Agenda - 12-07-1999 - 9c - Laserfiche WebLink

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5 period unless the property is sold. If the property is not sold, the loan is forgiven at the end of the 20 year term. If the property is sold during the 20 year period the loan becomes due and the. full amount of the CDBG subsidy must be repaid from the proceeds of the sale. However, if the property is sold to a subsequent qualifying first-time homebuyer, the subsidy is transferable to the new buyer. If the property is not sold to a first-time homebuyer, the subsidy repayment is returned to the County and must be used to assist another low income buyer. The seller is able to retain any proceeds from the sale above and beyond the repayment of the first and second mortgage repayments. Since 1996, approximately one (1) family has sold their homes and been required to repay the subsidy. Two (2) other families sold their homes to another low-income buyer and the subsidy has remained with the dwelling unit. Impact Fee Reimbursement Program The County Impact Fee Reimbursement Policy requires any organization requesting impact fee reimbursement to certify in writing, that, for owner-occupied housing, it will remain affordable to the anticipated beneficiary or beneficiaries for a period of a minimum of twenty (20) years or longer if required by applicable HUD policy. There is no document that requires repayment of the impact fee to the County if the property is sold within this time period. However, most families receiving the impact fee reimbursements have received second mortgages under either the HOME or CDBG Programs and thus have a required period of affordability. The Impact Fee Reimbursement Policy also requires any organization requesting impact .fee reimbursement for rental housing certify that the property will remain affordable for ninety-nine (99) years. The rental housing certification must be secured by a "deed covenant", requiring repayment to Orange County of the impact fee if the rental housing does not remain affordable during the period of affordability, which covenant will be further secured by a note and deed of trust. Evidence must be provided that agency and/or program guidelines are in place to assure affordability compliance. Housing Bond Program The evaluation criteria approved by the Board of County Commissioners in December 1998 has the following point structure. A. Affordability 30 points Income Targeting 20 points. Affordability 10 points B. Leveraging 20 points C. Design 10 points D. Community Sponsorship/Support 10 points E. Project Feasibility 15 points F. Developer Experience 15 points Of a possible total of 100 total points, ten (10) points awarded for affordability. If a proposed bond project is designed to remain affordable for over 40 years the full 10 points are awarded. Those designed to remain affordable for 31 - 40 years are rewarded five (5) points. The period of affordability will be reinforced by deed restrictions.