Common use of Amount to be Recaptured Clause in Contracts

Amount to be Recaptured. In the event that the Property Owner sells the Property during the term of the recapture provisions, the full amount of the (enter name of entity) HOME investment will be due and payable to the extent that net proceeds are available to repay the Property Owner’s loan. If the net proceeds are not sufficient to recapture the full HOME investment, (enter name of entity) will accept the available net proceeds as full payment. The Property Owner’s down payment, principal payments, and any capital improvement investment made in the property after the HOME assistance has been provided will be returned to the Property Owner at closing after (enter name of entity) HOME assistance has been recaptured from the net proceeds as described above. The Property Owner also will retain the value of the appreciation in the property after (enter name of entity) HOME assistance has been recaptured. An agreement detailing the recapture provisions will be secured through a trust indenture recorded against the property at the time of assistance. These recapture provisions may terminate upon occurrence of the following: 1) Foreclosure, transfer in lieu of foreclosure, or assignment of an FHA insured mortgage to HUD. (enter name of entity) may use purchase options, rights of first refusal or other preemptive rights to purchase the housing before foreclosure to preserve affordability. The recapture provisions will be revived according to the original terms if during the original affordability period, the owner of record before the termination event, or any entity that includes the former owner or those with whom the former owner has or had family or business ties, obtains an ownership interest in the project or property.