Ordinance 2001-064ORDINANCE NO. 2001
AN ORDINANCE OF COLLIER COUNTY, FLORIDA
AMENDING THE COLLIER COUNTY CODE OF
LAWS AND ORDINANCES, AS AMENDED AND
CODIFIED BY COLLIER COUNTY ORDINANCE
NO. 2000-69, AMENDING VARIOUS SECTIONS OF
ARTICLE V. OF CHAPTER 114, PERTAINING TO
COLLIER COUNTY'S S.H.I.P. DOWN PAYMENT &
CLOSING ASSISTANCE PROGRAM; AMENDING
THE POLICY GUIDELINES AND ADMINISTRATIVE
PROCEDURES TO INCREASE THE PROGRAM
LOAN AMOUNT TO $7500; PROVIDING FOR
INCLUSION INTO THE CODE OF LAWS AND
ORDINANCES; PROVIDING FOR CONFLICT AND
SEVERABILITY; PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the Florida State Legislature enacted the William B. Sadowski
Affordable Housing Act on July 7, 1992 (the "Act"), Section 420.907, et seq., as a
comprehensive funding package for state and local housing programs to better
enable local governments to meet their responsibilities for affordable housing in
accordance with their comprehensive plans; and
WHEREAS, pursuant to the Act, the State has allocated a portion of new and
existing documentary stamp taxes on deeds (the "SHIP" funds).to local
governments for development and maintenance of affordable housing; and ~,~
WHEREAS, Collier County (the "County") has adopted Ordinance No~93-10, as'
amended, providing for a Local Housing Assistance Plan; and r.--
WHEREAS, the County by County Ordinance No. 94-59 adopted a
Payment/Closing Cost Assistance Program consistent with the Local Housing
Plan; and
Down
WHEREAS, the County, by County Ordinance No. 2000-69 amended the Down
Payment/Closing Cost Assistance Program; and
WHEREAS, the provisions of the above-referenced ordinances have been
codified as part of Article V of Chapter 114 of the Collier County Code of Laws
and Ordinances; and
WHEREAS, the County desires to amend the codified Down Payment/Closing
Cost Assistance Program provisions to better function in the home lending
environment;
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NOW, THEREFORE, BE IT ORDAINED BY THE BOARD
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that:
OF COUNTY
SECTION ONE. Section 114-91 of Article V of Chapter 114 of the Collier County
Code of Laws & Ordinances, as amended, is hereby amended to read as follows:
"Sec. 114-91. Introduction.
In April of 1993, the Local Housing Assistance Program,
(Collier County Ordinance No. 93-19, as amended by Ordinance
No. 93-33) was adopted by the Collier county Board of
Commissioners. This plan was designed for the purpose of
establishing local administration of the State Housing Initiatives
Partnership Program. (S.H.I.P.)
The primary goal of this legislation is to in-crease the
availability of affordable housing to very Iow and Iow-income
persons and families in Collier County.
Very Iow and Iow income persons are defined is Collier
County Ordinance No. 93-19, and further amended by Collier
County Ordinance No. 93-31 as follows:
(1)
Low-income person means one or more natural persons or a
family, not including; students, that has a total adjusted
gross household income that does not exceed 80 percent of
the median annual adjusted gross income for households
within the state or 80 percent of the median adjusted gross
income for households within the metropolitan statistical
area or, if not within a metropolitan statistical area, within the
county, whichever is greater...--~p~l~
(2)
Very-low income person means one or more natural persons
or a family, not including students, that has a total adjusted
gross household income that does not exceed 50 percent of
the median adjusted gross annual income for households
within the state or 50 percent of the median annual adjusted
gross income for households within the metropolitan
statistical area or, if not within a metropolitan statistical area,
within the county, whichever is greater --, ~
..... ~ I"" ""'/'
Income data for the Naples Metropolitan Statistical Area is
supplied by the United States Department of Housing and Urban
Development (IFIUD), applicable to all of Collier County, and
updated annually. The definition for "annual in-come" is found in
24 CFR, Section 813.106.
Section IV of the Local Housing Assistance Program states
that several different strategies will be employed for the
administration and disbursement of S.H.I.P. funds. Strategy 13,
found on page 11 stipulates that a portion of the funds be
distributed through a down payment/closing cost assistance
program for very Iow and Iow income first time homebuyers. This
strategy is more particularly described in Section VII C., paragraph
a. The Collier County S.H.I.P. Down Payment/Closing Cost
Assistance Program has been designed using this strategy as a
framework, and conforms to all rules and guidelines governing the
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distribution of these funds.
