Definitions, Credit Underwriting and Loan Procedures, Sale or Transfer of a Project, Loan Servicing

FLORIDA HOUSING FINANCE CORPORATION
Departmental

RULE NO: RULE TITLE
67-58.002: Definitions
67-58.020: Credit Underwriting and Loan Procedures
67-58.040: Sale or Transfer of a Project
67-58.060: Loan Servicing

NOTICE OF CHANGE

Notice is hereby given that the following changes have been made to the proposed rule in accordance with subparagraph 120.54(3)(d)1., F.S., published in Vol. 32 No. 42, October 20, 2006 issue of the Florida Administrative Weekly.

67-58.002 Definitions.

(1) through (15) No change.

(16) “Essential Services Personnel” means persons in need of affordable housing who are employed in occupations or professions in which they are considered essential services personnel, as defined by each county and eligible municipality within its respective local housing assistance plan pursuant to Section 420.9075(3)(a), F.S.  For the purposes of CWHIP, Essential Services Personnel must meet the income requirements set forth in the definition of Workforce Housing as set forth in subsection 26 of this section.

(17) through (26) No change.

67-58.020 Credit Underwriting and Loan Procedures.

(1) through (11) No changes.

(12) The debt service coverage for the CWHIP loan and all superior mortgages is as follows:

(a) A minimum of 1.0 when the CWHIP loan meets the criteria of paragraph 67-58.030(3)(a), F.A.C.;

(b) A minimum of 1.10 for CWHIP loans not eligible for forgiveness; and

(c) The maximum debt service coverage shall be 1.60 for all CWHIP loans. The minimum debt service coverage shall be 1.10 for the CWHIP loan, including all superior mortgages. The maximum debt service coverage shall be 1.60 for the CWHIP loan, including all superior mortgages.

(13) through (19) No change.

(20) The Credit Underwriter shall require an operating deficit guarantee to be released upon the following:

(a) For CWHIP loans which meet the criteria of paragraph 67-58.030(3)(a), F.A.C., achievement of a minimum debt service coverage ratio of 1.0 for a minimum of 6 consecutive months; and

(b) For CWHIP loans not eligible for forgiveness, achievement of a minimum debt service coverage ratio of 1.10 for a minimum of 6 consecutive months. The Credit Underwriter shall require an operating deficit guarantee, to be released upon achievement of 1.10 debt service coverage for a minimum of 6 consecutive months for the CWHIP loan and all superior mortgages.

(21) through (27) No change.

67-58.040 Sale or Transfer of a Project.

(1) No change.

(2) The proposed transferee and release of transferor receives a favorable recommendation from the Credit Underwriter as satisfying the criteria stated in the Credit Underwriter’s report; meeting the stated purposes of the Corporation; complying with all legal requirements of the Corporation; and subject to the approval by the Board.

67-58.060 Loan Servicing.

(1) through (4) No change.

(5) Any sale, conveyance, assignment, or other transfer of interest or the grant of a security interest in all or any part of the title to the Project other than a superior mortgage shall be subject to the Corporation’s prior written approval. Such written approval shall be granted upon demonstration of compliance with the provisions of Rule 67-58.040, F.A.C.

(6) through (7) No change.

THE PERSON TO BE CONTACTED REGARDING THE CHANGES TO THE PROPOSED RULE IS: Bridget Warring, Homeownership Programs Manager, Florida Housing Finance Corporation, 227 North Bronough Street, Tallahassee, Florida 32301, [phone]