( ) The Rent Rehab Program is a deferred-declining loan program.

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1 RENTAL REHABILITATION PROGRAM City of Sandusky Department of Development Thank you for requesting information about the City of Sandusky Rental Rehabilitation Program. The Rental Rehabilitation Program provides financing for the rehabilitation of rental properties. Who is eligible to participate? A landlord that owns a rental property within City of Sandusky is eligible. If approved, a landlord is eligible to apply again in six years. What is a matching funds program? This means that the City of Sandusky may lend up to 65 percent of the cost of the rehabilitation but not to exceed $15,000. You must provide, at minimum, the other 35 percent of the necessary rehabilitation funds. The minimum investment per unit is $5,000. A maximum of $15,000 per unit, with a maximum of $20,000 per landlord is allowed. What are the terms of the loan? The Rental Rehabilitation loan is a 0% interest deferred-declining loan. Twenty-percent of the loan amount is due upon transfer of the property. The remaining 80 percent will decline 20 percent per year over the five years. You must comply with the terms of the Note, Mortgage and Loan Agreement in order to qualify for the no interest loan. What is the payout process for the rehabilitation work? The Rental Rehab funds are a reimbursement. Example: A one-unit rehab is bid out for $20,000. The landlord must up front their 35% of the cost ($7,000) to the City. The City will make payment to the contractor when the work has been completed. If you have any questions, please feel free to contact the Rental Rehabilitation Program at RENTAL REHAB APPLICATION CHECKLIST All owners of the building must read and sign this page and return with your application of Property to be Rehabilitated I am applying for a City of Sandusky Rental Rehab Loan. As the owner of this building, I hereby acknowledge that I have read and understand the following: ( ) The Rent Rehab Program is a deferred-declining loan program. ( ) I am making at least a five-year commitment to the property, and will be signing a mortgage. ( ) If I want to sell the property before the five years are up, The City of Sandusky will not let the buyer assume the loan. ( ) The property must be code compliant for at least five years after completion of the rehab and the City of Sandusky staff will inspect. ( ) I am responsible for renting to low income individuals and families, and that if I do not prove this to the City of Sandusky by submitting a Tenant Annual Certification (TAC) form every year, the loan may be called due. ( ) There are rent controls for at least 5 years. ( ) The Rental Rehab Program has a high rehab standard, including code compliance and lead paint abatement. ( ) Because of the high rehab standard, it could easily cost $30,000 to $35,000 to rehab a typical single family unit. ( ) I am planning to spend no more than $ (enter amount) of my own money on this property, and I have proof that the money is available. () If the unit is occupied, I am responsible for relocation costs of the unit. I have read and understand the above. I understand that non-compliance may mean that City of Sandusky will reject my application, or call the loan due, if made. Signature of Owner Signature of Owner

2 RETURN TO LANDLORD TENANT INFORMATION FORM (TIF) Your landlord has applied for a City of Sandusky Rental Rehabilitation Loan to improve this property. The City of Sandusky needs information about your household and asks that the head of the household fill out this form. Please be thorough and complete the entire form. Tenant s Name Landlord s Name Property Phone Number TENANT INFORMATION FOR ALL HOUSEHOLD MEMBERS Head of Household Only: Are you Hispanic? Yes No NAME SEX AGE HANDICAPPED Yes or No RELATIONSHIP Are You: White White & Black/African American White & Amer. Indian/Alaska Native American Indian/Alaska Native White & Asian Black Black/Afr. Amer. & Amer. Indian/Alaska Native Asian Native Hawaiian/Other Pacific Islander Other Multi Racial RENTAL INFORMATION What is your current rent per month? $ Please check any utilities included in the rent: Heat Electric Hot Water Water/Sewer Are you currently receiving rent assistance? Yes No PROPERTY INFORMATION Number of bedrooms in your unit: INCOME INFORMATION What is your approximate