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Exhibit I e. Terms, Recapture, Default: Emergency rehabilitation loans are deferred payment 10 -year loans secured by a mortgage and note. The repayment of funds awarded as an emergency rehabilitation loan is not required, except in cases where the assisted housing unit is sold, refinanced with cash -out prior to termination of the unit's affordable classification timeframe, or occupied by someone other than the original loan recipient. In cases where the unit is sold, refinanced with a cash -out, or occupied by someone else, the entire original loan amount and accumulated interest must be paid back. There will be a 0% simple interest rate for emergency rehabilitation loans. After 10 years, the original loan amount and accumulated interest will be forgiven. Program income funds will be deposited in the county's affordable housing trust fund. Eligible persons may repay the entire amount of the loan at any time. In the event of the death of the homeowner, an income -eligible heir may assume the county SHIP loan as long as the home is utilized as the household's homesteaded property (rehabilitation loans in conjunction with CDBG funding will be forgiven upon the death of the homeowner). f. Recipient Selection Criteria: Eligible applicants will be approved for assistance on a first qualified first served basis as may be adjusted per the LHAP based on ranking priorities, subject to funding availability. Applicants will have the following verified to confirm eligibility and for record management and reporting: i. Emergency needs identified by a building official, health department, or SHIP administrator ii. Income First-time applicants will be given priority over previously assisted persons. Exceptions may be made for eligible property owners in cases where living conditions threaten the personal health and safety of the household. Property taxes must be current, and the property must not be in a foreclosure process. g. Other Emergency Rehabilitation Loan Requirements: The county's SHIP Program anticipates providing emergency rehabilitation loans to eligible, very low-income, low-income, and moderate -income households to fund all or a portion of the cost of emergency repair for existing single-family or condominium owner - occupied housing units. Emergency repair loans will not be awarded for repair work previously completed. All emergency repair work must be performed by licensed contractors. Applicants must first apply to their own home insurance for needed repairs. Emergency rehabilitation loans may be awarded, if needed, for repair work activities that are essential to make a house safe for habitation and/or to prevent further damage to the house. Emergency repair loans may not be awarded in combination with purchase assistance loan assistance. Emergency rehabilitations eligible for SHIP funding are limited to weatherization - 17 - 125