S Housing - Assistance Policy for the 2014 Cycle of the Single-Family Rehabilitation Loan Pool - 10-7-2014 - 6f

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As long as the borrower lives in the home, no payments on the loan will be required. If the recipient prefers, the loan can be paid off at any time, either in installments or as a lump sum payment. Furthermore, no payment will be required as long as the house continues to be both owned and occupied by the household whose income is less than 80% of the area median income. That means a buyer who may wish to buy the property to live in, may upon Agency approval, "assume" the loan, and make no payments, so long as they can document that they are income-eligible. Should an heir inherit the property and choose to live in the house as their permanent residence, they may assume the loan without being income eligible. However, the lien remains on the property. A buyer who may wish to buy the property to live in may assume the loan as long as they can document that they are income-eligible (< 80% AMI). Default can occur if the property is sold or transferred to another person and/or if the borrower fails to use the home as a principal residence, without prior written approval of the North Carolina Housing Finance Agency. What kinds of work will be done? Each house selected for assistance must be rehabilitated to meet all SFR Rehabilitation Standards. This means every house must, upon completion of the rehabilitation: • Meet the US Department of Housing and Urban Development ("HUD") Section 8 Housing Quality Standards including applicable Lead-Based Paint regulations 27 CFR part 35, and Orange County's Minimum Housing Code. (These are so- called "habitability standards" which set minimum standards for decent, safe and sanitary living conditions. )Housing Quality Standards will be replaced with the Uniform Property Condition Standards(UPCS) effective January 2015. • Meet or exceed NCHFA Energy-Efficiency Standards. (These are standards designed to save energy and save you money on your monthly utility bills. They also result in healthier and more comfortable homes.) • Meet or exceed SRF "Written Rehabilitation Standards" (These standards are designed to ensure greater durability) • Retain no "imminent threats" to the occupants of the home or to the home's "structural integrity". (An example of an imminent threat to occupants as well as to the home's structural integrity is a crawlspace that is too damp. In time the dampness may provide an invitation for the growth of mold and mildew as well as promote damage to the framing from termites and fungi.) These requirements are spelled out in full in Orange County's SFRLPI4 Administrator's Manual which you may view, at reasonable times,upon request, at the County's office or at the North Carolina Housing Finance Agency's website www.nehfa.com under forms and documents SFRLPI4. In addition to the above items that must be done to satisfy NCHFA requirements, the scope of work may also include certain items meant to enhance or protect neighborhood and unit property values, and/or home modifications designed to enable frail or disabled household members to function more independently. 4