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Comprehensive Plan Housing Element have been used, to assist qualified households with replacement of existing homes and mobile homes that were destroyed through the 2004 hurricanes. Also, HHR assistance was used to rehabilitate existing rental units and to match other state and federal funds for building new affordable housing projects. As structured, SHIP and HER loans are deferred payment loans that applicants do not have to pay back until they sell their assisted unit. Generally, SHIP loans are subordinated to a first mortgage on an assisted unit. If a SHIP recipient refinances his first mortgage and receives cash back, however, the county will not subordinate its SHIP loan to the refinanced first mortgage, and the SHIP loan must be paid back. As of April 2009, almost 22% of SHIP and HHR loans had been paid back. Those SHIP/HHR funds revert to the main housing trust fund and are available to assist other applicants. Although funds derived from repaid SHIP loans are available to assist other applicants, SHIP loan repayments associated with cash out refinancings reflect a problem. Almost invariably, a cash out refinancing leaves a household with more debt, higher payments, and an increased probability of foreclosure. To discourage that practice, the county, in 2008, revised its Local Housing Assistance Plan to impose a simple annual interest rate of 3% on SHIP loans to very low and low income households and 5% on SHIP loans to moderate income households. Those interest charges are forgiven after 10 years for VLI and LI households and after 20 years for MI households. Another housing program used by the county is the Community Development Block Grant (CDBG) Program, a federal program that, in Florida, is administered by the Department of Community Affairs (DCA). In Indian River County, the CDBG program has been used to rehabilitate or replace 24 existing homes for very low and low income families. For non -entitlement communities such as Indian River County, those funds are provided through a competitive application process. Through its Local Housing Assistance Program, the county provides assistance to very low, low, and moderate income households. As of April 14, 2009, 902 households had received assistance from the county's program. As structured, the county's Local Housing Assistance Program works through a partnership of lenders, builders, contractors, real estate agents, non-profit organizations, and the county. In addition to the households assisted through the local housing assistance program, 471 households have received assistance through the county's Hurricane Housing Recovery (HHR) program, while 24 households have received assistance through the Community Development Block Grant (CDBG) housing rehabilitation program. The following tables provide a summary of SHIP and HHR assistance as of April 14, 2009. 13 Community Development Department Indian River County