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Resolution 180-2015S RESOLUTION NO. 180 2015 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA APPROVING A REVISION TO THE MONROE COUNTY STATE HOUSING INITIATIVE PARTNERSHIP PROGRAM (SHIP) LOCAL HOUSING ASSISTANCE PLAN (LHAP), HOMEBUYER ASSISTANCE STRATEGY, TO EXTEND THE DATE ALLOWING FOR ASSUMPTIONS OF EXISTING SHIP HOMEOWNERSHIP MORTGAGES; 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 2014- 2015 -2016 three year Local Housing Assistance Plan (LHAP) by Resolution 128 -2013 on April 17, 2013; and WHEREAS, the date to pen the assumption of existing Homebuyer Assistance Strategy Loans will expire on June 30, 2015; and WHEREAS, the initial criteria to create the SHIP HOMEOWNERSHIP LOAN ASSUMPTION revision has proven effective; and WHEREAS, lending institutions are willing to finance the purchase of these housing units if the SHIP Loans are assumable; and WHEREAS, the Monroe County Housing Authority, Administrator of the Monroe County SHIP Program, is recommending the date to allow the assumption of existing SHIP Homeownership Loans be extended to June 30, 2017, attached as Exhibit A -2015 in order to enhance the marketability of these homes, retain these homes in the affordable housing pool and protect the integrity of die existing $8,741,776 SHIP loan portfolio. NOW, THEREFORE, BE IT RESOLVED, by the Board of County Commissioners of Monroe County Florida, that the County hereby: Approves the amendment to the Monroe County State Housing Initiatives Partnership (SHIP) Program, 2013 -2014, 2014-201-5, 2015 -2016 Local Housing Assistance Plan (CHAP), HomebUyer Assistance Strategy, attached hereto as "Exhibit A -2015 "to extend the date of assuming SHIP Homeownership Loans to June 30, 2017. PASSED AND ADOPTED by the board of County Commissioners of Monroe County, Florida at a regular meeting of said Board on the 15` day of July, 2015. Mayor Danny Kolhage es Mayor Pro Tern Heather Carruthers - Y Yes Commissioner George Neugent .._. . _ Yes Commissioner David Rice Ye$_ Commissioner Sylvia Murphy Y �OUNI Y CLERK BOARD OF COUNTY COMMISSIONERS OF MONROE UNI Y, FLORIDA 6 BY. ` t Mayor Danny Kolha Approved as t � legal sufficiency: Date .> ` % j .$ 01-1 Cl) J Ln c U-1 tz a 0 0 c� a C e ) C_, CS 0 JCS W �a.; C) M OE COUNTY ATTORNEY . � P/�iOVED AS /— PE /j DRO ERCADO `~ ASSlSTANI UNt i "i0 ;NEY Date_ EXHIBIT A -2015 HOMEBUYER PURCHASE ASSISTANCE REVISION 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: 2013- 201 4/2014- 2015/2015 -2016 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 $45,000.007 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 0 % interest. The loan will be due and payable in full upon payment in full of the first mortgage, sale or transfer of the property, after thirty years (30), failure to comply with the terns 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 and must be recommended by the SHIP Program Coordinator and approved by the SHIP Program Administrator. This assumption provision shall expire on June 30, 2017. 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. II. A lending institution pre - qualification letter for the amount to be financed which may assume a $45,000 SHIP loan. III. 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. 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 Y 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 (; %) down payment. Property must tneet 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. hi the event other financing methods are utilized and approved by the SHIP Administrator, the SHIP Note and Mortgage must be a first mortgage. 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, 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. MONROE COUNTY HOUSING AUTHORITY 1400 KENNEDY DRIVE • KEY WEST, FLORIDA 33040 305 296- 5621•7TY /Florida Relay Se nrice (FRS) 1- 800 -955 -8771 Board of Commissioners Ham' Bethel Aaron Castillo Carey Goodman Ailton Lopez Richard i'oppino June 18, 2015 1. Manuel Castillo, Sr. liwrt'livc Dircctnr Reference: Monroe County SHIP Program Assumption of existing SHIP Homeownership Loans Mayor &. Commissioners: 1 will be in Key West on July 15. 2015 and will attend the BOCC Meeting in the event that the attached proposed resolution is not passed in bulk. In late 2010 and early 2011 two distinct events occurred which prompted Resolution 234-2011 which approved the assumption of existing SHIP homeownership mortgage to income eligible purchasers. The resolution was proposed because of the absence of liquidity in the market place which was prohibiting SHIP assisted owners form being able to sell their homes. May of the homes were under water, financial institutions had changed their underwriting requirements and in particular, the amount of down payment required. Over 1/3 of the SHIP portfolio ($8,000,000 +) was under attack due to the housing crises we all experienced. The downturn in our economy resulted in unemployment, reduction in hours and SHIP recipients were unable to or using credit cards to make their mortgage payments. There were also a number of hardships that occurred from 2007 to 2011. Two bedroom homes were now being occupied by a husband, wife and two to three children. Husbands were being transferred from Key West to Islamorada or from Key Largo to Key West resulting in onerous commutes. The approval of Resolution 234-2011 in August immediately took the pressure off of families and gave them the opportunity