Section 67-25.002 - Definitions(1) "Act" means the Florida Housing Finance Corporation Act, as found in Chapter 420, Part V, F.S.(2) "Acquisition Price" means the cost of acquiring a single-family residence from the seller as a completed residential unit.(3) "Annualized Current Income" means the mortgagor's annualized gross income. Annualized current gross income is current gross monthly income multiplied by twelve (12). Current gross monthly income is the sum of monthly gross pay; any additional income from overtime, part-time employment, bonuses, dividends, interest royalties, pensions, Veterans Administration (VA) compensation, net rental income, etc.; and other income (such as alimony, child support, public assistance, sick pay, social security benefits, unemployment compensation, income received from trusts, and income received from business activities or investments.)(4) "Allocation Amount" means the aggregate principal amount of qualified mortgage loans which each participant may submit for purchase by the Corporation.(5) "Appraisal" means an appraisal of a residence prepared by a qualified appraiser.(6) "Average Area Purchase Price" means the average purchase price of single-family residences in the county wherein the single-family residence is located.(7) "Bonds" or "Revenue Bonds" means the bonds or notes of the Corporation issued to finance the qualified mortgage loans.(8) "Builder" means any person, corporation, partnership or other business entity properly licensed by a lawful government authority to construct residential or commercial buildings or any related entity of a builder. Related entity when used in connection with the term "builder" shall mean any member of the immediate family of a builder, or any general partner of a builder, or any officer, director, trustee, employee or other person directly or indirectly holding 10 percent or more of the outstanding voting interest of a builder, or any person, trustee, corporation, partnership, trust, joint venture, or other entity controlling, controlled by, or under common control with a builder. A 10 percent or more voting or capital contribution shall be presumed to be a controlling or common control interest for purposes herein.(9) "1954 Code" means the Internal Revenue Code of 1954, as amended, and any rules and regulations promulgated thereunder.(10) "Code" means the Internal Revenue Code of 1986, as amended, and any rules and regulations promulgated thereunder.(11) "Commitment" means a binding written commitment by a participant, in the form customarily used by a participant in its owner-occupied home lending practice or in a form customarily used in the mortgage lending industry to a particular eligible borrower to make a qualified mortgage loan of a qualified single-family residence. Each commitment shall be for a stated period of time, for a stated amount, and for a stated interest rate established for the program.(12) "Conventional Mortgage Loan" means a Mortgage Loan other than an FHA Insured Mortgage Loan, USDA-RD Guaranteed Mortgage Loan, VA Guaranteed Mortgage Loan or HUD Section 184 Guaranteed Mortgage Loan, satisfying the requirements of Freddie Mac, FannieMae or a private mortgage insurance provider.(13) "Correspondent Lender" means a lender which does not meet all of the qualification requirements for designation as, or has not made an Application as a Participating Lender pursuant to the terms of the Mortgage Purchase Agreement, but wishes to originate loans under the Program under an agreement executed by a Participating Lender, wherein such Correspondent Lender is approved by the Participating Lender to originate and sell, transfer, or assign to the Participating Lender, Mortgage Loans under the Indenture.(14) "Eligible Person or Families" or "Eligible Borrower" means a person or persons or family or families:(a) Who intend to permanently reside as a household in the Home as their principal single-family residence;(b) Whose total annual family income does not exceed the appropriate maximum annual family income established by the Corporation under the specific Single-Family Mortgage Revenue Bond program for which a qualified mortgage loan is being applied; and, (c) To the extent required by federal law with respect to each person who purchases a single-family residence not located within a targeted area, each such person who is executing the mortgage is a first time home buyer.