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15 <br /> ,&CHCD <br /> DRAHGECOUNTY HOUSING&CDNIM IHITYDEYELOPMiNT <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 five (5)years: <br /> $20,000 forgiven over the first four(4)years and $452 forgiven at the end of the fifth 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 <br /> minimum standards for decent, safe and sanitary living conditions.Additionally,the home must <br /> meet 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 /> In addition to the above items that must be done to satisfy NCHFA requirements,the scope of work may <br /> include approved items meant to reduce future maintenance and operational costs or to further protect <br /> homes from natural disasters and/or home modifications designed to enable greater accessibility for <br />