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HomeMy WebLinkAboutProgram GuidelinesIncome Limits: Snapshot of Single Family Rehabilitation Program Guidelines Current year's income limits may be downloaded from: www.miamigov.com/communitydevelopment City of Wool :Deport -new of Community Developrneft 2010 - Income Limits Household Size 1 2 3 4 5 6 7 8 80% of Median Income $39,400 $45,000 $50,650 $56,250 . $60,750 $65,250 $69,750 $74,250 Eligible Properties: Eligible Repairs: Eligible Owners: Maximum Tax Assessed Market Value: Loan Terms: Underwriting Ratios: Security: Other Restrictions: • Single Family Residences (one unit); • Townhomes; • Condominiums; • Property must be located in the City of Miami; All repairs necessary to bring the house to a decent, safe and sanitary condition. The following are the eligible trade areas: Plumbing, Electrical, Roofing and Structural. In accordance to the City of Miami Single-family Programs Policy & Procedures Manual, the single-family rehabilitation program does not finance additions to existing buildings or projects that require a change to the Certificate of Occupancy. • Household income less than or equal to 80% of the area median income adjusted for family size. • Must be able to afford a monthly payment based on income and debt; Property must not exceed the maximum tax assessed market value of $300,000 for the home to qualify. • Amount of Assistance: Up to $35,000. • 3% non -amortizing; • Deferred payment 10-year loan; • Payment of principal and accrued interest will be forgiven at end of the loan term if the homeowner continues to own and reside in the property. 60% total debt to income ratio. 150% combined loan to value ratio. The loan will be secured by a second mortgage on the property. Applicant must reside in rehabilitated unit at all times. All principal and accrued interest will be due at sale, transfer of property or if the unit ceases to be the main residence of the applicant. In the case of refinancing, the City Manager or his/her designee will determine the amount that has to be paid on such refinancing. Applications should be mailed to: Single Family Programs Department of Community Development 444 SW 2nd Avenue, 2nd Floor Miami, FL 33130 Revised on 5128/10 (SG) SINGLE FAMILY REPLACEMENT HOME Program Description: The Single Family Replacement Housing Program is designed to address substandard and dilapidated housing units that the cost of repairs cannot be addressed through the Single Family Rehabilitation Programs. It involves the demolition and reconstruction of a new 3 bedroom 2 bath house on the same lot. Source of Funding: SHIP Maximum Assistance: $150,000 Eligible Costs: All soft and hard costs relating to the construction of the new home is eligible. In addition, relocation, moving and storage charges can also be paid out of the loan proceeds. Eligible Properties: • Single family owner -occupied units in the City of Miami with major structural defects that cannot be rehabilitated. • Must be free and clear of all liens and mortgages, except City of Miami municipal liens. • Properties with first mortgages, will qualify for replacement only if the Department is able to secure additional funding to pay off the first mortgage and the homeowner can afford the monthly payment associated with the new mortgage or the first mortgage lender subordinates to the City. Eligible Owners • Households with income Tess or equal to 80% of median income adjusted for family size. • Preference is given to elderly homeowners • Ability to afford their current monthly debt obligations • Must be current in their mortgage, insurance and taxes. However, one year insurance and taxes can be paid from the loan proceeds. 1 Loan Terms: Maximum Loan: $150,000 Interest Rate: 0 — 3% based on household income Terms: 30 years. Underwriting Ratios: 60% Total debt to income ratio. CLTV of 150% (Combined Loan to Value ratio) if applicant has a first mortgage Security: The loan will be secured by a first mortgage lien the property. Restrictions: Principal and all accrued interest will be due on sale or transfer of the property prior to loan maturity. In the case of a refinancing, the City Manager or his designee will determine the amount that has to be paid on such refinancing. 2