19D - FIRST TIME HOMEBUYER - Laserfiche WebLink

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. . . the home as their principal residence for the term of affordability, which is 45 years. Purchase of the property must result in fee simple title to the property, a 99-year leasehold interest in the property, or ownership of a condominium. Purchase of manufactured homes will not be allowed under this program unless the borrower will own the lot where the home is to be permanently fixed. The purchase price must not exceed the maximum approved by HUD. Effective June 8, 2004, at the City's request, HUD approved an increase in the maximum purchase price to $380,000. At the time of purchase the property must be free of code deficiencies and be in compliance with federal regulations governing lead-based paint as determined by an inspection conducted by the City of Santa Ana. If needed, lead-based paint testing may be required, and the cost for the testing will be an expense of the buyer. For properties not in compliance with these standards, owners must also be approved for a rehabilitation loan offered by the City of Santa Ana that is sufficient to meet rehabilitation costs as estimated by the City staff. Approval for a first-time homebuyer downpayment loan does not ensure approval for a rehabilitation loan. If the property does not meet property standards and the applicant does not qualify for a rehabilitation loan, then homebuyer funds will not be provided unless the applicant has funds available to pay for the rehabilitation costs. The maximum loan for rehabilitation purposes will be an amount such that all loans combined will not exceed 110 percent of appraised value (not including hazardous substance costs subject to forgiveness). If rehabilitation costs exceed the eligible loan amount, owners may choose to fund the rehabilitation with their own funds or with a combination of owner funds and loan funds. In such instances owner funds must be placed in a construction escrow account established for that sole purpose. The property must be brought into compliance no later than one year after purchase. If the rehabilitation work includes remediation of hazardous substances, all costs in excess of $2,500 will be forgiven at the time all required rehabilitation is completed and the City has determined that the property is in compliance with all applicable City Building Codes. Use of Loan Proceeds ADDI loan proceeds may be applied to downpayment and closing costs associated with the purchase of the home. Rehabilitation loan proceeds may only be applied to rehabilitation costs necessary to bring the property into compliance with all applicable City Building Codes. All work must be performed by licensed general contractors who are in compliance with City license and insurance requirements and who are not included on the debarment list maintained by HUD. All work must be performed in accordance with applicable federal, state and local regulations, including abatement or control of lead-based paint and asbestos. EXHIBIT 1 Page 2 19D-5