Florida’s  HOP program

For a brief overview of the program, please see my first posting

Additional Building Requirements:

All Units must be new construction which have not been previously occupied except that Members that are counties and eligible municipalities that are administrators of SHIP funding may make reservations for Eligible Homebuyers for HOP funds on Units that are currently in the process of Substantial Rehabilitation.

1. At no time shall the HOME financing exceed the Maximum Per Unit Subsidy Limits pursuant to 24 CFR § 92.250.
2. The maximum per-unit subsidy of HOP funding is limited to the lesser of twenty five percent (25%) of the purchase price of the Unit, $70,000, or the amount necessary to meet the borrower analysis criteria, with the exception of Eligible Homebuyers with disabilities and those at fifty percent (50%) AMI or below, which shall not exceed the lesser of thirty five percent (35%) of the purchase price, $80,000, or the amount necessary to meet the borrower analysis criteria.
3. Eligible participants include non-profit organizations, as defined in Internal Revenue Code of 1986 (26 USC 42, subsection 501(c)(3) or 501(c)(4)) and organized under Chapter 617, F.S., if a Florida Corporation, or under similar state law if organized in a jurisdiction other than Florida, for-profit organizations acting solely as the developer / builder, Community Housing Development Organizations (CHDOs) approved by Florida Housing Finance Corporation, counties and eligible municipalities that are administrators of SHIP funding, and the United States Department of Agriculture – Rural Development (USDA-RD), which has been approved by the Corporation to participate in the HOP program.
4. A Member may not be a Financial Beneficiary of another Member.
5. Members shall be limited to a maximum of 60 Units per calendar year and no more than 10 Units in the reservation system at a time.
6. The HOP Loan shall be evidenced by a properly executed and recorded note and secured by a properly executed and recorded mortgage provided by the Corporation.
7. The HOP Loan should not be in lower than a second lien position; however, it may occupy a lien position lower than second if another source of down payment assistance from a local government is provided to the Eligible Homebuyer in an amount that exceeds the HOP Loan. The HOP Loan shall not share priority with any other liens unless approved by the Board.
8. The combined loan-to-value ratio cannot exceed one hundred five percent (105%) of the after construction or appraised value of the Unit with the exception of Eligible Homebuyers with disabilities for which the ratio cannot exceed one hundred twenty percent (120%). In the loan-to-value calculation, the Corporation will not include any subsidy that contains forgivable terms within a five (5) year period or any portion of a subsidy that is forgivable within a five (5) year period.
9. In the case of Community Land Trusts, Eligible Homebuyers may assume HOP Loans, subject to further approval by Corporation staff.
10. When HOP funds are used with other Corporation programs, the more stringent borrower analysis criteria will apply as it relates to eligibility requirements; however, in no instance can the HOP Loan be combined with any other Corporation down payment assistance funds.
11. All Units must undergo any inspections required under 24 C.F.R. § 92.251(a)(2)24.
12. A Unit shall qualify as affordable housing if:
    1. The value or initial purchase price of the property after construction does not exceed ninety-five percent (95%) of the median purchase price for the area
    2. The purchase price of the property after construction must not exceed the appraised value of the property
    3. The Model Energy Code requirements are met or exceeded as enumerated in 2007 Florida State Energy Code (which exceeds 2006 International Energy Conservation Code.
13. Members are responsible for providing the assigned servicing entity with completed documentation of the homebuyer.
14. Homebuyer reservations will be denied or cancelled if a Member or any Principal, or Affiliate of a Member has any existing developments participating in any Corporation programs that remain in non-compliance with the Code, the applicable Florida Statutes and rule chapters, loan documents, or any loan commitment after any applicable cure period granted for correcting such non-compliance has ended.
15. If the Board determines that any Member or any Affiliate of a Member has:
    1. Engaged in fraudulent actions
    2. Materially misrepresented information to the Corporation regarding any of its developments within the current Application or in any previous applications for financing or an allocation of Housing Credits administered by the Corporation
    3. Been convicted of fraud, theft or misappropriation of funds
    4. Been excluded from federal or Florida procurement programs
    5. Been convicted of a felony, and upon determination by the Board that such action substantially increases the likelihood that the Member will not be able to produce quality affordable housing, the Member or any Principal, or Affiliate of a Member or developer will be ineligible for funding or allocation in any program administered by the Corporation for a period of two (2) years, which will begin from the date the Board makes such determination, pursuant to Sections 420.507(14) and (34), F.S. Such determination shall be made either pursuant to a proceeding conducted pursuant to Sections 120.569 and 120.57, F.S., or as a result of a finding by a court of competent jurisdiction.

Introduction to HOP Program:

Requirements for Building Eligibility:

Additional Building Requirements:

Eligible Homebuyer Requirements:

Homebuyer Loan Process:

Become a HOP Builder: