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HomeMy WebLinkAbout2013-162 IAO r Amended and Re-stated Neighborhood Stabilization Program ( NSP3 ) Single= Family Purchase, Redevelopment and Sales Program Manual : Indian River County I . Purpose The purpose of this Manual is to govern the implementation of Indian River County' s Neighborhood Stabilization Program 3 ( NSP3 ) single-family acquisition, rehabilitation and home sales program . The Manual includes policies and procedures to be followed regarding property acquisitions, rehabilitation/construction , marketing, intake applications, counseling, sales, recapture - resale control mechanisms, and eligible uses of NSP3 funds . II . Definitions Applicant : A person or persons who have applied to Developer for approval of an NSP3 home purchase and Homeowner Financial Assistance . Grantee : Indian River County Developer : Indian River Habitat for Humanity . NSP3 : The 3rd round of funding provided through the United States Department of Housing and Urban Development ( HUD ) Neighborhood Stabilization Program , established by the Wall Street Reform and Consumer Protection Act of 2010 to stabilize neighborhoods whose viability has been and continues to be damaged by the economic effects of properties that have been foreclosed upon and abandoned . For more information , see the NSP3 website : http •//hud gov/offices/cpd /communitvdevelopment/programs/neighborhoodspg/ NSP3 Agreement : An agreement entered into by Grantee and Developer for the purpose of funding and carrying out NSP34igible activities on one or more NSP341gible properties . NSP3 Buyer : The buyer of an NSP3 Home . NSP3 Property : A property that is acquired and rehabilitated , newly constructed or reconstructed pursuant to Developer' s agreement with Grantee . NSP3 Home : An NSP3 property that is being sold to an owner- occupant . NSP3 Program Budget : The budget attached to an NSP3 Agreement showing projected development costs and funding for Developer' s entire NSP3 program in the aggregate . Project Specific Budget : A budget showing projected development costs and funding for a single NSP3 Property . Project Funding: Any and all governmental and private funds, including Developer' s cash , used to pay for the costs to carry out the redevelopment of a single NSP3-assisted property. 1 Project Budget : A budget for all acquisition , rehab/construction and soft costs for a particular home that Developer must submit to Grantee prior to committing to purchase any property for use in the NSP3 program . III . Key Terms of NSP3 Financing Developer' s expenditures for program delivery will be limited as follows : A . Funding of Demolition Costs Developer shall not use NSP3 funds to acquire properties that may need to be demolished , and Developer shall not use NSP3 funds to demolish properties . B . Maximum NSP3 Expenditure Per Dwelling Unit Developer may spend no more than $ 130, 000 on any single dwelling unit, unless Grantee gives written approval to an additional amount due to the strategic value of a property for the NSP3 program or unforeseen costs that were beyond the control of Developer . Co Maximum Development Subsidy Per Unit The development subsidy per dwelling unit, defined as the amount of NSP3 -funded investment in excess of the market value that does not have to be recaptured from Developer or the homebuyer, may not exceed $ 18,000 unless approved by grantee to reflect unusual/changed circumstances, See Section IX , of this Manual for more detailed requirements . D . Developer Fee Allowed Per Dwelling Unit See the Agreement between Developer and Grantee . E . General Contractor Fee Allowed If Developer is acting as general contractor and thus hiring and managing subcontractors, Developer may charge an additional fee in the form of a 10% mark- up of subcontractor costs . Developer' s reimbursement requests for construction costs may include a 10% mark- up of all valid , documented costs of subcontractors who have performed construction work . Such mark- up, however, may not be applied to non - construction costs such as taxes, insurance, security, general requirements, or working capital costs . No such fees will be paid to Developer for any NSP3 property that is rehabilitated or built by a third - party general contractor. All general contractors performing work on NSP3- assisted projects must be properly licensed . 2 F . Allowed Sales Fee or Commission and Marketing Costs Developer may pay no more than 6% of the sale price as a commission to a licensed third - party real estate broker. Additionally, Developer may expend up to $ 600 per home in NSP3 funds for marketing costs such as advertisements and flyers . If marketing is funded for multiple NSP3 homes, the costs of such marketing must be allocated to each home . G . Allowed Amount of NSP3 Homeowner Financial Assistance Per Buyer NSP3 Homeowner Financial Assistance per buyer may not exceed the amounts in and must conform with the terms described in Section XI . in this Manual . H . Repayment of Net Proceeds of Sale Upon sale of an NSP3-funded home, Developer will transmit the net proceeds of the sale to Grantee ( if any) . Net proceeds of sale are defined as follows : 1 . The sale price of the homes 2 . ( Minus ) the amount of any Homeowner Financial Assistance provided to buyer, as defined herein and described on the settlement statements 3 . ( Minus ) Developer costs of sale as documented by the settlement statement, including but not limited to real estate broker fees and seller- paid closing costs; 4 . ( Minus ) The current fair market value of any real property contributed by Developer, in accordance with Section V below . S . ( Minus) the amount of any NSP3 funds used by Developer to provide a 1St mortgage to homebuyer ( if applicable ) ; 6 . ( Plus) Any reimbursements to Developer of costs previously paid or reimbursed with NSP3 funds, such as pro- rated taxes and assessments . If there is a negative balance after net proceeds of sale are calculated according to the formula above, Grantee shall use NSP3 funds to pay for the remaining costs . It is anticipated that this will occur if Grantee provides NSP3 funds to Developer to use for a 1St mortgage to homebuyer . In this instance, additional NSP3 funds will be needed from Grantee to pay all or a portion of developer and homebuyer closing costs listed on the HUD4 settlement statement . Additional costs may be paid by Grantee if consistent with NSP3 requirements and if acceptable to Grantee . 3 I . Reuse of Net Proceeds of Sale Unless needed by Grantee for grant administration or other CDBG eligible activities, the amount of each repayment to Grantee of net proceeds of sale will be added to Developer' s allocation of NSP3 funds and be available to Developer to perform additional NSP3 activities as approved in writing by Grantee during the period of performance in the NSP3 Agreement . After that period concludes, any remaining allocation to Developer will expire . Such additional allocation amounts are subject to recapture and reallocation by Grantee if Developer fails to perform in accordance with the agreed - upon delivery schedule . IV . Property Acquisition A . Eligible Properties Eligible properties must meet the following criteria : 1 . Must be located in the NSP3 Target Area (s ) indicated in the NSP3 Agreement . 2 . Must have no substantial adverse environmental factors as determined by an environmental review . See Section G below; 3 . Must have only one dwelling unit on site unless, with Grantee' s advance approval in writing, Developer proposes to acquire two or more small dwelling units to combine to create a more livable and marketable home; 4 . Must otherwise be suitable locations for marketing and resale of homes to income-qualified homebuyers . 5 . Must be unoccupied and have no personal possessions on site . If Developer discovers that a property is occupied or has personal possessions on site, Developer must immediately abandon the investigation and inform the seller that the property will not be considered for purchase . 