National Housing Law
Project
Section
8 Housing |
|
Part B: Sample Homeownership Program
NOTE: The regular text represents statutory or regulatory provisions
required for Section 8 Homeownership Programs.
The bolded text represents discretionary provisions adopted by this
particular Housing Authority.
The bolded italicized text represents language required by regulation
but not included in the final program adopted by this Housing Authority.
It is also used to draw special attention to an issue.
ADMINISTRATIVE PLAN
* * *
SECTION XXIII. SECTION 8 HOME OWNERSHIP PROGRAM
1. GENERAL PROVISIONS.
The Section 8 Home Ownership Program of the Benicia Housing
Authority ("BHA") permits eligible participants in the Section 8 housing
choice voucher program, including participants with portable vouchers,
the option of purchasing a home with their Section 8 assistance rather
than renting. The home ownership option is limited to five percent (5%)
of the total Section 8 voucher program administered by BHA in any fiscal
year, provided that disabled families shall not be subject to the 5% limit.
If applications exceed such 5% limit, participants in the Family Self Sufficiency
("FSS") program shall receive a priority for participation in the home
ownership program.
Eligible applicants for the Section 8 home ownership program must
have completed an initial Section 8 lease term, may not owe BHA or any
other Housing Authority an outstanding debt, and must meet the eligibility
criteria set forth herein.
Section 8 home ownership assistance may be used to purchase the following
type of homes within the City of Benicia: new or existing single-family,
condominium, planned use developments, cooperatives, lofts, live/work units,
or manufactured homes. BHA also will permit portability of Section 8 home
ownership assistance to another jurisdiction, provided the receiving jurisdiction
operates a Section 8 home ownership program for which the Section 8 home
ownership applicant qualifies or authorizes BHA to administer the home
ownership assistance in their jurisdiction.
2. FAMILY ELIGIBILITY REQUIREMENTS.
Participation in the Section 8 home ownership program is voluntary.
Each Section 8 home ownership participant must meet the general requirements
for admission to the Section 8 housing choice voucher program as set forth
in BHA’s Administrative Plan. Such Section 8 family also must be "eligible"
to participate in the home ownership program. The additional eligibility
requirements for participation in BHA’s Section 8 home ownership program
include that the family must: (A) be a first-time homeowner or have a member
who is a person with disabilities; (B) with the exception of elderly and
disabled households, meet a minimum income requirement without counting
income from "welfare assistance" sources; (C) with the exception of elderly
and disabled households, meet the requisite employment criteria; (D)
have completed an initial lease term in the Section 8 housing choice voucher
program; (E) have fully repaid any outstanding debt owed to BHA or any
other Housing Authority; (F) not defaulted on a mortgage securing debt
to purchase a home under the home ownership option; and (G) not have any
member who has a present ownership interest in a residence at the commencement
of home ownership assistance.
A. First-Time Homeowner.
Each Section 8 family, except families with a disabled member, must
be a first-time homeowner. A "first-time homeowner" means that no member
of the household has had an ownership interest in any residence during
the three years preceding commencement of home ownership assistance. However,
a single parent or displaced homemaker who, while married, owned a home
with a spouse (or resided in a home owned by a spouse) is considered a
"first-time homeowner" for purposes of the Section 8 homeownership option;
and the right to purchase title to a residence under a lease-purchase agreement
is not considered an "ownership interest.". A member of a cooperative
(as defined in § 982.4) also qualifies as a "first time homeowner".
B. Minimum Income Requirement.
(1) Amount of Income.
At the time the family begins receiving homeownership assistance,
the head of household, spouse, and/or other adult household members who
will own the home, must have a gross annual income at least equal to the
Federal minimum hourly wage multiplied by 2000 hours.
(2) Exclusion of Welfare Assistance Income.
With the exception of elderly and disabled families, BHA will disregard
any "welfare assistance" income in determining whether the family meets
the minimum income requirement. Welfare assistance includes assistance
from Temporary Assistance for Needy Families ("TANF"); Supplemental Security
Income ("SSI") that is subject to an income eligibility test; food stamps;
general assistance; or other welfare assistance specified by HUD. The disregard
of welfare assistance income under this section affects the determination
of minimum monthly income in determining initial qualification for the
home ownership program. It does not affect the determination of income-eligibility
for admission to the Section 8 housing choice voucher program, calculation
of the family’s total tenant payment, or calculation of the amount of home
ownership assistance payments.
