1. Town of Davie Neighborhood Stabilization Program (NSP) Applicant Workshop January 30, 2010

2. NSP Program Overview Property must be foreclosed and located in one of the eligible target areas (see map in packet) Applicant must be income eligible Applicant must not currently own a home Requires a minimum one percent (1%) purchase discount below current market value – HUD requires a one percent (1%) discount; if appraisal does not support discount, property will not be eligible for NSP. Applicant must take a free HUD approved 8 hour homebuyer education course, a list of available courses will be provided by the Town of Davie.

3. Eligible Uses For NSP Funds Second Mortgage Closing Cost Assistance Second Mortgage Assistance Closing Cost and Second Mortgage Assistance shall be the difference between the amount of first mortgage assistance the buyer qualifies for and the cost of acquiring the property; however, the NSP property acquisition assistance shall not exceed forty thousand dollars ($40,000.00) Third Mortgage Property Acquisition Assistance and Property Rehabilitation Assistance together shall not exceed eighty thousand dollars ($80,000.00)

4. NSP Target Areas

5. Minimum Program Requirements Threshold Requirements  Applicant must be income eligible with verifiable household income  Applicant must qualify for standard fix rate mortgage  Applicant does not currently own a home  Applicant must provide at a minimum an amount equal to 1% of the total purchase price at closing.  Applicant must occupy the home purchased utilizing NSP funds as their principal residence  Property proposed for purchase with NSP funds must be currently vacant, foreclosed and located within an NSP target area  Property appears in suitable living conditions per FHA standards  Accepted purchase offer is at least one percent (1%) below appraised market value  Realtor will complete and submit “Offer to Purchase Agreement” with NSP Addendum to seller  Realtor will work with applicant to obtain conventional fixed rate first mortgage financing

6. NSP Loan Terms Closing cost and second mortgage assistance will be in the form of a zero percent (0%) interest, second position Deferred Payment Loan (DPL). The DPL will be forgiven at the end of a fifteen (15) year period Rehabilitation assistance will be in the form of a zero percent (0%) interest, third position Deferred Payment Loan (DPL). The DPL will be forgiven at the end of a fifteen (15) year period Homebuyer must occupy property as their principal residence for the term of the loan

7. Assistance is available for households with incomes up to 120% of Broward County Area Median Income Broward County 120% Area Median Income 2009 1 person household 2 person household 3 person household 4 person household 5 person household 6 person household 7 person household 8 person household 64,25073,45082,60091,80099,150106,500113,850121,200

8. Eligibility and Income Income Inclusions/Exclusions  Applicant must have sufficient income and credit score to qualify for a conventional fixed rate first mortgage.  Total household income cannot exceed 120% of Broward County Area Median Income  Income includes interest earned from cash, dividend and investment accounts

9. Steps for Applicants Open Enrollment Period NSP Workshop for Homebuyers Lender pre-qualifies applicant/applicant submits lender pre-qualification letter to Town Community Development Department Interested party receives NSP Application packet from Town of Davie (Lender Pre-qualification letter must be provided to Town prior to receiving a NSP application) Town reviews application and determines program eligibility Applicant receives letter of eligibility from Town of Davie Applicant completes HUD approved 8 hour homebuyer education course Applicant applies/obtains pre-approval from lender and submits it to Town of Davie Applicant receives grant award letter from Town of Davie Applicant commences search for eligible foreclosed property within eligible service areas. (Eligible foreclosed property must be located within designated service areas and under contract within 60 days of receipt of Town’s grant award letter).

10. Steps for Applicants cont. Applicant submits offer on property which includes NSP addendum Applicant enters into property purchase agreement Town of Davie obtains appraisal on property (purchase price cannot exceed 99% of appraised value) Town of Davie performs due diligence on property ( title search, lead inspection, asbestos, etc). Town of Davie prepares desktop monitoring property acquisition package for submission to DCA. DCA approves desktop monitoring package Applicant closes on property Town of Davie obtains rehabilitation bids. Applicant enters into contract for rehabilitation of property Home repairs are carried out Applicant takes occupancy of property

11. Successful Program  Applicant and Town working together  Provide all requested information  Full disclosure  Fulfill required steps within timeline  Patience and Understanding (Program must follow DCA & HUD guidelines)  Communication  Home remains vacant until rehabilitation is complete

12. Beneficiary  Stage 1: The Town of Davie will accept Bank Prequalification letters starting on Monday, February 8, 2010 and ending Friday, February 19, 2010 5:00 P.M.  Stage 2: The Town will carry out a lottery selection from the application pool received, 60 applicants will be eligible to receive a Town of Davie NSP Client Application  Stage 3: First 30 people who fully complete the NSP application packet and return the fully completed packet to the Town of Davie Community Development Department and qualify for the program will receive a NSP approval letter from the Town  Stage 4: First 15 pre-approved applicants ready to close on NSP eligible properties will receive Town of Davie NSP purchase and rehabilitation assistance

13. Town of Davie, Florida NSP Workshop for Applicants Questions Town of Davie Housing and Community Development Department (954) 797-1173 nsp@davie-fl.gov