Item O1
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: November 19, 2008 Division: Monroe County Housing Authority
Bulk Item: Yes X No - Department: Monroe County SHIP Program
AGENDA ITEM WORDING: A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
MONROE COUNTY, FLORIDA APPROVING A REVISION TO THE LOCAL HOUSING ASSISTANCE
PLAN, HOMEBUYER ASSISTANCE STRATEGY; AND PROVIDING FOR AN EFFECTIVE DATE.
PREVIOUS RELEVANT BOCC ACTION: Approval by Resolution 412-2007 of the amendment to
the MC LHAP Homebuyer Strategy for fiscal years 2007-2008, 2008-2009 and 2009-2010.
ITEM BACKGROUND: The State Housing Initiatives Partnership (SHIP) Program for Monroe
County, Florida currently provides financial assistance to the residents of Monroe County with 85% of
available funding reserved for affordable housing permit properties. The substantial decrease in pricing
and availability of market rate housing units is providing a viable alternative to prospective program
participants therefore we are recommending eliminating the 85% set aside.
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION:
Approval
TOTAL COST: $-0- BUDGETED: Yes No
COST TO COUNTY: $-0- SOURCE OF FUNDS: N/A
REVENUE PRODUCING: Yes No X AMOUNT PER: Month Year
-
APPROVED BY: County A:! a 'ng _ Risk Management_
DIVISION DIRECTOR APPROV :
DOCUMENTATION: Incl uded X To Follow Not Required_
DISPOSITION: AGENDA ITEM #
RESOLUTION NO. , 2008
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
MONROE COUNTY, FLORIDA APPROVING A REVISION TO THE
LOCAL HOUSING ASSISTANCE PLAN, HOMEBUYER ASSISTANCE
STRATEGY; AND PROVIDING FORAN EFFECTIVE DATE.
WHEREAS, the State of Florida enacted the William E. Sadowski Affordable
Housing Act, Chapter 92-317 of Florida Sessions Laws, allocating a portion of
documentary stamp taxes on deeds to local government for the development and
maintenance of affordable housing; and
WHEREAS, the State Housing Initiatives Partnership (SHIP) Act, SS. 420.907-
420.9079, Florida Statutes (1992), and Rule Chapter 67-37, Florida Administrative
Code, required local governments to develop a one to three-year local Housing
Assistance Plan outlining how funds will be used; and
WHEREAS, the Monroe County Board of County Commissioners approved the
Monroe County three year Local Housing Assistance Plan (LHAP) by Resolution
122-2007 on 3/21/2007; and
WHEREAS, the Monroe County Board of County Commissioners approved an
amendment to the Homebuyer Assistance Strategy to fairly and equitably distribute
Homebuyer funds by Resolution 412-2007; and
WHEREAS, the Monroe County Housing Authority, Administrator ofthe
Monroe County State Housing Initiatives Partnership (SHIP) Program, is
recommending approval of the amendment attached as Exhibit A-2008 in order to
more fairly and equitably distribute Homebuyer Assistance funding; and
WHEREAS, the current LHAP contains a 85% of available funds set-aside for
affordable permit properties; and
WHEREAS, sales prices of market rate properties have declined significantly
and some are currently below the sales price of affordable permit properties; and
WHEREAS, this amendment to the Homebuyer Assistance Strategy eliminates
the 85% set aside for affordable permit properties.
NOW, THEREFORE, BE IT RESOLVED, by the Board of County
Commissioners of Monroe County Florida, that the County hereby:
Approves the amendment to the Monroe County State Housing Initiatives Partnership
(SHIP) Program, 2008-2009 and 2009-2010 Local Housing Assistance Plan (LHAP),
Homebuyer Assistance Strategy, attached hereto as "Exhibit A-2008".
PASSED AND ADOPTED THIS DAY OF .2008.
BOARD OF COUNTY COtvlMISSIONERS
OF MONROE COUNTY, FLORIDA
By:
Mayor
Mayor Pro Tern -
Commissioner
-
Commissioner
Commissioner
-
SEAL:
ATTEST:
Approved as to legal sufficiency:
Date:
PEDRO J.
