I. OVERVIEW OF PROGRAM

(1)

Amended Resolution 01‐20‐11‐02

Page 1

N

OTTAWASEPPI

H

URON

B

AND OF

P

OTAWATOMI

I

NDIANS

—

H

OUSING

D

EPARTMENT

D

OWN

P

AYMENT

A

SSISTANCE

P

ROGRAM

P

OLICY

F

UNDED

B

Y

:

N

ATIVE

A

MERICAN

H

OUSING

A

SSISTANCE AND

S

ELF

-D

ETERMINATION

A

CT OF

1996

(NAHASDA)

—

I

NDIAN

H

OUSING

B

LOCK

G

RANT

I. O

VERVIEW OF

P

ROGRAM

T

HE

N

OTTAWASEPPI

H

URON

B

AND OF

P

OTAWATOMI

I

NDIANS

(NHBP

OR

T

RIBE

)

HAS ADOPTED THIS

D

OWN

PAYMENT

ASSISTANCE

PROGRAM TO INCREASE HOME OWNERSHIP AND MAKE

HOUSING OPPORTUNITIES MORE AFFORDABLE FOR ENROLLED MEMBERS OF THE

NHBP

WHOSE INCOME FALLS BELOW ESTABLISHED INCOME LIMITS UNDER THE

NATIVE

AMERICAN

HOUSING

ASSISTANCE AND SELF-DETERMINATION

ACT OF 1996

(NAHASDA).

PROGRAM

GRANTS ARE AVAILABLE TO QUALIFIED MEMBERS FOR DOWN PAYMENT

,

MORTGAGE RATE BUY DOWN, AND CLOSING COSTS.

THE PROGRAM ALSO PROVIDES COUNSELING ON HOME

OWNERSHIP FOR ELIGIBLE MEMBERS WHO WISH TO PROGRESS FROM

M

EMBER

A

PPLICANT TO HOMEOWNER.

THE PROGRAM WILL ASSIST ELIGIBLE MEMBERS WHO QUALIFY FOR A

MORTGAGE LOAN FOR THE PURCHASE OF AN EXISTING SINGLE

-

FAMILY HOME OR FOR NEW CONSTRUCTION OF A SINGLE-FAMILY HOME THROUGH A LENDING INSTITUTION INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC), UNITED STATES

D

EPARTMENT OF

A

GRICULTURE

(USDA)

R

URAL

D

EVELOPMENT

D

IRECT

L

OAN

,

OR

MICHIGAN

STATE

HOUSING

DEVELOPMENT

AUTHORITY

(MSHDA).

PROGRAM

GRANTS SHALL CONTAIN RESALE RESTRICTIONS

.

A

RECIPIENT OF A PROGRAM GRANT SHALL GRANT NHBP A SECURITY INTEREST IN THE PREMISE WHICH IS PURCHASED OR CONSTRUCTED WITH THE GRANT AS EVIDENCED BY A SECOND MORTGAGE.

RESALE

RESTRICTIONS AND RIGHTS GRANTED TO

NHBP

SHALL ENSURE THE INTEGRITY OF THE PROGRAM AND CONTINUED AVAILABILITY OF AFFORDABLE LOW TO MODERATE INCOME HOUSING IN THE

S

TATE OF

M

ICHIGAN TO ALL QUALIFIED ENROLLED MEMBERS

.

NHBP

SHALL ONLY PROVIDE A GRANT UNDER THIS PROGRAM TO ANY INDIVIDUAL TRIBAL MEMBER AT ONE TIME DURING HIS OR HER LIFE.

II. D

EFINITIONS

1. "A

SSISTANCE

L

ETTER

"

REFERS TO A LETTER DESCRIBING THE PROGRAM AND DOWN PAYMENT LOAN WHICH THE NHBP HEARING DEPARTMENT WILL PROVIDE TO A

M

EMBER

A

PPLICANT FOR HIS OR HER USE IN OBTAINING A PRIMARY MORTGAGE LOAN.

(2)

Amended Resolution 01‐20‐11‐02

Page 2

2. "G

RANT

/L

OAN

A

GREEMENT

"

REFERS TO THE CONTRACT SIGNED BY A

MEMBER IN WHICH THAT MEMBER PROMISES TO FOLLOW AND ABIDE BY THE TERMS OF THE DOWN

PAYMENT

ASSISTANCE

PROGRAM AS PARTIAL

CONSIDERATION FOR THE MONIES ADVANCED TO MEMBER UNDER THIS PROGRAM AND WHICH GIVES THE

NHBP

THE CONTRACTUAL RIGHT TO MAINTAIN A LIEN ON ANY PREMISE ACQUIRED WITH ASSISTANCE FROM THE

D

OWN

P

AYMENT

A

SSISTANCE

P

ROGRAM

.

