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C H C D <br /> ORANGE COUNTY HOUSING & COMMUNITY DEVELOPMENT <br /> religion , national origin , sex, familial status, and disability . <br /> What are the terms of assistance under ESFRLP ? <br /> The form of ESFRLP assistance is a 0 % interest, forgivable loan covering the hard costs associated with <br /> the rehabilitation of the home and a grant for the soft costs . These will be two separate documents or <br /> sets of documents . <br /> The loan : NCHFA will create loan documents for the homeowner ( s ) including a Promissory Note and <br /> Deed of Trust covering hard costs for the rehabilitation in an amount not to exceed $ 30, 000 . This loan <br /> covering the hard costs remains 0 % interest and -forgivable at $ 5 , 000 per year for as long as the owner <br /> resides in the home or until the balance is reduced to $ 0 . The term of the loan is dependent upon the <br /> loan amount and the number of years it takes to bring the balance of the loan to $ 0 when forgiven at <br /> $ 5 , 000 per year . For example , if the amount of the loan is $ 21 , 452 , then the term is eight ( 9 ) five ( 5 ) <br /> years : $ 20, 000 forgiven over the first four ( 4 ) years and $ 452 forgiven at the end of the-5th year . The <br /> maximum term of the loan will be six ( 6 ) years . <br /> As long as the borrower lives in the home , no payments on the loan will be required . If the recipient <br /> prefers , the loan can be paid off at any time to NCHFA, either in installments or as a lump sum payment . <br /> Furthermore , under certain circumstances NCHFA may allow assumption or refinancing of the loan . <br /> Should an heir inherit the property and choose to live in the house as their permanent residence , they <br /> may assume the loan without being income eligible . However, the lien remains on the property . A buyer <br /> who may wish to buy the property to live in may assume the loan so long as they can document that <br /> they are income - eligible ( 80 % AMI ) . Default can occur if the property is sold or transferred to another <br /> person and /or if the borrower fails to use the home as a principal residence , without prior written <br /> approval of NCHFA . <br /> The grant : To pay for soft costs including application outreach / intake/ management, environmental <br /> reviews/ inspections/testing and project assessment/documentation / estimating/ bidding, NCHFA will <br /> create a Grant Agreement not to exceed $ 10 , 000 . The grant has no repayment or recovery terms . <br /> What kinds of work will be done ? <br /> Each house selected for assistance must be rehabilitated to meet ESFRLP Rehabilitation Criteria . That <br /> means every house must, upon completion of the rehabilitation : <br /> • Meet the more stringent requirements of either NCHFA ' s Essential Property Standard or Orange <br /> County ' s Minimum Housing Code . These are so - called " habitability standards " that set minimum <br /> standards for decent, safe and sanitary living conditions . Additionally, the home must meet <br /> applicable Lead Based Paint regulations 24 CFR Part 35 . <br /> • Retain no " imminent threats " to the health and safety of the home ' s occupants or to the home ' s <br /> " structural integrity " . An example of an imminent threat to occupants as well as to the home ' s <br /> structural integrity is an infestation of insects or a crawlspace that is too damp . <br /> These requirements are spelled out in full in the ESFRLP Administrator ' s Manual which you may view, at <br /> reasonable times , upon request , at the Housing and Community Development office of Orange County <br /> or anytime online at www . nchfa . com <br />