Also, if rehabilitation, Keep inspection checklist and property must meet work write-up in client file. Department’s Rehabilitation Standards and applicable Checklist indicating codes (local codes/standards compliance with 2003 or one of 3 nationally accepted International Energy codes) within 6 months of Conservation Code transfer. requirements for new construction projects. New construction must meet local codes/ standards or one of the nationally accepted codes and the 2003 International Energy Conservation Code. Eligible Activities Acquisition w/ or w/o Document all expenditures. rehabilitation and construction Long Term Affordability Key NAHTF Requirement Documentation Affordability Period Property must be subject to Resale: mortgage and/or note Recapture/Resale either resale or recapture and deed restriction or provisions for the period of covenant restricting affordability. future sales. Recapture: mortgage or note Resale: future sale of showing formula by which property must be to and funds will be recaptured. affordable to low-income Recapture: portion or all of assistance to buyer must be recaptured at time of sale. Attachment 2 ADVANTAGES AND DISADVANTAGES OF VARIOUS SUBSIDY APPROACHES SUBSIDY PROS CONS Grants Simple to administer Expensive Easy to explain No repayment possible
Also, if rehabilitation, property must meet Department’s Rehabilitation Standards and applicable codes (local codes/standards or one of 3 nationally accepted codes) within 6 months of transfer. New construction must meet local codes/ standards or one of the nationally accepted codes and the 2003 International Energy Conservation Code. Keep inspection checklist and work write-up in client file. Checklist indicating compliance with 2003 International Energy Conservation Code requirements for new construction projects. Eligible Activities Acquisition w/ or w/o rehabilitation and construction Document all expenditures. Long Term Affordability Key NAHTF Requirement Documentation Affordability Period Recapture/Resale Property must be subject to either resale or recapture provisions for the period of affordability. Resale: future sale of property must be to and affordable to low-income Recapture: portion or all of assistance to buyer must be recaptured at time of sale. Resale: mortgage and/or note and deed restriction or covenant restricting future sales. Recapture: mortgage or note showing formula by which funds will be recaptured. Attachment 2 ADVANTAGES AND DISADVANTAGES OF VARIOUS SUBSIDY APPROACHES SUBSIDY PROS CONS Grants Simple to administer Easy to explain Expensive No repayment possible
Chapter_04_-_Homebuyer_Activities_04_19_2010.docx