Loading...
Ordinance 2000-069 ORDINANCE NO. 2000- 69 AN ORDINANCE AMENDING COLLIER COUNTY ORDINANCE NO. 94-59 WHICH ADOPTED THE COLLIER COUNTY S. H. I. P. DOWN PAYMENT/CLOSING ASSISTANCE PROGRAM FOR FIRST TIME HOMEBUYERS; AMENDING THE POLICY GUIDELINES AND ADMINISTRATIVE PROCEDURES; PROVIDING FOR CONFLICT AND SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE OF LAWS AND ORDINANCES; AND PROVIDING FOR 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., Florida Statutes, Chapter 91-37, Florida Administrative Code, as a comprehensive funding package for state and local housing progrmns to better enable local governments to meet their responsibilities for affi)rdable 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 aff~)rdable housing; and WHEREAS, Collier County has adopted Ordinance No. 93-19 as amended, providing for a Local Housing Assistance Plan; and WHEREAS, the County, by County Ordinance No. 94-59 adopted a Down Payment/Closing Cost Assistance Program consistent with the Local Housing Assistance Plan; and WHEREAS, the County desires to amend the Down Payment/Closing Costb; Assistance Program to better function in the home lending environment. NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY that: SECTION 1: Attachment A to Ordinance No. 94-59, "Guidelines and Procedures", shall be amended as follows: See amendments to Attachment A to this ordinance which incorporated by reference herein. SECTION ll: 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 appropriate jurisdiction, the remaining section, subsection, sentences, clauses or phrases and their application shall not be affected thereby. 1 Words underlined are additions, words ztrack tkrv. agh are deletions. SECTION 1II: 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. SECT1ON IV: Effective Date This Ordinance shall become effective upon notice from the Secretary of State that this Ordinance has been filed with the Secretary of State. PASSED AND DULY ADOPTED by the by the Board of County Commissioners of Collier County, Florida this o~4/;C~ day of (~SLr". 2000. ATTEST BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK COLLIER COUNTY FLORIDA Clerk of Courts JAMES D. CA~,TER, PH.D., CHA1RMAN Attest as to Chairman's $fgAature onl$. Approved as to legal form and sufficiency: Assistant County Attorney This ordinance filed with the Secretar~ of ~ot~els Office the ~ / ~Zday of r.J e~: , ~00 and acknowledgement ~f that filinp.received this 7eG day of Zv'~v- ., ~ 2 Words underlined are additions, words :truc!: t~rc,~:g~ are deletions. Attachment A COLLIER COUNTY S.H.I.P. DOWN PAYMENT/CLOSING COST ASSISTANCE PROGRAM GUIDELINES AND PROCEDURES I. 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 Pannership Program. (S.H.I.P.) The primary goal of this legislation is to increase the availability of affordable housing to very low and low income persons and families in Collier County. Very low and Low income persons are defined in Collier County Ordinance No. 93-19, and further amended by Collier County Ordinance No. 93-33 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 eighty (80%) percent of the median annual Adjusted Gross Income for households within the state or 80% 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. 4) 1 Words underlined are additions, words struck t!:r~.ugk are deletions. 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 fifty (50%) percent of the median Adjusted Gross Annual Income for households within the State or fifty (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...." (p.6) Income data for the Naples Metropolitan Statistical Area is supplied by the United States Department of Housingand Urban Development (HUD),_ and applicable to all of CollierCounty~ and updated annually. The definition for "Annual Income" 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 SHIP 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 low and low income first time homebuyers. This strategy is more particularly described in Section VI C., paragraph a. The Collier County S.H.I.P. Down Payment/Closing Cost Assistance Program has been designed 2 Words underlined are addmons, words .............t,., are de et~ons. 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 0% interest, deferred payment loan~ of up to $2599 $5~000 cc.;~ for the purpose of down payment/closing cost expenses and rehabilitation or emergency repairs to the subject dwelling unit, .~or .....ely. The note(s-), with a ...........total of up to $5,000 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. Ii. Marketing / Outreach A. At least thirty days prior to the beginning of the application period, Collier 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 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 3 Words underlined are additions, words ztruck t~rc, ugh are deletions. appropriate vehicle for lenders to demonstrate their commitment to this legislation. As some participating institutions may exemise 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. III. 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. B. A firm loan commitment from a mortgage lender will be required before any processing of required documentation can occur. In so doing, the applicant will be pre-screened in regards to total annual household income, credit history, and capacity to repay. Applicants will be asked to sign 4 Words underlined are additions, words sift:c!: t~rc.::gh are deletions. appropriate releases enabling the financial institution to provide such mortgage related information to the Collier County Department of Housing and Urban Improvement. Evidence of hazard and flood insurance where applicable will also be required, as well as a copy of the lender's title insurance policy declaring the affordable housing trust fund as second mortgagee. 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 ss~-' January of 197. 2000, provided by the U.S. Department of Housing and Urban Development (HUD): 1 person ,~, ......