RESALE OF PROPERTY. The Resale Option is used when only development subsidies such as site acquisition, rehabilitation, or construction financing are provided to the developer and no direct subsidy is provided to the homebuyer and the unit is sold at the fair market value. The Resale Option ensures that the home remains affordable over the entire period of affordability, even in the event of subsequent sales. Under this option the minimum period of affordability is based on the entire amount of HOME funds invested in the property and the affordability is secured with a recorded covenant or deed restriction. The developer (or City, if lien holder) may use purchase options, rights of first refusal or other preemptive rights to purchase the property before foreclosure to preserve affordability. Unless the Consortium has established a presumption of affordability for the property’s neighborhood in accordance with the specialized procedures per the HOME Final Rule at 24 CFR 92.254(a)(5)(i)(B), the homeowner is required to sell the property to an eligible low-income buyer at an affordable price. The sale must meet three criteria:
Appears in 19 contracts
Samples: Agreement Between Lafayette Housing Consortium and Habitat for Humanity of Lafayette, Agreement Between Lafayette Housing Consortium and Habitat for Humanity of Lafayette, Agreement Between Lafayette Housing Consortium and Habitat for Humanity of Lafayette
RESALE OF PROPERTY. The Resale Option is used when only development subsidies such as site acquisition, rehabilitation, or construction financing are provided to the developer and no direct subsidy is provided to the homebuyer and the unit is sold at the fair market value. The Resale Option ensures that the home remains affordable over the entire period of affordability, even in the event of subsequent sales. Under this option the minimum period of affordability is based on the entire amount of HOME funds invested in the property and the affordability is secured with a recorded covenant or deed restriction. The developer (or CityConsortium, if lien holder) may use purchase options, rights of first refusal or other preemptive rights to purchase the property before foreclosure to preserve affordability. Unless the Consortium has established a presumption of affordability for the property’s neighborhood in accordance with the specialized procedures per the HOME Final Rule at 24 CFR 92.254(a)(5)(i)(B), the homeowner is required to sell the property to an eligible low-income buyer at an affordable price. The sale must meet three criteria:
Appears in 9 contracts
Samples: Agreement Between the Lafayette Housing Consortium and Faith Community Development Corporation, Agreement Between Lafayette Housing Consortium and Faith Community Development Corporation, Agreement Between Lafayette Housing Consortium and New Chauncey Housing, Inc.
