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Acquisition/Rehab/Resale-120 Percent of Area Median <br />The second of the City's two programs is identical to the first with the three following <br />exceptions: <br />Eligibility is restricted to households with incomes at or below 120 percent of the area <br />median. Effective June 26, 2010, the applicable income limits were as follows: <br />Household Size Income Level Household Size Income Level <br />One $78,050 Five $120,400 <br />Two $89,200 Six $129,300 <br />Three $100,350 Seven $138,250 <br />Four $111,500 Eight, $147,1 <br />50 <br />• For homebuyers participating in this program the City's required debt ratio is 35/40. <br />The downpayment requirement is the same. Should experience suggest that the ratio is <br />not working, the City may re-evaluate and adjust it. <br />• The City has allocated the sum of $951,674 for this prpgram, and has established a <br />performance measure of at.least six units acquired; rehabilitated and sold to income <br />eligible households. R ' { <br />The City has chosen to allocate the remaining $146410 of its NSP3 funds to administration and <br />planning. <br />T° } <br />CITY RESPONSIBILITIES.,, <br />The City will be responsible,fdr the follgwiq <br />• Supply the intermediary with. an approved list of appraisers to be used for all NSP <br />activities. <br />• Process payments on a'reimbursempnt basis in a timely manner consistent with typical <br />City practices. <br />• Inspect all properties proposed by the intermediary for purchase prior to acquisition, <br />through the rehabilitation process, and when ready for sale. <br />• Approve properties for purchase in a timely manner. <br />• Prior to purchase, review and approve all work write-ups for costs and scope. <br />• Assist intermediaries with any contact information for local lending institutions. <br />• As necessary, use NSP3 funds to provide funds necessary to purchase the homes. <br />• Provide City loan documents to be recorded on properties. <br />• Hold monthly meetings with the intermediary, or as often as needed. <br />• Receive and review Lenders Packet which includes the following: Credit report, City of <br />Santa Ana loan application, homebuyer class completion certificate, bank statements (3 <br />months), pay stubs (3 months), tax returns (3 years), verification of other income <br />sources, Estimated Closing Statement, purchase contract. <br />Page 5 <br />20A-42