(15) "Eligible Properties" or "Home" means single-family attached or detached residential units: (a) That are financed by Qualified Mortgage Loans whose acquisition prices do not exceed the maximum acquisition prices as defined in subsection 67-25.002(23), F.A.C., of this rule;(b) Which are taxed as real property under the laws of the State of Florida and is located within the State, including a condominium unit and a manufactured home meeting conventional or FHA standards, which is acceptable to any insurer providing private mortgage insurance, FHA, VA or RD;(c) That may consist of two-, three-, four-family dwelling units and all of which units were first occupied as homes at least five (5) years before the Loan with respect to such Home which: 1. Is designed and intended primarily for residential housing,2. Is determined by a qualified appraisal to have an expected useful life of not less than 30 years or term of the First Mortgage, whichever is less; and,3. Will be occupied by the owner as his or her principal residence within 60 days after financing is provided.(16) "Existing Home" means any residential dwelling which has been occupied and is not considered new construction.(17) "FHA" means the Federal Housing Administration of the U.S. Department of Housing and Urban Development.(18) "FHA Insurance" means FHA mortgage insurance on residences issued under one of the following FHA programs pursuant to the National Housing Act of 1937: (a) Section 203(b) - home unsubsidized;(b) Section 234(c) - condominiums;(c) Section 203(v) - veterans status.(19) "First Time Home Buyer" means eligible persons or families, except eligible persons or families acquiring a single-family residence in a targeted area, who have not had an ownership interest in a principal single-family residence at any time during the preceding 3-year period prior to the date the mortgage is executed, other than a construction period loan, a bridge loan or other similar temporary initial financing with a term generally not exceeding 24 months with respect to the single-family residence.(20) "Lender Guide" means the guide prepared by the Servicer for the origination and delivery of Mortgage Loans to be purchased by the Servicer and the eligibility, credit and security underwriting standards applicable to the Single Family Bond Program.(21) "Low Income" means 80 percent of the median income for the county in which the single-family residence is located or of the median income of the state, whichever is greater.(22) "Maximum Acquisition Price" means the maximum purchase price of a Single Family Residence, as prescribed in the IRS Revenue Procedures 2004-24, hereby incorporated by reference. The Acquisition Price Limits are also subject to the FHA/VA/RD limits for the counties, hereby incorporated by reference. Copies of these documents may be obtained by contacting the Single Family Bonds Program Administrator at 227 North Bronough Street, Suite 5000, Tallahassee, FL 32301-1329.(23) "Maximum Annual Family Income" means, with respect to Mortgage Loans originated on new and existing Single Family Residences, the annual family income may not exceed 115% (or 140% in targeted areas) of the state or local median income, whichever is greater as required by federal law. Maximum annual family income limits are established by the Corporation under a specific bond program as set forth in the Program Documents.(24) "Middle Income" means 150 percent of the median income for the county in which the single-family residence is located or of the median income of the state, whichever is greater.(25) "Moderate Income" means 120 percent of the median income for the county in which the single-family residence is located or of the median income of the state, whichever is greater.(26) "Mortgage" means the instrument securing a mortgage loan which creates a first lien on a single-family residence subject to permitted encumbrances.(27) "Mortgage Loan" means an interest-bearing obligation secured by a mortgage constituting a first lien on a Single Family Residence in the State which is in the form of a mortgage or other instrument approved by the FHA in the case of an FHA insured loan, VA in the case of a loan guaranteed by VA, RD in the case of a loan guaranteed by RD, FannieMae or Freddie Mac in the case of a conventional loan, or as approved by Florida Housing for other loans. The mortgage must incorporate the Tax-Exempt Financing Rider in the form in the Lender Guide and which meets the requirements set forth in the Master Mortgage Purchase Agreement.(28) "Mortgage Note" means the then-effective form of mortgage note required by FHA for FHA insured loans and the form required by VA for VA guaranteed loans, and the form required by Fannie Mae or Freddie Mac for conventional loans and by RD for RD loans, as applicable, with appropriate riders, executed to evidence the mortgagor's obligation to repay the Mortgage Loan.(29) "MCC" means Mortgage Credit Certificate, which shall not exceed 20% of the Eligible Person's annual mortgage interest paid, not to exceed $2,000.(30) "New Construction" means a residential dwelling unit which has not previously been occupied.