PARTICIPATION GUIDELINES

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COMMUNITY PARTNERS LOAN POOL Participation Guidelines 1

North Carolina Housing Finance Agency

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North Carolina Housing Finance Agency

Strategic Investment Group

Joshua Burton, Team Leader Home Ownership Development, 919.877.5678 Sonia Joyner, Team Leader Strategic Investment Services, 919.877.5630

Donna Coleman, Community Development Coordinator, 919.981.5006 Mark Lindquist, Sr. Program Compliance Analyst, 919.501.4263 Deborah Hamilton, Sr. Program Documentation Specialist, 919.877.5709

Kim Hargrove, Lead Loan Pool Underwriter, 919.877.5682 Mailing Address: Post Office Box 28066 - Raleigh, NC 27611-8066

Delivery Address: 3508 Bush Street - Raleigh, NC 27609

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PARTICIPATION GUIDELINES

1. Program Overview

The North Carolina Housing Finance Agency’s COMMUNITY PARTNERS LOAN POOL program

provides:

- Up to 15% of sales price as subordinate, deferred-payment, and interest-free loans to homebuyers who are purchasing new and like new homes meeting program standards when CPLP is being combined with Agency first mortgage financing;

- Or up to 10% of sales price in subordinate, deferred-payment, and interest-free loans to homebuyers who are purchasing new and like new homes meeting program standards with approved financing other than the Agency’s first mortgage programs;

- Up to $6,000 fee for organizations that build to certain energy-efficiency standards; and - $1,000 fee for organizations that also build to certain Green Building standards; and - $1,200 fee for organizations as a fee for services for borrower preparation (requires that

borrowers complete at least 8 hours of education & counseling).

- Up to $2,000 to match Individual Development Account savings for participating borrower households.

- CPLP Financing is available to borrowers who are using a variety of first mortgages: o The NC Home Advantage™ First Mortgage (FHA, VA, USDA, or

Conventional)

o The USDA Rural Development 502 loan programs (Direct, Construction-to-Permanent, or Mutual Self-Help programs)

o On a case-by-case basis, other first mortgages for borrowers who meet the program criteria, and can clearly document that other financing would be

demonstratively better for the borrower (i.e. with a Good Faith Estimate and Truth in Lending Statement comparing APR and fees)

If you are a housing counseling agency or offer homeownership programs:

The COMMUNITY PARTNERS LOAN POOL (“CPLP” OR “LOAN POOL”)provides a vital resource for

assisting low-income clients achieve their goal of homeownership. By pairing the COMMUNITY

PARTNERS LOAN POOL with the NCHFA NC Advantage Mortgage, you can assist clients in

purchasing a quality, safe, and energy efficient home with a fixed monthly payment that fits well within their household budget and positions their household for long-term success.

Through CPLP the Agency offers deferred, zero-percent financing of up to 15% of the sales price directly to home buyers. This gap financing allows them to reasonably afford a higher quality home by making payments on only a portion of the total sales price.

If housing development is not your organization’s area of expertise, you can partner with developers or local builders to offer clients a wider range of affordable housing options.

Member organizations are eligible for a $1,200 per unit fee for services for borrower preparation is available to defray expenses. Eligible borrowers must complete a minimum of 8 hours of education and preparation.

If you are a unit of local government or a nonprofit housing organization:

The program can support your goals by providing a resource for promoting home ownership through neighborhood revitalization, partnerships with local builders, and/or new affordable

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COMMUNITY PARTNERS LOAN POOL Participation Guidelines 5 subdivisions. A local home ownership readiness program is essential for success. A $1,200 fee is available to defray the costs associated with preparing clients for home ownership. Eligible borrowers must complete a minimum of 8 hours of education and preparation.

How does the Community Partners Loan Pool work?

1. An eligible organization becomes a “Member” by completing the membership application. Members disclose their plan to offer CPLP as part of a local homebuyer program or for a specific affordable housing project. Membership applications should be updated as homebuyer programs change, staff change, or new projects are added.

2. CPLP Members reserve financing, on a loan-by-loan basis, for homebuyers purchasing homes within the approved projects, or under their homebuyer program approach.

3. After the Agency underwrites the borrower and approves the unit, the Agency provides funds at closing.

4. After the loan is closed, recorded and documentation received, the Agency pays the Member the Fee for services rendered and fees for participation in the SystemVision™ energy

program and certain Green Building Programs.

Program Funding

The Agency offers subordinate loans for your homebuyers of up to 15% of the sales price, as well as SystemVision™ home-performance incentive fees to your organization of up to $6,000, Green Building fees of $1,000, plus a fee for services rendered of $1,200. Because participation in SystemVision™ and Green Building is optional, the total funding depends on which options are used.

In order to support equitable distribution of this resource, the CPLP caps its annual funding to borrowers in any one county to $500,000. Members that serve multiple counties are restricted to a total cap of $600,000 in CPLP funds in any program year, and not more than $500,000 in any one county. Funds are only made available on a buyer-by-buyer, unit-by-unit basis.

Application Process and Schedule

Applications to participate in the CPLP will be accepted on an on-going basis. All Applications that meet Program threshold criteria will be admitted to membership in theCPLP;this is not a competitive program.

Joshua Burton Team Leader / Comm Partner Coord 919-877-5678 [email protected]

Sonia Joyner Team Leader / Comm Partner Coord 919-877-5630 [email protected]

Kim Hargrove Lead Underwriter/Comm Partner Coord 919-877-5682 [email protected]

Donna Coleman Comm Partner Coord. 919-981-5006 [email protected]

Completed applications can be emailed to the any of the staff above. Applications are available for download from the Agency website at:

http://www.nchfa.com/Nonprofits/HPcommunitypartnersloan.aspx.

Please contact a staff member above if interested in applying so they can assist you. Members are invited to meet with Agency staff prior to submitting applications.

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2. Becoming a Member of the Loan Pool

Eligible Applicants for CPLP Membership

The following types of organizations can apply for membership, either individually or in partnerships with other organizations:

 Nonprofit housing development organizations  Housing counseling organizations

 Local governments

 Regional Councils of Government (COGs)

 Community Development Corporations and Community Action Agencies  Local public agencies

 Other organizations (Ask Agency staff members if your organization is eligible.) Eligible Applicants for CPLP membership must have the capacity to prepare lower-income families for successful home ownership and identify program eligible properties. Counseling organizations may partner with builders or focus on identifying available local housing stock. If a nonprofit developer wants to participate in the program but does not have the expertise to offer the necessary homebuyer counseling and education, it can form a partnership with a local

housing counseling agency.

