Resolution 260-1995
RESOLUTION NO 260-1995
A RESOLUTION APPROVING THE INTERIM
FUNDING OF THE COUNTY'S SHIP FIRST
TIME HOMEOWNERSHIP APPLICANTS'
SECOND MORTGAGE USING PREVIOUSLY
APPROPRIATED LAND AUTHORITY FUNDS
AND PROVIDE FOR REPAYMENT OF LAND
AUTHORITY FUNDS FROM THE SHIP TRUST
FUND.
WHEREAS, Monroe County has secured $5,000,000 in State of Florida,
Florida Housing Finance Agency Tax Exempt Mortgage Revenue Bond First
Mortgage Financing at 6.8% 30 year fixed to support the Mo~e::fou3' fir~
time homeownership program; and::~:= :-: :z:,. 8
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WHEREAS, Monroe County has secured $2,500,000 itlUQM:FAundSU
$266,666 in HAL funds and over $1,000,000 in SHIP fund;m the {wID o~
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second mortgage loans for down payment and closmg cost!tloan aSSjitanC!5
having 0% interest rate and deferred payments for 30 years; and . 0 ':J
WHEREAS, the Monroe County Housing Authority Special Programs
Office has negotiated the substitution of required local match for HOME with
the match generated by the utilization of tax exempt mortgage revenue bonds
to preserve local funds available for affordable housing purposes; and
WHEREAS, the commitment fee ($90,000) to purchase the single family
mortgage revenue bond utilizing Monroe County Land Authority funds is
returned to the Land Authority from the proceeds of each closing; and
WHEREAS, the Monroe County First Time Homeownership Program has
closed or has scheduled closings totaling 84 of which 43 are for very low or
low income households (HOME) and 41 are for moderate income households
(SHIP); and
WHEREAS, the Monroe County First Time Homeownership Program has
utilized mortgage revenue bonds for 30 transactions and;
WHEREAS, conventional institutional first mortgage interest rates have
declined significantly in the past 120 days from 9.5 to 7.25 and further
reductions are anticipated based on the recently announced reduction in the
Federal Reserve Discount Rate~ and
WHEREAS, the Monroe County Housing Authority Special Programs
Office sale study of single family homes required to increase the FHA 203b
mortgage limit indicated of over 53% of all homes sold priced under $115,000
were sold to out-of-county and/or out-of-state purchases for second homes
and/or transient rental use~ and
WHEREAS, the housing stock available priced under $115,000 to first
time home buyers is declining rapidly based on the program's 84 closings to
date, intensified competition by out-of-county and out-of-state purchases due
to reduced first mortgage interest rates, and the return-on-investment available
from use as a transient rental~ and
WHEREAS, all SHIP program first time homeownership funds are
committed and SHIP 95-96 monthly state allocations only fund up to two
loans per month effective October, 1995~ and
WHEREAS, the SHIP program has 43 eligible first time home buyer
applications pending and is no longer soliciting applications~ and
WHEREAS, the Monroe County Housing Authority Special Programs
Office has requested the Monroe County Land Authority Advisory Board to
approve an alternative and interim use of available and appropriated HOME
match funds as detailed in the attached July 3, 1995 letter to Mr. Mark J.
Rosch, Executive Director~ and
WHEREAS, the State of Florida, Florida Housing Finance Agency has
approved the use of interim funding for second mortgage SHIP loans utilizing
funds provided by the Monroe County Land Authority as outlined in the
attachedletter~and
WHEREAS, the Monroe County Board of County Commissioners has
approved the Monroe County Local Housing Assistance Plan for fiscal years
1995 through 1998 by Resolution No. 105-1995~ and
WHEREAS, there is an urgent need to maintain the County's first time
homeownership program momentum to insure that as many applicants as
possible can participate while conventional first mortgage loan interest rates
are priced at less than 7.50%.
NOW THEREFORE BE IT RESOL YED, that the Monroe County Board
of County Commissioners hereby approves the purchase of loans from the
Monroe County Land Authority utilizing existing SHIP program guidelines
from the approved SHIP 1995-1998 Local Housing Assistance Plan, subject to
approval of the Monroe County Land Authority's Advisory Board and Board
of Commissioners.
PASSED and ADOPTED, by the Board of County Commissioners of Monroe
County, Florida at a regular meeting of said Board held on the 18th day of
July ,A.D., 1995.
