in interest. Lender shall not be required to commence proceedings against such successor or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Mortgage by reason of demand made by the original Borrower and Borrower’s successors in interest. Any forbearance by Lender in exercising any right or remedy hereunder,
or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any
such right or remedy. 8. Successors and Assigns Bound; Joint and Several Liability; Co-signers. Borrower’s interest under the Note and this Mortgage may not be transferred, assigned, or
assumed without the written consent of Lender, which consent shall not be unreasonably
withheld, provided such transfer, assignment or assumption is consistent with the terms and conditions of the Guidelines. The covenants and agreement herein contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of Lender and Borrower. All covenants and agreements of Borrower shall be joint and several.
9. Notice. Except for any notice required under applicable law to be given in another manner, any notice required or given under this Mortgage shall be send by certified mail, return receipt requested, by hand-delivery, and/or by recognized overnight courier addressed to the parties at the address set forth above, which address may be changed by written notice to the
other given in the manner herein provided.
10. Governing Law; Severability. The terms of this Mortgage shall be construed in accordance with the laws of the Commonwealth of Massachusetts and any disputes regarding this Mortgage shall be brought in the courts of the Commonwealth of Massachusetts. If any
provision or clause of this Mortgage, the Note, the Guidelines, and/or any other agreement
between Borrower and Lender (collectively, the “Governing Documents”), such conflict shall not affect other provisions of the Governing Documents which can be given effect without the conflicting provision, and to this end the provisions of the Governing Documents are declared to be severable.
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11. Breach; Remedies. Subject to the terms and conditions of the Senior Mortgage
(if any), upon Borrower's breach of the STATUTORY CONDITION or any covenant or
agreement of Borrower in the Note or this Mortgage, including the covenant to pay when due any sums secured by this Mortgage (“Borrower Breach”), Lender, prior to acceleration, shall give notice to Borrower, as provided in paragraph 10 hereof, specifying; (1) the breach; (2) the action required to cure such breach; (3) a date, not less than 30 days from the date the notice is
mailed to Borrower, by which such breach must be cured; and (4) that failure to cure such breach
on or before the date specified in the notice may result in acceleration of the sums secured by this Mortgage and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or any other defense of Borrower to acceleration and sale.
If the breach is not cured on or before the date specified in the notice, Lender, at Lender's option, may declare all of the sums secured by this Mortgage to be immediately due and payable without further demand and may invoke the STATUTORY POWER OF SALE and any other remedy permitted by applicable law. Lender shall be entitled to collect all reasonable costs and
expenses incurred in pursuing the remedies provided in this Section 12, including, but not limited
to, reasonable attorneys’ fees, all of which shall be secured by this Mortgage. If Lender invokes the STATUTORY POWER OF SALE, Lender shall mail a copy of a notice of sale of its interest in the Property to Borrower and to any other person required by
applicable law, in the manner provided by applicable law. Lender shall publish the notice of sale
and its interest in the Property shall be sold in the manner prescribed by applicable law. Lender or Lender's designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all reasonable costs and expenses of the sale, including reasonable attorneys' fees and costs of title evidence; (b) to all sums secured by any mortgage
with a lien which has priority over this Mortgage; (c) to all sums secured by this Mortgage; and
(d) the excess, if any, to the person or persons legally entitled thereto. 14. Borrower's Right to Reinstate. Notwithstanding Lender's acceleration of the sums secured by this Mortgage due to Borrower's breach, subject to the terms and conditions of
the Senior Mortgage (if any), Borrower shall have the right to have any proceedings begun by
Lender to enforce this Mortgage discontinued at any time prior to the earlier to occur of (i) sale of Lender’s interest in the Property pursuant to the Statutory Power of Sale contained in this Mortgage or (ii) entry of a judgment enforcing this Mortgage provided: (a) Borrower cures all breaches of any of the terms of the Governing Documents; (b) Borrower pays all reasonable
expenses incurred by Lender in enforcing the covenants and agreements of Borrower contained
in the Governing Documents and in enforcing Lender's remedies as provided in Section 12 hereof, including, but not limited to, reasonable attorneys' fees; and (c) Borrower takes such action as Lender may reasonably require to assure that the lien of this Mortgage, Lender's interest in the Property, and Borrower's obligation to pay the sums secured by this Mortgage shall
continue unimpaired. Upon such payment and cure by Borrower, the Note, this Mortgage and
the obligations secured hereby shall remain in full force and effect as if no acceleration had occurred.
