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M)c -,%, <br /> ORANGE COUNTY DOUSING & COMMUNITY DEVELOPMENT <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 /> household members to function more independently as they age . <br /> Once the rehabilitation is complete , major systems in the home that, with reasonable maintenance and <br />