City of Port St Lucie

Transcription

1 City of Port St Lucie SHIP LOCAL HOUSING ASSISTANCE PLAN (LHAP) , and

2 Table of Contents Description Page # Section I, Program Details 1 Section II, LHAP Strategies 6 A. Home Purchase Assistance 6 B. Comprehensive Owner Occupied Rehabilitation 9 C. Limited Owner Occupied Rehabilitation 12 D. Accessibility/Retrofit 15 E. Water and Sewer Connection 17 F. Water/Sewer Assessment 18 G. Disaster Recovery 20 Section III, Incentive Strategies 21 A. Expedited Permitting 21 B. Ongoing Review Process 22 C. Modification of Impact Fee Requirements 22 D. Allowance of Flexibility in Densities for Affordable 23 Housing E. Reduction of Parking and Setback Requirements for 24 Affordable Housing F. Support of development near transportation hubs and 24 major employment centers and mixed-use developments G. Affordable housing components in Comprehensive Plan 24 H. No Changes Required 25 Exhibits 26 A. Administrative Budget for each fiscal year covered in the Plan B. Timeline for Estimated Encumbrance and Expenditure C. Housing Delivery Goals Chart (HDGC) for each fiscal year covered in the plan D. Signed LHAP Certification E. Signed, dated, witnessed or attested Adopting Resolution

3 F. Ordinance: (N/A. No change from the original creating ordinance) G. Interlocal Agreement (None Required)

4 I. Program Details: A. Name of the participating local government: City of Port St Lucie Is there an Interlocal Agreement: Yes No. x B. Purpose of the program: 1. To meet the housing needs of the very low, low and moderate income households; 2. To expand production of and preserve affordable housing; and 3. To further the housing element of the local government comprehensive plan specific to affordable housing. C. Fiscal years covered by the Plan: , and D. Governance: The SHIP Program is established in accordance with Section , Florida Statutes and Chapter 67-37, Florida Administrative Code. Cities and Counties must be in compliance with these applicable statutes, rules and any additional requirements as established through the Legislative process. E. Local Housing Partnership: The SHIP Program encourages building active partnerships between governments, lenders, builders and developers, real estate professionals, advocates for low-income persons and community groups. The City of Port St. Lucie has partnered with the Martin/St. Lucie Lending Consortium since the inception of the SHIP program. Any financial institution or mortgage company that agrees to send representatives to semi-monthly meetings, provide a special lending package and support homebuyer education classes may join the consortium and offer first mortgage loans to SHIP applicants. The Consortium lenders have agreed to limit lender fees and provide fixed rate mortgages for SHIP applicants. When bond or portfolio loans are necessary or beneficial for applicants but are not available from consortium members, Community Services staff may give temporary approval for a lender outside of the consortium to fund the loan; it must be in the best interest of the applicant and the SHIP program to do so. Training events and special meetings are also scheduled to bring together lenders, title companies, realtors and homebuilders. F. Leveraging: The Plan is intended to increase the availability of affordable residential units by combining local resources and cost saving measures into a local housing partnership and using public and private funds to reduce the cost of housing. SHIP funds may be leveraged with or used to supplement other Florida Housing Finance Corporation programs and to provide local match to obtain federal housing grants or programs. G. Public Input: Public input was solicited through face to face meetings with housing providers, social - 1 -

5 service providers, local lenders and neighborhood associations. Public input was solicited through the local newspaper in the advertising of the Local Housing Assistance Plan and the Notice of Funding Availability. H. Advertising and Outreach: SHIP funding availability shall be advertised in a newspaper of general circulation and periodicals serving ethnic and diverse neighborhoods, at least 30 days before the beginning of the application period. If no funding is available due to a waiting list, no notice of funding availability is required. The City also utilizes its website ( and its public access television to provide housing program information and updates. I. Waiting List/Priorities: A waiting list will be established when there are eligible applicants for strategies that no longer have funding available or if it is necessary to suspend selection due to high volume of applications. Those households on the waiting list will be notified of their status. Applicants will be maintained in an order that is consistent with the time names were placed on the list as well as any established funding priorities as described in this plan. When necessary, the City may give priority to extremely-low, very-low, low income, and/or special needs applicants on the waiting list in order to maintain compliance with State guidelines relating to low income and/or special needs (defined in F.S.) set asides. Disaster Recovery applicants may be funded prior to applicants on a waiting list for other strategies. Priorities for funding listed below may apply if listed under Recipient Selection Criteria in the respective strategy: 1) Emergency Repairs (as approved by Director) 2) Accessibility/Retrofit Improvements J. Discrimination: In accordance with the provisions of ss , it is unlawful to discriminate on the basis of race, color, religion, sex, national origin, age, handicap, or marital status in the award application process for eligible housing. K. Support Services and Counseling: Support services are available from various sources. Available support services may include: Homeownership Counseling (Pre and Post), Credit Counseling, Tenant Counseling, Foreclosure Counseling and Transportation. Additional information regarding these services can also be found on the City of Port St. Lucie website at or contact the Community Services Office. L. Purchase Price Limits: The sales price or value of new or existing eligible housing may not exceed 90% of the average area purchase price in the statistical area in which the eligible housing is located. Such average area purchase price may be that calculated for any 12-month period beginning not earlier than the fourth calendar year prior to the year in which the award occurs. The sales price of new and existing units can be lower but may not exceed 90% of the median area purchase price established by the U.S. Treasury Department or as described above. The methodology used is: - 2 -

