Policy - Orange County Assistance Policy for the 2017 Cycle of the Essential Single-Family Rehabilitation Loan Pool

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its predecessors), and who was discharged or released there from under conditions other than dishonorable. Recipients of assistance under ESFRLP will be chosen by the above criteria without regard to race, color, religion, national origin, sex, familial status and disability. What Are The Terms of Assistance Under ESFRLP17? The form of ESFRLP assistance is a 0% interest, forgivable loan covering the hard costs associated with the rehabilitation of the home and a grant for the soft costs. These will be two separate documents or sets of documents. The Loan: To provide assistance to households selected for the project, NCHFA will create loan documents including a Promissory Note and Deed of Trust covering hard costs for the rehabilitation in an amount not to exceed $25,000. This loan covering the hard costs remains 0% interest and forgivable at $3,000 per year for as long as the owner resides in the home or until the balance is reduced to $0. The term of the loan is dependent upon the loan amount and the number of years it takes to bring the balance of the loan to $0 when forgiven at $3,000 per year. For example, if the amount of the loan is $21,452, then the term is 8 ears ($21,000 forgiven over the first 7 years and $452 forgiven at the end of the 8 h year). The maximum term of the loan will be nine years. 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 to NCHFA, either in installments or as a lump sum payment. Furthermore, under certain circumstances NCHFA may allow assumption or refinancing of the loan. 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 so 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. The Grant: To pay for soft costs including application outreach/intake/management, environmental reviews/inspections/testing and project assessment/documentation/ estimating/bidding, NCHFA will create a Grant Agreement not to exceed $10,000. The grant has no repayment or recovery terms. What Kinds Of Work Will Be Done? Each house selected for assistance must be rehabilitated to meet ESFRLP17 Rehabilitation Criteria. That means every house must, upon completion of the rehabilitation: • meet the more stringent requirements of either NCHFA's Essential Property Standard or Orange County's Minimum Housing Code (These are so-called "habitability standards"which set minimum standards for decent, safe and sanitary living conditions.) Additionally, the home must meet applicable Lead- Based Paint regulations 24 CFR part 35. 4