Section 4: Down Payment Assistance
Down Payment
For this section, the phrase “down payment” means the amount
paid towards the cost of the DSS dwelling actually purchased and
occupied, including the actual required incidental expenses associated
with the purchase.
Eligibility for payment
A 90-day tenant-occupant displaced from a dwelling is eligible for down payment assistance not to exceed
$9,570
.A displaced person eligible to receive a payment as a 90-day owner-occupant (homeowner or mobile homeowner) is not eligible for this down payment assistance, except for purchasing a mobile home site when the displacement site is rented.
Amount of payment
An eligible displacee who purchases a replacement dwelling is entitled to down payment assistance not to exceed the lesser of:
- For a 90-day occupant:
- the actual rent supplement; or
- the cost of the DSS replacement dwelling including required incidental expenses.
- For a less than 90-day owner-occupant:
- the actual rent supplement; or
- the cost of the DSS replacement dwelling including required incidental expenses
At the discretion of TxDOT, and with advance approval from the ROW Program Office, a down payment assistance payment may be increased to any amount not to exceed
$9,570
. TxDOT shall apply this discretion in a uniform and consistent manner, so that eligible displacees in like circumstances are treated equally.This payment, however, may not exceed the payment that a less than 90-day owner-occupant would receive if the 90-day occupancy requirements were met. Use this option in a uniform and consistent manner.
Application of Payment
The full amount of the replacement housing payment for down
payment assistance must be applied to the purchase price of the
replacement dwelling and related incidental expenses.
Last Resort Housing
When the rent supplement exceeds
$9,570
, provisions of
> apply. A 90-day tenant-occupant may be paid a down payment in excess of $9,570
, but not to exceed the lesser of:- the actual rent supplement; or
- the cost of the DSS replacement dwelling including required incidental expenses.
Documentation
Document TxDOT’s files and claims for down payments with:
- a copy of the closing statement showing required signatures;
- the closing agent’s certification thatallfunds are paid as shown on the closing statement; and
- a copy of the approved rental supplement (form ).
Incidental Expenses
In the case of 90-day tenant-occupants, the down payment plus incidental expenses must not exceed the computed rent supplement. For a definition and detailed information on incidental expenses, see
.