C. Employment History.
With the exception of disabled and elderly households, each family
must demonstrate that one or more adult members of the family who will
own the home at commencement of home ownership assistance is employed full-time
(an average of 30 hours per week) and has been so continuously employed
for one year prior to execution of the sales agreement. In order to reasonably
accommodate a family’s participation in the program, BHA will exempt families
that include a person with disabilities from this requirement. BHA’s
Executive Director may also consider whether and to what extent an employment
interruption is considered permissible in satisfying the employment requirement.
The Executive Director may also consider successive employment during the
one-year period and self-employment in a business.
D. Completion of Initial Lease Term.
Applicants for and new participants in the Section 8 housing choice
voucher program shall be ineligible for participation in the Section 8
home ownership program until completion of an initial Section 8 lease term
and the participant’s first annual recertification in the Section 8 housing
choice voucher program. Nothing in this provision will preclude Section
8 participants that have completed an initial lease term in another jurisdiction
from participating in the Section 8 home ownership program.
E. Repayment of Any Housing Authority Debts.
Participants in the Section 8 housing choice voucher program shall
be ineligible for participation in the Section 8 home ownership program
in the event any debt or portion of a debt remains owed to BHA or any other
Housing Authority. Nothing in this provision will preclude Section 8 participants
that have fully repaid such debt(s) from participating in the Section 8
home ownership program.
F. Additional Eligibility Factors.
(1) Elderly and Disabled Households.
Elderly and disabled families are exempt from the employment requirements
set forth in Section 2. C. above. In the case of an elderly or disabled
family, BHA will consider income from all sources, including welfare assistance
in evaluating whether the household meets the minimum income required to
purchase a home through the Section 8 home ownership program.
(2) Preference for Participation in FSS Program.
Applicants for the home ownership program are not required to participate
in BHA’s Family Self Sufficiency ("FSS") program in order to participate
in the home ownership program. However, in the event the applications
for home ownership assistance exceed five percent (5%) of BHA’s total voucher
program in any fiscal year, FSS participants shall have a preference for
participation in the home ownership program. Participants in an Individual
Development Account ("IDA") program administered by an agency other than
BHA also will receive a preference for home ownership assistance in the
event applicants for home ownership assistance exceed the 5% limitation.
(3) Prior Mortgage Defaults.
If a head of household, spouse, or other adult household member who
will execute the contract of sale, mortgage and loan documents has previously
defaulted on a mortgage obtained through the Section 8 home ownership program,
the family will be ineligible to participate in the home ownership program.
3. FAMILY PARTICIPATION REQUIREMENTS.
Once a family is determined to be eligible to participate in the program,
it must comply with the following additional requirements: (A) complete
a home ownership counseling program approved by BHA prior to commencement
of home ownership assistance; (B) within a specified time, locate the home
it proposes to purchase; (C) submit a sales agreement containing specific
components to BHA for approval; (D) allow BHA to inspect the proposed home
ownership dwelling to assure that the dwelling meets appropriate housing
quality standards; (E) obtain an independent inspection covering major
building systems; (F) obtain BHA approval of the proposed mortgage (which
must comply with generally accepted mortgage underwriting requirements);
and (G) enter into a written agreement with BHA to comply with all of its
obligations under the Section 8 program.
A. Home Ownership Counseling Program.
A family’s participation in the home ownership program is conditioned
on the family attending and successfully completing a home ownership and
housing counseling program provided or approved by BHA prior to commencement
of home ownership assistance. The home ownership and counseling program
will cover home maintenance; budgeting and money management; credit counseling;
negotiating purchase price; securing mortgage financing; finding a home;
and the advantages of purchasing and locating homes in areas that do not
have a high concentration of low-income families.
[Note: § 982.620(b) provides "suggested topics" for the PHA
required pre-assistance counseling program --- which are, for the most
part, included here. BHA omitted suggested topics regarding fair housing,
RESPA obligations and predatory lending issues. These topics should also
be included in the homeownership counseling program.]
The counseling agency providing the counseling program shall either
be approved by HUD or the program shall be consistent with the home ownership
counseling provided under HUD’s Housing Counseling program. BHA may
require families to participate in a BHA-approved home ownership counseling
program on a continuing basis.
B. Locating and Purchasing a Home.
(1) Locating A Home
Upon approval for the Section 8 home ownership program, a family
shall have one hundred eighty (180) days to locate a home to purchase.
