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iii. Impact fee/capacity charge loans may be given in combination with purchase assistance or rehabilitation Loans. B. Purchase Assistance Loans (Codes #1 & #2) a. Summary of the Strategy: To assist eligible persons with down payment and closing costs as well as principal reduction associated with the purchase of a home. b. Fiscal Years Covered: FY 2015-2016, FY 2016-2017, FY 2017-2018 c. Income Categories to be served: Very Low -Income Persons (Not to exceed 50% of median income) Low -Income Persons (between 51-80% of median income) Moderate -Income Persons (between 81-120% of median income) d. Maximum award: Very Low -Income Person $20,000 Low -Income Person $15,000 Moderate -Income Person $10,000 e. Terms, Recapture, Default: Purchase assistance loans are deferred 30 year payment loans secured by a mortgage and note whereby repayment of the entire loan amount and accumulated interest occurs at the time that the eligible housing unit is sold, refinanced with cash out, or occupied by someone other than the original loan recipient. There will be 3% simple annual interest rate for Purchase Assistance loans. 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 household's homesteaded property. f. Recipient Selection Criteria: Eligible applicants will be approved for assistance on a first qualified first served basis subject to funding availability. Applicants will be chosen per the following criteria: i. Income Eligibility ii. Employment Verification iii. Asset Verification iv. Homebuyer Status v. Credit Verification and/or approval from the financial institution that is granting the first mortgage 17 Commented [RD4]: Number of years in loan term? Secured by mortgage and note? ‘y/7