AgdaPkt 2021.04.26 Joint SA FPA - Laserfiche WebLink

Browse Search

7.A. - Page 91 of 101 AFFORL)ADfLiTY, RESALE AND RECAPUTRE REQUIREMENTS It is the policy of the City of Redwood City to maintain long-term, affordable housing through investments of federal funds. In accordance with the HOME regulations, this policy is enforced either by recapturing HOME funds to assist other buyers and�or properties (Recapture Option), or by restricting the sale of HOME -assisted properties to other low-income (household income less than 80% of Area Median Income) buyers (Resale Option)_ The type and amount of HOME subsidy invested in the property determines the -option and the minimum length of the affordability period applied to a property_ The requirements of each option are speciFcally described in the legal documents for each loan_ At the end of the period of affordability, the HOME subsidy is forgiven and the property is no longer subject to HOME Program restrictions_ As a genera; practice, when bort down paymenr assisrance (direcr subsidies) and deveioprrrerrr funding (indirecrsubsidies) are hiveszed in a properry, rhe Recaprure Oprior] This policy provides an incentive for long-term ownership and encourages neighborhood stability_ Housing assisted by the City of Red%ood City must meet the affordability requirements in accordance wth 24 CFR 92.252(e) for rental housing or 92.254{4} for homeowner housing throughout the entire affordability period as described in the tables below_ The affordability period begins after project completion_ Project completion is defined as the date that al I necessary title transfer requirements and constuction veork have been perfomrmed, the rehabilitation completed complies with the requirements of 24 CFR 92 and stricter of the local rehabilitation standards or the Califomia State Building Cade, the final drawdovm of construction funds has been disbursed for the project and certification of completion has been issued, and the project completion infomon has been entered in the Integrated Disbursement and Information System {IDIS}. The chart below reflects the minimum affordability period required by HOME regulations_ Due to the high demand and lack of supply of affordable housing, the City will strive to exceed minimum requirements. The affordabil ky period required by the City will be inc Llced in the project contract. FOMOME Subsidy Per UnK Mminvum Affordability Period Under 315,000 5 Years i strLICti011 Annual Action Plan 2021 OMB Control No: 2506-0117 (exp. 06/30/2018) 10 Years 15 Years 77 V