Okaloosa County BOCC — 2013 meeting #1140 (date undetermined) — 2013-2016 LHAP Revised Per FHFC — reading text

date. There is a term of 5 years, unless the property is sold, transferred or rented, in which case the loan becomes due and payable in full, with the following exception: (1) An income eligible heir makes the house their primary residence, in which case the loan can be assumed by them. If HOME monies are leveraged with SHIP monies for reconstruction or new construction HOME & SHIP rules will apply to eligible recipients and property. Rental Assistance funds, not to exceed $3,500 will be granted to income eligible recipients. 6. Recipient Selection Criteria: Assistance will be provided on a first come, first qualified, first served basis following the declaration of a disaster. The strategy will be advertised upon declaration of the area as a "declared disaster" area. In the event the strategy is not implemented during a given SHIP Program year, any funding reserved for the Strategy will be reallocated to one or more of the approved SHIP strategies by SHIP budget transfer notification to the Housing Finance Agency. E. Name of the Strategy: tnfitt- Housing / Land and/or House Acquisition/Rehabilitation/Resale 1. Summary of the Strategy: The intent of this strategy is threefold: a.) To allow the Okaloosa CDC the capability to purchase the property, rehabilitate and resell it using HD definition of "Affordability" within 12 months of purchase to low and very low income eligible customers. b.) To purchase property in target neighborhoods needing revitalization and to provide infill housing via new construction within 24 months of purchase. c.) To allow the Okaloosa Community Development Corp to purchase land to develop home sites within 36 months of purchase. This is not a land banking strategy, but instead a new construction strategy that complies with the SHIP expenditure deadline. 2. Fiscal Years Covered: 2013/2014; 2014/2015; 2015/2016 3. Income Categories to be served: The targeted populations are those individuals or households who are at 80% of the median income or less. - 9-  Maximum award is noted on the Housing Delivery Goals Charts: $100,000 4. Terms, Recapture and Defau lt: Applicants purchasing these properties will be allowed to participate in the SHIP Down PaymenUClosing Cost Program The SHIP note has no monthly payments, is at zero percent (0%) interest, and is due and payable upon sale, transfer or rental of subject property.. The upfront SHIP investment from this strategy will be recaptured in full. Requests for subordination in the event of homeowner refinancing will be reviewed and granted only when the refinancing will result in a decrease of their mortgage payment. There is the stipulation of no more than $100.00 cash in hand to the homeowner. MAXIMUM AMOUNTS: Single Family Home $100,000 Recipient Qualifications: Costs funded by the SHIP Program for homes purchased by SHIP recipients will require a Deferred Payment Loan (DPL) secured by a mortgage and promissory note. The note has no monthly payments, is at zero percent (0%) interest, and is due and payable upon sale, transfer or rental of subject property. There is a term of 15 years, unless the property is sold transferred or rented, in which case the loan becomes due and payable in full, with the following exceptions: (1) An income elig ible heir makes the house their primary residence, in which case the loan can be assumed by them. (2) The SH IP note has no month ly payments, is at zero percent (0%) interest, and is due and payable upon sale, transfer or rental of subject property. If HOME monies are leveraged with SHIP monies for reconstruction, HOME rules will apply to eligible recipients and property. 5. Recipient Selection Criteria: Ass istance will be provided on a first-come, first qualified, first-serve basis fo llowing annual advertisement of the availability of SHIP resources for eligible homeowners who are at no more than 80% of median income level for Okaloosa County. Section 420.9075(3)(c) Florida Statue, state that it is unlawful to discriminate on the bas is of race, creed, color, religion, age. sex, marital or familial status, national origin, or handicap in the selection of recipients of contracts or assistance under the SHIP Program. - 10 - F. Name of the Strategy: Foreclosure Preventionllntervenllon Strategy 1. Summary of the Strategy: This strategy will be used in all areas of Okaloosa County and the City of Fort Walton Beach to provide foreclosure preventionliniervention assistance prior to the start of the foreclosure process to allow eligible low and very low income homeowners to become current on their mortgage payments. Eligible expenses will include delinquent mortgage payments, attorney's fees, recording fees, and late fees. The maximum grant amount is $5,000. 