A home shall be considered located if the family submits a proposed sales
agreement with the requisite components to BHA. For good cause, BHA may
extend a Section 8 family’s time to locate the home for additional thirty
(30) day increments. During a Section 8 participant’s search for a home
to purchase, their Section 8 rental assistance shall continue pursuant
to the Administrative Plan. If a Section 8 participant family is unable
to locate a home within the time approved by BHA, their Section 8 rental
assistance through the Section 8 housing choice voucher program shall continue.
(2) Type of Home.
A family approved for Section 8 home ownership assistance may purchase
the following type of homes within the City of Benicia: a new or existing
home, a single-family home, a condominium, a home in a planned use development,
a cooperative, a loft or live/work unit, or a manufactured home to be situated
on a privately owned lot or on a leased pad in a mobile home park. The
home must be already existing or under construction at the time BHA determines
the family eligible for home ownership assistance [to purchase the
unit (§ 982.628(a)(2).]. The family also may purchase a home
in a jurisdiction other than the City of Benicia, provided the Housing
Authority in the receiving jurisdiction operates a Section 8 home ownership
program for which the Section 8 home ownership applicant qualifies or
authorizes BHA to administer the home ownership assistance in their jurisdiction.
In the former case, a family’s participation in the Section 8 home
ownership program will be subject to the Section 8 home ownership program
and policies of the receiving jurisdiction.
(3) Purchasing a Home.
Once a home is located and a sales agreement approved by BHA is
signed by the family, the family shall have up to three (3) months, or
such other time as is approved by BHA’s Executive Director or set forth
in the BHA-approved sales agreement, to purchase the home.
(4) Failure to Complete Purchase.
If a Section 8 participant is unable to purchase the home within
the maximum time permitted by BHA, BHA shall continue the family’s participation
in the Section 8 housing choice voucher program. The family may not re-apply
for the Section 8 home ownership program until they have completed an additional
year of participation in the Section 8 housing choice voucher program following
the initial determination of their eligibility for the home ownership option.
(5) Lease-Purchase
Families may enter into lease-purchase agreements while receiving
Section 8 rental assistance. All requirements of the housing choice voucher
program apply to lease-purchase agreements, except that families are permitted
to pay an extra amount out-of-pocket to the owner for purchase related
expenses-- a "home ownership premium." Any "home ownership premium," defined
as an increment of value attributable to the value of the lease-purchase
right or agreement, is excluded from BHA’s rent reasonableness determination
and subsidy calculation, and must be absorbed by the family. When a lease-purchase
participant family is ready to exercise their option, they must notify
the Home Ownership Counselor at BHA and apply for the home ownership option.
If determined eligible for home ownership assistance, the family may be
admitted to the home ownership program and must meet all the requirements
of these policies.
C. Sales Agreement.
Prior to execution of the offer to purchase or sales agreement, the
financing terms must be provided by the family to BHA for approval.
The sales agreement must provide for inspection by BHA and the independent
inspection referred to in Section 3(E) and must state that the purchaser
is not obligated to purchase unless such inspections are satisfactory to
BHA. The contract also must provide that the purchaser is not obligated
to pay for any necessary repairs without approval by BHA. The
sales agreement must provide that the purchaser is not obligated to purchase
if the mortgage financing terms are not approved by BHA pursuant to Section
3(F). The sales agreement must also contain a seller certification
that the seller is not debarred, suspended, or subject to a limited denial
of participation under 24 CFR part 24.
D. Independent Initial Inspection Conducted.
To assure the home complies with the housing quality standards of
the Section 8 program, home ownership assistance payments may not commence
until BHA first inspects the home. An independent inspection of existing
homes covering major building systems also must be completed by a professional
selected by the family and approved by BHA. BHA will not pay for
the independent inspection. The independent inspection report must be provided
to BHA. BHA may disapprove the unit due to information contained in
the report or for failure to meet federal housing quality standards.
E. Financing Requirements.
The proposed financing terms must be submitted to and approved
by BHA prior to close of escrow. BHA shall determine the affordability
of the family’s proposed financing. In making such determination, BHA may
take into account other family expenses, including but not limited to child
care, unreimbursed medical expenses, education and training expenses and
the like. Certain types of financing, including but not limited to, balloon
payment mortgages, unless convertible to a variable rate mortgage, are
prohibited and will not be approved by BHA. Seller-financing mortgages
shall be considered by BHA on a case by case basis. If a mortgage is not
FHA-insured, BHA will require the lender to comply with generally accepted
mortgage underwriting standards consistent with those of HUD/ FHA, Ginnie
Mae, Fannie Mae, Freddie Mac, California Housing Finance Agency (CHFA),
USDA Rural Housing Services, the Federal Home Loan Bank, or other private
lending institution.
