Agenda - 05-07-2013 - 5e - 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 § 92.205(b). 2. If the participating jurisdiction (PI) will use HOME or ADDI funds for homebuyers, it must state the guidelines for resale or recapture, as required in § 92.254 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% or less of the area median for at least 99 years from the date of initial assistance. Riaht of First Refusal A right of first refusal or right to purchase is accomplished by means of a Declaration of Restrictive Covenants on the property purchased by the first -time homebuyer. Any assignment, sale, transfer, conveyance or other disposition of the property will not be effective unless the following procedures are followed. If the original homebuyer or any subsequent qualified homebuyer contemplates a transfer to a non low- income household, the buyer must send Orange County and /or the sponsoring nonprofit organization a notice of intent to sell at least 90 days before the expected closing date. If Orange County and /or the sponsoring nonprofit organization elect to exercise its right of refusal, it will notify the buyer within 30 days of its receipt of the notice and will purchase the property within 90 days. If neither Orange County nor the sponsoring nonprofit organization advises the buyer in a timely fashion of its intent to purchase the property, then the Buyer is be free to transfer the property in accordance with the equity sharing provisions described below. Eauity Sharina Orange County provides its financial assistance as deferred second loans secured by a 40 -year Deed of Trust and Promissory Note, forgivable at the end of 40 years. This Deed of Trust and Promissory Note constitute a lien on the property, subordinate only to private construction financing or permanent first mortgage financing. The 99 year period of affordability for each individual housing unit is secured by a declaration of restrictive 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 a non - qualified buyer. If the buyer no longer uses the property as a principal residence or 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 Y 2013 -2014 Action Plan 36