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Home My WebLink AboutProgram Summary 2City of Miami Department of Community Development Housing program Summary HOMEOWNERSHIP POLICY —BUYERS Program Description To assist low income homebuyers in the purchase of a home by providingdown payment. closing costs and/or -second mortgage financial assistance for the purchase of a newly constructed or existing residential property within,4he City. Funding HOME, SHIP. CDBG, AHT Repayment Requirements Zero (0%) interest loan for a period of 30 years. In the case of sale or ransfer of the unit. the entire assistance amount will be due and payable. Minimum/ Maximum Subsidy $1.000 '540.000 Affordability Period 30 Years Security Affordability period to be enforced by a restrictive covenant that will sun with the land as well as a mortgage. 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 S236.000 00 City of Miami Department of Community Development Housing Program Summary HOMEOWNERSHIP POLICY —.BUYERS Program Des ription 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 existingr esidential property within the City. funding HOME, SHIP, CDBG, AHT Repayment Requirements Special Provision 1. 'Forgivable loan after the affordability • period of 30 years 2. In thecase of sale or transfer of the unit, the —entire —assistance amount will be due and payable. In addition, theCity will share in he -gain realtzedby the borrower according to the following schedule: e. 0 to 3 years — 100% of theCity's pro reta share of thega►,n generated. b. 3 — 30 years —On the 3nd year, City receives%of the=City'sp: o rata ti share of the gain generated and —borrower —receives t6%. 'Thereafter, \ the borrower receives additional'% of theCity's prorate share per year \ reducing theCity's share by the same percentage. 3. The a ve gain sharing proposal will terminate in foreclosure; however, the city wil laquire lenders to provide us a right of first fetusalto•p rchase the loan at a negotiated price. In the event of e fo = losure, provides the City Manager or his designeethe authority to exercise be right of first refusal to negotiate and.execute a purchase agreement with the lenlder. Minimum Maximum Subsidy $1,000 $40,000 Affordability Period 30 Years Security Affordability period and equity haring lobe enforced by a restrictive covenant that will run with the land as well as mortgage Developer Fee Minimum down ,Payment Minimum ratio of City ,funds to other funds in the project Type of Assistance N/A 4500.-00 Down payment •assistance,\ nd closingsts Maximum Purchase PriceNalue of Property 4236;000.40\ •Revised 04-1&06 City of Miami Department ofCommunity Development Housing Program 'Summary HOMEOWNERSHIP POLICY -DEVELOPERS '5i.(..-)S) .Clktt.i_. e7 1. Program Description Provides assistance to developers for the•oonstruction of new affordable homeownership units. The units .can be condos. townhomes. or single family scattered site developments. Funding HOME, SHIP, COBG. AHT 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: T 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. . Minimum/Maximum Subsidy $1,000 per unit to HUD Maximum subsidy cap as published based on bedroom size. AffordabilityPeriod 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 property. Upon.completion of There will be a restrictive covenant and the on mortgage r the project, the total debt to the developer is transferred in prorate share to each assisted unit. In the event of a-developerdefault-the restrictive covenant will remain on the property and applicable interest rates will be due. Developer Fee i Up tole% of total project costs. Disbursements based on percentage of consstruotion completion. Service Charge 1% of City Loan with a maximum of $15,000 will be due and payable as good faith commitment fee for for -profit -developers. 30days after funding approval. Minimum Ratio of City Funds to other Funds in the Project 1:2 Desirable on a project by project basis Type of Assistance Construction hard costs and soft costs or set aside for homebuyer assistance after completion. Maximum Purchase Price/Value of Property $236.000:00 Miscellaneous 1. Income of buyers must be at orbetow 80% of Area Median Income as published by HUD !up to 120%•of AMI for SHIP funds: up to 150% for AHT funds) City of Miami Department of Community Development Housing Program Summary HOMEOWNERSHIP POLICY — DEVELOPERS 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. Funding HOME, SHIP, CDBG, AHT Repayment Requirements Forgivable`t,oan converted to second mortgages for -the -buyers once project is completed. In,the case of a Developer default (incomplete project) full payment of construction ben 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, Forgivable laan'ayfter the affordability period of 30 years 2. In the case of sale\pr transfer of the unit, the City will share in the gain realized by the borrower. a. 0 to 3 years—100%\of the City's pro rata share of the gain generated. b. 3 - 30 years — On the 3r4 year, City receives 85% of the City's pro rata share of the gain generated and borrower receives 15%. Thereafter, the borrower receives additi al 5% of the City's prorate share per year reducing the City's share the same percentage. The above gain sharing proposal will terminate in foreclosure; however, the city will require lenders to provide us a right of fiat refusal to purchase the loan at a negotiated price. Minimum/Maximum Subsidy ° $1,000 per unit to HUD Maximum subsidy cap � published based on bedroom size. AffordabilityPeriod 30 year affordability period for the second mortgages,, The second mortgages will be at same terms and conditions as that for direct subsidjito buyers at the time of closing. 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 due. Developer Fee p Up to16% of total project costs. Disbursements based on percentage of construction completion. Service Charge g 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. Minimum ratio of City funds to other funds In the project 1:2 Desirable on a project by project basis Revised 04-10-06 Type of Assistance Construction hard costs and soft costs or set -aside for homebuyer 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 HUD (up to 120% of AMI for SHIP funds; up to 150% for AHT funds) Revised 04-10-06