Good Neighbor Gift Guidelines

I. Eligible Projects

Eligible candidates are those who graduated in the last two years with an associates, bachelor, master, or doctoral level degree, from a postsecondary accredited institution. Additional, eligible candidates include; first-time homebuyers, active military personnel, military personnel that have been discharged in the last two years, law enforcement officers, parochial or public school district employees (pre-kindergarten through secondary schools only), fire fighters or emergency medical technicians (EMTs), and all City of Ferguson employees. Providing documentation and proof of candidate eligibility will be required.

II. Applicant Requirements

Qualified applicants must be prequalified for home purchase and must already be working with a realtor, and/or have a home under contract. To qualify, Candidates must also obtain FNIP approval prior to the closing date on the property.

III. Acceptable Uses of Fund

The "gift" is a $3,500 forgivable loan that can be applied by the recipients toward the purchase of a home within the city limits of Ferguson. It can be used as part of the down payment, closing costs, or for rehabilitation and repairs to the property.

IV. Terms of the Fund

1. A completed and signed copy of the closing statement will be required for reimbursement. Direct payment to the closing title company is also possible if required. The title company closing agent will need to contact FNIP.
   
2. The gift is structured as a one-time forgivable loan with a term of three (3) years. The recipient will not have to pay back the gift as long as he/she remains in the home as his/her principal residence for three years from the date of closing. The forgivable loan will be prorated over the three-year term of the note. For example, if a recipient sells, or moves out of the house in order to rent it out, after two years, he/she will refund one-third of the gift at the time the house is sold or rented out. The recipients will sign a promissory note indicating the terms of the gift. The note will be recorded with the City of Ferguson.
   
3. The recipients will have six months from notification to spend or at least encumber the funds. The FNIP Director may extend the six-month deadline to use the funds if it is determined that the recipient is working in good faith and making sufficient progress toward purchasing a home.
   
4. The recipients agree that their names may be used for the purpose of publicizing the Good Neighbor Gift.