Loading...
HomeMy WebLinkAboutHousing Program Summary subEXHIBIT "A„ City of Miami Department of Community Development Housing Program Summary Homeownership Policy- Buyer RESOLUTION 06-0327 MAY 25, 2006 HOMEOWNERSHIP POLICY- BUYERS PROPOSED HOMEOWNERSHIP 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. Same as Resolution No. 06-0327 (No change) Funding HOME, CDBG, AHT Same as Resolution No. 06-0327 (No change) Repayment Requirements Zero (0%) interest loan for a period of 30 years. In the case of sale or transfer of the unit, the entire assistance amount will be due and payable, 1. In the case of sale or transfer of the property, the borrower will be required to sell the unit to an income eligible borrower approved by the City. 2. In the case of sale or transfer of the unit the City will share in the gain realized by the borrower. a. 0 to 3 years — City receives 100% of the City's pro rata share of the gain generated. b. 3 — 20 years — On the 3`d year, City receives 85% of the City's pro rata share of the gain generated and borrower receives 15%, Thereafter, the borrower receives an additional 5% of the City's prorated share per year reducing the City's share by the same percentage until year 20. c. Year 20 and above: The borrower receives 100% of the gain. The above gain sharing proposal will terminate in foreclosure; however, the city will require lenders to provide us a right of first refusal to purchase the loan at a negotiated price. 3. Forgivable loan after the affordability period of 30 years EXHIBIT "A" City of Miami Department of Community Development Housing Program Summary Homeownership Policy- Buyer Minimum/ Maximum Subsidy $1,000/ $40,000 Same as Resolution No, 06-0327 (No change) Affordability Period 30 Years Same as (Nol06-0327 change) Security Affordability period to be enforced by a restrictive covenant that will run with the land as well as a mortgage. Same as Resolution No, 06-0327 (No change) Developer Fee N/A Same as Resolution No. 06-0327 (No change) Minimum Down Payment $500.00 Same as Resolution No. 06-0327 (No change) Minimum Ratio of City Funds to other Funds in the Project N/A Same as Resolution No. 06-0327 (No change) Type of Assistance Down payment assistance and closing costs Same as Resolution No. 06-0327 (No change) Maximum Purchase PriceNalue of Property $236,000.00 Same as Resolution No. 06-0327 (No change) City of Miami °apart ent of Community Cie v Iopment Housing P ogram Summary HCMrECIWNERSHIP POLICY -'BUYERS f / ! 1f /L) Program Description '`+, To essist low income homebuyers in the purchase of a home by prov ding,ctown payment_ closing costs and/or second mortgage financial e.. istan a for the -purchase of a newly constructed or existing residential property within the City. Funding HOME, SHIP,COBG, AHT Repayment Requirements ?ero (0%) in'tkr.est loan for aperiod of 30 years. to ,he cre of:'sateor-transferof the unit. the en uF assista non amount will be due and payable. Minimum/ Maximum Subsidy S1.0 :$440.,000 i r Affordability Period 30 Years Security y Affordability period to be enfor• d by a restrictive cotenant Cat wit/ run wig the land Gs well as a mortgage. t eveloper Fee \; N/A Minimum Down -- -Payment ;• J- - -Minimum-Ratio of City . 'Funds to other Funds in the Project N/A g° Type of Assistance flown payment assistance aanc3 clAg -costs Maximum Purchase PriceNalue of Property S236.000.00 Reid City of Miami 'Department of Community Oevelopment Housing 'Program Summary HOMEOWNERSHIP POLICY OEVEI:OPERS :5tti,)9-)fulecid.-1( Cry Jy-Y16,{ (.14.-. QA: Program Description . Provides assistance to dev_ek)pers for the „construction of new affordable homeownership units The units ,can be condos. lownhomes, or single family -scattered• site developments, • Funding HOME, SHIP, CDSG. AHT Repayment Requirements riftablet, oanConverted to a zero .(i)%) interest repayable second mortgage for the i buyers once project is completed. In thecase of a:Developer default .(incorriptete project) full.payment of construction loan and accrued default interest at the maximum rate allowed by law, In additichrt, the developer and all principalswith a minimtim 01 10% share in the , development will be barred from participating in any City of Miami programs for a minimum of five-(5) ?ears. Second mertga4e to 'buyer wilitave the lortowing terms: 1. Repayable at0% interest after the affordability period of 30 years 2. In the C2Se of 'Sate or transfer of the unit, the entire assistance amount witFbedile . \ - and payable, . '-„, „ Minimum/Maximum • Subsidy ., $ :000 per unit 10-1110 MaXimUrn subsidy cap as published based on bedroom size. , Affordability Period . . _ __ . . - - . . ' . 30 year a.ffordability period for the.secorici mcnp,ages. The .second mortgages will be ... at sarne.terms and•conclitions as 'that tfor direct subsidy to buyers at the tirneof c..Aosing. , .., Security There will e a irestrict ive covenant andmortgage „on the property. Liponcomptetion of the project, the total debt -to the developer, is transferred in proirata share toeaori assisted unit, In the event of a- developer tiefault. the restrictive covenantwill remain .1 on the property and applicable interest rates*111de due. . Developer fee UP 1016% 01 total project costs, visWfserrierrfkbesed on percentage oloonstfuotion :,.. -completion. • Service Charge _/ :,. 