1. A mortgagor shall repay the authority the lesser of the amount of interest reduction payment actually paid by the authority on behalf of the mortgagor or fifty percent of the net appreciation of the property. The term "net appreciation of the property" as used in this section means an increase in the value of the property over the purchase price less the reasonable costs of sale and the reasonable costs of improvements made to the property.
2. Repayment shall be made when any of the following occur:
a. The mortgagor sells or otherwise transfers the property. However, repayment is not required if the transfer is to the surviving spouse of the mortgagor upon the mortgagor's death.
b. The mortgagor rents the property for more than twelve months.
c. The mortgagor requests the authority to release the lien on the property.
d. The mortgage lender files a court action to foreclose on the mortgage. However, the authority may abate payment pending the outcome of the foreclosure action.
83 Acts, ch 124, § 12
CS83, § 220.83
C93, § 16.83
Referred to in § 16.1
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