3. "M

EMBER

”

AND

/

OR

“M

EMBER

A

PPLICANT

"

REFERS TO AN ENROLLED MEMBER OF THE NOTTAWASEPPI HURON BAND OF POTAWATOMI INDIANS WHO HAS APPLIED FOR OR HAS BEEN GRANTED A LOAN UNDER THIS DOWN PAYMENT

A

SSISTANCE

P

ROGRAM

.

4. “M

EMORANDUM OF

A

GREEMENT

”

REFERS TO A MEMORANDUM SIGNED BY

M

EMBER WHICH DESCRIBES THE

G

RANT

/L

OAN

A

GREEMENT AND

L

IEN MAINTAINED BY NHBP ON MEMBER’S PROPERTY.

5. "N

OTE

"

REFERS TO THE PROMISSORY NOTE SIGNED BY MEMBER

APPLICANT

WHICH EVIDENCES THE LOAN AND PROVIDES FOR REPAYMENT OF THE FUNDS ADVANCED UNDER THE PROGRAM.

6. N

OTTAWASEPPI

H

URON

B

AND OF

P

OTAWATOMI OR

NHBP

IS A FEDERALLY RECOGNIZED

T

RIBE LOCATED IN THE

P

INE

C

REEK AREA NEAR

A

THENS

,

M

ICHIGAN AT

2221 1-1/2 MILE ROAD

, FULTON, MI 49052.

7. "T

HE PROGRAM OR

DPAP"

REFERS TO THE

NOTTAWASEPPI

HURON

BAND

OF

P

OTAWATOMI

I

NDIANS

H

OUSING

D

EPARTMENT

D

OWN

P

AYMENT

ASSISTANCE

PROGRAM

POLICY, AS FUNDED BY THE

NATIVE

AMERICAN

HOUSING

ASSISTANCE AND SELF-DETERMINATION

ACT OF 1996,

(NAHASDA)

AND

/

OR THE

I

NDIAN

H

OUSING

B

LOCK

G

RANT

.

8. "S

ECOND

M

ORTGAGE

"

OR

“L

IEN

”

REFERS TO THE MORTGAGE TO

NHBP

WHICH SECURES REPAYMENT OF THE MONIES ADVANCED UNDER THE PROGRAM

.

III. P

ROGRAM

G

UIDELINES

.

A. E

LIGIBILITY

C

RITERIA

1. MEMBER APPLICANT MUST MEET NAHASDA INCOME GUIDELINES AND SHALL

DOCUMENT

ALL

THE INCOME OF ALL INDIVIDUALS LIVING IN

M

EMBER

APPLICANT’S HOUSEHOLD BY PROVIDING SIGNED COPIES OF INCOME TAX

(3)

Amended Resolution 01‐20‐11‐02

Page 3

RETURNS, COPIES OF PAY STUBS OR W-2 FORMS (OR, EACH HOUSEHOLD MEMBER

MUST INCLUDE A SIGNED AND NOTARIZED STATEMENT LISTING THE REASONS WHY THEY DID NOT FILE TAX RETURNS), OR ANY OTHER DOCUMENTATION DEEMED REASONABLE AND NECESSARY TO THE EVALUATION OF MEMBER’S FINANCIAL SITUATION

.

M

EMBER

A

PPLICANT MUST SIGN A RELEASE AUTHORIZING THE HOUSING

DEPARTMENT TO VERIFY ANY ELIGIBILITY

CRITERIA

.

2. MEMBER APPLICANT MUST BE AN ENROLLED MEMBER OF NHBP.

3. MEMBER APPLICANT AND THE HEAD OF HOUSEHOLD MUST EACH BE AT LEAST

18 YEARS OF AGE OR OLDER.

4. MEMBER

APPLICANT MUST BE A FIRST-TIME HOMEBUYER AND NOT HAVE

OWNED AN INTEREST IN ANY REAL ESTATE WITHIN THE LAST THREE YEARS UNLESS ONE OF THE FOLLOWING EXCEPTIONS APPLY

:

a.

MEMBER

APPLICANT WHO IS RECENTLY DIVORCED OR LEGALLY

SEPARATED, WHERE THE PREVIOUSLY-OWNED HOME WAS HELD JOINTLY AND

M

EMBER

A

PPLICANT RELINQUISHES ALL OWNERSHIP RIGHTS TO SAID HOME WITHOUT ANY FINANCIAL CONSIDERATION BEING RECEIVED FOR SAID RELINQUISHMENT

;

OR

b.

M

EMBER

A

PPLICANT SEEKS TO ACQUIRE A NEW PRINCIPAL RESIDENCE IN

CALHOUN,

KALAMAZOO OR BRANCH

COUNTIES BECAUSE THE MEMBER

A

PPLICANT OR HIS

/

HER SPOUSE RECENTLY RELOCATED TO ACCEPT EMPLOYMENT WITH THE TRIBE OR A TRIBALLY-OWNED ENTERPRISE AND A PREVIOUSLY OWNED RESIDENCE IN ANOTHER LOCATION.

