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Exhibit I <br />GUIDELINES, AND OPERATING PROCEDURES <br />A. Owner Occupied Rehabilitation Loans (Code #3) <br />a. Summary of the Strategy: <br />To fund all or a portion of the cost encountered in rehabilitating existing owner -occupied <br />housing units or rehabilitation of acquired owner -occupied housing units in conjunction <br />with purchase assistance loans. <br />b. Fiscal Years Covered: FY 2024-2025, FY 2025-2026, and FY 2026-2027 <br />c. Income Categories to be Served: <br />Very Low -Income Persons (Not to exceed 50% of median income) <br />Low-income persons (between 50-80% of median income) <br />d. Maximum Award: <br />Maximum award: Very Low and Low $100,000 <br />e. Terms, Recapture, Default: <br />Rehabilitation loans are deferred payment 10 -year loans secured by a mortgage and note. <br />The repayment of funds awarded as a rehabilitation loan is not required, except in cases <br />where the assisted housing unit is sold, refinanced with cash -out prior to termination of <br />the unit's affordable classification timeframe, or occupied by someone other than the <br />original loan recipient. In cases where the unit is sold, refinanced with a cash -out, or <br />occupied by someone else, the entire original loan amount must be paid back. There will <br />be a 0% simple interest rate for rehabilitation loans. The entire loan amount will be <br />forgiven after 10 years of occupancy for very low and low-income households. Program <br />income funds will be deposited in the county's affordable housing trust fund. Eligible <br />persons may repay the entire amount of the loan at any time. In the event of the death of <br />the homeowner, an income -eligible heir may assume the county SHIP loan as long as the <br />home is utilized as the household's homesteaded property (rehabilitation loans in <br />conjunction with CDBG funding will be forgiven upon the death of the homeowner). <br />f. Recipient Selection Criteria: <br />Eligible applicants will be approved for assistance on a first -qualified, first-served basis <br />subject to funding availability as may be adjusted per the LHAP based on ranking <br />priorities. The following information for applicants will be checked/verified to confirm <br />eligibility and for record management and reporting: <br />i. Income <br />ii. Employment <br />iii. Assets <br />- 4 - <br />179 <br />