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HomeMy WebLinkAboutExhibitsEXHIBIT "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, dosing 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, SHIP, CDSG, 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. 3-20years —On the 3rd 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 Resolution No. 06-0327 (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. 06-0327 (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) EXHIBIT "B" City of Miami Department of Community Development Housing Program Summary Homeownership Policy- Developers RESOLUTION 06-0327 MAY 25, 2006 HOMEOWNERSHIP POLICY- DEVELOPER PROPOSED HOMEOWNERSHIP POLICY- DEVELOPER Program Description Provides assistance to developers for the construction of new affordable homeownership units. The units can be condos, townhomes, or single family scattered site developments. Same as Resolution No. 06-0327 (No change) Funding HOME, SHIP, CDBG, AHT Same as Resolution No. 06-0327 (No change) Repayment Requirements • Forgivable Loan converted to a zero (0%) interest repayable second mortgage for the buyers once project is completed. In the case of a Developer default (incomplete project) full payment of construction loan and accrued default interest at the maximum rate allowed by law. In addition, the developer 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 five (5) years. Second mortgage to buyer will have the following terms: 1. Repayable at 0% interest after the affordability period of 30 years 2. In the case of sale or transfer of the unit, the entire assistance amount will be due and payable. Forgivable Loan converted to a forgivable second mortgages for the buyers once project is completed. In the case of a Developer default (incomplete project) full payment of construction loan and accrued default interest at the maximum rate allowed by law. In addition, the developer 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 five (5) years. Second mortgage to buyer will have the same terms as the Homeownership Policy- Buyers. as approved by the City Commission, with the exception of the amount of subsidy per unit to be negotiated with developer at time of funding. Minimum/ Maximum Subsidy $1,000 per unit to HUD Maximum subsidy cap as published based on bedroom size. Same as Resolution No. 06-0327 (No change) 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. Same as Resolution No. 06-0327 (No change) Security 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 rata share to each assisted unit. In the event of a developer default, the restrictive covenant will remain on the property and applicable interest rates will be Same as Resolution No. 06-0327 (No change) EXHIBIT "B" City of Miami Department of Community Development Housing Program Summary Homeownership Policy- Developers due. Developer Fee Up to16% of total project costs. Disbursements based on percentage of construction completion. Same as Resolution No. 06-0327 (No change) Minimum Down Payment 1 % of City Loan with a maximum of $15,000 will be due and payable as good faith commitment fee for for- profit developers, 30 days after funding approval. Same as Resolution No. 06-0327 (No change) Minimum Ratio of City Funds to other Funds in the Project 1:2 Desirable on a project by project basic Same as Resolution No. 06-0327 (No change) Type of Assistance Construction hard costs and soft costs or set -aside for homebuyer assistance after completion. Same as Resolution No. 06-0327 (No change) Maximum Purchase PriceNalue of Property $236,000.00 Same as Resolution No. 06-0327 (No change) MISCELLANEOUS 1. Income of buyers must be at or below 80% of Area Median Income as published by HUD (up to 120 /o of AMI for SHIP funds; up to 150% for AHT funds) Same as Resolution No. 06-0327 (No change)