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PURCHASE SUPPLEMENT
For Owner Occupants of 180 Days or More
If you are an owner and have occupied your home for 180 days or more immediately prior to the initiation of negotiations for the acquisition of your property, you may be eligible - in addition to the fair market value of your property - for a supplemental payment, not to exceed $ 22,500 for all costs necessary to purchase a comparable decent, safe, and sanitary replacement dwelling. The agency will compute the maximum payment you are eligible to receive. You must purchase and occupy a DSS replacement dwelling within 1 year.
The Purchase Supplement Includes Price Differential: The price differential payment is the amount by which the cost of a replacement dwelling exceeds the acquisition cost of the displacement dwelling. The price differential payment and the following payments are in addition to the acquisition price paid for your property. Increased Mortgage Interest Cost: You may be reimbursed for increased mortgage interest costs if the interest rate on your new mortgage exceeds that of your present mortgage. To be eligible your acquired dwelling must have been encumbered by a bona fide mortgage which was a valid lien for at least 180 days prior to the initiation of negotiations. Incidental Expenses: You may also be reimbursed for other expenses such as reasonable costs incurred for title search, recording fees, and certain other closing costs, but not including prepaid expenses such as real estate taxes and property insurance. The total amount of the purchase supplement cannot exceed
$ 22,500, according to the law.
Example of a Price Differential Payment Computation Assume that the Agency purchases your property for$ 100,000. After a thorough study of the available comparable residential properties on the open market, the Agency determines that the comparable replacement property will cost $ 116,500. If you purchase a DSS replacement property for
$ 116,500, you will be eligible for a price differential payment of $ 16,500; see Example A. If you purchase a DSS replacement property costing more than $ 116,500, you pay the difference as shown in Example B. If your purchase price is less than $ 116,500 the price differential payment will be based on your actual cost; see Example C. The price differential payment you will receive depends on how much you actually spend on a replacement dwelling as shown in the following examples. Agency's Computation:
Cost of Comparable Replacement $ 116,500
Acquisition Price of Your Property - 100,000
Maximum Price Differential Payment $ 16,500
Example A:
Actual Cost of Replacement Property $ 116,500
(Same Purcase Price as Comparable)
Acquistion Price of Your Property - 100,000
Price Differential Payment $ 16,500
Example B:
Actual Cost of Replacement Property $ 125,000
Acquisition Price of Your Property - 100,000
Difference
$ 25,000
Maximum Price Differential Payment - 16,500
You Are Responsible For This Amount $ 8,500
Example C:
Actual Cost of Replacement Property $ 114,000
Acquisition Price of Your Property - 100,000
Your Price Differential Payment is $ 14,000
(Payment based on your actual cost)Next
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