R13-010I
1 RESOLUTION R13 -010
2
3 A RESOLUTION OF THE CITY COMMISSION OF
4' THE CITY OF BOYNTON BEACH, FLORIDA,
5 APPROVING AND ESTABLISHING GUIDELINES
6 FOR A SHORT SALE POLICY FOR THE CITY'S
7 FIRST TIME HOMEBUYER ASSISTANCE
8 PROGRAM; AND PROVIDING AN EFFECTIVE
9 DATE.
10
12 WHEREAS, the City of Boynton Beach's first time homebuyer assistance
13 program provided second mortgage subsidy assistance to eligible households who were
14 first time homebuyers which require full repayment of the second mortgage if the
15 property is sold, transferred or abandoned prior to the expiration of the City's thirty (30)
16 year lien; and
17 WHEREAS, due to the current nationwide economic crisis, many assisted
18 homeowners are seeking to sell /transfer title of their home by way of a "short sale
19 process "; and
20 WHEREAS, the City Commission of the City of Boynton Beach upon
21 recommendation of staff, deems it to be in the best interest of the citizens and residents
22 of the City of Boynton Beach to approve the Short Sale Policy and Guidelines for the
23 City's First Time Homebuyer Assistance
24 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION
25 OF THE CITY OF BOYNTON BEACH, FLORIDA, THAT:
26 Section 1. The foregoing "Whereas" clauses are hereby ratified and
27 confirmed as being true and correct and are hereby made a specific part of this
28 Resolution upon adoption.
I Section 2. The City Commission of the City of Boynton Beach, Florida
2 hereby approves and established guidelines for a Short Sale Policy for the City's First
3 Time Homebuyer Assistance Program, a copy of the program is attached hereto as
4 Exhibit "A ".
5 "• Section 3. This Resolution will become effective immediately upon passage.
6 PASSED AND ADOPTED this 5 day of February, 2013.
7
8 CITY OF BOYNTON BEACH, FLORIDA
9
12 Mayor — Wood
13 -_--
14 r
15 f ,,
16 or — Mack Nl�.
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30 ATTEST:
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35 Ja t M. Prainito, MMC
36 y C
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4 0 ( ora ea _
Commiss' — JeeJ6 Taylor
Commission — Steven I4olzman
Commi ' ner — Way Sega
SHORT SALE POLICY & GUIDELINES
The City of Boynton Beach provides second mortgage subsidy assistance to first-time home buyers through
its state SHIP housing assistance programs. The City Commission approved state regulations require the
Community Improvement Division toencumber, bv way ofa thirty /3O\ year mortgage, all single-family
residential property financially assisted with first time homebuyer grant funding. if the homeowner sells the
assisted property or transfers title in any way, the entire amount mf the second mortgage subsidy becomes
due and payable to the City of Boynton Beach.
When assisted property owners become financially distressed and can no longer afford to pay their first
mortgage; or when the property owner must relocate out ofPalm Beach County, a Short Sale will be
authorized based upon the following criteria:
1. The first mortgage lender must reimburse to City of Boynton Beach $4,000.00 or eight percent (8%) of
the remaining balance owed on the City's Second Mortgage, whichever is less.
3. The buyer ofthe assisted property cannot bea relative mf the seller.
3. The seller ofthe assisted property shall not receive any money from the Short Sale transaction.
4. Community Improvement Division must review and approve the HUD Settlement Statement prior to the
Short Sale closing.
5. Upon receipt of the Short Sale reimbursement, the City shall waive all rights to the file future judgments
for deficiency against the homeowner.
6` Upon receipt of the Short Sale reimbursement, the Community Improvement Division shall satisfy the
second mortgage subsidy. $` request will be made for the City Attorney's office to prepare the
Satisfaction for the City Manager's signature.
7. Clients that have been assisted with the City's Short Sale Policy are restricted from applying to the City of
Boynton Beach for funding for any mf its housing assistance programs for a period of five (S) years.
Q. The owner of the property must provide proof of hardship that must include itemization offinances,
bank statements, proof of income, tax returns, 1 st Mortgage information and property information with
any request for a short sale.