Submitting the Application for Membership

Prospective CPLP Members must submit an Application for CPLP Membership, along with an Application for Project Eligibility Review and/or Program Review. The forms are available in Microsoft Excel. Once an organization is granted membership, it will not need to reapply for membership in future years unless (1) its structure or capacity changes, or (2) it fails to submit its annual CPLP Program Renewal, or (3) the CPLP Member fails to operate the program in

accordance with the program guidelines and is suspended from using CPLP funds.

Agency Evaluation of the Application for Membership

An Applicant’s capacity, legal standing and past performance will be evaluated by the Agency. Applicants should identify a clear process for implementing their projects. Roles and

responsibilities necessary for project implementation must be identified, including, but not necessarily limited to, marketing, home buyer (classroom) education, one-on-one home

ownership counseling, screening and qualifying applicants, and facilitating application for first mortgage financing.

Each application will be evaluated taking the following into consideration:

Applicant Capacity

 If the Applicant is a nonprofit organization, final 501(c) (3) status must have been obtained.

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COMMUNITY PARTNERS LOAN POOL Participation Guidelines 7  The Applicant organization (or at least one key member of the partnership) must have at

least one year of experience in providing housing services and must have developed or facilitated the purchase of at least 5 affordable homes.

 There must be no unresolved audit or monitoring findings or legal proceedings against the Applicant or Partnership.

 Key construction personnel for Applicants who intend to build to the SystemVision™ Energy Standard must participate in a free one-day technical training session provided by Advanced Energy to be eligible for the SystemVision™ incentive.

Development Team

 All roles and responsibilities needed to undertake affordable housing development projects must be identified and assigned to qualified team members.

 The proposed contractor must be eligible to bid on federally-assisted projects.

Housing Counseling

 One-on-one home ownership counseling, by a housing counselor certified by the North Carolina Association of Housing Counselors, HUD, or NeighborWorks, must be available on an as-needed basis. The counseling provider must be approved by the Agency.

Homebuyer Education

 Classroom home buyer education courses (a minimum of 8 hours) with qualified

instructors must be offered. In order to be sufficient for CPLP, all homebuyer education programs must sufficiently cover every one of the following topics at a minimum:

1. Assessing Readiness to Buy a Home 2. Budgeting

3. Credit

4. Financing a Home 5. Home Purchase Process 6. Home Selection

7. Home Maintenance and Home Improvements 8. Financial Planning and Sustaining Home Ownership 9. Avoiding Delinquency and Foreclosure

 For more information, Members should reference the National Industry Standards for Homeownership Education and Counseling at:

http://www.homeownershipstandards.com/Home/Home.aspx

 Nationally certified online home buyer education programs are allowed if the course requires at least 4 hours to complete, completed modules are tracked and documented as part of the online education process, and the potential borrower receives a minimum of 4 hours of one-on-one housing counseling. Contact your community partner coordinator if you plan to use online education.

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3. Getting Your Approach Reviewed for Eligibility

Eligible Projects

If Applicants/Members are supporting the development or revitalization of specific

neighborhoods, they should submit project eligibility review applications for the following types of projects:

 Subdivisions/Neighborhoods;

 Strategic infill and scattered site development; and,  Targeted neighborhood revitalization strategy areas.

Eligible units as part of a project may be single family stick-built, new modular, new

manufactured (HUD code) on permanent foundations, townhouse or condominium units (condos must be Fannie Mae Approved when applicable).

Members can act as developer/builder or choose to partner with developers and builders in their community. As much as reasonably possible, Members should also coordinate with their local government partners. The goal is to produce high quality, energy efficient, and affordable housing in the most effective way possible.

Project Eligibility Review Approval

Applications for Project Eligibility Review should be submitted when a new Member project is imminent. CPLP approvals are always unit-by-unit, borrower-by-borrower. Reviewed projects will receive a notice of project eligibility approval from the Agency based on the information in the Application.

Technical training by Advanced Energy will be arranged for key staff and contractors of organizations proposing to take advantage of the SystemVision™ Energy Standard. More information on SystemVision™ can be found at:

http://www.advancedenergy.org/portal/systemvision/.

Meetings with Staff

Applicants are welcome to arrange a pre-application meeting with Agency staff to review

applicant goals for how they may work well with CPLP objectives. Typically, Agency staff will visit with the potential member and any potential project site(s).

Threshold Review

For a project to be approved for eligibility, the Member must intend to meet theCPLP

requirements outlined in these guidelines, including the “CPLP Home Site Standards” wherever applicable.

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COMMUNITY PARTNERS LOAN POOL Participation Guidelines 9 All units receiving funding must not exceed the maximum sales price limit (95 percent of Area Median Sales Price: https://www.hudexchange.info/resource/2312/home-maximum-purchase-price-after-rehab-value/). Projects will be evaluated for funding based on the following review criteria:

Project Team

 All roles and responsibilities needed to undertake the proposed project have been identified and assigned to qualified team members.

 The proposed construction general contractor is eligible to bid on federally assisted projects (www.sam.gov – i.e. not disbarred)

Site and Neighborhood

 There must be evidence of adequate infrastructure for and public services to the site.  A site plan with location map must be provided

 The project should meet CPLP Home Site Standards.  See Appendix 2: CPLP Home Site Standards for details.

The “CPLP Home Site Standards,” are designed to ensure that units financed by the CPLP are developed on sites and located in neighborhoods where homes have potential to appreciate in value, home buyers have access to jobs and services, and where any environmental hazards have been properly reviewed and mitigated.

New Construction Unit Design Guidelines

 Home floor plans, specifications and elevations for a representative model must be

provided and will be reviewed for cost effectiveness, energy efficiency and marketability.  Proposed unit sizes should generally be between 900 and 1800 square feet (based on

household size).

 If construction loan appraisals (land and improvements) supporting the proposed sales prices have been done, please submit one or more for representative units.

 The Guidelines should be utilized whenever possible to encourage universal design, durability, and energy efficiency.

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4. Getting Your Homebuyer Program Approach

Reviewed

Eligible Homebuyer Program Approaches

Applicants/Members can submit program eligibility review applications for their homebuyer program.

