(1) The HOME loan shall be assumable upon
Development sale, transfer or refinancing if the following conditions are met:
(a) The proposed transferee meets all
specific Applicant identity criteria which were required as conditions of the
original loan;
(b) The proposed
transferee agrees to maintain all set-asides and other requirements of the HOME
loan for the period originally specified;
(c) The proposed transferee agrees to pay all
loan servicing and compliance monitoring fees through the end of the HOME LURA;
and,
(d) The proposed transferee
and Application receives a favorable recommendation from the Credit Underwriter
and approval by the Corporation's Board of Directors.
All assumption requests must be submitted in writing to the
Special Assets Director and contain the specific details of the transfer and
assumption. In addition to any related professional fees, the Corporation shall
charge a non-refundable assumption fee as of one-tenth of one percent of the
HOME loan principal amount. The applicable fee will be determined by the rule
in effect at the time of the assumption request.
(2) If the Development is sold and the
proposed transferee does not meet the criteria for assumption of the loan, the
HOME loan shall be repaid from the proceeds of the sale. If there will be
insufficient funds available from the proposed sale of the Development, the
HOME loan shall not be satisfied until the Corporation has received:
(a) An appraisal prepared by an appraiser
selected by the Corporation indicating that the purchase price for the
Development is reasonable and consistent with existing market
conditions;
(b) A certification
from the Applicant that the purchase price reported is the actual price paid
for the Development, as supported by a copy of the final executive purchase and
sale agreement, and that no other consideration passed between the parties, as
supported by a draft and final closing statement, and that the income reported
to the Corporation during the term of the loan was true and accurate;
and,
(c) A certification from the
Applicant that there are no Development funds available to repay the loan and
the Applicant knows of no source from which funds could or would be forthcoming
to pay the loan.
(d) The proposed
transferee will pay an amount equal to the present value of the annual
compliance monitoring fee for the years for which the Development will have a
set-aside for Very Low-Income persons or households beyond the repayment date.
Such amount shall be reduced by the amount of any compliance monitoring fees
collected by the Corporation for the Development for that period, provided:
1. The compliance monitoring fee covers some
or all of the period following the anticipated HOME repayment date;
and,
2. The Development has
substantially equivalent set-asides for Very Low-Income persons or households
mandated through another program of the Corporation for which the compliance
monitoring fee was collected.
(3) The Corporation may renegotiate and
extend the loan in order to extend or retain the availability of housing for
the target population. Such renegotiations shall be based upon:
(a) Performance of the Applicant during the
HOME loan term;
(b) Availability of
similar housing stock for the target population in the area;
(c) Documentation and certification by the
Applicant that funds are not available to repay the Note upon
maturity;
(d) A plan for the
repayment of the loan at the new maturity date;
(e) Assurance that the security interest of
the Corporation will not be jeopardized by the new term(s); and,
(f) Industry standard terms which may include
amortizing loans requiring regularly scheduled payments of principal and
interest.
All loan renegotiation requests must be submitted in
writing to the Special Assets Director and contain the specific details of the
renegotiation. In addition to any related professional fees, the Corporation
shall charge a nonrefundable renegotiation fee of one-half of one percent of
the HOME loan principal amount. The applicable fee will be determined by the
rule in effect at the time of the renegotiation request.
All loan extension requests must be submitted in writing to
the Special Assets Director and contain the specific details of the extension.
In addition to any related professional fees, the Corporation shall charge a
non-refundable extension fee of one-tenth of one percent of the HOME loan
principal amount. The applicable fee will be determined by the rule in effect
at the time of the extension request.
(4) The Corporation will recommend that the
Board approve requests for mortgage loan refinancing only if Development cash
flow is improved, the Development's economic viability is maintained, the
security interest of the Corporation is not adversely affected, and the Credit
Underwriter provides a positive recommendation.
(5) The Corporation will recommend that the
Board deny any requests for mortgage loan refinancing which require extension
of the HOME loan term or otherwise adversely affect the security interest of
the Corporation unless the criteria outlined in subsection
67-48.0205(3),
F.A.C., are met, the Credit Underwriter recommends that the approval of such a
request is crucial to the economic survival of the Development or unless the
Board determines that public policy will be better served by the extension as a
result of the Applicant agreeing to further extend the Compliance Period or
provide additional amenities or resident programs suitable for the resident
population. Further, the Corporation will recommend that the Board limit any
approved extension to a minimum term which makes the Development feasible and
which does not exceed an industry standard term.
All requests which only require subordination of the
regulatory agreements must be submitted in writing to the Special Assets
Director and contain the specific details of the subordination. In addition to
any related professional fees, the Corporation shall charge a non-refundable
subordination fee of $1,000 for each regulatory agreement to be subordinated.
The applicable fee will be determined by the rule in effect at the time of the
subordination request.
All requests which only require extension of the
affordability period under the regulatory agreements must be submitted in
writing to the Special Assets Director and contain the specific details of the
extension. In addition to any related professional fees, the Corporation shall
charge a non-refundable extension fee of $1,000 for each extension of the
regulatory agreement. The applicable fee will be determined by the rule in
effect at the time of the extension request.
Notes
Fla. Admin.
Code Ann. R. 67-48.0205
Rulemaking Authority
420.507,
420.508 FS. Law Implemented
420.5089(7), (8), (9) FS.
New 12-23-96, Amended
1-6-98, Formerly 9I-48.0205, Amended 11-9-98, Repromulgated 2-24-00, Amended
2-22-01, Repromulgated 3-17-02, 4-6-03, 3-21-04, 2-7-05, 1-29-06, Amended
4-1-07, Repromulgated 3-30-08, 8-6-09, 11-22-11, Amended 10-9-13, Amended by
Florida
Register Volume 40, Number 185, September 23, 2014 effective
10/8/2014, Amended by
Florida
Register Volume 42, Number 169, August 30, 2016 effective
9/15/2016,
Repromulgated by
Florida
Register Volume 43, Number 090, May 9, 2017 effective
5/24/2017, Amended
by
Florida
Register Volume 44, Number 124, June 26, 2018 effective
7/8/2018, Amended by
Florida
Register Volume 45, Number 123, June 25, 2019 effective
7/11/2019, Amended
by
Florida
Register Volume 46, Number 112, June 9, 2020 effective
6/23/2020,
Repromulgated by
Florida
Register Volume 47, Number 086, May 4, 2021 effective
5/18/2021, Amended
by
Florida
Register Volume 48, Number 120, June 21, 2022 effective
7/6/2022, Repromulgated by
Florida
Register Volume 49, Number 114, June 13, 2023 effective
6/28/2023.