2. Fiscal Years Covered: 2013/2014; 2014/2015; 2015/2016 3. Income Categories to be Served: Those individuals or households who are at or below 80 % of median income. Assistance will be provided on a first-come, first qualified, first-served basis. 4. Maximum Award: $5,000 5. Terms, Recapture and Default: Assistance will be available in the form of a grant with no repayment Required. 6. Recipient Selection Criteria: Homeowners must be delinquent at least 30 days with either a letter from the mortgagor-notifying applicant of delinquency and/or intent to foreclose. In addition, the default must have been caused by circumstances beyond the control of the applicant, such as - death of spouse, unforeseen medical expenses, divorce, or unemployment- and there must be a reasonable prospect that the applicant will be able to resume full mortgage payments to the primary lender, based on an income certification to determine Affordability. This program may only be used once by an eligible homeowner. G. LHAP RENTAL STRATEGIES Name of the Strategy: Rehabilitation/New Construction 1. Summary of the Strategy: The intent of this strategy is to leverage state funds with private investors and other non-profits in the rehabilitation of existing substandard low- income rental housing, both single fam ily homes and multi-family apartments or town homes, and to assist in the funding, rehabilitation or new construction of rental units within the County and City to further the efforts of low income rental development. 2. Fiscal Years Covered: 2013/2014; 2014/2015; 2015/2016 3. Income Categories to be served: Families occupying rental units rehabilitated or developed through this activity must have incomes below 80% of the median income or in tile case of a development receiving tax credits; they must adhere to state required percentages. 4. Sponsor Selection Criteria: Selection criteria shall include the following. as applicable: -11- SELECTION CRITERIA MAXIMUM POINTS 1) Provide the organization's mission slatement or bylaws which must document the organization's intent to provide affordable rental housing 10 pts. 2) Amount of community re lated activity the organization has in Okaloosa County. 5 pts. 3) Experience in the development of affordable rental housing as well as any previous experience with the FHFC rental development. 20 pts, 4) The financial stability of the organization I corporation, 15pts, 5) Ability to complete projects in a timely manner with target dates for Project commitment and completion if selected , 10 pts, 6) Demonstrate site control. 15pts. 7) Demonstrate that other necessary funds and financing are committed with a ratio of private funds to public funds included, 15pts. 8) Document the SHIP cost per unit as well as the total aggregate cost per unit from all funding sources . 20pts . 9) Document that the infrastructure is in place or is available and project conforms to County andlor City development goals. 10pts 10) Document support services provided. 20pts. 11) Document the affordability of the proposed units to be constructed or rehabil itated (please include rental rates). 20pts. 12) Is the sponsor designated as a private for profit entity or a non-profit Organization, 10 pts, 13) Is the project located in an area targeted by the OCDC, City of Fort Walton Beach, or Okaloosa County, or is it located in a Community Redevelopment Area or Enterprise Zone? 10pts, 14) Demonstrate that you will employ personnel from the We~are Transition Program and Workforce Development Initiatives Programs. 10pts. 15) Form of SHIP Assistance reques ted, i,e" deferred payment loan or low interest loan. 10pts, - 12-  5. Terms, Recapture and Default The SHIP note will be at 0% for non-profit firms and a low interest loan not to exceed 3%, will be used for for-profit firms, with no monthly payments, and is due and payable upon sale, transfer or rental of subject property. Both cases will be secured by mortgage and note, with a minimum term of 15 years. Limits: New Construction: $50,OOO/Unit Existing $40,OOO/Unit SHIP Leveraging Resources: • Private Mortgage Lenders • Florida Housing Finance Corporation (FH FC) 6. Recipient Selection