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4 <br />Loan-Limitations <br />All loans provided under this program shall not exceed 30% of the house sales price. The loan <br />shall be either a deferred payment loan or an amortized loan over a period of twenty years. The <br />loan shall be secured by a Deed of Trust and Promissory Note subordinate only to the first <br />mortgage loan. The loan may not be refinanced unless the new loan is obtained for the <br />purposes of home improvement only. Prior consent of the County is required under these <br />circumstances. Further, the loan may not be assumed without the prior consent of the <br />County. There should be no additional encumbrances against the property during the term of <br />the Loan without the prior consent of the County. <br />R 1 rviin <br />At the time of resale of the subject property during the twenty-year affordability period, loan <br />funds will be recaptured in full plus a 50% share of any appreciation realized from the sale of the <br />property. At the end of the twenty-year affordability period, a deferred loan may be re- <br />negotiated with the property owner for an additional twenty year period or paid in full. If the <br />loan is made as an amortized loan, the loan commitment will be fulfilled at the end of <br />twenty years. <br />Any proceeds from the recapture of funds under this provision will be used to facilitate the <br />acquisition, construction, and/or rehabilitation of housing for the purposes of promoting <br />affordable housing. <br />Pr <br />All prospective property must be inspected for health and safety defects prior to purchase. The <br />initial assessment is the responsibility of the sponsoring non-profit entity. At a minimum, the <br />property must meet the HUD Section 8 Housing Quality Standards (HQS) at the time of initial <br />occupancy. <br />If the dwelling fails to meet Section 8 Housing Quality Standards (HQS) and repairs are <br />necessary, the sponsor is responsible for ensuring that the work is done properly. If the <br />residential property rehabilitation is financed by the loan, progress payments will be processed <br />for rehabilitation work with evidence that the work completed has been done satisfactorily. This <br />certification must be made by the sponsor. In the event that the work certified as complete <br />required the sponsor to obtain a building permit, certification must include evidence that the <br />work has been approved by the applicable Building Inspections Department, Any representative <br />of Orange County, Carrboro, Chapel Hill, or Hillsborough reserves the right to inspect the <br />rehabilitation work in process when partial payments are requested by the sponsor. <br />The final rehabilitation payment will be made when all repair work has been inspected by the <br />appropriate Building Inspections Department to certify conformance with local building codes <br />and minimum housing codes. The Orange County Housing and Community Development <br />Department will certify conformity with the Section 8 Housing Quality Standards.