AgdaPkt 2021.04.26 Joint SA FPA - Laserfiche WebLink

Browse Search

7.A. - Page 92 of 101 In the everrt of a homeowner's default of HOME requirements during the affordability period due to death, life-threatening illness, or other extraordinary circumstance, the Ci y may allow assumption of the affordability requirements by an income -el igible family mere ber on a case-by- case basis. This policy may be amended from time to time to reflect changes in programs and local market condidons. IRIECAPTURE OF HOME FUwas The Recapture Option is used when the homebuyer receives a direct subsidy for the purchase of the home, such as dawn payment or closing cast assistance, or when the unit is purchased at a price below the fair market value. Under this option, the minimum period of affordability is based only on the amount of the direct subsidy_ Priorto City disbu rsement of HOME funds, the following documents will be executed: (1) a vaitten agreement bet een the City and homebuyer memonal Ling the City's HOME loan requirements described below; (2) a promissory note in the loan amount in favor of the City; and (3) a recorded deed of trust in the amount of the Note. The homeowner is at liberty to sel I to any buyer, at any price the market will bear, but also must repay the direct HOME subsidy received to the City when the unit was originally purchased, which will be reduced on a pro -rata basis beginning year six of tare affordability period_ Prior to year sic, the entire amount of the direct HOME subsidy is due upon closing. Once the HOME funds are repaid, the property is no longer subject to the HOME Program restrictions and the HOME liens placed on the property will be released_ At time of sale, if the property increases in value, the HOME investment is repaid and used to fund new eligible projects_ In the event the sale proceeds are insufficient to repay the entire HOME subsidy due, Redwood City will share the net proceeds with the homeowner. Net proceeds of a sale are the sales price minus the repayment of any non -HOME loan balance and seller's closing costs. The amount of HOME funds recaptured is determined by the percentage of Net proceeds proportionally based on the ratio of the HOME assistance to the sum of the homed mems investment (down paymerd and documented capital improvements) plus the HOME assistance as follows: HOME Assistance HOME Recapture HOME Assistance + X Net Proceeds - Amount Homeowner Investment Annual Action Plan 2021 OMB Control No: 2506-0117 (exp. 06/30/2018) W Em