6 x U.S. Treasury Department Local HFA Numbers M. Income Limits, Rent Limits and Affordability: The Income and Rent Limits used in the SHIP Program are updated annually by the Department of Housing and Urban Development and posted at Affordable means that monthly rents or mortgage payments including taxes and insurance do not exceed 30 percent of that amount which represents the percentage of the median annual gross income for the households as indicated in Sections , F.S. However, it is not the intent to limit an individual household s ability to devote more than 30% of its income for housing, and housing for which a household devotes more than 30% of its income shall be deemed Affordable if the first institutional mortgage lender is satisfied that the household can afford mortgage payments in excess of the 30% benchmark and in the case of rental housing does not exceed those rental limits adjusted for bedroom size. N. Welfare Transition Program: Should an eligible sponsor be used, a qualification system and selection criteria for applications for Awards to eligible sponsors shall be developed, which includes a description that demonstrates how eligible sponsors that employ personnel from the Welfare Transition Program will be given preference in the selection process. O. Monitoring and First Right of Refusal: In the case of rental housing, the staff and any entity that has administrative authority for implementing the local housing assistance plan assisting rental developments shall annually monitor and determine tenant eligibility or, to the extent another governmental entity provides periodic monitoring and determination, a municipality, county or local housing financing authority may rely on such monitoring and determination of tenant eligibility. However, any loan or grant in the original amount of $10,000 or less shall not be subject to these annual monitoring and determination of tenant eligibility requirements. Tenant eligibility will be monitored annually for no less than 15 years or the term of assistance whichever is longer unless as specified above. Eligible sponsors that offer rental housing for sale before 15 years or that have remaining mortgages funded under this program must give a first right of refusal to eligible nonprofit organizations for purchase at the current market value for continued occupancy by eligible persons. P. Administrative Budget: A line-item budget of proposed Administrative Expenditures is attached as Exhibit A. The City of Port St Lucie ensures that the moneys deposited in the local housing assistance trust fund shall be used to administer and implement the local housing assistance plan. Section Florida Statute and Chapter 67-37, Florida Administrative Code, states: A county or an eligible municipality may not exceed the 5-percent limitation on administrative costs, unless its governing body finds, by resolution, that 5 percent of the local housing distribution plus 5 percent of program income is insufficient to adequately pay the necessary costs of administering the local housing assistance plan. The cost of administering - 3 -

7 the program may not exceed 10 percent of the local housing distribution plus 5 percent of program income deposited into the trust fund, except that small counties, as defined in s (19), and eligible municipalities receiving a local housing distribution of up to $350,000 may use up to 10 percent of program income for administrative costs. The applicable local jurisdiction has adopted the above findings in the resolution attached as Exhibit E. Q. Program Administration: Administration of the local housing assistance plan will be wholly performed and maintained by the City of Port St. Lucie.. R. Project Delivery Costs: Project delivery costs include recording of the mortgage, inspection fees, and liaison between inspector, homeowner and contractor. These costs will be included in the costs to the homeowner but furnished as a grant. S. Essential Service Personnel Definition: The City of Port St. Lucie defines Essential Service Personnel as Those employed persons whose household income does not exceed program income limits. This includes teachers and educators; other school district employees, community college employees, and university employees; police and fire personnel; health care personnel; skilled building trades personnel; government personnel. T. Describe efforts to incorporate Green Building and Energy Saving products and processes: The City of Port St. Lucie requires energy star appliances when SHIP rehab work involves replacement of appliances. We also work with Florida Power and Light in their energy rebate program, which involves weather stripping of windows and upgrading of A/C units (where the unit has to be replaced). All homes are required to have storm shutters or impact resistant windows if we are replacing windows. Other energy efficient upgrades may be recommended in connection with needed repairs. When replacing garage doors, we upgrade to insulated doors; windows and sliders are replaced with low-e and air conditioners are 16- seer. Households may be eligible for energy efficient replacement of items not in need of repair if there is sufficient funding. These items may include the following: Insulation to R- 30, caulking around windows and doors, and weather-stripping of all exterior doors. U. Describe efforts to meet the 20% Special Needs set-aside: The City of Port St. Lucie has reached out to several organizations that support special needs households to access the housing needs of their clients. There has not been a need for housing assistance expressed by those organizations at this time, but we will continue to communicate with them, especially when a new housing plan is being prepared. Staff also reviews the files of each new applicant to determine if that applicant or any member of the household meets the definition of Special Needs as defined under Chapter (21), F.A.C. Those households are eligible for all of our housing strategies and, if needed, they may request accessibility retrofit improvements that enable them to live more independently in their homes