Assistance provided in conjunction with this program will be
awarded to qualified applicants in the form of a zero percent
interest, deferred payment loans of up to.,... , ....... ....'= c nnn nn $7,500.00 for
the purpose of down payment/closing cost expenses and reha-
bilitation or emergency repairs to the subject dwelling unit. The
note, with a total of up to.....,.........v...¢~ nnn nn $7,500.00 will be secured by a
second mortgage payable to the Affordable Housing Trust Fund,
Fund 191, payable upon the sale of the dwelling unit, refinance, or
loss of homestead tax exempt status."
SECTION TWO. Section 114-93 of Article V of Chapter 114 of the Collier County
Code of Laws & Ordinances, as amended, is hereby amended to read as follows:
"Sec. 114-93.
Eligibility criteria; down payment/closing
cost assistance.
(a) Applicants will be recommended for this program
through participating members of the Collier County Banking
Partnership, and other non-profit organizations committed to
meeting the credit and housing needs of the entire community.
Additionally, S.H.I.P. guidelines stipulate that the program and
availability of funds be advertised in both newspapers of general
circulation and periodicals serving ethnic and diverse backgrounds.
........................................ u,.,u ........ will
.......,..,"'"' ..... ,,'"', ....6"' ....,,~"';"'",,~, tho Aapplicants_ will be pre-screened by
participating lenders in regards to total annual household income,
credit history, and capacity to repay. Applicants will be asked to
sign appropriate releases enabling the financial institution to
provide such mortgage related information to the Collier County
Department of Housing and Urban Improvement. Evide~
h~--,.=,,-~ ~,.,~ ~,-,,-,~ ; ............ ~, ...... ,;,,~,, .... ;' ~'~" ~'" required
(c) Applicant eligibility. Applicants will be required to
disclose the number of occupants expected to reside in the
subsequent dwelling unit, as well as their anticipated gross annual
incomes. Eligibility will be based on the following set limits for gross
annual income based on median figures established in January of
2000, provided by the U.S. Department of Housing and Urban
Development (HUD):
1
2
3
4
5
6
7
8
person .................................. $33,100.00
persons .................................. 37,800.00
persons .................................. 42,550.00
persons .................................. 47,300.00
persons .................................. 51,050.00
persons .................................. 54,850.00
persons .................................. 58,650.00
persons .................................. 62,400.00
The above limits are reflective of the maximum income allowed;
adjusted for family size, under the designation of Iow income
household. These limits are subject to change on an annual basis.
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(d) Dwelling unit restrictions. This program is designed to
assist in the purchase of single-family houses, duplexes, or
condominium units only. The maximum sales price allowable will be
~ $130,000.00 for existing homes and ~n~'~nn
~130,00.00 for new construction, or as amended by the state of
Florida S.H.I.P. regulations. Beneficiaries must claim the subject
dwelling unit as their homestead.
(e) First time homebuyer status. In order to qualify for the
program, applicant(s) must not have owned a home for a minimum
of the most recent three consecutive years. Verification of first time
homebuyer status will be documented in the participant(s)
permanent file."
SECTION THREE. Section 114-95 of Article V of Chapter 114 of the Collier
County Code of Laws & Ordinances, as amended, is hereby amended to read as
follows:
"Sec. 114-95. Required documentation
payment/closing cost assistance.
for down
(a) The following documentation will be required of all
beneficiaries of this program. Documentation required for
rehabilitation emergency repair assistance will be detailed in the
following section. Packets will be available through the county
department of housing and urban improvement and at local
lending institutions.
(1)
Sa/es contract. A copy of the fully executed sales
contract and loan application (Fannie Mae) will be
required from the applicant(s). The sales contract will
verify the listed seller, sales price, and proposed closing
date. The sigP, ed application will establish borrower
information that will be further verified by other
supporting loan documentation. A copy of the sales
contract and application will be maintained in the
borrowers permanent file.
