Affordable Housing And Homeownership Program Guidelines
MIAMI-DADE COUNTYPUBLIC HOUSING AND COMMUNITY DEVELOPMENTAFFORDABLE HOUSING HOMEBUYER LOANPROGRAM AND SINGLE-FAMILY REHABILITATIONPROGRAM GUIDELINESPage 1 of 37Revised 09/01/2022
TABLE OF CONTENTSSECTION IIntroduction . 4Homeownership Mortgage Assistance . 4Homebuyer Loan Program . 4Housing Rehabilitation . 4Assistance for Condominium Unit Owners/Special . . 4Housing Development . 4Disaster Relief Assistance . 5Homebuyer Education and Counseling . 5“Jumpstart” Assistance. 5Homebuyer Down Payment Assistance Program Guidelines . 6-7Homebuyer Loan Program Guidelines .7First Time Homebuyers . 8Initial Interview Process . 8-9Process for Closing . 9Eligibility Requirements . 9Occupancy Requirement/Ownership . . 9Affordability . 10Eligible Verification (Surtax, Home/CDBG and Ship) . 10Immigration Status . 10Income Section . 10Income Qualification. 10-11Qualifying Using Section 8 Housing Choice Voucher . 11Income Recertification . 11Income Range of Applicants to Be Served. 11Income and Identity Verification . 12Income Inclusions and Exclusions for Eligibility for Surtax/Ship . 13Income Inclusions for Credit Purposes Surtax/Ship . 14Homeownership Loan Ratios . 14Property Standards . 15Purchase Price . 15Credit Requirements . 15Non-Applying Spouse . 15Down Payment/Closing Costs . 15-16Gifts. 16Asset Limitations . 16First Mortgage Financing . 16Second Mortgage Financing . 16Monthly Payments for PHCD Assistance . 16-17Shared Equity . 17Inspection . 18For HUD “HOME” Funded Programs Only . 19Loan Servicing . 19Participating First Mortgage Lenders . 19Income and Mortgage Limits (Attachment I) . 20Ethics Disclosure Statement for all PHCD Programs (Attachment II) . 21PHCD Loan Documentation Checklist (Attachment III) . 22Required Documentation at time of PHCD Interview . 23Conflict of Interest (Attachment IV) . 24Third-Party Verification of Employment (Attachment V) . 25Acceptable Fees to Be Charged to Applicants (Attachment VI) . 26Page 2 of 37Revised 09/01/2022
SECTION IISingle Family Homeowner Rehabilitation Guidelines . 27Loan Assistance Program Guidelines . 27Introduction . 27Scope . 27Definitions . 27-28Loan Programs and Amounts . 28Assistance for Condominium Unit Owners/Special Assessment per Use of SURTAX Dollars 28-29Surtax and Ship Rehab Single-Family Funded Programs . 29Surtax Beautification Loan Program . 29Surtax, Paint and Shutter Loan Program . 29Eligibility Areas . 29Eligible Properties . 29-30Applicants for Rehabilitation - All Programs . 30-31Income Limit Chart . . . 32Income Inclusions and Exclusions for Eligibility Proposed for Surtax/Ship . 32Income Inclusions for Credit Purposes . 33Funding Sources . 33-34Loan Interest Rates . 34-35Loan Processing and Approval . 35Supplements . 35Waiting List . 35Loan Servicing . 36Loan Fees. 36Effective Date . 36Required Documentation (Attachment I) . 36-37Additional Documentation when Applicable (Attachment II) . 37Page 3 of 37Revised 09/01/2022
INTRODUCTIONMiami-Dade County through Public Housing and Community Development (PHCD) implements awide range of housing programs designed to enhance housing opportunities for low- and moderateincome individuals and families who are legal residents of Miami-Dade County (County). Pursuantto these Affordable Housing, Homeownership and Rehabilitation Program Guidelines assistancemay be provided to developers, community development corporations, individuals and familiesthrough an array of programs encompassing acquisition, construction, rehabilitation,reconstruction, and permanent financing (in the form of mortgage assistance, including subordinatemortgages). Homeownership counseling is a component of all the homeownership programs.Thefollowing is a list of programs offered:HOMEOWNERSHIP MORTGAGE ASSISTANCEThe homeownership mortgage assistance component provides funds to very-low, low- andmoderate-income individuals and families to acquire newly constructed or existing housing units.Homebuyer Loan ProgramThe Homebuyer Loan Program (HLP) pursuant to Ordinance No. 15-127 is a homebuyer assistanceprogram which provides mortgage loan assistance using Documentary Surtax funds to qualified lowand moderate -income individuals and families for the purchase of primary residence as first-timehomeowners. The First Mortgage Lender (licensed in the State of Florida) provides mortgageassistance through their First – Time Homebuyer/Homeownership Program with the HLP. TheLender(s) are approved through PHCD. The HLP does not govern the use of federal funds.Housing RehabilitationThe Housing Rehabilitation Program provides for expansion and upgrades to owner-occupiedsingle-family homes. These improvements are primarily geared to addressing health and safetyissues, and code violations, inclusive of roof repairs, plumbing and electrical as well as associatedrepairs and exterior painting. (See Single Family Rehabilitation Guidelines on page 27 for moredetails).Assistance for Condominium Unit Owners/Special AssessmentsThis Program will assist owner occupied condominium homeowners with limited