City of Northwood

Housing Assistance Program

ADOPTED 2/24/09

PURPOSE: The City of Northwood, in an effort to provide opportunities for home ownership and at the same time increase our population, is providing a program for homeownership. The program is intended for people living outside the Northwood-Kensett Community School District or for first-time homeowners currently residing in Northwood. 

HOUSING ASSISTANCE FOR NEW OR EXISTING HOMES:  A person and/or family desiring to live within the Northwood-Kensett Community School District may apply for financial assistance in purchasing a home for a primary place of residence within the corporate city limits of Northwood.   

The Northwood City Council may award 2-1/2 % of the purchase price of the home.

As an additional incentive should the homebuyer(s) have children who attend the N-K CSD, the applicant may receive an additional $500 per child (up to 2) that are 14 years of age or younger (up to a maximum of $1,000).  Additional student benefits available through WCDA can be found at www.worthcountydevelopmentauthority.com.

NOTE:  The maximum amount allowable is $6,000 and total award will not exceed 75% of down payment.  In all instances an applicant must invest equity within the purchase of the home in order to benefit from this program.

ELIGIBILITY REQUIREMENTS FOR HOUSING ASSISTANCE:

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

• Must be a first-time homeowner living within the corporate city limits.

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

• Upon receipt of housing assistance, the recipient(s) must agree to live at the same location in Northwood for five (5) years or refund the awarded amount according to the schedule below

• If purchasing on contract, buyers and sellers must sign City's mortgage.

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 Program is available only throughout the City of Northwood  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 for the ensuing fiscal period, it may do so by simple motion.

Recipient(s) receiving assistance through the foregoing Housing Assistance Program will not be eligible to receive tax abatement benefits, which involves the reduction in real estate taxes for a 5-year period on newly constructed homes.  Details of the Tax Abatement Program can be obtained by visiting or calling City Hall (641)324-1075, 627 Central Avenue, Northwood, IA 50459.

For the Housing Assistance Non N-K CSD Resident Application, download here.

For the First Time Homeowner Application, download here.

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