(2)
Reservation form. Requests for reservation of funds will
be made by the first mortgage lender through the use of
this document. Information contained in the form relates
to the borrower(s), financial institution and subject
dwelling unit. It will be the responsibility of the first mort-
gage lender to provide a completed copy of this form to
the county department of housing and urban
improvement in order to initiate the qualification
process. A copy of the reservation form will be
maintained in the borrower's permanent file.
(3) Certification of financial institution. The officer of the
financial institution underwriting the first mortgage loan
will be required to execute this combined form before a
notary public. The following in-formation will be verified
through the use of this form:
a. Current annual family income.
b. That all information regarding the applicant is
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true and correct.
c. That processing fees and closing costs paid by
the mortgagor are reasonable and customary.
That all loan funds will be applied to the required
down payment/closing cost or rehabilitation
repair, and that the borrower not receive any loan
funds in cash.
A copy of the combined certification of
participant/certification of financial institution will be
maintained in the borrower's permanent file.
(4)
Mortgagor's certification and past residence.
Applicant(s) must not have owned any home for a
minimum of three consecutive years in order to
qualify as first time homebuyers. This document
can be used as verification of residence for the past
three years, as well as providing information
regarding current amount of rent, and current
landlord. A copy of the mortgagor's certification and
past residence will be maintained in the borrower's
permanent file.
(5)
S.H.I.P. income certification. This form is required
documentation for any program utilizing the S.H.I.P.
monies as a funding source. Information contained
herein relates to anticipated household income,
assets, and household data. A copy of the S.H.I.P.
income certification form will be maintained in the
borrower's permanent file.
Affidavit of no income change. Pdcr tc c:G,-,:,-,g thc
,,,,,,-,,~,.,, .... ,,, ,h,, h ........ "'"'°~ ...... *"' If the
applicant's closing date is more than sixty (60) days
after the date of S.H.I.P. approval then the borrower
must execute this form in order to verify that there
has been no increase in household income since
originally qualifying for buyer assistance through this
program.
(7)
Promissory note. The promissory note will detail the
loan agreement established between the borrower
and the Affordable Housing Trust Fund, relating to
the funds for down payment/closing cost assistance
and rehabilitation/emergency repair. The note will
include details of the loan including, but not limited
to:
a Borrower's promise to pay;
b. Interest and payments;
c. Borrower's right to repay;
d. Charges;
e. Subordination;
f. Borrower's failure to pay as requested;
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g. Obligation of persons under this note;
h. Waivers;
Uniform secured note;
........ , ,a,=, The original promissorg note is to be maintained
on file in the county's department of housing and urban
improvement, and a copy will be maintained on file in the county's
finance department.
(8)
Second mortgage. The second mortgage will be
used as the security instrument for the promissory
note, and will be recorded by the Collier County
Clerk of the Circuit Court. The original recorded
second mortgage will be held in the borrower's
permanent file, in the Collier County Department of
Housing and Urban Improvement. Payment of fees
associated with the recording of this document will
be the responsibility of the borrower.
(9)
Third party verification. Third party verification of
income will be necessary whenever the applicant
states that any part of the household income is
derived from public assistance, a government
agency, ;,',,- ...... '~"'~*;'"'" assets, or for formal
verification of employment. The following sources of
income will require formal third party verification by
the financial institution underwriting the first
mortgage loan:
Including but not limited to, military payment, social security
benefits, public assistance, pension and annuities, unem-
ployment benefits, Veterans Administration benefits,
educational assistance, income from business, recurring
cash contributions, cl'iild support, and assets on deposit.
(b) This income verification information maybe
represented on either Collier County S.H.I.P. forms or other
documentation supplied by the lender used for underwriting
purposes. While formal, written third party verification is always
preferable, a memorandum to the file documenting the
conversation with the third party will be acceptable. In such a case
it is extremely important to specify the date, contact person,
phone number, and address of the third party the conversation is
conducted with."
SECTION FOUR. Section 114-97 of Article V of Chapter 114 of the Collier
County Code of Laws & Ordinances, as amended, is hereby amended to read as
follows:
"Sec. 114-97. Monitoring of rehabilitation emergency repair work
including goods purchases.