(31) "Participating Lender" means the entity signing a Master Mortgage Purchase Agreement and the applicable Supplements to the Master Mortgage Purchase Agreement, hereby incorporated by reference. A copy of this document may be obtained by contacting the Single Family Bonds Administrator at 227 North Bronough Street, Suite 5000, Tallahassee, FL 32301-1397. By virtue of executing the Master Mortgage Purchase Agreement represents that it is a home mortgage lending institution or entity: (a) Participating in the local private home lending market;(b) That is an FHA-approved mortgagee (with direct endorsement underwriting authority preferred), or a VA-approved lender (with automatic approval authority preferred), or an RD-approved lender (unless waived by the Corporation or its designee);(c) With respect to Conventional Mortgage loans, is a FannieMae or Freddie Mac approved lender in good standing, has errors and omissions coverage of at least $300,000, meets the requirements of the Corporation or its designee with respect to financial status and is acceptable to a FannieMae or Freddie Mac PMI Insurer;(d) Which can make the representations and warranties and covenants set forth in the Master Mortgage Purchase Agreement; and,(e) Which has agreed to and will originate Mortgage Loans itself or through Correspondent Lenders.(32) "Single-Family Bond Program" means the Corporation's Single-Family Mortgage Revenue Bond Program pursuant to which a trustee, on behalf of the Corporation, will purchase Qualified Mortgage Loans from the participating lenders or obligations secured by Qualified Mortgage Loans from Qualified Lending Institutions.(33) "Qualified Appraiser" means an individual or firm that is qualified as an appraiser by the society of real estate appraisers or the American Institute of Real Estate Appraisers and acceptable or approved by FHA, VA, FannieMae, Freddie Mac or any private mortgage insurance provider to provide appraisal reports.(34) "Qualified Lending Institution" means any bank or trust company, mortgage banker, savings bank, credit union, national banking association, savings and loan association, building and loan association, insurance company, the First Housing Development Corporation of Florida, or other financial institution or governmental Corporation authorized to transact business in the state of Florida which institution customarily provides services in the financing of mortgages for real property in Florida. All Qualified Lending Institutions must be qualified FHA, VA, FNMA or FHLMC originators and servicers as required by the program documents.(35) "Qualified Mortgage Loan" means any loan under the Corporation programs made to an eligible borrower and evidenced by a mortgage note which is secured by a related mortgage on the eligible property.(36) "Single-Family Residence" means a residential unit used as a single-family residence, which is taxed as real property under the laws of the state and is located in the State, including a condominium unit and a manufactured home meeting conventional or FHA standards, which is acceptable to any insurer providing private mortgage insurance, under the program or FHA, VA or RD. The dwelling structure may consist of two-, three- or four-family dwelling units, one unit of which is to be occupied by the mortgagor of the units and all of which units were first occupied as homes at least five (5) years before the Loan with respect to such Home which:(a) Is designed and intended primarily for residential housing;(b) Is determined by qualified appraisal as provided herein to have an expected useful life of not less than 30 years or the term of the mortgage, whichever is less;(c) Will be occupied by the owner as his or her principal residence within a reasonable time after financing is provided. For purposes of this subparagraph 60 days shall be deemed a reasonable time;(d) Acquisition price does not exceed the maximum acquisition price; and,(e) Appurtenant land reasonably maintains the basic livability of the residence and will not be used for business purposes to generate additional income to the Eligible Borrower, (including child care services on a regular basis for compensation) unless such income is used to qualify the borrower for the loan.(37) "Targeted Area" means those areas within the State listed as Federally Designated Census Tracts, Areas of Chronic Economic Distress (if any) and areas in need of economic revitalization as determined by local government officials and adopted by Resolution, hereby incorporated by reference. A copy of the listing of such areas can be obtained by contacting the Single Family Bonds Program Administrator at 227 North Bronough Street, Suite 5000, Tallahassee, FL 32301-1329.(38) "VA" means the Department of Veterans Affairs, an agency of the United States of America.Fla. Admin. Code Ann. R. 67-25.002
Rulemaking Authority 420.507(12), (24) FS. Law Implemented 420.509, 420.509(11)(c) FS.
New 4-15-87, Formerly 9I-25.002, Amended 12-16-03, 2-2-05.New 4-15-87, Formerly 9I-25.002, Amended 12-16-03, 2-2-05.