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b. DPL financing is also used in the CDBG and DRI categories to provide <br />assistance with housing rehabilitation and/or replacement of owner <br />occupied, eligible units. The Deferred Payment Loan (DPL) involves a <br />security instrument (lien) requiring repayment of the loan if the homeowner <br />sells or transfers ownership of the rehabilitated home, ceases to use it as <br />his/her primary residence within the date specified in the terms of the DPL, <br />or fails to maintain reasonable required standards of care and <br />maintenance. During the specified lien period the principal is "forgiven' or <br />subtracted from the principal balance in equal annual amounts for CDBG <br />and DRI rehabilitation loans, so that at the end of the specified term of <br />owner occupancy (by at least one of the Applicants if owned jointly), the <br />loan is fully amortized. There is no interest charged during this specified <br />term agreement. /"\% <br />c. In the event that the sole owner die`s,or both/all'owners die within the <br />specified loan period, repayment of4he loan will not be required and the <br />DPL is forgiven (i.e. it becomes fully amortized up n1he death of the final <br />owner). <br />d. The assistance provided to each Applicant; at the time­gf closing, will be in <br />the form of either a „primary or secondary mortgage. The�mortgage will be <br />recorded in the Public Records of the County. The County`will monitor <br />possible triggers of the'\D.PL'repayment with annual title verification with <br />online County services through'the Cler\k\of�Court and Appraisers offices <br />and through visits to theya�ssisted,units. <br />e. The primary through-visits <br />is a -Deferred Payment Loan (DPL) at <br />zeroAterest and ib' <br />forgiven after 10 years Except for Demo/Replacement, <br />those,Deferred Payment Loans at zero interest are forgiven after 20 years. <br />TE: �W�ith`re'g8rd to Derno/Replacement (new construction housing), DPL's <br />st maintain long-term Affordability for the 20 year lien period. <br />f.\If\repayment of a, DPL becomes due, the (prorated for CDBG and DRI) <br />principal balancewill be due in full within thirty (30) days of the <br />sale/transfer ofJownership or the owner's cessation of primary residence at <br />the prbperty.,lf the owner is unable to make such payment, the County <br />Commission may, at their discretion, and with FDEO approval, allow <br />repaymentXof"the DPL over a term not -to -exceed fifteen (15) years, at a <br />yield of not more than one percent (1 %) interest per annum, and/or allow <br />transfer or sale of the unit to another income qualified household for the <br />remainder of the lien period. <br />g. Homeowners whose household incomes do not exceed the HUD Section <br />8 low -to -moderate income limit will receive a Deferred Payment Loan for <br />one hundred percent (100%) of the cost of rehabilitation. <br />1144 <br />