Resolution 234-2011 RESOLUTION NO. 234 - 2011
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
MONROE COUNTY, FLORIDA APPROVING A REVISION TO THE MONROE
COUNTY STATE HOUSING INITIATIVE PROGRAM (SHIP) LOCAL
HOUSING ASSISTANCE PLAN, HOMEBUYER 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 118 -2010 on
4/21/2010; and
WHEREAS, SHIP Homebuyers who have purchased their homes over the last four (4)
to five (5) years are finding that their homes are not saleable in the current real estate market
and they have little or no equity in their homes; and
WHEREAS, lending institutions are willing to finance the purchase of these housing
units if the SHIP Loans are assumable; and
WHEREAS, the SHIP mortgage loan portfolio as of June 30, 2011 totals $9,066,297 and
approximately 80 of these homes totaling $3.600,000 in SHIP loans are estimated to be not
marketable at this time; and
WHEREAS, the Monroe County Housing Authority, Administrator of the Monroe
County SHIP Program, is recommending approval of the amendment below and attached as
Exhibit A -2011 in order to enhance the marketability of these homes.
NOW, THEREFORE, BE IT RESOLVED, by the Board of County Commissioners of
Monroe County Florida, that the County hereby:
Approves the following amendment to the Monroe County State Housing Initiatives
Partnership (SHIP) Program, 2010 -2011, 2011 -2012 and 2012 -2013 Local Housing
Assistance Plan (LHAP), Homebuyer Assistance Strategy, and also attached hereto as
"Exhibit A-2011".
Terms, Recapture, Default and Assumption:
.... Individual SHIP Homebuyer Mortgage Loans may be assumable in order to
enhance the owner occupied property's marketability when the current appraised
value is equal to or less than the original purchase price plus the balance of the
SHIP loan on a case by case basis and must be recommended by the SHIP
Program Coordinator and approved by the SHIP Program Administrator. This
assumption provision shall expire on June 30, 2013.
PASSED AND ADOPTED by the board of County Commissioners of Monroe County,
Florida at a regular meeting of said Board on the 17` day of August, 2011.
Mayor Heather Carruthers Yes
Mayor Pro Tem David Rice Yes
10 r `'•• 4 Commissioner Kim Wigington Yes
l Commissioner George Neugent Yes
- 1 _A Commissioner Sylvia Murphy Yes
Z ,
1. — �•
€ -
O
° OO•rr as
ATTE .. 1 L. KOLHAGE, Clerk BOARD OF COUNTY COMMISSIONERS OF
MONROE COUNTY, F. ORIDA
BY: � BY: j _ •
Deputy Clerk Mayor Hea r C. grs - -
Approved as to legal sufficiency: ry rn
w o
Date: - v
rn
= _ i -1 -; c-
o
MO E COUNTY ' OR y ` i o
Ra ED AST�7 p /
i / 0
P - DRO J. r RCADORNEY
ASS I /I
ate —
MONROE COUNTY SHIP PROGRAM
2010 -2011, 2011 -2012 AND 2012 -2013 LHAP
EXHIBIT A -2011
B. Name of the Strategy: HOMEBUYER PURCHASE ASSISTANCE
A. Summary of the Strategy:
Funding assistance for the purchase or construction of a single - family, residential,
owner occupied property, including condominiums and townhouses.
B. Fiscal Years Covered:
2010-2011/2011-2012/2012-2013
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 $45,000.00. Inspection costs in excess of the
maximum award will be a program expense, shall not exceed $350.00 and will be
a grant to the borrower.
E. Terms, Recapture, Default and Assumption:
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 payment in
full of the first mortgage, sale or transfer of the property, thirty years (30), 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.
Individual SHIP Homebuyer Mortgage Loans may be assumable in order to
enhance the owner occupied property's marketability when the current appraised
value is equal to or less than the original purchase price plus the balance of the
SHIP loan on a case by case basis and must be recommended by the SHIP
Program Coordinator and approved by the SHIP Program Administrator. This
assumption provision shall expire on June 30, 2013.
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)].
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 the
funding. Applications will be ranked by date and time of receipt. The day, time
and location of the lottery will be made available to the eligible applicants within
one week of the end of the NOFA. An independent 3 party will draw numbers
to establish the order of ranking. Applicants do not have to be present at the
drawing to participate. Funding will be awarded in the order drawn, in the event
an applicant withdraws his application, the next person on the list will be funded.
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 previously ranked
by lottery applicants 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.
The dwelling unit purchased must be financed with a federally insured financial
institution. In the event other financing methods are utilized and approved by the
SHIP Administrator, the SHIP Note and Mortgage must be a first mortgage.
Priority will be given to those applicants demonstrating innovative design, green
building principles, storm resistant construction or other elements that reduce long
term costs relating to maintenance, utilities or insurance.
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, refinancing or transfer of the property shall be calculated by adding the sum
of the principal balance of the SHIP loan and 50% of the appreciated value.
The appreciated value shall be the difference between the original purchase price
and the sales price 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.
4