Sec. 67-50.060 - HOME Restrictions
§ 67-50.060. HOME Restrictions
(1) HOME funding shall be made available for construction of affordable housing and homebuyer purchase assistance for Eligible Developments, pursuant to 24 CFR § 92.
(2) The maximum per-unit subsidy of HOME funding is limited to the lesser of twenty five percent (25%) of the purchase price of the house or $70,000, with the exception of Eligible Homebuyers with disabilities and Eligible Homebuyers at fifty percent (50%) AMI or below. For these exceptions assistance shall not exceed thirty five percent (35%) of the purchase price.
(3) The annual interest rate for the construction loan will be determined as follows:
(a) All for-profit Applicants that have one hundred percent (100%) ownership interest in the Development held by the general partner entity will receive a three percent (3%) per annum interest rate loan.
(b) All qualified Non-Profit Applicants that have one hundred percent (100%) ownership interest in the Development held by the general partner entity will receive a zero percent (0%) interest rate loan.
(c) All Applicants consisting of a Non-Profit and for-profit partnership will receive a zero percent (0%) interest rate on the portion of the loan equal to the qualified Non-Profit's ownership interest in the Development. A three percent (3%) interest rate shall be charged on the portion of the loan equal to the for-profit's ownership interest in the Development. Should the Applicant sell, transfer, or convey any portion of the ownership in the Development, the loan interest rate ratio will be adjusted to conform with the new percentage of for-profit to Non-Profit ownership.
(4) The Corporation shall acquire real and personal property or any interest in the Development if that acquisition is necessary to protect any loan; sell, transfer, and convey any such property to a buyer without regard to the provisions of Chapters 253 and 270, F.S.; and, if that sale, transfer, or conveyance cannot be consummated within a reasonable time, lease the Development for occupancy by eligible persons.
(5) The minimum amount of HOME funds that can be allocated on a per-unit basis for all Developments is $2,500.
(7) Funds shall not be used to pay for ineligible costs in accordance with 24 CFR § 92.214(a) and the following ineligible costs:
(a) Development reserve accounts for replacement, anticipated increases in operating costs, or operating subsidies, except as described in this rule chapter;
(b) Administrative costs; and
(c) Developer Fee on the acquisition portion of the Development Cost.
(8) All contracts for the construction of a Development with 12 or more HOME-Assisted Units must contain a provision requiring that the wages paid to all laborers and mechanics employed for the construction of the Development will not be less than the wages prevailing in the locality, as predetermined by the U.S. Secretary of Labor pursuant to the Davis-Bacon Act, 40 U.S.C. § 276a-265 -a-5 (1994), 24 CFR § 92.354, 24 CFR § 70(volunteers) and 40 U.S.C. 276 c. Such contracts shall also be subject to the overtime provisions of the Contract Work Hours and Safety Standards Act, 40 U.S.C. 327 - 333(1994), and the Copeland Act (Anti-Kickback Act) 40 U.S.C. § 276c(1994) and the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.), which are adopted and incorporated herein by reference and which are available at http://www.gpoaccess.gov/cfr/index.html or http:// www.gpoaccess.gov/uscode/index.html.
(9) If the Development has 12 or more HOME-Assisted Units, the General Contractor and all available subcontractors shall attend a Corporation-sponsored pre-construction conference regarding federal labor standards provisions.
(10) The Corporation requires attendance at a FHFC-sponsored pre-construction conference prior to the commencement of any physical construction activities regardless of the use of HOME funds. No waivers for this conference will be granted.
(11) A representative of the Applicant must attend a Corporation-sponsored training session on income certification and compliance procedures.
(12) The Corporation is required by HUD to match non-federal funds to the HOME allocation as specified in 24 CFR § 92.218.
(13) All HOME Developments must conform to the following federal requirements which are adopted and incorporated herein by reference and available at http://www.gpoaccess.gov/cfr/index.html or http://www.gpoaccess.gov/uscode/index.html:
(b) Affirmative Marketing as enumerated in 24 CFR § 92.351.
