The purpose of this Rule Chapter is to establish the procedures by which the Corporation shall develop eligibility criteria, administer the Application process, determine loan amounts and make mortgage loans for existing homeowners. The Rule ...

 

FLORIDA HOUSING FINANCE CORPORATION

RULE NO.: RULE TITLE:
67-59.001: Purpose
67-59.005: Definitions
67-59.010: Programs
67-59.020: Eligibility for UMAP or UMAP/MLRP
67-59.030: Eligibility for MLRP Only
67-59.040: Application
67-59.050: Form of Assistance
67-59.060: Partial Payment
67-59.070: Quarterly Reviews

PURPOSE AND EFFECT: The purpose of this Rule Chapter is to establish the procedures by which the Corporation shall develop eligibility criteria, administer the Application process, determine loan amounts and make mortgage loans for existing homeowners. The Rule Development workshop will be held to receive comments and suggestions from persons relative to the development of eligibility and program requirements for the Hardest Hit Fund Program.

SUMMARY: Florida Housing Finance Corporation (“Florida Housing” or “Corporation”) received Hardest Hit Funds from the United States Department of Treasury to create and administer foreclosure prevention assistance programs that address the unique issues of the state of Florida.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein:

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 420.507(33) FS.
LAW IMPLEMENTED: 420.507(33) FS.

A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:

DATE AND TIME: September 14, 2012, 10:00 a.m.

PLACE: Housing Finance Corporation, 227 North Bronough Street, 6th Floor Seltzer Room, Tallahassee, Florida 32301. The hearing will be accessible via phone at 1(888)808-6959, Conference Code #9884197.

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Blake Carson-Polston, [phone]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULES IS: David R. Westcott, Director of Homeownership Programs, Florida Housing Finance Corporation, 227 North Bronough Street, Suite 5000, Tallahassee, Florida 32031-1329, [phone]

 

THE FULL TEXT OF THE PROPOSED RULES IS:

 

67-59.001 Purpose and Intent.

In 2010, the United States Department of the Treasury (“US Treasury”) created the Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets (“Hardest Hit Fund”) and allocated funds under the Emergency Economic Stabilization Act of 2008 (“EESA”) to Florida and other states. Florida Housing was directed by US Treasury to create and administer foreclosure prevention assistance programs and to use a portion of these funds specifically for targeted unemployment programs that provide temporary assistance to eligible homeowners. Florida Housing’s use of these funds is governed by written agreements with US Treasury. The Agreements, FHHF-01, Rev 7/12, are hereby adopted and incorporated by reference. Copies may be obtained at no cost, by contacting Florida Housing, HHF program at [phone].

 

Rulemaking Authority 420.507(33) FS. Law Implemented 420.507(33) FS. History–New_________.

 

67-59.005 Definitions.

(1) “Applicant” means a person who has applied for Hardest Hit Fund assistance.

(2) “Florida Housing” means the Florida Housing Finance Corporation as defined in Section 420.503, Florida Statutes.

(3) “Hardest Hit Fund” means the Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets as established by the US Treasury.

(4) “Programs” mean the Unemployment Mortgage Assistance Program (UMAP) and the Mortgage Loan Reinstatement Program (MLRP) created under the Hardest Hit Fund.

(5) “US Treasury” means the United States Department of the Treasury.

(6) “Unencumbered Assets” means assets including savings, checking and money market accounts, certificates of deposit, stocks, bonds, mutual funds, taxable investment accounts and cash, but does not include qualified retirement accounts such as an IRA, 401(k), 403(b) and 457 and Keough Accounts. It also does not include qualified education accounts such as a Florida Prepaid College Plan, 529 accounts and Coverdell Education Savings Accounts.

 

Rulemaking Authority 420.507(33) FS. Law Implemented 420.507(33) FS. History–New_________.

 

67-59.010 Programs.

The following Programs are available under the Hardest Hit Fund:

(1) Unemployment Mortgage Assistance Program (UMAP) will provide up to the lesser of 12 months or $24,000 in payments to the mortgage servicer to assist eligible unemployed or underemployed Applicants with their first mortgage until they can resume payments on their own.

(2) Mortgage Loan Reinstatement Payment (MLRP) Program will provide up to $25,000 ($18,000 when used in conjunction with UMAP) towards mortgage arrearages for eligible Applicants.

 

Rulemaking Authority 420.507(33) FS. Law Implemented 420.507(33) FS. History–New_________.

