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34 <br /> Annual Action Plan. <br /> HOME Investment Partnership Program (HOME) <br /> Reference 24 CFR 91.220(1)(2) <br /> 1. A description of other forms of investment being used beyond those identified in Section 92.205 is <br /> as follows: <br /> The Orange County HOME Consortium use general revenue funds as its local match for HOME funds. <br /> Orange County also provides funds for additional administrative costs to operate the program above <br /> the 10% allowable cost that may be pulled from the HOME award. <br /> 2. A description of the guidelines that will be used for resale or recapture of HOME funds when used <br /> for homebuyer activities as required in 92.254, is as follows: <br /> HOME funds used for homeownership assistance require an Affordability Period based on the <br /> amount of HOME assistance. The Orange County HOME Consortium will use resale provisions to <br /> enforce the HOME Affordability Period for all homeownership projects, including those in which <br /> direct assistance is provided to the buyer and homeownership unit development. Under the resale <br /> provisions, if homebuyers assisted with HOME funds choose to sell their HOME-assisted property <br /> within the HOME Affordability Period,they must sell to qualified low-income buyers and the resale <br /> price will be determined according to a formula that ensures affordability to the new buyer and a <br /> fair return on investment to the original HOME-assisted buyer. <br /> The HOME Affordability Period for homeownership assistance is based on the level of assistance <br /> provided to fund a unit or as direct assistance to a buyer (see the chart below). Direct assistance to <br /> the homebuyer is defined as HOME funding that reduces the purchase price below fair market value <br /> and includes any down payment or subordinate financing provided on behalf of the purchase. Direct <br /> assistance does not include HOME funds provided to a developer to cover the unit production costs <br /> that do not reduce the purchase price below fair market value. <br /> HOME Funds Provided <br /> to a unit or as direct assistance to buyer HOME Affordability Period <br /> <$15,000 5 years <br /> $15,000—$40,000 10 years <br /> >$40,000 15 years <br /> Resale provisions are enforced through the use of a Deed of Restrictive Covenants signed by the <br /> homebuyer at closing. The Deed of Restrictive Covenants will specify: <br /> A. The length of the HOME Affordability Period (per the chart above); <br /> B. The home must remain the owner's principal residence throughout the HOME Affordability <br /> Period; and <br /> Annual Action Plan 30 <br /> FY 2022-2023 <br />