Under a homebuyer program approach, eligible may be single family stick-built, new modular, new manufactured (HUD code) on permanent foundations, townhouse or condominium units (condos must be Fannie Mae Approved when applicable).

Both new and locally available housing in like new condition may be submitted. For existing housing, the partner may coordinate the rehabilitation of the property or simply identify newer properties in like new condition. In the case that the Member will not be managing the rehab and repairs of available existing units, it is of particular importance that borrowers be encouraged to select units with minimal deferred maintenance issues, generally 10 years old and newer.

Evaluating Affordable Housing Stock in Service Area

When reviewing Program Eligibility Applications, the Agency will focus on determining whether there is a sufficient supply of quality, affordable housing below the 95 percent of Area Median Sales Price Limit ( https://www.hudexchange.info/resource/2312/home-maximum-purchase-price-after-rehab-value/) for the county(ies) where the program will be offered as well as a sufficient pipeline of borrowers under 80 percent of the Area Median Income (AMI) Limit. Since a program approach is dependent on a strong overlap of what housing can be made

affordable and what is affordable for a typical 60-80 percent AMI borrower in that county, it is essential that there be an adequate supply of both for a program approach to succeed.

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5. Unit Eligibility: New and Existing Housing

The Community Partners Loan Pool program is designed to support the development and purchase of higher quality homes for households that meet the income requirements. . Existing units must satisfactorily address health, safety, deferred maintenance, and durability issues. Quality, safety, and energy efficiency are important for the long-term success of participating borrowers, and therefore are priorities of the CPLP.

Units that are allowed under CPLP include:

New units

 Members are encouraged to build or participate with developers who build to the SystemVision™ standard, EnergyStar, and other Agency recognized Green Building Programs in order to produce homes that address the long-term affordability of heating and cooling for participating borrowers.

 Newly constructed homes must obtain a certificate of occupancy to be eligible to close the CPLP loan.

Builder Inventory

 Depending on period of vacancy, NCHFA will request additional housing inspections if the property has been unoccupied for more than 12 months. Units more than 12 months old are treated as existing units.

Existing Units

 Units should be less than 10 years old and

o Units must pass one of two minimum property standards (see page 13) o All homes must have a licensed NC housing inspection.

o Repairs must be identified and completed before closing (under a traditional mortgage) or after closing (escrowed as part of the loan structure with Agency approval). Repairs must adequately address:

 all major structural threats to the property (i.e. moisture penetration)  all major deferred maintenance issues (i.e. aging roofs, aging mechanical

systems, etc.)

 safety, air quality, and any threats to the health of the buyers  energy efficiency whenever possible

o Members must document all repairs to be performed and certify that listed repairs were completed.

o If repairs are escrowed, proof of repairs must be submitted before CPLP Member fees will be disbursed. All repairs must be completed no later than 30 days after

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COMMUNITY PARTNERS LOAN POOL Participation Guidelines 12 closing. If repairs will be performed after closing, Agency approval must be obtained.

 OR Units older than 10 years old and will be rehabilitated by the CPLP Member or coordinated by the CPLP Member to meet the existing property standards mentioned above

 Or Units older than 10 years old and will be GUT rehabilitated by the CPLP Member: Units must pass all applicable state and local building codes and receive a new Certificate of Occupancy

 For units older than 1978, all units must be pre-approved by the Agency to be eligible for funding. Units must comply with all applicable State and Federal regulations for Lead-Based Paint.

Required Inspections for Existing Housing

For gut rehabilitated homes the permitting process, state and local code inspections, and corresponding certificate of occupancy adequately satisfy that the property meet a minimum property code (local housing code). Gut rehabilitated units must obtain a newly issued certificate of occupancy. Gut rehabilitated homes must obtain a certificate of occupancy to be eligible to close the CPLP loan.

If the existing unit will not obtain a new certificate of occupancy, the inspections below are required.

Minimum Property Code Inspection

Existing housing must be certified to meet one of two types of minimum property codes. 1. A local minimum property code inspection is acceptable f the local jurisdiction (city or

county) has adopted a minimum property code for existing housing, will inspect, and certify the unit meets the code. Members must provide certification of meeting local housing code. 2. In the absence of a local minimum property code for existing properties, units must pass a

Housing Quality Standards (HQS) inspection or UPCS inspection. This inspection must be performed by an individual qualified to perform HQS inspections, including but not limited to a NC licensed home inspector or local government rehabilitation specialist. These inspections must be documented on the standard HUD forms (52580-A). Members may want to contact local housing authority staff and local government staff to determine if they might be qualified to perform HQS inspections.

Note: UPCS inspections will be replacing HQS inspections in 2015.

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COMMUNITY PARTNERS LOAN POOL Participation Guidelines 13 In addition to meeting one of the minimum property codes, all units must be inspected by a licensed NC home inspector. Whereas the minimum property code inspection is primarily focused on safety for the buyer, the home inspection must cover the functionality of building systems. The inspection should also document the age, based on manufacturer‘s label or estimated age if exact information is not available, of all major equipment and systems, including but not limited to water heater, HVAC, and roof.

In the case of homes that are greater than 10 years old and not part of a member rehabilitation project, the Agency may require specific system inspections if documentation of replacement is not available (i.e. roof, HVAC, water heater/plumbing, etc.). Members should make

borrowers/lenders aware that this may require more time and inspections. Should the inspections of the unit demonstrate that these major systems have less than 5 years of likely usable life, they must be replaced to be eligible for CPLP. Significant signs of deterioration in any key building system or that pose a known risk to the household will require replacement or documentation of repairs.

List of Repairs / Work-Writeup

Members should use a combination of the minimum property inspection and the home inspectionto identify b the list of repairs to be performed on the property.

In the case of a deficiency noted on an inspection, a good rule of thumb for which repairs to prioritize:

1. Threats to the household if not addressed 2. Threats to the property if not addressed

3. High cost to replace/repair items that are likely to have less than five (5) years of usable life In all cases, critical systems should be replaced or repaired if they appear to have less than five (5) years of usable life at inspection.

In the case of an “as-is“ sale, the property must pass a minimum property inspection and the nc home inspection must demonstrate that there are no significant deficiencies with the property. All units with significant deficiencies (health and safety threats, structural threats, minor items that will lead to major repairs if not addressed, etc.) must be repaired or they will be ineligible for participation in CPLP.