$33~100 2 persons 3 persons $22,200.00 $42,550 4 persons ,~, ......$47,300 5 persons .... , .....$51,050 6 persons $41,500.00 $54,850 7 persons $44,250.00 $58,650 8 persons $~7,200.00 $62~400 The above limits are reflective of the maximum income allowed, adjusted for family size, under the designation of low income household. These limits are subject to change on an annual basis. 5 Words underlined are additions, words zW:::l: tkr~.agh are deletions. 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 $g2, ! ~O $118~264 for existing homes and $95,79 $106~365 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. First Time Homebuyer Status - In order to qualify for the program, applicant(s) must not have owned a home for a minimum of three consecutive years. Verification of first time homebuyer status will be documented in the participant(s) permanent file. IV. Administration of Down Payment / Closing Cost Assistance and Rehabilitation / Emergency Repair A. The Director of the Collier County Department of Housing and Urban Improvement shall be designated as the Program Administrator and have authority to sign all reports, transmittals, mortgage loan documents~ and certifications regarding this program. B. The Collier County Department of Housing and Urban Improvement will be responsible for the following administrative duties: 6 Words underlined are additions, words :~uc!: t~r~,::gk are deletions. 1) Advertisement in a publication of general circulation announcing the program and availability of funds. 2) Accepting applications, Reservation Forms, and ....~ ..........c all supporting documentation. 3) Verification of eligibility requirements for the program, and approval of applicants. 4) The maintaining of all required documentation and records of correspondence for each beneficiary in a permanent file. 5) The preparation of Financial Reports detailing S.H.I.P funds used, remaining availability of funds, and participating local financial institutions. 6) The coordination of efforts between the Collier County Housing and Urban Improvement Department, Purchasing and Finance Departments, with the goal of being timely and efficient processing of all loan documentation and payments. 7 Words underlined are additions, words :., uc.: ,..r~ug,. are deletions. V. REQUIRED DOCUMENTATION FOR DOWN PAYMENT / CLOSING COST ASSISTANCE 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 Collier County Department of Housing and Urban Improvement 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 signed 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 8 Words underlined are additions, words :tr:::k tSrc,~;gh are deletions. 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 Collier 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 information will be verified through the use of this form: 1) Current Annual Family Income 2) That all information regarding the applicant is true and correct. 3) that processing fees and closing costs paid by the mortgagor are reasonable and customary. 4) 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. 9 Words underlined are additions, words :true!: t~rz, ug~ are deletions. 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 qualil~, as first time homebuyers. This document will 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. 10 Words underlined are additions, words :true!: t~rz,::gh are deletions. 6) AFFIDAVIT OF NO INCOME CHANGE Prior to signing the Promissory Noteg ! an~ H, 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: 1) Borrower's Promise to Pay 2) Interest & Payments 3) Borrower's Right To Repay 4) Charges 5) Subordination 6) Borrower's Failure to Pay as Requested 7) Obligation of Persons Under This Note 8) Waivers 9) Uniform Secured Note 11 Words underlined are additions, words sirgel: tkrg~gL are deletions. A copy of thee Promissory Note t will be maintained in the borrower's permanent file. The Original Note is to be maintained on file in the Collier County Department of Housing and Urban Improvement, and a copy will be maintained on file in the Collier County Finance Department. 8) SECOND MORTGAGE The Second Mortgage will be used as the security instrument for thee Promissory Notes I v~ If, and will be recorded by the Collier County Clerk of the Circuit Court. borrowcr'z ........ c~ ........:.,^,.. 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 will be necessary whenever the applicant states that any part of the household income is derived from public assistance, a government agency, income generating assets, or for formal verification of 12 Words underlined are additions, words ztr::zlz tkrc, ugh are deletions. :,dcnt:.Scatlc, n or 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. ...... its 7) !~) ~!) This income verification information may be represented on either Collier County SHIP forms or other documentation supplied by the lender used for underwriting purposes. Whil e 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. VI. REHABILITATION/ 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 progrmn. 13 Words underlined are additions, words :~uc!c thr~.gg~ are deletions. 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 spac% and installation~ repair, or replacement of any major goods, particularly appliances _'neet: the c^n^..,:~ ~,~:~:^~ will qualify under this program.-'. d0ocrl ..........r ...........~... ~ ............................... Purchasers of homes which have had a certificate of occupancy for less than twelve (12) months at time of application old will not qualify for rehabilitation/emergency repair under this program, but will be eligible for down payment/closing cost assistance loans of up to $2,500. Rehabilitation/Emergency Repair loans will be limited to $2,500 per borrower. 