(a) Information regarding the nature of the
rehabilitation/emergency repair work to be performed or goods to
be purchased will be compiled by the homebuyer. Abatement or
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correction of health and safety housing code violations are to be
given priority over any rehabilitation work, addition of living space,
or goods purchase.
(b) For goods identified to be purchased, the borrower
must submit a price quote to the county housing and urban
improvement department for approval prior to purchase. (3~me
~ This estimate is to be approved b~ the borrower and a
representative from the HUI Depadment prior to purchase or
deliver. Therea~er, the housing and urban improvement
depadment may inspect the borrower's home for the approved
goods to provide reasonable assurance that the approved goods
were delivered and are in good working order. No funds will be
disbursed prior lo verification by the depadment housing and ur-
ban improvement and inclusion of an itemized delive~ slip or
invoice from the approved goods supplier.
(c) Rehabilitation/emergency repair work.
(1)
For rehabilitation/emergency repair work not
requiring a building permit, the borrower has the
option to either perform the rehabilitation work as an
owner/builder, or to contract with a tradesman
holding a certificate of a competency in the specific
trade corresponding to the type(s) of rehabilitation
work be to performed.
(2)
For work requiring a building permit the borrower will
be responsible for the selection of a licensed
contractor who must perform the
rehabilitation/emergency repair work.
The contractor or tradesman who is selected must supply a
detailed written estimate to the borrower ~.,.,,.,m;,.,;,,~ ............ ~ an
(3)
Borrowers performing their own rehabilitation repair
work must also submit a detailed cost estimate of
materials to be purchased which must be approved
by the county's department of housing and urban
improvement prior to commencement of
rehabilitation work.
(4)
A copy of the approved estimate will be maintained
in the borrower's permanent file. Monitoring of the
work to be performed by a tradesman or contractor
will be the responsibility of the borrower. Contractual
agreements made will be between the borrower and
tradesman contractor. The county's department of
housing and urban improvement will be provided
with a copy of the signed contract and approved
estimate for rehabilitation/emergency repair work,
which will be maintained in the borrower's
permanent file.
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(5)
(6)
Upon completion, any work requiring a building
permit to be performed will be inspected by the
county permitting and review department. All work
performed not requiring a building permit and not
requiring an inspection by the county permitting and
review department may be inspected by the housing
and urban improvement department to provide
reasonable assurance that such work has been
satisfactorily completed.
No funds will be disbursed prior to verification of
satisfactory completion of rehabilitation/emergency
repair work by the county's building and review or
housing and urban improvement department and
inclusion of an ~ final invoice from a material
or goods supplier and/or contractor or tradesman
submitted to the county housing and urban
improvement department."
SECTION FIVE. Section 114-98 of Article V of Chapter 114 of the Collier County
Code of Laws & Ordinances, as amended, is hereby amended to read as follows:
"Sec. 114-98. Required documentation for
rehabilitation/emergency repair including goods
purchases.
(a) The following documentation will be required of
all participants eligible, for rehabilitation/emergency repair
loans:
(1)
Contractor/tradesman's, or materials, or goods
purchase estimate. All work that is to be
performed must be listed on this .f.orm. detailk~
copy of the approved estimate will be
maintained in the borrower's permanent file.
This form must be delivered to a representative
of the county's department of housing and ur-
ban improvement prior to the commencement
of any rehabilitation/emergency repair work.
Rehabilitation/emergency repair loans under
this program will be made up to a maximum of
$2,500.00.
(2)
Physical inspection. A copy of all required
physical inspections conducted by the county
permitting and review, or housing and urban
improvement department will be maintained in
the borrower's permanent file. A copy of these
inspections will be provided to the county
finance department.
Second mortgage. As described in the section
detailing documentation required for down
payment/closing cost assistance, the second
mortgage will be used to secure
the promissory notes. The second mortgage
will be recorded by the Collier County Clerk of
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the Circuit Court. The original recorded second
mortgage or evidence the second mortgage
was recorded will be maintained in the
borrower's permanent file in the county's
department of housing and urban
improvement. Fees associated with the
recording of this document are to be paid by
the borrower."
SECTION SlX. Section 114-99 of Article V of Chapter 114 of the
Collier County Code of Laws & Ordinances, as amended, is hereby
amended to read as follows:
"Sec. 114-99. Procedure of loan closings and the
disbursement of funds.
