HomeMy WebLinkAboutExhibit AC444 Department of
Housing
& Community
Development
City of Miami
Infill First -Time Homebuyer Expanded Program Guidelines
Program Objective: To assist in creating generational wealth; to provide long-term housing support;
and to encourage economic stability.
Source of Funding: American Rescue Plan Act (ARPA) funds and/or City of Miami Forever Bonds (MFB)
Income Limits: Up to 120% per household size. Current year's income limits are below or may be downloaded
from: www.miamigov.com/incomelimits
2024 - Income Limits*
Household Size
1
2
3
4
5
6
7
8
120% of Area
Median
Incom e
$95,400
$108,960
$122,520
$136,200
$147,120
$158,040
$168,960
$179,880
Eligible Properties:
Eligible Borrowers:
Maximum
Sales Price:
Maximum
Assistance:
Loan Terms:
*Last Update: April 2024.
Single Family Residences, Twin homes, Townhomes or Condominiums
Must be a property developed by the City of Miami
Must not have previously owned a home.
Household income complies with the "Income Limits" detailed above.
Must be able to afford a monthly payment based on debt -to -income ratio
calculations.
Must contribute at least five hundred dollars ($500) of personal funds
towards down payment /closing costs.
Must attend and successfully complete United States Department of Housing
and Urban Development approved housing counseling workshop.
To be determined by the City of Miami; not to exceed the total development cost of the
property.
The City will then provide up to Two Hundred Thousand Dollars ($200,000) in the form
of a forgivable second or third mortgage with a thirty (30) year term.
• 0% interest non -amortizing.
• Deferred payment 30-year loan.
• Payment of principal will be forgiven at the end of maturity period provided that
the homeowner resided in the home as their primary residence and complies with
the terms of the loan documents throughout the mortgage's term.
• The City shall have the right of first refusal for any encumbered property that is
sold or otherwise conveyed during the mortgage's term.
Security: • The loan will be secured by a recorded mortgage on the property.
1 Date: 5/2024
First Mortgage
Restrictions:
Department of
HousinIC:IiD g
& Community
Development
Cmity of Miomi
• Term of the loan must be 30 years with a fixed interest rate and cannot exceed
more than 150 basis points over Freddie Mac's weekly average 30-year rate, as published
in the Primary Mortgage Market Survey ("PMMS"); no prepayment penalties; total
percentage charged for Discount, Origination & Broker fees must not exceed 2 points; all
other lending fees must be reasonable and cannot exceed $500 or 0.5% of the loan
amount, whichever is greater.
• The applicant will be required to secure a first mortgage in an amount that would
result in a total payment, inclusive of principal, interest, taxes and insurance, cqual up
to thirty percent (30%) of the Applicant's total gross household income.
Other • Applicant must reside in the purchased home at all times. The loan will be due at
Restrictions: sale, transfer of property or if the home ceases to be the main residence of the Applicant.
The property must become their owner -occupied homesteaded property, and there is to be
only one application per household. The Applicant may not lease the Property, or any
portion thereof, during the term of the mortgage.
Resale Restrictions:
If the Applicant sells and/ or transfer the house before the end of the City 's mortgage term,
the following provisions will apply:
1) The Borrower will be required to repay the original amount given as assistance.
2) The City shall share in any `gain' realized, based on its pro -rated share of
participation in the original purchase. Furthermore, if the sale occurs within the first 3
years, the City shall keep 100% of its pro -rated share of the `gain', from year 3 up to year
20, the City's share of its pro -rated `gain' shall decrease by 5% every year, while in turn,
the owner's share shall increase by 5% each year. At year 20, up to the City's loan maturity,
the owner shall retain 100% of the City 's `gain'.
3) This above share gain proposal terminates in the event of a foreclosure, with the
lender required to provide the City the right of first refusal to purchase the loan at a
negotiated price. In the event of a foreclosure, the City will recapture any amount of net
proceeds available from the sale of the property.
2 Date: 5/2024