6 . Must be in the following NSP3 property category : a ) Foreclosed : The property is at least 60 days delinquent on its mortgage and the owner has been notified ; or the property owner is 90 days or more delinquent on tax payments; or under state or local law, foreclosure proceedings have been initiated or completed , or foreclosure proceedings have been completed and title has been transferred to an 4 intermediary aggregator or servicer that is not an NSP3 grantee, subrecipient, developer, or end user. 7 . Must be acquired with a valid deed free and clear of all encumbrances . Purchases with any other form of deed or with any lien , deed restriction , land lease or other encumbrance must be approved in writing by Grantee prior to Developer making an offer. B . Acquisition Objectives for Serving Households at or Below 50% of Area Median Income (AMI ) The NSP3 program requires that Grantee spend at least 25 % of its NSP3 award on developing homes and rental units that are reserved for households at or below 50% of AMI . Grantee, in turn, has given quotas for such units to its N5133 Developer. Developer' s quota is stated in Developer' s NSP3 Agreement . Because it is crucial that Grantee meet the overall requirement, Developer must designate specific properties being acquired as restricted to future occupancy by households at or below 50% of AMI . Further, Developer must give priority to acquiring homes for households at or below 50% of AMI as stated in the NSP3 Agreement . C . Property Investigations Developer is responsible for property investigations and will recoup the costs of investigations through a developer fee . Developer will identify potential properties for acquisition by researching public records, obtaining proprietary data about recent and pending foreclosures, contracting with real estate brokers and/or other effective methods . After making an offer, but prior to termination of the inspection period , Developer will complete the following tasks : 1 . Inspect the site conditions and structures and complete a preliminary rehab/construction cost estimate in a format that is acceptable to Grantee ; 2 . Complete a Project Budget that includes all proposed NSP3 - funded expenses for acquisition , site work, rehab/construction , holding costs, marketing/sales costs, closing costs, developer fee, and other soft costs ; 3 . Obtain an independent appraisal indicating the as- is market value of the property to determine the proposed offer price ; and obtain a survey of the property; obtain a title report of the property; and obtain a wood destroying organisims report of the property. Grantee will pay costs of these activities . 5 4 . Verify and document in a property file that the property is vacant and has no personal possessions onsite . Documentation should include a signed and dated inspection report, photos, and notes from interviews with neighbors ( if available ) indicating the approximate last date of occupancy . If information from neighbors is not available, documentation should include data from a utility company or the Post Office indicating the date of terminating service . The seller must complete a form stating that the property meets all requirements of the URA . ; and 5 . Comply with federal Recovery Act protections for bona-fide tenants of residential properties foreclosed upon on or after February 17, 2009 . These requirements directly affect initial successors in interest ( ISII ) who take title to the property through foreclosure ( including lenders and others who purchase property at foreclosure sales ) . If Developer or Grantee knows that the ISII did not comply with the NSP3 tenant protections and vacated the property contrary to Recovery Act requirements, developer must abandon the transaction or find an alternative source of funds . NSP3 funds cannot be used for such properties . D . Grantee Approval of Property Acquisitions or Contributions of Developer-Owned Properties Developer will follow these procedures in order to obtain Grantee' s approval prior to acquiring properties for this program or contributing properties to this program . 1 . Transmit electronically a property information package to Grantee that includes the following; a ) A detailed rehab work write- up and cost estimate, material specifications and cost estimate . Rehab estimates will include a 15 % contingency line item . b ) An appraisal indicating the as- is property value . C ) A complete copy of the draft Purchase Agreement with the NSP3- required conditional purchase agreement addendum . See Appendix A for the approved language, which makes the offer conditional upon an approved environmental review and the contract price being at least 1% less than market value as indicated by an appraisal to be obtained by Developer. If the agreement calls for Developer to pay for taxes or other liens or assessments in arrears, those amounts must be added to the contract price for purposes of calculating the discount from market value . 6 d ) Evidence that the property is foreclosed , abandoned or vacant . E . Properties with Accessory Structures Requiring Demolition Written advance permission of Grantee must be obtained before offers may be made on properties on which accessory structures are blighted or beyond repair and therefore require demolition . Deteriorated accessory buildings that may require demolition must be included in the work write- up and cost . Upon Grantee approval of project work write- ups or plans and specifications, those accessory buildings may be demolished . F . Purchase Offers Developer will manage purchase offers as follows . 1 . Execute and transmit purchase agreement to seller with the required conditional purchase agreement addendum . Include with the transmittal a Seller Certification Form to be executed by the seller. See Appendix B . If the seller will not execute the certification form , assure that other due diligence is completed to determine that no tenant has occupied the property since the seller took possession of the property, is currently occupying the property or will be permitted to occupy the property before the sale is complete . 2 . Obtain written approval via email or hard copy from Grantee prior to expiration of due diligence period in purchase contract . G . Environmental Review Grantee is responsible, at its own expense, for completing Tier 1 environmental assessments of NSP3 target areas . Developer will complete a Tier 2, site-specific environmental review, for each property to be acquired using the following steps : 1 . Complete Grantee' s ER form . 2 . Submit the completed ER form to Grantee . 3 . When Grantee has given written approval or denial of the ER, inform the seller. If the ER is denied , abandon the transaction . Approval must be obtained before closing the purchase of the property. H . Appraisals Developer will obtain appraisals as follows : 7 1 . As- is appraisal of foreclosed properties : For any foreclosed property being acquired by Developer pursuant to an NSP3 Agreement, obtain a full URA compliant appraisal of as- is market value in order to determine if the contract price is at least 1% lower than appraisal . If the appraisal was completed prior to making the offer, it may not be more than 60 days old at the time that the purchase agreement is executed . This appraisal is in addition to any preliminary appraisal completed during the initial property investigation, unless a full appraisal was performed at that time and the full appraisal is not more than 60 days old at the time that the purchase agreement is executed . 2 . After-construction/rehab appraisal : For any NSP3 property that will be developed and sold to owner-occupants, Developer will obtain an after- rehab or after-construction appraisal of market value . This appraisal will be used to establish the sales price of the home, as described in Section IX . A. below, and may be completed at any time prior to the home being priced and offered for sale . I . Closings The following procedures will be followed for closings on properties acquired by Developer . 1 . Obtain a title policy binder for the property . 2 . Complete legal review and approval of the closing documents . 3 . Transmit to Grantee an electronic copy of the property appraisal . 4 . Confirm that Grantee has wired or otherwise paid the required funds into an escrow account for the closings 5 . Execute a promissory note and mortgage in favor of Grantee for an open -ended amount, with the maximum amount equal to the projected NSP3 funding described in the Project Budget or other amount approved by Grantee . When the closing is completed , Developer shall assure that grantee receives copies of the deed and settlement sheet . If Grantee has agreed in advance to a purchase, subject to Developer' s payment for liens or other encumbrances, copies of all documents justifying those payments must be transmitted as well . V . Properties Contributed by Developer 8 Developer may not contribute a property to the NSP project unless that property meets all NSP eligibility and acquisition requirements. VI . Relocation of Occupants and Tenant Protections Developer will not acquire properties that are occupied ._In the event that Developer inadvertently acquires an occupied property. Federal Uniform Relocation Act requirements must be followed . In such an event, Developer will be required to conduct a survey of occupant ( s ), create a relocation plan , provide a relocation notice and — if the occupant is qualified — give financial assistance in accordance with URA and HUD rules . In addition , Developer must observe all requirements of federal laws protecting tenants who reside in properties foreclosed on or after Feb . 