Acquisition / Rehabilitation

Acquisition and rehabilitation units must still meet all of the inspection requirements addressed above and any additional applicable local and state code requirements. In most cases, sustantial or gut rehabilitated properties will be required to obtain a new certificate of occupancy to show compliance with NC Building Code.

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COMMUNITY PARTNERS LOAN POOL Participation Guidelines 14 CPLP Members that have the capacity and resources to purchase and rehabilitate existing

properties built after 1978 may reserve program funds for eligible properties. Units should be rehabilitated to meet the current NC Building Code.

Pre-1978 Properties

For existing properties built before1978, CPLP Members that have the capacity and resources to purchase and GUT rehabilitate existing properties may reserve program funds for eligible properties. Members must have a qualified rehabilitation specialist on staff or contract with qualified consultant. Members shall contact their community partner coordinator if planning to rehabilitate and submit a pre-1978 property.

Pre-1978 properties may only be addressed with agency pre-approval. Members will be required to provide verification of certification as a Renovation, Repair and Painting Firm (RRP) as well as verification that a contractor on the project is RRP certified. Additionally, a plan for

addressing testing for lead-based paint and compliance with Lead-Based Paint Poisoning

Prevention Act (42 U.S.C. 4821-4846), the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856) will be required. A full lead clearance report must be

provided for the unit to be eligible for CPLP funds.

Lead Based Paint Pamphlet & Disclosure

For any pre-1978 property addressed, the Member must provide a fully executed copy of the: Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards. All borrowers must be provided a copy of the: Protect Your Family from Lead in the Home pamphlet (found at http://www.hud.gov/offices/lead/library/enforcement/pyf_eng.pdf), whether or not lead has been found in the home.

Timing on Submission

All home inspections, repairs, and minimum property standard inspection should be submitted as part of the reservation request whenever possible. If this documentation cannot be provided at reservation, the Agency reserves the right to withdraw the reservation approval if the property does not adequately meet our program guidelines between the time the funds are reserved and the unit is intended to close.

Maximum Sales Price

Section 215(b) of NAHA requires that the initial purchase price or after-rehabilitation value of homeownership units assisted with HOME funds not exceed 95 percent of the area median purchase price for single family housing, as determined by HUD. Annually, HUD provides a sales price limit by county and by unit type, either new construction or existing construction.

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COMMUNITY PARTNERS LOAN POOL Participation Guidelines 15 This limit is included in the CPLP workbook of forms, and populates automatically when the county and unit type is selected. More information about the sales price limit is available here:

https://www.hudexchange.info/resource/2312/home-maximum-purchase-price-after-rehab-value/.

Both the 95 percent of Area Median Sales Price Limit and the 80 percent Area Median Income Limit may change annually. Both of these limits are absolute limits where the Agency has no flexibility.

SystemVision Only Closings

As part of the CPLP program, the Agency provides a development subsidy in the form of an incentive for homes built to SystemVision and certain Green Building programs. In the case that the CPLP loan will only include the SystemVision (and possibly a Green Building incentive) with no CPLP loan, the Agency will disburse $1,000 to the borrower as downpayment assistance to be applied to the cost of purchasing their home. This $1,000 will be forgiven over 5 years (20% per year) and recorded with a promissory note and deed of trust.

As part of the HOME affordability period requirements, the Agency must disburse a minimum of $1,000 to the borrower so that there are funds to recapture should the borrower not occupy the home as their principle residence during the affordability period, which is also five years. This $1,000 must show on the HUD-1 Settlement statement, and the same requirements of only minimal cash out of closing apply (not to exceed $250). Borrowers must income-qualify for SystemVision Only CPLP loans exactly as they would for any other CPLP loan.

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6. General Loan & Borrower Requirements for

CPLP Assistance

Eligible Home Buyers

Eligible home buyers are able to receive gap financing in the form of interest-free, deferred-payment, subordinate mortgages through the CPLP.

In order for a home buyer to be eligible for CPLPfinancing, they will have acceptable credit and annual gross household incomes at or below 80% of the area median income, adjusted for household size, and sufficient income to afford their monthly payments. Area median incomes are provided by HUD. To determine household income, CPLP uses the definition of annual gross household income used by HUD’s Section 8 program. CPLP uses the HOME income limits as adopted by HUD, which may be adopted after HUD provides its other annual income limits.

To ensure participant eligibility, members of the CPLP will be required to document the household income of home buyers through third party verification. Home buyers' income-eligibility must be verified at the time of full execution of the sales contract.

All CPLP-assisted home buyers must occupy their home as their principal residence.

CPLP Financing Availability & First Mortgage Requirements

Members may request loans for their clients on a first-come, first-served basis. To maximize the efficient use of CPLP funds, Members must ensure that CPLP financing will be used with an approved first mortgage product. Eligible first mortgage products include:

1. The Agency’s NC Home Advantage™™ First Mortgage (FHA, VA, USDA, or Conventional)

2. The USDA Rural Development 502 loan programs (Direct, Construction-to-Permanent, or Mutual Self-Help programs)

3. On a case-by-case basis, alternative first mortgages for borrowers who meet the program criteria, and can clearly document that other financing is objectively better for the borrower. This must be documented with the Good Faith Estimate (GFE) and Truth in Lending Statement (TIL) for the alternative product. The Agency will compare it to the current NC Home

Advantage™ APR, fees, and total monthly payment. Alternative products must be objectively better for the borrower. Terms will be re-verified at closing against the approved GFE. Alternative products must be fixed rate mortgages.

The NC Advantage Mortgage is made available through a network of participating lenders across the state. Please visit the Agency‘s website to find a county by county list of participating

_{Area Median is defined as the higher of the actual county median or the statewide non-metropolitan median. Tables}

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COMMUNITY PARTNERS LOAN POOL Participation Guidelines 17 lenders. Lenders in your county may contact the Agency to be trained to utilize the NC

Advantage Mortgage. CPLP members may request Agency staff to meet with them and area loan officers to answer questions around coordinating CPLP financing and the NC Advantage Mortgage.

CPLP Terms

 The maximum loan amount for any one CPLP loan is limited to a maximum 15% of the sales price when CPLP is used in conjunction with the NC Home Advantage™ first mortgage.

 The maximum loan amount for any one CPLP loan is limited to a maximum 10% of the sales price when CPLP is used with alternative first mortgage.

 The minimum CPLP loan amount is $1,000.

 Loan amounts should be adjusted to reflect what is actually needed to make the home affordable for the borrower.

