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Loan Limitations <br /> All loans provided under this program should not exceed 30% of the house sales price. The loan <br /> shall be either a deferred payment loan or an amortized loan over a period of forty (40) years. <br /> The loan shall be secured by a Deed of Trust and Promissory Note subordinate only to the first <br /> mortgage loan. Primarily, loan refinancing to lower interest rates and for home improvements <br /> will be reviewed by the County. Refinancing for debt consolidation will not be permitted. The <br /> loan may not be refinanced or assumed without the prior consent of the County. There should be <br /> no additional encumbrances against the property during the term of the Loan without the prior <br /> consent of the County. <br /> Recapture/Resale Provisions <br /> All financial contributions provided by the County will be provided as a deferred second loan <br /> secured by a forty (40) year Deed of Trust and Promissory Note, forgivable at the end of 40 <br /> years. This Deed of Trust and Promissory Note shall constitute a lien on the Property; <br /> subordinate only to private construction financing or permanent first mortgage financing. <br /> The period of affordability will be 99 years and each individual housing unit will be secured by a <br /> Declaration of Restrictive Covenants that will incorporate a right of first refusal that may be <br /> exercised by a sponsoring non-profit organization and/or Orange County. <br /> The non-profit organization and/or the County as applicable retains full responsibility for <br /> compliance with the affordability requirement for assisted units throughout the term of <br /> affordability, unless affordability restrictions are terminated due to the sale of the Property to a <br /> non-qualified buyer. <br /> If the buyer no longer uses the Property as a principal residence or is unable to continue <br /> ownership, then the buyer must sell, transfer, or otherwise dispose of the Property only to a <br /> qualified homebuyer, i.e., a low-income household, one whose combined income does not <br /> exceed 80% of the area median household income by family size, as determined by the U.S. <br /> Department of Housing and Urban Development at the time of the transfer, to use as their <br /> principal residence. <br /> However, if the property is sold during the term of affordability to a non-qualified homebuyer, <br /> the Right of First Refusal provision of the New and Existing First-Time Homebuyer Program <br /> portion of the County's Long-Term Housing Affordability Policy must be followed and the net <br /> sales proceeds (sales price less selling costs and 1st mortgage payoff) or "equity", after <br /> repayment, if required by the Note and Deed of Trust, of the initial County contribution, will be <br /> divided 50150 by the seller of the Property and the County. If the initial County contribution <br /> does not have to be repaid because the sale occurs more than forty years after the County <br /> contribution is made, then the seller of the Property and the County will divide the entire equity <br /> realized from the sale. <br /> 2 cmmrevgd.doc <br /> 04/11/00 <br />