17, 2009, including without exception allowing a bona fide tenant to remain in residence for the term of the lease or 90 days, whichever is longer. VII . Rehabilitation and Reconstruction A . General Responsibilities Respective responsibilities of Developer and Grantee are as follows . 1 . Developer shall be responsible for preparing plans and specifications (or work write - ups ) that conform to program rehab/construction standards, estimating rehab/construction costs, managing contract awards, and managing the construction process . Developer assumes all risks of cost overruns in excess of the construction and contingency budget line item in the previously approved Project Budget, unless Grantee approves a revised Project Budget . 2 . Grantee is responsible for approval of project, providing and interpreting Rehab/Construction Standards; approving plans, specifications and estimates for projects; monitoring the work; and approving draw requests . Be Plans and Specifications Developer is responsible for completing plans and specifications ( or work write- ups) which conform to Grantee' s Rehab/Construction Standards and which are in a form approved by Grantee . Plans/specifications and work write- ups will include the following . 1 . General requirements for which the builder is responsible ( permits, fees, mobilization , site utilities, site security, builder' s risk insurance, homebuyer warranty, etc . ) ; 2 . Site plans, if new structures, fencing, landscaping or other site improvements are being provided ; 9 3 . Working drawings and materials specifications, for any new construction or substantial rehabilitation ; 4 . Rehab work write- ups that show quantity, size, and materials specification for each work write- up item to enable Developer to create accurate cost estimates . 5 . For structures built before 1978, the plans and specifications must address remediation of any lead paint or other environmental hazards . See the Grantee' s Rehab/Construction Standards for required methods of iNSP3ection , testing and abatement . CO Cost Estimates Developer is responsible for producing cost estimates as follows . 1 . Rehab cost estimates will be completed in a line- item , work write - up format with one work item per line unless an alternative form of estimate is approved in writing by Grantee ; 2 . Cost estimates for construction of new structures and substantial rehabilitation will be based on take-offs from the working drawings of the quantities of materials and labor required or compilations of costs for similar and recently- built or renovated structures; 3 . Site improvement cost estimates will be completed for each improvement and based on take-offs of quantities of materials and labor required ; 4 . Work to be completed by Developer acting as general contractor. The cost estimate for each NSP3 project must be reviewed by Grantee to determine cost- reasonableness and approved by Grantee . Per HUD requirements, cost of donated materials and services shall not be included for re- imbursement purposes ( NSP Policy Alert "Guidance for Habitat for Humanity Affiliates — January 12, 2011" . When approved , the cost estimate becomes a schedule of values which is used by Grantee' s construction inspector to determine the value of work completed for the purpose of approving draw requests . 5 . If a contractor has been simply designated and not selected through a competitive bidding process, the price proposal of such contractor must be reviewed by Grantee to determine cost- reasonableness and approved by Grantee . When approved ( and possibly amended by Grantee ) , the price proposal becomes a schedule of values which is used by Grantee' s construction 10 inspector to determine the value of work completed for the purpose of approving draw requests . D . Bid Packages If Developer competitively bids a project, Developer will prepare a bid package with the following components for all work being performed by third - party firms . 1 . A request for proposals narrative that includes a general description of the processes for bidding, awards, construction monitoring, lien waivers, and construction draws . The narrative will state that retainage equal to 10% of the contract amount will be held back until the punch list is completed . The narrative will include the method of submitting proposals, a due date, and criteria for selection , 2 . Plans and specifications ( or work write- up ) including general requirements, site plans, materials specifications, 3 . A form for describing the bidder' s experience and licenses, 4 . Evidence of required insurance ; S . A price proposal form , 6 . Requirements for complying with Section 3, minority and women ' s business enterprise provisions, lead hazard abatement and other requirements related to federal funding. E . Bid Solicitation When competitively bidding a project, the bid package must be sent to at least three qualified contractors, and bids must be received from at least two such contractors . F . Contract Awards and Contracts If competitively bid , contracts will be awarded by Developer based on Developer' s selection criteria . Copies of all proposals received and the executed contract will be submitted to Grantee electronically prior to the first draw. G . Construction Monitoring Inspections The Grantee' s and Developer' s roles and responsibilities are as follows . 1 . Developer is responsible for monitoring the quality, completeness and conformity to specifications of all work performed by third party contractors, and -- if 11 Developer is also the general contractor-41 work performed by Developer' s personnel or subcontractors; 2 . Grantee may approve reimbursement requests or deny all or a portion of a reimbursement request for cause . H . Construction Reimbursements Construction reimbursement requests will be presented to Grantee on a form acceptable to County along with lien waivers and any other related attachments . Construction reimbursement requests may include requests for reimbursement of soft costs in the approved Project Budget, up to the aggregate total amount of the line item budget amounts for construction and soft costs . See Section VIII for additional requirements for reimbursement of NSP3 funds . Grantee is responsible for reviewing, approving and processing reimbursement requests in a timely manner. I . Change Orders Developer may approve change orders up to a combined amount equal to the rehab/construction contingency budget line item . Developer is responsible for all construction costs exceeding the contingency budget amount, unless Grantee at its sole discretion approves a revised construction budget and Project Budget and reviews and approves a change order for additional scope of work and costs in excess of the total construction budget . J . Final Inspection and Final Draw Upon completion of rehab activities, all applicable paperwork, and approval of all required inspections by County; Developer will submit a final draw request as specified in Section VII . H . above . The final draw will include the payment of any remaining eligible construction costs, construction retainage, applicable soft costs and the portion of the developer fee payable upon completion of construction . VIII , Funding of Construction Work and Soft Costs NSP3 funds are available for funding the construction work and soft costs that are indicated in the Project Budget, up to the NSP3 funding amounts stated in the Project Budget . Developer is responsible for obtaining other funding indicated in the Project Budget and any additional funding required in the event that costs exceed the total amount of the Project Budget . Developer will follow these procedures with draws of NSP3 funds . A . Fees and Interest Payments Fees and interest payments for lines of credit and construction loans are not eligible costs for reimbursement by Grantee with NSP3 funds and will not be counted toward the total cost basis of the redevelopment of the property . Grantee' s intent is to pay for these costs indirectly through payment of the developer fee . 12 B . Construction Costs Construction costs will be funded by Grantee as follows . 1 . If all construction work is carried out by a general contractor or multiple contractors, contractor( s ) will prepare a draw request or invoice which indicates a 10% retainage . The aggregate retainage amount for a contractor will be included in contractor' s final draw request or invoice, which will be presented to Grantee after final completion of the project, 2 . If Developer is also acting as general contractor, Developer will follow any special requirements in the NSP3 Agreement for charging general contractor fees and non -subcontracted construction costs, as well as processing draws . In addition , there will be a 10% retainage for all general contractor and subcontractor costs for each draw, including a retainage on any general contractor fee . The aggregate retainage amount for the general contractor and subcontractors will be included in contractor' s final draw request or invoice, which will be presented to Grantee once the punch list has been completed . 