 Loans will be provided to homebuyers in appropriate amounts that will make the home purchase affordable without over-subsidizing. A loan is considered over-subsidized if the non-amortizing portion of the loan (CPLP gap financing + forgiven subsidy + grants) exceeds 30% of the sales price, excluding amortizing loans at 0%. Requests for over-subsidized loans or financing that exceeds funding and program maximums may be reduced or denied.

 Requests for gap financing will be reduced or withdrawn if a homebuyer is putting less than 20% of their income toward their monthly payment for principal, interest, taxes, and insurance.

 The combined loan-to-value (CLTV) from all sources for homebuyer financing should not exceed 100% of the appraised value, or CPLP financing may be reduced or denied. For a CLTV > 100%, the loan-to-value cannot exceed insurer (FHA, Conv, USDA, VA) limits and must be approved on a case-by-case basis by the Agency. Fees must be reasonable, and the HUD-1 Settlement Statement must demonstrate that the borrower contributed at least $1,000 of their own funds to the transaction if CLTV exceeds 100%. Loans that financially overburden the home buyer (exceed CPLP ratios) will also be denied.

 The length of the borrower’s CPLP mortgage shall be equal to the term of the first mortgage. The term shall not exceed 33 years.

Loan Underwriting Guidelines

CPLP financing is available for borrowers that also meet the underwriting requirements of the CPLP program. Borrowers do not need to be first-time home buyers.

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Borrower Ratios

Members must qualify all borrowers to be assisted by CPLP financing. Their housing expense (Principle + Interest + Taxes + Insurance) ratios MUST be between 20% and 32% of their total monthly household income. The total debt ratio should be below 41%.

Residual Cash Flow Analysis

A residual cash flow analysis will be performed for any borrower whose ratios (housing or total debt) are in the upper range of the program’s normally accepted limits. Borrowers with high ratios must meet a cash flow analysis after evaluating housing expenses (ownership,

maintenance, and utilities), long-term debts, and childcare expenses are examined.

Minimum Credit Score

Eligible borrowers listed on the note must have a minimum middle credit score of 640 to be eligible for CPLP. Buyers with credit scores less than 640 are not eligible to participate. Non-traditional/alternative credit may be considered for buyers participating in the USDA 502 Direct program. Copies of all credit references reviewed by USDA should be included as part of the underwriting package to NCHFA for review or buyers without a credit score.

For USDA 502 Direct borrowers with newly forming credit, the Agency will review borrowers with credit scores 600 – 640 on a case-by-case basis. Member must provide a full credit report with credit history. If the low credit score is only due to limited lines of trade and newly forming credit, the borrower will be considered for CPLP financing. Borrowers with lates, non-medical judgments, and charge-offs in the recent 12 months will not be eligible for consideration.

Borrower Contribution and Cash Out

Eligible borrowers must meet the minimum out of pocket contribution of the lender or insurer(s). Generally, the Agency prefers to have borrowers contribute at least $1,000 of their own funds toward the combination of their down payment, related closing costs, and other fees related to the purchase (inspections, surveys, earnest deposit, appraisals, etc.). This is not a requirement,

but a best practice.

Borrowers generally may not receive cash out of the closing. The Agency prefers that any cash out be applied to the principle loan balance of the CPLP loan. Only very nominal amounts of cash out of closing are allowed due to last minute adjustments to settlement charges, not to

exceed $250. Any cash out of closing is subject to approval by the Agency. Verification of Income (VOEs)

Verification-of-income documents (VOEs) must be dated no more than six months prior to the date of the loan approval. Paystubs may be used if no more than 60 days old at the time the package is submitted for approval and the Member has included related W2’s for the previous two years’ employment. A minimum of 60 days or 2 months of income information must be provided. The home buyer’s income and employment status must remain stable and unchanged

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COMMUNITY PARTNERS LOAN POOL Participation Guidelines 19 from the time of verification through closing. (See Borrower Eligibility section for details on

documentation of income)

Borrower Assets

Borrowers whose total liquid assets exceed $5,000 must have the interest on the value of their assets included when calculating household income for CPLP eligibility. This asset income will be imputed at the current HUD passbook rate (currently 2%).

Subsidy Review

CPLP loans should be provided to home buyers in appropriate amounts that will make homes affordable to them without overuse of subsidy. Over-subsidized loans may be reduced or denied. Loans that financially overburden the home buyer (exceed CPLP ratios) will also be denied. A loan will be considered over-subsidized if the non-amortizing portion of the loan exceeds 30% of the sales price (the combination of deferred subsidy, forgiving subsidy, and grants). Amortizing loans at a low rate or 0% will not be considered in the subsidy review. In no circumstance will CPLP funds be used to lower a home buyers PITI ratio below 20% of their gross income. CPLP funds will be reduced or withdrawn if the home buyer is putting less than 20% of their income toward their PITI.

The combined loan-to-value (CLTV) from all sources for homebuyer financing should not exceed 100% of the appraised value, or CPLP financing may be reduced or denied. For a CLTV > 100%, the loan-to-value cannot exceed insurer (FHA, Conv, USDA, VA) limits and must be approved on a case-by-case basis by the Agency. Fees must be reasonable, and the HUD-1 Settlement Statement must demonstrate that the borrower contributed at least $1,000 of their own funds to the transaction if CLTV exceeds 100%. Loans that financially overburden the home buyer (exceed CPLP ratios) will also be denied.

The Agency wants the limited resources available under the CPLP to assist as many families as possible. Therefore,CPLP funds cannot be used to over-subsidize home buyers. Generally, buyers receiving CPLP assistance must commit between 20% and 32% of their gross income for principal, interest, taxes, and insurance (PITI). More information on eligible home buyers is presented in the Loan Underwriting section, below.

Borrower Documentation and the Underwriting Package

Members must submit to the Agency a Reservation Request form for each prospective borrower. Documents generally are submitted in three phases:

 The Reservation Request: Includes the reservation cover page, environmental review & flood map

 The Underwriting Package: Includes the underwriting cover page, compliance analysis worksheet, affidavits, documentation of income, and inspections for existing properties/ CO for new properties. Generally the first requisition for loan funds (and second

requisition for fees) can be sent now, but may wait until closer to closing when the date is set and amounts are finalized.

