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OCCUPANCY REQUIREMENTS:
For so long as the borrower(s) owns the affordable unit, the borrower(s) must continuously occupy the Property
as their sole place of residence, and they can own only the affordable property and no other property. After
purchase of the affordable unit, if the borrower decides to buy, or owns another residential dwelling (regardless
of the purpose or use), the borrower must contact SDHC immediately to initiate sale of the affordable property.
The borrower is not permitted to own ANY other residential dwelling anywhere while owning the affordable
unit. The borrower(s) shall also not rent or lease all or any part of the restricted unit at any time. Borrower(s)
must comply with annual occupancy certifications.
Any violation of the above constitutes a default of the terms and restrictions of the affordable unit, and SDHC
has the right to initiate default proceedings, including without limitation, foreclosure.
AFFORDABLE RESALE RESTRICTIONS:
On the date of the first sale of each Affordable For-Sale Housing Program unit, SDHC records resale restrictions
on each property. Depending on the development in which the unit is located, the resale restrictions include
income restrictions, sales price restrictions, occupancy restrictions, and length of restriction (restrictions remain
in effect for 45 or 55 years). The resale restrictions include the following documents:
• Affordable Housing Resale Restrictions, Option to Designate Eligible Purchasers and Option to Purchase
Upon Default
• Affordable Deed of Trust
• Affordable Promissory Note
PROPERTY CONDITION:
Upon opening escrow, the eligible buyer will be required to have a full home inspection, and a Housing Quality
Standards (HQS), done on the Affordable For-Sale Housing Program unit. The inspections must be completed by
a qualified inspector approved by SDHC. All approved inspectors on the list provided by SDHC are qualified to do
the full property inspection and HQS inspection.
Any work that needs to be completed is the seller’s responsibility and is non-negotiable. The property is to be
left in a “move-in” ready condition. All required repairs are to be made prior to the close of escrow.
Once the inspection is completed, a copy of the report will be sent from the buyer, or their agent, to SDHC.
SDHC will review the report, and the seller, buyer and their agents will be notified of any repairs that need to be
completed by the seller prior to escrow. Due to the nature of some required repairs, SDHC may require some
items to be completed by a licensed contractor.
REAL ESTATE AGENT REPRESENTATION:
The seller and buyer must be represented by a real estate agent. The sales contract, disclosures and division of
real estate costs, i.e., agent’s commission, title and escrow, etc., is negotiated between the seller and buyer, and
SDHC is not involved. SDHC may recommend real estate agents who have contracted with SDHC to represent
either the seller or buyer for a reduced, flat commission. In addition, for sale by owner and dual representation
are not allowed in any Affordable For-Sale Housing Program transaction, except in the case of the initial sale
from developer to the first purchaser.