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24 C.F.R. Appendix IV to Subpart B of Part 904—Promissory Note for Payment upon Resale by Homebuyer at Profit

Title 24 - Housing and Urban Development

Title 24: Housing and Urban Development
PART 904—LOW RENT HOUSING HOMEOWNERSHIP OPPORTUNITIES
Subpart B—Turnkey III Program Description

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Appendix IV to Subpart B of Part 904—Promissory Note for Payment upon Resale by Homebuyer at Profit

(Subpart B)

FOR VALUE RECEIVED, (Homeowner) promises to pay to ____________________

(Authority) or order, the principal sum of __________¹ Dollars ($____), without interest, on the date of resale by the Homeowner of the property conveyed by the Authority to the Homeowner.

¹ Amount determined in accordance with section 19 of the Homebuyers Ownership Opportunity Agreement.

Such principal sum shall be reduced automatically by 20 percent of the initial amount at the end of each year of such residency, as a Homeowner, and this note shall terminate at the end of five years of such residency, as determined by the Authority; Provided, however, that the amount payable under this note shall in no event be more than the net profit on the resale, that is, the amount by which the resale price exceeds the sum of (1) the Homeowner's purchase price, (2) the costs incidental to his acquisition of ownership, (3) the costs of the resale, including commissions and mortgage prepayment penalties, if any, and (4) the increase in value of the Home, determined by appraisal, due to improvements paid for by the Homeowner whether as a Homebuyer (with funds from sources other than his Earned Home Payments Account or his Nonroutine Maintenance Reserve) or as a Homeowner.

If the Homeowner shall pay this note at the time and in the manner set forth above, or if, by its provisions, the amount of this note shall be zero, then the note shall terminate and the Authority shall, within thirty (30) days after written demand therefor by the Homeowner, execute a release and satisfaction of this note. The Homeowner hereby waives the benefits of all statutes or laws which require the earlier execution or delivery of such release and satisfaction by the Authority.

Presentment, protest, and notice are hereby waived.

Dated ____________, 19__

Local Housing Authority____________________

By: __________(Homeowner)

__________ (Homeowner's Spouse)

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