Logan Terrace Townhomes
Use Of Sales Proceeds And Restrictive Covenants
Our goal is to ensure affordable homeownership units. The homebuyer shall agree per the terms of the homebuyer deed that if he or she sells or otherwise disposes of his or her beneficial interest in the property within five (5) years of the date of initial purchase of the property, the Chester Housing Authority shall share in proceeds from price appreciation of the property. Therefore, during the first 5 years after the units are sold, proceeds from such sale or refinancing will be distributed as follows:
Use of Sales Proceeds upon Resale
During the first 5 years after the units are sold, proceeds from such sale or refinancing will be distributed as follows:
- First, any proceeds from the sale or refinancing of the unit will first go to pay off the first mortgage.
- Second, any proceeds remaining from the sale or refinancing of the units will go to pay the seller for certain depreciable capital improvements made to the unit, and costs related to the sale of the unit (i.e. broker fees, transfer costs, etc.).
- Third, any proceeds from the sale or refinancing of the unit will go toward paying back any down-payment the seller made at initial purchase of the unit.
- Fourth, any proceeds remaining from the sale or refinancing will go to repay CEDA for downpayment and/or closing cost assistance (if and as applicable).
- Fifth, to the extent here is any appreciation, it will be allocated to the CHA in accordance with the below appreciation sharing provisions that shall be incorporated into the homebuyer's deed.
Appreciation Sharing Plan
| Type of Unit |
Homebuyer's
Appreciation Share |
CHA's Appreciation Share |
3 Bedroom
@ up to 80% of AMI |
|
|
| Year 1 |
0% |
100% |
| Year 2 |
20% |
80% |
| Year 3 |
40% |
60% |
| Year 4 |
60% |
80% |
| Year 5 |
80% |
20% |
| After Year 5 |
100% |
0% |
In addition to the use of sale restrictions listed above all units are subject the following additional deed restrictions:
- No unit owner may rent, lease, or sublet their unit during the 5-year period as defined by the Logan Terrace Townhomes ownership program.
- Every lot owner shall be a member of the Logan Terrace Townhomes Homeownership Association, subject to the provisions of the by-laws and rules and regulations and will pay a monthly association fee in the amount that will be established by the developer based on an association budget.
Click on the links below to read more about Logan Terrace Townhomes
All Information on Logan Terrace Townhomes in a single PDF
Application And Eligibility Process
Selection Criteria
Preference Status
Income Limits
Sales Price
Use Of Sales Proceeds And Restrictive Covenants
Contact Information
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