8 V. Describe efforts to reduce homelessness: The City of Port St. Lucie does not receive direct funding to address homeless needs. HUD is providing program funding for homeless services in St. Lucie County through the Continuum of Care administered by the Treasure Coast Homeless Services Council. The City of Port St. Lucie maintains its membership on the Council and the priorities established in its Action Plan match those of the regional Continuum of Care. The City supports the Council s grant applications to HUD. The City is a member of the Treasure Coast Homeless Services Council, which is the lead agency for the Regional Continuum of Care. The City participates in the Continuum and supports its efforts. The homeless priorities established by the Continuum are also the City s priorities established in its CDBG Consolidated Plan

9 Section II. LHAP Strategies: A. Home Purchase Assistance 1 a. Summary of Strategy: Funding assistance to eligible home buyers to purchase newly constructed homes or existing homes in the City of Port St. Lucie. This strategy may also be utilized with homes purchased and repaired or reconstructed by the City of Port St. Lucie under its Neighborhood Stabilization Program. In order to meet the 75% construction/rehab set-aside for the SHIP program, the City may require homebuyers to include documented, eligible repair/rehabilitation or energy efficiency improvements with the home purchase transaction or provide documentation that repairs or improvements were completed by the seller within 12 months prior to closing. SHIP monies may be used for all or any portion of the following: downpayment, closing costs, prepaids, and/or eligible repair. When maximum funding amounts are not sufficient to include all of the necessary repair/rehabilitation along with down-payment and closing costs assistance, funding for repairs may be available through either the Limited or Comprehensive Owner Occupied Rehabilitation program after closing. Households receiving assistance under this strategy may not reapply after the first home is sold, even if the City s mortgage is paid off or completely satisfied. b. Fiscal Years Covered: , and c. Income Categories to be served: Very low, Low and Moderate d. Maximum award: $21,000 e. Terms: Maximum funding amount includes a grant of up to $1,000 for project delivery costs. 1. Loan/deferred loan/grant: Deferred Payment Mortgage Loan 2. Interest Rate: 0% 3. Term: 15 years 4. Forgiveness/Repayment: Loan will be forgiven at the end of 15 years. Insufficient Profit from Sale. If it is determined that there will not be sufficient profit from a bona-fide good-faith sale of the property to repay the Deferred Payment Loan, the owner/mortgagor may request a review and recommendation - 6 -

10 from Community Services and approval of forgiveness of all or a portion of the remaining balance of the Mortgage by the Port St. Lucie City Council. In most cases a minimum amount (good faith payoff) will be required. 5. Default/Recapture: The remaining loan balance is due in the event of default, which includes sale or transfer of property or loss of homestead exemption or owner occupied status. Any amounts received from repayment of funding will be paid to the SHIP Housing Trust Fund for use in assisting another eligible household. f. Recipient Selection Criteria: Applications may be accepted all year if funding is available, or a funding cycle may be established after a notice of funding has been advertised. Recipients will be selected on a first- qualified, first served basis. This means that all information must be verified and the Certification of Income must be signed by the recipients before the file can move forward and funding can be provided. In order to maintain income and/or special needs set asides, however, advertising and selection is limited to Very Low and/or Low Income and/or Special Needs, as needed. When a waiting list is necessary, the City may give priority to extremely-low, very-low, low income, and/or special needs applicants on the list in order to maintain compliance with State guidelines relating to low income and/or special needs (defined in F.S.) set asides. Disaster Recovery applicants may be funded prior to applicants on a waiting list for other strategies. g. Sponsor/Developer Selection Criteria: No sponsors will be solicited for this strategy h. Additional Information: Applicant Qualification: Applicants must comply with the following requirements: Home Ownership: Cannot own a home at the time of application. Cash Contribution: Home buyers must provide at least $500 of their own funds toward the total cost of the home purchase transaction. Cash on hand/gifts: Verifiable cash and other assets (combined with gifts from family members, if applicable) should not exceed $15,000. (Tax deferred accounts, such as 401(k), IRA, etc. will not be listed as assets for determination of cash-on-hand but will be considered assets for determining income.) Applicants with additional assets may be asked to use amounts exceeding the maximum allowed before home purchase assistance will be disbursed. Extenuating circumstances may be considered (e.g. funds reserved for medically necessary item.) Prequalification by Lender: Applicants must be able to qualify for a mortgage loan from a member of the Lending Consortium or an approved local lender offering bond or special financing. A prequalification letter will be required before the application will be processed or selected for funding. Only those households meeting the local lending criteria will be processed. Households with credit problems will be referred to a - 7 -

