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W. Total assets (cash or non-cash items that can be converted to cash) not including <br />IRA, Keogh, similar retirement savings accounts, and dedicated college saving <br />accounts of an eligible household applying for SHIP assistance shall not exceed <br />twenty thousand dollars ($20,000.00). <br />Section II. LHAP Strategies: <br />A. Owner Occupied Rehabilitation Loans <br />Code 3 <br />a. Summary of Strategy: SHIP funds will be awarded to owner occupied households in <br />need of repairs to correct health and safety issues and code violations related to <br />electrical, plumbing, roofing, windows, and other structural items as well as <br />hurricane hardening activities. A detailed list of rehabilitation work activities <br />allowed or not allowed is included in the Indian River County Guidelines, <br />Procedures, and Strategies for Local Housing Assistance Plan document. <br />b. Fiscal Years Covered: 2018-2019, 2019-2020, and 2020-2021 <br />c. Income Categories to be served: Very -low, low, and moderate <br />d. Maximum award: Very Low $50,000 ($10,000 in conjunction with <br />Purchase Assistance, PA) <br />Low $50,000 ($10,000 in conjunction with PA) <br />Moderate $10,000 (in conjunction with PA loans only) <br />e. Terms <br />1. Deferred Repayment Loan (DPL): Funds will be awarded as a deferred <br />payment loan secured by a recorded subordinate mortgage and note. <br />2. Interest Rate: 3% Simple Annual Interest <br />3. Years in Loan term: 10 years (5 years in conjunction with CDBG funding). <br />4. Forgiveness: The entire loan amount and interest accumulated will be <br />forgiven after 10 years of occupancy (for loans in conjunction with CDBG, <br />funding will be forgiven in 5 years or upon death of the homeowner, <br />whichever comes first). <br />5. Repayment: Not required as long as the loan is in good standing. <br />6. Default: The loan will be determined to be in default if any of the following <br />occurs during the 10 year loan term: sale, transfer, or conveyance of <br />property; conversion to a rental property; loss of homestead exemption <br />status; failure to occupy the home as primary residence, or refinancing with <br />cash out. If any of these occur, the outstanding balance will be due and <br />payable. <br />In cases where the qualifying homeowner(s) die(s) during the loan term, the <br />loan may be assumed by a SHIP eligible heir who will occupy the home as a <br />primary residence. If the legal heir is not SHIP eligible or chooses not to <br />occupy the home, the outstanding balance of the loan will be due and <br />payable. <br />-7- <br />F:\Community Development\SHIP\LHAP\2018-2021 LHAP <br />