HomeMy WebLinkAboutExhibit ADISTRICT 1 SINGLE FAMILY CODE COMPLIANCE
ELDERLY LOAN ASSISTANCE PILOT PROGRAM
Program Description:
The District 1 Single Family Code Compliance Loan Assistance Pilot Program (the Program)
is designed to assist City of Miami elderly homeowners correct outstanding code compliance
violations.
Eligible Properties:
• Single family residence (one unit);
• Town homes;
• Duplex
• Property must be located in the City of Miami within District 1 boundaries
Type of assistance:
• Correction of code compliance issues pertaining to the physical structure, interior of
the property.
Maximum Tax Assessed Market Value:
• Property must not exceed the maximum tax assessment as required by the Senior
Citizen Exemption.
Eligible Owners
• Households with income in accordance with the requirements of the Senior Citizen
Exemption
• Elderly homeowners (65 years of age minimum)
• Active Homestead exemption
• Active Senior Citizen Exemption
• Live at assisted home for 5 years or grater
• Ability to afford their current monthly debt obligations
• Must be current in their mortgage, insurance and taxes
Source of Funding District 1 Anti -Poverty Initiative Funds
Loan Terms:
• Amount of Assistance — Up to $30,000/home
• 3% non -amortizing
• Deferred payment 10-year loan
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• 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.
• Principal amount shall be forgiven at a rate of 1/10 per year of the assisted owner
occupying the home
• Failure to occupy the home during the 10-year affordability period will result in the
repayment of the loan.
• Loss of Senior Citizens Exception
Underwriting Ratios:
• 60% Total debt to income ratio.
• CLTV of 150% (Combined Loan to Value ratio)
Security: The loan will be secured by a second mortgage lien on the property.
Restrictions: Applicant must reside in the assisted unit at all times. All principal and accrued
interest will be due on sale, transfer of the property or if the unit ceases to be the main
residence of the applicant. In the case of a refinancing, the City Manager or his/her designee
will determine the amount that has to be paid on such refinancing.
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