F. Compliance With Family Obligations.
A family must agree, in writing, to comply with all family obligations
under the Section 8 program and BHA’s home ownership policies. These obligations
include (1) attending ongoing home ownership counseling, if required
by BHA; (2) complying with the mortgage terms; (3) not selling or transferring
the home to anyone other than a member of the assisted family who resides
in the home while receiving home ownership assistance; (4) not refinancing
or adding debt secured by the home without prior approval by BHA; (5) not
obtaining a present ownership interest in another residence while receiving
home ownership assistance; and (6) supplying all required information to
BHA, including but not limited to annual verification of household income,
notice of change in home ownership expenses, notice of move-out, and notice
of mortgage default. BHA’s Home Ownership Family Obligation policies
are set forth in Appendix A hereto.
G. Compliance Lien
Upon purchase of a home, the family must execute documentation as
required by HUD and BHA, consistent with State and local law, securing
BHA’s right to recapture the home ownership assistance in accordance with
Section 5. C. below. The lien securing the recapture of home ownership
subsidy may be subordinated to a refinanced mortgage.
[Note: Moving to another home in the same PHA jurisdiction, as
well as buying another home in another PHA jurisdiction, is permitted with
continued use of homeownership assistance. See §§ 982.636 &
637.]
4. AMOUNT OF ASSISTANCE.
The amount of the monthly assistance payment will be based on three
factors: the voucher payment standard for which the family is eligible;
the monthly home ownership expense; and the family’s household income.
BHA will pay the lower of either the payment standard minus the total family
contribution ("TFC") or the family’s monthly home ownership expenses minus
the TFC. The Section 8 family will pay the difference.
A. Determining the Payment Standard.
The voucher payment standard is the fixed amount the BHA annually
establishes as the "fair market" rent for a unit of a particular size located
within the BHA jurisdiction. In the home ownership program, the initial
payment standard will be the lower of either (1) the payment standard for
which the family is eligible based on family size; or (2) the payment standard
which is applicable to the size of the home the family decides to purchase.
The payment standard for subsequent years will be based on the higher of:
(1) the payment standard in effect at commencement of the home ownership
assistance; or (2) the payment standard in effect at the most recent regular
reexamination of the family’s income and size. The initial payment standard,
for purposes of this comparison, shall not be adjusted even if there is
a subsequent decrease in family size. BHA will request HUD approval of
a higher payment standard, up to 120% of the published Fair Market Rent
limit, where warranted as a reasonable accommodation for a family that
includes a person with disabilities.
B. Determining the Monthly Home Ownership Expense.
Monthly home ownership expense includes all of the following: principal
and interest on the initial mortgage and any mortgage insurance premium
(MIP) incurred to finance the purchase and any refinancing of such debt;
real estate taxes and public assessments; homeowner’s insurance; maintenance
expenses per BHA allowance; costs of major repairs and replacements per
BHA allowance (replacement reserves); utility allowance per BHA’s schedule
of utility allowances; principal and interest on mortgage debt incurred
to finance major repairs, replacements or improvements for the home including
changes needed to make the home accessible; and homeowner association dues,
fees or regular charges assessed, if any. Home ownership expenses for a
cooperative member may only include BHA approved amounts for the cooperative
charge under the cooperative occupancy agreement including payment for
real estate taxes and public assessments on the home; principal and interest
on initial debt incurred to finance purchase of cooperative membership
shares and any refinancing of such debt; home insurance; the allowances
for maintenance expenses, major repairs and replacements and utilities;
and principal and interest on debt incurred to finance major repairs, replacements,
or improvements, including changes needed to make the home accessible.
C. Determining the Total Family Contribution
The TFC is that portion of the home ownership expense that the family
must pay. It is generally 30% percent of the family’s adjusted income,
plus any gap between the payment standard and the actual housing cost.
All family income (including public assistance), will be counted to determine
the family’s adjusted monthly income for purposes of determining the amount
of assistance.
D. Payment to Family or Lender.
BHA will provide the lender with notice of the amount of the housing
assistance payment prior to close of escrow and will pay BHA’s contribution
towards the family’s homeowner expense directly to the family, unless otherwise
required by the lender. The family will be responsible to submit the entire
mortgage payment to the lender unless the lender requires direct payment
of BHA’s contribution.