A

MEMBER

A

PPLICANT WHO STILL OWNS HIS

/

HER FORMER PRINCIPAL RESIDENCE IS NOT ELIGIBLE FOR DPAP FUNDS.

5. M

EMBER

A

PPLICANT MUST BE READY

,

WILLING

,

AND ABLE TO PARTICIPATE IN THE PRE-HOMEOWNERSHIP COUNSELING PROGRAM.

6.

MEMBER

APPLICANT MUST QUALIFY FOR A FIRST MORTGAGE LOAN

ADMINISTERED BY AN APPROVED LENDER IN THE AMOUNT OF THE TOTAL PURCHASE PRICE FOR A QUALIFYING HOME

,

LESS ANY AMOUNTS OF THE GRANT AND OR DOWN PAYMENT LOAN TO BE AWARDED UNDER THE PROGRAM, WITHIN THREE MONTHS OF THE APPLICATION APPROVAL DATE

.

7. MEMBER

APPLICANT OR ANY INDIVIDUAL WHO LIVES IN MEMBER

APPLICANT’S

HOUSEHOLD MUST NOT OWE ANY FUNDS TO THE

H

OUSING

D

EPARTMENT IN CONNECTION WITH PREVIOUS PARTICIPATION IN A FEDERALLY ASSISTED HOUSING

(4)

Amended Resolution 01‐20‐11‐02

Page 4

PROGRAM.

8. M

EMBER

A

PPLICANT MUST AGREE TO SIGN A

“G

RANT

/L

OAN

A

GREEMENT

”

PROVIDED BY NHBP PROVIDING FOR REPAYMENT IN THE EVENT OF DEFAULT BY

M

EMBER

A

PPLICANT

,

AS WELL AS SECOND MORTGAGE

/

LIEN IN FAVOR OF

NHBP.

B. R

ESTRICTIONS ON

U

SE OF

D

OWN

P

AYMENT

A

SSISTANCE

G

RANT

/L

OAN

F

UNDS

1. N

ATURE OF

P

REMISE

.

M

EMBERS MAY PURCHASE EITHER EXISTING STICK BUILT

,

MODULAR, OR MANUFACTURED PANELIZED HOMES.

A

DDITIONAL RESTRICTIONS

/

CONDITIONS APPLY IN THE FOLLOWING SITUATIONS

:

a.

P

INE

C

REEK

R

ESERVATION

. IF THE HOME IS TO BE LOCATED ON THE PINE

CREEK

INDIAN

RESERVATION, THE BUILDING PLANS MUST BE

APPROVED BY THE NHBP

TRIBAL

PLANNING AND LAND

USE

COMMITTEE.

b.

M

ODULAR

H

OMES ON

S

UITABLE

L

AND

.

N

EW MODULAR HOMES ARE ELIGIBLE

PROVIDED

M

EMBER

A

PPLICANT LOCATES THE UNIT ON SUITABLE LAND

.

"SUITABLE" MEANS THE LAND MUST PERK FOR A PRIVATE WASTE WATER

SYSTEM

,

BE FREE OF ENCUMBRANCES

,

NOT VIOLATE OF ANY ZONING OR ENVIRONMENTAL CODES, AND NOT BE LOCATED WITHIN A DEVELOPMENT WHICH CHARGES A MONTHLY RENT FOR SPACE

.

T

HE SITE MUST CONFORM TO SUCH OTHER CONDITIONS AS THE NHBP MAY, FROM TIME TO TIME, REQUIRE.

c.

N

EW

C

ONSTRUCTION

.

IF

MEMBER

APPLICANT APPLIES FOR DOWN

PAYMENT ASSISTANCE FOR A HOME TO BE BUILT BY MEMBER, NHBP MAY PLACE THE ASSISTANCE AMOUNT IN A TRUST OR ESCROW ACCOUNT WITH THE LENDER OR TITLE

COMPANY ON TERMS IT DETERMINES

APPROPRIATE

.

U

NDER THESE CIRCUMSTANCES THE LENDER OR

T

ITLE

COMPANY SHALL NOT RELEASE ESCROWED FUNDS FOR "DRAW

REQUESTS

".

E

SCROWED FUNDS SHALL ONLY BE APPLIED AT CLOSING FOR PREMISES PERMITTED UNDER THE DOWN PAYMENT ASSISTANCE PROGRAM.

2. A

PPRAISAL

.

NHBP

SHALL NOT ASSIST IN THE PURCHASE OF ANY PREMISE WHEN THE

APPRAISED VALUE OF THE PREMISES DOES NOT EQUAL OR EXCEED THE PROPOSED PURCHASE PRICE

.

