Ordinance 2006-45
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: / ~ ~~\\ 'Ci ORDINANCE NO. 2006-~
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~~ ~ A IJ. RDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF
J'OL 6 LIER COUNTY, FLORIDA, AMENDING ORDINANCE 94-59, AS
tJ L. 9g,,~ MENDED, KNOWN AS THE COLLIER COUNTY S.H.I.P. DOWN
PAYMENT/CLOSING COST ASSISTANCE PROGRAM, CODIFIED IN
CHAPTER 114, ARTICLE V, OF THE COLLIER COUNTY CODE OF
LA WS AND ORDINANCES, AND DERIVED FROM THE ST A TE
HOUSING INITIATIVE PARTNERSHIP (S.H.I.P.), IN ORDER TO
REFLECT ADMINISTRA TIVE PROCEDURES; REQUIRE DIRECT
PAYMENT OF DOWN PAYMENT AND CLOSING COSTS; PROVIDE
FOR CONFLICT AND SEVERABILITY; PROVIDE FOR INCLUSION IN
THE CODE OF LAWS AND ORDINANCES; AND PROVIDE 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, with rules
adopted at Chapter 67-37, Florida Administrative Code, as a comprehensive funding package
for state and local housing programs to better enable local governments to m~et their
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responsibilities for affordable housing in accordance with their comprehensive plans; <iiKl, ~-~
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WHEREAS, pursuant to the Act, the State has allocated a portion of new an5l~exisH4g
documentary stamp taxes on deeds (the "SHIP" funds) to local governments for deg~lopmeht
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and maintenance of affordable housing; and
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WHEREAS, Collier County implemented a Local Housing Assistance Program t@gugh~~e
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adoption of Ordinance No. 93-19, the "Collier County Housing Initiatives partnersrnpT'(SItrl>)
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Program;" and
WHEREAS, consistent with the Local Housing Assistance Plan, the Board of County
Commissioners (Board) adopted Ordinance No. 94-59, the "Collier County SHIP Down
Payment/Closing Cost Assistance Program;" and
WHEREAS, the Board desires to amend the Down Payment/Closing Cost Assistance
Program in order to reflect administrative procedures and require direct payment to the closing
agent or owner so as to improve the Program's function and provide for better audit control.
NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA that:
SECTION ONE: Chapter 114, Article V, S.H.J.P. DOWN PAYMENT/CLOSING COSTS
ASSISTANCE PROGRAM GUIDELINES AND PROCEDURES, of the Code of Laws and
Ordinances, is amended 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, banks, mortgage 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.
(b) Applicants 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
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information to the Collier County Department of Finaflcial ..\dmiflistration Operational
Support and Housing, hereinafter referred to as "Program Administrator".
(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 Janl::lary of 2003 March of 2006, provided
by the U.S. Department of Housing and Urban Development (HUD):
1 person. . . $39,100.00
2 persons. . . 44,650.0044,700.00
3 persons. . . 50,250.00
4 persons. . . 55,850.00
5 persons. . . 60,300.00
6 persons. . . 61,750.0064,800.00
7 persons. . .69,250.00
8 persons. . . 73,700.00
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.
(d) Dwelling unit restrictions. This program is designed to assist in the purchase of single-
family houses, duplexes, townhouses, attached villas, or condominium units only. The
maximum sales price allowable will be $251,250.00 for existing homes and $254,250.00
for nO'N construction, or the amount indicated in the Collier County LHAP, 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.
Sec. 114-94. Administration of down payment/closing cost assistance and
rehabilitation/emergency repair.
(a) The director of the cOl::lnty department of financial administration and housing shall be
designated as tho ~frogram aAdministrator Director afld shall have the authority to sign
all reports, transmittals, mortgage loan documents, and certifications regarding this
program.
(b) The county department of financial administration and housing Program Administrator
will be responsible for the following administrative duties:
( 1) Advertisement in a publication of general circulation announcing the program
and availability of funds.
(2) Accepting applications, reservation forms, and 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 with the County's bet','leen the COl:lflty's Fiflancial
..\dministration and housing department, purchasing and finance departments,
with the goal of being timely and efficient processing of all loan documentation
and payments.
