PROPOSED FINANCIAL INCENTIVE PROGRAM

Accomplished by offering advantageous financing terms on mortgages through Banks’ Community Reinvestment Act (CRA) commitments and other affordable housing initiatives.

• Allow income from the projected rents to be included in qualifying income for the homeowner (applicant)

• No lease-up risk as rents are below market

• Set appraised values as the primary house plus an income producing property (ADU) and before construction to include the completed ADU in the property’s value (L/V) and market rental rates for the value.

• Declining prepayment penalty

• Offer discounted interest rate on the mortgage

• Increase cash flow to home owners between $6,000 to $11,000

• In Exchange – Restrict Rents to HUD “Affordable” Rates