I. OVERVIEW OF PROGRAM

Transcription

1 NOTTAWASEPPI HURON BAND OF POTAWATOMI INDIANS HOUSING DEPARTMENT DOWN PAYMENT ASSISTANCE PROGRAM POLICY FUNDED BY: NATIVE AMERICAN HOUSING ASSISTANCE AND SELF-DETERMINATION ACT OF 1996 (NAHASDA) INDIAN HOUSING BLOCK GRANT I. OVERVIEW OF PROGRAM THE NOTTAWASEPPI HURON BAND OF POTAWATOMI INDIANS (NHBP OR TRIBE) HAS ADOPTED THIS DOWN 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 MEMBER APPLICANT 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 DEPARTMENT OF AGRICULTURE (USDA) RURAL DEVELOPMENT DIRECT LOAN, 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 STATE OF MICHIGAN 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. DEFINITIONS 1. "ASSISTANCE LETTER" REFERS TO A LETTER DESCRIBING THE PROGRAM AND DOWN PAYMENT LOAN WHICH THE NHBP HEARING DEPARTMENT WILL PROVIDE TO A MEMBER APPLICANT FOR HIS OR HER USE IN OBTAINING A PRIMARY MORTGAGE LOAN. Amended Resolution Page 1

2 2. "GRANT/LOAN AGREEMENT" 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 DOWN PAYMENT ASSISTANCE PROGRAM. 3. "MEMBER AND/OR MEMBER APPLICANT" 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 ASSISTANCE PROGRAM. 4. MEMORANDUM OF AGREEMENT REFERS TO A MEMORANDUM SIGNED BY MEMBER WHICH DESCRIBES THE GRANT/LOAN AGREEMENT AND LIEN MAINTAINED BY NHBP ON MEMBER S PROPERTY. 5. "NOTE" 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. NOTTAWASEPPI HURON BAND OF POTAWATOMI OR NHBP IS A FEDERALLY RECOGNIZED TRIBE LOCATED IN THE PINE CREEK AREA NEAR ATHENS, MICHIGAN AT /2 MILE ROAD, FULTON, MI "THE PROGRAM OR DPAP" REFERS TO THE NOTTAWASEPPI HURON BAND OF POTAWATOMI INDIANS HOUSING DEPARTMENT DOWN PAYMENT ASSISTANCE PROGRAM POLICY, AS FUNDED BY THE NATIVE AMERICAN HOUSING ASSISTANCE AND SELF-DETERMINATION ACT OF 1996, (NAHASDA) AND/OR THE INDIAN HOUSING BLOCK GRANT. 8. "SECOND MORTGAGE" OR LIEN REFERS TO THE MORTGAGE TO NHBP WHICH SECURES REPAYMENT OF THE MONIES ADVANCED UNDER THE PROGRAM. III. PROGRAM GUIDELINES. A. ELIGIBILITY CRITERIA 1. MEMBER APPLICANT MUST MEET NAHASDA INCOME GUIDELINES AND SHALL DOCUMENT ALL THE INCOME OF ALL INDIVIDUALS LIVING IN MEMBER APPLICANT S HOUSEHOLD BY PROVIDING SIGNED COPIES OF INCOME TAX Amended Resolution Page 2

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. MEMBER APPLICANT 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 MEMBER APPLICANT RELINQUISHES ALL OWNERSHIP RIGHTS TO SAID HOME WITHOUT ANY FINANCIAL CONSIDERATION BEING RECEIVED FOR SAID RELINQUISHMENT; OR b. MEMBER APPLICANT SEEKS TO ACQUIRE A NEW PRINCIPAL RESIDENCE IN CALHOUN, KALAMAZOO OR BRANCH COUNTIES BECAUSE THE MEMBER APPLICANT 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 APPLICANT WHO STILL OWNS HIS/HER FORMER PRINCIPAL RESIDENCE IS NOT ELIGIBLE FOR DPAP FUNDS. 5. MEMBER APPLICANT 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 HOUSING DEPARTMENT IN CONNECTION WITH PREVIOUS PARTICIPATION IN A FEDERALLY ASSISTED HOUSING Amended Resolution Page 3