(c) Environmental Review as enumerated in 24 CFR § 92.352, 24 CFR § 58 and National Environmental Policy Act of 1969. The Corporation requires HUD Environmental Review clearance prior to commencing any physical construction activities, regardless of the use of HOME funding.
(h) Debarment and Suspension as enumerated in 24 CFR § 5.
(i) Flood Insurance as enumerated in Section 202 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4106).
(k) Equal Opportunity Employment as enumerated in 41 CFR § 60.
(l) Economic Opportunity as enumerated in 24 CFR § 13.5.
(m) Minority/Women Employment as enumerated in 24 CFR § 85.36(e).
(14) Applicants and lenders are responsible for providing the Corporation or the Servicer with completed documentation of the homebuyer and homeownership requirements established by the Corporation and 24 CFR § 92.254 and the record keeping requirements described in 24 CFR § 92.508.
(15) A HOME-Assisted Unit shall qualify as affordable housing if:
(a) The value or initial purchase price of the property after construction does not exceed ninety-five percent (95%) of the median purchase price for the area, pursuant to 24 CFR § 92.254;
(b) The combined loan-to-value ratio cannot exceed one hundred five percent (105%) of the after construction or appraised value of the HOME-Assisted Unit with the exception of Eligible Homebuyers with disabilities for which the ratio cannot exceed one hundred twenty percent (120%). In the loan-to-value calculation, the Corporation will not include any subsidy that contains forgivable terms within a five (5) year period or any portion of a subsidy that is forgiveable within a five (5) year period;
(c) The person or household qualifies as an Eligible Homebuyer at the time of purchase and who will occupy the home acquired property as their principal residence throughout the affordability period, pursuant to 24 CFR § 92.254(4);
(d) The purchase price of the property after construction must not exceed the appraised value of the property; and
(e) When HOME funds are used with other Corporation programs, the more stringent credit underwriting criteria will apply as it relates to eligibility requirements.
(16) All homes in the Development must be sold to persons or households that have an Adjusted Income that does not exceed eighty percent (80%) AMI.
(17) The Eligible Homebuyer shall adhere to the following terms and conditions:
(a) The HOME Purchase Assistance Loan shall have a zero percent (0%) interest rate and be non-amortizing with principal deferment until maturity.
(b) Repayment of Principal on the HOME Purchase Assistance Loan shall be deferred until the homebuyer sells, transfers or disposes of the home either voluntarily or involuntarily, or ceases to occupy the home as a principal residence pursuant to 24 CFR § 92 - 254(4). In the case of Community Land Trusts, loans may be assumed by Eligible Homebuyers.
(18) The Corporation will consider subordinating its existing second mortgage loan to a first mortgage loan when a refinancing occurs. In making a determination, the Corporation will review the following terms of the new transaction: loan type, term of the loan, interest rate, type of interest rate (variable or fixed), principal balance of the loan, reason for requesting subordination of the loan and whether or not the terms of the new loan are beneficial to the borrower. Borrowers requesting subordination are subject to the following:
(a) The borrower must have resided in the property for at least one year prior to requesting the subordination;
(b) No additional debt can be refinanced into the new first mortgage with the exception of home repairs or improvements;
(c) The borrower cannot receive any cash out as a result of the refinancing; and
(d) The borrower is limited to one subordination.
(19) Any borrower requesting subordination is subject to a one time processing fee not to exceed $50. In the event it is determined that the borrower is not eligible for subordination, fifty percent (50%) of the processing fee will be returned to the borrower. Failure to submit the appropriate documentation and fees may result in a delay in receiving the subordination agreement.(New 9-5-02, Amended 5-4-03, 12-28-04, 8-9-05.)
Specific Authority 420.507(12), (23) FS. Law Implemented 420.507(23), 420.5088 FS.
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