(a) The lender underwriting the first mortgage will
make a formal request for the reservation of S.IH.I.P. funds
by contacting the Collier County Department of Housing and
Urban Improvement. Reservation requests should be made
a minimum of thirty days prior to the contract closing date,
and substantiated through the use of the Reservation Form
detailed in the section describing required documentation. At
this point, funds will be reserved, and the applicant will be
assigned a file number. It will be asked that all completed
Program documentation be provided for the purposes of
verifying the applicant's eligibility, and to initiate the
disbursement process.
(b) The Collier County Purchasing Department will be
notified of the request for funds through a requisition, and a
separate Purchase Order will be issued for each borrower.
Loan funds for Down Payment/Closing Cost Assistance will
be issued in the form of two payee checks, payable to the
borrower/closing agent. Receipt of these funds will be
verified by the closing agent, and further evidenced on the
formal Settlement Statement, a copy of which will be
maintained in the borrower's permanent file. Copies of all
down payment assistance checks issued are to be kept in
the borrower's permanent file.
Funds disbursed for Rehabilitation/Emergency Repair will b._~e
disbursed to the contractor, tradesman, business
establishment, or homeowner only after submission of the
invoice and a satisfactory inspection report, if required.
(c) A representative of the Collier County Department
of Housing and Urban Improvement will be present at loan
closings whenever possible. The representative will verify
that all mortgage and supporting documents have been exe-
cuted properly, and that the second mortgage be recorded
by the Collier County Clerk of the Circuit Court. The
recorded second mortgage or evidence of recordin.q, will
then be kept on file in the Collier County Department of
Housing and Urban Improvement. The completed borrower's
file will contain copies of all documentation received from the
first mortgage lender in addition to the S.H.I.P. funds
provided by this program, for the purposes of establishing a
complete audit trail."
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SECTION SEVEN. CONFLICT AND SEVERABILITY.
In the event this Ordinance conflicts with any other Ordinance of Collier
County or other applicable law, the more restrictive shall apply. If any phrase or
portion of this Ordinance is held invalid or unconstitutional by any court of
competent jurisdiction, such portion shall be deemed a separate, distinct and
independent provision and such holding shall not affect the validity of the
remaining portions.
SECTION EIGHT.
INCLUSION IN THE CODE OF LAWS AND
ORDINANCES.
This Ordinance shall be made a part of the Code of Laws and
Ordinances of Collier County, Florida. The sections of the Ordinance may be
renumbered or relettered to accomplish that result, and the word "Ordinance"
may be changed to "Section," "Article," or any other appropriate word.
SECTION NINE.
EFFECTIVE DATE.
This Ordinance shall be effective upon filing with the Florida Department
of State. '
PASSED AND DULY ADOPTED by the Board of County Commissioners
of Collier County, Florida this,/,~;;O day of "~~ 2001.
ATTEST:
Dwight E. Brock, Clerk
Deputy Cler~,'
Att. est &~ to Chatr'~n'$
Approved as ~o form
and legal sufficiency:
Patrick G. ~ite,
Assistant County A orney
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FL.~/~I?A
James D. Carter, Ph.D., Chairman
This ordlnonce flied with the
S~cr~etary of State's Office the
IV--_ dw of
a~ acknow~edgemeDt,..~,/ th~
fllin," ~aivecl .thiseLY ~ c~zy
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STATE OF FLORIDA)
COUNTY OF COLLIER)
I, DWIGHT E. BROCK, Clerk of Courts in and for the
Twentieth Judicial Circuit, Collier County, Florida, do
hereby certify that the foregoing is a true and correct
copy of:
ORDINANCE 2001-64
Which was adopted by the Board of County Commissioners
on the 13th day of November, 2001, during Regular Session.
WITNESS my hand and the official seal of the Board of
County Commissioners of Collier County, Florida, this 14th
day of November, 2001.
DWIGHT E. BROCK .~...% '::,:;.
Clerk of Courts and
Ex-officio to Board
County Commissioner~Z
· ; -. .~{.,,,. /~:,,:
By: Ellie Hoffman, ~";"~ ~' ~'~''
Deputy Clerk