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12. Assignment of Rents. Subject to the rights of the holder of the Senior Mortgage (if any), Borrower hereby assigns to Lender any and all leases and subleases of the Property or
any part thereof, and all of Borrower’s right to receive any or all rent and other income reserved
in such leases, provided, however, that Borrower or its designee shall retain the right to receive such rent until the occurrence of a default under any instrument executed in connection with this transaction. Borrower shall execute and deliver any such further instruments as Lender may request to evidence further the foregoing assignment, which shall be in form satisfactory to
Lender, and Borrower hereby grants Lender full power and authority as Borrower’s irrevocable
attorney in fact to make, execute, acknowledge, deliver and record such assignments. 13. Security Agreement. This instrument is intended to also be a Security Agreement under the Uniform Commercial Code (“UCC”). The conveyance of the Property
shall constitute a grant of a UCC Security Interest therein and the recording of this instrument
shall have the effect of a fixture filing. In addition to any other remedy contained herein, upon the occurrence of any Event of Default by Borrower and at any time thereafter, Lender shall have all of the remedies of a secured party under the UCC as now in effect in the Commonwealth of Massachusetts, and such further remedies as may from time to time hereafter be provided under
Massachusetts law for a secured party.
14. Cumulative Remedies. All remedies provided in this Mortgage are distinct and in addition to any other right or remedy under this Mortgage or afforded by law or equity, and may be exercised concurrently, independently or successively.
15. Release. Upon the expiration of the term of the Note or upon proper payment of all sums secured by this Mortgage, Lender shall discharge this Mortgage without cost to Borrower. Borrower shall pay all costs of recordation, if any.
This Mortgage is executed under seal this 1st day of December 2022. MORTGAGOR:
______________________________________ Buyer
COMMONWEALTH OF MASSACHUSETTS Hampshire, ss.
On this 1st. day of December 2024, before me, the undersigned Notary Public, personally appeared _________, proved to me through satisfactory evidence of identification, which was ________________________, to be the person whose name is signed on the
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preceding or attached document and acknowledged to me that he/she/they signed it voluntarily for its stated purpose.
____________________________________ (Official Signature and Seal of Notary) EXHIBIT A
PROPERTY DESCRIPTION
Affordable
Homeownership Opportunity
You are planning to purchase a house in
Northampton
You think you may meet our income
restrictions
Apply if:
Valley Community Development has several
$50,000 mortgage subsidy loans available.
Are you interested in becoming a
homeowner in Northampton?
Application process:
Appointment required.
Contact Donna Cabana
at dc@valleycdc.org or
413-586-5855 ext. 180
to set up your appointment.
Household Size/Income Limit
1 Person............ $65,590
2 Persons.......... $74,960
3 Persons.......... $84,330
4 Persons.......... $93,700
5 Persons ..........$101,196
6 Persons .........$108,692
Estimated Actual Estimated Actual Estimated Actual
HOME EXPENSE CHILDREN ENTERTAINMENT
Electric Allowance Bar/Café/Club
Cable/Streaming Services Camp/Childcare Books/Subscriptions
Gas/Oil Diapers Cigarettes/Alcohol
Internet School supplies Coffee, Snacks
Phone Sports equip, team dues Movies
Rent Toys and books Other
Rental Insurance Other Other
Garden/lawn/snow Other TOTAL ENTERTAINMENT EXPENSE $0 $0
Homeowner's insurance TOTAL CHILDREN EXPENSE $0 $0
Maintenance/repairs VACATIONS/GIFTS/HOLIDAYS *