3 . Requests for NSP3 funding of soft costs must be accompanied by invoices or other documents from subcontractors or other third parties indicating payment of eligible rehab/construction and soft costs as indicated by the line items in the Project Budget . 4 . Developer fees will be paid in three installments as indicated in the NSP3 Agreement — upon acquisition , completion of rehab/construction , and sale of the home . Developer will submit an invoice to Grantee for the fees due upon acquisition and completion of rehab/construction . Developer will be paid the third installment of the developer fee from the proceeds of the sale after the sale has closed and Developer has provided to Grantee all required documentation regarding the project, the buyer' s eligibility and the sale . 5 . The terms of the NSP3 Agreement determine whether the Developer Fee is calculated as a fixed dollar amount or a percentage of total development costs, not including the fee . If the fee is calculated as a percentage, once calculated in the original Project Budget, the fee amounts will be fixed dollar amounts . If actual total project costs exceed or are less than the budgeted amounts, the developer fee will remain the same . IX . Pricing of Homes and Development Subsidies : Developer will set an asking price for NSP3 homes that is the lesser of the after-construction/ rehab market value, or total development costs . A . After=Construction/ Rehab Market Value 13 Developer will obtain an after-construction/rehab appraisal . This appraised value will be the asking price for the home unless it is higher than the estimated total development cost of the home, in which case the price will be the same amount as the total development cost . Total development cost includes all acquisition , rehabilitation/construction and soft costs including the developer fee and any costs of providing down payment and closing cost assistance – regardless of the source of funds . B . Adjustments in Asking Price If no qualified offer is received within 60 days of first marketing a home, Developer may reduce the asking price by 5 % . If no qualified offer is received after final completion followed by 60 days of best efforts in marketing a home, Developer may reduce the original asking price by up to 10%, including previous adjustments, if any. Developer may make additional price reductions only with the written approval of Grantee . In any case, Developer may reduce asking prices only after making diligent and continuous efforts to market and sell a home . Co Setting and Adjusting the Contract Price In executing a home sales agreement, Developer may not agree to a contract price that is less than the amounts described above without the written approval of Grantee, except that Developer may amend the contract price in a home sales agreement to be equal to the market value of the home as determined by a first mortgage lender' s appraisal . D . Adjustment in Contract Price For purposes of NSP3 compliance, any such reduced prices shall be considered to be the current market value of the home, regardless of the value determined by any prior appraisal . Note that no NSP3 Home can be sold for more than the total development cost, per NSP3 rules . E . NSP3 Development Subsidy When Investment Exceeds Market Value When development costs exceed market value, the portion of NSP3 funds advanced to the project that are above the market value become a development subsidy to the project . Neither the Developer nor the homebuyer is required to repay NSP3 funds used for an approved development subsidy. (The homebuyer, however, will be subject to recapture provisions for the amount of any Homeowner Financial Assistance as defined herein — which subsidizes the contract price of the home and possibly closing costs as well . ) F . Determining Market Value, to Establish the Development Subsidy The development subsidy is calculated with the following formula , according to the HOME program rules that are referenced as a "safe harbor" for the NSP3 program . 14 Total development cost ( Minus ) current market value ( Equals ) the development subsidy If an NSP3 home is sold for a price equal to the after-construction/rehab appraised value, then the appraised value is deemed to be market value . Moreover, if the price of a home has been reduced due to a lack of qualified offers after adequate marketing and sales efforts over a reasonable period of time ( as described above ), the reduced selling price will be considered market value for purposes of calculating the development subsidy. G . Accounting for Expenditures Developer will account for total NSP3 expenditures per home by means of assigning an accounting code for NSP34unded or reimbursed expenses for each property and another accounting code, if applicable, for non - NSP3 funded expenditures ( if any) . At the time of the sale of an NSP3-assisted home, Developer will provide Grantee with a complete accounting of NSP3 expenditures for that home and non - NSP3 expenditures, if any . The separate accounting of NSP3 and other funds used is required for establishing the maximum allowed sale price and will provide necessary financial data on NSP3 - funded expenditures in the event of a HUD audit of program activities . H . Possible Adjustments in Price at Time of Sale Prior to closing any sale of a property, after actual total development cost is calculated as described above, and the first mortgage lender' s appraisal has been received by Developer, the sale price must be reduced to the lesser of the following two amounts if less than the contract price : 1 ) the actual development costs, or 2 ) the amount of the first mortgage lender' s appraisal . X . Marketing and Sales of NSP3 Homes Grantee acknowledges that Developer maintains a sweat equity program where clients are chosen based on Developer' s criteria for homes . Consequently, County agrees that NSP homes will be sold to Developer' s sweat equity clients . Notwithstanding the above, Developer shall have the responsibility of advertising NSP3 homes for sale and may require buyers to comply with Developer' s sweat equity criteria . XI . Homebuyer Application and Prequalification Developer is responsible for the following tasks, except that tasks A through K may be completed for some or all clients by a pre- purchase counseling agency under contract to Grantee to assist prospective NSP3 homebuyers . To the extent that prequalification tasks are 15 completed for a prospective buyer referred by such agency, Developer will obtain documentation that the tasks were properly completed . Developer must keep documents on file and transmit copies to Grantee prior to entering into a home sales contract with a Buyer . A . General Criteria for Applicant Participation In NSP3 To be eligible to participate in the N5133, applicants must meet the following general criteria . 1 . Applicant' s total household income must not exceed 120% of Area Median Income (AMI ) ; 2 . Applicant may not have assets that exceed $ 20, 000; 3 . Prospective home must be applicant' s primary residence ( Homestead property) ; and 4 . Applicant must obtain a fixed rate First Mortgage from a financial institution or Developer . No sub- prime products or adjustable rate mortgages are allowed . 5 . Applicant' s housing cost to income ratio (front-end - ratio ) shall be between 19% and 35%; 6 . Applicant' s total debt to income ratio ( back-end ratio ) shall not exceed 45 % . Ratios must be calculated based on the 1st mortgage amount only ( see section E . below), since the county' s mortgage is a soft second , with no monthly payments and forgiveness in 15 years ( see section G . below) . 