DEFFERED LOANS:
The Small Cities grant funds will be loaned as a 0% interest deferred loan.  A Repayment Agreement with the community that has the grant will be signed and filed with the County Recorder’s Office.

• This deferred loan requires no monthly payments and no interest will accrue. 
• It will put a lien on the property for 7-10 years, depending on the grant. 
• The deferred loan will be forgiven 1/7th – 1/10th per year for the time of the grant and lien. 
• It will revert into a grant if the property does not change ownership within the time specified in the grant and lien. 
• If you should sell, transfer title or cease to occupy the property before the 7-10 years are up, you will need to pay back the remaining percentage of unforgiven lien. 
• If there is a life estate ownership on the property, there is no descending forgiveness on the grant.

 Back