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16 <br /> (i)To preserve the affordability of HOME-assisted housing a participating jurisdiction may use additional <br /> HOME funds for the following costs: <br /> (A)The cost to acquire the housing through a purchase option, right of first refusal, or other preemptive <br /> right before foreclosure, or at the foreclosure sale. (The foreclosure costs to acquire housing with a <br /> HOME loan in default are eligible. However, HOME funds may not be used to repay a loan made with <br /> HOME funds.) <br /> (B)The cost to undertake any necessary rehabilitation for the housing acquired. <br /> (C)The cost of owning/holding the housing pending resale to another homebuyer. <br /> (D)The cost to assist another homebuyer in purchasing the housing. <br /> (ii) When a participating jurisdiction uses HOME funds to preserve the affordability of such housing,the <br /> additional investment must be treated as an amendment to the original project.The housing must be <br /> sold to a new eligible homebuyer in accordance with the requirements of§ 92.254(a) within a <br /> reasonable period of time. <br /> (iii)The total amount of the original and additional HOME assistance may not exceed the maximum per <br /> unit subsidy amount established under§ 92.250. Alternatively to charging the cost to the HOME <br /> program under§ 92.206,the participating jurisdiction may charge the cost to the HOME program under <br /> § 92.207 as a reasonable administrative cost of its HOME program, so that the additional HOME funds <br /> for the housing are not subject to the maximum per-unit subsidy amount.To the extent administrative <br /> funds are used,they may be reimbursed, in whole or in part, when the housing is sold to a new eligible <br /> homebuyer. <br /> (b)Rehabilitation not involving acquisition.Housing that is currently owned by a family qualifies as <br /> affordable housing only if: <br /> (1)The estimated value of the property, after rehabilitation, does not exceed 95 percent of the median <br /> purchase price for the area, described in paragraph (a)(2)(iii) of this section; and <br /> (2)The housing is the principal residence of an owner whose family qualifies as a low-income family at <br /> the time HOME funds are committed to the housing. In determining the income eligibility of the family, <br /> the participating jurisdiction must include the income of all persons living in the housing. <br /> (c)Ownership interest.The ownership in the housing assisted under this section must meet the <br /> definition of"homeownership" in § 92.2, except that housing that is rehabilitated pursuant to paragraph <br /> (b) of this section may also include inherited property with multiple owners, life estates, living trusts and <br /> beneficiary deeds under the following conditions.The participating jurisdiction has the right to establish <br /> the terms of assistance. <br /> (1)Inherited property. Inherited property with multiple owners: Housing for which title has been passed <br /> to several individuals by inheritance, but not all heirs reside in the housing, sharing ownership with <br /> other nonresident heirs. (The occupant of the housing has a divided ownership interest.)The <br /> participating jurisdiction may assist the owner-occupant if the occupant is low-income, occupies the <br /> housing as his or her principal residence, and pays all the costs associated with ownership and <br /> maintenance of the housing (e.g., mortgage, taxes, insurance, utilities). <br />