4 PROGRAM. 8. MEMBER APPLICANT MUST AGREE TO SIGN A GRANT/LOAN AGREEMENT PROVIDED BY NHBP PROVIDING FOR REPAYMENT IN THE EVENT OF DEFAULT BY MEMBER APPLICANT, AS WELL AS SECOND MORTGAGE/LIEN IN FAVOR OF NHBP. B. RESTRICTIONS ON USE OF DOWN PAYMENT ASSISTANCE GRANT/LOAN FUNDS 1. NATURE OF PREMISE. MEMBERS MAY PURCHASE EITHER EXISTING STICK BUILT, MODULAR, OR MANUFACTURED PANELIZED HOMES. ADDITIONAL RESTRICTIONS/CONDITIONS APPLY IN THE FOLLOWING SITUATIONS: a. PINE CREEK RESERVATION. 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. MODULAR HOMES ON SUITABLE LAND. NEW MODULAR HOMES ARE ELIGIBLE PROVIDED MEMBER APPLICANT 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. THE SITE MUST CONFORM TO SUCH OTHER CONDITIONS AS THE NHBP MAY, FROM TIME TO TIME, REQUIRE. c. NEW CONSTRUCTION. 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. UNDER THESE CIRCUMSTANCES THE LENDER OR TITLE COMPANY SHALL NOT RELEASE ESCROWED FUNDS FOR "DRAW REQUESTS". ESCROWED FUNDS SHALL ONLY BE APPLIED AT CLOSING FOR PREMISES PERMITTED UNDER THE DOWN PAYMENT ASSISTANCE PROGRAM. 2. APPRAISAL. 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. PRE-PAYMENT OF FEES. MEMBER APPLICANTS SHALL PAY THE APPRAISAL AND/OR CREDIT REPORT FEES AND/OR INSPECTION FEES (IF NECESSARY) AT Amended Resolution Page 4

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. ALLOWABLE CLOSING/DOWN PAYMENT COSTS. ELIGIBLE COSTS UNDER THE DOWN PAYMENT ASSISTANCE PROGRAM MAY INCLUDE: a. DOWN 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. PROPERTY SURVEY, IF ANY; f. RECORDING 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. LOAN ORIGINATION FEE UP TO 2% OF LOAN AMOUNT. C. LIMITATIONS 1. FUNDING UNDER THIS PROGRAM IS AVAILABLE ONLY TO MEMBERS RESIDING WITHIN THE STATE OF MICHIGAN. 2. A COMPLETED APPLICATION FOR THE DOWN PAYMENT ASSISTANCE PROGRAM MUST BE SUBMITTED. 3. THE DWELLING OBTAINED THROUGH DOWN PAYMENT ASSISTANCE MUST BE THE PRIMARY RESIDENCE OF MEMBER APPLICANT. 4. THE MEMBER APPLICANT MUST COOPERATE FULLY IN THE PRE- Amended Resolution Page 5

6 HOMEOWNERSHIP COUNSELING PROGRAM ESTABLISHED FOR THE DOWN PAYMENT ASSISTANCE PROGRAM. 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 MEMBER APPLICANT WILL NOT QUALIFY FOR THE HOUSING IMPROVEMENT 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. THE HOUSING DEPARTMENT CANNOT PROVIDE DOWN PAYMENT ASSISTANCE FOR TRANSACTIONS INVOLVING LAND CONTRACTS OR ANY LEASE-TO-PURCHASE SCENARIOS. 8. THE MORTGAGE SECURED MUST HAVE REASONABLE TERMS, INCLUDING A 30- YEAR TERM AT A FIXED AND REASONABLE INTEREST RATE. 9. THE 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 APPLICANT. 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 UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) REQUIREMENTS THAT ANY HOME PURCHASED THROUGH THE PROGRAM MEET ALL LOCAL HOUSING CODES AND HUD'S PUBLISHED HOUSING QUALITY STANDARDS. D. IMPLEMENTATION Amended Resolution Page 6