11 consumer credit counseling service for assistance, Housing Debt (Affordability): Ratios for housing- expense-to-income (front-end ratio) and debt-to-income (back-end ratio) should not be less than 29% or more than 45% of a household s income. Mitigating circumstances may be considered (i.e. history of paying more for housing, etc.) Homebuyer Education: At least one of the applicants must attend and complete all sessions of the homebuyer education workshops provided by Clearpoint Credit and Counseling Solutions before closing (a total of 6 hours.) Other workshops may be approved if they are similar in number of hours and content. Condition of Home: Homes to be purchased with funding from the housing program must be inspected by a city-approved home inspection service to determine the condition of the home and to list repairs that may be eligible for completion with SHIP assistance, if any. Funding may be denied if the anticipated funds needed to repair/rehabilitate a home to be purchased exceed the amount available from the program, unless another source of funds is available to bring the home up to an acceptable condition. Subordination: In cases where SHIP clients wish to refinance their first mortgage, the City s current policy allows for a subordination of its Mortgage if the household will benefit with an interest rate and/or housing payment reduction that is sufficient to offset the costs of refinancing. The City will not subordinate for debt consolidation, and the household may not receive any cash payments in the transaction, but, if approved by SHIP program staff, funds may be paid directly to a contractor for home improvements. the City will require that its original mortgage position be maintained and that tax and insurance payments be escrowed. This policy is subject to change based on foreclosure statistics and additional information from Florida Housing Finance Corporation and/or Florida Housing Coalition. Policy changes will be posted in the Port St. Lucie Housing Assistance Program Policies and Procedures. Assumption of Mortgage: SHIP Mortgages are assumable if one of the following applies: (a) if upon the death of the last surviving Mortgagor, a person becomes the owner of the Property by virtue of (1) a remainder interest in the property created prior to the death of the last Mortgagor, or (2) a probate or other such proceeding, and that person is eligible to assume the remaining principal balance due under the Note and this Mortgage; or (b) if the property remains eligible under SHIP program guidelines and is sold to a very-low, low or moderate-income household that is eligible to assume the remaining principal balance due under the note and the mortgage. Persons qualified to assume to mortgage must occupy the property as a primary residence and qualify under current SHIP (or similar Affordable Housing) Program guidelines. Mortgage terms will remain unchanged

12 B. Comprehensive Owner Occupied Rehabilitation 3 a. Summary of Strategy: Funding for eligible owner/occupants in Port St. Lucie to assist with comprehensive rehabilitation of housing to eliminate code violations, correct safety and sanitary issues, and/or provide hazard mitigation or accessibility/retrofit improvements. Emergency rehabilitation may be included. All appliances purchased in connection with the repair/rehabilitation program will be Energy Star rated. Other energy efficient upgrades may be recommended in connection with needed repairs/rehabilitation. Households may be eligible for energy efficient replacement of items not in need of repair if there is sufficient funding. Clients may qualify for accessibility/retrofit improvements under this strategy if there is sufficient funding for them to repair their homes and provide for accessibility/retrofit improvements. If there is insufficient funding for those clients, or if the household does not require or qualify for repair funding, the Accessibility/Retrofit Strategy may assist those clients. Funding is available one time only per household. Recipients of prior repair/rehabilitation or emergency rehabilitation do not qualify for additional assistance under this strategy. Clients must have owned the home for at least one year prior to application before assistance will be provided, unless the home is being purchased with SHIP funding under the Home Purchase Assistance strategy. This assistance is not designed to be combined with the Limited Owner Occupied Rehabilitation Strategy to produce a higher funding amount. The strategies should be utilized separately, depending on the scope of the work required. At least one year shall have passed before a second strategy can be utilized unless the Community Services Director approves funding for a bonafide emergency. Manufactured homes are not eligible for rehabilitation under this strategy. b. Fiscal Years Covered: , and c. Income Categories to be served: Very Low, Low, and Moderate d. Maximum award: $52,500 e. Terms: Maximum funding amount includes a grant of up to $2,500 for project delivery costs. 1. Loan/deferred loan/grant: Deferred Payment Mortgage Loan 2. Interest Rate: 0% 3. Term: 15 years - 9 -

13 4. Forgiveness/Repayment: Loan will be forgiven on a prorated basis annually so that the outstanding balance is satisfied after 15 years. Insufficient Profit from Sale. If it is determined that there will not be sufficient profit from a bona-fide good-faith sale of the property to repay the Deferred Payment Loan, the owner/mortgagor may request a review and recommendation from Community Services and approval of forgiveness of all or a portion of the remaining balance of the mortgage by the Port St. Lucie City Council. In most cases a minimum amount (good faith payoff) will be required. 5. Default/Recapture: The remaining loan balance is due in the event of default, which includes sale or transfer of property or loss of homestead exemption or owner occupied status. Any amounts received from repayment of funding will be paid to the SHIP Housing Trust Fund for use in assisting another eligible household. f. Recipient Selection Criteria: Applications may be accepted all year if funding is available, or a funding cycle may be established after a notice of funding has been advertised. Recipients will be selected on a first- qualified, first served basis. This means that all information must be verified and the Certification of Income must be signed by the recipients before the file can move forward and funding can be provided. In order to maintain income and/or special needs set asides, however, advertising and selection is limited to Very Low and/or Low Income or Special Needs, as needed. When a waiting list is necessary, the City may give priority to extremely-low, very-low, low income, and/or special needs applicants on the list in order to maintain compliance with State guidelines relating to low income and/or special needs (defined in F.S.) set asides. Disaster Recovery applicants may be funded prior to applicants on a waiting list for other strategies. Priority will be given to: i. Emergency Repairs ii. Accessibility/Retrofit Improvements g. Sponsor/Developer Selection Criteria: No sponsors will be solicited for this strategy h. Additional Information: Applicant and Property Qualification: Applicants and property must comply with the following requirements: Cash on hand: Verifiable cash and other assets should not exceed $15,000. (Tax deferred accounts, such as 401(k), IRA, etc. will not be listed as assets for determination of cash-on-hand but will be considered assets for determining income.) Applicants with additional assets may be asked to use amounts exceeding the maximum allowed before assistance will be disbursed. Extenuating circumstances may be considered (e.g. funds reserved for medically necessary item.)

