1. Introduction

What is the Midtown Renaissance? It’s a project that will attract new homeowners and residents who will choose to make their families’ homes in an eclectic, historic and energizing neighborhood because of extraordinary value. 

The Housing and Economic Recovery Act of 2008 provided the City of New Albany with over $6 million in federal funding for the Neighborhood Stabilization Program (NSP) to address foreclosed, abandoned, and vacant properties in the heart of New Albany –Midtown. This exciting project is administered on the state level by the Indiana Community Housing Development Authority (ICHDA) and facilitated on the local level by a partnership between the City of New Albany and New Directions Housing Corporation.

The first phase (32 properties) of redesign and redevelopment is about to launch construction using quality preservation, renovation and new construction approaches. Great schools, retail services, parks, great neighbors and future friends are waiting.

2. Eligibility Requirements

The program provides high-quality homes, restored and new construction to income-eligible homebuyers. The homes will be sold to homeowner occupants only and to buyers who earn 120% or less of Area Median Income (AMI). A quarter of the overall award must go to families making 50% AMI or below.

Other Eligibility Requirements

• Participants in the program must receive at least 8 hours of homebuyer counseling from a HUD-approved Homebuyer Counseling Agency and an additional 16 hours of training in the “Community Stabilization Seminar Series” of financial empowerment training. This is important to ensure success as a homeowner.
• The interest rate on the loan you are receiving from you lender may be no more than 2 percentage points above the market rate of interest for a 30-year fixed first mortgage loan (as determined by FNMA average for 30-year rate at the time of your application).
• The program reserves the right to review the terms of your first mortgage loan to ensure that it provides terms that ensure the long term affordability and your success as a homeowner. “High Cost” loans are not acceptable.

Owner-Occupancy & Period of Affordability

Since the primary goals for the project are promoting and preserving affordable home ownership, certain affordability requirements apply. If a property is sold prior to expiration of the affordability period, which will normally be 15 years, it will need to be purchased by another qualified income purchaser.

What do I do to become eligible?

The first properties are expected to be ready for sale by April 2011.

To get the process started, contact our Realtor specialists:

3. Midtown Renaissance -- Project At-A-Glance