Home$tart - Compliance

To ensure compliance with the terms of the Home$tart Program, members must submit the following documentation for each homebuyer receiving a Home$tart grant:

• Within 30 days of the Home$tart grant disbursement: Final HUD-1 settlement statement. The HUD-1 settlement statement:
  • Must be stamped as FINAL and signed by all parties.
  • Must clearly identify the Home$tart grant amount (e.g., “Federal Home Loan Bank of Seattle grant” or “Home$tart Program grant”).
  • Must confirm that “cash-to-borrower” did not exceed $250. Members must provide documentation in the form of a check and a statement/letter instructing the mortgage holder to apply any funds in excess of $250 toward principal reduction or as a credit toward monthly payments.
    
    Note: Homebuyers may not under any circumstances, receive more than $250 cash back at closing, even if the funds belong to the homebuyer (i.e., earnest money). Any amount in excess of $250 must be used to reduce the mortgage principal or be applied as a credit toward monthly mortgage payments.
• Within 90 days of the Home$tart grant disbursement: A recorded Seattle Bank Deed of Trust and Retention Agreement. This agreement ensures that a pro-rata share of the Home$tart grant will be returned to the Seattle Bank if the Home$tart-assisted home is sold before the end of the five-year retention period.
  
  Exception: Members are permitted up to 180 days to provide a recorded Seattle Bank Deed of Trust and Retention Agreement for homes purchased in Multnomah County, Oregon, or located in the state of Hawaii.
• Semi-annually: Certify homebuyer status.

Please Note:

• The Seattle Bank Deed of Trust and Retention Agreements must be submitted on the most current forms. Click on the appropriate state to download a Seattle Bank Deed of Trust and Retention Agreement:
  • Alaska (doc)
  • Hawaii (doc)
  • Idaho (doc)
  • Montana (doc)
  • Oregon (doc)
  • Utah (doc)
  • Washington (doc)
  • Wyoming - Mortgage (doc)
• The Seattle Bank Deed of Trust and Retention Agreement must be recorded as a separate lien.

The Seattle Bank will request semi-annual certifications around the end of June and December to verify whether enrolled households remain interested in receiving the Home$tart grant.

If you have questions regarding compliance, please refer to our Home$tart and Home$tart Plus Member Policies and Procedures (pdf), or contact Community Programs Analyst Craig Horton (206.340.2436).