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SHIP LHAP Template 2016-001 <br />Jeff. Date 7/1/202}] <br />C. Purchase Assistance without Rehabilitation Loans I Code 2 1 <br />a. Summary of Strategy: SHIP funds will be awarded for down payment and closing costs as well as principal <br />reduction to households to purchase a newly constructed home. A newly constructed home must have <br />received a certificate of occupancy within the last twelve months. <br />b. Fiscal Years Covered: 2024-2025, 2025-2026, 2026-2027 <br />C. Income Categories to be served: Very low, low, and moderate <br />d. Maximum award: <br />Very Low: $50,000 <br />Low: $35,000 <br />Moderate: $20,000 <br />e. Terms: <br />1. Deferred Payment Loan (DPL): Funds will be awarded as a deferred payment loan secured by a <br />recorded subordinate mortgage and note. <br />2. Interest Rate: 0%. <br />3. Years in Loan term: 20 years. <br />4. Forgiveness: The entire loan amount will be 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 occurs during the 20 - <br />year loan term: sale, transfer, or conveyance of property; conversion to a rental property; loss of <br />homestead exemption status; failure to occupy the home as a primary residence or refinancing <br />with cash out. If any of these occur, the outstanding balance will be due and payable. <br />In cases where the qualifying homeowner(s) die(s) during the loan term, the loan may be assumed <br />by a SHIP -eligible heir who 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 loan will be due and <br />payable. <br />If the home is foreclosed on by a superior mortgage holder, the county will make an effort to <br />recapture funds through the legal process if it is determined that adequate funds may be available <br />to justify pursuing a recapture. <br />f. Recipient Selection Criteria: Applicants will be ranked for assistance based on a first -qualified, first-served <br />basis with the priorities for Special Needs income groups as described in section I of this plan. <br />g. Sponsor/Developer Selection Criteria: N/A <br />-11- <br />83 <br />