Title
Heartwood Sales and Construction Contracts (B)
Explanation
This item provides an update on the development of the Heartwood neighborhood and seeks approval of the marketing, construction, and sale of the homes in accordance with the City’s Real Estate Policy and the City’s Financial Services Procedures Manual.
All 34 Heartwood lots/homes will be marketed and sold by Keller Williams Realty - Team Dynamo, 23 of which are tentatively referred to as “Showcase Homes” and 11 of which will be available for special financing through the City’s Housing and Community Development (HCD) Department tentatively referred to as “Dreams2Reality.” Dreams2Reality will be available to 11 income eligible first time homebuyers. Financing for the 11 homebuyers has been identified through multiple funding sources not to exceed $70,000 per homebuyer. Staff and Team Dynamo plan to begin a marketing campaign and a virtual homebuyer information session, a neighborhood drive-through open house, followed by the official “Sales Day” targeted for late June 2021.
For the Showcase Homes, Team Dynamo will begin to receive online applications on Sales Day and processed in the order they are received. Team Dynamo will work with each applicant to select and secure a home model, lot, and construction financing. Buyers will then enter into a Purchase and Sale Agreement (PSA) with the City for the vacant lot, which will be conditional on the Buyer, within 90 days of executing the PSA, both: 1) obtaining “Construction-to-Permanent” financing, which is essentially a construction loan to finance home construction which automatically transitions into a traditional mortgage after construction; and 2) entering into a construction contract with a Heartwood’s qualified builder to construct the home, with completion and full permitting approval occurring within 9 months after closing on the property. If a Buyer satisfies these conditions within 90 days of executing the PSA, then closing will oc...
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