7 1. MEMBER APPLICANT MUST SIGN A COUNSELING AGREEMENT THAT SHALL REQUIRE THE MEMBER APPLICANT 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 DOWN PAYMENT ASSISTANCE PROGRAM. 3. MEMBER APPLICANT MUST PARTICIPATE IN A PRE-HOMEOWNERSHIP COUNSELING PROGRAM TO BE CONDUCTED BY THE HOUSING COUNSELOR, OR HIS OR HER DESIGNEE. IN THE PRE-PURCHASE SESSIONS THE HOUSING COUNSELOR AND THE MEMBER APPLICANT SHALL IDENTIFY HOMEOWNERSHIP-ORIENTED GOALS. THE HOUSING COUNSELOR SHALL THEN PRESCRIBE AN ACTION PLAN TO MEET THOSE GOALS AND SHALL MONITOR MEMBER APPLICANT S PROGRESS TOWARD ATTAINING THE IDENTIFIED GOALS. 4. ONCE THE GOALS ARE REACHED, THE HOUSING COUNSELOR 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 INSPECTOR TO ASSESS CONFORMANCE WITH NAHASDA STANDARDS AND TO DETERMINE THE COST OF REPAIRS NECESSARY TO BRING THE HOME INTO SUCH CONFORMANCE. 6. CONDITIONAL APPROVAL. 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 HOUSING DIRECTOR MAY GRANT CONDITIONAL APPROVAL OF THE APPLICATION. THE CONDITIONAL APPROVAL SHALL IDENTIFY THE AMOUNT OF DOWN PAYMENT ASSISTANCE PROGRAM FUNDS MEMBER APPLICANT WILL BE AWARDED IF ALL REMAINING REQUIREMENTS, DESCRIBED BELOW, ARE SATISFIED. b. IF THE NHBP HOUSING DEPARTMENT DENIES THE APPLICATION, THE DEPARTMENT SHALL PROVIDE WRITTEN NOTIFICATION TO MEMBER APPLICANT 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 Amended Resolution Page 7

8 APPLICATION. C. A NY MEMBER APPLICANT WHO HAS HAD HIS OR HER APPLICATION DENIED SHALL HAVE THE RIGHT TO APPEAL THE HOUSING DEPARTMENT S DETERMINATION AND REQUEST REVIEW OF HIS OR HER APPLICATION BY THE TRIBAL COUNCIL. TRIBAL COUNCIL SHALL NOT HAVE THE AUTHORITY TO WAIVE ANY OF THE REQUIREMENTS OF THESE GUIDELINES BUT SHALL DETERMINE IF THE HOUSING DEPARTMENT S DECISION WAS IN ERROR. IT SHALL BE PRESUMED THAT THE HOUSING DEPARTMENT S DECISION WAS CORRECT AND AN AGGRIEVED MEMBER APPLICANT 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. IT IS THE RESPONSIBILITY OF THE MEMBER APPLICANT TO NOTIFY THE HOUSING DEPARTMENT OF THE CLOSING DATE AT LEAST TEN BUSINESS DAYS PRIOR TO THAT DATE. 9. CLOSING. 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 DEPARTMENT 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 MEMBER APPLICANT, LENDER, REALTOR (IF ONE IS INVOLVED), CLOSING Amended Resolution Page 8

