Home$tart and Home$tart Plus - Compliance

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

  • Within 30 days of the Home$tart or Home$tart Plus grant disbursement: A final HUD-1 settlement statement. The HUD-1 settlement statement:
    • Must be marked/stamped as FINAL and signed by all parties.
    • Must clearly identify the Home$tart or Home$tart Plus grant (e.g., “Federal Home Loan Bank of Seattle grant” or “Home$tart grant”) and grant amount.
    • Must confirm that “cash-to-borrower” did not exceed $250. If “cash-to-borrower” does exceed $250, members must provide documentation in the form of a copy of the check and a statement from the principal mortgage holder showing that the funds in excess of $250 have been applied toward principal reduction or as a credit toward monthly payments.

      Note: Homebuyers may not receive more than $250 cash back at closing for any reason, even if the funds belong and are being returned to the homebuyer (i.e., earnest money).

  • Within 90 days of the Home$tart or Home$tart Plus grant disbursement: A recorded, compliant retention agreement must be provided to the Seattle Bank. This agreement ensures that a pro-rata share of the Home$tart or Home$tart Plus grant will be returned to the Seattle Bank if the Home$tart or Home$tart Plus-assisted home is sold before the end of the five-year retention period. Copies of the recorded retention agreement may be accepted for compliance purposes.

    Exception: Members are permitted up to 180 days to provide a recorded, compliant retention agreement for homes located in Multnomah County, Oregon, or the state of Hawaii.

  • Semi-annually: The Seattle Bank will request semi-annual certifications around the end of June and December to verify whether enrolled homebuyers are progressing toward home purchase and remain interested in receiving the Home$tart or Home$tart Plus grant.

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:

The Seattle Bank Deed of Trust and Retention Agreement or Seattle Bank-approved retention agreement must be recorded as a separate lien.

If you have questions regarding compliance, please refer to our Home$tart and Home$tart Plus Member Policies and Procedures (pdf), or contact Mandie Ludlam (206.340.2389).