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A TRUE COPY <br />CEERTIFICATION ON LAST PAGE <br />J.R. SMITH, CLERK <br />e. Terms <br />1. Deferred Payment 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 (only rehabilitation loans in <br />conjunction with CDBG funding will be forgiven in 5 years or upon death of <br />the homeowner, 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 non-CDBG related homeowner(s) die(s) <br />during the loan term, the loan may be assumed by a SHIP eligible heir who <br />will occupy the home as a primary residence. If the legal heir is not SHIP <br />eligible or chooses not to occupy the home, the outstanding balance of the <br />loan will be due and payable. <br />If the home is foreclosed on by a superior mortgage holder, the county will <br />make an effort to recapture funds through the legal process if it is <br />determined that adequate funds may be available to justify pursuing a <br />repayment. <br />7. Property shall not be eligible to re -apply until after expiration of a 10 year <br />rehab loan, except when utilization of disaster and/or emergency <br />rehabilitation funds are necessary. <br />f. Recipient Selection Criteria: Applicants will be ranked for assistance based on a <br />first -qualified, first-served basis with the priorities as described in section I of this <br />plan. <br />g. Sponsor/Developer Selection Criteria: N/A <br />h. Additional Information: All work must be performed by licensed and insured <br />contractors. <br />Applicants applying for rehabilitation assistance loans must also provide a copy of <br />the deed to their home. A complete application and all required documents must be <br />submitted to the SHIP office when an applicant's queue number is reached and <br />contacted by SHIP staff. <br />-8- <br />F:\Community Development\SHIP\LHAP\2021-2024 LHAP\2020 LHAP Revisions\BCC Item - LHAP\2 - <br />2021-2024 LHAP - 12-1-20 BCC Meeting.doc <br />