yearly income? $ Please list all monthly income and provide copies with this form (see list in right column) Wages Social Security Social Security SSI Gen. Assistance Pension Alimony/child support Other I certify that my current family size and income level is accurately reported above. Reportable income includes wages, social security, pension, child support, rental income and taxable interest income. I certify that this information is true. I understand that this information is provided as part of a loan application submitted by my landlord for Rental Rehabilitation Loan funds and that there is no obligation on the part of CITY OF SANDUSKY to either make the loan or to certify the tenant's eligibility for Rental Assistance. Please note that you must sign BOTH sides of this form. _ (Required) Please provide documentation for the types of income that your household receives. For example, if your only source of income is wages, you only need to provide a paycheck stub. FOR THE FOLLOWING TYPE OF INCOME: Your household wages and salaries Social Security or other periodic payments Unemployment Compensation Workman's Compensation W-2 payments Net income from operation of a business WE NEED: Copy of a wage statement or 2 recent pay stubs Copy of a Social Security benefit statement Copy of Unemployment Comp. wage statement Copy of Workman's Comp. wage statement Copy of W-2 payments Copy of recent tax statement Thank you for providing this information. If you have any questions, please feel free to contact the Department of Development at STAFF USE ONLY Household Size Household Qualifies Income Limit (80% CM) YES NO Annual Income $ Tenant s Signature Staff Signature

3 Notice Of Available Relocation Services (NARS) Dear Tenant: I (your landlord) have applied for a Rental Rehabilitation Loan through the City of Sandusky s Department of Housing & Neighborhood Development. At this point, nothing has been decided, however, some rehabilitation jobs funded by City of Sandusky involve rehabilitation work so extensive as to make some rental units temporarily uninhabitable. This is rare, but in the unlikely event that this would occur to your unit, I (your landlord) may require you to move, either permanently or temporarily. Should this be necessary, I (your landlord) will notify you of any such action well in advance. The purpose of this notice is to inform you of your rights should this occur. 1. If you are required to move (even temporarily) you may be entitled to certain benefits, but you must still be an eligible tenant to qualify for any benefits. Therefore, you are advised not to move from the property before you are given official notice. You are also advised to continue to pay rent and uphold any other requirements of your tenancy, such as those described in your lease agreement, if you have one. 2. If you have any questions, please contact: Beth Snyder Ohio Regional Development Corporation City of Sandusky 222 Meigs Street Sandusky, Ohio (419) This is my (your landlord) certification to you that I will offer you the opportunity to lease and occupy a suitable, decent, safe and sanitary dwelling upon completion of the project under reasonable terms and conditions. Such reasonable terms and conditions include a term of at least one year beqinninq on the date of completion of the rehab iob at a monthly rent and estimated average utility costs that do not exceed the greater of: 1. Your current monthly rent and estimated averaqe monthiv utilitv costs; or Owner's Certification Regarding Tenant Affordability of Home Assisted Units I have reviewed the HOME Rent Limit chart and the Median Income Figures chart provided by Neighborhood Improvement Development Corporation (found on the "How to Speed Up Your Application" sheet) and hereby certify that in all of my HOME assisted units: 1) All rents adjusted for utilities are within the 65% rent limit. 2) If I have a total of 3 or more HOME assisted units in my HOME Rental Rehabilitation Program projects, 20% of the HOME assisted units have rents which are within the 50% rent limit, as adjusted for utilities. 3) I have examined the income of the tenants and they are all below 80% of median income. 