THE DANDELION CONNECTION
Ellicott Square Building., 295 Main Street Room 495, Buffalo, New York 14203
(716) 847-0655 ext. 402  www.nls.org

in this issue..
Home Ownership for First Time Buyers
Utility shut offs
FREE State & Federal Tax preparation for families earning less than $32,000.

After almost 10 years, DSS has decided to end its collaboration with Project Dandelion's Dandelion Connection and will no longer help with printing or mailing costs of the newsletter. We are saddened that they have decided to end this historic alliance.

Thanks for your support.

Home Ownership for First Time Buyers
Reprinted with permission by the Buffalo News.

Many agencies and companies are eager to lend or give first-time home buyers money. The trick is finding all of them. The list below discusses many of the programs but does not include them all.

Moderate-Income Programs
        All these programs use the following household-income guidelines and require you to be a first-time home buyer and attend a home-buying class:

One person - $28,450
Two people - $32,500
Three people - $36,600
Four people - $40,650
Five people - $43,900
Six people - $47,150
Seven people - $50,400
Eight people - $53,650

        Erie County - This program can be used anywhere except Buffalo, Cheektowaga and the towns of Tonawanda, Hamburg and Amherst. The county will loan home buyers $6,000 to help with the down payment or closing costs. If the home is sold within the next 10 years, the loan must be repaid in full. Call 858-8589.

        Amherst and Cheektowaga – The town gives up to $5,000 to help with the closing costs in the form of a lien on the home. The buyer pays no interest and does not have to repay the loan until the home is sold, refinanced or the owner moves out. However, the lien never goes away no matter how long the person owns the home. For Cheektowaga, call 897-7200. For Amherst, call 631-7082

        Buffalo (citywide) – The city will give a low-interest loan of up to $5,000 for closing costs anywhere in the city. The loan is repaid over up to 15 years. You cannot call the city to apply. Instead you must contact one of several community organizations that administer the grants.

For West Side, call 885-2344.
For Black Rock/Riverside, call 877-3910.
For Broadway/Fillmore, call 852-3130.
For South Buffalo, call 823-3630.
For Ellicott, call 856-3262 or 856-7110.
For Kensington-Bailey, call 836-3600.
For Masten, call 838-6740 or 881-6277.
For Lovejoy, call 896-5010.
For North Buffalo, call 874-6133
For Old First Ward, call 856-8613.
For Parkside, call 838-1240.
For University Heights, call 832-1010.

        Buffalo (Masten District) – The city through Bethel Community Development Corp. will give up to $25,000 to buy a new home in certain parts of the district. The grant is forgiven after 10 years. Call 886-1650.

        Buffalo (West Side) – HomeFront, formerly Buffalo Neighborhood Housing Services, will give home buyers up to $20,000. Loan is forgiven after 10 years. Call 856-2952.

        Town of Tonawanda – The town offers two programs where it helps home buyers afford to build a new home in designated areas.

        With the HOPE program in the Sheridan Parkside area, the town provides loans at 5 % , waives the property taxes for the first seven years and partially waives the taxes for another three years on the value of the home (but not the land), pays up to $5,000 in closing costs and gives a subsidy of up to $38,000. The subsidy is forgiven at the rate of $1,000 per year. Since the program started in 1999, it has helped build and sell 16 homes.

        With the HOME program, which is in the Kenilworth and Old Town sections, the town provides up to $35,000 in the form of a lien to build the home. The buyer pays no interest and does not have to repay the loan until the home is sold or the owner moves out. However, the lien never goes away no matter how long the person owns the home.

        In the Old Town section, the town pays up to $5,000 in closing costs. Since the program started in 1992, the town has helped build and sell 61 homes. Call 871-8847.

        Town of Hamburg – The town gives up to $10,000 to reduce the mortgage amount. The town will also give up to $20,000 for the construction of a new home in certain locations. Both grants are forgiven after 10 years. Call 648-6216.

        These programs have different income restrictions than those above.

        Erie County – This program can be used for homes in the towns of Grand Island, Lancaster, Alden, West Seneca, Orchard Park, Aurora and the villages of Lancaster, Alden, Orchard Park, East Aurora and the part of Depew in Lancaster.

        The county will loan home buyers $5,000 to pay for closing costs or a down payment. The loan is forgiven after 10 years. The county will also make a second loan of $10,000 to buy down the interest rate. This loan is forgiven after five years. The income restrictions are $17,800 for one person and $25,400 for a family of four. Call 858-8589.

        Amherst – The town provides interest-free loans of up to $5,000 to help with closing costs and up to another $8,000 to buy down the interest rate by 2 percent. The loans are forgiven after five years. The income restrictions are $30,900 for a one- or two-person family and $35,5635 for a family of three or more.

        Another program with higher income limits–$40,170 for a one- or two-person family and $46,196 for a family of three or more–provides only interest-free loans of up to $5,000 to help with closing costs. The loans are forgiven after five years. For both programs, call 631-7082 .