5. TERMINATION OF SECTION 8 HOME OWNERSHIP ASSISTANCE.
A. Grounds for Termination of Home Ownership Assistance
(1) Failure to Comply with Family Obligations Under Section 8 Program
or BHA’s Home Ownership Policies.
A family’s home ownership assistance may be terminated if the family fails
to comply with its obligations under the Section 8 program, BHA home ownership
policies, or if the family defaults on the mortgage. If required, the
family must attend and complete ongoing home ownership and housing counseling
classes. The family must comply with the terms of any mortgage incurred
to purchase and/or refinance the home. The family must provide BHA with
written notice of any sale or transfer of any interest in the home; any
plan to move out of the home prior to the move; the family’s household
income and home ownership expenses on an annual basis; any notice of mortgage
default received by the family; and any other notices which may be required
pursuant to BHA home ownership policies. Except as otherwise provided in
this Section, the family may not convey or transfer the home to any entity
or person other than a member of the assisted family while receiving home
ownership assistance.
(2) Occupancy of Home.
Home ownership assistance will only be provided while the family resides
in the home. If the family moves out of the home, BHA will not continue
home ownership assistance commencing with the month after the family moves
out. Neither the family nor the lender is obligated to reimburse the
BHA for home ownership assistance paid for the month the family moves out.
(3) Changes in Income Eligibility.
A family’s home ownership assistance may be changed in the month following
annual recertification of the household income, but participation in
the Section 8 Home Ownership program shall continue until such time as
the assistance payment amounts to $0 for a period of six (6) consecutive
months.
(4) Maximum Term of Home Ownership Assistance.
Notwithstanding the provisions of Section 5(A), subparagraphs 1 through
3, except for disabled and elderly families, a family may receive Section
8 home ownership assistance for not longer than ten (10) years from the
date of close of escrow unless the initial mortgage incurred to finance
purchase of the home has a term that is 20 years or longer, in which case
the maximum term is 15 years. Families that qualify as elderly at the commencement
of home ownership assistance are not subject to a maximum term limitation.
Families that qualify as disabled families at the commencement of home
ownership assistance or at any time during the provision of home ownership
assistance are not subject to a maximum term limitation. If a disabled
family or elderly family ceases to qualify as disabled or elderly, the
appropriate maximum term becomes applicable from the date home ownership
assistance commenced; provided, however, that such family shall be eligible
for at least six additional months of home ownership assistance after the
maximum term becomes applicable. The time limit applies to any member of
the household who has an ownership interest in the unit during any time
that home ownership payments are made, or is a spouse of any member of
the household who has an ownership interest.
B. Procedure for Termination of Home Ownership Assistance.
A participant in the Section 8 Home Ownership program shall be entitled
to the same termination notice and informal hearing procedures as set forth
in the Administrative Plan of the BHA for the Section 8 housing choice
voucher program.
C. Recapture of Home Ownership Assistance
In certain circumstances the home ownership assistance provided to
the family is subject to total or partial recapture upon the sale or refinancing
of the home. Sales proceeds that are used by the family to purchase a new
home with Section 8 home ownership assistance are not subject to recapture.
Further, a family may refinance to take advantage of better terms without
any recapture penalty, provided that no proceeds are realized ("cash-out").
Only "cash-out" proceeds from refinancing and sales proceeds not used to
purchase a new home with Section 8 assistance less those amounts
provided for in §982.640 are subject to recapture. Further,
the amount of home ownership assistance subject to recapture shall automatically
be reduced in annual increments of 10% beginning one year from the purchase
date. At the end of 10 years the amount of home ownership assistance subject
to recapture will be zero.
6. CONTINUED PARTICIPATION IN SECTION 8 HOUSING CHOICE VOUCHER PROGRAM.
A. Default on FHA-Insured Mortgage.
If the family defaults on an FHA-insured mortgage, BHA may permit
the family to move with continued Section 8 housing choice rental assistance
if the family demonstrates that it has (a) conveyed title to the home to
HUD or its designee, as required by HUD; and (b) moved from the home within
the period established or approved by HUD.
