D.C. Mun. Regs. tit. 14, r. 14-3005
The Department shall provide either amortized or deferred payment loans to eligible senior citizen homeowner applicants.
The maximum loan principal for an amortized or deferred loan shall be five thousand dollars ($5,000) per property.
The maximum loan term for an amortized loan shall be twenty (20) years.
An amortized loan shall be repaid with interest at an annual rate not to exceed three percent (3%).
An amortized loan shall be repaid on a monthly schedule until paid in full.
The outstanding principal balance of an amortized loan shall be paid in full upon sale or transfer of the property.
The Director may waive any of the requirements of this section, if the Director determines the repayment schedule creates an economic hardship on the homeowner receiving the loan.
An amortized loan repayment shall be considered an economic hardship if the applicant's average monthly housing expenses for principal, interest, taxes, insurance and the cost of the amortized loan exceeds twenty-eight percent (28%) of the applicant's gross monthly income.
If the applicant's monthly housing expenses exceed the standard established in § 3005.8, the applicant shall be eligible to receive a deferred payment loan.
The deferred payment loan shall be due and payable if the borrower moves from the property.
The deferred payment loan shall be repaid to the Department upon sale of the property to another owner.
In the case of transfer of ownership, a repayment schedule may be renegotiated with the new owner based upon the ability of the new owner to meet the criteria established in § 3005.8.
Amortized and deferred payment loans may be subordinated to existing debt secured by the property.
All DHCD loans shall be secured by a recorded lien on the rehabilitated property.
All loan funds shall be used for correction of housing deficiencies identified by DHCD.
D.C. Mun. Regs. tit. 14, r. 14-3005