        Buffalo – This program is only for city employees, including school teachers. The program will give home buyers up to $5,000 for closing costs in the form of a lien on the home. After five years, the lien is forgiven. Call 851-4761.

        Buffalo (Ellicott District) – Home buyers can receive up to $25,000 to buy a new home in certain parts of the district, regardless of income. The grant is forgiven after 10 years. 856-3262.

        Buffalo (Niagara District) – West Side Neighborhood Housing Services will provide a grant of up to $7,000 for closing costs and down payment. The grant is forgiven after five years. Income restrictions are $17,800 for one person and $25,400 for a family of four. Call 885-2344.

        Buffalo (West Side and Black Rock) – West Side Neighborhood Housing Services will provide a grant of up to $4,500 to buy down the interest rate and forgives the grant after five years. The program is unusual because home buyers need to make more than $28,450 for one person and $40,650 for a family of four. Call 885-2344.

        Buffalo (Black Rock and Riverside) – Black Rock/Riverside Neighborhood Housing services will provide a grant of up to $5,000 to cover closing costs. The grant is forgiven after five years. The income restrictions are $42,375 for one person and $60,500 for a family of four. Call 877-3910.

        Buffalo (West Side) – HomeFront will give up to $40,000 to buy a home. The income restrictions are $17,800 for one person and $25,400 for a family of four. Call 856-2952.

        Buffalo (Fillmore District) – Broadway/Fillmore Neighborhood Housing Services has a grant of $63,000 to help six home buyers with closing costs and down payments. The interest-free loans are forgiven after 15 years. The income restrictions are between $14,226 and $21,336 for one person and $20,312 to $30,468 for a family of four. Call 852-3130.

        City of Tonawanda – The city will loan home buyers up to $50,000, which is the maximum purchase price of the home. The loan is below market rate and closing costs are limited to $500. Income restrictions range from about $27,500 for one person to about $39,500 for a family of four. 695-8646.

        NACA (Erie and Niagara Counties) – The Neighborhood Assistance Corp. of America is a non-profit funded with money from settlements with the nation’s banks over predatory lending practices. NACA uses this money to provide home buyers with reduced closing costs and an interest rate 1 percent below the market rate. No down payment is required.

Home buyers who meet the income requirements can buy a house anywhere within Erie and Niagara counties. The income restrictions are $27,100 for one person, $31,000 for two people and $38,700 for a family of four.

        NACA also offers the same benefits regardless of a home buyer’s income as long as the home is bought within Buffalo, Cheektowaga, Lackawanna, North Tonawanda, City of Tonawanda, Town of Tonawanda, Kenmore, City of Lockport, Town of Lockport, Niagara or Niagara Falls. Call 834-6222 or visit www.naca.com

Private lender programs
      Unlike the programs above, these programs will generally require credit good enough to qualify for a conventional or Federal Housing Authority (FHA) mortgage.

        HSBC Bank USA – When you open a First Home Club Savings Account, HSBC will match every dollar you deposit with $3, up to a maximum of $5,000 for a total of $6,667 in the account. Income restrictions are $49,440 for one-and two-person families and $56,856 for families of three and more. HSBC also offers loans with small down payments, low-interest rates or no closing costs. Call (888) 313-7247.

        M&T Bank – The bank’s Get Started loan program requires 1 percent down. The bank gives a loan separate from the mortgage to cover any additional down payment required and closing costs. A family of four or less must make under $40,650 to qualify. M&T offers another program where it will loan home buyers 103 percent of the purchase price so closing costs can be rolled into the mortgage. There are no income limits. Call 848-7600.

        Key Bank – The bank’s HomeAssist program requires no down payment or private mortgage insurance. The interest is at market rate. Income must be under $50,800, regardless of family size. Call 838-8732.

        Fleet Bank – The bank will give home buyers up to $3,000 to cover closing costs and the loan needs never be repaid. The home must be in certain census tracts and the buyer’s household income must be under $50,800, regardless of size. Call 847-4150.

        First Niagara Bank – Through its Flex 97 program, the bank requires only 3 percent down, instead of its typical 5 percent. The bank also gives home buyers another loan of up to 6 percent of the purchase price to cover closing costs at the same interest rate as the mortgage. If the home is in a low to moderate income census tract, First Niagara reduces the mortgage rate by 0.5 percent.

        The buyer’s household income must not exceed $40,640, regardless of size. Call 625-7500.

        Charter One Bank – Charter One’s Home Ownership Assistance Program has no closing costs, except for prepaid items such as the first year’s taxes and insurance. The banks pays the private mortgage insurance. The interest rate is at the market rate, which is now 6.375 percent, but buyers can reduce that interest rate buy buying down points. Home buyers can put as little as 3 percent down and Charter One will match your down payment up to $2,000, which never needs to be repaid.

        If you are buying a home in a low to moderate income census track, no income restrictions apply. Otherwise, the income restriction for the program is $58,400, regardless of household size. Call 630-2120 or 630-2142.