B. Default on non-FHA-Insured Mortgage.
If the family defaults on a mortgage that is not FHA-insured, BHA
may permit the family to move with continued Section 8 housing choice voucher
rental assistance if the family demonstrates that it has (a) conveyed title
to the home to the lender, to BHA or to its designee, as may be permitted
or required by the lender; and (b) moved from the home within the period
established or approved by the lender and/or BHA.
7. BHA ADMINISTRATIVE FEE.
For each month that home ownership assistance is paid by BHA on behalf
of the family, BHA shall be paid the ongoing administrative fee described
in 24 C.F.R. §982.152(b).
8. WAIVER OR MODIFICATION OF HOME OWNERSHIP POLICIES.
The Executive Director of BHA shall have the discretion to waive
or modify any provision of the Section 8 home ownership program or policies
not governed by statute or regulation for good cause or to comply with
changes in HUD regulations or directives.
APPENDIX A: SECTION 8 HOME OWNERSHIP OBLIGATIONS
This form is to be signed by the home buyer(s) in the presence of the
Benicia Housing Authority’s (BHA) Home Ownership Program Coordinator. The
Coordinator will explain any and all clauses which you, the home buyer(s),
may not understand.
The following paragraphs describe your responsibilities under the Section
8 Home Ownership Program. If you or members of your household do not meet
these responsibilities, through your actions or your failure to act, you
may be terminated from the Section 8 Home Ownership Program.
1. Family Obligations: You must comply with all Family Obligations
of the Section 8 Housing Choice Voucher Program, excepting only the prohibition
against owning or having an interest in the unit. Family Obligations
§§ 982.551(c),(d),(e),(f),(g) and (j) do not apply to the Section
8 Homeownership Program.
2. Housing Counseling: All participating family members (i.e.
those signing the purchase offer and loan documents) must satisfactorily
complete a BHA provided or approved counseling program prior to commencement
of home ownership assistance. BHA may require any or all participating
family members to attend additional housing counseling classes as a condition
of continued assistance.
3. Purchase Contract: You must include contract conditions in
any Offer to Purchase that give BHA a reasonable time (a) to inspect the
home for compliance with HUD’s Housing Quality Standards; (b) to review
and approve a professional home inspection report obtained by you
from a BHA approved inspector; and (c) approve the terms of your proposed
financing. Advise your Realtor of these requirements.
4. Mortgage Obligations: You must comply with the terms of any
mortgage incurred in the purchase of the property and must notify BHA’s
Home Ownership Program Counselor within five (5) days of receipt
of any late payment or default notice.
5. Occupancy: You must occupy the unit as your principal residence.
You may not transfer, sell, or assign any interest in the property without
BHA’s prior written consent. You may not rent or lease any part of the
premises without BHA’s prior written consent. You must notify BHA in writing
at least 30 days prior to moving out of the house for a period of 30
days or longer or prior to any sale, transfer, assignment, lease or
other form of alienation of the assisted property.
6. Maintenance: You must maintain the property in a decent, safe
and sanitary manner. You must allow BHA to inspect the property within
one-week of a demand by BHA to conduct an inspection. You must correct
any notice of deficiency issued by BHA within the time limit specified
in the notice. If you fail to adequately maintain the property, BHA may
divert the maintenance and replacement reserves portions of the Home Ownership
Assistance Payment to an escrow account to be used to pay for reasonable
and necessary maintenance expenses.
7. Annual Re-examination: You must annually provide BHA with
current information regarding family income and composition in a format
required by BHA.
8. Refinancing: You must notify BHA in writing of any proposal
to refinance the original purchase mortgage or of any proposal to encumber
the property with secondary financing and obtain BHA’s written approval
of such financing prior to executing any loan documents.
9. Default: In the event of a default on your mortgage obligation,
you must cooperate with BHA and the lender to minimize any loss to the
lender in order to maintain your eligibility to continue as a participant
in the Section 8 Housing Choice Voucher Program.
10. Recapture: You must sign and have recorded a lien, in a form required
by HUD, securing BHA’s right to recapture a percentage of home ownership
assistance provided to you upon your sale or refinancing of the home within
a 10 year period after the purchase date. The amount of recapture shall
be calculated in accordance with HUD regulations and shall be subject to
automatic reduction in 10% increments annually beginning one year from
the purchase date.
By signing below, I attest that I have read and understood my obligations
as a participant in the Section 8 Home Ownership Program and I agree to
abide by these responsibilities. I understand that BHA may terminate my
home ownership assistance if I violate any of these obligations, but that
I may request an informal review of any proposed notice of termination
prior to it becoming effective.
|
