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4. Extended Terms: Extended loan terms may be <br />considered for loans where the applicant <br />demonstrates that there is or will be a financial <br />hardship in repayment of the loan. The applicant <br />must provide documentation to justify that their <br />household income is not sufficient to provide for <br />an adequate standard of living with the standard <br />or existing loan repayment terms established by <br />the OHCD. Any extended terms shall be approved at <br />the sole discretion of the Housing Administrator. <br />Extended terms may be provided as either or both <br />of the following methods: <br /> a. Longer repayment period, provided that the <br />amortized period for the repayment of the <br />loan shall not exceed 240 months, and/or <br /> b. For existing loans only, defer the monthly <br />payment requirement for a period of three <br />months to five years, as determined by the <br />OHCD, through a forbearance procedure, where <br />the requirement to make monthly payments is <br />temporarily suspended until the end of the <br />deferral period when monthly payments are <br />again required. Interest shall continue to <br />accrue during any payment deferral period. <br /> c. Preferred Terms: THIRTY PERCENT (30%) of the principal <br />balance of the loan, may be forgiven as a grant to an <br />Applicant if he/she or any member of the household is a <br />member of any one of the following groups: <br />1. Elderly person 62 years of age or older. <br />2. Disabled person as defined by 24 CFR 5.403 when <br />the condition is verified by appropriate <br />diagnostician such as physician, psychiatrist, <br />psychologist, therapist, rehabilitation <br />specialist, or licensed social worker, using the <br />HUD language as the verification format. <br /> d. The terms of the THIRTY PERCENT (30%) Grant and the <br />remaining SEVENTY PERCENT (70%) of the principal <br />balance of the LOAN provided under Subsection c. <br />Preferred Terms, above, shall be consistent with <br />Section 3.0 LOAN SPECIFICATIONS, of these rules. <br />e. The applicant must also remain the owner-occupant of <br />the dwelling unit for one year after the closing of the <br />Loan. The closing of the loan is the first date the <br />7019RBLA -6- RRP RULES/07-07-2016 <br /> <br />