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56 <br /> 4. Plans for using HOME funds to refinance existing debt secured by multifamily housing <br /> that is rehabilitated with HOME funds along with a description of the refinancing <br /> guidelines required that will be used under 24 CFR 92.206(b), are as follows: <br /> Homebuyer housing with a recapture agreement is not subject to the affordability requirements <br /> after the Pi has recaptured the HOME funds in accordance with its written agreement. If the <br /> ownership of the housing is conveyed pursuant to a foreclosure or other involuntary sale, the Pi <br /> must attempt to recoup any net proceeds that may be available through the foreclosure sale. <br /> Because all recapture provisions must be limited to net proceeds, the Pi's repayment obligation <br /> is limited to the amount of the HOME subsidy, if any, that it is able to recover. <br /> The written agreement between the homebuyer and the Pi, as well as mortgage and lien <br /> documents are typically used to impose the recapture requirements in HOME-assisted <br /> homebuyer projects under recapture provisions.The purpose of these enforcement mechanisms <br /> is to ensure that the Pi recaptures the direct subsidy to the HOME-assisted homebuyer if the <br /> HOME-assisted property is transferred. Unlike the resale option, deed restrictions, covenants <br /> running with the land,or other similar mechanisms are not required by the HOME rule to be used <br /> in homebuyer projects under the recapture option. However, many Pi's choose to use these <br /> mechanisms for enforcing the affordability period and as notification of the transfer of the <br /> property. <br /> Discussion <br /> Not Applicable. <br /> Annual Action Plan 47 <br /> OMB Control No:2506-0117(exp.07/31/2015) <br />