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
BY: cS~-F.AU.Nf'tA~
Mayor Freeman
(SEAL )
ATTEST:
Mayor Freeman
Mayor Pro Tern London
Commissioner Douglas
Commissioner Harvey
Commissioner Reich
yes
yes
yes
yes
yes
~a-.()~~)
Danny Kolhage, Clerk f the Court
_,SllIP
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SPECIAL PROGRAMS OFFICE
C/O Key West/Monroe Co. Housng AuthOrities
1403 12th Street
Key West. Florida 33040
(305) 292.1221 FAX (305) 292-1162
July 3, 1995
Mr. Mark 1. Rosch, Executive Director
Monroe County Land Authority
3706 North Roosevelt Blvd. Suite 1
Key West, Florida 33040
Dear Mark,
The purpose of this letter is to confirm on behalf of the City of Key West's
and Momoe County's First Time Homeownership Programs, our request to
utilize a portion of the City of Key West and Monroe County HOME Match
Funds to make SHIP loans.
Monroe County has committed all of 1994/1995 and a portion of 1995/1996
SHIP First Time Homeovmership Funds through October, 1995. The
significant reductions in conventional first mortgage interest rates from
9.25% to 7.25% in the last 75 days permits a number of our applicants to
participate or has significantly increased the purchasing power of other SHIP
applicants.
Our records indicate that we now have forty-three (43) SlllP applicants on
hold for a minimum of 120 days~ after which the SlllP Program could only
fund approximately two (2) transactions per month. Analysis of our present
applicant base indicates at least twenty-five (25) residents of our community
will be able to close if given the opportunity to participate with funds
available.
.dedicated to the Quality of life through housing and COr.1munity initiatives.
Obviously, the demand for SHIP funds increases as first mortgage interest
rates decrease. The demand for Single Family home product intensifies as
interest rates decline with the out-of-County, out-of-state second home buyer
competing directly with First Time Homebuyer residents of Monroe County.
Unless the Special Programs Office can obtain an alternative or interim
source of SHIP second mortgage funding, the SHIP First Time
Homeownership strategy program momentum will be lost and out-of-County
second home buyers will be able to purchase the bulk of available housing
product priced at $110,000 or less per unit.
The Special Programs Office proposes that a portion of the current HOME
Match available for the City of Key West totaling $176,750. and for the
County totaling $225,750. be made available on an interim basis to make
SHlP second mortgages to eligible applicants.
Based on our present 1995/1996 SHIP First Time Homeownership BOCC
approved strategy totaling $269,842., the City's portion would ~e $118,515.
and the County's portion $151,327. for a total availability county-wide of
$269,842.
The mechanics of our proposal are simple. SHIP loans would be made
utilizing the County's SHIP Note and Mortgage and funded with Land
Authority HOill Match funds. The County's SHIP Trust Fund would
purchase these loans monthly starting November, 1995 based on the State's
remittance of SHIP funds and continue until paid do\\n to zero (0).
The residual benefits of our request is the probability of an accelerated return
of the Land Authority's $90,000. which was utilized to purchase Single
Family Tax Exempt Mortgage Revenue Bonds bearing an interest rate of
6.80tlo and the continued build-up of Match credits associated with Mortgage
Revenue Bond financing.
We have reviewed this proposed transaction with the Florida Housing
Finance Agency and it is currently being reviewed by DCA counsel. Upon
receipt of formal approval from the Florida Housing Finance Agency, we will
prepare a resolution for the Monroe County Board of County
Commissioners authorizing the proposed transaction and will coordinate
same with Mr. Danny Kolhage, Clerk of the Circuit Court.
We are attaching a copy of our 1995/1996 approved SHIP Housing Delivery
Goals for your infonnation. We trust this letter will meet your July 15, 1995,
Land Authority Advisory Board agenda deadline and \\'111 continue to pro\-ide
additional infonnation as it becomes available.
Sincerely yours,
Roger raun, Director
Special Programs Office
cc: G. Felix Cooper, City Manager
City of Key West, Florida
James Roberts, County Administrator
Monroe County
Henry V. Haskins, Executive Director
Monroe County Housing Authority
Thomas R. Stevens, Chainnan
Monroe County Housing Finance Authority
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