Agenda 04/10/2012 Item #16D 34/10/2012 Item 16.D.3.
EXECUTIVE SUMMARY
Recommendation to approve an updated State Housing Initiatives Partnership Program (SHIP)
Subordination Policy for minor administrative changes.
OBJECTIVE: To update the SHIP Subordination Policy to accurately reference the responsible
department, remove inapplicable conditions from the policy, and change the documentation required to
process a subordination request.
CONSIDERATIONS: On April 27, 2010, agenda item 16D11, the Board of County Commissioners
approved the most recent SHIP Local Housing Assistance Plan ( "LHAP "), including the Subordination
Policy which is attached as Exhibit I.
The recommended updates which are summarized below will ensure that the policy is accurate, effective,
and consistent with industry standards.
1. Remove the heading FY2010 /2011; FY2011/2012; FY2012/2013. This specific reference is
irrelevant since the subordination policy is tied to all SHIP program years.
2. Update the responsible department name from "Housing and Human Services" to the current
department name "Housing, Human and Veteran Services."
3. Remove the condition that "there are, and will be, no other liens against the property ". This
condition is irrelevant to the subordination request and outside the control of Collier County. In
fact, by the very nature of this being a subordination policy, by definition, there is clearly a higher
order lien (usually mortgage) on the property.
4. Modify a required document from "signed final" to "preliminary HUD -1 Settlement Statement."
A signed final settlement statement is not available until the closing has occurred and, therefore,
is unavailable when approving a subordination request.
"The LHAP was a joint effort with the City of Naples. On March 21, 2012, the City Council adopted a
Resolution in support of County staff s proposed revisions to the Subordination Policy. The City
Resolution was not available at the time of County agenda publication. Accordingly, the City Clerk's
recap of the item showing approval is attached."
FISCAL IMPACT: The recording costs associated with the subordination agreement will be borne by
the recipient. Therefore there is no fiscal impact associated with this item.
LEGAL CONSIDERATIONS: This item is legally sufficient and requires a majority vote for Board
action. —JB W
GROWTH MANAGEMENT IMPACT: There are no growth management impacts associated with this
item.
RECOMMENDATION: To approve the minor administrative changes to the SHIP Subordination
Policy.
Prepared By: Lisa Carr, Housing Outreach Coordinator, Housing, Human and Veteran Services
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4/10/2012 Item 16.D.3.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.D.3.
Item Summary: Recommendation to approve an updated State Housing Initiatives
Partnership Program (SHIP) Subordination Policy for minor administrative changes.
Meeting Date: 4/10/2012
Prepared By
Name: CarrLisa
Title: SHIP Program Coordinator
3/1/2012 1:41:17 PM
Submitted by
Title: SHIP Program Coordinator
Name: CarrLisa'
3/1/2012 1:41:18 PM
Approved By
Name: AlonsoHailey
Title: Administrative Assistant,Domestic Animal Services
Date: 3/14/2012 2:12:31 PM
Name: GrantKimberley
Title: Interim Director, HHVS
Date: 3/19/2012 10:19:15 PM
Name: WhiteJennifer
Title: Assistant County Attorney,County Attorney
Date: 3/21/2012 11:43:31 AM
Name: RamseyMarla
Title: Administrator, Public Services
Date: 3/22/2012 11:13:37 AM
Name: WhiteJennifer
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4/10/2012 Item 16.D.3.
Title: Assistant County Attorney,County Attorney
Date: 3/23/2012 2:17:21 PM
Name: PryorCheryl
Title: Management/ Budget Analyst, Senior,Office of Management & Budget
Date: 3/27/2012 9:33:37 AM
Name: StanleyTherese
Title: Management/Budget Analyst, Senior,Office of Management & Budget
Date: 3/29/2012 3:10:25 PM
Name: KlatzkowJeff
Title: County Attorney
Date: 3/30/2012 9:03:55 AM
Name: IsacksonMark
Title: Director -Corp Financial and Mgmt Svs,CMO
Date: 3/30/2012 2:16:02 PM
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EXHIBIT I
Housing and Human Services Department
State Housing Initiatives Partnership Program
SUBORDINATION POLICY
4/10/2012 Item 16.D.3.
