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document. E. Disaster Mitigation Loans Code 5 a. Summary of Strategy: Funds will be awarded to applicants in need of home repairs directly caused by a disaster that is declared. by an Executive Order of the President or Governor. Repairs will be prioritized as follows: 1. Immediate threats to health and life safety (such as sewage, damaged windows, roofing) in cases where the home is still habitable. 2. Imminent residual damage to the home (such as damage caused by a leaking roof) in cases where the home is still habitable. 3. Repairs necessary to make the home habitable. 4. Repairs to mitigate dangerous situations (such as exposed wires). b. Fiscal Years Covered: 2021-2022, 2022-2023, and 2023-2024 C. Income Categories to be served: Very -low, low, moderate d. Maximum award: $30,000 e. Terms: 1. Deferred Payment Loan (DPL): Funds will be awarded as a deferred payment loan secured by a recorded subordinate mortgage and note. 2. Interest Rate: 3% Simple Annual Interest. 3. Years in loan term: 10 years. 4. Forgiveness: The entire loan amount and interest accumulated will be forgiven after 10 years of occupancy. 5. Repayment: Not required as long as the loan is in good standing. 6. Default: The loan will be determined to be in default if any of the following occurs during the 10 year loan term: sale, transfer, or conveyance of property; conversion to a rental property; loss of homestead exemption status; failure to occupy the home as primary residence or refinancing with cash out. If any of these occur, the outstanding balance will be due and payable. In cases where the qualifying homeowner(s) die(s) during the loan term, the loan may be assumed by a SHIP eligible heir who will occupy the home as a primary residence. If the legal heir is not SHIP eligible or chooses not to occupy the home, the outstanding balance of the loan will be due and payable.