HOME Loan Maturity
The following is addressing the loan maturity of projects allocated funds under AHFA's HOME Program. Borrowers should notify AHFA at least twelve (12) months prior to the maturity date of the HOME loan to indicate borrower's a) intent to repay the loan in full, or b) intent to restructure the loan. If the borrower is unable to provide payment in full, the borrower will be required to apply for an extension of the HOME Loan by completing the AHFA application for extension. The borrower should submit an application for extension at least six (6) months prior to the maturity date of the HOME Loan. The borrower will be required to review the AHFA HOME Loan Restructuring Policy for additional instructions and complete the AHFA application for an extension (links provided below).
A) Intent to repay the loan in full
- Borrowers may pay the HOME loan in full (principal and all accrued interest) prior to or at maturity. If the HOME loan is paid off prior to maturity, the applicable HOME rent and income restrictions will remain until the end of the required affordability period.
- Borrower may request. in accordance with AHFA's Qualified Contract Policies and Procedures, to remove the Housing Credit extended-use restrictions and convert the project to market rate.
B) Intent to restructure the loan
- Borrowers paying thirty percent (30%) or more of the HOME loan (principal and all accrued interest) will be allowed to extend the remaining balance for fifteen (15) years.
- Borrowers that do not elect to make a payment of thirty percent (30%) or more of the HOME loan (principal and all accrued interest) at maturity and will be required to request an extension of the loan for a maximum of five (5) years.
Borrowers that do not pay the HOME loan in full (principal and all accrued Interest) or do not apply for an extension will be considered delinquent, and AHFA will pursue foreclosure on the property. The borrower will be permanently barred from participating in all programs administered by AHFA. If AHFA is forced to foreclose on the property, AHFA will make every effort to not displace the current tenants.