Iowa Code r. 265-29.5 - Loan terms
Loans made under the program shall, at a minimum, contain the following terms:
(1)
Five-year
term. The duration of the loan will be for a term of five
years.
(2)
Amount.
The maximum amount of a loan made under this program shall be
$50,000.
(3)
Interest. Loans made pursuant to the program shall bear no
interest.
(4)
Forgivability. Loans made pursuant to the program will be
forgiven and the principal amount of the loan reduced by one-sixtieth of the
initial loan amount for each full month of the retention period in which the
homeowner is not in default pursuant to the loan agreement, beginning on the
date of the final disbursement of forgivable loan proceeds.
(5)
Repayment due upon sale of
home. If a homeowner who has been awarded a forgivable loan sells a
disaster-affected home or replacement housing for which the homeowner received
the forgivable loan prior to the end of the loan term, the remaining principal
on the forgivable loan shall be due and payable upon the sale of the
home.
(6)
Retention
agreement. Each loan made pursuant to this program shall be secured by
a retention agreement that shall constitute a lien on the title of the real
property for which the forgivable loan is made until such time as the
forgivable loan has either been fully forgiven or paid in full. However, if an
eligible homeowner receives a buyout of the disaster-affected home from the
hazard mitigation grant program established in Iowa Code chapter 29C or any
other funding source, the receipt of the buyout will not trigger a repayment of
assistance received under subrule 29.4(1).
(7)
General conditions of
assistance.
a. If an eligible
homeowner receives other disaster compensation after a forgivable loan is
awarded, the authority may require repayment of some or all of the forgivable
loan based on the amount of disaster compensation received and review for any
duplication of benefits.
b. Any
home to be purchased, repaired or rehabilitated using assistance under the
program must be in compliance with all applicable state and local laws, rules
and ordinances. To be eligible for assistance, the home must be in compliance
as of the time of closing in the case of purchases, and as of the date of the
final disbursement of forgivable loan proceeds in the case of repair or
rehabilitation.
Notes
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