Homebuyer Requirements and Financial Assistance

Tuesday, July 11th, 2017

The homes that are acquired and rehabilitated by Lackawanna Neighbors, Inc. are funded by various state and federal funding sources and therefore the homes must be sold to individuals and families that meet certain family-income guidelines depending on the source of funding used.   For example, if the home was acquired and rehabilitated with HOME or CDBG funds through the city of Scranton, homebuyers must meet the current year HUD Family-Income Guidelines which are displayed below: (Effective April, 2018)

                                                                                          Household Size

                                                                                  1 Person        $37,150

                                                                                   2 Persons     $42,450

                                                                                   3 Persons     $47,750

                                                                                   4 Persons     $53,050

                                                                                  5 Persons      $57,300

                                                                                  6 Persons      $61,550

To prepare homebuyers for homeownership and to make them better homeowners, Lackawanna Neighbors and other agencies offering financial assistance to assist with homebuying, require potential homebuyers to complete Homeownership counseling prior to purchasing a home.  Classes are conducted by the following HUD certified counseling agencies:

NeighborWorks of NEPA –   To register for counseling, please phone 570.558.2490.

United Neighborhood Centers (UNC) 414 Olive St., Scranton, PA  18503 and 66 N. Church St., Carbondale, PA 18407.   To schedule an appointment with a counselor, please phone  570.343.8835.

Due to specific regulations of the funding sources used, other homebuyer requirements are as follows:

Homes purchased by income-eligible individuals and/or families must utilize the home as their PRIMARY residence for a period of 15 years which means that it can not be used for speculation purposes.  The homebuyer and/or their family members must live in the home during this affordability period and it can not be rented to others.  If the home is being resold within the 15 year affordability period, HUD recapture regulations and/or deed stipulations will apply to the resale.  This could mean that a pro-rated amount of the assistance may have to be repaid to the city of Scranton or in the case of deed stipulation, that the home must be resold to another income-eligible individual or family.  This regulation is enforced through a deed stipulation and/or mortgage placed on the property and you will not be able to sell the home unless you comply with this requirement.   Those interested in purchasing a home that is being “resold” by the original homebuyer during the affordability should consult with an attorney or title search company to see which option (recapture or resale) apply to the particular property being sold.

Lackawanna Neighbors does not provide financing for the purchase of the homes; however, down payment and closing cost assistance may be available through the following local government program:

City of Scranton’s Office of Economic and Community Development (OECD)  homebuyer program that offers forgivable grants up to $12,000 for down payment and closing cost assistance to income-eligible individuals and families that are purchasing homes in Scranton.   For information or to apply for financial assistance, please phone OECD at 570.348.4216 for further information.



Carbondale Revitalization Project

Wednesday, July 25th, 2007

Lackawanna Neighbors is happy to have the opportunity to undertake a Revitalization Project in the City of Carbondale. Drawing on our expertise and success in the revitalization of the City of Scranton’s Hill Neighborhood, Lackawanna Neighbors has joined forces with the City of Carbondale and the Greater Carbondale Community Development Corporation to plan, administer and manage the neighborhood revitalization project. As a state and locally designated Community Housing Development Organization (CHDO), Lackawanna Neighbors will undertake the project from the Commonwealth of Pennsylvania’s State HOME funds grant from the Department of Community and Economic Development. The grant funds will be used primarily to purchase and rehabilitate five to seven homes within targeted areas of Carbondale, focusing on single family, vacant properties that are in need of repair. The grant will also be used to market the completely renovated homes to individuals and families that meet the current state and federal income guidelines according to family size. Lackawanna Neighbors’ philosophy is to rehabilitate the homes to a higher than normal standard with new roofs, siding or exterior painting as needed, new windows, new heating systems, plumbing and electrical, kitchens, bathrooms, carpeting or refinishing of floors, etc. thus making the home like new and allowing the new owner to build equity in their “new” home without the fear or cost of major renovations or repairs for many years to come.

We at Lackawanna Neighbors have come to realize that healthy homes make healthy neighborhoods where it makes economic sense for people to invest their time, money and energy, and, a place where neighbors manage change successfully. Our revitalization strategies go beyond housing development activities and take into consideration a wide range of social and economic factors that are inter-related and integrated into each revitalization activity that will incentivize not only a community’s citizens and residents of its neighborhoods, but also the business community which prospers when their community prospers.

The following is an article that appeared in the Carbondale News on Wednesday, March 26, 2003.