finances, addressspecial assessment requirements associated with rehabilitation/repairs as a result of applicablebuilding integrity recertification requirements. Surtax funds will be in the form of a loan and theannual household median income may not exceed the maximum limit of 140% as indicated in theMiami-Dade County income limit chart. Loan terms will be structured so as to mitigate the financialburden on families while recognizing the need to ensure compliance with the Surtax program.Housing DevelopmentThe housing development component provides funding to developers, as available, to defray thecosts of new construction, rehabilitation and/or other costs associated with the development ofsingle-family and multi-family housing. This component is intended to increase housingopportunities for persons by encouraging the creation and rehabilitation of affordable housing units.Page 4 of 37Revised 09/01/2022
Disaster Relief AssistanceThe Disaster Relief Assistance provides emergency disaster relief to homeowners whose localityhas been impacted by a major man-made or natural disaster. Individuals in areas which have beendeclared/designated disaster areas by the federal, state and/or local government can be eligible toreceive funding for rehabilitation or reconstruction of their homes. To be eligible for Disaster ReliefInitiative (DRI) funding a person must be the homeowner and occupy the home, which is definedas the primary owned homestead and occupied dwelling of a single family. Rehabilitation orreconstruction costs will be limited to the real estate structure only. Funds can be provided for afirst and/or subordinate mortgage to the homeowner based on the terms and conditions outlined inthe Miami-Dade County Guidelines. This assistance is provided as gap assistance for any damagethat insurance or Federal Emergency Management Agency (FEMA) does not cover.Homebuyer Education and CounselingFor the County Funded Homeownership Program, the homebuyer is required to attend thehomebuyer counseling agency class provided by a U.S. Department of Housing and UrbanDevelopment (HUD) approved agency before meeting with the first mortgage lender. The list ofHUD approved homebuyer counseling agencies can be found in the following link unseling/s/. The homebuyer(s) provides theHomebuyer Counseling certificate from the class to the first mortgage lender and PHCD. Thiscertificate is valid for one year.The homebuyer is required to attend the Homebuyer Education and Counseling Class (HomebuyerCounseling Agency) class. The homebuyer counseling agency component provides education andcounseling to individuals regarding purchasing and financing of affordable housing units. Thehomebuyer counseling agencies are required to cover a variety of topics which include fair housingpractices, credit counseling, budget and money management, financial literacy proximity of schools,employment and transportation, home maintenance, the mortgage approval and post-closingprocess, selecting a neighborhood, locating a home, negotiating a purchase price, and findingappropriate financing. Specifically, the Homebuyer Counseling Agency is required to cover the PHCDHomebuyer Loan Program (first-time homeownership program). This element will provide thehomebuyer all the specific items of the process to purchase a home with the first lender and PHCD.In accordance with Miami-Dade County Resolution No.R-1008-14, homebuyer counseling agenciesshall cover additional topics, including the legal significance of buying a home using a purchase andsale agreement containing an “AS IS” clause, homebuyers’ right to select their own title agent, andhomebuyers’ right to have the property inspected by an inspector of their choice. This resolutionalso requires frequent and random monitoring of these classes by Miami-Dade County to ensurethat these new topics, as well as the previously required topics, are being taught.“Jumpstart” AssistanceThe jumpstart assistance provides funding to assist disaster-affected homeowners, make a downpayment on a new home, repair their current disaster-affected home or obtain a mortgage whileawaiting a potential buyout from FEMA. Down payment assistance to purchase a new home canbe obtained in the form of a subordinate mortgage subsidy awarded on the current programguidelines to applicants who are able to qualify for a first mortgage amount. First mortgageassistance can be provided as an exception on a case-by-case basis.Page 5 of 37Revised 09/01/2022