7 . The household ' s total gross income shall be used to calculate the maximum 1St mortgage loan amount described in section E . below (gross income of all household members 18 years and older ) . B . Application for NSP3 Assistance Before a prospective buyer is referred to counseling or to execute a sales agreement for an NSP3- assisted property, the buyer must complete and submit a complete Application for NS133 Assistance attached as Appendix C ( or current version of application as may be updated by Grantee ) .The information obtained in the application will be used - along with verificationsm-to determine a buyer' s eligibility to purchase an NSP3 home and to receive NSP3 Homeowner Financial Assistance . While paper forms may be filled out in advance by Applicants, the application will be completed in a face-to-face meeting with a qualified representative of Developer. C . Evidence of Employment, Residence, Income and Assets 16 Developer will require Applicants to bring this evidence to the intake and application interview in order to make an initial determination of eligibility. D . Credit Report During the intake interview, Developer will obtain , with the Applicant' s written permission, a credit report that includes a credit score . Developer will review the report with Applicant and explain any positive or negative data with regard to qualifying for purchase of an NSP3 home . E . Provision of First Mortgage Loan Grantee acknowledges that either Developer or a financial institution will provide 1St Mortgage financing for NSP3 homebuyers . That financing shall be a standard loan amortized up to a thirty ( 30) year period that does not constitute a sub - prime mortgage . Developer and/or financial institution shall prepare a 1St Mortgage pre-approval letter listing the maximum 1St mortgage amount that Developer and/or financial institution will loan to applicant . A copy of that letter shall be supplied to Grantee . If Developer is unable to finance the homebuyer' s 1St mortgage due to insufficient funds available to Developer, and if there are no financial institutions available to provide 1St mortgage financing following NSP and Developer guidelines, Grantee may allow NSP3 funds already invested in a property to be used by Developer to loan to the homebuyer for a first mortgage . In such case, Developer shall assign mortgage to Grantee at no cost . As part of the assignment of the mortgage, a separate mortgage/loan sale and servicing agreement shall be executed which commits Developer to service all aspects of said mortgage at terms acceptable to Grantee . Neither the assignment of mortgage nor the loan sale and servicing agreement shall alter Developer' s underwriting guidelines used for the homebuyer' s first mortgage . On a monthly basis, Developer shall pay mortgage payments owed to Grantee . Developer may buy back the mortgage from Grantee with no penalties . Penalties may be imposed for late payments . F . Certifying the Incomes Eligibility of Prospective Buyers Developer will verify and certify the income- eligibility of prospective buyers . Required documentation ( copies of driver' s licenses, paystubs, etc . ) will be kept in Developer' s files and copies sent to Grantee . The income certification may be no more than six months old at the time that the buyer and Developer enter into a purchase agreement . If older, the buyer must be recertified . An Applicant whose application fails to meet the NSP3 eligibility requirements will be given a written notice of denial as described in Section H , below . G . NSP3 Homeowner Financial Contribution For properties acquired with NSP3 funds and sold to a qualifying household , the buyer household must contribute the following minimum buyer contribution towards the purchase of the home . 17 Buyer Household Income Minimum CashAo- Close Requirement Up to 80% AMI $ 200 81 % to 120% AMI $ 500 H . NSP3 Homeowner Financial Assistance Grantee will provide a qualifying purchasing household with a second mortgage for Gap Financing and dowpayment/closing cost assistance . The second mortgage shall be in the form of a zero interest Deferred Payment Loan ( DPL) . The DPL will remain in place for a fifteen ( 15 ) year term and will be due and payable at the transfer of ownership of the property, if the transfer of ownership occurs during the fifteen ( 15 ) year period . The Second mortgage will be limited to the following : • An amount not to exceed ten percent ( 10% ) of the sales price of the property for closing cost assistance . This closing cost assistance may be used to pay the buyer' s recording fees, intangible taxes, stamps on the note, mortgage title insurance, wood destroying organism inspections, appraisal fees, property survey fees, credit reports, lender' s document preparation fees, underwriting fees, closing attorney' s settlement fees, buyer' s courier fees, prepaid property taxes, prepaid homeowner' s insurance, prepaid flood insurance, and any other fees included on the Department of Housing and Urban Development ( HUD ) closing statement for the property agreeable to both the buyer and the seller. • An amount equal to the difference between the sales price of the property less buyer contribution and the amount a mortgage lender selected by the buyer and approved by Grantee or developer has committed to loan to the buyer for the purchase of the property through a fixed rate conventional first mortgage amortized up to a thirty ( 30 ) year period utilizing the property being acquired as collateral . The total amount of the 2nd mortgage may not exceed an amount equal to thirty-five percent ( 35 % ) of the sales price of the property . I . Disclosures at Time of Application Unless an Applicant is disqualified during the intake interview, he or she will be given hard copies of preliminary disclosure documents that provide the following . 1 . An explanation of the NSP3 program in general terms and its benefits to buyers and the community. 2 . The general locations and price ranges of NSP3 Homes that may be available for Buyers to purchase, and a estimate of typical buyer- paid closing costs . 3 . The NSP3 application approval criteria . 4 . Waiting list policies . 18 5 . The requirement for attending pre- purchase counseling ( if approved ) . 6 . Applicant' s household size and estimate of monthly income, with a statement that the income amount must be verified prior to the Applicant being approved for NSP3 assistance . 7 . An estimate of the amount ( or range of amounts ) and terms of Homeowner Financial Assistance that Applicant may qualify for, based on an analysis of Applicant' s financial and other data provided . 8 . A general description of an NSP3 buyer' s obligations for repayment of subsidies, and resale controls on homes sold ( if any) . During the intake interview or subsequent face-to -face meeting, a representative of the developer will review these disclosures with the Applicant and be available to answer questions about him . No application may be approved unless disclosures have been made as required . J . Notification of Approval or Denial Upon completion of the tasks described above, Developer will inform buyers in writing of their eligibility or ineligibility for NSP3 assistance, conditional upon completing homebuyer education and training, signing a purchase agreement for an NSP3 home, obtaining first mortgage financing, and providing the required minimum down payment amount . The written notification will include the amount — or range of amounts — of NSP3 financial assistance that buyers qualify for and preliminary disclosures of the terms of that financial assistance . K. Confidentiality of Client Data Developer will observe all Privacy Act requirements and keep client data in locked file cabinets or password - protected electronic files . XII . Homebuyer Counseling and Education A. Referral to Counseling and Education Program Upon notification of approval of an application for assistance, buyers will be referred to a HUD- approved program that offers at least eight hours of pre-purchase counseling and education . If buyers have already completed such a program , Developer must determine if the program meets Grantee and NSP3 requirements and must verify completion by obtaining and filing a certificate of completion . If the pre- purchase counseling and education does not meet requirements, buyers will have to complete training delivered by a HUD- approved counselor. 19 Be Certificate of Completion Upon successful completion of a counseling and education program , Buyers will receive a certificate of completion . No buyers will be allowed to sign a sale agreement for an NSP3 home unless the completion of counseling and education has been verified by Developer and a copy filed in Developer' s records . XIII . Waiting List A. Requirements for Waiting Lists Developer must establish and maintain a waiting list of all prospective homebuyers who are approved for assistance . Grantee may waive this requirement at its sole discretion if Developer demonstrates conclusively that a waiting list serves no purpose, because the number of homes available for sale exceeds the number of qualified buyers . Be Waiting List Procedures Developers will follow these procedures . 1 . Priority for selecting a completed home will be determined by the date that a client' s application for assistance was approved (that is, the client with the earlier date of approval shall have priority for selection .) 2 . As a home or group of homes becomes available for sale, the home ( s ) will be offered first to the client with the highest priority, and if not selected , then to the client with the second highest priority, etc . 3 . Homes will be offered to a client only if the price is affordable to the client as determined by the program underwriting analysis embedded in the application for assistance . 