3. P

RE

-

PAYMENT OF

F

EES

.

MEMBER

APPLICANTS SHALL PAY THE APPRAISAL

(5)

Amended Resolution 01‐20‐11‐02

Page 5

THE TIME THESE PROCESSES ARE COMPLETED, BUT IN ALL CIRCUMSTANCES

BEFORE CLOSING PRIOR TO

NHBP

ADVANCING ANY FUNDS UNDER THE TERMS AND CONDITIONS OF THE PROGRAM.

4. A

LLOWABLE

C

LOSING

/D

OWN

P

AYMENT

C

OSTS

.

E

LIGIBLE COSTS UNDER THE

DOWN PAYMENT ASSISTANCE PROGRAM MAY INCLUDE:

a.

D

OWN PAYMENT

/

EQUITY TOWARD PURCHASE PRICE OF HOME

;

b.

REIMBURSEMENT OF HOME INSPECTION FEES OF UP TO $500;

c.

COST OF TITLE EXAMINATION AND MORTGAGE TITLE INSURANCE

WHERE APPLICABLE;,

d.

DOCUMENT PREPARATION I, IF AT SAID DOCUMENT PREPARATION IS AN

EXPENSE OF MEMBER

APPLICANT AND IF THE DOCUMENT PREPARATION

IS PERFORMED BY A THIRD PARTY NOT CONTROLLED BY THE LENDER

;

e.

P

R O P E R T Y S U R V E Y

, I F A N Y

;

f.

R

ECORDING FEES AND PRO

-

RATED SHARE OF TAXES

;

g.

REIMBURSEMENT OF TEST AND CERTIFICATION FEES (SUCH AS WATER AND

ENVIRONMENTAL TESTS

);

h.

SETTLEMENT FEES IF THE CLOSING AGENT IS NOT AN EMPLOYEE OF THE

MORTGAGEE; AND IF THE SETTLEMENT AGENT IS AN INDEPENDENT COMPANY OR A SUBSIDIARY THAT REGULARLY CLOSES LOANS FOR SEVERAL DIFFERENT MORTGAGEES;

i.

L

OAN ORIGINATION FEE UP TO

2%

OF LOAN AMOUNT

.

C. L

IMITATIONS

1. FUNDING UNDER THIS PROGRAM IS AVAILABLE ONLY TO MEMBERS RESIDING

WITHIN THE

S

TATE OF

M

ICHIGAN

.

2. A COMPLETED APPLICATION FOR THE DOWN

PAYMENT

ASSISTANCE

P

ROGRAM MUST BE SUBMITTED

.

3. THE DWELLING OBTAINED THROUGH DOWN PAYMENT ASSISTANCE MUST BE

THE PRIMARY RESIDENCE OF MEMBER APPLICANT.

(6)

PRE-Amended Resolution 01‐20‐11‐02

Page 6

HOMEOWNERSHIP COUNSELING PROGRAM ESTABLISHED FOR THE DOWN

P

AYMENT

A

SSISTANCE

P

ROGRAM

.

5. MEMBER

APPLICANT MUST OCCUPY THE HOME PURCHASED THROUGH THE

PROGRAM WITHIN

30

DAYS OF THE CLOSING DATE AND MUST MAKE THIS HOME THEIR PRINCIPAL RESIDENCE FOR NO LESS THAN FIVE YEARS.

6. ONCE

MEMBER

APPLICANT HAS BEEN ASSISTED THRU THIS PROGRAM, THE

M

EMBER

A

PPLICANT WILL NOT QUALIFY FOR THE

H

OUSING

I

MPROVEMENT

PROGRAM (HIP) OR SIMILAR HOUSING REHABILITATION PROGRAM THAT MIGHT

BE ESTABLISHED BY NHBP FOR A TERM OF 5 YEARS.

7. MEMBER

APPLICANT MUST QUALIFY FOR A MORTGAGE LOAN THROUGH AN

APPROVED FINANCIAL INSTITUTION

.

T

HE

H

OUSING

D

EPARTMENT CANNOT PROVIDE DOWN PAYMENT ASSISTANCE FOR TRANSACTIONS INVOLVING LAND CONTRACTS OR ANY LEASE

-

TO

-

PURCHASE SCENARIOS

.

8. T

HE MORTGAGE SECURED MUST HAVE REASONABLE TERMS

,

INCLUDING A

30-YEAR TERM AT A FIXED AND REASONABLE INTEREST RATE.

9. T

HE SUBJECT HOME MUST RECEIVE A CERTIFIED APPRAISAL THAT MEETS THE REQUIREMENTS OF THE PROGRAM.

10. THE PREMISE PURCHASED MUST BE EITHER A SINGLE-FAMILY DWELLING, A

TOWN HOUSE

,

A CONDOMINIUM UNIT OR A MANUFACTURED

/

MOBILE HOME ON A PERMANENT FOUNDATION.

