Sale price cap: The property must sell for no more than the sale price cap (or appraised value if an owner/builder) established annually by PHB -- $350,000 for 2017. Escrow must notify PHB if a property is selling over the established price cap. If the exemption is already in effect, it will be terminated and escrow must request the amount of any taxes exempted due from Multnomah County to be paid at closing by the seller.
Arm’s Length Transaction: Sales must be an arm’s length transaction. An arm’s length transaction is one in which the buyer and seller act independently and have no relationship (by blood, marriage or unrelated business dealings) to each other. An arm’s length transaction will be fair and equitable to all parties and will result in a fair market price.
Occupancy: The property may not be rented at any time (both prior to initial sale and after homebuyer qualification); properties which are rented are subject to termination of the exemption. Homebuyers must occupy the property as their primary residence.
Affordability: Homebuyers at initial sale (who will be both on title to the property and occupying the home) must earn no more than 100% median family income for a family of four -- currently $74,700, adjusted upward for households larger than four persons.
Processing Fee: Qualified initial homebuyers must pay a processing fee (currently $750) to PHB which is due within 30 days of closing. If the property is out of compliance at the time it sells, the fee must be paid at closing by the seller.