14 Amounts paid by insurance companies and/or FEMA for all or a portion of the SHIP eligible repairs must be utilized first before SHIP funds will be disbursed. Credit Worthiness: If the applicant s mortgage loan(s) or property taxes are delinquent, if a foreclosure or bankruptcy action or a Lis Pendens affecting the home has been filed, or if the applicant s current income and assets indicate that the applicant cannot sustain the housing payments and/or taxes and insurance, Community Services staff will defer funding and/or decline to add client s name to the waiting list until the delinquency has been cured, action has been cleared, and/or a change in the financial situation indicates that sustainability has been reestablished. Medical Necessity: The City may request a doctor s verification of need for any accessibility/retrofit improvements requested. Condition of Home/Inspection: Homes to be repaired/rehabilitated with funding from the housing program must, be inspected by a city-approved home inspection service to determine the condition of the home and to list repairs that are eligible for completion with SHIP assistance. City staff will, in coordination with the inspection service, choose which repairs must be accomplished and may establish the order in which the repairs must be completed. Funding may be denied if the anticipated funds needed to repair an existing home exceed the amount available from the program unless another source of funds is available to bring the home up to an acceptable condition. Clients who apply only for water-sewer connection, accessibility/retrofit or minor repairs may waive the inspection process. Subordination: In cases where SHIP clients wish to refinance their first mortgage, the City s current policy allows for a subordination of its mortgage if the household will benefit with an interest rate and/or housing payment reduction that is sufficient to offset the costs of refinancing. The City will not subordinate for debt consolidation, and the household may not receive any cash payments in the transaction, but, if approved by SHIP program staff, funds may be paid directly to a contractor for home improvements. The City will require that its original mortgage position be maintained and that tax and insurance payments be escrowed. This policy is subject to change based on foreclosure statistics and additional information from Florida Housing Finance Corporation and/or Florida Housing Coalition. Policy changes will be posted in the Port St. Lucie Housing Assistance Program Policies and Procedures. Assumption of Mortgage: SHIP Mortgages are assumable if one of the following applies: (a) if upon the death of the last surviving Mortgagor, a person becomes the owner of the Property by virtue of (1) a remainder interest in the property created prior to the death of the last Mortgagor, or (2) a probate or other such proceeding, and that person is eligible to assume the remaining principal balance due under the Note and this Mortgage; or (b) if the property remains eligible under SHIP program guidelines and is sold to a very-low, low or moderate-income household that is eligible to assume the remaining principal balance due under the Note and the Mortgage. Persons qualified to assume to Mortgage must occupy the Property as a

15 C. primary residence and qualify under current SHIP (or similar Affordable Housing) Program guidelines. Mortgage terms will remain unchanged. Limited Owner Occupied Rehabilitation (Emergency) 6 a. Summary of Strategy: Additional funding for eligible owner/occupants in Port St. Lucie to assist in addressing the following repairs/rehabilitation: Repairs/rehabilitation that was not called for at the time that comprehensive rehabilitation was completed on the home; or Repairs/rehabilitation or improvements (emergency or otherwise) that are limited in scope and do not require comprehensive rehabilitation; Funding is available one time only per household. Recipients of prior repair/rehabilitation or emergency rehabilitation may qualify for additional assistance under this strategy. The funding is not designed to be combined with the Comprehensive Owner Occupied Rehabilitation Strategy to produce a higher funding amount. The strategies should be utilized separately, depending on the scope of the work required. At least one year shall have passed before a second strategy can be utilized, unless the Community Services Director approves funding for a bona fide emergency. Manufactured homes are not eligible for rehabilitation under this strategy. b. Fiscal Years Covered: , and c. Income Categories to be served: Very Low, Low, and Moderate d. Maximum award: $15,750 Maximum funding amount includes a grant of up to $750 project delivery costs. e. Terms: 1. Loan/deferred loan/grant: Deferred Payment Mortgage Loan 2. Interest Rate: 0% 3. Term: 5 years 4. Forgiveness/Repayment: Loan will be forgiven on a prorated basis annually so that the outstanding balance is satisfied after 5 years. Insufficient Profit from Sale. If it is determined that there will not be

