NOTICE OF FUNDING AVAILABILITY
CITY OF PALM BAY
2009/2010
STATE HOUSING INITIATIVES PARTNERSHIP PROGRAM (SHIP) FUNDING
FLORIDA HOMEBUYER OPPORTUNITY PROGRAM (FHOP)
**FHOP UPDATE**
(November 9, 2009)
The federal First Time Homebuyer Tax Credit (FTHBTC) program has been officially extended as of November 6, 2009. This extension allows for homebuyers that have an executed contract on a home on or before to April 30, 2010 which is closed on or by June 30, 2010 to apply for the tax credit.
This affects the Florida Homebuyer Opportunity Program (FLHOP) administered through HANDS Division for the fiscal year 2009-2010 due to the Legislative language for FLHOP providing that if the FTHBTC is extended, then FHLOP is automatically extended.
All FY 2009-2010 funds are required to be expended under the FLHOP strategy in the LHAP (excluding program income) through June 30, 2010.
In the extension of the FTHBTC, provisions were added to allow for a tax credit of up to $6,500 for non first time homebuyers and for higher income limits. These provisions do not apply to FHLOP due to the Legislative language restricting FLHOP funds to first time homebuyers and to the established income limits of $75,000 for a single tax filer and $150,000 for a joint tax filers
APPLICATIONS FOR THIS PROGRAM are being accepted at the Housing and Neighborhood Development office, 5240 Babcock Street, Suite 212, Palm Bay, Florida 32905
The City of Palm Bay, Brevard County Florida (SHIP) Housing Assistance Program is scheduled to receive $106,000.00 in funding from Florida Housing Finance Corporation for fiscal year 2009/2010. $10,600.00 will be reserved for funding Administrative Activities; the remaining funds will be available for the following strategy:
The Florida Homebuyer opportunity Program (FHOP) This strategy is designed in response to the legislative proviso requiring SHIP local governments to expend 2009-2010 funds to ensure that residents of the state derive the maximum possible economic benefit from the federal first time homebuyer tax credit created through The American Recovery and Reinvestment Act of 2009 by providing subordinate down payment assistance loans to first time homebuyers for owner occupied primary residences that can be repaid by the income tax refund the homebuyer is entitled to under the First Time Homebuyer Credit.
Recipient Selection Criteria: Recipients must meet the requirements of the following: The maximum income limit shall be Adjusted Gross Income of $75,000 for single taxpayer households or $150,000 for joint-filing taxpayer a household which is equal to that is permitted by the American Recovery and Reinvestment Act of 2009. Applications will be processed in the order received in the HANDS office with actual loans processed in the order certified. The City expects to be able to award 12 loans. As such, applications will be accepted until 50 have been submitted. Once sufficient certifications have occurred to match the expected funding, no further applications will be processed. If an applicant is eliminated in the certification process, the application next in line will be processed.
Maximum award is the principal balance of the loans provided and shall not exceed 10% of the purchase price as defined by the IRS or $8,000 whichever less is.
Funding will be in the form of a five year, 5% interest loan. Interest begins accruing on the date of closing. This second mortgage will be secured with a lien on the property. The lien will be removed once the loan has been repaid.
If payment is received within eighteen months of the closing date, all interest will be waived. If the loan has not been repaid after eighteen months, monthly payments are due and payable beginning on the first of the nineteenth month and on the first of each month thereafter. Payment amounts will be established such that the loan and all interest will be paid within the five year loan period. All Payments received by the city shall be considered “program income” as defined in s. 420.9071 (24) Prepayments are permitted with amounts to be allocated first toward the interest accrued during the initial eighteen months of the loan and then to reducing the principal.
If the homeowner sells, rents, transfers ownership or the property no longer serves as the primary residence, the full amount of the loan is due and payable. Filing of foreclosure may be considered grounds for default in which case the entire loan, including accrued interest, is due and payable.
Applications for FHOP will be available for pickup in the Housing and Neighborhood Development Office, 5240 Babcock Street NE, Suite 212, starting October 6, 2009 at 10:00am and during regular business hours thereafter or at City Hall. Applications will also be available online at http://www.palmbayflorida.org.
For additional information contact the Housing and Neighborhood Development Services Office 321-952-3429. |