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COMMUNITY PARTNERS LOAN POOL Participation Guidelines 20  Closeout documents, requisitions, energy/green certificates, and copies of recorded legal

documents for payment and closeout. Legal documents should be submitted as soon as possible after a closing. Occasionally there is a delay on certificates from energy and green programs. These should be submitted within 45 days of closing.

The process begins with the submission of a CPLP Reservation Request form. This form secures your client a place in the queue for funds and, if approved, ensures that funds are set aside in their name for a period of 150 days. The Reservation Request should be submitted prior to the underwriting package and should include the environmental review and flood map.

Upon reservation approval, underwriting packages should be submitted (at least three weeks prior to closing). As much as possible, please submit all underwriting documents, other than certificate of occupancy, to expedite the underwriting process.

 Underwriting Package Cover Sheet form  Certification of Homebuyer Education  Compliance Analysis worksheet

 First Mortgage Lender’s Good Faith Estimate, Truth in Lending Statement, & Loan Approval Letter (if first mortgage is not a NC Home Advantage™ Mortgage)  Third-party documentation of household income, including 60 days worth of income

information no more than 90 days old  Copy of property appraisal

 Copy of sales contract  Addendum to sales contract

 Borrower Satisfaction Affidavit – (for existing homes)  Buyer Written Agreement

 Copy of Certificate of Occupancy (can be submitted as a closing condition) Other forms, associated with the requisition of funds, that must be submitted include:

 IDIS Set-up Form

 Authorization and Certification form  Requisition of Funds – Mortgage Financing

 Requisition of Funds – Fee for Services Rendered and SystemVision™ Financing

Loan Closings Closings

Prior to closing a CPLP loan, there are three (3) approvals that must be obtained in order for funding to be disbursed:

1. Reservation Approval (including Environmental Review): Reservations can be submitted 150 days prior to closing and no later than four (4) weeks before closing.

2. Underwriting Approval of the buyer(s) (including inspections and repairs for existing homes): Underwriting packages can be submitted as soon as reservation is approved and no later than three (3) weeks before closing.

3. Loan Document Approval (including promissory note, deed of trust, title policy, and

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COMMUNITY PARTNERS LOAN POOL Participation Guidelines 21 Deborah Hamilton ([email protected]) with the closing date after they have received underwriting approval.

NCHFA’s legal team will then contact the closing attorney supplied by the Member.

Members should contact NCHFA with the closing date at least five (5) business days prior to closing. The Agency will contact the closing attorney with instructions.

Requisitions must be submitted to Deborah Hamilton in order to fund the CPLP loan at closing. If provided at least five (5) business days prior to closing, the Agency will transfer funds or send a check to the attorney for the closing.

Closing Documents

Agency loan documents, including a Promissory Note and Deed of Trust will be provided directly to Member’s closing attorney for closing. Executed and recorded loan documents must be delivered to the Agency for each loan within 30 days of closing.

The “Requisition B” form, “IDIS Completion Report”, “Loan Detail Report” and all loan documents must be received and approved by the Agency before any Fee for Services Rendered can be disbursed to the Member. In addition, the SystemVision™ certification must be verified before the SystemVision™ fee can be disbursed. Any Green Building certification must be received before the fee can be disbursed. All these forms must be submitted together. .

Loan Documents and Fee for Services Eligibility

If all loan documents and certifications are not received 45 days after closing, the $1,200 fee for services rendered may be forfeited. For loan documents submitted 45 to 120 days after closing, circumstances will be reviewed to determine if the delay was outside of the member’s control. The team leader or director will make the determination as to whether the extenuating

circumstances were the likely source of the delay. For loan documents submitted more than 120 days after closing, the fee for services rendered shall be forfeited. Membership may be revoked for members consistently delinquent more than 120 days.

Closing CPLP Loans When Combined with USDA 502 Mutual Self-Help or Construction-to-Perm

When CPLP loans are combined with USDA 502 Mutual Self-Help or Construction-to-Permanent loans, USDA will close the construction loan prior to starting construction. It is at this point that USDA underwrites the borrower and approves them. For CPLP, borrowers should be underwritten and conditionally approved very near the time USDA approves the construction loan, but well prior to the conversion to permanent financing.

Further, the CPLP loan amount and disbursement will not occur until the construction loan is converted to permanent financing, as CPLP is only a permanent financing resource. Just like the other uses of the CPLP program, the Agency must be notified a minimum of five (5) business

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COMMUNITY PARTNERS LOAN POOL Participation Guidelines 22 days prior to conversion to provide closing instructions, review the loan documents, and disburse funds.

USDA 502 Direct Underwriting for Credit and Combined Loan to Value

The Agency will on a case-by-case basis underwrite borrowers who are obtaining USDA 502 Direct financing for credit. The Agency requires that the Member provide all applicable credit reference information for the borrower, including credit references for alternative credit and a full credit report with history for borrowers with credit scores. Borrowers must demonstrate good credit performance for a minimum of 12 months prior to application to CPLP. Medical collections will be looked at on a case-by-case basis.

For USDA Construction-to-Permanent loans only, the Agency will review total debts against the final appraised value. Agency staff will make a determination on whether the combined loan to value is reasonable if it exceeds the normal program limits of 100% CLTV.

Loan Modifications, Subordinations and Assumptions

Lenders must contact the Agency about CPLP loans modifications or subordinations for refinance. Each loan requires case-by-case approval for modifications and/or subordination. Assumptions are allowed in the case of transfer of property due to inheritance or changes to the household configuration. Any other reason must be pre-approved by the Agency. In most cases subsequent borrowers must be income qualified to be eligible for assumption due to the

affordability requirements for the HOME funding used in CPLP. In all cases, the assumption and legal documents must be approved by the Agency.

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7. Borrower Eligibility: Documenting Income,

Assets, & Legal Status

Member organizations will be expected to qualify all homebuyers to be assisted by CPLP financing.

Income Requirements

CPLP differs significantly from some home buyer programs with respect to borrower eligibility requirements, calculating the household income (versus qualifying income), and timing of the approval process.

Timing the Verification of Income

When a borrower is accepted into the program, income-eligibility for the CPLP must be verified (or re-verified) within six months of the date that CPLP assistance is received by the homebuyer except in the case of a construction-to-permanent loan where the buyer is qualified at the initial closing.

Verification of income documents must be dated no more than six months prior to loan closing, or else recertification will be required. It is therefore advisable to make a preliminary

determination of income level as early as possible. If a household is near the county 80% threshold, they should be advised that significant improvements to their income prior to loan closing could cause them to exceed the maximum for CPLP eligibility if the process takes longer than six (6) months.

