HomeMy WebLinkAboutExhibitEXHIBIT "A"
City of Miami
Department of Community Development
Housing Program Summary
Homeownership Policy — Buyer
RESOLUTION 06-0527
SEPTEMBER 12, 2006
HOMEBUYER 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. 06-0527
(No Change)
Funding
HOME, SHIP, CDBG, AHT
Same as Resolution No. 06-0527
(No Change)
Repayment
Requirements
1. In the case of 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 rate 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
Same as Resolution No. 06-0527
with the exception of the following
addition:
In the case of a foreclosure the City will
recapture any amount of net proceeds
available from the sale of the property.
.
EXHIBIT "A"
City of Miami
Department of Community Development
Housing Program Summary
Homeownership Policy — Buyer
Minimum / Maximum Subsidy
$1,000 / $40,000
$1,000 / Basic Subsidy based on
the number of bedrooms as
annually determined by HUD
under Section 221(d) (3) and 234.
(See below)
Affordability Period
30 years
Same as Resolution No. 06-0527
(No 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. 06-0527
(No Change)
Development Fee
N/A
Same as Resolution No. 06-0527
(No Change)
Minimum Down Payment
$500
Same as Resolution No. 06-0527
(No Change)
Minimum Ratio of City Funds to
other Funds in the Project
N/A
Same as Resolution No. 06-0527
(No Change)
Type of Assistance
Down payment assistance and
closing costs
Same as Resolution No. 06-0527
(No Change)
Maximum Purchase Price / Value
of Property
$236,000
Same as Resolution No. 06-0527
(No Change)
Basic Statutory Mortgage Limits for Calendar Year 2008
Section 221(d) (3) and 234
Number of bedrooms
0
1
2
3
i
4
Basic Subsidy
$48,328
$55,722
$67,202
$86,020
$95,830