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County Administrator's Report 13. 3.

BCC Regular Meeting

Discussion

Meeting Date:	01/21/2016
Issue: Request for Modification of HOME Low Interest Loan for William and Helen Schofield
From:	Tonya Gant
Department:	Neighborhood & Human Svcs
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Request for Modification of HOME Investment Partnerships Program (HOME) Low Interest Loan from William and Helen Schofield - Tonya Gant, Neighborhood & Human Services Department Director

That the Board either approve or deny the request from William G. and Helen H. Schofield to modify their HOME Low Interest Loan from a 5-year loan to a 10-year loan.

BACKGROUND:

William and Helen Schofield received assistance in 2014 through the County's HOME Investments Partnerships Program (HOME) Substantial Rehabilitation/Reconstruction Program for reconstruction of their homestead property at 9210 Academy Street, Century, Florida. Total assistance provided to the family was over $71,000 (which includes soft costs such as appraisals, title work, etc.) for demolition and reconstruction of a new home. A portion of the assistance the family received was in the form of a five year, 5% interest loan. Monthly principal and interest payments for the $12,775 low interest loan total $241.08 monthly. The mortgage (Exhibit I) and note (Exhibit II) were executed on February 14, 2014.

The Schofield family submitted the attached correspondence (Exhibit III) requesting a modification of their loan from a 5 year loan to a 10 year loan in order to make the monthly payments more affordable due to hardship from health reasons. Mr. and Mrs. Schofield's loan began in March 2015 and to date they have made full payments in March, April, and October 2015 and a partial payment in December 2015. As of January 1, 2016, their current loan balance is $12,099.97. They owe for 2014 taxes.

If approved by the Board, the new monthly payments would be $129.50 and the loan maturity date would be February 2026. New payments would go into effect February 1, 2016.

BUDGETARY IMPACT:

Non payment of the HOME loan constitutes a default of the mortgage terms.

LEGAL CONSIDERATIONS/SIGN-OFF:

If the request is approved by the Board, Neighborhood Enterprise Division will prepare a Modification of Mortgage and Note for execution by the Homeowner in consultation with the County Attorney's Office.

PERSONNEL:

Not applicable.

POLICY/REQUIREMENT FOR BOARD ACTION:

The County currently does not have a loan modification policy in place for recipients of HUD HOME assistance. Therefore, the Schofield family is requesting a mortgage modification which cannot be authorized by staff.

IMPLEMENTATION/COORDINATION:

Neighborhood Enterprise Division will coordinate any recommended action with the Clerk's Finance Division and/or the County Attorney's Office as appropriate.

Attachments
Ex I-Schofield LIL Mortgage
Ex II-Schofield LIL Note
Ex III-Schofield Correspondence