§ 950.525 - Purchase price and methods of purchase.

(a) Purchase price. The purchase price for the initial and subsequent homebuyer shall be determined by the IHA.

(b) Purchase price schedule. On the date when the homebuyer agreement is signed, the IHA shall provide the homebuyer with a Purchase Price Schedule, showing the monthly declining purchase price over the term of the HOOA agreement (a period not less than 15 years or more than 25 as determined by the IHA, at an interest rate determined by the IHA). The IHA may choose to forego charging interest and calculate the payment with an interest rate of zero.

(c) Methods of purchase. (1) The homebuyer may achieve ownership when the amount in the EHPA, plus such portion of the NRMR as the homebuyer wishes to use for the purchase, is equal to the unamortized balance purchase price as shown at that time on the homebuyer's purchase price schedule plus all incidental costs (the costs incidental to acquiring ownership, including but not limited to the costs for a credit report, field survey, title examination, title insurance, inspections, the fees for attorneys other than the IHA's attorney, mortgage application, closing and recording, and the transfer taxes and loan discount payment, if any). If for any reason title to the home is not conveyed to the homebuyer during the month in which the combined total in the EHPA and designated portion of the NRMR equals the purchase price, the balance of the purchase price shall be fixed as the amount specified for that month, and the homebuyer shall be refunded:

(i) The net additions, if any, credited to the EHPA after that month; and

(ii) Such part of the monthly payments made by the homebuyer after the balance of the purchase price has been fixed that exceeds the break-even amount attributable to the unit.

(2) Where the sum of the unamortized balance of the purchase price and incidental costs is greater than the amounts in the homebuyer's EHPA and NRMR, the homebuyer may achieve ownership by obtaining financing for or otherwise paying the excess amount. The unamortized balance of the purchase price shall be the amount shown on the homebuyer's purchase price schedule for the month in which the settlement date for the purchase occurred.

(3) Period required to achieve ownership. The maximum period for achieving ownership shall be 30 years, but depending upon increases in the homebuyer's income and the amount of credit the homebuyer can accumulate in the EHPA and NRMR, the period may be shortened accordingly.

(4) Residual receipts. After payment in full of the IHA's debt, if there are any subsequent homebuyers who have not acquired ownership of their homes, the IHA shall retain all residual receipts from the operation of the development in a replacement reserve.

(5) IHA financing. The IHA may, at its discretion, provide financing for purchases by homebuyers, or assist with financing, by such methods and on such terms and conditions as may agreeable to the IHA and the homebuyer

(6) Transfer of title to homebuyer. When the homebuyer is to obtain ownership, the parties shall mutually agree upon a closing date. On the closing date, the homebuyer shall pay the required amount of money to the IHA and receive a deed for the home.