Mortgage SAVINGS Accommodations
Property taxes Homeownership Savings Entertainment
Water & sewer Other Food
Other Other Gifts
TOTAL HOME EXPENSE $0 $0 Other Plane, train, bus, rental car
TOTAL SAVINGS $0 $0 Shopping
FOOD EXPENSE Traveler's Insurance
Groceries DEBT Other
Restaurants/Take Out Auto Loan Payments TOTAL VACATIONS/GIFTS/HOLIDAYS *$0 $0
Other Credit Card Payments
TOTAL FOOD EXPENSE $0 $0 Personal Loan Payments MISCELLANEOUS
Student Loan Payments Other
HEALTH Student Loan Payments Other
Doctor, Dentists Other TOTAL MISCELLANEOUS EXPENSE $0 $0
Insurance TOTAL DEBT EXPENSE $0 $0
Over-the-counter INCOME
Prescriptions Net Wages ("take home pay"/after taxes)
Veterinarian/pet meds/insurance TRANSPORTATION
Gross Self Employment Income ("take home
pay"/before taxes)
Other Car payment Child Support
TOTAL HEALTH EXPENSE $0 $0 Car maintenance*Food Stamps (cash value)
Car repairs*Pension
PERSONAL EXPENSES Gas Social Security
Clothing Parking SSDI
Hair Cuts/Salons Public transportation TANF (Monthly government assistance-cash value)
Laundry Uber, Lyft, Zipcar Unemployment Compensation
Other Other Other
Other Other Other
TOTAL PERSONAL EXPENSE $0 $0 TOTAL TRANSPORTATION EXPENSE $0 $0 TOTAL INCOME $0 $0
TOTAL EXPENSES $0 $0
CASH SHORT/EXTRA $0 $0*If this is a periodic expense, divide the annual total by 12 (budget it as a monthly expense)
Monthly Budget Worksheet Month Year
PERSONAL BUDGET WORKSHEET
MONTH:
INCOME:Budget Actual
Salary
Salary
Snap/SS/Pension
Snap/SS/Pension
Snap
Total Income -$ -$
EXPENSES:
Living/Housing:
Rent/Mortgage -$
RE Tax -$
Electric -$
Propane, Oil or Gas/Heating -$
Telephone -$
water/sewer -$
Condo Fee -$
Real Estate Taxes -$
Netflix & Comcast - internet -$
Regular Payments:
1% or IBR payment $ Student Loan -$
Personal loan & Credit Cards -$
IRS/DOR -$
health insurance -$
Long term care & others Insurance -$
Life Insurance -$
Trash -$
other -$
child care -$
Food Expenses:
Houshold & Groceries -$
Restaurant Meals -$
Coffee,Starbucks:-$
Grand or kids :-$
Personal Expenses:
CVS or Personal Care/cleaning supplies -$
Hair/Nail Care -$
Clothing/Shoes -$
Health Care Co-pays / Doctors, Dentists -$
Co-pays for/or Prescriptions -$
Laundry/Dry Clean -$
Selfcare/gym membership -$
Xbox & HULU subscriptions -$
Pet supplies -$
Transportation:
Gas/Auto Expenses -$
Auto loan .-$
Tolls/Excise -$
Auto insurance Other:-$
repairs Other:-$
Miscellaneous:
Entertainment -$
Travel/Vacations -$
***Savings -$
Vet Pet Other:-$
other:-$
Total Expenses:-$ -$
TOTAL INCOME MINUS TOTAL EXPENSES:-$ -$
(Spending Plan)
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Narra�ve: Northampton Mortgage Subsidy Program (the "Program")
Proposed by: Valley Community Development ("Valley")
Project Descrip�on:
The proposed Northampton Mortgage Subsidy Program will offer four $50,000 loans to assist to low- and
moderate-income (LMI), first-�me homebuyers (earning 100% or less of the area median household
income) with down payment and closing costs when buying in Northampton. These loans will be
deferred and subordinate to the buyer’s primary mortgage, o�en referred to as a "so� second" loan. The
subsidies bridge the gap between the typical Northampton home price and the amount of housing debt
a moderate-income household can afford.
To provide these four mortgage subsidies, Valley staff plan to work closely with at least 25 income-
eligible, first-�me homebuyers. The program will be supported by Valley’s other first-�me homebuyer
(FTHB) ini�a�ves, like homebuyer workshops and individualized financial and homebuying counseling.
Project Loca�on:
The Program will operate City-wide. Par�cipants do not need to live in Northampton to par�cipate
though they must be shopping for a home in Northampton. All mortgage subsidy recipients must
purchase a home or condominium in Northampton.
