Northeast Iowa Community Action Corporation

NEICAC's Lease Purchase Program Homes
Lease Purchase Program

NEICAC has completed our 5th, 6th, 7th and 8th projects termed the Lease Purchase Affordable Housing Program, and we have begun planning for our 9th project which is called Phase V of this Lease Purchase Program. The 5th project built 5 Lease Purchase homes in Cresco (4) and Postville. The 6th project built 4 Lease Purchase homes in Cresco (2), Lawler and West Union. The 7th & 8th projects built our first 6 completely green, Energy Star Rated homes that are compliant to IDED’s Green Criteria Checklist. These homes were built in West Union, Tripoli (2), Volga, Garnavillo and Oelwein. Of these first 15 homes all are now either sold or leased for purchase. Phase IV or the 8th project’s homes were completed in June and July of 2011.

These are three bedroom homes that are rented for one - three years by a first - time homebuyer family who meets the program’s income guidelines. These homes are being built for families who are at an income level that does not exceed 60% of the local average monthly income (AMI). Then, after taking the required Homebuyer Education Classes, the renter can buy the home for about half the cost of construction. The construction costs for one of these homes is about $140,000.

NEICAC’s Property Manager is a Certified Homebuyer Educator. Before the renting family can purchase the home, they will be responsible for taking classes to help them repair credit, income budgeting, and learn home ownership skills. Of the first 15 Lease Purchase Program homes, termed Phases I - IV, 8 homes have been sold, with 7 rented to families earning less than 60% of their local AMI. NEICAC is building three more of this Lease Purchase homes Program in 2012 - 13 as part of their 9th housing project termed Phase V. These homes are quality stick - built homes, not modular homes. They will be completed for occupancy in late 2012 or early 2013 for families earning no more that 60% of local AMI.

Below is the guidelines for our seven county service area. If your household size is greater than four, please contact NEICAC for income guidelines.

U.S. Department of HUD 2013 Adjusted Home Income Limits
County Family Size 1 Family Size 2 Family Size 3 Family Size 4
Allamakee, Chickasaw, Clayton, Fayette, Howard $25,140 $28,740 $32,340 $35,880
Bremer $30,660 $35,040 $39,420 $43,740
Winneshiek $27,480 $31,440 $35,340 $39,240

As an example, based on a 60%AMI, a family of four making less than $35,880 gross income annually in Fayette County would qualify for the Lease Purchase Program.

Phase IV of the Lease Purchase Program has now been completed. Phase IV of the Lease Purchase Program has added Lease Purchase Program homes in Oelwein, Tripoli, and Garnavillo. These homes will be NEICAC’s 2nd round of "green homes" meeting IDED’s "green criteria checklist". These homes include 35 exceptional features that keep utility costs low, provide for clean and healthy living, use non - toxic low VOC building materials, and conserve water and energy and are affordable for low - moderate income families. This same green design and energy star rating will be built into our next affordable housing project - Phase V, and these homes will be built in; Fayette, Fredericksburg, and Waukon in late 2012 or early 2013 when federal and state funding are secured.

For more information call Jeremy at 563-382-8436 Ext 151.

To apply for a "Lease Purchase Program" home, print the Homeownership Program Application form and fax it to 563-382-9854 Attn: Jeremy Jostand

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Northeast Iowa Communty Action Corporation
305 Montgomery Street, PO Box 487
Decorah IA 52101-0487

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