Section 67-58.100 - Terms of the Loans to Eligible Persons(1) CWHIP loans to Eligible Persons shall be for a period of not more than 30 years. The loan term may exceed 30 years as required to be coterminous with the first mortgage or if otherwise approved by the Board. (a) For forgivable loans, the loan, including the accruing 1 percent simple interest per annum, shall be forgiven pro-rata each year as long as the set-aside unit remains in compliance.(b) For loans that are not forgivable, the repayment terms shall be at 3 percent interest fully amortizing for the term of the loan.(2) The CWHIP loan to an Eligible Person should not be in lower than second lien position; however, it may occupy a lien position lower than second if another source of down payment assistance from a local government is provided to the Eligible Person in an amount that exceeds the CWHIP loan.(3) In no instance can the CWHIP loan be combined with any other form of Corporation down payment assistance funds provided to the Eligible Person.(4) Units must be sold to Eligible Persons that qualify at the time of purchase contract execution. Eligible Persons must agree to occupy the unit as their principal residence throughout the Affordability Period or transfer the property in accordance with the resale restrictions throughout the Affordability Period.(5) Loans to Eligible Persons shall be evidenced by a properly executed note and secured by a properly executed and recorded mortgage provided by the Corporation.(6) The Eligible Person must maintain replacement cost hazard insurance naming the Corporation as an additional insured.(7) A mortgagee policy of title insurance in the amount of the CWHIP loan to the Eligible Person must be provided naming the Corporation as an additional insured.(8) The Corporation will consider resubordinating its existing mortgage loan to an Eligible Person 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 Eligible Person. Eligible Persons requesting resubordination are subject to the following:(a) The Eligible Person must have resided in the unit for at least one (1) year prior to requesting the resubordination;(b) No additional debt can be refinanced into the new first mortgage with the exception of home repairs or improvements; and,(c) The Eligible Person cannot receive any cash out as a result of the refinancing.(9) Any Eligible Person requesting resubordination 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 resubordination, 50 percent of the processing fee will be returned to the Eligible Person. Failure to submit the appropriate documentation and fees may result in a delay in receiving the resubordination agreement.(10) Eligible Persons must comply with all deed restrictions including those regarding resale of the set-aside unit. Before a unit may be resold, the potential purchasers must submit to the Credit Underwriter all documentation necessary for the Credit Underwriter to determine that the potential purchaser qualifies as an Eligible Person. In addition, the Credit Underwriter must determine that the sales price for that set-aside unit is not more than 90 percent of the median sales price for that type of unit in that county, or the statewide median sales price for that type of unit, whichever is higher. The Credit Underwriter must also verify that the potential purchaser will occupy the set-aside unit as their primary residence.(11) The Corporation shall acquire real and personal property or any interest in the Project if that acquisition is necessary to protect any loan; sell, transfer, and convey any such property to an Eligible Person 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 Project for occupancy by Eligible Persons.Fla. Admin. Code Ann. R. 67-58.100
Rulemaking Authority 420.5095 FS. Law Implemented 420.5095 FS.
New 12-17-06, Amended 12-23-07.New 12-17-06, Amended 12-23-07.