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Section 4: Down Payment Assistance

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Down Payment

For this section, the phrase “down payment” means the amount ordinarily required to obtain conventional loan financing for the DSS dwelling actually purchased and occupied. For this section, the phrase “down payment” means the amount paid towards the cost for the DSS dwelling actually purchased and occupied and actual required incidental expenses associated with the purchase.

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Eligibility for payment

A 90-day tenant-occupant displaced from a dwelling is eligible for down payment assistance not to exceed $7,200.

A displaced person eligible to receive a payment as a 90-day owner-occupant (home owner or mobile home owner) is not eligible for this down payment assistance, except for purchasing a mobile home site when the displacement site is rented.

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Amount of payment

An eligible displacee who purchases a replacement dwelling is entitled to down payment assistance not to exceed the lesser of:

At the discretion of the department, and with advance approval from ROW Division HQ, a down payment assistance payment may be increased to any amount not to exceed $7,200. 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.

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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.

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Last Resort Housing

When the rent supplement exceeds $7,200, provisions of Last Resort Housing apply. A 90-day tenant-occupant may be paid a down payment in excess of $7,200, but not to exceed the lesser of:

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Documentation

Document the department’s files and claims for down payments with:

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  • a copy of the closing statement showing required signatures;
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  • the closing agent’s certification that all funds are paid as shown on the closing statement; and
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  • a copy of the approved rental supplement (Form ROW-R-107).
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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 Incidental Expenses- 90-Day Owner-Occupants.

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