R2005-112 AUTHORIZING THE PARTICIPATION IN THE ILLINOIS HOUSING DEVELOPMENT AUTHORITY

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� �. . Assistance and HOME Program Recapture Notice, indicating the Sponsor's approval of the Proposed Project, or (ii) a letter of rejection, indicating the Sponsor's reasons for rejection. If the Sponsor issues the Notices described in clause (i),both Notices must be signed by the Homebuyer and returned to the Sponsor within ten (10) days of such Homebuyer's receipt thereof. (fl Loan Terms. Each Loan shall provide funds for (I) downpayment and closing cost assistance for a Residence, and (II) "project delivery" costs payable to the Sponsor. Each Loan shall (i) be for a term equal to the applicable Recapture Period (as hereinafter defined), (ii) bear no interest, (iii) be repayable to the Sponsor in accordance with the Recapture Agreement (as hereinafter defined), and (iv) not exceed (x) Ten Thousand and no/100 Dollars ($10,000) or (y) if the purchase price of the Residence exceeds One Hundred Sixty-Six Thousand Six Hundred Sixty-Seven and no/100 Dollars ($166,667), si�c percent (6%) of the purchase price, but in no event shall any Loan be in excess of Fourteen Thousand Nine Hundred Ninety-Nine and no/100 Dollars ($14,999) ("Maximum Allocation"). Notwithstanding the foregoing, assistance for closing costs in connection with the acquisition of the Residence shall not to exceed Two Thousand Dollars ($2,000), and "project delivery" costs payable to Sponsor shall not exceed fifteen percent � (15%) of any applicable Loan amount. All closing costs and project delivery costs must be '� Eligible Costs and must be approved in advance by the Authority.. For purposes of this Agreement, the "Recapture Period" shall be five (5) years from the date the Project has been identified as "completed" in HUD's Integrated Disbursement Information System (as the same may be modified or replaced"IDIS"). (g) Homebuver Prosram Agreement. Prior to receiving a Loan, each Homebuyer participating in the Program shall execute (i) a homebuyer program agreement ("Homebuyer Program Agreement") with the Sponsor in the form attached hereto as Exhibit A, (ii) a promissory note ("Note"), and(iii) a Recapture Agreement (as hereinafter defined), each in favor of the Sponsor and each in the form attached to the Homebuyer Program Agreement. The Recapture Agreement shall be recorded in the recorder's office of the county in which the Residence is located. The Sponsor understands that any declaration of default by it under a Homebuyer Program Agreement will constitute a violation of this Agreement, as provided in Paragraph 13 hereof. (h) Recapture Agreement. Each Homebuyer receiving a Loan shall enter into a recapture agreement with the Sponsor("Recapture Agreement"), in the form attached to the Homebuyer Program Agreement, in which the Homebuyer agrees, among other things, to repay to the Sponsor the outstanding balance of the Loan upon the earliest to occur once, within the applicable Recapture Period, of any one or more of the following (each, a "Recapture Event"): (i) a sale, conveyance or other transfer of ownership of the Residence for consideration, excluding any one or more of the following(each, "Permitted Transfer"): any sale, conveyance or transfer (A)to a spouse upon a dissolution of marriage, (B)to the surviving spouse upon the death of a joint tenant Homebuyer, (C)by will or (D)by foreclosure or deed in lieu of foreclosure or otherwise by operation of law; (ii)the Residence is no longer the Homebuyer's principal residence or the Homebuyer converts the Residence to a rental unit; or (iii)the refinancing of the first mortgage, if any, encumbering the Residence during the Loan term, except for a refinancing permitted under 6