RECAPTURE AGREEMENT

The ECHR Program utilizes two different types of funding to provide the Energy Conservation and Repair measures on a home. The first type of funding has no restrictions. The second piece of funding places restrictions on the program and homeowner. All work performed with the first type of funding is not included in the RECAPTURE AGREEMENT. Only the work performed with the second piece of funding is included in the RECAPTURE AGREEMENT. The Recapture Agreement is also considered a forgivable loan. The Recapture Agreement must be signed before any work will proceed and places the following restrictions on the home and homeowner.

Ø The principal resident of the home must be the owner.

Ø The “Recapture” period is five (5) years.

Ø If a title transfer occurs during the Recapture period a prorated amount shall be paid to the program.

Ø At the end of the Recapture period the “loan” is forgiven.

During the Recapture period there are no payments, no interest, and at the end of the period the Agreement is forgiven. The Agreement is also forgiven should a death occur during the Recapture period. Should a title transfer occur the prorated amount paid to the program is calculated based upon the number of months lived in the home after the Recapture Agreement date, the amount invested in the home, and must be paid before a Release will be issued.