Contract - Habitat for Humanity of St Joseph County Inc - Rehab of 1217 Miner St

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HUD requires that grantees include provisions for long-term affordability: that the sale, rental, or redevelopment of abandoned and foreclosed upon homes and residential properties remain affordable to individuals or families whose incomes do not exceed eighty percent (80%) of area median income (AMI). The redeveloped home at 1217 Miner Street will be sold to a low/mod income household at or below 50% AMI. At a minimum, the City of South Bend will follow the HOME Investment affordability guidelines for homebuyer and rental units assisted. The City's long term affordability policy is as follows: For Homebuyers: Recapture Policy The amount of equity to be returned to the initial home buyer of an affordable housing unit rehabilitated with NSP3 Funds (Homeowner) (Unit), and the amount of NSP3 funds subject to recapture as required of HOME funds under 24 CFR Part 92, Section 92.254, with respect to such Unit, will be determined as follows: 1. NSP3 funds expended for eligible activities in connection with the development of affordable housing, and which are allocable to such unit, will not be recaptured upon the initial sale by the recipient of NSP3 funds of such Unit. 2. NSP3 funds will be deemed allocated to a Unit (the Allocation) in accordance with the scope of the project wholly or partially financed by such NSP3 funds. In the case of a project consisting solely of affordable housing units, NSP3 funds shall be allocable to each Unit developed by the project in the same proportion the NSP3 funds bear to the total of all funds expended in completing the project. 3. The total NSP3 investment in the Unit that is subject to recapture upon sale of the Unit by the Homeowner, and each subsequent sale during the minimum period described in paragraph number 4, herein below (Recapture Amount) (Recapture Period), is that portion of the Allocation that enabled the Homeowner to buy the Unit. This includes that portion of the Allocation used in the form of a direct subsidy to the Homeowner that reduced the Homeowner's purchase price for the Unit from the fair market value of the Unit (as determined by an independent appraisal of the after -rehabilitation value of the Unit) to an affordable price (determined to be the Homeowner's purchase price for the Unit). The City of South Bend will recapture an amount that does not exceed the net sale proceeds from the sale of the property. The City of South Bend will recapture the outstanding balance based on the following "Recapture Amount" guidelines; however this amount shall never be greater than the net sale proceeds. If there were no net sale proceeds then the City of South Bend would recapture zero. 4. The Recapture Amount is subject to recapture under these guidelines for the following minimum periods: A. Five (5) years where the Allocation is less than $15,000.00; B. Ten (10) years where the Allocation is $15,000.00 to $40,000.00; C. Fifteen (15) years where the Allocation is greater than $40,000.00. 16