SUBJECT:
Title
Request Approval of Agreement Between Marion County and Homeowner for State Housing Initiatives Partnership Housing Rehabilitation and Selection of Payment Option (Budget Impact - Neutral; not to exceed $150,000)
Body
INITIATOR: DEPARTMENT:
Cheryl Martin, Director Community Services
DESCRIPTION/BACKGROUND:
On April 16, 2019, the Board of County Commissioners approved a housing replacement program through Community Services for homeowners whose homes have been declared unsafe or beyond repair by a licensed professional, such as a fire marshal, engineer, or building official. Funding for these projects may come from the State Housing Initiatives Partnership (SHIP), Community Development Block Grant (CDBG), or HOME Initiative Partnership (HOME). Community Services is required to seek direction from the Board for any project that qualifies for this program, as each situation is unique and the specific requirements may vary based on individual needs.
Ms. Jacobs, whose home is located at 7269 SE 36th Avenue, Ocala, FL 34480, has been referred to Community Services, and is eligible for assistance under the Marion County SHIP program. Her site-built home has been deemed uninhabitable, leaving her homeless. She is currently living in a recreational vehicle (RV) on her property. Ms. Jacobs will be responsible for securing a replacement manufactured home, with help from Community Services as outlined in the attached agreement. A SHIP Mortgage and Note will be filed with the Marion County Clerk of Court for the amount of assistance, not to exceed $150,000. Any amount above $150,000 will be the responsibility of the homeowner. There will be no prepayment penalty applied if loan amount paid in full prior to terms. The Board is being asked to consider the following payment options for the loan:
A. Monthly payment on 50% of the loan amount over 30 years, plus additional payment for taxes and insurance to be deposited into an escrow account.
Example: Half of $150,000 in assistance to be repaid over 30 years:
$150,000 / 2 = $75,000 / 30 years = $2,500 / 12 months = $208.34 monthly (plus 1/12th real estate taxes and homeowner’s insurance to be added to each monthly payment, recalculated annually).
B. Monthly payment on 50% of the loan amount over 30 years, based on 30% of annual gross income, to include payment for taxes and insurance to be deposited into an escrow account.
Example: Half of $150,000 in assistance to be repaid over 30 years using 30% of an annual income of $18,000 = $5,400 paid annually:
$5,400 / 12 = $450.00 monthly (deducting 1/12th real estate taxes and homeowner’s insurance from each monthly payment, recalculated annually).
C. No mortgage payment of the loan amount over 30 years, but monthly payment for taxes and insurance to be deposited into an escrow account.
Example: 0% payment towards $150,000 over 30 years
(Homeowner will be required to pay monthly 1/12th of real estate taxes and homeowner’s insurance, recalculated annually.)
Considering Ms. Jacobs’ income, Community Services recommends Option B. Since the County will maintain the mortgage, Community Services will collect payments for homeowner’s insurance and taxes to prevent tax delinquency.
This agenda item also requests authorization for the Chairman to make amendments to this agreement, as long as the funding amount does not increase and the payment options are consistent with the Board’s direction.
BUDGET/IMPACT:
Neutral; not to exceed $150,000
RECOMMENDED ACTION:
Recommended action
Motion to approve Option B; approve and authorize Chairman and Clerk to execute all necessary documentation for the Agreement between Marion County and Ms. Jacobs for SHIP funding not to exceed $150,000; and authorize the Chairman to enter into amendments to the Agreement so long as the amount of funding and the payment options remain unchanged.
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