16 sufficient profit from a bona-fide good-faith sale of the property to repay the Deferred Payment Loan, the owner/mortgagor may request a review and recommendation from Community Services and approval of forgiveness of all or a portion of the remaining balance of the mortgage by the Port St. Lucie City Council. In most cases a minimum amount (good faith payoff) will be required. 5. Default/Recapture: Loan repayments or payoffs received according to the terms of the loan are program income. The remaining loan balance is due in the event of default, which includes sale or transfer of property or loss of homestead exemption or owner occupied status. Any amounts received from repayment of funding will be paid to the SHIP Housing Trust Fund for use in assisting another eligible household. f. Recipient Selection Criteria: Applications may be accepted all year if funding is available, or a funding cycle may be established after a notice of funding has been advertised. Recipients will be selected on a first- qualified, first served basis. This means that all information must be verified and the Certification of Income must be signed by the recipients before the file can move forward and funding can be provided. In order to maintain income and/or special needs set asides, however, advertising and selection is limited to Very Low and/or Low Income or Special Needs, as needed. When a waiting list is necessary, the City may give priority to extremely-low, very-low, low income, and/or special needs applicants on the list in order to maintain compliance with State guidelines relating to low income and/or special needs (defined in F.S.) set asides. Disaster Recovery applicants may be funded prior to applicants on a waiting list for other strategies. Priority will be given to: i. Emergency Repairs g. Sponsor/Developer Selection Criteria: No sponsors will be solicited for this strategy h. Additional Information: Applicant Qualification: Applicants must comply with the following requirements: Cash on hand: Verifiable cash and other assets should not exceed $15,000. (Tax deferred accounts, such as 401(k), IRA, etc. will not be listed as assets for determination of cash-on-hand but will be considered assets for determining income.) Applicants with additional assets may be asked to use amounts exceeding the maximum allowed before assistance will be disbursed. Extenuating circumstances may be considered (i.e. funds reserved for medically necessary item.) Amounts paid by insurance companies and/or FEMA for all or a portion of the SHIP eligible repairs must be utilized first before SHIP funds will be disbursed

17 Credit Worthiness: If the applicant s mortgage loan(s) or property taxes are delinquent, if a foreclosure or bankruptcy action or a Lis Pendens affecting the home has been filed, or if the applicant s current income and assets indicate that the applicant cannot sustain the housing payments and/or taxes and insurance, Community Services staff will defer funding and/or decline to add client s name to the waiting list until the delinquency has been cured, action has been cleared, and/or a change in the financial situation indicates that sustainability has been reestablished. Medical Necessity: The City will request a doctor s verification of need for any accessibility/retrofit improvements requested. Inspection: The City will not require inspections for limited rehab but will discuss the Comprehensive Owner Occupied Rehabilitation program and perform inspections as needed and/or upon request. Temporary relocation fees are not covered under this strategy. Subordination: In cases where SHIP clients wish to refinance their first mortgage, the City s current policy allows for a subordination of its Mortgage if the household will benefit with an interest rate and/or housing payment reduction that is sufficient to offset the costs of refinancing. The City will not subordinate for debt consolidation, and the household may not receive any cash payments in the transaction, but, if approved by SHIP program staff, funds may be paid directly to a contractor for home improvements. The City will require that its original Mortgage position be maintained and that tax and insurance payments be escrowed. This policy is subject to change based on foreclosure statistics and additional information from Florida Housing Finance Corporation and/or Florida Housing Coalition. Policy changes will be posted in the Port St. Lucie Housing Assistance Program Policies and Procedures. Assumption of Mortgage: SHIP Mortgages are assumable if one of the following applies: (a) if upon the death of the last surviving Mortgagor, a person becomes the owner of the Property by virtue of (1) a remainder interest in the property created prior to the death of the last Mortgagor, or (2) a probate or other such proceeding, and that person is eligible to assume the remaining principal balance due under the Note and this Mortgage; or (b) if the property remains eligible under SHIP program guidelines and is sold to a very-low, low or moderate-income household that is eligible to assume the remaining principal balance due under this Note and the Mortgage. Persons qualified to assume to Mortgage must occupy the Property as a primary residence and qualify under current SHIP (or similar Affordable Housing) Program guidelines. Mortgage terms will remain unchanged

