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7. Land Hank - Tax Deed Purchase <br />a. Description <br />The Indian River County, through the Board of County <br />Commissioners and the IRCLHAProgram, may acquire vacant <br />parcels or lots by purchasing the properties via Tax Deed <br />Auction for the purpose of providing sites for the <br />development of eligible housing units by eligible <br />sponsors for eligible persons. The funds for acquisition <br />shall be delivered at the time of tax deed sale, whereby <br />the transaction transferring ownership of the parcel or <br />lot to the county is completed. This Tax Deed Purchase <br />Strategy may be considered a strategy of "last resort", <br />whereby it may be utilized in the event unexpended or <br />encumbered funds for the IRCLHAProgram are available and <br />expenditure through the remaining IRCLHAProgram <br />Assistance Strategies is unlikely. <br />The acquired property shall be classified as a monetary <br />asset of the IRCLHATF to be utilized as an equivalent <br />loan to an eligible sponsor or person for the development <br />of an eligible housing unit. <br />Upon transfer of the acquired property to an eligible <br />sponsor, the effective land bank loan shall be secured by <br />a primary or first mortgage upon the subject property <br />until the eligible sponsor obtains the construction <br />and/or permanent loan financing for the development and <br />construction of a housing unit. At the time the <br />construction/permanent financing is provided for the <br />housing unit, the land bank loan shall be subordinated to <br />the construction/permanent mortgage. <br />For the purposes of the IRCLHAProgram, funds expended for <br />property acquisition under the Land Bank Tax Deed <br />Purchase 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 />33 <br />