Date Published: October 2012
Grantees can choose to structure payments from homebuyers' soft second mortgages in any way they deem reasonable. These mortgage payments may return to the grantee, or to a subrecipient or developer, whoever holds the NSP mortgage. Payments back to the grantee or a subrecipient are program income. Payments back to a developer are not program income but the grantee must ensure that the total amount of NSP funds that it allows the developer to retain (including fees, sales proceeds and mortgage payments) are reasonable and do not constitute undue enrichment.