14 Words underlined are additions, words .............gh are deletions. VII MONITORING OF REHABILITATION / EMERGENCY REPAIR WORK INCLUDING GOODS PURCHASES Information regarding the nature of the rehabilitation/ emergency repair work to be performed or goods to be purchased will be compiled by the homebuyer. ,~btaincd -~:~,~:~a :- .u~ u ..................file Abatement correction of health and safety housing code violations are to b gi ity ~' ............. ' e ven prior ~/ ............over any ........ rehabilitation work,addition of living spac% or goods purchase. B. For goods identified to be purchased, the borrower must submit a price quote to the Collier County Housing and Urban Improvement Department for approval prior to purchase. Once approved~ and goods are purchased, the borrower must provide the County with the corresponding invoic% signed by the borrower stating the approved goods have been delivered to the borrower's home. Thereafter~ the Housing and Urban Improvement 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 Housing and Urban Improvement and inclusion of an itemized delivery slip or invoice from the approved goods supplier. tgC. 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. For work requiring a building permit the borrower will be 15 Words underlined are add nons, words .............~,,, are deletions. responsible for the selection ofhhe a__licensed contractor who w:,ll must perform the rehabilitation/emergency repair work. The contractor or tradesman who is selected must supply a detailed -::c, rl: wr:,tc ~:~ written estimate to the borrower containing an itemized listing of material and labor costs. This ..... ~ ....:*~tii d by b ~-~' ............ ~:~ es mate s to be approve the orrower,. .... ....... ~-~- and a__representative of the Collier County Department of Housing and Urban Improvement prior to the commencement of rehabilitation work. 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 Collier County Department of Housing and Urban Improvement prior to commencement of rehabilitation work. 4. A copy of the approved '::zr!: ':,z[tz ::~ estimate will be maintained in the borrower's permanent file. Tha 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 Collier County 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. 5. Upon completion, any work requiring a building permit to be performed will be inspected by the Collier County Permitting and Review Department. All work performed not requiring a building permit and not requiring a inspection by the Collier 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. 16 Words underlined are additions, words .............t,h are deletions. 6. No funds will be disbursed prior to verification of satisfactory completion of rehabilitation/ emergency repair work h.or .........vv.. by the Collier County Building and Review or Housing and Urban Improvement Department and inclusion of an itemized ............ mvome trom a material or goods supplier and/or contractor or tradesman submitted to the Collier County Housing and Urban Improvement Department. VIII. 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 detailing costs of labor and materials, as applicable. A copy of the approved work wr!tc uF estimate will be maintained in the borrower's permanent file. This form must be delivered to a representative of the Collier County Department of Housing and Urban Improvement prior to the commencement of any habilit ti n/g cy epair k ^ ~:~-~" ........:n ~. ......:.,^., ,.~ re a o emer en r wor .....,, ......v~ .......v Rehabilitation/Emergency Repair loans under this program will be made up to a maximum of $2,500. 2) Final Physical Inspection A copy of all required ,u~ ~:~_^~ final physical inspections conducted by the Collier County Permitting and Review~ or Housing and Urban Improvement Department will be maintained in the borrower's permanent file. A copy ofh~ these inspections will be provided to the ~' ..........."~ .....~ Collier County Finance Department. 17 Words underlined are additions, words .............t,.. are deletions. 3) Second Mo~gage 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 I and If. The second mortgage will be recorded by the Collier County Clerk o£ the Circuit Court. The original recorded second mortgage ';,'ill b; ' .,~ ........will be maintained in the borrower's permanent file in the Collier County Department of Housing and Urban Improvement. A ,~vr: ............... Fina.ncc r, ........Fees associated with the recording of this document are to be paid by the borrower. 18 Words underlined are additions, words .............~.. are deletions. IX. ' Procedure for Loan Closings and the Disbursement of Funds The lender underwriting the first mortgage will make a formal request for the reservation of S.H.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. 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 19 Words underlined are additions, words zWucl: tkr~ug~ are deletions. 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. An [L-~mmem~. 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 disbu sed : ............ c ....... k~^ to the Sc, rrc;c,'cr/contractor, tradesmany or homeowner only after submission of the czntractc, r':, 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 executed properly, and that the second mortgage be recorded by the Collier County Clerk of the Circuit Court. The recorded second mortgage 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 ~rzt m~gagc 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. 20 Words underlined are additions, words :tract: thrc. ugh are deletions. 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 the certify that the foregoing is a true copy of: ORDINANCE NO. 2000-69 Which was adopted by the Board of County Commissioners on 24th day of October, 2000, during Regular Session. WITNESS my hand and the official seal of the Board of County Commissioners of Collier County, Florida, this 25th day of October, 2000. DWIGHT E. BROCK Clerk of Courts and Ex-officio to Board County Commissioners By: Ellie Hoffman, Deputy Clerk