 |
|
|
|
|
91.220(k)(2)(i)
For HOME funds, a participating jurisdiction shall describe
other forms of investment that are not described in Sec.
92.205(b). |
All HOME funds are invested in a manner consistent with 24 CFR
92.205(b)(1). Specifically, HOME funds are invested in interest-bearing
and non-interest-bearing amortizing loans and in deferred loans and
grants.
|
91.220(k)(2)(ii)
If the participating jurisdiction intends to use HOME funds
for homebuyers, it must state the guidelines for resale or
recapture, as required in Sec. 92.254. |
The Burlington HOME Program provides low-interest
loans for eligible homebuyers to assist with down payment and
closing costs. These loans are secured by subordinate mortgages.
When properties assisted with HOME funds for this purpose are sold
or transferred, the full amount of the loan plus any accrued
interest is recaptured. The HOME Program uses these funds according
to the HUD rules governing HOME program income. When a property
owner assisted with HOME funds for this purpose refinances their
principal mortgage, the city shall consider executing a
subordination agreement upon receiving a written request with
sufficient documentation on current fair market value and proposed
refinancing amount. When considering such requests to subordinate
its HOME mortgage, the city shall require that the loan-to-value
ratio be no greater than 100%. When a HOME-assisted homeownership
unit that is encumbered (through the requirements of another funding
source) with covenants ensuring perpetual affordability for
households below 80% of area median income is sold, the city does
not recapture the HOME funds unless the covenants are extinguished
and the affordability is no longer ensured.
|
91.220(k)(2)(iii)
If the participating jurisdiction intends to use HOME
funds to refinance existing debt secured by multifamily
housing that is being rehabilitated with HOME funds, it
must state its refinancing guidelines required under 24
CFR 92.206(b). The guidelines shall describe the
conditions under which the participating jurisdictions
will refinance existing debt. At minimum, the guidelines
must:
(A) Demonstrate that rehabilitation is the primary
eligible activity and ensure that this requirement is
met by establishing a minimum level of rehabilitation
per unit or a required ratio between rehabilitation and
refinancing.
(B) Require a review of management practices to
demonstrate that disinvestment in the property has not
occurred; that the long-term needs of the project can be
met; and that the feasibility of serving the targeted
population over an extended affordability period can be
demonstrated.
(C) State whether the new investment is being made to
maintain current affordable units, create additional
affordable units, or both.
(D) Specify the required period of affordability,
whether it is the minimum 15 years or longer.
(E) Specify whether the investment of HOME funds may be
jurisdiction-wide or limited to a specific geographic
area, such as a neighborhood identified in a
neighborhood revitalization strategy under 24 CFR
91.215(g) or a federally designated Empowerment Zone or
Enterprise Community.
(F) State that HOME funds cannot be used to refinance
multifamily loans made or insured by any federal
program, including CDBG. |
Multi-family projects developed by locally based housing
organizations that receive HOME funds for rehabilitation may utilize
HOME funds to refinance existing debt, consistent with 24 CFR
92.206(b)(2), if they meet the following guidelines:
- Refinancing is necessary to permit or to continue affordability
under 24 CFR 92.252;
- Rehabilitation is the primary eligible activity. A minimum of
$7,500 of rehabilitation per unit is required;
- The grantee must demonstrate management capacity and practices
that ensure that the long term needs of the project can be met and
the targeted population can be served over an extended affordability
period;
- The grantee must demonstrate that the new investment is being
made to maintain current affordable units, to create greater
affordability in current affordable units, or to create additional
affordable units;
- Refinancing will be limited to projects that have previously
received an investment of public funds;
- The minimum HOME affordability period shall be 15 years and all
HOME assisted projects developed by locally based housing
organizations are required to be perpetually affordable;
- HOME funds may be used for refinancing anywhere in the city of
Burlington;
- HOME funds cannot be used to refinance multi-family loans made
or insured by any Federal program, including CDBG.
The Champlain Housing Trust is the only certified Community Housing
Development Organization (CHDO) in Burlington. The City of Burlington
expects to commit the statutory 15% CHDO set aside (at least $73,463.85)
to the Champlain Housing Trust for the
project
located at 88 King Street.
Table of Contents
/ Next /
Previous
|
 |
|