4) For any existing tenants whose household income now exceeds 80% of median income as adjusted for family size, they are now paying as rent subject to provisions of their lease, if any, the lesser of the amount payable by the tenant under State and local law or 30% of the family's adjusted monthly income, as re-certified annually, but no more than market rate. 5) The household incomes of either: a. b. the existing tenants at time of Rental Rehabilitation loan settlement or if the unit was vacant at the time of loan settlement, the first tenants to occupy the unit after loan settlement were below 60% of the median income as adjusted for family size, for the City of Sandusky area except as listed below. (Only fill in if tenant is over 60% of median income) 2. The total tenant payment, as determined under 24 CFR 813: 1 07 if you are low-income, or 30% of gross household income, if you are not low-income. Tenant Name Signature of Owner Rental I have received a copy of this notice. Please note that you must sign BOTH sides of this form. Owner's Signature Signature of Tenant Property Owner must provide each tenant with a completed copy of this form and return the original signed form to: Funded through the City of Sandusky Community Development Block Grant The City of Sandusky is an Equal Housing Lender City of Sandusky Department of Development 222 Meigs Street City of Sandusky, Ohio 44870

4 Keep This Sheet For Your Information---- The City of Sandusky Rental Rehabilitation Program Fact Sheet The following is a summary of some of the major provisions of the funded Rental Rehabilitation Program. 1. TENANT INCOME: Under most circumstances, tenant incomes in units to be rehabilitated cannot exceed: Family Size Income Limit $34,900 $39,900 $44,850 Family Size Income Limit $49,850 $53,850 $57, AFFORDABILITY OF RENT - 100% of the units in the project must bear rents that are "affordable" per HUD guidelines. For example, the maximum rent for a unit in a duplex where the tenant pays all utilities except water and sewer could be as high as $742 per month for a 3 bedroom unit; $586 per month for a 2-bedroom unit; and $470 per month for a 1-bedroom unit. 3. ANNUAL RENT AND TENANT INCOME CERTIFICATIONS Each year for at least ten years after completion of the rehab job, you must submit an acceptable Tenant's Annual Certification (TAC) form for each tenant in an assisted unit. These forms must show the tenant's income and rent are both within the allowable limits or you will be ineligible for partial forgiveness of your loan that year. 4. PRIOR WORK - Any work done before the date the loan is approved will be ineligible for the Program. 5. LEASE PROVISIONS - The program prohibits certain lease provisions in leases between landlords and tenants. These are contained in detail in the Agreement that will be signed at closing. 6. REHABILITATION STANDARD -.Upon completion of the job, the project must meet or exceed City of City of Sandusky building code requirements. 7. REGULAR AFTER REHAB INSPECTIONS - There will be reinspections of each property at least once every three years. The property must remain up to City code. 8. LEAD BASED PAINT (read column on right) - All assisted units are subject to certain activities as determined by HUD such as inspecting, testing, abatement and notification activities. 9. EQUAL OPPORTUNITY AND FAIR HOUSING is applicable through the period of affordability. 10. ACQUISITION, RELOCATION AND DISPLACEMENT regulations as per federal law. 11. COMPLIANCE PERIOD - A Loan Agreement, including Tenant Income and Affordability provisions, which will be in effect for a minimum of ten years from the completion of the rehabilitation job, will enforce compliance with Rental Rehabilitation Program requirements. 12. RENTAL REHABILITATION LOANS ARE SECURED BY A MORTGAGE. 13. AFTER REHAB APPRAISAL- An after - rehabilitation appraisal by an approved appraiser may be necessary. NEW RENTAL REHABILITATION LEAD BASED PAINT REGULATIONS As of September 15, 2000, new Lead Paint Regulations from HUD went into effect. These regulations impose restrictions on the way the Rental Rehabilitation Program is implemented. What do these new regulations mean to you? In the absence of a certified lead inspection, the City of Sandusky assumes the presence of paint containing lead on all coated surfaces. Therefore: Contractors who will be disturbing more than 1 square foot of surface area in any interior room or more than 10 square feet on any exterior surface shall be licensed by the State of Ohio as a Lead Abatement Supervisor. Rehabilitation activities that