Sale of Affordable Homes

(a)Notwithstanding any law, rule or regulation to the contrary, the Authority shall sell the properties developed pursuant to § 5412 of this Article for less than fair market value to families or heads of households who are lawful permanent residents or citizens of the United States and who are bona fide residents of Guam.

(b)Such sales shall be in accordance with and limited to the following preferences:

(1)first preference shall be given to tenants of low-rent housing programs operated by the Guam Housing Corporation or the Authority and adult children of grantees of lots in the As-Tumbo Subdivision who are without fee title to any real property of their own in or out of Guam and who qualify as low or moderate income; and

(2)second preference shall be given to any resident of Guam without fee title to any real property in or out of Guam and who qualifies as low or moderate income.

(c)In carrying out the provisions of this Section, the Authority shall require a sworn statement from each applicant as to such applicant’s ownership of land on Guam or elsewhere. In case the applicant is a lessee of a Chamorro Land Trust residential lot, the applicant shall, immediately upon the purchase of a property or an affordable home in the As-Tumbo Subdivision, cancel or surrender the applicant’s lease of the residential lot with the Chamorro Land Trust Commission.

(d)The prospective purchaser shall secure approved loan or financing for the construction or purchase of a residence, or a conditional letter of intent or the equivalent. COL4122017 CH. 5 GUAM HOUSING AND URBAN RENEWAL AUTHORITY

(e)Each deed shall be subject to a right of reverter to the Authority if:

(1)such statement on non-ownership was false; or

(2)the grantee(s) sells or leases to a third party any of the property after the date of execution of the deed contrary to the provisions of this Article.

(f)The Authority shall, by resolution, establish an application period or periods of reasonable length. During the application period, the Authority shall accept applications to purchase homes within the Subdivision. After the close of the application period, the Authority shall review all applications, and for applicant families or heads of households who are found eligible, assign preferences to each application. Within each preference, a priority number shall be assigned. Said priority number shall be established by lot. The Authority shall dispose of the homes by selling them first to first preference families or heads of households in the order of their respective priority numbers. When all families or heads of households submitting first preference applications have been offered homes, the remaining homes shall then be offered in the same manner to second preference applicant families or heads of households. The priority number system shall be used to determine which purchaser shall be entitled to which home and shall also govern in the case that there are more purchasers in a preference category than homes available.

(g)The sale of homes shall begin as soon as practicable after the close of the application period. After determination of eligibility, each applicant shall, prior to the expiration of a time set by the Authority, make arrangement to purchase his or her home.

(h)As used in §§ 5413-5415:

(1)‘First-time homeowner’ means any family or head of a household who has not had any ownership interest in a home within the five

(5)years preceding the date of application, or had an ownership interest in a home within the five

(5)year preceding the date of application, but such interest was terminated by a decree of divorce or operation of law;

(2)‘Low or moderate income’ means a family whose income does not exceed eighty percent (80%) of the median income for Guam, as defined in the U.S. Department of Housing Urban COL4122017 CH. 5 GUAM HOUSING AND URBAN RENEWAL AUTHORITY Development’s housing assistance programs administered by the Authority; and

(3)‘Resident of Guam’ means a United States citizen or permanent resident alien who has resided on Guam for a period of not less than five

(5)years immediately preceding the date of application. An individual who has not been a five

(5)year resident for the period immediately preceding the date of application shall be deemed a resident of Guam if the applicant’s residency change was due to active service in the United States Armed Forces, or for attendance on a full-time basis at an institution of higher education; provided, that the applicant was a five

(5)year resident for the period immediately preceding the start of such active duty or education.