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<br />4.5 Loan Repayment <br /> <br />Eligibility for receiving a rehabilitation loan is based on the non-sale or transfer of the property for <br />a period of five (5) years following construction completion. <br /> <br />The City will file a lien, (first or subordinated), against the subject property which states should <br />the property be sold prior to the end of the fifth year, the owner will be required to repay the <br />principal amount of the loan in the following way: <br /> <br />a. If sold within the first year, the total amount is due. <br /> <br />b. If sold during the second year, 80% is due. <br /> <br />c. If sold during the third year, 60% is due. <br /> <br />d. If sold during the fourth year, 40% is due. <br /> <br />e. If sold during the fifth year, 20% is due. <br /> <br />f After the fifth anniversary of completion of construction, the loan is forgiven and the lien <br />is considered null and void by the City. <br /> <br />g. If funds have been expended and loan is canceled prior to completion, owner must <br />reimburse City for expenditures. City will return funds to TCDP Program. <br /> <br />-10- <br />