1% of City Loan with a maximum Oi S1'5;000 will be d and payable as good faith commitment fee for for-profitdevetopers, 30 e„zys .a tte nding approval. Minimum Ratio of City funds lo other Funds in the Projeci 1;2 Desirable -on e project by project basis • \ , Type of Assistance Construction hard costs and soft costs or -set -aside for nomebtlyer assistance after •compieticn. •,, Maximum PurC Price/Value of Property -hise . $236.00000 Miscellaneous , 1. Income of buyers must .be at or below 80% of Area Median lncomees published by HUC top lb 120%of AMI for SHIP funds; up id 1"50% foi.rI\HT funds) Revised � (-1 1 n 1 � j t, r. City of ttittamf Department of Community Development Housing Program Summary HOMEOWNERSHIP POLICY - BUYERS N. Program ;e_ ription To as£isl low income hometn:yers in the purchase cf a ho ety-pro,Ming•tfowm payment, closing ^..osts andiCe second n1orteage financial ess;stande for the purchase of a newly constructed or existinvesidentiai Property within the<City. funding \\ HOtJ , SKIP, COBG, AHT ' k Repayment Requirements 1. forgivate loan after the affardetility period of 30 }ears 2. In the case of sale or transfer of the unit, the entire assistance amount will be - due end payable. In addition, the ,ty wit share in Ihe-g:in-realized by the borrower according to the foliowiriS schedule; a• .©to 3 years - 't'JD% of the -City's pro reta share •of tihe.geinr rereted. 1 'b. 3- 30 years - On the Bill year; City receives €S%,of•the .:ity's-pro rata share of the;,ain yeneratad and •borrower receives t'5%, ''weal er, \ the borrower receives additional 4th% of the 'Citys prorate share per year 1 \ reducing tt e Cily's share -by the same -percentage. 3. The above gain sharing proposa; wilitermirate in 1orec ©suss; however, the city wilftequire lenders to provide us a r tit of fast refusallo Q;x-chase the loan ' at nag sated price, Special Provision In the event of a fo sure, provides the City Maneger or his -designee the authority to exercise l e right of first refusal to negotiate and -execute a .haoe agreement with the len¢ar• \'y\ Minimum Maximum Subsidy 41,000 5-40,000 Affordability Period j \ 30 Years Secunty i Affordability period anti equity.haring 4o be -enforced bye reairiotive'venentthat wilt run with the land as well a Mort Si. Cave toper Fee \ N/A f dinimurn down p3,00 aym ,pent __ ;, " Minimum ratio of City funds to other funds in -the ,Pr jest \ Type of Assistance _ Coven r$ymer:t assistan wend closing -costs Maximum Purchase PrioeNalue of Property w236;000O Revii,ed 04.10-06 City of Miami Department of Community Development Housing Program Summary HOMEOWNERSHIP POLICY - DEVELOPERS Program Description P�rovicies assistance to developers for the construction of new affordable Itczmeownership units. The units can be condos, townhomes, or single family scattered site`developments. Funding HOME, SHIP, CDSG, AHT Repayment Requirements ____, - � • Forgivable' oan converted to second mortgages for the buyers once project le completed. 1n\the case of a Developer default (incomplete project) full payment of construction loar•, and accrued default interest at the maximum rate allowed by law, In addition, the dc(eloper and all principals with a minimum of 10% share In the development will be barred from participating in any City of Miami programs for a minimum of Live (5) y art Second mortgage to b el will have the following terms: 1. Forgivable loan after the affordability period of 30 years 2. In the case of sale'p�pr transfer of the unit, the City will share in the gain realized by the borrower. a, 0 to 3 years - iQO•nf the City's pro rata share of the gain generated. b. 3 - 30 gears - On they3r°year, City receives 85% of the City's pro rata share of the gain generated and borrower receives15%, Thereafter, the . borrower- receives additfopei 5% of the.City s prorate share per year reducing the City's share by, the same percentage. The above gain searing proposal will te'r lnete in foreclosure; however, the city will require lenders to provide us a right of fiat refusal to purchase the loan at negotiated price. Minlrnum/Max€rnum Subsidy 1 $1,000 per unit to HUD Maximum subsidy cap a¢ published based on bedroom size. - r Affordability Period 30 year affordability period for the second mortgages., The second mortgages will be at same terms and conditions as that for direct subsidy -to buyers at the time of closing. , Security fir • There will be a restrictive covenant and mortgage on the property. Upon completion of the project, the total debt to the developer is transferred in pro rate share to each assisted unit. In the event of a developer default, the restrictive,covenent will remain, on the property and applicable interest rates will be due. Developer Foe p Up toi6% of total project.costs, Disbursements based on percentage of construction completion. r - ---- _._, Service Charge -.14-ofCity-Laan-with_a_maximum a 15,000 will be due and payable as good faith commitment fee for for -profit developers, 30 days after funding approval: ---.- - - Minimum ratio of City funds to other funds in the project 1:2 Oesirabie on a project by project basis Revised 04-1g-06 Type of Assistance nstruction hard costs and soft costs or set -aside for hornebuyer assistance after completion. Maximum Purchase PriceNalue of Property $236,000:00 Miscellaneous 1. income of buyers must be at or below 80% of Area Median income as published by KUD (up to 120% of AMi for SHIP funds; up to 150% for AHT funds) Revised 04-10-06