1999-08-23 Regular Meeting - Laserfiche WebLink

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e e LOAN TERMS ~. ... :. '." ."... . "~ .:;:;:~~\~1t1~~!~" SETH shall use a five-year deferred forgivable loan note, to enforce the principal residence requirement during the five year recapture period. The loan will be a nonrecourse, no-interest. five . year non-amortizing forgivable loan. The loan shall have a second lienholder position, and will allow for recapture of the HOME assistance out of the net sales proceeds if the homeowner sells the dwelling before the end of the recapture period. If the HOME assisted property is sold after the end of the recapture period, no recapture provisions apply. If the net proceeds are not sufficient to " recapture the full HOME investment plus enable the homeowner to recover the amount of the "" homeowner's down payment, principal payments, and any capital improvement investment, the HOME investment to be recaptured may be pro rated based on the time the homeowner has owned the home and occupied the unit measured againsf the required recapture period. However, the homeowner will not be allowed to recover more than the amount of the homeowner's down payment, principal payments, and any capital improvement investment. The terms of the note will be extinguished if the private lender forecloses. Refinancing will only be allowed upon written approval from SETH. The note will be secured by a recorded Deed of Trust. SETH will charge a $150 processing fee, which will be an eligible closing cost to be paid from assistance funds. '.' -... ~ . " " . ~ .,.. ". UNIFORM RELOCATION ACT REQUIREMENTS To comply with requirement of the Uniform Relocations Assistance and Property Acquisition Policies Act of 1970. ~ of properties purchased with Program funds must sign the form "Notice of Uniform Relocation Act Requirements." This form informs the owner-seller of the fair market value of the property and that, although federal funds are involved in the purchase, the buyer does not possess the power of eminent domain in acquiring the property. FAIR MARKETING PROCEDURES SETH will meet with local financial institutions and real estate agents to explain the Program, and to request their participation. A list of participating financial institutions will be published in a brochure, directed to potential applicants of the Program. The brochure will set out Program objectives and requirements. The brochure and all application materials will be made available in English as well as Spanish. The brochure will be distributed in accordance with the fair housing outreach plan. Program information will also be made available to the public through local newspapers. Press releases will be distributed to places that will reach potential low-income home buyers such as local newspapers, social service agencies, churches, the local chamber of commerce, supermarkets, apartment buildings, and other public places. COMPLAINT RESOLUTION PROCEDURES Should a complaint or dispute regarding determination of eligibility arise, the request for a reevaluation must be submitted within ten working days of notification of ineligibility. The SETH Program Administrator and a SETH Committee, appointed by the Executive Director will make final rulings on all complaints. July 1998