Agenda - 05-03-2011 - 5f - Laserfiche WebLink

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orange County HOME Consortium Response: The Consortium does not propose to invest HOME funds in activities that are not described in ~ 92,~05~b}, 2, If the participating jurisdiction ~P~} will use HOME or ADDI funds for homebuyers, it must state the guidelines far resale or recapture, as required in ~ 9Z,~54 of the HOME rule. orange County HOME Consortium Response: All properties receiving financial assistance from Orange County;,,for homeownership activities must ensure that the housing remain affordable to families with incomes of 80°/0 or less of the area median for at least 99 years ;:frame the date of initial assistance. Right of First Refusal A right of first refusal or right to purchase is accomplished by mea~ns~~of a Qeclaration of Restrictive Covenants on the property purchased by the first-time homebuyer, Any assignment, sale, transfer, conveyance or other disposition of the prnp~r~y will not be effective unless the following procedures ire' followed. '` If the original homebuyer or any subsequent qu~~~f~ed homebuyer contemplates a transfer to a non low-income household, the buyer mint send grange County and/or the sponsoring nonprofit organization a notice of intent to~sell at least 90 days before the expected closing date, If Cringe ` Co~i~ty. _ and/or the sponsoring nonprofit organization elects to exercise its rigs of refuse, ~t :will nofify the buyer within 30 days of its receipt of the notice and will: purchase the property within 90 days, If neither Orange Cour~~y:nor ate sponsoi~in~` nonprofit organization advises the buyer in a timely fashion oi= its intend f~_ purchas~(~he property, then the Buyer is be free to transfer the proper in accordance with` tl~~o equity sharing provisions described below, The 99 year ~~o~iod o~ affordability for each individual housing unit is secured by a declaration of resrlct~ve covenants that incorporate a right of first refusal that may be exercised by a sponsoring nonprofit organization and/or Orange County. This declaration of restrictive covenants is further secured by a deed of trust, The nonprofit organization and/or the County are responsible for compliance with the affordability requirement throughout the affordability period, unless affordability restrictions are terminated due to the sale of the property to anon-qualified buyer. If the buyer no longer uses the property as a principal residence ar is unable to continue ownership, then the buyer must sell, transfer or otherwise dispose of their interest in the property to a new homebuyer whose annual income does not exceed 80°/0 of the area median. However, if the property is sold during the affordability period to anon-qualified homebuyer to be used as their principal residence, the net i=Y ~D~. ~-~01~ Action Plan 38