Orange County NC Website
covering the hard costs associated with the rehabilitation of the home. The loan will be <br /> forgiven at$3,000 per year. <br /> As long as the borrower lives in the home, no payments on the loan will be required. If <br /> the recipient prefers, the loan can be paid off at any time, either in installments or as a <br /> lump sum payment. Furthermore, no payment will be required as long as the house <br /> continues to be both owned and occupied by the household whose income is less than <br /> 80% of the area median income. That means a buyer who may wish to buy the property <br /> to live in, may upon Agency approval, "assume" the loan, and make no payments, so <br /> long as they can document that they are income-eligible. Should an heir inherit the <br /> property and choose to live in the house as their permanent residence, they may assume <br /> the loan without being income eligible. However, the lien remains on the property. A <br /> buyer who may wish to buy the property to live in may assume the loan as long as they <br /> can document that they are income-eligible (< 80% AMI). Default can occur if the <br /> property is sold or transferred to another person and/or if the borrower fails to use the <br /> home as a principal residence, without prior written approval of the North Carolina <br /> Housing Finance Agency. <br /> Orange County will offer, subject to NCHFA approval and homeowner acceptance, the <br /> possibility of having access to the Duke Power Loan Pool to finance certain energy <br /> related costs if the lowest bid exceed the cost limits of the SFR Program. This will be on <br /> a case by case basis. <br /> What kinds of work will be done? Each house selected for assistance must be <br /> rehabilitated to meet all SFR Rehabilitation Standards. This means every house must, <br /> upon completion of the rehabilitation: <br /> • Meet the US Department of Housing and Urban Development ("HUD") Section 8 <br /> Housing Quality Standards including applicable Lead-Based Paint regulations 27 <br /> CFR part 35, and Orange County's Minimum Housing Code. (These are so- <br /> called "habitability standards" which set minimum standards for decent, safe and <br /> sanitary living conditions.) <br /> • Meet or exceed NCHFA Energy-Efficiency Standards. (These are standards <br /> designed to save energy and save you money on your monthly utility bills. They <br /> also result in healthier and more comfortable homes.) <br /> • Meet or exceed SRF "Written Rehabilitation Standards" (These standards are <br /> designed to ensure greater durability) <br /> • Retain no "imminent threats" to the occupants of the home or to the home's <br /> "structural integrity". (An example of an imminent threat to occupants as well as <br /> to the home's structural integrity is a crawlspace that is too damp. In time the <br /> dampness may provide an invitation for the growth of mold and mildew as well as <br /> promote damage to the framing from termites and fungi.) <br /> These requirements are spelled out in full in Orange County's SFRLPI4 Administrator's <br /> Manual which you may view, at reasonable times, upon request, at the County's office or <br /> at the North Carolina Housing Finance Agency's website www.nchfa.com under forms <br /> and documents SFRLPI4. <br /> 4 <br />