HOMEBUYER DOWN PAYMENT ASSISTANCE PROGRAM GUIDELINESIncome Categories to be served: very-low, low and moderateMaximum award: 35,000Down Payment Loan Terms:A. LoanB. Term: Up to 30 years deferred loan with no interest, unpaid principalbalance due at maturity.C. Payments: No monthly payment required. Unpaid principal balance dueupon sale, transfer of title, refinance or death during the term of the downpayment loan.D. Default/Repayment: Governed by the Homebuyer Loan Program’sresidency, resale and shared equity restrictions outlined in Ord. No. 15127.Shared Equity PeriodWithin year 1Within year 2Within year 3Within year 4Within year 5Within year 6After year 6Percentage of Profit from resale to bePaid to the County100%100%100%50%50%50%0%E. Applicant’s income level may not exceed 140 percent of the Miami-DadeCounty area mean income adjusted for family size, down payment and/orclosing cost assistance will be available to families with an annual incomebetween 0 to 140 percent of AMI subject to underwriting.Recipient Selection Criteria: Available to eligible applicants as a stand-alone program orto participants in Miami-Dade County’s Homebuyer Loan Program Ord. No. 21-24.A first-time homebuyer is an individual who meets any of the following criteria: an individual orspouse who has had no ownership in a principal residence during the three year period ending onthe date of purchase of the property; a single parent who has owned with a former spouse whilemarried; an individual who has owned a principal residence not permanently affixed to a permanentfoundation in accordance with applicable regulations; an individual who has owned a property thatwas not in compliance with state, local or model building codes and which cannot be brought intocompliance for less than the cost of constructing a permanent structure.The program also requires potential homebuyers to receive homebuyer counseling from a HUDcertified agency and to complete approved homebuyer education training. The education trainingwill cover such topics as: choosing a realtor, selecting a home, qualifying for mortgage financing toinclude PHCD homeownership programs, a comprehensive home inspection, entering apurchase/sale contract, maintaining a home, handling credit affairs and other skills needed gcounseling/s/.Page 6 of 37Revised 09/01/2022
Additional Criteria Combined Loan to Value (CLTV) not to exceed 105 percent of the purchase priceincluding all mortgages and down payment assistance. Borrower must have 1% of the purchase price from their own funds for the downpayment. Amount of down payment assistance will be based on underwriting by the first mortgagelender. Fixed rate mortgages only. For stand-alone purchases, first mortgage lenders are not required to be an approvedlender in PHCD’s Homebuyer Loan Program. First mortgage lenders must provide acommitment letter along with the completed loan package. Must be a Miami-Dade County resident at the time of application and loan closing.HOMEBUYER LOAN PROGRAM GUIDELINESTHE HOMEBUYER SECOND MORTGAGE PROGRAM Income Limits 30%-140% AMIHomebuyer’s Counseling 8 hours HUD approved Employment & Credit Satisfactory Credit History 24 months of verified employment Citizenship Must be a US citizen or permanentresidentMaximum Purchase Price Is subject to approval by the Stateof Florida licensed First MortgageLender*Loan Terms 30 years Down-payment 3% 1% from own fundsMinimum Debt to Income 40% Loan Rate 1% - 2%Occupancy Primary Must be a Miami-Dade Countyresident at time of application.Maximum Debt to Income 50%*The maximum sales price for borrowers to purchase a home under the Homebuyer Loan Programis subject to approval by the State of Florida licensed First Mortgage Lender. The funding is providedthrough the First Mortgage Lender’s First – Time Homebuyer/Homeownership Program with HLP.The interest rates and loan amounts are determined/based on the location of the property. TheMaximum Loan Amount is up to 100,000 at 1% interest rate inside Vulnerability Ranked EligibleBlock Group Areas. Vulnerability Ranked Eligible Block Group Areas are in Miami-Dade County asidentified in the County’s Miami-Dade County Five -Year Consolidated Plan filed with the UnitedStates Department of Housing and Urban Development (U.S.HUD). The Maximum Loan Amount isup to 80,000 at 2% interest rate outside Miami-Dade County Vulnerability Ranked Eligible BlockGroup Areas.Page 7 of 37Revised 09/01/2022
FIRST TIME HOMEBUYERSEligible homebuyers are single individuals, or two or more persons related by blood, marriage,adoption, guardianship or domestic partnership; and may include one or more individuals (underthe age of 18) being domiciled with a parent or another person having legal custody of suchindividual. Where not restricted by federal, state or other funding regulations, designee of suchparent or the person having such custody, with the written permission of such parent or otherpersons who occupied the same unit, may also be considered.With the exception of “Havana Palms buyers”, the eligible household must be a first-timehomebuyer. A first-time homebuyer is an individual who meets any of the following criteria: An individual or spouse who has had no ownership in a principal residence during the three-yearperiod ending on the date of purchase of the property (if either person meets the above test, theyare considered first-time homebuyers). A single parent who has owned with a former spouse while married. An individual who has owned a principal residence not permanently affixed to a permanentfoundation in accordance with applicable regulations. An individual who has owned a property that was not in compliance with state, local