        SONYMA – The State of New York Mortgage Agency provides financing for home buyers who meet income limits and other criteria. Call 853-1548 or visit www.nyhomes.org/suny/sonyma.html.

        FHA – The Federal Housing Authority provides government-backed loans to higher-risk, low-income home buyers who might not otherwise qualify for a conventional mortgage. Contact your local bank for more information. Most lenders participate in the program.

Now that winter is here and so are the big utility bills, we thought that this article originally printed in the May 2002 Dandelion Connection bears repeating. Remember, NEVER IGNORE A UTILITY SHUT-OFF!

Why? First, the sooner you deal with debts that you may have, the easier it will be, and the better it will be for your credit history. Second, it is especially important to deal with gas or utility shut-offs immediately so that you can maintain service, avoid hefty turn-on fees later, or avoid the risk of not being able to have your utility turned on when you really need it. Furthermore, a shut-off notice received in May and then ignored until November when it starts to get cold again will be very difficult to deal with. This article will provide you with information on what to do when you get a termination notice from the utility company.

You should take these steps, in this order:

(1) Go to the gas company and ask to make a “Deferred Payment Arrangement,” (DPA), with them. If you are very low income, they may offer you a plan to pay your current monthly bills, plus $10.00 extra. If the gas company will not offer you a DPA, ask for the reasons for the denial in writing.

(2) Apply for HEAP benefits. Go to DSS located at the Rath Building 1^st floor, at 95 Franklin Street, Buffalo, NY, Monday through Friday if you get public assistance or Food Stamps. If not, go to 291 Pearl Street .

(3) After you apply for HEAP, apply for emergency assistance through DSS. This is separate from HEAP. First get HEAP and then apply for emergency assistance at Window 7 at the Rath Building.

If you are not on public assistance and your utilities have already been or are about to be shut off, you may still be eligible for assistance. You should apply immediately for emergency assistance because in some cases it is only given to applicants for four months immediately proceeding your application. This means that if your gas was shut off in May, and you go to DSS for emergency utility assistance in November, you may not be eligible for emergency assistance.

In many cases, yes. If you are on public assistance, and it is determined that your grant was used improperly, you may be recouped. If you are recouped, 10% of your grant each month will be taken out to repay the assistance received. If you are not on public assistance, depending on your household income, you may have to repay the grant by entering into a 12-month repayment agreement with DSS. In some cases, DSS may be able to take a lien on your home.

If you fail to keep the emergency assistance re-payment agreement and you need emergency assistance for utilities at a future date, your emergency application will be denied. However, if you go back on public assistance or have an income below the public assistance guidelines, you will still be eligible.

Yes. You are still eligible for emergency assistance for utilities even if you are currently on a public assistance sanction.

DSS cannot deny emergency assistance because you have a positive cash flow. Contact Neighborhood Legal Services at 847-0650 and request an expedited Fair Hearing.

You must bring:

(1) Proof of I.D;
(2) Proof of all income and expenses for at least 8 weeks;
(3) Receipts for current bills; rent, etc.;
(4) A completed application for emergency assistance;
(5) A statement from NFG stating that they will not offer you a payment arrangement and why;
(6) A HEAP denial letter if there is one; and
(7) A deed to your house (if you own it).

Yes. For more information, contact Project Dandelion, or visit the “Neighborhood Legal Services’’ website at www.nls.org, click on “Public Benefits.” We outline community programs that help low-income consumers with utility problems. These programs often change due to eligibility and availability, so make sure to call the numbers listed for more information.

The Asset Building Coalition of WNY Urges Use of Free Tax Assistance Sites in Erie County.

You can have your federal and state tax returns prepared and filed electronically for FREE at Volunteer Income Tax Assistance (VITA) sites located throughout Erie County. Please call 1-800-829-1040 for the site nearest you. VITA staff has been trained by the IRS to prepare taxes free of charge. The centers are striving to maximize families’ returns. For example, the EITC is a refundable federal tax credit for low-income workers, providing up to $4,140 per year based on family size and income. In addition the child tax credit has been increased to up to $600 per child under the age of 17, and renter’s rebate is also available.

The Asset Building Coalition (ABC) of WNY is a community-based partnership of non-profit, government, financial and faith-based organizations that have joined together in an effort to increase economic opportunities for residents throughout the Western New York area. ABC members are committed to increasing the community’s awareness of the programs and services available while also working to develop and encourage new initiatives that will further build economic opportunities. Call 1-800-829-1040.

Do you need help with student loans?

Overwhelmed by paperwork from your loans? Did you pay for a vocational school, and never complete the course?
Are you delinquent with your payments? Are you in default? Are your wages being garnished?

Project Dandelion can help.

Income eligible clients can get free advice and assistance. Call to register for one of our free clinics. Clinics are held on the first TUESDAY of every month. Register today. We meet at 2:00 p.m. Call 847-0650 for more information.

Previous Dandelion Newsletters Table of Contents | Dandelion Home Page | Feedback