HomeMy WebLinkAboutExhibit 1EXHIBIT "A"
City of Miami
Department of Community Development
Housing Program Summary
Homeownership Policy — Buyer
RESOLUTION 08 0495
SEPTEMBER 11, 2008
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. 08-0495
(No Change)
Funding
HOME, SHIP, CDBG, AHTF
Same as Resolution No. 08-0495
(No Change) n
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 3rd 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
4. In the case of a foreclosure the City
will recapture any amount of net
proceeds available from the sale of
the property.
1. In transfer the the
the cast of of property,
borrower be to the unit to
will required sell
income borrower approved by
an eligible
the City.
In the case of sale or transfer of the
property, the borrower will be required to
repay the original amount given as
assistance.
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 3rd 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
4. In the case of a foreclosure the City will
recapture any amount of net proceeds
available from the sale of the property.
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EXHIBIT "A"
City of Miami
Department of Community Development
Housing Program Summary
Homeownership Policy — Buyer
Minimum / Maximum Subsidy
$1,000 / Basic Subsidy based on
the number of bedrooms as
annually determined by HUD
under Section 221(d) (3) and
234. (See table below)
Same as Resolution No. 08-0495
(No Change)
Affordability Period
30 years
Same as Resolution No. 08-0495
(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. 08-0495
(No Change)
Development Fee
N/A
Same as Resolution No. 08-0495
(No Change)
Minimum Down Payment
$500
Same as Resolution No. 08-0495
(No Change)
Minimum Ratio of City Funds to'
other Funds in the Project
N/A
Same as Resolution No. 08-0495
(No Change)
Type of Assistance
Down payment assistance and
closing costs
Same as Resolution No. 08-0495
(No Change)
Maximum Purchase Price / Value
of Property
$236,000
Maximum Purchase Price not to •
exceed 95% of median purchase price
for the area as annually determined
by HUD (See table below)
Subsidy Limits*
Number of bedrooms
0
1
2
3
4
Basic Subsidy
$48,328
$55,722
$67,202
$86,020
$95,830
Purchase Price / After -Rehabilitation Value Limits
Effective January 1, 2011
Miami -Dade County : 95% of Median Limits
$190,000.00
*This was based on the Basic Statutory Mortgage Limits established in 2008
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