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B. Tenant, Occupied: Loan <br /> <br />Financial assistance to investor-owners includes a loan for up to 100% of the total <br />rehabilitation cost, not to exceed $25,000, required to bring the unit up to <br />DHCD/HUD Housing Quality Standards. Any additional funds required above the <br />$25,000 maximum limit must be provided by the investor-owner. Fifty percent <br />(50%) of the loan by the City will be deferred over a 10-year period. The <br />remaining fifty percent (50%) of the original local investment will be amortized <br />over a 10-year period at 3% interest. <br /> <br />A lien will be placed on the rehabilitated property for both the deferred loan and <br />the amortized loan. There is no penalty for early payment if the investor-owner <br />chooses to remove the lien on the property. Payback on the deferred portion of <br />the lien is not required until the property is sold or otherwise transferred. <br /> <br />The landlord will be contractually required to rent to a qualified LMI tenant at <br />rents not in excess of 30% of the occupant's household income during the 10-year <br />period or will be required to repay the full 100% loan immediately minus any <br />monthly payments paid to date. <br /> <br />C. Relocation <br /> <br />In instances where a property is encountered 'that is documented as "Unsuitable for <br />Kehabilitation" based on the inability to physically stabilize it and bring it into <br />compliance with HUD Section 8 Housing Quality Standards, the City has the <br />option of voluntarily relocating the family from the dilapidated house. The <br />relocation would be to a comparable house in standard condition or to a house that <br />can be rehabilitated to Section 8 standards. The property to be rehabilitated must <br />be located in the Southside Neighborhood. Kelocation payments/down payment <br />assistance plus rehabilitation costs cannot exceed $25,000. This does not include <br />reasonable moving expenses. <br /> <br />If the relocation involves a rental unit there are three options to explore. The first <br />involves a homeownership opportunity in which the Housing Rehabilitation <br />Coordinator provides program funds to assist with financing, and assists in <br />negotiating with financial institutions or assists the renter-occupant in negotiating <br />with the investor-owner for the purchase of the existing unit and providing for the <br />substantial reconstruction of the property. Secondly, the tenant can be relocated to <br />a comparable available rental unit. If neither of these options are .achieved the <br />Housing Kehabilitation Coordinator must terminate the case file. <br /> <br />There are two options for units that are owner-occupied and are documented <br />unsuitable for rehabilitation. The owner-occupant can be relocated to a comparable <br /> <br />7 <br /> <br /> <br />