ASSISTANT C
Date
B. Name of the Strategy: BOMEBUYER ASSISTANCE
a. Summary of the Strategy:
Funding assistance for the purchase of single-family residential property,
including condominiums or townhouses.
b. Fiscal Years Covered:
2008-2009/2009w2010
c. Income Categories to be served:
Very low, low and moderate
d. Maximum award is noted on the Housing Delivery Goals Charts:
Mortgage loan not to exceed $45.000. Inspection costs in excess of the
maximum award will be a program expense, shall not exceed $750.00 and
will be a grant to the borrower.
c. Terms, Recapture and Default:
Mortgage loans will be a deferred payment loan for a period of thirty (30)
years with zero % interest. The loan will be due and payable in full upon
sale or transfer of the property, thirty (30) years and failure to comply with
the terms of the SHIP mortgage or death of the last surviving homeowner.
In the event of the death of the last surviving homeowner, any income
eligible heir residing in the home may assume the SHIP Loan as long as
they can obtain title to the entire property within one (1) year of the death
of the last surviving homeowner and the first mortgagee consents to the
assumption of their loan.
f. Recipient Selection Criteria:
Applications for Homebuyer Assistance must include:
1. A contract for purchase of an existing housing unit or one under
construction. An ''under construction" housing unit shall be defined as
having a building permit and pilings/foundation complete and
inspected.
2. A lending institution pre-qualification letter for the amount to be
financed which may assume a $45,000 SHIP loan.
3. An affidavit from the Seller in the event this is a unit under
construction, indicating the delivery date of the housing unit [cannot
be more than five months from the date of the SHIP Notice of Funding
Availability (NOFA)].
EXHIBIT A-ZOOS J.
November 19. 2008
In the event there are more applicants than funds available, upon
completion of the initial advertising, lotteries will be utilized to determine
the order of fimding.
Applicants who fail to submit complete applications, who do not meet
SHIP threshold requirements or cannot close due to financing or any other
reason, may not reapply for SHIP assistance until the following
application cycle.
No new applications will be accepted for this strategy until all previous
applicants ranked by lottery have had an opportunity to participate. In the
event additional funding slots become available, the program will re-
advertise the availability offunds and ifneed be, conduct a new lottery.
g. Sponsor Selection Criteria:
N/A
h. Additional Information;
Buyer(s) must contribute a minimum three percent (3%) down payment.
Property must meet minimum health and safety standards as defined under
the V,S Department of Housing and Urban Developmenfs, Housing
Quality Standards (HQS). Any HQS deficiencies must be corrected prior
to or as part of the purchase transaction. In the case of new construction, a
Certificate ofQccupancy (CO) may be substituted for the HQS inspection.
Mortgage loans to public entities, which retain ownership of the land
under the terms of a ground lease, shall extend to the improvements.
Public agencies and/or non-profit affordable housing development
organization may request the SHIP loan be re-loaned to subsequent buyers
if the following conditions are determine~ to exist at the time of sale:
l. Prospective buyer meets SIllP income eligibility guidelines for
very low, low or moderate income limits.
2. The transaction maintains the properties affordability to the
prospective buyer.
3. Long term affordability criteria are recorded, enforced and for a
period not less than the term of the, SHIP mortgage and the
transaction is consistent with such affordability criteria.
i. Shared Appreciation Provision:
All SHIP funds under this strategy are subject to a mortgage that shall
contain recapture provisions which provides for shared appreciation
between the buyer(s) and the Monroe County SHIP Program. The amount
due Monroe County upon sale, transfer or refinancing of the property shall
be calculated by adding the sum of the principal balance of the SHIP loan
and 50% of the appreciated value,
EXHIBIT A.200S 2
November 19, ZOOS
The appreciated value shall be the difference between the original
purchase price and the sales price or appraised value less any real estate
commission, less the value of any permitted improvements.
Housing units constructed utilizing Affordable Housing Permits which
restrict appreciation in the housing unit's value, shall not be subject to the
Shared Appreciation Provision.
EXHIBIT A-IOO8 3
November 19,2008