RENTAL PROPERTIES, CONDOMINIUMS, INCOME

PROPERTIES

,

AND

/

OR COOPERATIVE UNITS WILL NOT BE ELIGIBLE

,

NOR WILL MOBILE HOMES AND/OR MANUFACTURED HOMES THAT ARE NOT PLACED ON A PERMANENT FOUNDATION AND/OR ON PROPERTY NOT OWNED BY MEMBER

A

PPLICANT

.

11. NHBP

WILL NOT PROVIDE ASSISTANCE TO PURCHASE ANY PREMISE CLASSIFIED BY NHBP AS SUBSTANDARD.

SUBSTANDARD MEANS THE HOME

FAILS TO MEET LOCAL CODES OR STANDARDS FOR STRUCTURAL INTEGRITY

,

OPERATING OR MECHANICAL SYSTEMS, ELECTRICAL AND PLUMBING, ZONING, ENVIRONMENTAL RESTRICTIONS AND MATERIAL COMPOSITION; OR WHICH OTHERWISE FAILS TO MEET THE

U

NITED

S

TATES

D

EPARTMENT OF

H

OUSING AND

URBAN

DEVELOPMENT

(HUD) REQUIREMENTS THAT ANY HOME

PURCHASED THROUGH THE PROGRAM MEET ALL LOCAL HOUSING CODES AND

HUD'S PUBLISHED HOUSING QUALITY STANDARDS.

(7)

Amended Resolution 01‐20‐11‐02

Page 7

1. MEMBER

APPLICANT MUST SIGN A COUNSELING AGREEMENT THAT SHALL

REQUIRE THE

M

EMBER

A

PPLICANT AND ANY CO

-

BORROWER TO ATTEND A SERIES OF ONE-ON-ONE COUNSELING SESSIONS PRIOR TO THE PURCHASE OF THE HOME.

2. APPROVAL OF ALL APPLICATIONS SHALL BE CONTINGENT UPON THE

AVAILABILITY OF FUNDING BUDGETED FOR THE

D

OWN

P

AYMENT

A

SSISTANCE

PROGRAM.

3. MEMBER

APPLICANT MUST PARTICIPATE IN A PRE-HOMEOWNERSHIP

COUNSELING PROGRAM TO BE CONDUCTED BY THE

H

OUSING

C

OUNSELOR

,

OR HIS OR HER DESIGNEE.

IN THE PRE-PURCHASE SESSIONS THE HOUSING

C

OUNSELOR AND THE

M

EMBER

A

PPLICANT SHALL IDENTIFY HOMEOWNERSHIP-ORIENTED GOALS.

THE

HOUSING

COUNSELOR SHALL THEN

PRESCRIBE AN ACTION PLAN TO MEET THOSE GOALS AND SHALL MONITOR

M

EMBER

A

PPLICANT

’

S PROGRESS TOWARD ATTAINING THE IDENTIFIED GOALS

.

4. O

NCE THE GOALS ARE REACHED

,

THE

H

OUSING

C

OUNSELOR WILL AWARD A PRE

-HOMEOWNERSHIP EDUCATION CERTIFICATE TO MEMBER APPLICANT.

5. MEMBER

APPLICANT MUST IDENTIFY THE CHOSEN HOME TO THE HOUSING

DEPARTMENT.

THE

HOUSING

DEPARTMENT WILL THEN DISPATCH A HOUSING

I

NSPECTOR TO ASSESS CONFORMANCE WITH

NAHASDA

STANDARDS AND TO DETERMINE THE COST OF REPAIRS NECESSARY TO BRING THE HOME INTO SUCH CONFORMANCE

.

6. CO N DI TI ON A L

AP P RO V A L.

a.

IF THE HOUSING

DEPARTMENT VERIFIES THAT MEMBER

APPLICANT

MEETS ALL OF THE ELIGIBILITY REQUIREMENTS AND THAT ALL DOCUMENTS NECESSARY AND DESIRED FOR APPROVAL ARE PREPARED, THE

H

OUSING

D

IRECTOR MAY GRANT CONDITIONAL APPROVAL OF THE APPLICATION.

THE CONDITIONAL APPROVAL SHALL IDENTIFY THE

AMOUNT OF

D

OWN

P

AYMENT

A

SSISTANCE

P

ROGRAM FUNDS

M

EMBER

APPLICANT WILL BE AWARDED IF ALL REMAINING REQUIREMENTS,

DESCRIBED BELOW, ARE SATISFIED.

b.

I

F THE

NHBP

H

OUSING

D

EPARTMENT DENIES THE APPLICATION

,

THE

DEPARTMENT SHALL PROVIDE WRITTEN NOTIFICATION TO MEMBER

A

PPLICANT ADVISING HIM

/

HER OF ITS ACTION

,

THE REASON FOR THE DENIAL AND ANY CORRECTIVE ACTIONS (I.E. DOCUMENTS NEEDED) THAT WOULD CURE THE DEFICIENCY AND PERMIT APPROVAL OF THE

(8)

Amended Resolution 01‐20‐11‐02

Page 8

APPLICATION.

