1974-03 CRA - Laserfiche WebLink

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(a) If the displaced person voluntarily purchases and occ~pies a ùecent, safe, and sanitary dwelling at a price less " than the above, the comparable replacement housing payment will be xeduced to that amount required to pay the difference between the acquisition price of the acquired dwelling and the actual purchase price of the replacement dwelling. (b) If the displaced person voluntarily purchases and occupies a decent. safe, and sanitary dwelling at a price less than the acquisition price of the acquired dwelling, no differen- tia1. payment shall be made. b. Interest Davrnent. The head of the public agency shall de- termine the amount. if any, necessary' to compensate a displaced person for any increased interest costs, including points paid by the purchaser. Such amount shall be paid only of the acquired dwelling was encumbered by a bona fide mortgage. The following shall be considered: . (1) The payment shall be eq~al to the excess in the aggregate interest and other debt service costs of that amount of the principal of the mortgage on the replacement dwelling which is equal to the unpaid balance of the bona fide mortgage on the acquired dwelling, at the time of acquisition, over the remainder term of the mortgage on the acquired dwelling, reduced to discounted present value. (2) The discount rate shall be the prevailing interest rate paid on savings deposits by commercial banks in the general area in which the replacement dwelling is located. (3) A "bona fide mortgage" is one which was a valid lien on the acquired dwelling for not less than 180 days prior to the initiation of negotiations. c. Incidental expenses. (1) The head of the public agency shall determine the amount, if any, necessary to reimburse a displaced person for ac- tual costs incurred by him incident to the purchase of the replace- ment dwelling (?ut not including prepaid expenses) such as: (a) Legal, closing and related costs including title search, preparing conveyance instruments, notary fees, sur- veys, preparing plats, and èharges incident to recordation. Lenders', FHA or VA, appraisal fees. {b) (c) FHA application fee. (d) Certification of structural soundness when required by lender, FHA or VA. II - 15 3b .