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Exhibit B — Homeownership Affordable Covenant Summary <br />All Permanently Affordable ownership homes are sold subject to a covenant that ensure the <br />home remains perpetually affordable into the future. The buyer must accept all terms of the <br />covenant to be eligible to purchase the home. <br />Covenant Key Points <br />■ The maximum income and assets of a new buyer will be established in advance of sale or re- <br />sale, and the home may not be sold to a buyer that exceeds the maximum income and asset <br />limit. <br />■ The home has a Maximum Resale Price Limit that includes limited appreciation and allows <br />for specific capital improvements. <br />■ Buyers are required to maintain their affordable home in a manner that protects the health, <br />safety, and livability for future homeowners. <br />■ Eligible capital improvements for which a homeowner can receive credit are limited in <br />amount and type and must be pre -approved by the program to receive credit. <br />■ The ability to refinance is limited to 90-93% of the Maximum Resale Price Limit. The <br />program must be contacted prior to arranging refinancing with a lender to ensure this limit is <br />not exceeded. <br />■ The home must be occupied by the owner as the owner's principal place of residence unless <br />the program has approved a rental arrangement. <br />■ The home cannot be rented in its entirety during the first five years of ownership. <br />■ After five years of ownership, the home may be rented for one year out of every seven. The <br />program needs to be contacted prior to renting for approval. <br />■ A long-term rental of only one room in the home may be permitted after the first year of <br />ownership. Licensing regulations for each jurisdiction must be followed. <br />There are instances where the Program will require an Interim Covenant in exchange for funding <br />or to meet a regulatory requirement. Interim covenants ensure affordability through a project <br />design and development phase when the exact details of the project are unknown. Once a <br />certificate of occupancy is issued for a home by a local jurisdiction, the interim covenant is <br />replaced with a permanent covenant specific to that home. <br />15 <br />