What Community Preserva�on criteria does this project meet?
According to the Northampton Community Preserva�on Plan Revised January 2022 (“the Plan”):
The July 2012 revisions to the Act expanded the defini�on of support of community housing,
which includes, but is not limited to, “programs that provide grants, loans, rental assistance,
security deposits, interest-rate write downs or other forms of assistance directly to individuals
and families who are eligible for community housing or to an en�ty that owns, operates or
manages such housing, for the purpose of making housing affordable. (pg. 30).
Page 34 of the Plan iden�fied “Affordable homeownership for families” as a high priority and that “CPA
funds could be used to help first-�me homebuyers or other homebuyers afford a home in Northampton”
(pg. 34).
What guarantees will ensure the long-term preserva�on of the project?
The mortgage subsidy will be in the form of a 1% simple interest mortgage and note at the �me of the
closing with a term of 30 years. This is a deferred payment loan that is due upon sale, transfer of the
deed, with interest of $500 per year for years 1-15. A�er year 16, 1/15 will be forgiven each year of the
principle of $50,000. At the end of the term, $7,500 in interest is due. The funds are also due when a
cash out refinance takes place that does not improve the property.
What community support does the project have?
See atached leters of support from program receipts who share the impact the Program had on them.
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Valley provides services that complement the proposed Program, including homeownership counseling
and first-�me homebuyer (FTHB) workshops. These services receive financial support from the
community, with funding from local banks, the MA Division of Banks, and the MA Housing Partnership.
The FTHB workshop is a 9-hour series and graduates are eligible for favorable mortgage rates and terms
through the MA Housing Partnership. Favorable rates o�en play a cri�cal role in helping bridge the gap
between home prices and a household's ability to afford a mortgage.
How will the success of this project be measured?
The primary measure of success for the Program will be the delivery of four mortgage subsidies to
income-eligible, first-�me homebuyers (FTHBs) in Northampton within the 18-month program period. To
reach this goal Valley staff will work closely with at least 25 FTHB households.
Success will also be demonstrated through before and a�er snapshots of each household's budget.
These will show how homeownership has improved their financial and housing situa�ons, helped them
build assets, reduced debt, and increased savings for future expenses.
The program’s success will also be evaluated based on the �mely implementa�on and delivery of
services according to the schedule provided.
Valley will track all poten�al program par�cipants to assess overall interest and iden�fy the factors that
lead to ineligibility. This will help gain insights into the community's needs and inform the poten�al for
similar programs in the future.
Is ongoing maintenance and upkeep required? Explain:
Valley staff will oversee program closeout, repor�ng, client files, follow-up with clients, and post-
purchase educa�on.
New Northampton homeowners can benefit from Valley’s Post-Purchase Educa�on Workshop and
personalized counseling. The free 6-hour workshop covers essen�al topics such as seasonal and healthy
home maintenance, managing repairs, and working with contractors. This educa�on is a program
requirement of people who receive subsidies.
Project Need:
Low- and moderate-income households face significant challenges to homeownership due to the high
cost of housing and day to day expenses. Many aspiring homeowners struggle to save for down
payments and closing costs because of the burden of rent, u�li�es, medical expenses, and student loans.
The gap between average household income and the average home sales price has widened
drama�cally, crea�ng further obstacles. The limited supply of homes for sale in Northampton con�nues
to lead to bidding wars, with many homes con�nuing to sell above the lis�ng price.
As of August 2024, the median list price for homes in Northampton is $499,000, with the median sales
price at $480,000. While this shows that the sale price is lower than the list price, the median home
price is s�ll up year over year. Without a subsidy to bridge the gap between what low- and moderate-
3
income households can afford and actual sales prices, a large segment of poten�al homeowners are
being priced out of the market.
Below is an example of what a family of four with a household income at 100% of the annual median
income (AMI) could afford.
Example of Household Affordability
Household Income at 100% AMI $ 97,000.00
Gross Monthly Income $ 8,083.33
Monthly Loan Payment and Escrow $ 2,505.83
Purchase Affordability $ 300,000.00
Need 3% down for purchase $ 9,000.00
Expect 2-5% for closing costs $ 7,500.00
For a household of four at 100% AMI the only way to bridge the gap in what they can afford and current
sale prices in Northampton is with personal savings and programs like the Mortgage Subsidy program.
