Agenda - 01-20-2000 - 9g - Laserfiche WebLink

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4 Loan Limitations All loans provided under this program shall not exceed 30% of the house sales price. The loan shall be either a deferred payment loan or an amortized loan over a period of twenty years. The loan shall be secured by a Deed of Trust and Promissory Note subordinate only to the first mortgage loan. The loan may not be refinanced unless the new loan is obtained for the purposes of home improvement only. Prior consent of the County is required under these circumstances. Further, the loan may not be assumed without the prior consent of the County. There should be no additional encumbrances against the property during the term of the Loan without the prior consent of the County. Recapture/Resale Provisions At the time of resale of the subject property during the twenty-year affordability period, loan funds will be recaptured in full plus a 50% share of any appreciation realized from the sale of the property. At the end of the twenty-year affordability period, a deferred loan may be ze- negotiated with the property owner for an additional twenty year period or paid in full. If the loan is made as an amortized loan, the loan commitment will be fulfilled at the end of twenty years. Any proceeds from the recapture of funds under this provision will be used to facilitate the acquisition, construction, and/or rehabilitation of housing for the purposes of promoting affordable housing. Property Standards All prospective property must be inspected for health and safety defects prior to purchase. The initial assessment is the responsibility of the sponsoring non-profit entity. At a minimum, the property must meet the HUD Section 8 Housing Quality Standards (HQS) at the time of initial occupancy. If the dwelling fails to meet Section 8 Housing Quality Standards (HQS) and repairs are necessary, the sponsor is responsible for ensuring that the work is done properly. If the residential property rehabilitation is financed by the loan, progress payments will be processed for rehabilitation work with evidence that the work completed has been done satisfactorily. This certification must be made by the sponsor. In the event that the work certified as complete required the sponsor to obtain a building permit, certification must include evidence that the work has been approved by the applicable Building Inspections Department. Any representative of Orange County, Carrboro, Chapel Hill, or Hillsborough reserves the right to inspect the rehabilitation work in process when partial payments are requested by the sponsor. The final rehabilitation payment will be made when all repair work has been inspected by the appropriate Building Inspections Department to certify conformance with local building codes and minimum housing codes. The Orange County Housing and Community Development Department will certify conformity with the Section 8 Housing Quality Standards.