Do I need to pay UNPA back?
The funding UNPA “grants” is legally recorded as a “10-year term zero interest loan” or “lien” or “second mortgage” that has a “due-on-sale” or “recapture agreement”.
So, yes, you will need to pay UNPA back if you sell, rent or vacate the property before the required 10-year owner-occupancy term. Within the first 5 years, the funds must be repaid 100%. From Years 6 through 10, the amount of the payback decreases 20% a year until Year 10 when it is completely forgiven.
What paperwork do I need to submit to be considered for the program?
Once you find a property located within the UNPA Target Area, please contact UNPA. You will be instructed to submit an application. The application must be received within 45 days of closing on your home.
How long does the approval process take? When are funds received?
The process can take as little as 1 week once UNPA receives your application. A pre-approval letter will then be mailed to you with instructions to submit required paperwork within 45 days after you close on your house. This paperwork includes:
• Quote from contractor or supplier with start date, timeline, delivery date of items or materials.
• Copies of any required permits from City of Syracuse’s Code Enforcement office.
• How will the difference of total project be paid?
• Copies of deed or title report from closing.
• Homeowner’s insurance binder showing UNPA as a 2nd mortgage lender
Your legal transaction with UNPA and receipt of funds can occur only at the UNPA grant closing, which occurs after you have done your initial house closing. At closing you will receive 50% of total grant amount, less closing costs ($300). Projects then need to be completed within 60 days of receiving grant money. When complete, you will submit final paperwork showing how money was spent, i.e. receipts, copies of invoices, contracts.
Where do funds for the Homebuyers Assistance Program come from?
In 1993, Syracuse University and the City of Syracuse entered into an agreement (Ordinance 553) requiring the University to pay a fee of $250,000 annually to fund services addressing students’ impact on neighborhoods southeast of the SU Campus (Special Neighborhood District) increasing each year with the Consumer Price Index. By 2013, SU will have contributed over $6.5 million.
City Ordinances 553 and 554 established both the Service Agreement and the rules regarding distribution of these monies. In 1993, the Service Agreement was officially signed, requiring an annual payment described above for the purposes of maintaining the “health, safety and welfare of the Special Neighborhood District such as police and fire protection, code enforcement, neighborhood organization support, and park and public area improvements.” The signed ordinances also established UNSAAC (University Neighborhood Service Agreement Advisory Committee) to oversee distribution of funds. The purpose UNSAAC is to solicit proposals from non-profit agencies in the special neighborhood district located southeast of the University and to allocate money based on the guidelines of the ordinance.
Please note, if you have an existing UNPA grant, there are no changes to your agreement with UNPA and you are not eligible to receive an additional grant.