ormodel building codes, and which cannot be brought into compliance for less than the costof constructing a permanent structure. Program participation will be limited to a one - time only occurrence per family Miami-Dade County Resolution R-450-13 will also be utilized in this section of these guidelinesto determine eligible applicants.Note: Family as defined at §570.3(m), means all persons living in the same household who are related bybirth, marriage, or adoption. When such persons occupy the same housing unit they are considered asmembers of the family. Their incomes are to be aggregated for calculating family income.Initial Interview ProcessThe first step towards receiving assistance is the initial interview. The homebuyer must have alldocuments requested, including the signed sales contract for review to determine eligibility for thesubsidy. During the interview process, the applicant will be required to sign all disclosure forms forthe program. When applicable, the applicant(s) will be given a predetermination eligibility letter whichthey will take to the first mortgage lender within 30 days.The homeownership specialist schedules an interview with the applicant when the first mortgagelender package is received. Following the initial interview, updated documents may be requestedfrom the homebuyer (bank statements, pay – stubs, etc.). When the first mortgage lender hasapproved the file, the lender must submit to PHCD the documents below via regular mail or courier;the documents cannot be submitted by applicant. The underwriting process must be completedbefore the commitment of funds.Note: It is anticipated that secured electronic transmission of loan packages will be accepted in the nearfuture. The Department does not have the email capacity to accept electronic loan packages at this time.The loan package should consist of:a.b.c.d.e.f.g.Form 1003 - uniform residential loan application (signed and dated)Form 1008 - transmittal summary (signed)Escrow letter and proof of depositBank commitment letterTruth in lendingGood faith estimateAppraisalPage 8 of 37Revised 09/01/2022
h.i.j.k.l.Current tri – merged Credit ReportSingle Family Residence – Insurance Quotes and Condo – Monthly (HOA)Soil Treatment Certificate and Certificate of Occupancy (For new properties)Condominium(s) 40 years or older must have 40 Year Certification (40) or10 Year Re-certification LetterLast six months (6) Bank StatementsWhen the file is approved by PHCD, a firm commitment letter will be issued to the homebuyer who willbe required to sign and return the commitment letter to PHCD to initiate the request for funding.Process for ClosingPHCD requires a two (2) day notice, in writing or (email), prior to scheduling a closing.A Final Closing Disclosure/Settlement Statement (HUD-1) must be submitted to PHCD prior to closingfor review and approval to enable funds to be requested and ensure there are no excessive feesbeing charged to the homebuyer.Developer fees are not allowed. See Attachment IV for a list of the allowable fees that can be chargedto the applicant at closing.Miami-Dade County requires a minimum of seven working days to process and disburse requestedfunds. Funds are payable and directed to the closing agents/title companies only. All closingagents/title companies MUST be approved by Miami-Dade County.PHCD will review reasonableness of fees imposed by closing agents/title companies or fees of a thirdparty before closing.PHCD reserves the right to investigate and discuss the fees with the homebuyer which may resultin delaying the closing.Closing agents/title companies who charge unreasonable fees are subject to removal from theapproved list of approved closing agents/title companies.Lenders/Developers may be required to provide evidence of project approval from Fannie Mae andFederal Housing Administration (FHA) for condominiums. Project approval from Fannie Mae and/orFHA is required to accept subsidy financing.ELIGIBILITY REQUIREMENTSOccupancy Requirement/OwnershipThe homebuyer must use the property as the primary residence which will be reflected by a deedrestriction or a restrictive covenant/shared equity and will be stated in the loan documents. Ownershipmust be in fee simple title. In cases of a 99-year leasehold interest, the remaining lease term must equalthe term of the loan.The property may not be rented, leased, or otherwise used as an income or investment property at anytime that the loan remains in effect. If at any time it is discovered that the property has been rented orleased, the County may accelerate the remaining balance due on the loan and demand immediatepayment in full.Page 9 of 37Revised 09/01/2022
