City Homebuyer Loan. The City Party shall provide to the Eligible Homebuyer who purchases a Home a loan of funds equal to the difference between the Resale Price and the sum of the Affordable Housing Cost of the Home and the Eligible Homebuyer’s down payment (“Homebuyer Loan”). The form of the loan documents to be entered into by the City Party and each Eligible Homebuyer for a Homebuyer Loan shall be prepared by the City Party and it is anticipated such documents will include without limitation a loan agreement, a promissory note, a subordinate deed of trust, a request for notice of default, a regulatory agreement or conditions, covenants and restrictions (CCRs), a buyer disclosure statement, a truth in lending statement, and a notice of right to cancel (collectively, the “Homebuyer Loan Documents”). Pursuant to the NSP Requirements, the affordability requirements for the Home shall, at a minimum, adhere to the affordability provisions under the Home Investment Partnerships Act at Title II of the Xxxxxxxx-Xxxxxxxx National Affordable Housing Act, as amended (42 U.S.C. § 12741, et seq.), and the implementing regulations (24 C.F.R. § 92, et seq). It is contemplated that the Homebuyer Loan will have the following terms: (a) 0% interest with a term of forty-five (45) years; (b) payments deferred during the initial thirty (30) year period of the term of the Homebuyer Loan (unless a default or the Home is sold); (c) equal monthly installment payments made during the last fifteen (15) years of the forty-five (45) year term, with the Homebuyer Loan paid in full in the forty-fifth year; (d) equity share payable during the term of the loan, with the amount payable in the initial thirty (30) year period to be in the same proportion that the Homebuyer Loan bears to the Resale Price, and with such amount reduced each year commencing in the thirty first year of the term of the Homebuyer Loan by an amount equal to 1/15 of the original equity share. Notwithstanding the foregoing, if equity sharing is not permitted under the NSP Requirements, it is contemplated that the Homebuyer Loan will be a simple interest deferred payment loan, with payment due in full upon the sale of the Home to the extent net proceeds are available to repay the Eligible Homebuyer’s investment and the NSP Loan. The Contract Officers, together with their respective legal counsel, shall have the authority to prepare, establish the terms of, and execute the Homebuyer Loan Documents consistent with the NSP Requirements. Su...