4 . Each client will have three opportunities to reject a home or groups of homes offered and maintain his or her priority . After a third rejection , a client' s priority will fall to the bottom of the waiting list . XIV . Executing Sale Agreements with Buyers A. Requirement for Using Approved Sales Agreement Developer will use only a form of sales agreement approved by Grantee . Be Commitment letter for NSP3 Financing Simultaneous with executing a purchase agreement, Developer will issue a commitment letter for the exact amounts, or maximum amounts, of NSP3 Homeowner Financial 20 Assistance that Buyer will be provided if the sale is completed . The commitment letter is intended, in part, to aid Buyer in obtaining a first mortgage loan . If an Applicant has not met all of the requirements for purchase, the commitment letter should be conditional upon meeting such requirements . The commitment letter will also be conditional upon no substantial changes occurring in the NSP3 Buyer' s employment or financial status at the time of closing. C . Disclosure Statement Prior to executing a sales agreement, Developer will provide the NSP3 Buyer with a second disclosure statement . ( See Section XI . I regarding the first disclosure statement . ) The second disclosure statement will reiterate the requirement for Buyer to attend pre- purchase counseling, with a check- off indicating whether Developer has a certificate of completion on file ( if applicable ) . The statement will also describe the availability and terms of Homeowner Financial Assistance, obligations for repayment of subsidies, and resale controls on homes sold ( if any) . During the intake interview or subsequent face- to-face meeting, a representative of the developer will review these disclosures with the Applicant and be available to answer questions about them . No application may be approved unless disclosures are made as required . XV . Home Sale Closing Requirements A . Originating the Subsidy Recapture Lien Documents The amount of Homeowner Financial Assistance provided to a Buyer for Gap Financing and dowpavment/closing cost assistance will be secured by a promissory note and mortgage with Grantee named as lien holder at 0% interest . All payments of principal will be deferred until buyer sells the home, transfers it, or violates the terms of the lien . This mortgage shall be forgiven only after 15 years if the home is not sold or transferred to a new owner . At least seven working days prior to each closing of an NSP3 Home sale, Developer will prepare and forward to Grantee a promissory note, mortgage deed ( or deed of trust ) , and accompanying disclosure statement, allowing three working days for Grantee to review the document and transmit it to Developer' s attorney or other representative . Developer will use forms approved by Grantee . Grantee will review and approve the language and numbers inserted in the forms . The amount of the lien will be the amount of Gap Financing and dowpavment/closing cost assistance providedto homebuyer. Be 1St Mortgage Assignment and Sale and Servicing Agreement At least seven working days prior to each closing of an NSP3 Home sale, Developer will prepare and forward to Grantee a proposed 1St mortgage assignment of loan , a proposed loan sale and servicing agreement, and related attachments, allowing three working days for Grantee to review the documents and transmit them to Developer' s 21 attorney or other representative . Developer will use template assignment of loan and loan sale and servicing agreement documents approved by Grantee' s attorney . If proposed additions to the template documents are acceptable to Grantee, Grantee will inform Developer or Developer' s representative prior to closing for the sale of the home . The County Community Development Director shall have the authority on the County' s behalf to execute assignment of NSP3 mortgages and shall have the authority to enter into sales and servicing agreement for said mortgages . Be Closing Responsibilities In addition to having the responsibilities described above, Developer will retain a closing agent and an attorney for Developer' s own legal review of closing documents . Developer' s attorney will have the final responsibility for review of closing documents on behalf of Developer, while ensuring compliance with Grantee' s requirements . XVI . Post- Purchase Counseling A . Developer Responsibility Developer is responsible for notifying Buyers of the availability and advisability of using post purchase counseling if they are unable to make a first mortgage payment on time . This notification will be included in the Commitment Letter and language of disclosure documents provided at the closing of the home sale . The information will stress the importance of seeking help before or immediately after a late payment might occur and include the name or names, address ( es ) and phone number( s ) of Grantee-approved counseling agencies . Be Grantee Responsibility Grantee is responsible for identifying counseling agencies that can be reasonably expected to provide reliable post- purchase counseling at low cost or no cost due to current or anticipated public or private funding for that purpose . XVII . Management of Excess Revenues, Liens and Resale Controls A. Net Proceeds of Sale The requirements for disposition of net proceeds of sale are described in Section III . Be Repayments of Homeowner Financial Assistance According to the terms of this Manual, all liens will be in the name of Grantee . Grantee will be solely responsible for managing liens resulting from sales of NSP3 Homes by Developer, including but not limited to managing receivables, accounting for payments, approving subordinations ( if allowed ), and issuing lien releases . 22 C . Management of Resale Controls Grantee will be solely responsible for enforcing the provisions of restrictive covenants regarding to resale controls for the purpose of maintaining long-term affordability, to the extent that these covenants are imposed on Buyers . ADOPTED BY INDIAN RIVER COUNTY BOARD OF COUNTY COMMISSIONERS THIS 20th DAY OF August 12013 INDIAN RIVER COUNTY BY : sep E . Flescher, Chairman ATTESTED BY : dee � � � �AOL . 0 fay Jeffrey R . Smith , Clerk APPROVED AS TO FORM AND LEGAL SUFFICIENCY an Reingold , County Attorney F :\Community Development\CDBG\2010 NSP\CONTRACTS\Developer Agreement\Amendment #2\SFDevAndSalesProgramManual - Habitat Contract Amend #2 v2.doc 23 s Appendix A Indian River County Neighborhood Stabilization Program 3 Indian River Habitat for Humanity Property Option Contract Addendum This Neighborhood Stabilization Program Addendum ( Addendum ) is to be made part of the Purchase Agreement ( Agreement ) dated a 20__, between ( Seller) and Indian River Habitat for Humanity ( Buyer ) , for the property located at : FL , ( the Property ) . A. Purchase Discount The Buyer ' s obligation to close this transaction with federal assistance is expressly contingent upon the results of an appraisal ordered by Indian River Habitat for Humanity . The Buyer is using certain federal funds that require the purchase price to be at or below ninety nine percent ( 99 % ) of the appraised value of the optioned property based upon an appraisal ordered by Indian River Habitat for Humanity . During the due diligence period agreed to in the "As Is Contract for Sale and Purchase" , the Buyer shall be allowed to cancel this agreement based upon the appraisal if the condition described herein cannot be met, in which event this Agreement will be null and void and the Seller shall return all earnest money to the Buyer . Be Environmental Review Notwithstanding any provision of this Agreement, the parties hereto agree and acknowledge that this Agreement does not constitute a commitment of funds or site approval , and that such commitment of funds or approval may occur only upon satisfactory completion of an environmental review and receipt of an environmental clearance by Indian River County under 24 CFR Part § 58 . The parties further agree that the provision of any funds to the purchase is conditioned on Indian River County ' s determination to proceed with , modify or cancel the purchase based on the results of said environmental review . Further, the buyer shall not undertake or commit any funds to physical or choice - limiting actions , including property acquisition , demolition , movement, rehabilitations , conversion , repair, construction , or execution of a construction contract prior to the environmental clearance, as denial of any funds to purchase may result . C . Minimum Property Standards During the due diligence period , Seller shall allow Buyer to complete one or more inspections of the property to establish if the property will meet the Neighborhood Stabilization Program Standards . If Buyer determines that the property does not meet the Standards, Buyer shall have the right to cancel this Agreement, in which event, this Agreement will be null and void and the Seller shall return all earnest money to Buyer . Seller ' s Initials Buyer ' s Initials 24 Appendix B Indian River County Neighborhood Stabilization Program 3 Indian River Habitat for Humanity Property Option Contract Addendum This