18 D. Accessibility/Retrofit 11 a. Summary of Strategy: Supplements the Comprehensive Owner Occupied Rehabilitation program for accessibility/retrofit items only. The program provides for modifications to the home to provide household members with special needs increased access and/or use of their homes. These modifications may include either structural adaptations or addition of apparatus that is permanently affixed to the housing unit. Clients may qualify for Accessibility/Retrofit improvements under the Comprehensive Owner Occupied Rehabilitation program if there is sufficient funding. If there is insufficient funding for those clients, or if the household does not require or qualify for repair/rehabilitation funding, the strategy may assist those clients. Clients may apply for additional assistance one time after the original loan (for Accessibility/Retrofit or Special Needs/Retrofit) has been satisfied or forgiven if additional improvements are needed. b. Fiscal Years Covered: , and c. Income Categories to be served: Very low, Low and Moderate d. Maximum award: $15,750 e. Terms: Maximum funding amount includes a grant of up to $ for project delivery costs. 1. Loan/deferred loan/grant: Deferred Payment Mortgage Loan 2. Interest Rate: 0% 3. Term: 5 yrs. 4. Forgiveness/Repayment: Loan will be forgiven on a prorated basis annually so that the outstanding balance is satisfied after 5 years. Insufficient Profit from Sale. If it is determined that there will not be sufficient profit from a bona-fide good-faith sale of the property to repay the Deferred Payment Loan, the owner/mortgagor may request a review and recommendation from Community Services and approval of forgiveness of all or a portion of the remaining balance of the Mortgage by the Port St. Lucie City Council. In most cases a minimum amount (good faith payoff) will be required. 5. Default/Recapture:

19 Loan repayments or payoffs received according to the terms of the loan are program income. The remaining loan balance is due in the event of default, which includes sale or transfer of property or loss of homestead exemption or owner occupied status. Any amounts received from repayment of funding will be paid to the SHIP Housing Trust Fund for use in assisting another eligible household. f. Recipient Selection Criteria: Applications may be accepted all year if funding is available, or a funding cycle may be established after a notice of funding has been advertised. Recipients will be selected on a first- qualified, first served basis. This means that all information must be verified and the Certification of Income must be signed by the recipients before the file can move forward and funding can be provided. In order to maintain income and/or special needs set asides, however, advertising and selection is limited to Very Low and/or Low Income, as needed. When a waiting list is necessary, the City may give priority to extremely-low, very-low, low income, and/or special needs applicants on the list in order to maintain compliance with State guidelines relating to low income and/or special needs (defined in F.S.) set asides. Disaster Recovery applicants may be funded prior to applicants on a waiting list for other strategies. g. Sponsor/Developer Selection Criteria: No sponsors are anticipated to be solicited for this strategy. h. Additional Information: Applicant Qualification: Applicants must comply with the following requirements: Cash on hand: Verifiable cash and other assets should not exceed $15,000. (Tax deferred accounts, such as 401(k), IRA, etc. will not be listed as assets for determination of cash-on-hand but will be considered assets for determining income.) Applicants with additional assets may be asked to use amounts exceeding the maximum allowed before assistance will be disbursed. Extenuating circumstances may be considered (i.e. funds reserved for medically necessary item.) Credit Worthiness: If the applicant s mortgage loan(s) or property taxes are delinquent, if a foreclosure or bankruptcy action or a Lis Pendens affecting the home has been filed, or if the applicant s current income and assets indicate that the applicant cannot sustain the housing payments and/or taxes, Community Services staff will defer funding and/or decline to add client s name to the waiting list until the delinquency has been cured, the action has been cleared, and/or a change in the financial situation indicates that sustainability has been re-established. Medical Necessity: The City may request a doctor s verification of need for the modification requested. Inspection: The City may not require inspections for individual adaptations such as a wheel-chair ramp but will discuss the Repair/Rehabilitation programs and perform

20 inspections as needed and/or upon request. Temporary relocation fees are not covered under this strategy. Subordination: In cases where SHIP clients wish to refinance their first mortgage, the City s current policy allows for a subordination of its Mortgage if the household will benefit with an interest rate and/or housing payment reduction that is sufficient to offset the costs of refinancing. The City will not subordinate for debt consolidation, and the household may not receive any cash payments in the transaction, but, if approved by SHIP program staff, funds may be paid directly to a contractor for home improvements. The City will require that its original Mortgage position be maintained and that tax and insurance payments be escrowed. This policy is subject to change based on foreclosure statistics and additional information from Florida Housing Finance Corporation and/or Florida Housing Coalition. Policy changes will be posted in the Port St. Lucie Housing Assistance Program Policies and Procedures. Assumption of Mortgage: SHIP Mortgages are assumable if one of the following applies: (a) if upon the death of the last surviving Mortgagor, a person becomes the owner of the Property by virtue of (1) a remainder interest in the property created prior to the death of the last Mortgagor, or (2) a probate or other such proceeding, and that person is eligible to assume the remaining principal balance due under the Note and this Mortgage; or (b) if the property remains eligible under SHIP program guidelines and is sold to a very-low, low or moderate-income household that is eligible to assume the remaining principal balance due under this Note and the Mortgage. Persons qualified to assume to Mortgage must occupy the Property as a primary residence and qualify under current SHIP (or similar Affordable Housing) Program guidelines. Mortgage terms will remain unchanged. E. Water and Sewer Connection 8 a. Summary of Strategy: Designed to make housing payments more affordable by paying the initial cost to connect to water and/or sewer on the primary residence or the outstanding balance remaining from a previous water or sewer connection. Water/Sewer Connection payments will be approved for one property per household. b. Fiscal Years Covered: , and c. Income Categories to be served: Very Low, Low, and Moderate d. Maximum award: $7,600 e. Terms: 1. Loan/deferred loan/grant: Grant There is no lien placed on the property and no repayment is required

