AgdaPkt 2021.04.26 Joint SA FPA - Laserfiche WebLink

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7.A. - Page 93 of 101 If the property fails to appreciate by an amount sufficient to repay both the homeowner's investment and the HOME subsidy, the amount to be recaptured is proportionately reduced. ff the net proceeds are less than or equal to zero, the arnount to be recaptured til I be zero and no additional assistance will be provided to the homeowner- The hon*owner is encouraged to maintain the property in a manner that will sustain the original fair market value - Effective July 24, 2013, subject to prior approval, the HOME requirements on a property subject to recapture may be assumed by an in come -eligible homebuyer for the remainder of the period of affordability. The subsequent homebuyer must agree to provide complete income documentation to be qualified as eligible and agree to assume the original mortgage terms, including occupying the property as their principal residence for the remainder of the HOME period of affordability - In the event of foreclosure, transfer in lieu of foreclosure or assignment of an FHA insured mortgage to HUD, and there are insufficient net proceeds to repay the HOME investment — the affordability period is terminated and the property is no longer subject to HOME program restrictions. RESA'_E ^F PROP =RTY The Resale Option is used when only development subsidies such as site acquisition, rehabilitation, or construction financing are provided to the developer and no direct subsidy is provided to the homebuyer- The Resale Option ensures that the home remains affordable over the entire period of affordability, even in the event of subsequent sales. Under this option the minimum period of affordability is based on the entire amount of HOME funds invested in the property and the affordability is secured with a recorded covenant or deed restriction- The developer (or City, tf lien holder) may use purchase options, rights of first refusal or other preeruptive rights to purchase the property before foreclosure to preserve affordability - Resale restrictions must be imposed at the time that the HOME -assisted purchase takes place, and secured through deed restrictions, covenants running with the land, or other similar mechanisms. Unless the City has established a presumption of affordability for the property's neighborhood in accordance with the specialized procedures per the HOME Final Rule at 24 CFR 92-254(aX5)(i X% the horneovmer is required to sell the property to an eligible low-income buyer at an affordable price - The sale m ust meet three criteria: 1) The new buyer must be bMncome and occupy the home as their principal residence for the remainder of the original affordability period. 2) The Eligible Sales Price is a sales price that results in a housing cost that is affordable to a reasonable range of low-income homebuyers with Principal, Interest, Taxes, Insurance (PITT) not to exceed 30%of gross income- This amount may be adjusted to account for the Annual Action Plan 2021 OMB Control No: 2506-0117 (exp. 06/30/2018) 79 500