Orange County Housing Finance Authority 2211 E. Hillcrest Street Orlando, FL 32803 407-894-0014 Dear Lenders: The Orange County Housing Finance Authority is a proud member of the Florida Association of Local Housing Finance Authorities, which worked hard to encourage the Florida Legislature to enact legislation to allow housing finance authority mortgages to be exempt from the Florida documentary stamp tax. We are so pleased that the Legislature enacted Section 159.621(2), Florida Statutes, because of their efforts! The great news is that the new statute provides the exemption for mortgages made by or on behalf of a housing finance authority. The not so great news is that to qualify for the exemption, an affidavit identifying the mortgage as a housing finance authority mortgage must be recorded with each mortgage. The first mortgage payable to the Lender and the second mortgage payable to the Authority must each be recorded with their own affidavit. The affidavits can be executed by the Authority or an agent of the Authority. The undersigned has executed a certificate that designates both the lenders and the mortgagors as the agents of the Authority for purposes of executing and recording the affidavits. It is expected that the Authority Board will adopt a resolution when it next meets specifically designating both the lenders and the mortgagors as its agents for purposes of executing and recording the affidavits and ratifying and confirming the prior actions of the Executive Director with regard to designation of agents to execute and deliver the affidavits. We believe that it will be easiest for the affidavits to be executed by the mortgagors and notarized in the same manner as the signature page of the mortgages, and then recorded immediately prior to the mortgages at the time of closing. The Administrator for the Authority s Homebuyers Dream and Housing Opportunities Programs will include the form of affidavit for the first mortgages in the on-line system. The Authority s second mortgage will be revised to incorporate the affidavit as page one of the second mortgage. We are asking you as the lender (or with your loan processor), to fill out the affidavits for execution by your mortgagors. We have attached forms of the affidavits, along with detailed instructions on how to fill out the affidavits as Exhibits A and B. We know this is a change, and that it will take some time to get the process smoothed out. If you are closing a loan and have been unable to (or didn t know you needed to!) have the affidavits prepared, let us know and the Authority will send executed affidavits to the closing agent or title company. 1
Don t forget: All first mortgages reserved on or after July 1, 2018 will be exempt from the Florida documentary stamp tax (if an affidavit is recorded with the first mortgage), but are not exempt from the non-recurring intangible tax. Please remember to adjust your numbers to take this into account. All second mortgages reserved on or after July 1, 2018 will be exempt from the Florida documentary stamp tax (if an affidavit is recorded with the second mortgage), and are exempt from the non-recurring intangible tax. Please remember to adjust your numbers to take this into account. To qualify for the documentary stamp tax exemption, each mortgage must be recorded with its own affidavit. You as Lender (or your loan processor) will prepare the affidavits for execution by your Mortgagor. The form of the affidavit for the first mortgage along with instructions for completing it, is attached hereto as Exhibit A. The form of the affidavit for the second mortgage along with instructions for completing it, is attached hereto as Exhibit B. Please let your loan processors and closing agents know that the affidavit relating to each mortgage should be recorded immediately prior to the mortgage. Thank you for being a great partner! We love what you do for our community. ORANGE COUNTY HOUSING FINANCE AUTHORITY W.D. Morris Executive Director 2
EXHIBIT A - AFFIDAVIT REGARDING EXCISE TAX EXEMPTION FOR FIRST MORTGAGES AFFIDAVIT OF ORANGE COUNTY HOUSING FINANCE AUTHORITY REGARDING EXEMPTION FROM DOCUMENTARY STAMP TAX PURSUANT TO SECTION 159.621(2), FLORIDA STATUTES FOR FIRST MORTGAGE STATE OF FLORIDA COUNTY OF (1) PRINTED DIRECTLY FROM THE The undersigned authorized representative of the MORTGAGOR named below, hereby affirms: 1. That MORTGAGOR has been designated by the Orange County Housing Finance Authority (the Authority ) as its agent for purposes of providing this Affidavit in accordance with Section 159.621(2), Florida Statutes, for purposes of establishing that the Mortgage described herein is exempt from the excise tax on documents under Chapter 201, Florida Statutes. 