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2010/11-2014-15 CITY OF SANTA ANA CONSOLIDATED PLAN 2012/13 I ACTION PLAN Federal regulations require that if HOME funds are used to refinance existing debt secured by multi-family housing, the City must ensure that its rehabilitation program guidelines comply with section 92.206(b) of the HOME Program regulations. Even though no such project is contemplated for the 2012-2013 fiscal year, HUD requires that the City outline certain program provisions in the Action Plan; therefore, should a multi-family housing rehabilitation/refinance project present itself to the City, at a minimum, the following program provisions will be implemented: ¦ Refinancing will be permitted on a citywide basis; however such assistance will only be provided to permit or continue affordability for ;projects undertaken by a qualified nonprofit affordable housing development organization in good -standing with City, HUD, private lenders, etc. ¦ The minimum affordability period shall be 15 years. ¦ Rehabilitation, not refinancing, must be the primary eligible purpose for the use of HOME funds. To ensure that this requirement is met a minimum level of rehabilitation of $15,000 per unit is required. ¦ A review of management practices will be undertakenby the City to determine 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 the extended affordability period can be demonstrated. During the 2012-2013 Program Year, the City does not plan to use HOME funds for homebuyer;assistance; however, if such assistance were to be provided, the City will market the program citywide, and in various languages. Housing Choice Voucher rental assistance recipients and residents currently residing in manufactured housing will also be targeted to fill HOME-a-ssisted units. In order to ensure participating households are suitably prepared to become homeowners, all :participants will be required to attend pre- and post-ownership training provided by a H,UD-authorized housing counseling center. Furthermore, to ensure compliance with the housing affordability terms of 24 CFR 92.254, the City will impose a recapture provision that will recoup all of the HOME assistance provided to a homebuyer if the housing unit does not continue to be the principal residence of the program participant during the period of affordability. As required by the HOME program, the City has implemented an Affirmative Marketing program for all projects with five or more HOME-assisted units. This is to insure that multi- family owners receiving HOME funds will inform and solicit rental applications from persons DRAFT 04/08/2012 37 2012-2013 ANNUAL ACTION PLAN 29B-44