Snohomish County Human Services 7/25/2017 Amendment 1

D. Qualification as Affordable Housing 1. Beneficiary Requirements The housing assisted with HOME funds under this Agreement: a. must be owned by a homeowner whose family qualifies as a "low- income family" as defined in 24 CFR § 92.2 (a family whose annual income does not exceed 80% of the area median income, adjusted for family size, as determined by HUD), either at the time of loan execution or as provided in 24 CFR § 92.203(d)(2); and b. must be occupied by the family as its principal residence. 2. Income Determinations The Agency will utilize the 24 CFR 5.609 (Section 8) definition for annual income to make income eligibility determinations for the HOME rehabilitation loans. 3. Eligible Property Types a. Homes rehabilitated with HOME funds under this Agreement must be single family housing (1- to 4-unit dwelling, condominium unit, or equivalent form of ownership approved by HUD, all as defined as "homeownership" under 24 CFR § 92.2). b. As required by 24 CFR § 92.254(c) and 24 CFR § 92.2, homeownership interest in housing units assisted with HOME funds under this Agreement must be evidenced by one of the following: i. Fee simple title; ii. Ninety-nine (99) year leasehold interest (at least 50 year lease on Indian trust or restricted Indian lands or a Community Land Trust); iii. Manufactured housing with lease for a period at least equal to the applicable period of affordability in 24 CFR § 92.254; iv. Inherited property with multiple owners for which title has been passed to several individuals by inheritance, but not all heirs reside in the housing, sharing ownership with other nonresident heirs, and the applicant owner-occupant qualifies as Low-Income, occupies the housing as his or her principal residence, and pays all the costs associated with ownership and maintenance of the housing (.e.g. mortgage, taxes, insurance, utilities; Exhibit A-1 HCS-16-42-1601-198(1) City of Everett Page 12 of 24