Request for Forgiveness - Sale to Another Low-or-Moderate Income Household

In the event of a sale, transfer, or assignment of a title or deed of the assisted unit during the term of the lien, the borrower may be required to repay the unforgiven portion of the lien from any net proceeds, unless the unit is sold or transferred to another low-or-moderate income household. Subsequent purchaser income may be determined by proxy or by actual income.  

By proxy -  It assumed that the property has been sold to a subsequent household whose income is at or below 80% area median income if the sales price of the property is less than or equal to the HUD Home Value Limit  (value limit).  To determine whether the sale, transfer or assignment qualifies for forgiveness due to proxy, complete the Repayment Calculator  or the “Request for Forgiveness – Sale to Another Low-or Moderate Income Household” form below.  

By income - Value limits proxy may not be used if the Bank or its designee has documentation demonstrating the subsequent purchaser’s actual income.  

If actual income is available, use the linked form, “Request for Forgiveness  – Sale to Another Low-or Moderate Income Household By Income,” to determine if repayment is required. Instructions for release of lien in the event of forgiveness at sale are included in the form. If there is no forgiveness, use the “Repayment Calculation Form” to calculate and remit repayment to the Bank.

Please allow up to five business days for an initial response to a forgiveness or repayment request.

Request for Forgiveness of Repayment