§ 17-142. Compliance procedures.

(A)

Workforce Housing Declaration of Restrictive Covenants and Workforce housing agreement.

(1)

Every WHU established pursuant to Chapter 33, Article XIIA of the Code of Miami-Dade County shall be offered for sale or rental to a qualified household to be used for their own primary residence. The Housing Director shall publish a pricing schedule of rental and sales prices for WHUs in accordance with this article.

(2)

Any developer or other property owner offering a WHU for initial sale or rental shall record in the public records one or more covenants or declarations of restrictions in a form approved by the Housing Director. Such covenants or declarations of restrictions shall include the WHU Agreement, and such further arrangements, restrictive covenants, and resale or rental restrictions as are necessary to carry out the purposes of this article. The developer or other property owner must execute and record a declaration of restrictive covenants assuring that:

(a)

the restrictions of this article shall run with the land for the entire control period;

(b)

the covenants will bind the applicant, any assignee, mortgagee, or buyer, and all other parties that receive title to or interest in the property. These covenants shall be senior to all instruments that facilitate the securing of permanent financing, except as provided in this article.

(3)

Each qualified household purchasing a WHU shall be required to record a mortgage in favor of Miami-Dade County in an amount of $100.00 or such other amount that may be borrowed by a qualified household from the County. A promissory note shall be executed by each qualified household and secured by said mortgage. Said mortgage shall set forth the same covenants, along with the refinancing and resale restrictions as those included in the restrictive covenants required by this section.

(4)

Shared Equity agreement; Equity Share Recapture Fee

(a)

In addition to the requirements set forth in section 17-142(A)(3) of this article, the restrictive covenant shall require each qualified household purchasing a WHU to enter into a shared equity agreement with the County. Said agreement shall be recorded in the public records against the WHU, securing and stating the County's equity share in the WHU and resale and after the control period.

(b)

In the event of an early resale of a WHU by a qualified household, i.e. the sale of a WHU prior to the expiration of the Control Period, such qualified household shall pay to the County, at the closing, an equity share recapture fee, which shall be calculated based on the following schedule:

Year	% Equity Recaptured
0—5	100%
6-10	50%

 

(c)

Notwithstanding the foregoing, the equity share recapture fee shall be reduced by the resale price less the initial purchase price and, if applicable, less the sum of: (a) the amount of any cash down payment from the qualified household's own funds for the purchase of the WHU; (b) the reasonable customary costs of sale of the WHU paid by the qualified household, including any broker's commission; and (c) the value of any documented Qualified Improvements to the WHU that are in compliance with any applicable requirements established by a lender.

(d)

All equity share recapture fees received by the County shall be deposited into the Affordable Housing Trust Fund.

(B)

WHUs offered for sale during the initial or any control period shall not be offered for a price in excess of the greater of: (i) the current maximum WHU sales price as determined by the Housing Director at the time of sale ; or (ii) the purchase price of the WHU (either at the initial sale or upon resale) adjusted upward by the percentage increase in the Consumer Price Index for All Urban Consumers: Miami-Fort Lauderdale, FL (1982-84=100) for Housing, as published from time to time by the U.S. Bureau of Labor Statistics, from the year (or, if available, the month) of purchase to the year (or, if available, the most recent month) of the WHU unit resale.

(C)

A new twenty (20) year control period shall commence upon any resale and/or transfer to a new owner of such WHU within the initial 20-year control period. Any WHU that is owned for an entire 20-year control period by the same individual(s), shall be released from the sales price restrictions under the program. Upon the expiration of the control period, or if the individual owners of a WHU predecease the expiration of the control period, the Housing Director shall record in the public records of Miami-Dade County an instrument or document releasing the WHU from the restrictive covenant required by this program.

A WHU may not be resold during the control period set forth herein for an amount that exceeds the WHU sales price set by implementing order. Prior to offering the dwelling unit for sale during the control period, the WHU owner shall obtain the Housing Director's written approval of the WHU sales price.

The covenants recorded by each developer or other property owner of WHUs shall state in said covenant that the unit is subject to the following provisions:

1.

The covenants shall be senior to all instruments securing permanent financing and shall bind all assignees, mortgagees, purchasers and other successors in interest. Notwithstanding the foregoing, the covenants required herein shall not be senior to any instrument that facilitates the securing of permanent financing from the Federal Housing Administration, Fannie Mae, Freddie Mac, or similar senior lender. In such covenants, the control period and other restrictions on the WHU shall not survive any foreclosure in accordance with such senior lender's guidelines and restrictions.

2.

The total aggregate amount of principal and accrued interest for all financing secured by an individual upon their initial purchase of a WHU shall not exceed 105 percent of the loan-to-value. Any financing in excess of the lesser of (1) Department's maximum WHU sales price at the time of closing; or (2) the property's appraised value shall not be secured by any interest in the applicable individual WHU.

No sale, transfer or foreclosure shall affect the validity of the covenants except as expressly set forth in the provisions of this article. It is provided that, where necessary to facilitate the securing of permanent financing from the Federal Housing Administration, Fannie Mae, Freddie Mac, or similar senior lender, the restrictions must automatically terminate if title to the mortgaged property is transferred by foreclosure or deed-in-lieu of foreclosure, or if the mortgage is assigned to the Secretary of the U.S. Department of Housing and Urban Development.

(Ord. No. 07-05, § 19, 1-25-07; Ord. No. 08-51, § 1, 5-6-08; Ord. No. 15-63, § 2, 7-14-15; Ord. No. 16-138, § 2, 12-20-16)