Item Q06
Board of County Commissioners
Agenda Item Summary
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AGENDA ITEM WORDING:
Approval from the Board of Cou Com~sioners for the inclusion of the following
wordage in the "TERiS" select' n of thel,!4onroe County Ship Program Home Buyer
Assistance Overview This provides that, should the property be sold or transferred prior
to the end of the thi (30) year term, the amount due shall be determined by
calculating the sum of the principal balance of the original SHIP loan plus 500/0 of the
appreciated value excludinG reciDients of homes Drovided by Habitat for Humanity.
,etvision: Board of County Commissioners
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& Department: George R. Neugent
Meeting Date: November 19, 2003
Bulk Item: Yes C No ~
ITEM BACKGROUND:
PREVIOUS RELEVANT BOCC ACTION:
Passed on October 15, 2003 previous BOCC meeting without underlined wordage
above, S. 3
CONTRACT I AGREEMENT CHANGES:
STAFF RECOMMENDATIONS:
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TOTAL COST:
BUDGETED: YES C NO C
COST TO COUNTY: $
tJ.p.
Source of Funds:
REVENUE PRODUCING: YES C NO C AMT PER MONTH:
YEAR:
COMB/PURCHASING C RISK MANAGEMENT C
APPROVAL:
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C NOT REQUIRED C
DISPosmON:
AGENDA ITEM #
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MONROE COUNTY SHIP PROGRAM
HOMEBUYER ASSISTANCE - OVERVIEW
GOAL
The goal of the Monroe County SHIP Homebuyer Assistance strategy is to provide funds to assist
eligible persons with the purchase of a home.
ELIGIBLITY
Applications are accepted from individual households and public entities/non-profit housing providers.
SHIP Homebuyers Assistance funds are dedicated to very low, low and moderate-income households.
SELECTION
Annually, 50% of Homebuyer Assistance funds are initially set aside for public entities and non-profit
housing providers. These applications will be ranked in order of greatest amount of leverage funds
committed to the project. Secondary ranking will be in order of receipt of application. In the event set
aside funds are not fully committed, those funds are available for commitment to individual applicants.
Applications from individuals or households will be ranked based on the results of a random lottery to
be conducted on Wednesday, October 8, 2003 (lpm) at the Special Programs Office, 1403 12th Street,
Key West, Florida. Attendance at the lottery is not required, though it is open to the public and anyone
may attend. The lottery determines the order in which applications are processed until all funds are
committed/expended.
TERMS
SHIP funds are provided in the form of a mortgage loan. Individuals and families are eligible for loans
of $25,000. Public entities and non-profit housing providers are eligible for loans of $35,000. The
SHIP loan shall accrue NO interest and require NO payments for a term of thirty (30) years. The
buyer(s) will be required to contribute a minimum 0[3% of the home purchase price and have the ability
to qualify for a first/primary mortgage that meets the standard underwriting criteria of conventional
lending institutions. The SHIP mortgage contains a recapture (payoff) provision that provides for shared
appreciation between the buyer(s) and Monroe County SHIP Program. This provides that, should tht:
property be sold of transferred prior to the end of the thirty (30) year term, the amount due shall be
determmed by calculatmg the sum of the principal balance of the original SHIP loan plus 50% of the
appreCIate va ue: e appreCIate va ue s a e t le I erence etween t e purc ase price at the tIme
of purchase and the sales price at the time of sale, less the value of permitted improvements and real
estate sales commission.
The maximum purchase price for an existing home is $257,000 and for new construction is $270,000.
Any applicants proposing to construct new housing will be required to provide sufficient evidence of
readiness to proceed prior to the issuance of a SHIP commitment, (site control, permit allocation,
financial capacity...).
Public agencies and/or non-profit affordable housing development organizations will be required to
provide sufficient evidence affordability prior to the issuance of a SHIP commitment (deed restrictions,
affordability criteria, initial sales price, resale price restrictions, land lease, client selection criteria,
SHIP Homebuyer Assistance
Overview
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