Agenda - 04-04-2000-9b - Laserfiche WebLink

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5 At the time of resale of the subject property during the forty year affordability period, loan funds will be recaptured in full plus a 50/SO share of appreciation realized from the sale of the property. At the end of the twenty-year affordability period, a deferred loan may be re-negotiated with the property owner for au additional twenty year period or paid in full. If the loan is made as an amortized Ioan, the loan commitment will be fulfilled at the end of twenty years. Any proceeds from the recapture of funds under this provision will be used to facilitate the acquisition, construction, and/or rehabilitation of housing for the purposes of promoting affordable housing. Proper Standards All prospective property must be inspected for health and safety defects prior to purchase. The initial assessment is the responsibility of the sponsoring non-profit entity. At a minimum, the property must meet the HUD Section 8 Housing Quality Standazds (HQS) at the time of initial occupancy. If the dwelling fails to meet Section 8 Housing Quality Standazds (HQS) and repairs aze necessary; the sponsor is responsible for ensuring that the work is done properly. If the residential property rehabilitation is financed by the loan, progress payments will be processed for rehabilitation work with evidence that the work completed has been done satisfactorily. The sponsor must make this certification. In the event that the work certified as complete required the sponsor to obtain a building permit, certification must include evidence that the applicable Building Inspections Department has approved the work. Any representative of Orange County, Carrboro, Chapel Hill, or Hillsborough reserves the right to inspect the rehabilitation work in process when the sponsor requests partial payments. The final rehabilitation payment will be made when all repair work has been inspected by the appropriate Building Inspections Department to certify conformance with local building codes and minimum housing codes. The Orange County Housing and Community Development Department will certify conformity with the Section 8 Housing Quality Standards. In the event that property rehabilitation is not necessary, the sponsor will certify that the dwelling meets Section 8 Housing Quality Standards (HQS) prior to the disbursement of loan funds. Environmental Requirements Environmental review will begin at the time that the initial request for loan funds is submitted to the County.