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7 <br /> ,&CHC <br /> DRAHGECOUNTY HOUSING&CDNIM IHITYDEYELOPMENT <br /> • Oceanic and Atmospheric Administration or its predecessors), and who was discharged or <br /> released there from under conditions other than dishonorable. Provide DD-214 form to <br /> demonstrate. <br /> • Emergency:A situation in which a household member has an immediate threat of being evicted <br /> or removed from a home due to health or safety issues within a timeframe that the program <br /> can complete a repair to stop eviction or removal.These applications will be received at any <br /> time during the funding cycle and elevated based on the ability of the program to complete the <br /> work in a timely manner that meets the goal of assisting homeowners to remain in their home. <br /> This may be documented with a doctor's letter or eviction notice. <br /> Recipients of assistance under ESFRLP will be chosen by the above criteria without regard to race, color, <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 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 />