disturb areas greater than the above minimums shall be monitored by the City of Sandusky. Prior to starting work on an approved RR property, the Rehab Specialist must be notified of the work to proceed. All occupants of the property must be properly notified of the City's Presumption of Lead and be given a copy of the HUD booklet, "Protect Your Family from Lead In Your Home" (EPA747K ). Copies of this booklet can be obtained from HUD or City of Sandusky. A Scope of Work will be developed by the City of Sandusky Rehabilitation Specialist. The Scope of Work will include a list of code violations that must be corrected. The scope will also include a separate list of lead related work items. The scope may also include optional repair items. As part of the new lead regulations the City of City of Sandusky is requiring all properties participating in federally funded rehabilitation programs to comply with the window treatment standard. This standard is outlined in the "Technical Specifications and Performance Standard". It includes the installation of jamb liners, well wraps, complete removal of paint from sashes, stops and parting strips on all double hung windows in inhabited areas of the building. NOTE: This work shall be performed by a licensed Lead Abatement Supervisor. All rehabilitation activities shall follow lead safe practices as outlined in the "Technical Specifications and Performance Standard" and all Federal, State and Local lead regulations. The City of Sandusky will provide ongoing monitoring of the job to document compliance with these regulations. Monitoring of the rehabilitation work will include lead wipe testing. The Rehab Specialist will conduct all lead wipe tests; both intermediate and final. The Rehab Specialist will determine the necessity of intermediate testing based on the job site conditions. All rehabilitation jobs will receive final wipe clearance by Rehab Specialist. Contractors are required to maintain a clean and safe work site. Open sanding, scraping and other abrasive removal of paint is prohibited. All work areas shall be properly contained to avoid contamination of inhabited areas and exposure to workers and/or occupants. It is the responsibility of the applicant to comply with these and all other program regulations. Interim and final payment requests will not be processed unless documentation from Community Development shows that these rules are being complied with. A copy of the "Technical Specifications and Performance Standard" can be obtained from your Rehabilitation Specialist at City of Sandusky.

5 CITY OF SANDUSKY DEPARTMENT OF HOUSING & NEIGHBORHOOD DEVELOPMENT Rental Rehabilitation 222 Meigs Street, Sandusky, Ohio For more information, or for assistance in completing this form, call (419) Please complete entire application. Incomplete applications will not be accepted. NAME APPLICANT INFORMATION PHONE NAME CO-APPLlCANT INFORMATION PHONE SOCIAL SECURITY NUMBER DATE OF BIRTH SOCIAL SECURITY NUMBER DATE OF BIRTH HOME ADDRESS CITY, STATE, ZIP HOME ADDRESS CITY, STATE, ZIP Do you: Rent Own Previous City State & Zip ARE YOU: Married Divorced ( ) Widowed ( ) Separated ( ) Single Do you: Rent Own Previous City State & Zip ARE YOU: Married Divorced ( ) Widowed ( ) Separated ( ) Single LIST THE GROSS INCOME FROM EMPLOYER ( )Self Employed How Long Company Name Position City, State & Zip $ Yearly $ Monthly Current Work Phone Previous Employer LIST THE GROSS INCOME FROM EMPLOYER ( )Self Employed How Long Company Name Position City, State & Zip $ Yearly $ Monthly Current Work Phone Previous Employer APPLICANT & CO-APPLICANT List amount of other income received on a monthly basis. Social Security $ Child Support $ SS Disability $ Alimony $ Pension $ Rent from Other Rental Property $ Gross rent from Rehabilitated Property $ Unemployment $ Dividend/Interest $ APPLICANT & CO-APPLICANT List amount of money you currently have in a bank, credit union, or other account that is available for the rehab of this property: Bank Name Total Amount PROPERTY TO BE REHABILITATED (Use a separate application for each property) ADDRESS Zip # of Units Ownership in Name of Original Purchase Price $ Purchased Mortgage Balance $ Monthly Payment (principal & interest only) $ Mortgage Company SECOND MORTGAGE Original Purchase Price $ Purchased Mortgage Balance $ Monthly Payment (principal & interest only) $ Mortgage Company

