Resolution 042-2009
RESOLUTION NO. 042 ,2009
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
MONROE COUNTY, FLORIDA APPROVING A REVISION TO THE
LOCAL HOUSING ASSISTANCE PLAN, HOME BUYER ASSISTANCE
STRATEGY; AND PROVIDING FOR AN 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-2009 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:
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-2009 ".
PASSED AND ADOPTED by the Board of County Commissioners of Monroe County,
Florida at a regular meeting of said Board on the 28th day of January, 2009.
.....,~
Mayor George Neugent Yes
Mayor Pro Tern Sylvia Murphy Yes
commissioner Kim Wigington Yes
Commissioner Heather Carruthersy es
Commissioner Mario Di Gennaro Yes
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. ATTEsT: DANNY L. KOLHAGE, Clerk
By.q~ ~ ~
. Deputy Cler
BOARD OF COUNTY COMMISSIONERS
OF M~ROE COUNTY, FLORIDA
Byfi.."".. ~4 n~,e.Q--.-
Mayor George Neugent
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Page 2 of 2 Pages
Resolution LHAP re Homebuyers
Assistance Program
B. Name of the Strategy: HOMEBUYERASSISTANCE
II. Summary of the Strategy:
Funding assistance for the purchase of single-family residential property,
including condominiums or townhouses.
b. Fiscal Years Covered:
2008-2009/2009-2010
(:. 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.
e. Tenus, 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 SlflP 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 SlflP Loan as long as
they can obtain title to the entire property within one (I) 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:
I. 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 SlflP 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 SlflP Notice of Funding
Availability (NOF A)].
EXHIBIT A-2009
.January 28, 2009
1
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 funding.
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 of funds and if need 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 U.S Department of Housing and Urban Development's, 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 of Occupancy (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-Ioaned to subsequent buyers
if the following conditions are determined to exist at the time of sale:
1. Prospective buyer meets SHIP 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 SOO/o of the appreciated value.
EXHIBIT A-2009
January 28, 2009
2
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-2009
January 28, 2009
3
RESOLUTION NO.
412
,2007
A RlJ:SOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE
COUNTY, FWRlDA APPROVING AN AMENDMENT TO THE MONROE COUNTY
LOCAL HOUSING ASSISTANCE PLAN (LHAP) FOR FLORIDA FISCAL YEARS 2007-
2008,2008-2009 AND 2009-2010.
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
govemments to develop a one or three-year Local Housing Assistance Plans outlining how funds will
be used; and.
WHEREAS, the Monroe County LHAP for the State of Florida fiscal years 2007-2008. 2008-
2009 and 2009-2010 was previously adopted by the Monroe County Board of County Commissioners
and approved by the Florida Housing Finance Corporation; and,
WHEREAS, the Monroe County Housing Authority, Administrator of the Monroe County State
Housing Initiatives Partnership (SHIP) Program, is recommending approval of the amendment
attached as Exhibit A in order to fairly and equitably distribute Homebuyer Assistance funding due to
the demand for funding exceeding the supply; and,
WHEREAS, the Monroe County Housing Authority conducted an advertised Workshop to
solicit inputs from the various stakeholders on September 12, 2007 to address the issues raised in the
attached Status Report, and,
WHEREAS, the proposed amended Homebuyer Strategy addresses many of the stakeholders
concerns.
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 Stale Housing Initiatives Partnership (SHIP)
Program, 2007.2008, 2008-2009 and 2009-2010 Local Housing Assistance Plan (LHAP).
Homebuyer Assistance Strategy, attached hereto as "Exhibit A ".
PASSED AND ADOPTED THIS 17th
DAY OF OCTOBER, 2007.
Mayor Di Gennaro ~
Mayor Pro Tern Spehar ~
Commissioner McCoy ..Y&lL
Commissioner Murphy Yes
Commissioner Nugent Yes
BOARD OF CONTY COMMISSIONERS
OF~~Y,&ORIDA
By: i'tW~
Mayor Mario Di Gennaro
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B. Name of the Strategy: HOMEBUYER ASSISTANCE
a. Summary of the Strategy:
Funding assistance for the purchase of single-family residential property,
including condominiums or townhouses.
b. Fiscal Years Covered:
2007-2008/2008-2009/2009-20 I 0
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.
e. Terms, Recapture and Default:
Mortgage Joans 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, transfer or refinancing of the property, thirty (30) years or 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.
r. Recipient Selection Criteria:
Applications for Homebuyer Assistance may only be made by individual
purchasers and 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 10 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)].
Annually, 85% of funds budgeted under this strategy will be allocated to
individual purchasers for housing units built by public entities and non-
EXHJ:BJ:T A
profit affordable housing providers. 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 funding for the market rate
housing units and public entities and non-profit affordable hosing units.
Applicants who fail to submit complete applications, who do not meet
SHIP threshold requirements or can't close due to financing or any other
reason, may not reapply for SHIP assistance until October 2008.
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 and all previous
applicants have had an opportunity to participate, the program will re-
advertise the availability of funds and conduct additional lotteries.
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 U.S Department of Housing and Urban Development's, 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 of Occupancy (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-Ioaned to subsequent buyers
if the following conditions are determined to exist at the time of sale:
1. Prospective buyer meets SHIP income eligibility guidelines for
very low or low income.
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
BXIIJ:BrT A
and 50% of the appreciated value.
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.
I!:X!n:SJ:T A
MONROE COUNTY SHIP PROGRAM
HOMEOWNERSHIP STRATEGY
STATUS REPORT
STATUS:
l. The SHIP County FY 2008 budget has $1,595,000 budgeted for
Homeownership down-payment and closing cost assistance. Of this amount,
$315,000 has been committed to the Middle Keys Community Land Trust
leaving $1,280,000 available or enough money to fund 28 homebuyer
transactions at $45,000 per transaction.
2. Four affordable housing permit developments containing 179 units have or
will shortly break ground. All have started accepting reservations and/or
contracts on units.
3. FY 2008 SHIP Stale funding will be funded quarterly starting in July 2007
due to a projected revenue shortfall (see attached) at the State level.
Approximately $900,000 of the $1,280,000 available for homeownership will
be funded from FY 08 interest, repayments and receipts from the State.
4. We estimate that 65 to 75% of the purchasers of the 179 units will need some
form of down-payment and closing cost assistance to be able to purchase a
unit.
5. The SHIP Rule requires the county to advertise the availability of funds which
is scheduled for 10/01/2007 thru 10/31/2007. The SHIP Program could
receive as many as 75 applications from households having a contract to
purchase an affordable unit by 10/31/2007.
ISSUES:
I. The current SHIP Local Housing Assistance Plan (LHAP) was not written to
address the current demand for SHIP Homeownership funds and availability of
affordable housing units.
GOAl,:
1. Develop a fair and equitable method of distributing SHIP Homeownership Funds
prior to advertising the Notice of Funding Available.
RECOMMENDATIONS:
I. Advertise a SHIP Homeownership workshop and invite all of the stakeholders
and public to obtain their inputs on revising the current LHAP Homeownership
Strategy.
2. Advise the County Mayor, Commissioners and County Administrator on the
status of Homeownership Strategy funding.
3. Modify the lRAP Homeownership Strategy to ensure the award to eligible
purchasers is fair and equitable.
mblLHAP