The maximum household income under CPLP is 80% of the county median income, as adjusted for household size. Current income limits can be found at:

http://www.hud.gov/offices/cpd/affordablehousing/programs/home/limits/income/index.cfm .

Documenting Household Income

Unlike some other programs which may calculate earned income or base income only for program eligibility purposes, CPLP requires that all income, both earned and unearned, be included for all household members over 18 years of age (with the sole exception of documented full-time students).

Calculated income must be supported by all applicable third-party documentation, such as:  W2 forms,

 verification of employment/income forms,

 a minimum of 60 days worth of income information not more than 90 days old,  child support decrees,

 divorce decrees and/or separation agreements,

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COMMUNITY PARTNERS LOAN POOL Participation Guidelines 24  award letters for Social Security, Social Security Disability, or Supplemental Security

Income,

 documentation of full-time student status, etc.  payroll ledgers

 section 8 vouchers

 if self-employed: year-to-date profit and loss statement and the previous two (2) years tax returns

Notes Regarding Documentation of Household Income

 In cases where child support has been ordered, but not paid, on behalf of children in the household, the file must contain a statement to that effect.

 Income documentation must be retained on file and submitted to the Agency in the Loan Underwriting Package. Paystubs may be used if no more than two months old at the time the package is submitted for approval and the Member has included related W2’s for the previous two years’ employment. The homebuyer’s income and employment status must remain stable and unchanged from the time of verification through closing. A minimum of 60 days of income information not more than 90 days old must be submitted.

 Annual income is the anticipated gross annual income from all sources received by the family head and spouse (even if temporarily absent) and by each additional member of the family, including all net income derived from assets for the 12-month period following the effective date of certification of income, exclusive of certain types of income as defined below. “Anticipated” means projecting future income based on current circumstances, which may include a recent job loss, a change in marital status, a recent promotion, etc.

 Overtime, commission and bonus earnings must be included in determining household income if the buyer has a documented history of these earnings and they are likely to continue.

 If it is not feasible to anticipate a level of income over a twelve (12) month period, the income anticipated over a shorter period may be annualized, subject to a re-determination at the end of the shorter period.

Annual income includes:

According to 24 CFR 85 (the federal regulations governing the HOME Investment Partnerships Program, from which CPLP funds are derived), annual gross income includes, but is not limited to:

 The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services.  The net income from operation of a business or profession. Expenditures from business

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COMMUNITY PARTNERS LOAN POOL Participation Guidelines 25 determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included as income, except to the extent that the

withdrawal is reimbursement of cash or assets invested in the operation by the family.  Interest, dividends, and other net income of any kind from real or personal property.

Expenditures for amortization of capital indebtedness shall not be used as a deduction in determining net income. Any withdrawal of cash or asset from an investment will be included as income, except to the extent that the withdrawal is reimbursement of cash or assets invested by the family.

Where the family’s net assets exceed five thousand dollars ($5,000), annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD. Members shall note on the compliance analysis worksheet if a potential borrower has more than $5,000 of assets or interest income.

 The full amount of periodic payments received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts, including a lump-sum payment for the delayed start of a periodic payment;

 Payments in lieu of earnings, such as unemployment and disability compensation, worker’s compensation and severance pay (except as noted in below);

 Housing assistance: If the housing assistance payment includes an amount specifically designated for shelter and utilities that is subject to adjustment by the housing assistance agency in accordance with the actual cost of shelter and utilities, the amount of housing assistance income to be included as income shall consist of the amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities, plus the maximum amount that the housing assistance agency could in fact allow for shelter and utilities. If the family’s housing assistance is ratably reduced from the standard need by applying a percentage, the amount calculated under this paragraph shall be the amount resulting from one application of the percentage;

 Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from persons not residing in the dwelling; and all regular pay, special pay and allowances of a member of the armed forces (except as noted below).

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Household Annual income does not include:

 Income from the employment of children (including foster children) under the age of eighteen (18) years;

 Payments received for the care of foster children;

 Lump-sum additions to family assets, such as inheritances, insurance payments

(including payments under health and accident insurance and worker’s compensation), capital gains and settlement for personal or property losses (except as noted above);  Amounts received by the family that are specifically for, or in reimbursement of, the cost

of medical expenses of any family member;

 Income of a live-in aide, as defined in 24 CFR 5.403;

 Amounts of educational scholarships paid directly to the student or educational

institution, and amounts paid by the Government to a veteran, for the use in meeting the costs of tuition, fees, books, equipment, materials, supplies, transportation and

miscellaneous personal expenses of the student.

 Any amount of such scholarship or payment to a veteran not used for the above purposes that is available for subsistence is to be included as income;

 The special pay to a family member serving in the armed forces who is exposed to hostile fire;

 Amounts received under training programs funded by HUD;

 Amounts received by a disabled person that are disregarded for a limited time for

purposes of Supplemental Security Income (SSI) eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS);

 Amounts received by a participant in other publicly assisted programs which are specifically for or in reimbursement of out-of-pocket expenses incurred (special

equipment, clothing, transportation, child care, etc.) and which are made solely to allow participation in a specific program.

 Temporary, nonrecurring or sporadic income, including gifts;

 Amounts specifically excluded by any other Federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance

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COMMUNITY PARTNERS LOAN POOL Participation Guidelines 27 programs that includes assistance under the United State Housing Act of 1937. A notice will be published in the Federal Register and distributed to PHAs and owners identifying the benefits that qualify for this exclusion. Updates will be published and distributed when necessary.

 Earnings in excess of $480 for each full-time student 18 years old or older (excluding the head of household or spouse).

 Amounts paid by a state agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep the developmentally disabled family member at home.

Borrower Assets

Borrowers whose total liquid assets exceed $5,000 must have the interest on the value of their assets included when calculating household income for CPLP eligibility. This asset income will be imputed at the current HUD passbook rate (currently 2%). Members shall note on the

compliance analysis worksheet if a potential borrower has more than $5,000 of assets or interest income.

 Items considered as liquid assets include but are not limited to: checking accounts, savings accounts, cash, CDs, stock accounts, and mutual fund accounts. Protected retirement vehicles such as 401Ks are not considered liquid assets due to the penalty charged to make them liquid.