9 AGENT, AND THE NHBP FINANCE DEPARTMENT. c. THE DOWN PAYMENT CHECK WILL BE PAYABLE TO THE TITLE COMPANY OR THE CLOSING OFFICER, FOR DEPOSIT INTO AN ESCROW ACCOUNT UNTIL FINAL CLOSING. MEMBER APPLICANT 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. ASSISTANCE AMOUNTS 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. PROGRAM 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, IF, AT ANY TIME EITHER DURING THE APPLICATION PROCESS OR AFTER PURCHASE OF THE HOME, IT IS DETERMINED THAT MEMBER APPLICANT PROVIDED FALSE, INCOMPLETE OR INACCURATE INFORMATION REGARDING ANY ELIGIBILITY FACTOR, AN INVESTIGATION TO DETERMINE FRAUD WILL BE CONDUCTED. IF IT IS DETERMINED THAT FRAUD HAS BEEN COMMITTED, THE MEMBER APPLICANT WILL BE SUBJECT TO PENALTIES UNDER APPLICABLE FEDERAL, STATE, OR TRIBAL LAWS. IN 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.LIEN REQUIREMENTS; DEFAULT BY MEMBER. 1. REQUIREMENTS OF MEMBERS AND DEFAULT PROVISION Amended Resolution Page 9

10 a. FIVE YEAR OCCUPATION. 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. "PRIMARY 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. LIEN. AS A CONDITION OF THE PROGRAM GRANT, THE NHBP WILL REQUIRE MEMBER 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. DEFAULT.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) (II) 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; PLEDGING 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) FAILURE TO PAY ANY TAX OR ASSESSMENT WHEN DUE; (V) ISSUANCE OF A NOTICE OF FORFEITURE, FORECLOSURE OR INSTITUTION OF FORECLOSURE OR FORFEITURE PROCEEDINGS OF Amended Resolution Page 10

11 ANY KIND; (VI) THE CREATION OF A LIEN OF ANY KIND AGAINST THE PROPERTY; (VII) MEMBER APPLICANT FILING FOR BANKRUPTCY OR BEING PLACED INTO BANKRUPTCY OR RECEIVERSHIP; (VIII) FAILURE TO MAINTAIN ADEQUATE INSURANCE ON THE PREMISE; (IX) FAILURE 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 MEMBER PRIOR TO THE COMMENCEMENT OF THE BUSINESS. Amended Resolution Page 11

12 d. THE 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 NOTE 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 MEMBER 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% AFTER 5 YEARS THE DOWN PAYMENT ASSISTANCE LOAN WILL BE FORGIVEN, CONVERTED TO A GRANT, AND THE LIEN DISCHARGED. IN THE EVENT THE NOTE 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 HOUSING DEPARTMENT ACTIVITIES 1. DIRECTOR'S ASSISTANCE. THE NHBP HOUSING DIRECTOR 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. Amended Resolution Page 12

13 2. DOWN PAYMENT SEMINAR. THE NHBP HOUSING DIRECTOR MAY CONTRACT WITH A THIRD PARTY PROVIDER FOR A MEMBER EDUCATION SEMINAR. THE SEMINAR MAY INCLUDE: a. A REVIEW OF THE DOWN PAYMENT ASSISTANCE PROGRAM; b. INTRODUCTION TO THE LOAN/MORTGAGE PROCESS; c. MEMBER ORIENTATION; d. OVERVIEW OF HOME SELECTION OPTIONS; e. OVERVIEW OF EXTENDED SERVICES AVAILABLE THROUGH THE NHBP HOUSING DEPARTMENT. 3. EXTENDED SERVICES. NHBP HOUSING DEPARTMENT STAFF MAY PROVIDE ADVICE WHEN IT BELIEVES IT NECESSARY OR MEMBER APPLICANT REQUESTS IT FOR: a. RECOMMENDATIONS TO LENDING INSTITUTIONS FOR SECURING A LOAN; b. RECOMMENDATIONS TO REALTORS FOR CHOOSING A HOME WHICH COMPLIES WITH THE PROGRAM GUIDELINES. 4. CLOSINGS. THE NHBP HOUSING DEPARTMENT STAFF MAY ASSIST MEMBER APPLICANT AT CLOSING TO HELP MEMBER WITH THE FOLLOWING: a. MAKING APPROPRIATE CALCULATIONS FOR THE DOWN PAYMENT ASSISTANCE PROGRAM ASSISTANCE GRANT; b. EXECUTING THE NECESSARY DOCUMENTS; c. OBTAINING FIRE AND CASUALTY INSURANCE DOCUMENTS. Amended Resolution Page 13