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D. 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 - <br />occupied housing units or rehabilitation of acquired owner occupied housing units in <br />conjunction with purchase assistance loans. <br />b. Fiscal Years Covered: <br />FY 2015-2016, FY 2016-2017, FY 2017-2018 <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 />Moderate -Income Persons (between 80-120% of median income) in conjunction with <br />purchase assistance loans only <br />d. Maximum award: <br />The maximum monetary award for a rehabilitation loan shall not exceed: <br />$50,000 per single family or a condominium -housing unit. <br />e. Terms, Recapture. Default: <br />Stand.-alonctiRehabilitation loans are deferred payment 10 0 year loans whereby <br />repayment of the entire loan amount and accumulated interest occurs at the time the <br />eligible housing unit is sold, refinanced with cash out, or occupied by someone other <br />than the original recipient. There will be 3% simple annual interest rate for <br />rehabilitation loans. Interest accumulated will be forgiven after 10 years occupancy for <br />very low and low income households. <br />yor Rrehabilitation loans that are given in conjunction with purchase assistance loans <br />(Purchase Assistance v‘ ith Rehabilitation) are 30 year loans Therefore. the principal <br />loan amount and accumulated interest will be forgiven after 30 years occupancy. <br />30 years. <br />Program income funds will be deposited in the county's affordable housing trust fund. <br />The loan recipient may repay the entire amount of the loan at any time. In the event of <br />the death of the homeowner, an income eligible heir may assume the county SHIP loan <br />as long as the home is utilized as household's homesteaded property. <br />f. Recipient Selection Criteria: <br />Eligible applicants will be approved for assistance on a first qualified first served -basis <br />24 <br />{ Formatted: Stiikethrough <br />Formatted: No underline <br />Formatted: No underline, Underline color: Auto, <br />Strikethrough <br />Commented [RD7]: we found this language <br />confusing, but not sure what to tell you to <br />make it easier. <br />Commented [RD8]: Still confusing. If a loan s <br />forgiven after ten years, how is the term 30 <br />years? <br />�yay <br />