Item 26 - Public Hearing for the Fiscal Year 2026-27 Annual Action Plan

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EXHIBIT 1 covenant stipulates that the City has the right of first refusal before foreclosure and may use additional HOME funds or other resources to acquire the housing in order to preserve the housing's affordability. The home then will be resold to an eligible buyer with a new long-term affordability covenant that imposes a period of affordability in accordance with the total HOME investment, including the direct homebuyer assistance provided to the homebuyer at the initial sale, plus any additional HOME funds invested to purchase the property out of foreclosure. Recaptured funds will be used for any HOME eligible activity. If the funds were provided as a grant or zero interest loan, then the recaptured funds will be receipted into IDIS and treated like program income, except that no portion of the funds will be used for administrative costs. If the recaptured funds were provided as an interest -bearing loan, then the funds will be receipted (principal and interest) into IDIS as program income. Up to ten percent of the program income may be used for administrative costs. These recaptured funds are identified in the City's accounting system by a unique recaptured revenue object number. Any recaptured funds will be used by the City before committing HOME funds from the City's line of credit. When the City uses a resale restriction, the City allows property sales to eligible income households, provided the sales price does not exceed an affordable housing cost to the proposed transferee ("Permitted Transfers"). If a homebuyer wishes to transfer the property during the affordability period, they must notify the City beforehand by submitting a Notice of Intent to Transfer. This notice should include the identity of the proposed transferee, their household income, and the proposed sales price so that the City may determine that the homebuyer's household income and the sales price meet the affordable housing cost criteria. The term of the period of affordability is determined according to the amount of HOME funds invested (see chart above under Recapture) and a long-term affordability covenant will be recorded against the property in the County real estate records. The covenant will impose a resale formula that provides a fair return on investment (including the homeowner's investment and cost of capital improvements) and ensure the housing will remain affordable to a reasonable range of low-income homebuyers. See above 4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows: NA 5. If applicable to a planned HOME TBRA activity, a description of the preference for persons with special needs or disabilities. (See 24 CFR 92.209(c)(2)(i) and CFR 91.220(I)(2)(vii)). NA 6. If applicable to a planned HOME TBRA activity, a description of how the preference for a specific Annual Action Plan 2026 41 OMB Control No: 2506-0117 (exp. 09/30/2021)