Orange County NC Website
Browse       Search
DocuSign Envelope ID:847BA5A1-CA01-4305-A31D-3C3DABB304E8 <br /> SECTION 4 ENFORCEMENT OF AFFORDABLE HOUSING REQUIREMENTS <br /> A. The following provisions apply throughout the duration of the HOME Affordability Period, <br /> which is years. <br /> I. Owner shall ensure all buyers occupy the Property as their principal residence <br /> throughout the HOME Affordability Period. In the event the original homebuyer no <br /> longer occupies the unit as their principal residence (i.e., the unit is rented or vacant) <br /> during the HOME Affordability Period, the homeowner will be in violation of the <br /> terms of the HOME assistance, and the County may enforce the terms of the <br /> DEVELOPMENT AGREEMENT and/or the Homeowner Written Agreement <br /> between Owner and a buyer to require repayment of any outstanding HOME funds <br /> invested in the Project dwelling unit. The amount subject to repayment is the total <br /> amount of HOME funds invested in the Project dwelling unit (i.e., any HOME <br /> development subsidy to the developer plus any HOME direct assistance provided to <br /> the homebuyer)minus any HOME funds already repaid(i.e.,payment of principal on <br /> a HOME loan). Noncompliance with principal residency requirements by a <br /> homebuyer is not considered a transfer and is not subject to resale provisions. <br /> 2. Resale Provisions During HOME Affordability Period. If a buyer sells, transfers, or <br /> otherwise disposes of their interest in the Property during the HOME Affordability <br /> Period, they must contact the County or its designated representative in writing at <br /> least thirty(30) days prior to selling, transferring, or disposing of their interest in the <br /> Property. Subsequent purchasers of the Property must be a low-income household, <br /> i.e., one whose combined income does not exceed 80% of the area median household <br /> income by family size, as determined by the U.S. Department of Housing and Urban <br /> Development at the time of the sale or transfer, and use the Property as their principal <br /> residence. The County shall ensure a fair return on investment for the original <br /> homebuyer and that the sale prices of the Property be Affordable to the subsequent <br /> purchaser; for purposes of this subsection, "Affordable" is defined as limiting the <br /> Principal, Interest, Taxes and Insurance (PITI) amount to no more than 30% of the <br /> new purchaser's monthly income. The County shall calculate the fair return on <br /> investment by: (1) determining the amount of market appreciation, if any, realized <br /> over the ownership term by calculating the difference between the initial appraised <br /> value of the Property at purchase and the current appraised value of the Property at <br /> resale, which figure shall serve as the basis for calculating the fair return on <br /> investment, and(2) multiplying the basis by the Federal Housing Finance Agency's <br /> Housing Price Index (HPI) to determine the fair return to the homeowner, which HPI <br /> is available at https://www.fhfa.gov/DataTools/Tools/Pages/HPI-Calculator.aspx. The <br /> County shall calculate the resale price to the next homebuyer, by adding the fair <br /> return on investment to the homeowner to the original affordable price of the home at <br /> purchase by the original buyer. In the event the resale price required to provide a fair <br /> return exceeds the affordability to a range of low-income buyers, additional HOME <br /> funding will be provided to the subsequent buyer based on the level of funds required <br /> to make the unit Affordable. <br /> 20 <br />