C

. A

NY

M

EMBER

A

PPLICANT WHO HAS HAD HIS OR HER APPLICATION DENIED SHALL HAVE THE RIGHT TO APPEAL THE

H

OUSING

DEPARTMENT’S DETERMINATION AND REQUEST REVIEW OF HIS OR HER

APPLICATION BY THE

T

RIBAL

C

OUNCIL

.

T

RIBAL

C

OUNCIL SHALL NOT HAVE THE AUTHORITY TO WAIVE ANY OF THE REQUIREMENTS OF THESE GUIDELINES BUT SHALL DETERMINE IF THE

H

OUSING

D

EPARTMENT

’

S DECISION WAS IN ERROR.

IT SHALL BE PRESUMED THAT THE

HOUSING

DEPARTMENT’S DECISION WAS CORRECT AND AN

AGGRIEVED

M

EMBER

A

PPLICANT SHALL HAVE THE BURDEN OF PROOF TO REBUT THIS PRESUMPTION BY CLEAR AND CONVINCING EVIDENCE.

7. A MEMBER

APPLICANT WHO HAS RECEIVED CONDITIONAL APPROVAL MUST QUALIFY

FOR A FIRST MORTGAGE LOAN ADMINISTERED BY AN APPROVED LENDER IN THE AMOUNT OF THE TOTAL PURCHASE PRICE FOR A QUALIFYING HOME

,

WITHIN THREE MONTHS OF THE APPLICATION APPROVAL DATE. IF MEMBER

APPLICANT FAILS TO

SECURE A MORTGAGE LOAN WITHIN THE THREE

-

MONTH TIME FRAME

,

THE

HOUSING

DEPARTMENT SHALL NOTIFY THE MEMBER

APPLICANT IN WRITING

THAT THE APPLICATION APPROVAL HAS BEEN WITHDRAWN UNTIL SUCH TIME AS

MEMBER APPLICANT’S ELIGIBILITY STATUS CHANGES.

8. THE LENDER SHALL PROVIDE STANDARD MORTGAGE LOAN FORMS AND

CONDITIONS, SHALL SET CLOSING DATES AND TIMES, AND SHALL ENSURE THAT ALL APPROPRIATE PAPERWORK IS COMPLETE PRIOR TO CLOSING

.

I

T IS THE RESPONSIBILITY OF THE

M

EMBER

A

PPLICANT TO NOTIFY THE

H

OUSING

D

EPARTMENT OF THE CLOSING DATE AT LEAST TEN BUSINESS DAYS PRIOR TO THAT DATE

.

9. C

LOSING

.

a.

WHEN

MEMBER

APPLICANT IS APPROVED FOR A PROGRAM LOAN AND OR

GRANT IT MUST PROVIDE A PRIMARY MORTGAGE LOAN COMMITMENT LETTER TO THE NHBP HOUSING DEPARTMENT WITHIN A REASONABLE TIME.

AFTER THE CLOSING DATE AND TIME IS SET BY THE LENDER A HOUSING

D

EPARTMENT REPRESENTATIVE WILL REQUEST A DOWN PAYMENT ASSISTANCE CHECK, SUBJECT TO THE TERMS OF THE PROGRAM AND THE AVAILABILITY OF FUNDS

.

b.

THE

NHBP

HOUSING

DEPARTMENT REPRESENTATIVE WILL ISSUE AN

ASSISTANCE

COMMITMENT

LETTER AND SHALL FORWARD COPIES TO

M

EMBER

A

PPLICANT

,

LENDER

,

REALTOR

(

IF ONE IS INVOLVED

),

CLOSING

(9)

Amended Resolution 01‐20‐11‐02

Page 9

AGENT, AND THE NHBP FINANCE DEPARTMENT.

c.

T

HE DOWN PAYMENT CHECK WILL BE PAYABLE TO THE

T

ITLE

C

OMPANY OR THE CLOSING OFFICER, FOR DEPOSIT INTO AN ESCROW ACCOUNT UNTIL FINAL CLOSING

.

M

EMBER

A

PPLICANT MUST ARRANGE WITH LENDER TO HAVE CLOSING DATES SET AT LEAST TEN BUSINESS DAYS AFTER THE

HOUSING

DEPARTMENT MAKES THE PAYMENT REQUEST TO PERMIT

CHECK PREPARATION AND ARRANGEMENT FOR THE FUNDS.

D

.