“Providing further credence that there is strength in numbers, a cooperative partnership has been formed between local, public and private organizations to plan, administer and manage the neighborhood revitalization project in the City of Carbondale. Supporting this asset of strength is the extra ingredient of collective unity – a synergy of neighborhood, community and economic development activities working toward a common goal – creating and sustaining a better Carbondale for all.

The City of Carbondale, Lackawanna Neighbors, Inc., the Greater Carbondale Community Development Corporation, Neighborhood Housing Services of Scranton and the Carbondale Community Justice Council have entered into a cooperative agareement. This collaboration of public and private organizations will work toward improving the quality of life in the City of Carbondale by revitalizing existing housing stock, improving the stability and executing crime prevention strategies throughout targeted neighborhoods. A state grant from the Department of Community and Economic Development for $548,000 will be used primarily to purchase, rehabilitate and sell five to seven homes in targeted neighborhoods, focusing on vacant properties. Keith Tucker, Executive Director of Lackawanna Neighbors, Inc. adds, “The project will restore abandoned, deteriorating houmes into decent, owner-occupied housing for people of moderate means. Historically, programs like this have proven that personal accomplishment, pride and responsibility associated with home ownership extends throughout each selected neighborhood – it’s a domino effect of positive community progression and development.”

Lackawanna Neighbors, Inc. (LNI) organized in 1968, is a local non-profit housing development organization that revitalizes homes and residential neighborhoods. Under the partnership agreement, Lackawanna Neighbors will manage and administer the grant funds while assisting in identifying potential locations for inspection, acquisition and rehabilitation. Project consultant, David Cramer of Cramer Crystal, will provide assistance, guidance and direction.

The Greater Carbondale Community Development Corporation will work with Lackawanna Neighbors in identifying and selecting project locations while managing other revenue and cost associated elements of the program. Carbondale’s Community Development Corporation will be the entity to give final approval before any offer is made to purchase a property.

“The City of Carbondale’s revitalization program and cooperative agreement is a perfect example of how a collection of public and private organizations can collaborate and harness their distict resources into a single project. We are committed to turning eyesores into nice homes,” comments Nancy Perri, Director of the Office of Economic and Community Development.

What does revitalization mean to the City of Carbondale? “Requisite economic and community development,” says Cindy Klenk, president of Carbondale Chamber of Commmerce and member of the C.D.C. Project Committee.
“The revitalization project will allow the Chamber to promote the City of Carbondale in an increasingly progressive and esthetically pleasing limelight. Individuals, families and businesses evaluate these criteria when considering relocation options,” concluded Cindy.

Carbondale’s Community Justice Council will offer their resources and services dealing with legal/code issues on potential sites. “The Council is made up of a variety of representatives from local businesses, hospitals, crime watch groups, and other organizations. Our primary objective is improving the quality of life in Carbondale,” says Michele Bannon, city clerk.

A value-added service paralleling the projects development will be homebuyer counseling and education classes. Neighborhood Housing Services (NHS)is a nonprofit organization that focues on revitalizing communities in Lackawanna County and offering services and training that customers need to shop for, puchase, rehabilitate, insure and maintain a home. They are part of a national program, Neighborhood Reinvestment Corporation, that has successfully sold over 60,000 homes in the past ten years.

Kathleen Little, Executive Director of NHS, says, “We are thrilled to offer monthly workshops in Carbondale. There are so many housing opportunities within the city, with programs available to assist families with down payments and closing costs. Many families can own a home for about the same amount they pay for rental units.”

The workshops teach potential homebuyers how to become successful homeowners. The 6-hour “FastTrack” workshops will assess participant’s readiness to buy a home, assist them with budgeting and credit issues, give them options for financing a home, help them to select a home, and most importantly, provide them with the critical knowledge for maintaining their new home. The course is tailored to meet the participants’ needs, no matter what phase of home buying process they are in. Classes are scheduled the first two Tuesdays of each month.

“Carbondale’s neighborhood revitalization project is a win-win situtation for all involved. The new homeowner wins because he/she has achieved the American dream, becoming a homeowner. The City of Carbondale wins because where once was a neglected, run-down or long-time vacant structure, and in many instances a conduit for crime and drug trafficking, today exists a new or rehabilitated home, an additional new tax revenue stream and a healthier neighborhood. Lackawanna Neighbors and all participating organizations win because the projects accomplishments are economically, financially and emotionally tangible,” concludes Tucker of LNI.

Anyone interested in learning more about the project and associated services offered can contact Lackawanna Neighbors at 570.963.7616 or; Neighborhood Housing Services of Scranton at 570.558.2490; Carbondale Chamber of Commerce at 570.282.1690; City of Carbondale O.E.C.D. at 570.282.2882; or Carbondale Community Justice Council at 570.282.4633.”