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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 14. HOUSING |
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Chapter 14-25. HOME PURCHASE ASSISTANCE PROGRAM |
Section 14-2505. TYPES OF LOANS: PRINCIPAL ONLY, INSECURED, DEFERRED PAYMENT
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2505.1Except as provided for in §§ 2505 through 2506, all financial assistance under the Program shall be Principal-Only Loans repayable, after five (5) years, consistent with § 2504.2 of this Chapter, secured by a lien or subordinated trust on the property purchased or by other security provided for in this chapter or deemed appropriate by the Department.
2505.2[Repealed]
2505.3[Repealed]
2505.4In cases where an applicant is determined to be unable to afford the monthly payments of principal required under a Principal-Only Loan, and where the applicant is a Displaced Household, and would be required to move from the home he or she now occupies if monthly payments of principal were required beginning in the sixth year of the loan, but meets all other requirements of this chapter, the applicant may receive an additional deferral of all payments beyond the initial five-year deferred period, subject to review and approval by the Department for a period not to exceed five (5) years after the date of such additional deferment.
2505.5In determining whether an applicant can afford the monthly payments of principal under a Principal-Only Loan, the Department shall use the criteria in § 2501.4 and § 2501.5.
2505.6[Repealed]
2505.7All Loans under HPAP shall be secured by a recorded lien or subordinated trust on the property purchased unless this requirement is explicitly waived as provided for in § 2500.5 of this chapter.
2505.8The loans may also be secured by financing statements or liens on the stock or other assets of a loan recipient, by an assignment of leases or rents, or by other means consistent with District of Columbia law.
2505.9The Department may, by determination of the Program Administrator, provide additional HPAP assistance in the form of a grant or an unsecured deferred payment loan in amounts needed to cover all or a portion of closing costs, if required to meet the loan-to-value ratio requirements of the first mortgage, to the extent such costs exceed the requirements of § 2501.9 of this chapter.