Florida Homebuyer Opportunity Program (FLHOP)
In conjunction with The City of Cape Coral, Cape Coral Housing Devlopment Corporation will begin accepting applications for the Florida Homebuyer Tax Credit Program September 28, 2009. The City has been allocated $165,516 under this program and anticipates serving approximately fifteen (15) first time homebuyers. This program will allow homebuyers eligible for the $8,000 First Time Homebuyers Tax Credit the ability to advance this tax credit to use towards the down payment on the purchase of the property.
Income Categories to be served:
Up to $75,000 for single taxpayers or $150,000 for joint filers.
Maximum Award:
The maximum award shall not exceed ten (10) percent of the purchase price or $8,000 whichever is less.
Terms, Recapture and Default:
The homebuyer is expected to use their federal income tax return to fully repay the loan. If the City of Cape Coral receives repayment from the homebuyer within the earlier of 18 months after the closing date of the loan or ten (10) days after the receipt of their federal income tax refund, the county shall waive all interest charges. The amount of assistance provided will be subject to a subordinate mortgage for ten (10) years on the property in the amount of the subsidy. The mortgage is zero interest, deferred payment, non-amortizing and will be payable in full plus a ten (10) percent penalty at maturity. If the loan is repaid within the earlier of 18 months after the closing date of the loan or ten (10) days after the receipt of their federal income tax refund, repayment will require only the principal amount of the mortgage with no penalty.
The second mortgage will be recaptured upon any of the following events occurring prior to the 10-year term. In addition, should the recapture occur in months 18-120 a ten percent (10%) penalty will be applied.
§ The eligible client fails to maintain homestead exemption status as provided by the Lee County Property Appraisers Office.
§ Sale and/or relinquish of interest in the assisted property or transfer of title of the assisted property.
§ Refinance of the original first mortgage with cash out on the assisted property for any reason.
§ The property ceases to be the primary residence of the recipient(s).
§ Upon the death of all SHIP program recipients
§ Based on substantiated documentation, program administrators/proper authorities will investigate all suspected cases of program eligibility fraud. Clients that have been found guilty of violating Florida Statute 817 shall require full repayment of SHIP funds loaned/granted under the City of Cape Coral SHIP program.
Applicant Selection Criteria:
§ To qualify as a first time homebuyer, applicants must not have owned a home within the last three years and be eligible to receive the first time homebuyer tax credit created through the American Recovery and Reinvestment Act of 2009.
§ Applicants must certify that there are no unpaid obligations that could be offset against the credit.
§ Assistance is limited to persons receiving financing in accordance with the City of Cape Coral Lender Guidelines.
§ Applicants that have met income qualifications and program requirements will be assisted on a first come, first ready basis providing funding is available.
§ Clients assisted through this strategy will not be eligible for assistance through any other SHIP strategy other than the foreclosure prevention strategy.
§ Priority will be given to applicants that fall within 120% the area median income and applicants currently on the wait list for SHIP assistance.
Applications can be downloaded from www.capecoralaffordablehousing.org or by contacting Cape Coral Housing Development at 239-471-0922 and requesting a “FLHOP Application.” For further information on the FLHOP program contact Cape Coral Housing Development at 239-471-0922 or City of Cape Coral Planning and Growth Management Division at 239-573-3182.
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