Collier County State Housing Initiatives Partnership Program (SHIP) assistance is provided in the form of
a zero - percent, fifteen year deferred payment loan. Payment in full is due upon sale if sold within the
fifteen year term. If sold after the fifteen year term, no repayment is required. As long as the recipient
continues to own the assisted property during the term of the mortgage, then the loan will not have to be
repaid.
Requests for subordination must be approved in advance and in writing by the Housing Human and
Veteran Services Department ( "Department "). We may consider subordinating our loan if the following
factors are present:
1. The proposed transaction is a rate and term refinance (less than $500.00 to borrower at closing).
Cash -out transactions will be not considered for subordination; and
2. The new interest rate is a least one percent less than the current interest rate; and
3. The new principal and interest payment is lower than the current payment; and
4. The proposed transaction only includes the current first mortgage payoff and reasonable closing
costs; and
5. Closing costs are reasonable as determined by the Department; and
6. The proposed transaction does not include a prepayment penalty.
In order to determine if a recipient may qualify for subordination the Department will require the
following documents:
1. Signed and executed Good Faith Estimate and Truth in Lending statement; and
2. Signed and executed mortgage application; and
3. Subordination Request Analysis form (attached).
Following initial review, the Department will advise in writing if we will consider subordinating the
deferred payment loan. However, the following documents will be required prior to releasing the
subordination agreement:
1. Preliminary final HUD -1 Settlement Statement; and
2. Copy of title commitment; and
3. Name, phone number and email address of closing agent.
If approved, the Department will prepare the Subordination Agreement. If we are unable to approve the
request, a payoff letter will be issued.
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4/10/2012 Item 16.D.3.
Collier County
Housing and Human Services Department
State Housing Initiatives Partnership Program
Recipient(s) name:
Recipient(s) address:
Transaction is a ❑ loan modification ❑ rate and term refinance* ❑ Other (Specify)
*Cash out transactions will not be considered
Current First Mortgage Information
Lender:
Principal Balance:
Interest Rate:
Term:
Monthly Payment:
New First Mortgage Information
Lender:
Principal Balance:
Interest Rate:
Term:
Monthly Payment:
OFFICE USE ONLY
❑ APPROVED — PREPARE SUBORDINATION ❑ DENIED — PREPARE PAYOFF
Kimberley Grant, Interim Director
Date
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EXHIBIT I
4/10/2012 Item 16.D.3.
Collier County
Housing and Human Services Department
State Housing Initiatives Partnership Program
SUBORDINATION POLICY
Collier County State Housing Initiatives Partnership Program (SHIP) assistance is provided in the form of
a zero - percent, fifteen year deferred payment loan. Payment in full is due upon sale if sold within the
fifteen year term. If sold after the fifteen year term, no repayment is required. As long as the recipient
continues to own the assisted property during the term of the mortgage, then the loan will not have to be
repaid.
Requests for subordination must be approved in advance and in writing by the Housing awl Human
Services Department ( "Department'). We may consider subordinating our loan if the following
factors are present:
1. The proposed transaction is a rate and term refinance (less than $500.00 to borrower at
closing). Cash -out transactions will be not considered for subordination; and
2. The new interest rate is a least one percent less than the current interest rate; and
3. The new principal and interest payment is lower than the current payment; and
4. The proposed transaction only includes the current first mortgage payoff and reasonable closing
costs; and
5. Closing costs are reasonable as determined by the Department; and
4- There afe. aiid will be, ne ether- liefts against the sUbjee4 przepel4y; aiid
A- The proposed transaction does not include a prepayment penalty.
In order to determine if a recipient may qualify for subordination the Department will require the
following documents:
1. Signed and executed Good Faith Estimate and Truth in Lending statement; and
2. Signed and executed mortgage application; and
3. Subordination Request Analysis form (attached).
Following initial review, the Department will advise in writing if we will consider subordinating the
deferred payment loan. However, the following documents will be required prior to releasing the
subordination agreement:
1. S HUD -1 Settlement Statement; and
2. Copy of title commitment; and
3. Name, phone number and email address of closing agent.
If approved, the Department will prepare the Subordination Agreement. If we are unable to approve the
request, a payoff letter will be issued.
