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4. Land Acquisition Loans <br />a. Description <br />The IRCLHAProgram anticipates providing low-interest <br />loans to eligible non-profit sponsors for the acquisition <br />of vacant parcels or lots for the purpose of providing <br />eligible housing units for eligible persons. The funds <br />for acquisition shall be delivered at the time of <br />closing, whereby the transaction transferring ownership <br />sof the parcel or lot to the eligible sponsor is <br />completed. <br />The land acquisition loan shall be a primary or first <br />mortgage upon the subject property purchased until the <br />eligible sponsor obtains the construction and/or <br />permanent loan financing for development.and.construction <br />of the housing unit. At the time the construction/ <br />permanent financing is provided for the housing unit, the <br />land acquisition loan shall be subordinated to the <br />construction/permanent mortgage. <br />For the purposes of the IRCLHAProgram, funds expended for <br />property acquisition under the Land Acquisition. Loan <br />Assistance Strategy shall be classified as a <br />homeownership expenditure, and an eligible housing unit <br />must be constructed and certified for occupancy on the <br />acquired property within one year of the closing <br />transaction date. Failure to complete construction of <br />and obtain a Certificate of Occupancy for a housing unit <br />within one (1) year of the closing transaction date shall <br />constitute grounds for foreclosure to obtain possession <br />of the property which may be utilized as a land bank <br />acquired property by the IRCLHAProgram. <br />b. Eligibility .. <br />i. Geographic Area <br />Land acquisition loans may be made anywhere in the <br />County, including all municipalities located within <br />the County. <br />ii. Housing Unit Classification <br />All housing units utilizing assistance from the <br />IRCLHAProgram Land Acquisition Loan Strategy shall <br />be owner -occupied single-family residences. Mobile <br />homes are not eligible. <br />27 <br />