Come Home to Gresham

Homebuyer Assistance Program

Addendum to Sales Agreement

Information in this Addendum is disclosed to Buyer and Seller to meet the requirements of the federal Uniform Relocation and Real Property Acquisition Policies Act of 1970, as amended (URA), the Neighborhood Stabilization Program (NSP) under the Housing and Economic Recovery Act of 2008 as amended, and the Protecting Tenants at Foreclosure Act of 2009 (PTAF). This document must be fully executed before City of Gresham will commit funds to the purchase of the property below.

This is ADDENDUM Number: to the Sales Agreement dated: ___/___/___

Address of property:

The Buyer may use federal NSP funds provided by the City of Greshamto acquire the property identified above, subject to the conditions outlined below. The Seller and Buyer acknowledge and agree that the Sales Agreement is subject to and shall be completely contingent upon the following conditions:

  1. Approval of City of Gresham’s loan is contingent upon verification that the property is in an NSP-eligible Target Area, is not located in a floodplain, and that the home meets federally-defined Housing Quality Standards (HQS). An inspector chosen by the City will evaluate the property’s compliance with HQS, and the City cannot fund a loan on the property until any items marked “fail” by the inspector are corrected. However, if NSP funding is combined with FHA 203K or other approved acquisition/rehabilitation loan products, the loan may be closed with an open HQS inspection (i.e. an inspection with “Failed” items) and the property must be re-inspected after rehabilitation is complete. Further, the homebuyer may not occupy the home until the HQS inspection is complete and all HQS inspection items have been upgraded to a “Pass” status. In addition, any property built prior to 1978 will be assessed by the City’s inspector for lead-based paint hazards; any such hazards identified must be corrected before the City will fund a loan.
  2. This transaction is considered a voluntary acquisition under the URA. The Buyer does not have the right of eminent domain. The Seller’s property will not be acquired through condemnation. Buyer will not acquire the property offered for sale if negotiations fail to result in a satisfactory agreement.
  3. The purchase price (Final Offer) will be the LESSER of 1) the purchase price stated in the sales agreement; or, 2) 1% less than the fair market value.The fair market value will be determined by an appraisal that conforms to the requirements of the URA at 49 CFR 24.103, performed by a licensed certified appraiser. The Buyer will inform the Seller in writing of the fair market value of the property when it is established. At that time the Seller may withdraw from the transaction if 1% less than the fair market value is less than the price stated in the sales agreement.
  4. If the property was taken in foreclosure after February 17,2009, the “initial successor in interest” (the Seller)is required by PTAF to have provided a notice to vacate to any bona fide tenants at least 90 days before the effective date of such notice; if applicable,Seller must provide the City with a copy of the 90-day notice to vacate.

The Seller certifies that the property is currently vacant, and the requirements regarding former tenants were met:

The notice of foreclosure was issued (date): ___/___/___

The actual date of foreclosure was (date): ___/___/___

(over)

At the time the notice of foreclosure was issued, the property was (check one):

Occupied by the then-owner Occupied by a bona fide tenant Vacant

ADDENDUM ACCEPTANCE

The Buyer and Seller understand that if the conditions of this Addendum are not met, either party may terminate the Sales Agreement Contract by notifying the other party by certified mail (return-receipt requested) that the Contract is terminated.

The Buyer and Seller:

1)Voluntarily accept the conditions of this Addendum; and

2)Agree to amend the Sales Agreement Contract to include this Addendum.

Buyer SignatureDate / Seller signatureDate
Buyer Name (printed) / Seller Name (printed)
Buyer SignatureDate / Seller signatureDate
Buyer Name (printed) / Seller Name (printed)

OR
NON-ACCEPTANCE AND TERMINATION

The Seller and/or Buyer understand the conditions of this Addendum and do not wish to amend the Contract for the property identified in this Addendum. The Seller and/or Buyer wish to terminate the Contract dated ______. The Seller and/or Buyer will notify the other party by certified mail (return receipt requested) that the Contract is terminated.

Buyer SignatureDate / Seller signatureDate
Buyer Name (printed) / Seller Name (printed)
Buyer SignatureDate / Seller signatureDate
Buyer Name (printed) / Seller Name (printed)

After signing this Addendum please return it to:

Community Revitalization Program

City of Gresham

1333 NW Eastman Parkway

Gresham, OR97030

Y:\UDP\CRP\NSP 2008-09\HOMEOWNERSHIP ASSIST\COME HOME PRGM DOCS\form 11 sales agreement addendum03/02/10