to address the values/liquidity problems and/or hardships. Resolution 128 -2013 requesting the approval of the new 2014 -2015 -2016 SHIP LHAP extended the assumption provision to June 30, 2015. The problems that were experienced in 2010 and early 2011 were still lingering at the time of the LHAP's approval and we felt it appropriate to continue allowing assumptions of SHIP Homeownership mortgages. Today the liquidity and hardship issues are behind us. Interestingly enough the assumption provision which allows income eligible purchasers to assume these exiting loans is keeping these � =r SHIP assisted homes in the affordable pool of homeownership housing. The program has not had a loan payoff for a SHIP Homeownership transaction since 2006. Therefore. we recommend approval of the attached resolution. If anyone should have any questions or need additional information, please contact me at 305 -292 -6143 or via cell at 305- 797 -2133. $ in r ly, anuzl Castillo, Sr. Executive Director LHAP Exhibit E 2013 67- 37.005 (1) F.A.C. RESOLUTION128- 2013 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA APPROVING THE LOCAL HOUSING ASSISTANCE PLAN AS REQUIRED BY THE STATE HOUSING INITIATIVES PARTNERSHIP PROGRAM ACT, SUBSECTIONS 420.907- 420.9079, FLORIDA STATUTES; AND RULE CHAPTER 67 -37, FLORIDA ADMINISTRATIVE CODE; AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE ANY NECESSARY DOCUMENTS AND CERTIFICATIONS NEEDED BY THE STATE; AUTHORIZING THE SUBMISSION OF THE LOCAL HOUSING ASSISTANCE PLAN FOR REVIEW AND APPROVAL BY THE FLORIDA HOUSING FINANCE CORPORATION; AND PROVIDING 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 governments for the development and maintenance of affordable housing; and WHEREAS, the State Housing Initiatives Partnership (SHIP) Act, ss. 4 20.907- 420.9079, Florida Statutes (1992), and Rule Chapter 67 -37, Florida Administrative Code, requires local governments to develop a one- to three -year Local Housing Assistance Plan outlining how funds will be used; and WHEREAS, the SHIP Act requires local governments to establish the maximum SHIP funds allowable for each strategy; and WHEREAS, the SHIP Act further requires local governments to establish an average area purchase price for new and existing housing benefiting from awards made pursuant to the Act; The methodology and purchase prices used are defined in the attached Local Housing Assistance Plan; and WHEREAS, as required by section 420.9075, F.S. It is found that 5 percent of the local housing distribution plus 5 percent of program income is insufficient to adequately pay the necessary costs of administering the local housing assistance plan. The cost of administering the program may not exceed 10 percent of the local housing distribution plus 5% of program income deposited into the trust fund, except that small counties, as defined in s. 120.52(17), and eligible municipalities receiving a local housing distribution of up to $350,000 may use up to 10 percent of program income for administrative costs. WHEREAS, the Monroe County Housing Authority has prepared a three -year Local Housing Assistance Plan for submission to the Florida Housing Finance Corporation; and LHAP Exhibit E 2013 67- 37.005 (1) F.A.C. WHEREAS, the County Commission finds that it is in the best interest of the public for Monroe County to submit the Local Housing Assistance Plan for review and approval so as to qualify for said documentary stamp tax funds. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA that: Section 1 : The Monroe County Board of County Commissioners hereby approves the Local Housing Assistance Plan, as attached and incorporated hereto for submission to the Florida Housing Finance Corporation as required by ss. 420.907 -420 -9079, Florida Statutes, for fiscal years 2013 - 2014/2014- 2015/2015 -2016. Section 2 : The Mayor is hereby designated and authorized to execute any documents and certifications required by the Florida Housing Finance Corporation as related to the Local Housing Assistance Plan, and to do all things necessary and proper to carry out the term and conditions of said program. Section 3: Monroe county, a small county, as defined in s. 120.52(17) is an eligible municipality receiving a local housing distribution of up to $350,000, elects to utilize 10% of the local housing distribution plus 10% of program income deposited into the trust fund for administrative costs. Section 4 : This resolution shall take effect immediately upon its adoption. 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 April, 2013. 3 o Mayor George :xeugent Yes Vi c- *� rt Mayor Pro Tern Heather Carruthers Yes � rn r Commissioner Danny Kolhage Yes o a, Commissioner David Rice Yes Commissioner Sylvia Murphy Yes _ 3 m SEAL: N o HEAVILtUN, Clerk ATTEST: Monroe County Clerk BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA BY : BY: 'C` � ) � ty Depu Clerk Mayor George Nugent Approved as to legal sufficiency: Date: 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 Yen Mayor Pro Tern David Rice Yes Commissioner Kim Wigington Yes Commissioner George xeugent Yes Commissioner Sylvia Murphy Yes OLHAGE, Clerk BY: Deputy Clerk Approved as to legal sufficiency: Date: BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, ORIDA BY: Mayor Hear Ctt)gls - �i rl C N W a rn o O ,� O 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. 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, 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.