 

67-59.020 Eligibility for UMAP or UMAP/MLRP.

To be eligible for assistance under the UMAP Program or the MLRP Program when used in conjunction with the UMAP Program:

(1) The Applicant must document that he or she is a borrower or co-borrower on the mortgage loan and document that he or she:

(a) Has suffered a temporary employment-related hardship through no fault of his or her own;

(b) Is a Florida resident;

(c) Occupies the property as his or her primary residence;

(d) Has a total household income, adjusted for household size, that is below 140% of the county area median income. The Area Median Income List, AMI-01, Rev. 7/12, for counties in Florida is hereby adopted and incorporated by reference. Copies may be obtained at no cost, by contacting Florida Housing, HHF program at [phone].

(e) Does not have Unencumbered Assets in excess of $5,000 or three times the amount of their monthly payment of principal, interest, taxes, insurance and association dues (PITIA), whichever is greater;

(f) Has a total monthly housing debt greater than 31% of the gross monthly household income;

(g) Does not have a bankruptcy that has not been discharged or dismissed;

(h) Has not been convicted of a mortgage related felony in the last ten years; and

(i) Does not own more than one property other than their primary residence.

(2) The Applicant must document that his or her primary residence:

(a) Is located in Florida;

(b) Is a single family home, a townhouse, a condominium where financial reporting for the condominium association, pursuant to Section 718.111(13), F.S., for the most recent two years is provided by the Applicant, a 1 to 4 family home where the owner occupies one unit or a mobile or manufactured home on a permanent foundation;

(c) Is not abandoned, vacant or condemned;

(d) Is not the subject of any pending litigation, except for a mortgage foreclosure action by the first mortgage servicer.

(3) The Applicant must document that the mortgage loan for his or her primary residence:

(a) Is serviced by a regulated financial institution, Habitat for Humanity, the United States Department of Agriculture or other servicer whose servicing activities are regulated by the State of Florida or the United States Government;

(b) Has an outstanding principal balance that does not exceed $400,000; and

(c) Is in first lien position.

(4) Procedures for determining eligibility are detailed in the Florida Hardest Hit Fund Procedures Manual, HHFM-01, Rev. 6/12, which is hereby adopted and incorporated by reference. Copies may be obtained at no cost, by contacting Florida Housing, HHF program at [phone].

(5) Should it be determined at any time that an Applicant has provided false or misleading information in an attempt to improperly obtain Hardest Hit Fund assistance, the Applicant will be deemed ineligible for all Programs and the matter will be referred to the US Treasury and other authorities, as appropriate.

 

Rulemaking Authority 420.507(33) FS. Law Implemented 420.507(33) FS. History–New_________.

 

67-59.030 Eligibility for MLRP Only.

To be eligible for assistance under the MLRP Program:

(1) The Applicant must document that he or she is a borrower or co-borrower on the mortgage loan and document that he or she:

(a) Has suffered a temporary employment-related hardship through no fault of his or her own, from which he or she has now recovered;

(b) Is a Florida resident;

(c) Occupies the property as his or her primary residence;

(d) Has a total household income, adjusted for household size, that is below 140% of the county area median income. The Area Median Income List, AMI-01, Rev. 7/12, for counties in Florida is hereby adopted and incorporated by reference. Copies may be obtained at no cost, by contacting Florida Housing, HHF program at [phone].

(e) Does not have Unencumbered Assets in excess of $5,000 or three times the amount of their monthly payment of principal, interest, taxes, insurance and association dues (PITIA), whichever is greater;

(f) Has a total monthly housing debt less than 31% of the gross monthly household income;

(g) Does not have a bankruptcy that has not been discharged or dismissed;

(h) Has not been convicted of a mortgage related felony in the last ten years; and

(i) Does not own more than one property other than their primary residence.

(2) The Applicant must document that the property:

(a) Is located in Florida;

(b) Is a single family home, a townhouse, a condominium where financial reporting for the condominium association, pursuant to Section 718.111(13), F.S., for the most recent two years is provided by the Applicant, a 1 to 4 family home where the owner occupies one unit or a mobile or manufactured home on a permanent foundation;

(c) Is not abandoned, vacant or condemned;

(d) Is not the subject of any pending litigation, except for a mortgage foreclosure action by the first mortgage servicer.

