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<br />purchase price. If they sold in year 3 they would owe principal plus 33.33% (1.5 X 22.22 = <br />33.33%) of the equity. <br /> <br />Starting in year six, the equity share will drop to 1 times the Agency's share of the <br />original purchase price. <br /> <br />Targeted Household: In year six (6) and following, for every year the household remains <br />employed with the City or school district, the Agency will forgive 10% of the principal on the <br />second. If the target household stays with the same employer for 15 years, the entire second <br />loan is forgiven. In conjunction with the equity participation structure, the Committee felt this <br />provided as strong an incentive as possible for the teacher or City Employee to not change <br />jobs. . <br /> <br />For non-targeted households the Agency's equity participation will be at 1.5 x our share <br />of the purchase price for the first five years. In year six and thereafter, if the <br />household sells to another household who meets the program's income requirements, <br />the equity participation will cease. If they sell to a household who does not income <br />qualify, they will owe a penalty equivalent to an equity share of 1 x the Agency's <br />original investment in the purchase price. <br /> <br />Fund Source and Affordability <br />The Redevelopment Agency Housing Fund is the major source, and can serve people up to <br />120% of median income. The Redevelopment Agency budget appropriates $1,500,000 <br />towards this FTHB Program (approximately 15 loans). <br /> <br />All applicants have to meet the State definition of low and moderate-income (currently <br />$89,900 for a 4-person household). <br /> <br />Asset Maximum - There will be a relationship between the amount of liquid assets of <br />each buyer and the amount of subsidy provided. No First Time HomeBuyer should <br />have more than $20,000 in cash after receiving a HomeBuyer subsidy. <br /> <br />Appraiser - The form of appraisal expected to determine property value at the time of <br />sale shall be prepared by the Lender's appraiser, and the value shall have a direct <br />relationship to the amount of funds a lender will provide to a new buyer. <br />