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<br />(d) obtain an income verification certification from the Social Security <br />Administration and/or the California Department of Social Services if the prospective <br />Homebuyer receives assistance from such agencies. <br /> <br />(e) obtain an alternate form of income verification reasonably <br />acceptable to the City, if none of the above forms of verification is available to the Developer. <br /> <br />508. Affordability Documents at Time of Sale. At the closing of escrow for the <br />Homebuyer's purchase of each NSP Assisted Unit, the City will require each income qualified <br />Homebuyer of such Unit to execute the following documents: the Homebuyer Deed of Trust <br />(attached hereto as Exhibit F), Homebuyer Promissory Note (attached hereto as Exhibit G), and <br />such further documents reasonably required by the City in a form provided by the City. Any <br />Units assisted with tax increment money will also have a Notice of Affordability recorded <br />against such Property (attached hereto as Exhibit H). The Promissory Note, and Deed of Trust <br />shall contain a forty-five (45) year term. The principal loan amount ofthe Promissory Note shall <br />be the amount ofNSP Funds to create this homeownership opportunity, which will be <br />determined based on the affordable sales price, the fair market value or the maximum sales price <br />permitted under the NSP Program at the time of sale. In those instances where properties have an <br />appraised Fair Market Value that is greater than the sales price, a silent second will be placed on <br />the Property for that difference. All principal and interest shall be deferred until subsequent sale <br />or transfer of the Property. The Deed of Trust will carry a 3% forgivable interest rate, and will <br />be due and payable in forty-five (45) years. Interest will be forgiven at a rate of 1I45th per year, <br />at each anniversary date ofthe original sale, with all interest forgiven at the end of the forty-five <br />(45) year affordability period. The covenants and restrictions must be fully explained to each <br />Homebuyer and the entire explanation and execution of said document must be recorded by the <br />Developer. A copy of said audio and visual recording shall be placed on a CD which shall be <br />kept by the Developer and the City. <br /> <br />708. Program Income. Developer acknowledges that the funds being provided by City <br />for said program are received by City pursuant to the NSP Program criteria and guidelines as <br />amended and that expenditures of these funds shall be in accordance with the NSP criteria and <br />guidelines and all pertinent regulations issued by agencies of the federal government, including, but <br />not limited to, all regulations found at Title 24 of the Code of Federal Regulations. <br /> <br />When the City receives repayment such funds are Program Income. Program Income received by <br />the City will be used for NSP Activities. Program Income and reallocated funds identified for the <br />single family, condominium and historic components will be added to agreement with Developer. <br />Developer agrees to comply fully with all federal, state and local laws and court orders applicable to <br />its operation whether or not referred to in this Agreement. <br /> <br />Final Amend NSPl ANR <br />