THE NHBP HOUSING DEPARTMENT REPRESENTATIVE SHALL BE PRESENT

AT ALL CLOSINGS TO ENSURE THAT CLOSING DOCUMENTS CONTAIN

REQUIRED LIEN AND FIRST RIGHT OF REFUSAL PROVISIONS, AND TO SIGN ANY RECORDING DOCUMENTS

.

10. A

SSISTANCE

A

MOUNTS

a.

THE

TRIBE WILL NOT PROVIDE ASSISTANCE OF MORE THAN $20,000 PER

MEMBER

APPLICANT FOR ONE RESIDENCE, OR HOUSEHOLD, NO MATTER

HOW MANY QUALIFIED TRIBAL MEMBERS RESIDE THERE

;

b.

P

ROGRAM DOWN PAYMENT LOANS WILL BE BASED ON UP TO

20%

OF THE PRIMARY MORTGAGE AMOUNT SO LONG AS THE TOTAL PURCHASE PRICE OF THE HOME DOES NOT EXCEED

$175,000.

12. IF, AT ANY TIME EITHER DURING THE APPLICATION PROCESS OR AFTER

PURCHASE OF THE HOME

,

IT IS DETERMINED THAT

M

EMBER

A

PPLICANT PROVIDED FALSE, INCOMPLETE OR INACCURATE INFORMATION REGARDING ANY ELIGIBILITY FACTOR, AN INVESTIGATION TO DETERMINE FRAUD WILL BE CONDUCTED

.

I

F IT IS DETERMINED THAT FRAUD HAS BEEN COMMITTED

,

THE

MEMBER

APPLICANT WILL BE SUBJECT TO PENALTIES UNDER APPLICABLE

FEDERAL

,

STATE

,

OR

T

RIBAL LAWS

.

I

N ADDITION

,

APPROVAL OF THEIR APPLICATION FOR DOWN PAYMENT ASSISTANCE WILL BE WITHDRAWN.

IF

THE ASSISTANCE HAS ALREADY BEEN RENDERED AND THERE IS A FINDING OF FRAUD THE AMOUNTS GRANTED OR LENT THROUGH THE PROGRAM SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND MEMBER APPLICANT(S) SHALL BE REQUIRED TO REPAY THE ENTIRE DOWN PAYMENT AMOUNT

.

E.L

IEN

R

EQUIREMENTS

;

D

EFAULT BY

M

EMBER

.

(10)

Amended Resolution 01‐20‐11‐02

Page 10

a.

F

IVE

Y

EAR

O

CCUPATION

. MEMBER APPLICANTS ARE REQUIRED TO USE

THE PROPERTY PURCHASED UNDER THE PROGRAM AS THEIR

"

PRIMARY RESIDENCE" FOR NOT LESS THAN FIVE YEARS FROM THE DATE MEMBER

APPLICANT MOVES IN.

IF MEMBER CEASES TO USE THE PROPERTY AS

THEIR PRIMARY RESIDENCE BEFORE FIVE YEARS FROM THE DATE OF CLOSING THAT EVENT WILL CONSTITUTE A DEFAULT UNDER THIS AGREEMENT

.

"P

RIMARY RESIDENCE

"

MEANS THAT THE PERSON OCCUPIES THE HOME FOR NOT LESS THAN TEN CONSECUTIVE MONTHS OF THE YEAR

,

EXCEPT FOR INTERRUPTIONS CAUSED BY MEDICAL CONDITIONS OR OTHERWISE APPROVED BY THE NHBP

TRIBAL

COUNCIL.

VACATIONS OR OTHER INTERRUPTIONS OF LESS THAN

THREE

(3)

WEEKS WILL NOT BE CONSIDERED A FAILURE TO OCCUPY

.

b.

L

IEN

.

A

S A CONDITION OF THE PROGRAM GRANT, THE NHBP WILL

REQUIRE

M

EMBER TO

:

1.

EXECUTE LIEN DOCUMENTS GIVING THE NHBP CERTAIN RIGHTS TO RECOVER THE PROPERTY IN THE EVENT OF DEFAULT

;

AND

/

OR

2. THE RIGHT OF FIRST REFUSAL TO NHBP IN CERTAIN

CIRCUMSTANCES

.

c.

D

EFAULT

.THE FOLLOWING SHALL CONSTITUTE A DEFAULT UNDER THE

TERMS OF THIS AGREEMENT AND THE NOTE.

