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6.0. - Page 175 of 179 <br />2. A description of the guidelines that will be used for resale or recapture of HOME funds when used <br />for homebuyer activities as required in 92.254, is as follows: <br />HOME Resale Guidelines -. When using HOME funds for homeownership, the City will use HOME <br />Resale guidelines as the method for enforcing HOME affordability requirements. The homebuyer <br />must meet income requirements of no more than 80% of the area median income and attend a <br />homebuyer workshop. Prior to City disbursement of HOME funds through an escrow held by a title <br />company, the following documents will be executed: (1) a written agreement between the City and <br />homebuyer memorializing City HOME loan requirements described below; (2) a promissory note in <br />the loan amount in favor of the City; and (3) a deed of trust in the amount of the Note recorded in <br />the County recorder's office. <br />All HOME funds for homeownership are in the form of a loan recorded in second or subordinate <br />mortgage lien position. The loan becomes due upon sale, transfer, or noncompliance with HOME <br />requirements. Repayment may be deferred for an initial period, be interest only, or amortized. In no <br />case will interest exceed 3%. <br />The term of the HOME loan will not be shorter than the HOME affordability term. At the time of <br />sale, the City has the right to find an eligible buyer or purchase the unit. <br />3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired <br />with HOME funds? See 24 CFR 92.254(a)(4) are as follows: <br />The City's HOME funds are secured by deeds of trust recorded on the title of the properties that <br />benefit from the funds. Affordability covenants are also recorded and include all <br />HOME requirements including but not limited to the period of affordability, number of units, rent <br />and income limits. <br />4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is <br />rehabilitated with HOME funds along with a description of the refinancing guidelines required that <br />will be used under 24 CFR 92.206(b), are as follows: <br />The City does not have any planned activities to refinance existing debt secured by multifamily <br />housing properties that are rehabilitated with HOME funds. HOME funds are usually used for site <br />acquisition for special needs housing or for multifamily rehabilitation activities. <br />Consolidated Plan REDWOOD CITY 169 <br />OMB Control No: 2506-0117 (exp. 06/30/2018) <br />531 <br />