Neighborhood Stabilization Program Addendum ( Addendum ) is to be made part of the As Is Contract for Sale and Purchase ( Agreement ) dated 2011 , between ( Seller) and Indian River Habitat for Humanity ( Buyer ) , for the property located at : — FL , ( the Property ) . Disclosure to Seller with Voluntary. Arm ' s Lenath Purchase Offer This is to inform Seller, that Buyer intends on purchasing the property included in this Agreement utilizing funding from the Neighborhood Stabilization Program , if a satisfactory agreement can be reached . The U . S . Department of Housing and Urban Development ( HUD ) will be providing the funding for this transaction . Please be advised that Buyer does not have authority to acquire Seller' s property by eminent domain . In the event Seller and Buyer cannot reach an amicable agreement for the purchase of the property, Buyer will not pursue this proposed acquisition . Since the purchase would be a voluntary acquisition , arm ' s length transaction , Seller would not be eligible for relocation payments or other relocation assistance in accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act ( URA ) . Also , as indicated in the contract of sale , this offer is made on the condition that to seller' s knowledge , no tenant has occupied the property since seller took possession of the property, is currently occupying the property or will be permitted to occupy the property before the sale is complete . If seller does not wish to sell the property, Buyer will take no further action to acquire it . If seller is willing to sell the property under the conditions described in this Contract, seller will sign the contract and initial this Addendum . Seller' s signature on the Contract and Seller' s initials on this Addendum constitute acknowledgement that Seller has received this disclosure . Seller ' s Initials Buyer ' s Initials 25 Appendix C Indian River Habitat for Humanitv Neighborhood Stabilization Program 3 PERSONAL DECLARATION This form must be completed in your OWN HANDWRITING- PLEASE PRINT. You must use the legal names fc each member of your household as it appears on the Social Security Card . ALL ADULT MEMBERS OF TH: HOUSHOLD MUST SIGN THIS FORM CERTIFYING THE ACCURACY OF THE INFORMATIOI _ PERTAINING TO THEM, II. FAMILY COMPOSITION : List all persons who will be living in your home * List Head of Household First. Indicate Marital Status as [S] Single [M] Married [W] Widowed [D] Divorced [C] Separated Adult Names Date of Social Relation Marital Birth Security# Status 1 Self 2 . 3 . Children Names Date of Relation School Name Absent Parent Name Birth 1 . 2 . 3 . 4 . 5 . 6 7 . 8 9 . 10 . 11 . 12 . If separated or divorced, list name & List the "NEXT OF KIN" Address of spouse/ex-spouse as follows : Name : Name : Address : Address : Social Security Number : Telephone Number : Relationship : Je TOTAL HOUSEHOLD INCOME : List ALL money earned or received by everyone in your household. This ncludes money from Wages, Sel&Employment, Child Support, Cash Contributions, Social Security, SSI Income, Workman ' s Compensation, Retirement Benefits, TANF, Veteran' s Benefits, income from Bank Accounts, Alimony, Zental Property Income, Stock Dividends, and all other income sources. Print $$$ Amount Wages/Wkly AFDC/ TANF Child SS/SSI Other Income Support HEAD ( SELF ) [II . ASSETS : 1 . Do you or does any household member own or receive any interest for real estate, boats, mobile homes? ❑ Yes ❑ No Have you sold any real estate in the past 2 years? ❑ Yes ❑ No ? . Do you have any Stocks, Bonds or Certificates of Deposits? ❑ Yes ❑ No 3 . Do you have any Bank Accounts? ❑ Yes ❑No If Yes, provide Name of Bank : t . Do you drive a car? ❑ Yes ❑ No Do you own a car? ❑ Yes ❑ No > . Does anyone outside your household pay any of your bills or give you money? ❑ Yes ❑ No If Yes, Explain : i . Have you or any other adult member ever used any Name(s) or Social Security Number(s) other than the one you are currently using? ❑ Yes ❑No If Yes , Explain . 7 . Have you or has anyone in your household ever been arrested, charged or convicted of any crime other than traffic violations? ❑ Yes F1No If Yes, Explain . 3 . Have you ever committed any fraud in a Federal Assisted Housing Program or been requested to repay money for knowingly misrepresenting information for such housing programs? ❑ Yes QNo If Yes, Explain . WARNING ! ! ! ! Title 18 , Section 1001 of the United States Code, states that a person is guilty of a felony for cnowingly and willingly make false or fraudulent statements to any department or agency of the United States . do hereby swear and attest that all of the information above regarding family composition, income and assets are rue and correct. I also understand that any increases in income or change in family composition must be reported to he Indian River County Housing Authority in writing within 10 days. signature (Head of Household) . Date . signature (Spouse/Co-Tenant/Other Adult) : Date : ,urrent Telephone Number : INDIAN RIVER HABITAT FOR HUMANITY NEIGHBORHOOD STABILIZATION PROGRAM 3 HOME BUYER APPLICATION EWIAL Hi N�g NO oPORry To apply for assistance utilizing Indian River County' s Neighborhood Stabilization Program (NSP) Horne Purchase Activity, please complete this application and contact Indian River Habitat for Humanity at (772) - BRING THIS COMPLETED APPLICATION AND REQUIRED ATTACHMENTS TO INDIAN RIVER HABITAT FOR HUMANITY. The following is a list of items needed for the review of your an 1p ication (Check each item below upon completion) * ❑ Complete all questions in the application and sign where indicated. ❑ PAGES 5 & 10 - Sign all verification forms on the left side. Leave the right side blank. Additional forms, if needed, may be obtained from the Indian River County Community Development Department - 1801 27� Street, Vero Beach, FL 32960 or Indian River Habitat for Humanity — 4568 N . US Highway 1 , Vero Beach, FL 32967. Forms are also available online at www .ircgov. com , STAFF will mail and/or Fax these forms to the appropriate third 12aa for independent verification of information. ❑ PHOTOCOPY OF DRIVERS LICENSE OR PHOTO I.D. SUCH AS STATE I.D. OR PASSPORT FOR EVERY HOUSEHOLD MEMBER AGED 18 AND OLDER. There will be nQ copying opportunity at the ORIENTATION site please bring copies with the application. ❑ Proof of each dependent claimed — submit the following: a . Copy of birth certificate for all household members b. Copy of court ordered letters of guardianship (if applicable) c . Copy of letters of adoption (if applicable) d . Copy of divorce decree (this is essential in determining court ordered child support) e. Copy of Social Security cards for each member of the household f. Copy of current SS benefits statement - g. Picture I.D . ❑ A copy of the original tax return for the previous year for all members of the household 18 years or older (A free transcript may be obtained by calling 1 -800-8294040, option 2, then option 2 again, follow prompts) . ❑ PRE-QUALIFICATION LETTER FOR FINANCING FROM A FINANCIAL INSTITUTION IF YOU HAVE ALREADY BEEN WORKING WITH A LENDER. ❑ Two months bank statements for all financial accounts FOR EACH MEMBER OF THE HOUSEHOLD 18 YEARS OR OLDER. ❑ Proof of all income for the last 30 days, i .e. pay stubs, pension, child support, etc.- this applies to all household members regardless of whether they will be on the mortgage or not. THERE WILL BE NO COPYING OPPORTUNITY AT THE INDIAN RIVER HABITAT FOR HUMANITY OFFICE (PLEASE BRING COPIES WITH THE APPLICATION ) . * NOTE: STAFF MAY ASK FOR MORE INFORMATION ON A CASE-BY-CASE BASIS . INDIAN RIVER COUNTY NEIGHBORHOOD STABILIZATION PROGRAM 3 IMPLEMENTED BY INDIAN RIVER HABITAT FOR HUMANITY 4568 N . US Highway 1 , Vero Beach , FL 32967 ���R�u� {T° (772) 562 =9860 APPLICANT/TENANT RELEASE AND CONSENT I/We , , the undersigned hereby authorize the below listed groups and individuals, to release without liability, information regarding my/our employment, income, and/or assets to Indian River County and Indian River Habitat for Humanity for purposes of verifying information provided as part of my/our request for assistance under the Neighborhood Stabilization Program 3 . INFORMATION COVERED . I/We understand that previous or current information regarding me/us may be needed . Verifications and inquiries that may be requested include , but are not limited to: personal identity, employment, income , and assets , and medical or childcare allowances. I/We understand that this authorization cannot be used to obtain any information about me/us that is not pertinent to my/our eligibility for the Neighborhood Stabilization Program 3 . GROUPS OR INDIVIDUALS THAT MAY BE ASKED : The groups or individuals that may be asked to release the above information include , but are not limited to : Past and Present Employers Welfare Agencies Veterans Administration Previous Landlords ( including Public State Unemployment Agencies Retirement Systems Housing Agencies) Social Security Admin . Banks and other Financial Support and Alimony Providers Credit Agencies Institutions CONDITIONS : I /We agree that a photocopy of this authorization may be used for the purposes stated above . THE ORIGINAL OF THIS AUTHORIZATION IS ON FILE AND WILL STAY IN EFFECT FOR ONE YEAR AND ONE MONTH FROM THE DATE SIGNED. I/We understand that I/We have a right to review this file and correct any information therein that I/We find to be incorrect or outdated . SIGNATURES . Head of Household (print name) Date Spouse (print name) Date Adult Member ( print name) Date Adult Member ( print name) Date NOTE : THIS GENERAL CONSENT MAY NOT BE USED TO REQUEST A COPY OF A TAX RETURN . IFA COPY OF A TAX RETURN IS NEEDED , IRS FORM 4506 , " REQUEST FOR COPY OF TAX FORM" MUST BE PREPARED AND SIGNED SEPARATELY. 