AffordabilitySHIPSurtaxHOME/CDBGLoan Term 30 years or until the property is sold, transferred, leased orotherwise disposed of.Loan Term 30 years or until the property is sold, transferred, leased orotherwise disposed of. 15,000 5 years 15,000 to 40,000 10 years 40,000 20 yearsFor HOME Loans only. If FHA, insured mortgage15 yearsEligible Verification (Surtax, Home/CDBG and Ship)Household occupants shall be verified by using any one or more of the following items: Birth certificates and Social Security cards on all household occupants (no birth cards). School records which give dependents’ residing address. Court-ordered letters of guardianship/adoption. Copy of divorce decree and property settlement agreement. Children who live with parent for 50 percent of the year should be included among the members in ahousehold (joint custody). In cases where the applicant claims to be separated from the spouse; the applicant must provide thefollowing additional documentation for the spouse who will not occupy the property (IRS tax return;driver’s license; voter’s registration card; legal separation agreement; utility bills). A third-party verification or regular cash contribution letter must be submitted for non-court orderedchild support. A letter from the Department of Revenue/Child Support Enforcement office is required. The fullamount of court ordered child support must be included in household income whether or not it isregularly received by the household. SHIP stipulation will apply. Marriage Certificate (when applicable).Homebuyer(s) who are delinquent on a Federal debt or debt related to Miami-Dade County may becomeeligible once the borrower brings the account current or enters into a satisfactory repayment plan withthe respective federal agency.Immigration StatusApplicants for any of the programs and/or activities mentioned herein are subject to immigrationregulations and eligibility as determined by the United States Department of Housing and UrbanDevelopment (USHUD) and/or Miami-Dade County regulations. Benefits may be prorated based on theincome of legal residents in a household.For Documentary Stamp Surtax (Surtax) loans, proof of US permanent resident status or US Citizenship,and/or other related documentation (including special status such as Nicaragua Adjustment and CentralAmerican Release Act (NACARA Section 203), Cuban Adjustment Act and political asylum) must becurrent as of the date of application for assistance from the County.For HOME, CDBG and SHIP, the applicants must be permanent residents of the United States or U.S.Ci
opportunities for persons by encouraging the creation and rehabilitation of affordable housing units. Page 5 of 37 Revised 03/07/2022 Disaster Relief Assistance The disaster relief assistance provides emergency disaster relief to homeowners whose locality has been impacted by a major man-made or natural disaster. .
3. Develop criteria or definitions of affordable housing. 4. Reduce the impact of regulations on affordable housing. 5. Contribute land to affordable housing. 6. Provide financial assistance. 7. Reduce, defer, off-set, or waive development fees for affordable housing. 8. Establish a land banking program to ensure the availability of land for future
additional affordable housing provision during 2019-20 (2,470 units). 62% of affordable housing units were delivered with capital grant funding. 1 Rent to Own- Wales units do not conform to the TAN 2 definition of affordable housing and as such have not been included in the total additional affordable housing figure shown in this release.
Understanding the Housing Market Rental and Homeownership Bill O'Dell September 10, 2013 Florida Housing Coalition's 26th Annual Conference . . Affordable housing needs are increasing Source: U.S. Census Bureau, 2000 Census and 2005 and 2011 American Community Survey Low Income ( 60% AMI), Cost Burdened ( 40%) Renters, 2005-2011 .
Mercy Housing Sue Reynolds— . Affordable housing developers compete to creatively stretch and utilize a limited pool of public and private financing sources to develop housing. And even though the demand for affordable housing continues to far outstrip our ability to supply housing, the affordable housing industry has changed .
affordable housing. Methodology This paper focuses on affordable housing built with Low-Income Housing Tax Credit (LIHTC) financing. Since 1986, the LIHTC program has been the most important source of funding for the construction of affordable housing. In California, more than 225,000 new units have been funded under the LIHTC
Info Insights on Affordable Homeownership in Novato Hello Housing is a non-profit organization working on behalf of the City of Novato to manage their Below Market Rate Homeownership Program. Our goal with this newsletter is to provide helpful information and resources that may benefit you and your family and to provide answers
Hello Novato! Info Insights on Affordable Homeownership in Novato Hello Housing is a non-profit organization working on behalf of the City of Novato to manage their Below Market Rate Homeownership Program. Our goal with this newsletter is to provide helpful
Affordable housing production is primarily managed by the Mayor's Office of Housing and Community Development (MOHCD), which supports residents with affordable housing opportunities and essential services to build strong communities. MOHCD coordinates existing affordable housing in San Francisco and also supports the creation of new