(3) The Applicant must document that the mortgage loan:

(a) Is serviced by a regulated financial institution, Habitat for Humanity, the United States Department of Agriculture or other servicer whose servicing activities are regulated by the State of Florida or the United States Government;

(b) Has an outstanding principal balance that does not exceed $400,000; and

(c) Is in first lien position.

(4) Procedures for determining eligibility are detailed in the Florida Hardest Hit Fund Procedures Manual, HHFM-01, Rev. 6/12, which is hereby adopted and incorporated by reference. Copies may be obtained at no cost, by contacting Florida Housing, HHF program at [phone].

(5) Should it be determined at any time that an Applicant has provided false or misleading information in an attempt to improperly obtain Hardest Hit Fund assistance, the Applicant will be deemed ineligible for all Programs and the matter will be referred to the US Treasury and other authorities, as appropriate.

 

Rulemaking Authority 420.507(33) FS. Law Implemented 420.507(33) FS. History–New_________.

 

67-59.040 Application.

(1) Applicants may apply online at www.flhardesthithelp.org. Applicants without internet access may call 1(877)863-5244 for assistance.

(2) Applicants will be assigned to a Florida Housing-approved third party advisor agency that will work with the Applicant and collect the information necessary to make a preliminary eligibility determination.

(3) An Applicant whom an advisor agency determines to be preliminarily eligible for one or more Programs will be submitted to Florida Housing for review and underwriting of the preliminary determination of eligibility.

(4) An Applicant deemed ineligible will be issued a letter specifying the reason(s) for ineligibility and provided information on how to dispute the determination.

(5) Upon confirmation of the preliminary determination that an Applicant has met the eligibility criteria, Florida Housing will offer to make payments to the Applicants mortgage servicer pursuant to the terms of the applicable Program. Should the Applicant’s mortgage servicer decline to participate in the Hardest Hit Fund Programs or decline to accept payments on the Applicant’s loan, then Florida Housing will be unable to provide any assistance to the Applicant. Applicants will be notified if they have been declined by their mortgage servicer.

 

Rulemaking Authority 420.507(33) FS. Law Implemented 420.507(33) FS. History–New_________.

 

67-59.050 Form of Assistance.

(1) Eligible Applicants who have not been declined by their mortgage servicer will receive assistance under the applicable Program(s) in the form of a forgivable loan. Applicants must execute Hardest Hit Fund loan documents before any assistance is provided. Assistance will be paid by Florida Housing directly to the Applicant’s mortgage servicer.

(2) The assistance provided will be in the form of a 0% interest, non-recourse, deferred payment, forgivable loan. The loan will be forgiven over a five year period, starting at month 18, at a rate of 20% per year. If the home is sold or refinanced prior to the maturity date and there are sufficient funds to the Applicant out of the transaction, then the balance of the loan that has not been forgiven must be repaid.

 

Rulemaking Authority 420.507(33) FS. Law Implemented 420.507(33) FS. History–New_________.

 

67-59.060 Partial Payment.

(1) Eligible Applicants who receive assistance under the UMAP Program will be required to make a partial monthly payment of 25% of their monthly household income towards their mortgage during the period of assistance.

(2) Applicants must have an active deposit account that is capable of being electronically debited by Florida Housing for the partial payment amount. Applicants must execute the documents allowing for such debit at the time of their Hardest Hit Fund loan closing.

(3) Should Applicant fail to make the partial payment as required, Florida Housing will terminate Applicant’s participation in the Program.

 

Rulemaking Authority 420.507(33) FS. Law Implemented 420.507(33) FS. History–New_________.

 

67-59.070 Quarterly Reviews.

(1) Eligible Applicants who receive assistance under the UMAP Program will be required to certify on a quarterly basis that they are still eligible for UMAP assistance and provide all necessary documentation.

(2) Should Applicant fail to provide all of the information necessary to verify his or her continued eligibility in the UMAP Program, Florida Housing will terminate Applicant’s participation in the Program.

 

Rulemaking Authority 420.507(33) FS. Law Implemented 420.507(33) FS. History–New_________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: David R. Westcott, Florida Housing Finance Corporation, 227 North Bronough Street, Suite 5000, Tallahassee, Florida 32031-1329, [phone]

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Len Tylka, Chairman of the Board, Florida Housing Finance Corporation, 227 North Bronough Street, Suite 5000, Tallahassee, Florida 32031-1329, [phone]

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: August 8, 2012

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: Vol. 37, No. 51, December 22, 2011