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Attachment VIII 35 <br />1. CHT works with homeowners, lenders and legal counsel when owners <br />are in default to prevent foreclosure; <br />m. CHT strives to prevent foreclosures by paying off bank loans, <br />terminating ground leases, and reacquiring properties. Paying off <br />bank loans requires that CHT maintain adequate liquid reserves; <br />n. CHT occasionally is required to take legal action against owners who <br />are in breach of their ground lease; <br />o. CHT oversees repairs to homes before reselling them to low and <br />moderate income buyers; <br />p. CHT is responsible for all resales of homes within its affordable <br />housing inventory. Owners of these homes do not pay a commission <br />to CHT; <br />q. If necessary to sell a home, CHT pays a referral fee to Realtors who <br />provide an income - eligible buyer who closes on a CHT property; <br />r. CHT is responsible for financial management of its portfolio <br />s. CHT will earn /raise a portion of its operating revenues through earned <br />income on home sales, property management fees, ground lease fees, <br />fundraising and other means permissible by the IRS; <br />D. Resources required by CHT - In order to successfully perform its roles <br />and responsibilities, CHT requires both financial operating support from County <br />and Towns, as well as input into decision - making, particularly with regard to <br />inclusionary ownership housing. Specifically, County and Towns agree to the <br />following: <br />I. Each local government will agree to a funding methodology that <br />provides additional operating support as new inclusionary homes <br />are added to the CHT inventory. It is recognized that this <br />methodology may vary for each of the participating govenments; <br />2. An agreed upon staff compensation formula that is based upon <br />compensation offered at County and Towns <br />3. An agreed upon level of operating reserves and project reserves <br />that rightfully should be maintained by CHT. As of the date of <br />this agreement, the board of directors of CHT has established <br />operating reserves of $350,000 and project reserves of $400,000 <br />4. CHT can be most effective if allowed flexibility to manage its <br />portfolio of affordable homes without constantly seeking <br />permission from County and Towns. Therefore, operating <br />guidelines will be developed for the following circumstances; <br />a. Selling homes to households above 80% of AMI <br />b. Selling homes out of the affordable housing inventory <br />c. Selling homes to households that do not meet locally <br />imposed requirements, such as first -time homebuyer <br />requirements, live /work requirements, etc. <br />in <br />