The CHAP program provides eligible individuals or families with an interest-free loan to help make the down payment to buy a house on GCI or Islesford. In exchange for the interest-free loan, the buyer agrees to abide by CIRT’s Covenants. These Covenants ensure that the house will never become a “summer home”, will always be lived in by year-rounders, and upon resale will always remain reasonably affordable for working families or individuals in the future.
The Covenants include both sections that govern what you can or cannot do as the owner, and what the requirements are if you sell the house, or if ownership is transferred, such as in the case of divorce or inheritance.
It is very important that applicants understand the Covenants, as they are agreeing to abide by them. The Covenants are recorded with the deed of the house and remain with the property forever. You and every future owner of the house are bound by these Covenants.
To review the complete CIRT Covenants, click COVENANTS.
The following is only a descriptive summary of the Covenants and does not represent the entire terms of the Covenants document. Seek the advice of your attorney if you would like a legal interpretation of the Covenants.
Covenants on Ownership of the House:
- Year-Round Residency: Owners must live in the house year-round – meaning at least 11 months a year. The house must be the permanent residence of the owner.
- Rental of the House: The owner may not rent or lease, part or all of the home, without the prior written consent of the CIRT board.
- Restrictive Covenants: The homeowner agrees not to refinance the property without CIRT’s approval. The property may not be divided without CIRT’s prior approval. The owner shall maintain and make any improvements to the home in compliance with any governmental authority that has jurisdiction over matters concerning the construction,
condition, and use of the home.
Covenants on Sale or Transfer of Ownership of the House
A summary of the Covenants regarding sale or transfer of ownership are in the section titled: Can I Resell My House?