2. That this Affidavit is being given in connection with that certain Mortgage dated (2), 20, from (3) [Names of Mortgagors] (individually or collectively the MORTGAGOR ) to (4) [Name of Lender] to secure a mortgage loan in the principal amount of $ (5), which loan provides financing for the acquisition of real property located in (6) [Name of County], Florida, at (7) [Street Address] which Mortgage shall be recorded immediately after this Affidavit. 3. That said Mortgage secures a loan that was made by or on behalf of the Authority under the provisions of Section 159.608(8), Florida Statutes. Dated this day of (8), 20. (9) Typed Name: (10) Mortgagor The foregoing instrument was acknowledged before me on (11), 20, by (12), as MORTGAGOR. (13) Notary Public--State of Florida Personally Known Produced Identification Print Notary Name: My Commission Number is: 3
Type of Identification My Commission Expires: PRINTED DIRECTLY FROM THE Instructions for completing First Mortgage Affidavit: 1. Type the name of the County where the affidavit is being signed 2. Type the date of the First Mortgage 3. Type the name(s) of the Mortgagor(s) 4. Type the name of the Lender 5. Type the (number) amount of the First Mortgage 6. Type the name of the County where the home being purchased is located 7. Type the street address of the home being purchased 8. Type the date that the First Mortgage Affidavit is executed 9. Have the Mortgagor(s) sign on this line 10. Type the name(s) of the Mortgagor(s) 11. The Notary should write or type the date that the First Mortgage Affidavit is signed before the Notary 12. The Notary should write or type the name(s) of the Mortgagor(s) who signed the First Mortgage Affidavit 13. The Notary should complete the notary form as normal for a notarized document Record the First Mortgage Affidavit immediately prior to the First Mortgage. Include the following language at the bottom of page 1 of the first mortgage: THIS MORTGAGE IS EXECUTED AND DELIVERED IN CONNECTION WITH A LOAN MADE BY OR ON BEHALF OF A HOUSING FINANCE AUTHORITY. IT IS EXEMPT FROM DOCUMENTARY STAMP TAX PURSUANT TO THE PROVISIONS OF SECTION 159.621(2), FLORIDA STATUTES UPON THE FILING OF THE ATTACHED AFFIDAVIT. 4
EXHIBIT B - AFFIDAVIT REGARDING EXCISE TAX EXEMPTION FOR SECOND MORTGAGES AFFIDAVIT OF ORANGE COUNTY HOUSING FINANCE AUTHORITY REGARDING EXEMPTION FROM DOCUMENTARY STAMP TAX PURSUANT TO SECTION 159.621(2), FLORIDA STATUTES FOR SECOND MORTGAGE STATE OF FLORIDA COUNTY OF (1) PRINTED DIRECTLY FROM THE The undersigned authorized representative of the MORTGAGOR named below, hereby affirms: 1. That MORTGAGOR has been designated by the Orange County Housing Finance Authority (the Authority ) as its agent for purposes of providing this Affidavit in accordance with Section 159.621(2), Florida Statutes, for purposes of establishing that the Mortgage described herein is exempt from the excise tax on documents under Chapter 201, Florida Statutes. 2. That this Affidavit is being given in connection with that certain Mortgage dated (2), 20, from (3) [Names of Mortgagors] (individually or collectively the MORTGAGOR ) to the Authority to secure a mortgage loan in the principal amount of $ (4), which loan provides financing for the acquisition of real property located in (5) [Name of County], Florida, at (6) [Street Address] which Mortgage shall be recorded immediately after this Affidavit. 3. That said Mortgage secures a loan that was made by or on behalf of the Authority under the provisions of Section 159.608(8), Florida Statutes. Dated this day of (7), 20. (8) Typed Name: (9) Mortgagor The foregoing instrument was acknowledged before me on (10, 20, by (11), as MORTGAGOR. 12 Notary Public--State of Florida 5
Personally Known Print Notary Name: Produced Identification My Commission Number is: Type of Identification My Commission Expires: PRINTED DIRECTLY FROM THE Instructions for completing Second Mortgage Affidavit: 1. Type the name of the County where the Second Mortgage Affidavit is being signed 2. Type the date of the Second Mortgage 3. Type the name(s) of the Mortgagor(s) 4. Type the (number) amount of the Second Mortgage 5. Type the name of the County where the home being purchased is located 6. Type the street address of the home being purchased 7. Type the date that the Second Mortgage Affidavit is executed 8. Have the Mortgagor(s) sign on this line 9. Type the name(s) of the Mortgagor(s) 10. The Notary should write or type the date that the Second Mortgage Affidavit is signed before the Notary 11. The Notary should write or type the name(s) of the Mortgagor(s) who signed the Second Mortgage Affidavit 12. The Notary should complete the notary form as normal for a notarized document Record the Second Mortgage Affidavit immediately prior to the Second Mortgage. 6