1999-08-23 Regular Meeting - Laserfiche WebLink

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e e OTHER PROGRAM REQUIREMENTS Principal Residence. Homebuyers will be required to certify at the time they acquire an ownership interest in the unit that they intend to occupy the unit as their principal residence during tHe recapture period. Subleases, even if temporary, will not be allowed. Occupancy will be determined through verification of utility consumption, or other verifications determined to be acceptable by SETH. Home Buyer's Counseling Certification. The bQrrower must successfully complete a home buyer's counseling course approved by SETH. This course is available through SETH at a cost of $50.00 which is an eligible closing cost, but can be administered by other approved organizations. Recapture Provisions. If the first-time home buyer sells the property within the recapture period, the full amount of the forgiveness loan that is not forgiven is subject to recapture, in accordance with HOME regulations. This provision will be enforced by requiring that the HOME recipient executes a note in favor of the County. . Form of Ownership. Fee simple title is the acceptable form of ownership: All other forms of ownership are subject to written approval by SETH. Income verification. Although the financial institution's process for mortgage loan approval will include an evaluation of income for the applicant, SETH will use the definition for income according to criteria set out by HUD to determine total family income. Income verification will be valid for a six- month period following receipt of information. If the home buyer does not occupy the property within six months, income must be re-verified. ELIGIBLE PROPERTY CRITERIA Property eligible for purchase under the Program is any newly constructed single-family dwelling, located within the boundaries of the corporate limits of Deer Park, La Porte, Tomball or Shoreacres, Texas, whose purchase price does not exceed $115,200, and that meets Housing Quality Standards as well as all applicable local building codes, ordinances, zoning ordinances, and the model energy code. The property site must be approved by the program administrator to comply with program intent. The property site should not be located in, or be in immediate proximity to, a new subdivision. The intent of the program is to provide assistance to families who wish to purchase newly constructed homes in identified revitalization areas or older declining neighborhoods of the participating cities. As a requirement for receipt of HOME funds, an appraisal of the property by the financial institution providing the mortgage is necessary. Owner-financed properties are not eligible under the Program. If the property is located within the 100-year Flood Plain designated by the currently-published Federal Emergency Management Agency flood plain maps, flood insurance must be maintained for the term of the loan. Prior to loan closing, the property must meet HUD Section 8 Housing Quality Standards (HQS Standards). SETH will provide for all HQS inspections at a cost of $50.00 per home. This is also an eligible closing cost.