1. FAILURE TO USE THE PROPERTY AS THE PRIMARY RESIDENCE FOR A

CONTINUOUS PERIOD OF SIXTY (60) DAYS AS PROVIDED IN SECTION E(1)(A) ABOVE;

(I)

ASSIGNMENT OR ENTERING INTO AN AGREEMENT TO ASSIGN,

CONVEY OR GRANT ANY INTEREST IN THE PREMISE TO A PERSON

,

FIRM OR CORPORATION OTHER THAN MEMBER

APPLICANT TO

WHOM THE LOAN AND OR GRANT WAS MADE

;

(II)

P

LEDGING THE PREMISE TO ANOTHER AS SECURITY AFTER THE LOAN OR GRANT;

(III)

FAILURE TO MAKE ANY PAYMENT WHEN DUE OR OTHER DEFAULT

IN A TERM OR CONDITION OF ANY MORTGAGE ON THE PREMISE

;

(IV)

F

AILURE TO PAY ANY TAX OR ASSESSMENT WHEN DUE

;

(V)

I

SSUANCE OF A NOTICE OF FORFEITURE

,

FORECLOSURE OR INSTITUTION OF FORECLOSURE OR FORFEITURE PROCEEDINGS OF

(11)

Amended Resolution 01‐20‐11‐02

Page 11

ANY KIND;

(VI)

THE CREATION OF A LIEN OF ANY KIND AGAINST THE

PROPERTY

;

(VII)

M

EMBER

A

PPLICANT FILING FOR BANKRUPTCY OR BEING PLACED INTO BANKRUPTCY OR RECEIVERSHIP;

(VIII)

F

AILURE TO MAINTAIN ADEQUATE INSURA NCE ON THE PRE M ISE

;

(IX)

F

AILURE TO MAINTAIN THE PROPERTY IN GOOD CONDITION AND REPAIR, OR THE COMMISSION OF WASTE; AND,

(X)

USE OF THE PREMISE FOR BUSINESS PURPOSES.

THIS WILL NOT

APPLY TO SMALL HOME BASED BUSINESSES WHICH MAY

,

FROM TIME TO TIME, BE PERMITTED BY THE

TRIBAL

COUNCIL IN

ITS DISCRETION UPON APPLICATION OF

M

EMBER PRIOR TO THE COMMENCEMENT OF THE BUSINESS.

(12)

Amended Resolution 01‐20‐11‐02

Page 12

d.

T

HE OCCURRENCE OF ANY OF THE EVENTS OR CONDITIONS LISTED IN

SECTION

E.1.C.1 ABOVE WILL CONSTITUTE A DEFAULT UNDER THE TERMS

OF THE NOTE AS WELL AS THIS AGREEMENT. THE FAILURE OF THE NBHP TO ENFORCE ITS RIGHTS UNDER THIS AGREEMENT OR THE

N

OTE AT ANY TIME

SHALL NOT CONSTITUTE A WAIVER OF ITS RIGHT TO PROCEED IN THE CASE OF A DEFAULT AT ANY LATER TIME

.

e.

EXCEPT IN THE FINDING OF FRAUD, AS DESCRIBED IN SECTION III.D.11 OF

THIS AGREEMENT WHICH WOULD REQUIRE REPAYMENT OF

100%

OF THE AMOUNT FUNDED REGARDLESS OF THE LENGTH OF TIME BETWEEN THE DISBURSEMENT AND A FINDING OF FRAUD

,

ALL OTHER DEFAULTS IN THE TERMS OF THIS AGREEMENT OR THE NOTE,

NHBP WILL BE ENTITLED TO

RECOVER THE FOLLOWING PERCENTAGES OF THE LOAN FROM

M

EMBER DEPENDING ON THE LENGTH OF TIME FROM THE CLOSING OF THE LOAN:

REQUIRED OWNERSHIP

PERCENTAGE SUBJECT TO RECOVERY

0-2 YEARS 100%

2-3 YEARS

75%

3-4

YEARS

50%

4-5 YEARS

25%

OVER 5 YEARS 0%

A

FTER

5

YEARS THE

D

OWN

P

AYMENT

A

SSISTANCE

L

OAN WILL BE FORGIVEN, CONVERTED TO A GRANT, AND THE LIEN DISCHARGED.

IN

THE EVENT THE

N

OTE IS FOR LESS THAN FIVE

(5)

YEARS

,

THE PERCENTAGES WILL BE ADJUSTED ACCORDINGLY.

f.

NOTICE OF DEFAULT TO MEMBER IS NOT REQUIRED BEFORE ACTION TO

COMMENCE RECOVERY.

F. NHBP

H

OUSING

D

EPARTMENT

A

CTIVITIES

1. D

IRECTOR

'

S

A

SSISTANCE

.

T

HE

NHBP

H

OUSING

D

IRECTOR WILL ASSIST

MEMBER

APPLICANT IN THE APPLICATION PROCESS FOR THE

PROGRAM AND MONITOR THE WRITTEN APPLICATION AND ACCOMPANYING DOCUMENTATION.

THE

NHBP WILL USE APPLICATION INFORMATION TO

DETERMINE INCOME ELIGIBILITY FOR DOWN PAYMENT ASSISTANCE

;

AND IT WILL ASSIST WITH PRE-QUALIFICATION THROUGH AN NHBP APPROVED LENDER OR REAL ESTATE AGENT