FLORIDA HOUSING FINANCE CORPORATION
PUBLIC NOTICE TO QUALIFIED HOMEBUYERS AND LENDERS
2014 MORTGAGE CREDIT CERTIFICATE PROGRAM
The Florida Housing Finance Corporation (“FHFC”) proposes to implement a program (the “Program”) to provide Mortgage Credit Certificates (“MCCs”) to residents of the State of Florida (the “State”) who purchase new or existing residences within the State. An MCC reduces the amount of income tax a qualified homeowner pays by providing a non-refundable, federal tax credit during the life of a mortgage loan. After all other credits and deductions are taken into account the value of the MCC is applied directly to a homeowner’s remaining tax liability.
No sooner than 90 days following publication of this Notice, FHFC intends to issue MCCs according to the guidelines summarized below. The total credit authority available under the Program is $125,000,000 which is expected to provide assistance with respect to $250,000,000 in aggregate principal amount of mortgage loans.
The annual amount of the tax credit will be equal to the lesser of 50% of the yearly interest paid or accrued on the homeowner’s mortgage loan or $2,000. The amount of the credit may not exceed the homeowner’s total tax liability for a specified year, but excess credit may be carried forward for up to three subsequent tax years. Use of an MCC will reduce the deduction for home mortgage interest on the homeowner’s tax return. An MCC expires on the date the mortgage loan relating thereto is paid in full or refinanced and is revoked on the date the residence to which it relates ceases to be the taxpayer’s primary residence. FHFC reserves the right to adjust the MCC credit rate or make allocations to specific sectors of the housing industry or to conform to market demand or future tax legislation.
To be eligible for an MCC, an applicant must (1) purchase a new or existing single-family home within the State; (2) acquire a new mortgage loan (refinancing of an existing mortgage or land contract is not permissible, except for certain construction loans); (3) continuously occupy the home as a primary residence within 60 days of its purchase; (4) purchase a home with a purchase price that does not exceed the applicable county limits, which currently range between $265,158 and $632,500; please refer to FHFC’s website at www.floridahousing.org for the specific purchase price limits for the county you are purchasing in; (5) have a household income, including all household members age 18 and older, that does not exceed the limit for the applicable county, which currently range between $57,600 and $121,380 depending upon household size and the county of purchase; (6) have not had an ownership interest in a principal residence within the preceding three years, except for qualified homebuyers purchasing homes in federally designated targeted areas or qualifying veterans; and (7) pay to FHFC a nonrefundable $500 issuance fee at the time of loan closing. The applicant must sign all documents and affidavits which are needed to demonstrate eligibility for an MCC, and the regulations, rulings and interpretations issued by the Internal Revenue Service shall control in the event of a conflict with other requirements. FHFC reserves the right to adjust and/or waive the application fee and adjust the purchase price and income limits for the Program to reflect housing costs and market conditions within federal guidelines.
Until the total credit authority is exhausted, a qualifying taxpayer may obtain an MCC in connection with obtaining financing relating to the purchase of an eligible residence from any participating lender. The applicant must meet the credit and underwriting criteria established by the participating lender which provides the mortgage loan. MCC applications will be accepted on a first-come, first served basis; however, for the first year of the Program, 20% will be targeted to persons purchasing single-family homes in Targeted Areas. There is no allocation of MCC’s by lender.
Banks, savings and loan associations, credit unions, mortgage companies and other financing institutions and individuals are invited to participate as lenders. FHFC will make a list of participating lenders available to the public upon request. An applicant may also obtain a loan from a lender not on such list if the lender agrees to participate in the Program. Any lender who wishes to participate will be required to sign a Participation Agreement, which outlines the lender’s loan review and reporting responsibilities, and pay to FHFC a one-time fee of $750.
MCCs cannot be used with FHFC-financed mortgage revenue bond loans or with any mortgage loans subsidized by mortgage revenue bonds. Current federal tax law may require a payment to the federal government of a “recapture” tax if the homeowner sells or otherwise transfers his or her home to someone else within nine years after the MCC is issued.
FHFC reserves the right to adjust, modify or amend the Program guidelines at its sole discretion and without further notice.
For more information on the Program, to participate in the Program as a lender or to receive a copy of the current list of participating lenders or a list of the eligible Targeted Areas, contact Chip White at the Florida Housing Finance Corporation, 227 North Bronough Street, Suite 5000, Tallahassee, FL 32301 or email: Charles.White@floridahousing.org.
Dated: September 19, 2014
FLORIDA HOUSING FINANCE CORPORATION
By /s/ Stephen P. Auger_________
Executive Director
