Agenda - 08-20-1997 - 9a - Laserfiche WebLink

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t 5 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 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. 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. Any representative of the Orange County, Carrboro, Chapel Hill and Hillsborough reserves the right to inspect the rehabilitation work in process when partial payments are requested by the sponsor. All HOME funds expended during rehabilitation will be secured by a Deed of Trust and Promissory Note. 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 as well as Minimum Housing Codes. The Orange County Housing and Community Development Department will certify conformity with the Section 8 Housing Quality Standards. After purchase, the buyer will be responsible for maintaining the dwelling unit in good condition throughout the affordability period. This requirement will be incorporated into all program loan documents. Property Values The value of the HOME assisted property to be acquired by a homebuyer must have a value that does not exceed 95% of the area median purchase price for that type of housing. HUD makes these purchase value limits available to all participating jurisdictions each year. Value must be established by: • An appraisal by a qualified appraiser. • Tax assessments may be used to establish value, but only if they are current and can be computed at 100%of market value. • Transfer of property that includes rehabilitation requires an appraisal. If rehabilitation is required, the appraised value of the property after rehabilitation cannot exceed 95% of the median area house value. (Note, the property value- not purchase price -must be equal to or less than 95% of median purchase price.) The after rehabilitation value estimate must be completed prior to the investment of HOME funds.