City of Northwood

Housing Assistance Programs

Amended by City Council of City of Northwood, Iowa 8/13/04

PURPOSE: The City of Northwood in an effort to provide opportunities for home ownership and at the same time increase our population is providing two programs for homeownership. Each program is intended for people living outside the Northwood-Kensett Community School District or for first-time homeowners currently residing in Northwood.  The programs consist of down payment assistance and housing lots for new homes. 

DOWN PAYMENT FOR EXISTING HOMES:  A person and/or family desiring to live within the N-K CSD may apply for down payment assistance for a primary place of residence in Northwood.  The potential homebuyer may receive up to $5,000 as determined by City Council after meeting specified requirements.  Should the homebuyer(s) have children 14 years of age or younger, they may also receive an additional $750 per child (up to a maximum of $2,250) for assistance.  Manufactured (mobile) homes are not eligible for this program.

FREE LOTS FOR NEW HOME BUYER:  A person and/or family residing outside of the N-K CSD or a person and/or family currently residing in Northwood becoming a first-time homeowner(s) wishing to build a home in Northwood may be eligible for a free lot provided by the City if certain conditions are met.  The new construction may be a modular or other type of permanent construction placed upon a foundation or slab.  Manufactured homes (mobile) are not eligible for this program.

ELIGIBILITY REQUIREMENTS FOR A FREE LOT OR DOWN PAYMENT ASSISTANCE:

• Must currently reside outside of the Northwood-Kensett Community School District

• If residing in Northwood, must be a first-time homeowner.

• Meet mortgage eligibility requirements by a certified lending institution.

• Manufactured (mobile) homes do not qualify for either of the above incentives.

• Upon receipt of the free lot or down payment assistance, the recipient(s) must agree to live at the same location in Northwood for five (5) years or refund the current market value cost of the lot or refund a portion of the down payment according to the schedule below:

After 1 year but before 2^nd year:        100 percent

After 2^nd year but before 3^rd year:        80 percent

After 3^rd year but before 4^th year:         60 percent

After 4^th year but before 5^th year:         40 percent

After 5^th year:                                      0

The Housing Assistance Programs are available only throughout the City of Northwood’s 2006-2007 fiscal period concluding June 30, 2007, or until available funds have been expended or upon revocation by the City.  Should the City Council decide to continue the program after the determined dollar amounts have been spent, it may do so by a simple motion.  If the City Council chooses to continue the program(s) for the ensuing fiscal period, it may do so by simple motion.

Recipient(s) receiving assistance through one of the foregoing Housing Assistance Programs will not be eligible to receive tax abatement benefits and, therefore, will need to determine participation in the Housing Assistance Programs or the City’s Tax Abatement Program.  Details of the Tax Abatement Program can be obtained by visiting or calling City Hall (641) 324-1075, 627 Central Avenue, Northwood, IA  50459. Application forms may also be found on the City's web site Northwoodia.org

For the Down Payment Assistance – Non N-K CSD Resident Application, download here.

For the Down Payment Assistance – First Time Homeowner Application, download here.

For the Free Lot – Non N-K CSD Resident Application, download here.

For the Free Lot – First Time Homeowner Application, download here.

 

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