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Rev August 8, 2018 <br />disburse the Loan funds to the Contractor, to pay for the rehabilitation or improvements <br />in accordance with the terms of the Contract for Rehabilitation Work. After payment of <br />costs of rehabilitation or improvement, any excess proceeds shall revert to County for <br />funding other deferred loans under the grant program and the Loan amount shall be <br />credited accordingly. <br /> <br />3. USE OF HOME FUNDS. The Owner and the Contractor agree that the HOME <br />assistance will be used to pay only the costs of rehabilitating or reconstructing the <br />Owner’s home, including hard costs (actual costs of construction) and soft costs (cost <br />associated with construction, including the environmental review of the Property, <br />evaluating the Property to determine the scope of work to be performed, inspecting the <br />Property for compliance with the work specifications and applicable codes). <br /> <br />4. PRINCIPAL RESIDENCE REQUIREMENT. This agreement shall remain in force <br />throughout the affordability period as long as the home remains the principal residence <br />of the Owner. Should the Owner not maintain the home as his/her principal residence, <br />or rent or sell the residence to another party, the Owner will be in breach of this <br />agreement and will be required to repay any amount that has not yet been forgiven, as <br />set forth in Section 13 of this Agreement, as of the day the home is no longer the <br />principal place of residence of the Owner. <br /> <br />5. LOW INCOME OWNER. The Owner attests, and the Contractor has verified, that the <br />Owner qualifies as a low-income individual or household as defined by the HOME <br />Program. “Low-income” is defined as an individual or household whose total income <br />does not exceed 80% of the Area Median Income (AMI) as defined by HUD. <br /> <br />6. HOUSING DETERMINED TO BE MODEST. The Owner agrees and the Contractor <br />has verified that the purchase price of the housing does not exceed 95 percent (95%) of <br />the median purchase price of homes for the area, as set forth in 24 CFR Part 92.254(a). <br /> <br />7. INSURANCE REQUIREMENT. The Owner must at all times during the duration of <br />this Agreement maintain a valid and current insurance policy on the home for the current <br />appraised or assessed value of the home. Failure to maintain a valid and current <br />insurance policy will be considered a breach of this Agreement, and the County will have <br />the right to foreclose on its mortgage lien if necessary to protect the HOME Program <br />investment. <br /> <br />8. PROPERTY STANDARDS. Pursuant to HOME Program rules, the property that is the <br />subject of this AGREEMENT must meet all State and local housing quality standards and <br />code requirements once rehabilitation or reconstruction is complete. If no such standards <br />or codes apply, the property must at a minimum meet the HUD Section 8 Housing <br />Quality Standards. <br /> <br />9. OCCUPANCY AND PROTECTION OF PROPERTY. During the construction, the <br />Owner shall take reasonable precautions to protect the Owner and his or her family and <br />their property. The Owner shall not interfere with the construction. <br />DocuSign Envelope ID: 62EC95C2-2AA8-49D7-B576-F94193C9DB65