As housing prices have steeply increased and interest rates have risen, even with recent small reduc�on
in rates, it remains difficult for moderate-income buyers to enter the market. Offering mortgage subsidy
assistance loans to first-�me homebuyers (FTHBs) has proven to be a successful strategy for Valley in
helping to offset these market challenges and support aspiring homeowners.
Descrip�on of services:
Valley's Homeownership team, with over 25 years of combined experience, will guide households in
achieving their financial goals and objec�ves. Prospec�ve buyers will meet with Valley’s staff for a
comprehensive review of their household including, goals and finances. This includes evalua�ng income,
debt payments, credit reports, household budgets, debt-to-income (DTI) ra�os, and pre-approved
mortgage terms. Valley provides these services to help households iden�fy their best op�ons and price
points while ensuring they understand what cons�tutes a sustainable DTI.
Not all aspiring homeowners are immediately ready or able to buy a home. For those who do not meet
the Program criteria, Valley offers ongoing budge�ng and debt reduc�on assistance to help them save
and reduce debt, preparing them to qualify for the program in the future.
FTHBs typically lack experience working with real estate professionals and atorneys. They may not fully
understand what to expect, how to navigate the process, or how to nego�ate repairs with the seller.
Valley has strong working rela�onships with local loan originators, underwriters, and loan processors,
allowing us to help buyers effec�vely collaborate with banks, realtors, and atorneys.
Valley provides informa�on and referrals for various mortgage programs, including MHP One Mortgage,
and USDA loans. We offer objec�ve guidance on mortgage products, mul�-family and condo ownership,
housing rehab, sep�c repair, weatheriza�on, lead paint abatement, and avoiding predatory lending.
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Valley will conduct outreach and marke�ng to historically disadvantaged individuals and families. We
provide transla�on services as needed to assist non-English speakers.
Valley will collect demographic and household income data from all clients and will cer�fy and document
household income for mortgage subsidy assistance in accordance with established guidelines.
Project Budget: See atached budget showing use of CPA funds.
Mul�-year Funding: Valley is seeking one CPA funding alloca�on in one fiscal year, although Program
delivery is expected to happen over 18 months.
Project Timeline: The proposed contract period is January 1, 2025 – June 30, 2026. It is an�cipated that
the four $50,000 mortgage subsidy loans will be distributed as follows:
Quarter 1 - None (program marke�ng)
Quarter 2 - None (program marke�ng con�nues and working with poten�al buyers on
understanding the program and their possible eligibility)
Quarter 3 - 1 household closes with mortgage subsidy assistance
Quarter 4 - 1 household closes with mortgage subsidy assistance
Quarter 5 - 1 household closes with mortgage subsidy assistance
Quarter 6 - 1 household closes with mortgage subsidy assistance
Feasibility:
The Program is a con�nua�on of the successful Northampton Mortgage Subsidy Program that was
completed in summer 2024 and Valley is prepared to begin delivering services as soon as the contract is
awarded. With experienced staff in place and a proven track record of administering similar mortgage
subsidy programs in mul�ple communi�es, Valley is well-equipped to con�nue. Template documents for
marke�ng and administra�on are ready, and Valley will collaborate with the City to verify that the
previous Program’s mortgage and note is s�ll acceptable.
The greatest challenge to the program's feasibility remains the housing market. The combina�on of a
limited housing supply, lis�ng prices, and bidding wars has made homeownership unatainable for many,
even with a $50,000 mortgage subsidy. However, there has been a recent up�ck in housing inventory
and drop in interest rates which we hope signals a return to a more typical market, providing more
opportuni�es for moderate-income homebuyers. Valley's long-standing experience with mortgage
subsidy programs posi�ons us to effec�vely address these market challenges and support first-�me
homebuyers.
Maps: Not applicable. Program will be offered City-wide.
Atachments:
• Project budget
• Leters of support from three previous recipients of the Program
• Sample Promissory Note/Mortgage
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• Sample Marke�ng Materials
• Sample of two FTHB budget worksheets