17 1191 SOCIAL SECURITY BENEFITS EQUAL R�� 'TM If any household member receives any type of Social Security benefits please provide a current benefits statement which may be obtained , free of charge , from the local Social Security office located at 1835 20th Street , Vero Beach , FL 32960 or , you may call at 1 - 800 - 772 - 1213 , between 7 : OOam and 7 : 00pm to request a benefits verification letter or a proof of income letter . You may also request this information on line at : www . socialsecurity . gov VERIFICATION OF : Assets on Deposits Name of Financial Institution (Applicant Information) Checking Account Number Name of Applicant or Tenant: Average Balance for Last 6 months Current Interest Rate Savinas Account Number Social Security Current Balance Number: Current Interest Rate Return to : Certificate of Deposit Account Number NSP Program Coordinator Indian River Habitat for Humanity Amount 4568 N . US Highway 1 Withdrawal Penalty Vero Beach , FL 32967 Current Interest Rate ` Fax : 772- 562 on 8732 IRA , Keogh, Retirement Accounts Account Number Amount Withdrawal Penalty Current Interest Rate Your prompt return of the requested information Money Market Funds Amount (Avg . 6 month balance) will be appreciated . A self-addressed return envelope is enclosed . Interest Rate RELEASE : I hereby authorize the release of Signature of the requested information . or X Authorized Representative ( Signature of Applicant/Tenant) Agency Name : Date : Title . or ; A copy of the executed " Release of Date : _ Information Form " is attached which authorizes the release of information Telephone : requested . WARNING : Florida Statute 817 provides that willful false statements or misrepresentation concerning income and assets or liabilities relating to financial condition is a misdemeanor of the first degree and is punishable by fines and Imprisonment provided under S 775 . 082 or 775 . 83 . 1 VERIFICATION OF : Assets on Deposits Name of Financial Institution (Co-Applicant Information) Checkin Account Number Average Balance for Last 6 months Name of Applicant : Current Interest Rate Savin s Account Number Social Security Current Balance Number: Current Interest Rate Return to : Certificate of Deposit Account Number NSP Program Coordinator Indian River Habitat for Humanity Amount 4568 N . US Highway 1 Withdrawal Penalty Vero Beach , FL 32967 Current Interest Rate Fax: 772m, IRA , Keogh, Retirement Accounts Account Number Amount Withdrawal Penalty Current Interest Rate Your prompt return of the requested information Money Market Funds Amount (Avg . 6 month balance) will be appreciated . A self-addressed return envelope is enclosed . Interest Rate RELEASE : I hereby authorize the release Signature of or of the requested information . Authorized Representative X (Signature of Applicant/Tenant) Agency Name : Date : Title : or; Date : A copy of the executed " Release of Telephone : • Information Form ' is attached which authorizes the release of information requested . WARNING : Florida Statute 817 provides that willful false statements or misrepresentation concerning income and assets or liabilities relating to financial condition is a misdemeanor of the first degree and is punishable by fines and imprisonment provided under S 775 .082 or 775 . 83 . - HUD CHILD SUPPORT INCOME VERIFICATION LETTER EQUAL MOUSING OPPORTUNITY FROM : Indian River County NSP Indian River Habitat for Humanity 4568 N . US Highway 1 Vero Beach , FL 32967 (772) Office (772) 562 - 8732 Fax DATE . TO : DEPARTMENT OF REVENUE CHILD SUPPORT ENFORCEMENT 1436 OLD DIXIE HIGHWAY, SUITE VERO BEACH , FL 329604798 The following applicant has applied for public housing assistance . Our agency is required to conduct a third party verification of all applicants applying or living in federally assisted housing . STATEMENT OF AUTHORIZATION : AUTHORIZE THE DEPARTMENT OF REVENUE TO RELEASE ANY INFORMATION OR MATERIALS WHICH ARE DEEMED NECESSARY TO COMPLETE MY DETERMINATION OF ELIGIBILITY FOR PARTICIPATION IN THE NEIGHBORHOOD STABILIZATION PROGRAM . X Name of Applicant ( printed ) Signature of Applicant Date Social Security Number of Applicant Housing Agency Representative Date TO BE COMPLETED BY DEPARTMENT OF REVENUE DOR VERIFICATION : ❑ Find attached records on child support paid to the custodial family for the past 12 months . ❑ The above mentioned person has registered with our agency and has applied for enforcement action , but is not currently receiving support . ❑ The above mentioned person has not registered with our agency or has not received child support payments , DOR Representative ( Signature ) Title Date Y Ark VERIFICATION OF : Employment - Applicant Name of Employer: (Applicant Information) Employed Since Occupation Name of Applicant or Tenant : Pay rate: Date of Next Increase Pay Frequency (Hr, Wk , Mo) : Average Hours per Week at Base Pay Rate: Social Security Number: Hours Weeks or Months worked per year. Return to . Average number of overtime hours expected during the next 12 months Overtime Pay Rate: Per Hour . NSP Program Coordinator Indian River Habitat for Humanity Total Base Pay expected for the next 12 months$ 4568 N . US Highway 1 Vero Beach , FL 32967 Any other compensation not included above (specify for commissions, bonuses, tips, etc.) Pax : 772 - 562 - 8732 FOR $ Per . Vacation Pay (Y or N) If yes , Number of days per year Total Base Pay Earnings for past 12 months $ Your prompt return of the requested information will Total Overtime Earnings for past 12 months $ be appreciated . A self-addressed return envelope IS Probability & Expected Date of Any Pay Increase : enclosed . Does the employee have access to a Retirement Account? ❑ Yes ❑ No If yes, what amount can they get access to? $ * Employers — Please complete this sect RELEASE : I hereby authorize the release of Signature of or the requested information . X Authorized Representative •( Signature of Applicant/Tenant) Date : Agency Name : or ; Title : A copy of the executed " Release of Information Form " is attached which authorizes the release Date : of information requested . Telephone : WARNING : Florida Statute 817 provides that willful false statements or misrepresentation concerning income and assets or liabilities relating to financial condition is a misdemeanor of the first degree and is punishable by fines and imprisonment provided under S 775.082 or 775. 83 . .Syw' VERIFICATION OR Employment — Co-Applicant Name of Employer: (Applicant Information) Employed Since occupation Pay rate: Date of Next Increase Name of Applicant or Tenant: Pay Frequency (Hr, Wk , Mo) : Average Hours per Week at Base Pay Rate: Social Security Number: Hours Weeks or Months worked per year. Return to : Average number of overtime hours expected during the next 12 months Overtime Pay Rate: Per Hour . NSP Program Coordinator Indian River Habitat for Humanity Total Base Pay expected for the next 12 months$ 456 $ N . US Highway 1 Any other compensation not included above (specify for Vero Beach , FL 32967 commissions, bonuses, tips, etc.) Fax : 772 FOR $ PerNow Vacation Pay (Y or N) If yes, Number of days per year Total Base Pay Earnings for past 12 months $ Your prompt return of the requested information will Total Overtime Earnings for past 12 months $ be appreciated . A self-addressed return envelope Is Probability & Expected Date of Any Pay Increase : enclosed . Does the employee have access to a Retirement Account? ❑ Yes ❑ No If yes , what amount can they get access to? $ * Employers - Please complete this sect RELEASE : I hereby authorize the release of Signature of or the requested information . X Authorized Representative (Signature of Applicant/Tenant) Date : Agency Name : or ; Title : A copy of the executed " Release of Information Form " is attached which authorizes the release Date : of information requested . Telephone . WARNING : Florida Statute 817 provides that willful false statements or misrepresentation concerning income and assets or liabilities relating to financial condition is a misdemeanor of the first degree and is punishable by fines and imprisonment provided under S 775.082 or 775 . 83 .