Ordinance 2005-70
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AN ORDINANCE OF THE BOARD OF COUNTY ~e-l 4~
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, l'ta.I.O\,ø
AMENDING CHAPTER 114, ARTICLE III OF THE CODE
OF LAW AND ORDINANCES DERIVED FROM ORD. NO.
93-19, AS AMENDED, PERTAINING TO THE STATE
HOUSING INITIATIVES PARTNERSHIP (SHIP)
PROGRAM; UPDATING THESE PROVISIONS TO
REFLECT CURRENT PRACTICES, ORGANIZATIONAL
CHANGES, AND REQUIRING HOME INSPECTION~7:
PROVIDING FOR CONFLICT AND SEVERABILITY;
PROVIDING FOR INCLUSION IN THE CODE OF LAWS
AND ORDINANCES; AND PROVIDING FOR AN
EFFECTIVE DATE.
Ordinance No. 2005---20
.J
,
WHEREAS, the Florida State Legislature enacted the William B. Sadowski
Affordable Housing Act on July 7, 1992 (the "Act"), Section 420.907, et seq.,
Florida Statutes, Chapter 91-37, Florida Administrative Code, 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 has adopted Ordinance No. 93-19, as amended,
providing for a Local Housing Assistance Plan which is codified in Chapter 114 of
the County's Code of Laws and Ordinances Code of Laws; and
WHEREAS, the County, in Ordinance No. 94-59, as amended, adopted a
Down Payment/Closing Cost Assistance Program consistent with the Local
Housing Assistance Plan which is codified in Chapter 114 of the Code of Laws;
and
WHEREAS, the County desires to amend the Down Payment/Closing Cost
Assistance Program to better function in the current market conditions of the
County.
NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA that:
SECTION I:
AMENDMENT OF PORTIONS OF CHAPTER 144.
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The following Articles and Sections of Chapter 114 of the Code of Laws and
Ordinances are amended 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 increase in crease the availability
of affordable housing to very low and low-income persons and families in the
county.
Very low and low income persons are defined in 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.
(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.
Income data for the Naples Metropolitan Statistical Area is supplied by the
United States Department of Housing and Urban Development (HUD IFIUD),
applicable to all of Collier County, and updated annually. The definition for
"annual income" is found in 24 CFR, Section 813.106.
Section tv !! 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.:1-ð A, found on page 4-1- º stipulates that a portion of the
funds be distributed through a down payment/closing cost assistance program for
very low and low income first time homebuyers. This strategy is more particularly
described in Section v.u 11. G:-, paragraph a 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
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 $50.000 $15,000.00 for the purpose of down payment/closing cost
expenses and rehabilitation or emergency repairs to the subject dwelling unit.
The funds will be distributed as follows: Purchasers of new homes which have
had a certificate of occupancy for less than 12 months at time of application will
not qualify for the rehabilitation/emergency repair under this program, but will be
eligible for down payment/closing cost assistance of $50.000 $15,000.
Purchasers of existing homes with a certificate of occupancy over 12 months at
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time of application will qualify for the rehabilitation/emergency repair of $2,500
under this program along with the down payment/closing cost assistance of
$47,500 $12,500. The note, with a total of up to $50,000 $15,000.00 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.
Sec. 114-92. Marketing; outreach.
(a) At least 30 days prior to the beginning of the application period, the county
will advertise this program in both newspapers of general circulation and
periodicals serving ethnic and diverse neighborhoods. It is anticipated that
the vast majority of referrals for this program will be generated by non-
profit organizations such as the Collier County Banking Partnership, or
through local banks and mortgage brokers.
(b) In order to comply with the Community Reinvestment Act, local area
lending institutions are actively seeking ways in which to address the credit
needs of the entire community. Ownership programs such as this serve as
an appropriate vehicle for lenders to demonstrate their commitment to this
legislation. As some participating institutions may exercise more flexible
lending requirements than others, it is also possible for the partnership to
act as an internal referral source, affording the potential borrower multiple
opportunities at obtaining a first mortgage loan.
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, banks, mortqaqe
brokers, 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.
***************************************************************************************************
Sec. 114-95. Required documentation for down payment/closing cost
assistance.
(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 Fin~mcìall\dminiGtration and Housing Operational Support
and Housinq and at local lending institutions.
(1) Sales 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 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 mortgage lender to provide a completed
copy of this form to the county department of Finanoial
Administration and Houcing Operational Support and HousinQ in
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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
information will be verified through the use of this form:
a. Curront annual family income.
ab. That all information regarding the applicant is true and
correct.
bG. The loan will conform to lending parameters as stated in the
Certification of Participant form.
CG. 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.
I
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.J.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.
(6) S.H.I.P. Homebuyer Education certificate. Each applicant must
attend a S.H.I.P. four hour home buyer education class prior to
closing. A copy of the S.H.I.P. homebuyer education certificate will
be maintained in the borrower's permanent file.
