99- 346 C.M.R. ch. 1, § 3 - Acquisition Cost

A. Acquisition Cost Limits. Unless otherwise permitted by MaineHousing, a residence will not qualify as an Eligible Residence if the acquisition cost of the residence exceeds acquisition cost limits established under § 143 of the Internal Revenue Code. MaineHousing may set lower acquisition cost limits for a particular phase of its Home Mortgage Program after consideration of availability of volume cap pursuant to § 146 of the Internal Revenue Code and market conditions, including without limitation, interest rates, availability of housing, and acquisition costs. Acquisition cost limits may vary by geographic area and number of units in a residence.

B. Determination of Acquisition Cost. Section 143 of the Internal Revenue Code governs the determination of the acquisition cost.

C. Included Costs. Generally, the acquisition cost includes the following:

(1) all amounts paid in cash or in kind for the residence;

(2) the reasonable cost of completing the residence; and

(3) the capitalized value of any ground rent.

D. Excluded Costs. Generally, the acquisition cost does not include the following:

(1) the value of personal property not affixed to the residence;

(2) usual and reasonable settlement or financing costs such as origination fees paid by the Borrower to the Lender, title insurance fees, survey fees, credit report fees, appraisal fees, and attorneys' fees;

(3) the value of services performed by the Applicant or members of the Applicant's family in completing the residence; and

(4) the cost of land which has been owned by the Applicant for at least 2 years prior to the date construction of the residence begins.

Notes

99- 346 C.M.R. ch. 1, § 3