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HomeMy WebLinkAboutExhibit 1City of Miami Department of Community Development Housing Program Summary HOM€OWNERSHIP POLICY -BUYERS Program Description To assist low income homebuyers in the purchase of a home by providing -down payment. closing costs and/or second mortgage financial assistance for the purchase of a newly constructed or existing residential property within the City. Funding HOME, SHIP, CDSG, AHT Repayment Requirements Zero (0%) interest loan for a period of 30 years. In the case of aie or transfer of the unit. the entire assistance amount will be due and payable. Minimum/ Maximum Subsidy $1.000 '$40:000 Affordability Period 30 Years Security Affordability period to be -enforced by a restrictive covenant that will run with the land as well as a mortgage. 1 Developer Fee N/A Minimum Down Payment $500.00 Minimum Ratio of City Funds to other Funds in the Project N/A Type of Assistance Down payment -assistance and closing=costs Maximum Purchase PriceNalue of Property W236 000.00 Revised City of -Miami Department of mmunity Development Housing Pram Summary HOMEOWNERSHIP POLICY —BUYERS To assist Iow income horn eba. yers in the purchase of a home by providing down Program Des ription •payment,olosing costs andlor second mortgage financia assistance for the E purchase of a newly constructed or existing- residential property within the£ity. Funding HOtJE, SHIP, Cam, AHT Repayment `Requirements 1. Forgivable loan after the affordability period of 30 years 2. In the tease of sale or transfer of the unit, the entire • ssistance amount will be due and payable. In addition, the City will share in the gain realize by the borrower according to the • allowing schedule: a 0 to 3 years —100% of the City's pro rata share of e gain enerated. b. 3 — 30 years —On the 3`d year, City receives %of the City's pre •rate share of the lain generated and borrower receives 1'5%. Thereafter, the borrower receives additional -5% of the 1City's prorate share per year reducing the°City's share = by the same percentage. 3. The above gain sharing proposal will tenninate in foreclosure; however, the city wilf• squire tenders to provide us a right of first refusal -to purchase the loan at a negotiated price. Special Provision In the event of a foreclosure, provides the City Manager or hiedesignee the authority to exercise the right of first -refusal to negotiate and execute a purchase agreement with the lender. Minimum Maximum Subsidy $1 ,000 $40,000 I Affordability Period 4 30 Years Affordability period and equity'haring to be enforced by a restrictive covenant that Security j will run with the land as well ass mortgage Developer Fee N/A Minimum down payment 4503.0 Minimum ratio of City funds to other funds in the project Type of Assistance Down payment assistance�and ;.losing cos's Maximum Purchase PriceNalue of Property Rev d 04-10. 06