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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 departmont of
operational support and housing Program Administrator 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 borrower's 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 operational support and housing
Program Administrator 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:
a. That all information regarding the applicant is true and correct.
b. The loan will conform to lending parameters as stated in the certification
of participant form.
c. 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.!.P. income cert(fication. 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.!.P. Homebuyer Education certificate. Each applicant must attend a S.H.J.P.
four hour homebuyer education class prior to closing. A copy of the S.H.J.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;
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f. Borrower's failure to pay as requested;
g. Obligation of persons under this note;
h. Waivers;
1. Uniform secured note.
The original promissory note is to be maintained in the borrower's permanent file
in the county's department of operatioflal support and hOl:lsing by the Program
Administrator, 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 maintained in the
borrower's permanent file by the Program Administrator, in the Collier County
DopartmeAt of Operational Support aAd Housing. 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, 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.
This income verification information may be 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 existing 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.
(b) This iAcome '/erification iflformation maybe represented on either Collier COUflty
S.H.J.P. forms or other documentation supplied by the lender used for l:lnder.vriting
purposes. 'Nhile formal, written third party ','erification is always preferable, a
memorandum to the file documentiAg the conversation with the third party will be
acceptable. In suoh a case it is extremely important to specify the date, contact person,
phone nl:lmbcr, and address of the third party the con','ersation is conducted with.
Sec. 114-96. 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 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 li'liflg space, and installation, repair, or
replacement of any major goods, particularly appliances will qualify under this program.
Items deemed necessary on the home inspection report shall be completed prior to any
additional repairs.
(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.
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(d) Rehabilitation/emergency repair loans will be limited to $2,500.00 per borrower.
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 operational support and housing department Program Administrator for approval
prior to purchase. This estimate is to be approved by the borrower and a representative
ffem of the operational support aRd housing department Program Administrator prior to
purchase or delivery. Thereafter, the operational support and housing department
Program Administrator 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 departmeRt of
operational support and housing Program Administrator 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 requlflng 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 operational support and housing 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 operational
support and housing Program Administrator 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 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 operational support
and housing department Program Administrator 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 operational support afld housing department Program
Administrator and inclusion of final invoice from a material or goods supplier
and/or contractor or tradesman submitted to the county's operational support and
housing department.
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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 the a representative of the county's departmcflt of operational support and
housing Program Administrator 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 operational S\:lpport and housing
department Program Administrator will be maintained in the borrower's
permanent file.
(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. Fees associated with the recording of this document are to be paid
by the borrower.
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.H.J.P. funds by contacting the Program Administrator COl:1flty department of
financial administration and housing. Reservation requests should be made a minimum
of 30 days prior to the contract closing date, and substantiated through the use of the
reservation form detailed in the section describing required documentation S.H.J.P.
application. 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 Program Administrator cO\:lnty purchasing department will be notified of the request
for funds through a requisition, and a separate purchase order will be issued for each
borrower or a direct pay check request. 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 be disbursed to the contractor,
tradesman, or business establishment, or homeowner through a separate purchase order
or a direct pay request only after submission of the invoice and a satisfactory inspection
report, if required.
(c) A representative of the Program Administrator cO\:lnty's department of financial
administration aFld hO\:lsing 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 or evidence of recording will
then be kept on file ffi. Qy the Program Administrator COl-lnty'S department of financial
administration and hOl::1sing. 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.
SECTION TWO:
Conflict and Severability.
In the event this Ordinance conflicts with any other ordinance of Collier County, the
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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.
SECTION THREE: 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 FOUR: Effective Date.
This Ordinance shall become effective upon filing with the Florida Department of State.
PASSED AND DULY ADOPTED by the Board of County Commissioners of Collier
County, Florida this \("0;'" day of Cc \rh - ,2006.
ATTEST
Dwight E. Brock, Clerk
BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY, FLORIDA
By: b.\ ~~o.( ,
"'~.;.,;.4.\:' t.. ........ " uty Clerk
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Approved as to form ~
and egal uf iciency:
By:
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FRANK HALAS, Chairman
J effre
Mana
latzkow
ssistant County Attorney
This ordinance filed with the
~ry o~S~fSQct
\ ~ 'day o\J!2 I
and ocknowledgem~nt pf...that
m;~ th;,~lday
of B '"~1
y OeP 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 2006-45
Which was adopted by the Board of County Commissioners
on the loth day of October, 2006, during Regular Session.
WITNESS my hand and the official seal of the Board of
County Commissioners of Collier County, Florida, this 12th
day of October, 2006.
DWIGHT E. BROCK
Clerk of Courts and Clerk
Ex-officio to Board of
County Commissioners
By:
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Ann JennQ ohncr
Deputy Clerk