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C. Purchase Assistance without Rehabilitation Loans Code 2 <br />a. Summary of Strategy: SHIP funds will be awarded for downpayment and closing <br />costs as well as principal reduction to households to purchase a newly constructed <br />home. A newly constructed home must have received a certificate of occupancy <br />within the last twelve months. <br />b. Fiscal Years Covered: 2021-2022, 2022-2023, and 2023-2024 <br />C. Income Categories to be served: Very -low, low and moderate <br />d. Maximum award: Very Low: $20,000 <br />Low $15,000 <br />Moderate $10,000 <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. <br />4. Forgiveness: The entire loan amount and interest accumulated will be <br />forgiven after 20 years of occupancy. <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 20 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, <br />the loan may be assumed by a SHIP eligible heir who will occupy the home <br />as a 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 />15 <br />