Miami-Dade Legislative Item
File Number: 112662
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File Number: 112662 File Type: Resolution Status: Adopted
Version: 0 Reference: R-155-12 Control: Board of County Commissioners
File Name: USING NSP-2 FUNDS BUY MORTGAGE OF FINANCED COUNTY MORTGAGES Introduced: 12/21/2011
Requester: NONE Cost: Final Action: 2/7/2012
Agenda Date: 2/7/2012 Agenda Item Number: 11A7
Notes: Title: RESOLUTION DIRECTING THE MAYOR OR THE MAYOR’S DESIGNEE TO STUDY THE CONCEPT OF USING NSP-2 OR OTHER AVAILABLE FUNDS TO BUY OUT OR BUY DOWN FIRST MORTGAGE LOANS BY BANKS ON HOMES THAT WERE ALSO FINANCED BY COUNTY SECOND MORTGAGES LOANS
Indexes: NONE
Sponsors: Jean Monestime, Prime Sponsor
Sunset Provision: No Effective Date: Expiration Date:
Registered Lobbyist: None Listed


Legislative History

Acting Body Date Agenda Item Action Sent To Due Date Returned Pass/Fail

Board of County Commissioners 2/7/2012 11A7 Adopted P

Internal Mgmt. & Fiscal Responsibility Committee 1/10/2012 2D Forwarded with a favorable recommendation P
REPORT: Assistant County Attorney Oren Rosenthal read into the record the title of the foregoing proposed resolution. Hearing no questions or comments from Committee members or the Administration, the Committee proceeded to vote on the foregoing resolution.

County Attorney 12/21/2011 Referred Internal Mgmt. & Fiscal Responsibility Committee 1/10/2012

County Attorney 12/21/2011 Assigned Cynthia Johnson-Stacks

Legislative Text


TITLE
RESOLUTION DIRECTING THE MAYOR OR THE MAYOR’S DESIGNEE TO STUDY THE CONCEPT OF USING NSP-2 OR OTHER AVAILABLE FUNDS TO BUY OUT OR BUY DOWN FIRST MORTGAGE LOANS BY BANKS ON HOMES THAT WERE ALSO FINANCED BY COUNTY SECOND MORTGAGES LOANS

BODY
WHEREAS, as of 2011, there were 12,792 foreclosure filings in Miami-Dade County (the “County”), following 34,400 foreclosure filings in 2010; and
WHEREAS, Miami-Dade County has made numerous second mortgage loans to very-low, low and moderate income homeowners who have participated in County second mortgage programs, such as the Documentary Surtax program (“County VLMI Homeowners”); and
WHEREAS, due to the economic downtown, many County VLMI Homeowners are unable to make their first mortgage payments to banks who have given these homeowners first mortgage loans (“County VLMI First Mortgage Lenders”) and such lenders have filed or are about to file foreclosure actions against the County VLMI Homeowners; and
WHEREAS, a foreclosure of these first mortgages not only would foreclose and wipe out the County’s second mortgages, it would impact vulnerable people and families; further increase such individuals’ dependence on safety net assistance provided by the County and other governments; and result in abandoned homes affecting the value of real property in the County and consequently, the County’s tax base; and
WHEREAS, the Mayor reported in a memo dated November 9, 2011, that since 2006, there have been 229 foreclosure actions against County VLMI Homeowners; and
WHEREAS, the County should use its best effort to determine what steps can be taken to prevent County VLMI Homeowners from having their home loans foreclosed by County VLMI First Mortgage Lenders, including studying whether there are funds available to buy out or buy down such first mortgages, thus preventing or forestalling a foreclosure; and
WHEREAS, $89,375,000 of Neighborhood Stabilization Funds II (NSP-2) funds were provided to the Neighborhood Housing Services of South Florida, Inc. – the Miami-Dade NSP Consortium (the “Consortium”), which is comprised of six nonprofit developers and the City of North Miami, according to http://miamidadensp.org for purposes which include foreclosure prevention; and
WHEREAS, NSP-2 funds were awarded by the US Department of Housing and Urban Development with a tight timeline for expenditure, and may be subject to recapture if funds are not expended by the deadlines provided in the program; and
WHEREAS, any alternative plans to keep funds dedicated to helping Miami-Dade homeowners, instead of being recaptured and made unavailable to the Consortium or the County, should be examined; and
WHEREAS, the County should work with the Consortium to explore opportunities to use NSP2 funds which are not yet expended or committed by the Consortium or other funding sources to buy out or buy down County VLMI First Mortgage Lenders; and
WHEREAS, such a program would achieve the goals of the NSP program while protecting the County’s investment in these properties,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that the Board of County Commissioners directs the Mayor or the Mayor’s designee to engage the Consortium awarded the NSP-2 grant to determine the potential for leveraging NSP-2 and other funding to buy out or buy down first mortgage loans made by County VLMI First Mortgage Lenders entering or under foreclosure and report the findings to the Board of County Commissioners; such report shall be submitted in writing to the members of the Board no later than 60 days from the effective date of this resolution and shall set forth the Mayor’s recommendations as to how to establish the program contemplated by this resolution and a proposed timeline during which such program could be implemented.



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