21 2. Interest Rate: N/A 3. Term: N/A 4. Forgiveness/Repayment: N/A 5. Default/Recapture: N/A f. Recipient Selection Criteria: Applications may be accepted all year if funding is available, or a funding cycle may be established after a notice of funding has been advertised. Recipients will be selected on a first- qualified, first served basis. This means that all information must be verified and the Certification of Income must be signed by the recipients before the file can move forward and funding can be provided. In order to maintain income and/or special needs set asides, however, advertising and selection is limited to Very Low and/or Low Income or Special Needs, as needed. When a waiting list is necessary, the City may give priority to extremely-low, very-low, low income, and/or special needs applicants on the list in order to maintain compliance with State guidelines relating to low income and/or special needs (defined in F.S.) set asides. Disaster Recover applicants may be funded prior to applicants on a waiting list for other strategies. Priority will be given to: i. Emergency Repairs g. Sponsor/Developer Selection Criteria: No sponsors are anticipated to be solicited for this strategy. h. Additional Information: Applicant Qualification: Applicants must comply with the following requirements: Cash on hand: Verifiable cash and other assets should not exceed $15,000. (Tax deferred accounts, such as 401(k), IRA, etc. will not be listed as assets for determination of cash-on-hand but will be considered assets for determining income.) Applicants with additional assets may be asked to use amounts exceeding the maximum allowed before assistance will be disbursed. Extenuating circumstances may be considered (i.e. funds reserved for medically necessary item.) F. Water/Sewer Assessment 8 a. Summary of Strategy: Designed to help homeowners pay the remaining balance of the assessment for water and/or sewer on their primary residence (shown as Water/Sewer Benefit on the property tax statement.) Water/Sewer Assessment Payments will be approved for one property per household. b. Fiscal Years Covered: , and

22 c. Income Categories to be served: Very-Low and Low d. Maximum award: $5,000 e. Terms: 1. Loan/deferred loan/grant: Grant There is no lien placed on the property and no repayment is required. 2. Interest Rate: N/A 3. Term: N/A 4. Forgiveness/Repayment: N/A 5. Default/Recapture: N/A f. Recipient Selection Criteria: Applications may be accepted all year if funding is available, or a funding cycle may be established after a notice of funding has been advertised. Recipients will be selected on a first- qualified, first served basis. This means that all information must be verified and the Certification of Income must be signed by the recipients before the file can move forward and funding can be provided. When a waiting list is necessary, the City may give priority to extremely-low, very-low, low income, and/or special needs applicants on the list in order to maintain compliance with State guidelines relating to low income and/or special needs (defined in F.S.) set asides. Disaster Recovery applicants may be funded prior to applicants on a waiting list for other strategies. g. Sponsor/Developer Selection Criteria: No sponsors will be solicited for this strategy h. Additional Information: Applicant Qualification: Applicants must comply with the following requirements: Cash on hand: Combined total assets of all household members cannot exceed $60,000. This does not include the principal residence, necessary personal belongings (such as a car or furniture) but does include retirement funds if they are accessible to the household member. Property: The subject property must be improved with a home. The City will not pay assessments on vacant property

23 G. Disaster Recovery 5 a. Summary of Strategy: Provides assistance to households following a disaster that is declared by the President of the United States or Governor of the State of Florida. This strategy will utilize disaster funds allocated by Florida Housing Finance Corporation and/or any portion of SHIP funding that has not already been encumbered for other strategies... Disaster Recovery funds may be used for items such as the following: i. purchase of emergency supplies for eligible households to weatherproof damaged homes; ii. interim repairs to avoid further damage; tree and debris removal required to make the individual housing unit habitable; iii. payment of insurance deductibles for rehabilitation of homes covered under homeowner s insurance policies; iv. security deposit, rental assistance for the duration allowed by Florida Office of the Governor for eligible recipients that have been displaced from their homes due to damage from the disaster event; Households without sufficient insurance to cover repair/rehab or who need down payment assistance to help with purchase of a new home may apply through the Home Purchase or Comprehensive Owner Occupied Rehabilitation programs for funding. b. Fiscal Years Covered: , and c. Income Categories to be served: Very Low, Low and Moderate d. Maximum award: $26,250 e. Terms: Maximum funding amount includes a grant of up to $1,250 for project delivery costs. 1. Loan/deferred loan/grant: Deferred Payment Mortgage Loan 2. Interest Rate: 0% 3. Term: 5 years 4. Forgiveness/Repayment: Loan will be forgiven on a prorated basis annually so that the outstanding balance is satisfied after 5 years. Insufficient Profit from Sale. If it is determined that there will not be sufficient profit from a bona-fide good-faith sale of the property to repay the Deferred Payment Loan, the owner/mortgagor may request a review and recommendation from Community Services and approval of forgiveness of