6 PROPOSED RENT PER UNIT NOTE: All rents must meet HUD s affordability requirements for a minimum of at least 10 years. UNIT #1 Before Rehab Current Rent $ After Rehab Proposed Rent $ Utilities included in Rent: ( )Space Heating ( ) Hot Water ( )Electricity ( )Water ( )Sewer ( )Stove ( )Refrigerator Name of head of household If vacant, how long? (or vacant) UNIT #2 Before Rehab Current Rent $ After Rehab Proposed Rent $ Utilities included in Rent: ( )Space Heating ( ) Hot Water ( )Electricity ( )Water ( )Sewer ( )Stove ( )Refrigerator Name of head of household If vacant, how long? (or vacant) UNIT #3 Before Rehab Current Rent $ After Rehab Proposed Rent $ Utilities included in Rent: ( )Space Heating ( ) Hot Water ( )Electricity ( )Water ( )Sewer ( )Stove ( )Refrigerator Name of head of household If vacant, how long? (or vacant)

7 I certify that the information given on this application is true and complete. I hereby give my permission to the City of Sandusky and any other government agency to which I may be referred to review this application and to request and receive information deemed necessary to verify its accuracy. I understand that the City of Sandusky may be required to make this application a matter of public record under the provision of open records laws. ALL OWNERS OF THE PROPERTY MUST SIGN THIS APPLICATION. I have not evicted any tenant in this project in the 90-day period before the date of this application because I anticipated applying for and receiving a Rental Rehabilitation Loan. I have never lost a property through tax foreclosure to the City of Sandusky. I certify that there will be no displacement of residential tenants from units to be assisted. I certify that all of the units in this project will be affordable, as determined by HUD, for the entire period of affordability. Any work completed before loan approval will not be eligible for the Program. I have read and understand the entire City of Sandusky Rental Rehabilitation Program application package. APPLICANT S SIGNATURE CO-APPLICANT S SIGNATURE DATE DATE INFORMATION FOR GOVERNMENT MONITORING PURPOSES APPLICANT APPLICANT Are you Hispanic? Yes No Are you Hispanic? Yes No ( ) I do not wish to furnish this information ( ) I do not wish to furnish this information ( ) White ( ) Black/African American ( ) White ( ) Black/African American ( ) Black/African American & White ( ) Asian ( ) Black/African American & White ( ) Asian ( ) American Indian/Alaska Native ( ) Asian & White ( ) American Indian/Alaska Native ( ) Asian & White ( ) American Indian/Alaska Native & White ( ) American Indian/Alaska Native & White ( ) American Indian/Alaska Native & Black/African American ( ) American Indian/Alaska Native & Black/African Amer. ( ) Native Hawaiian/Other Pacific Islander ( ) Native Hawaiian/Other Pacific Islander ( ) Other Multi Racial ( ) Other Multi Racial

8 All applicable pages must be filled out, signed and returned with your application. All other pages not requiring information are for you to read and keep. These explain the program. Please submit the following items with your Rental Rehabilitation Application: ( ) MORTGAGE VERIFICATION Provide the lender s name and address, and the account number of all mortgages on the property. If there is no mortgage, state NONE. Mortgage company name Account # ( ) COPY OF YOUR INSURANCE POLICY HOUSE COVERAGE Insurance company Agent Account # ( ) COPY OF YOUR MOST RECENTLY FILED 1040 INCOME TAX RETURN INCLUDING ALL SCHEDULES. ( ) SIGNED TENANT INFORMATION FORMS These MUST BE INCLUDED with your application for each tenant renting from you. Please read this form carefully before you sign it. ( ) TENANT INCOME VERIFICATION For each tenant in your building, you must provide a copy of recent paycheck stub, social security benefit determination letter, pension benefit letter, etc. ( ) PROJECTED RENT Don t forget to fill in the projected rent for each unit, whether occupied or vacant on the application. ( ) TAXES City of Sandusky real estate and income taxes must be current. FY 2005 Fair Market Rent for Erie County FY 2008 Fair Market Rent By Unit Bedrooms One- Two- Three- Efficiency Bedroom Bedrooms Bedrooms Four- Bedrooms $420 $506 $646 $843 $887 MEDIAN INCOME FIGURES CHART 1 person $34,900 5 persons $53,850 2 persons $39,900 6 persons $57,850 3 persons $44,850 7 persons $61,800 4 persons $49,850 8 persons $65,800