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Collier County
Housing and Human Services Department
State Housing Initiatives Partnership Program
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SUBORDINATION REQUEST ANALYSIS
Recipient(s) name:
Recipient(s) address:
4/10/2012 Item 16.D.3.
Transaction is a ❑ loan modification ❑ rate and term refinance* ❑ Other (Specify)
*Cash out transactions will not be considered
Current First Mortgage Information
Lender:
Principal Balance:
Interest Rate:
Term:
Monthly Payment:
New First Mortgage Information
Lender:
Principal Balance:
Interest Rate:
Term:
Monthly Payment:
OFFICE USE ONLY
❑ APPROVED — PREPARE SUBORDINATION ❑ DENIED — PREPARE PAYOFF
Plank Ramsay, 14ousiitg� -Maaage
Date
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4/10/2012 Item 16.D.3.
Regular Meeting of Wednesday, March 21, 2012
Page 3
This document is promulgated solely for the purpose of(providing a brief reference to City Council action, it is not to
be construed as minutes of the Ci4, Council meeting or in any way the official record of said meeting.
.......... . . .. . ........ . ............. . .......... . . . .....
Resolution 7-f. Approve amending the Collier County and
Planning City of Naples State Housing Initiatives
Amendment to the Collier County Partnership (SHIP) Local Housing
Subordination Policy Assistance Plan (LHAP), specifically
Exhibit 'I", the Collier County
Discussion Oni
Resolution — Quasi-Judicial
Planning
Conditional Use Petition 12-CUI
Petitioner: Goodwill Industries of
Southwest Florida, Inc.
Agent: Gulfcoast Consulting Group
Planning Advisory Board Recommendation
to Approve
12-13076 AS AMENDED to delete Section 2-
1 and renumbering the remainder of
Section 2 / Saad /Barnett
6-0 (Price absent)
9. Consider a Resolution determining
Conditional Use Petition 12-CU1, pursuant
to Section 58-503, to allow the retail sale of
secondhand merchandise in the Highway
Commercial Zoning District, located at
1795 Ninth Street North, subject to
conditions
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Subordination Policy to ensure that the
Policy is accurate, effective and consistent
12-13075 Approved with Consent Agenda
with industry standards
Resolution
7-g. Approve a corrected Preliminary and Final
Streets and Stormwater
(Record) Plat for RSI Naples (Petition 12-
Corrected Record Plat
SD1), a Replat of Lots 1 through 5
inclusive, 11 through 32 inclusive, the
north 4 feet of Lot 6, and the vacated
north-south and east-west alleys, Block
17, Tier 10, Seaboard Replat as recorded
in Plat Book 1, Page 59, to replat 5
existing parcels (27 lots more or less) into
one parcel (approximately 2.305 acres)
located north of Fourth Avenue South,
south of Third Avenue South, east of U S
41 and west of Tenth Street South, owned
by RSII Properties, Inc., and amending
12-13076 Approved with Consent A,
genda,
and supersedin2, Resolution 12-13402
END OF CONSENT AGENDA
Finance
& Presentation by Maudlin and Jenkins of
Presentation of the Comprehensive Annual
the September 30, 2011 Comprehensive
Financial Report (CAFR)
Annual Financial Report
Discussion Oni
Resolution — Quasi-Judicial
Planning
Conditional Use Petition 12-CUI
Petitioner: Goodwill Industries of
Southwest Florida, Inc.
Agent: Gulfcoast Consulting Group
Planning Advisory Board Recommendation
to Approve
12-13076 AS AMENDED to delete Section 2-
1 and renumbering the remainder of
Section 2 / Saad /Barnett
6-0 (Price absent)
9. Consider a Resolution determining
Conditional Use Petition 12-CU1, pursuant
to Section 58-503, to allow the retail sale of
secondhand merchandise in the Highway
Commercial Zoning District, located at
1795 Ninth Street North, subject to
conditions
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