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More than $40,000 <br />15 Years <br />New construction of rental housing <br />20 years <br />Refinancing of rental housing <br />15 years <br />Throughout the affordability period, income -eligible households must occupy the HOME - <br />assisted housing. When units become vacant during the affordability period, subsequent tenants <br />must be income eligible and must be charged the applicable HOME rent. <br />Other Requirements <br />Minimum Loan: All HOME investments must total not less than $1,000 multiplied by the <br />number of HOME -assisted units in the project. <br />Maximum Loan: The maximum amount of subsidy per unit shall not exceed the maximum <br />allowed by HUD under the HOME program (24 CFR 92.250), or that provided for under Section <br />IV, Loan Terms, of these Policies and Procedures, whichever is less. The City will avoid <br />unnecessary layering of subsidies from different federal, state and local programs and seek to <br />maximize the benefit to target households from the investment of HOME funds in a project. The <br />Housing Division will use HUD's Cost Allocation Tool to identify the maximum subsidy per <br />unit for each project. <br />Property Standards: Housing that is assisted with HOME funds must meet, at a minimum, the <br />City's Property Standards, including all applicable local, State and Federal codes and <br />regulations. Newly constructed housing must also meet the current edition of the Model Energy <br />Code published by the Council of American Building Officials. Substantially rehabilitated <br />housing must meet the cost-effective energy conservation and effectiveness standards in 24 CFR <br />39. <br />Labor Standards/Construction Contracts: Any contract for construction (whether it is for <br />rehabilitation or for new construction) of affordable housing with 12 or more units assisted with <br />HOME funds must contain a provision requiring that not less than the prevailing wages paid in <br />the locality, as determined by the Secretary of Labor pursuant to the Davis -Bacon Act, will be <br />paid to all laborers and mechanics employed in the development of the project. Contractors and <br />subcontractors must comply with regulations issued under this Act and pertaining to labor <br />standards and HUD Handbook 1344.1. These provisions apply whether HOME funds are used <br />for construction or non -construction costs. <br />Lead -based Paint: Housing assisted with HOME funds constitutes HUD -associated housing for <br />the purpose of the Lead -Based Paint Poisoning Prevention Act and the Lead Safe Housing Rule, <br />and is therefore subject to 24 CFR Part 35. Unless otherwise provided, borrowers are <br />responsible for testing and abatement. <br />Affordable Housing Funds Policies and Procedures Page 31 <br />75B-96 <br />