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5 <br />2. In order for us to use the Rider, the County or Town must enter into a written agreement <br />stating that if it ever succeeds to our interest under our ground lease, the County or Town <br />and the Lessee agree to recognize one another under the terms of the Lease and the <br />Fannie Mae Rider. In plain English, this means that the County or Town must formally <br />agree that it will recognize the terms of the Rider should it ever inherit and become Lessor of <br />our land trust properties. <br />We recommend that both the Commissioners and Council approve the County and Town <br />entering into such an agreement and direct staff to work with the Home Trust to prepare the <br />necessary documents. <br />Summary: <br />Land trust buyers undergo the same loan qualification and underwriting. process as a private <br />sector buyer ---they must have good credit and demonstrate sound personal financial <br />management. However, because of our program's inability to use the Fannie Mae Rider, <br />our homeowners are at a competitive disadvantage when it comes to choice of lender, loan <br />program options, ability to refinance, and ability to access the limited equity they build in <br />their homes. <br />In addition, the ability of the Home Trust to provide housing options in Orange County could <br />be jeopardized if our lenders continue to tighten restrictions on our buyers. Clearly, credit <br />availability is critically important to the success of our program. <br />The position paper submitted with this request provides more detailed information about the <br />Fannie Mae Rider and how its use will enhance our ability to serve current and future Home <br />Trust homeowners. Many other Land Trust programs throughout the country have used <br />the Fannie Mae Rider for some time now without any significant adverse impact to their <br />affordable housing programs. We believe that the benefits of using the Fannie Mae Rider, <br />both to our homeowners and the larger land trust program, greatly outweigh the risks. We <br />request that the Town Council and County Commissioners approve the use of the Fannie <br />Mae Rider and instruct staff to draft appropriate documents to permit its use. <br />~~ . ~ ~~L~ <br />~~~ <br />