 Borrowers whose total assets exceed $5,000 must have the interest on the value of their assets (“income off of assets”) included when calculating household income for CPLP eligibility.

 Borrowers whose total liquid assets exceed $5,000 must have the interest on the value of their assets included when calculating household income for CPLP eligibility. This asset income will be imputed at the current HUD passbook rate (currently 2%).

Borrower Marital and Legal Status

 Legally separated and divorced individuals must have a recorded separation agreement with free trader clause, free trader agreement, or divorce decree. A copy of the agreement or decree must be included in the underwriting package; otherwise, evidence of the separated/divorced spouse’s income must be included in the file.

 CPLP Members must have a written policy regarding the eligibility status of

undocumented immigrants, and said policy must be submitted to the Agency for review and approval prior to funding loan. Currently, there is no program, policy that addresses

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COMMUNITY PARTNERS LOAN POOL Participation Guidelines 28 U.S. citizenship or permanent residency status. Due diligence for confirming citizenship and/or residency status and compliance with federal and other requirements for mortgage loan financing for borrowers is left up to the CPLP Member.

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8. Program Options

Members may submit CPLP reservations for units under one of the following options:

Community Partners Loan Pool

Program Option

Option A: CPLP Loan & Energy and Green Building Certification

Option B: CPLP Loan only

Option C: Energy and Green Building Certification Only Project Information Partner Role Developer/ Coordinator Coordinator / Counselor Developer/ Coordinator Property Types

1. New & meets SystemVision™

standard 1. New 1. New 2. New & meets

SystemVision™ & an Agency recognized Green Program

2. Existing and like new

2. Gut-rehab (like new)

3. Gut-rehab (like new) and SV

participant 3. Gut rehab

3. Rehab to agency approved standard 4. Rehab to agency approved standard 4. Rehab to agency approved standard and built after 1978 Project Location Member Project Area

Member Project Area

or Available in Market Member Project Must meet

SystemVision

Yes, to be eligible for

SV No

Yes, to be eligible for SV

Units must meet CPLP

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Program Option

Option A: Gap Loan & Energy Program Certification

Option B: Gap Loan only Option C: Energy Program Certification Only Loan Information Loan available to buyer $1,000 up to 15% of Sales Price with NC

Home Adv

$1,000 up to 15% of Sales Price with NC

Home Adv $1,000 Forgiven Maximum Gap Loan

% to Sales Price

15% with NC Home Adv / 10% with others

products 15% N/A Minimum Loan Amount $1,000 $1,000 $1,000 Maximum Loan Amount 15% (should be adjusted to fit household need) 15% (should be adjusted to fit household need) $1,000 Loan Terms Minimum of 20 years,

Maximum of 33 years Same Same Loan Type Deferred Deferred Forgiven

First Mortgage Loan Product

NCHFA NC Advantage, USDA 502

Direct, or other with

approval Same Same

Recapture Requirements on Second Mortgage

Upon default or sale. If the home is being

inherited by an income-eligible heir,

the Agency may roll over the loan or issue

a new loan.

Upon default or sale. If the home is being

inherited by an income-eligible heir,

the Agency may roll over the loan or issue

a new loan.

Buyer pays remaining principal balance to Agency of $1,000 loan

amount if the home sells or defaults within 5 years of closing. Affordability Period 5 to 10 years (depending on amount of assistance) 5 to 10 years (depending on

amount of assistance) 5 Years

Occupancy Requirements Principle Occupancy by Buyer required during affordability period (considered

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Community Partners Loan Pool

Program Option

Option A: Gap Loan & Energy Program Certification

Option B: Gap Loan only Option C: Energy Program Certification Only Buyer Requirements Homebuyer Education & Counseling Required? Yes, 8 hours

minimum Same Same Homebuyer Ratios

32% front end / 41%

back end Same Same

Credit Scores

640 unless first mortgage is a USDA

502 Direct Same Same

Fee Information

Fee for services $1,200 $1,200 $1,200 SystemVision™ – New

Homes Fee $4,000 N/A $4,000 SystemVision™ –

Existing Homes $5,000 N/A $5,000 SystemVision™ –

Existing Homes +

HVAC $6,000 N/A $6,000

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9. Additional Federal Requirements

The CPLP is funded from the federal HOME Investment Partnership Program (HOME). The HOME Program was established under the National Affordable Housing Act of 1990 and

requires that all housing developed using HOME funds must be consistent with HOME Program regulations. Therefore, in addition to the other CPLP requirements, certain HOME requirements must be met, as outlined in 24 Code of Federal Register Part 92.

Other federal requirements include:

Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA)

It is the goal of the Agency to minimize the displacement of existing residents when federal and state funds are used for rehabilitation or acquisition. CPLP members must comply with all the provisions of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. Applicants proposing projects involving involuntary displacement or relocation are not eligible to participate in the CPLP.

Equal Opportunity and Fair Housing

CPLP members must comply with all federal fair housing laws and regulations, including

affirmative marketing and anti-discrimination policies. Guidance on meeting affirmative marketing requirements and additional information on fair housing and non-discrimination may be found at the website www.hud.gov/groups/fairhousing.cfm.

LEP – Limited English Proficiency

There is a federal requirement that organizations using federal funds from programs like the Community Partners Loan Pool must take specific actions to make sure the people they interact with have access to funds and programs even if they speak English not well or not at all. These organizations must develop and implement a Language Access Plan to address the situations that may arise with individuals experiencing limited language deficiencies. The nature of assistance being provided (i.e. translation, interpretation, documents, family interpretation, etc.) including having the necessary available resources must be part of such a plan. NCHFA reviews Language Access Plans to ensure they are clear

Buyer Written Agreement

The Buyer Written Agreement is part of the CPLP Workbook of Forms and must be signed and submitted as part of the Buyer’s underwriting package. This written agreement incorporates information from other forms and helps the CPLP Program comply with federal HOME funding requirements.

PARTICIPATION GUIDELINES

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Table of Contents

1. Program Overview

2. Becoming a Member of the Loan Pool

3. Getting Your Approach Reviewed for Eligibility

4. Getting Your Homebuyer Program Approach

Reviewed

5. Unit Eligibility: New and Existing Housing

6. General Loan & Borrower Requirements for

CPLP Assistance

7. Borrower Eligibility: Documenting Income,

Assets, & Legal Status

8. Program Options

Community Partners Loan Pool

Community Partners Loan Pool

9. Additional Federal Requirements