(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;
I. Uniform secured note.
The original promissory note is to be maintained in the borrower's
permanent 00 file in the county's department of Financial Administration and
Housing Operational Support and Housinq, 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 Hek . maintained in the borrower's
permanent file, in the Collier County Dep3rtmont of Financial
Administration and Housing county's department of Operational
Support and Housinq. Payment of fees associated with the
recording of this document will be the responsibility of the borrower.
(9) Third party verificatio{l. 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, 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, unemployment
benefits, Veterans Administration benefits, educational assistance,
income from business, recurring cash contributions, child support,
and assets on deposit.
fbjThis income verification information may be m3ybo 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.
(10) Home Inspection. Purchasers of existinq homes with a certificate of
occupancy over 12 months old at the time of application will be
required to have a home inspections completed by a licensed home
inspection company. A COpy of the home inspection will be
maintained in the borrower's permanent file.
Sec. 114-96. Rehabilitat!on/emergency repair; eligibility criteria.
(a) In order to be considered, applicants must meet the eligibility criteria for
the down payment/closing cost assistance portion of this program.
(b) Only construction, rehabilitation or emergency repair of affordable housing
which is a permanent improvement to the home, including but not limited
to: repairs or improvements which are needed for safe sanitary habitation,
correction of substantial code violations, the creation of additional living
space, and installation, repair, or replacement of any major goods,
particularly appliances will qualify under this program.
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(c) Purchasers of homes which have had a certificate of occupancy for less
than 12 months at time of application will not qualify for
rehabilitation/emergency repair under this program, but will be eligible for
down payment/closing cost assistance loans of up to $50.000.00
$15,000.00.
(d) Rehabilitation/emergency repair loans will be limited to $2,500.00 per
home.
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 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's Financial þ,dministration and Housing Operational
Support and Housinq depal\ment for approval prior to purchase. This
estimate is to be approved by the borrower and a representative from the
ÞAW Operational Support and Housinq Department prior to purchase or
delivery. Thereafter, the Financial Administration and Housing Operational
Support and Housinq department 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 to verification by the department of Financial Administration and
Housing Operational Support and Housinq and inclusion of an itemized
delivery 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 Collier County 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 Collier County or state 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.:,
(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 Finanoial
Administration and Housing Operational Support and Housinq 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
Finanoial Administration and Housing Operational Support and
Housinq 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) 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 Financial ^dministration and
Housing Operational Support and Housinq department to provide
reasonable assurance that such work has been satisfactorily
completed.
(6) No funds will be disbursed prior to verification of satisfactory
completion of rehabilitation/emergency repair work by the county's
building and review department or Financial Administration and
Housing Operational Support and Housinq department and
inclusion of final invoice from a material or goods supplier and/or
contractor or tradesman submitted to the county's Financial
Administration and Housing Operational Support and Housinq
department.
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 form. A 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 Financial ^dministration and Housing
Operational Support and Housinq 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 department, or hY
the Financial/\dministration and Housing Operational Support and
Housinq department will be maintained in the borrower's permanent
file. A copy of theso inspoctions 'Nil! be provided to the county
financG department.
(3) 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 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 tho county's department of
Fin~:mcial Administration and Houcing. Fees associated with the
recording of this document are to be paid by the borrower. Financial
Administration and Housing dopartment.
SECTION II: Conflict and Severability.
In the event this Ordinance conflicts with any other ordinance of Collier
County, the more restrictive shall apply. If any phrase or portion of this
Ordinance, or the particular application thereof, shall be held invalid or
unconstitutional by any court, administrative agency or other body with
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appropriate jurisdiction, the remaining section, subsection, sentences, clauses or
phrases and their application shall not be affected thereby.
SECTION III: Inclusion in the code of laws and ordinances.
The provisions of this ordinance shall become and 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 such, and the word
"ordinance" may be changed to "section", "article", or other appropriate word.
SECTION IV: Effective Date.
This Ordinance shall become effective upon filing with the Florida
Department of State.
PASSED AND DULY ADOPTED b~ ~e by the Board of County Commissioners
of Collier County, Florida this /3 t -- day of~(?l'Irr]bl~-2005.
ATTEST
DWIGHT E. BROCK
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY FLORIDA
.o.c. By; '1-<-.;... w. ~
FRED W. COYLE, CHAIRMA
,.
Aþproved as to legal form
Patrick G. hite
Assistant County Attorney
This ordinance flied with the
\ ~retory ~tote s Office the
~ day (-t.m.~r Ô"Ot6
and oCknOWledgem~ that
filing received this day
tv(~~1
Dep c:
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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 2005-70
Which was adopted by the Board of County Commissioners
on the 13th day of December, 2005, during Regular Session.
WITNESS my hand and the official seal of the Board of
County Commissioners of Collier County, Florida, this 14th
day of December, 2005.
DWIGHT E. BROCK
Clerk of Courts ~ð1-~+Ett~, '
Ex-officio to BGa~:~è?f"', ").
County Commissio'ri'it'ì3'\": " ""';
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By: Ann nnejU~;":'''':~:''':o~>
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Deputy Clerk