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C. Income Categories to be served: Very -low, low and moderate <br />d. Maximum award: <br />Income Category <br />Purchase <br />Assistance Portion <br />Rehab Portion <br />Max. Total <br />Very Low <br />$20,000 <br />$12,000 <br />$32,000 <br />Low <br />$15,000 <br />-$11,50-0- <br />$26,500 <br />Moderate <br />$10,000 <br />$11,000 <br />$21000 <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: 20 years for Purchase Assistance Portion and 10 Years <br />for Rehabilitation Portion. <br />4. Forgiveness: The entire loan amount and interest accumulated will be <br />forgiven after 20 years of occupancy for the Purchase Assistance Portion <br />and 10 years of occupancy for the Rehabilitation Portion. <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 loan term (20 years for Purchase Assistance Portion and <br />10 years for Rehabilitation Assistance Portion): sale, transfer, or conveyance <br />of 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 />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 />recapture. <br />f. Recipient Selection Criteria: Applicants will be ranked for assistance based on a <br />first -qualified, first-served basis with the priorities for Special Needs income groups <br />as described in section I of this plan. <br />230 <br />