Ordinance 95-2989 ORDINANCE NUMBER 95-2989
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA PURSUANT TO THE STATE
HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM, PROVIDING
FOR DEFINITIONS; PROVIDING FOR THE CREATION OF THE LOCAL
HOUSING ASSISTANCE TRUST FUND; PROVIDING FOR THE
ESTABLISHMENT OF THE LOCAL HOUSING PARTNERSHIP;
PROVIDING FOR THE INTENT AND PURPOSE OF THE LOCAL
HOUSING ASSISTANCE PROGRAM; PROVIDING FOR THE
ESTABLISHMENT OF THE LOCAL HOUSING ASSISTANCE PROGRAM;
DESIGNATING THE RESPONSIBILITY FOR THE IMPLEMENTATION
AND ADMINISTRATION OF THE LOCAL HOUSING ASSISTANCE
PROGRAM; PROVIDING FOR THE CREATION OF AN AFFORDABLE
HOUSING ADVISORY COMMITTEE; PROVIDING FOR TERMS OF SAID
COMMITTEE; PROVIDING FOR DUTIES AND RESPONSIBILITIES OF
SAID COMMITTEE; PROVIDING FOR GUIDELINES TO BE UTILIZED BY
SAID COMMITTEE IN ADOPTION OF THE RECOMMENDATIONS FOR
THE AFFORDABLE HOUSING INCENTIVE PLAN; PROVIDING FOR
ADOPTION OF THE AFFORDABLE HOUSING INCENTIVE PLAN;
PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE
DATE.
SECTION I. DEFINITIONS
A. As used in the Ordinance, the terms:
(1) "Adjusted for family size" means adjusted in a manner which results in an
income eligibility level that is lower for households having fewer than four
people, or higher for households having more than four people, than the
base income eligibility determined as provided in Subsections (26), (27) or
(36), based upon a formula established by the United States Department of
Housing and Urban Development.
(2) "Administrative expenses" means those expenses directly related to
implementation of the Local Housing Assistance Plan and Local Housing
Assistance Program.
(3) "Affordable" means that the occupants pay no more than 30 percent of
gross income for gross housing costs, including utility costs. However, it
is not the intent to limit an individual household's ability to devote more than
30 percent of their income for housing.
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(4) "Affordable Housing Advisory Committee" or "Advisory Committee" means
the committee appointed by the City Commission of the City of Miami
Beach for the purpose of studying and recommending specific initiatives
and incentives to encourage or facilitate affordable housing as provided in
Section 420.9076, Florida Statutes.
(5) "Annual Anticipated Gross Income" means the gross amount of wages,
income from assets, regular cash or non-cash contributions, and any other
resources and benefits determined to be income by the U.S. Department
of Housing and Urban Development. This is the amount of income
anticipated to be received by all adults in a household during the twelve
months following the effective date of the determination. Anticipated income
is generally determined by annualizing current income for the next twelve
months.
(6) "Award" means a loan, grant or subsidy funded wholly or partially using
funds administered by the City's Housing and Community Development
Division.
(7) "Community-Based Organization" means a nonprofit organization that has
among its purposes the provision of affordable housing to persons who
have special needs or have very low income, low income or moderate
income within a designated area, which may include the City of Miami
Beach and maintains, through at least one-third representation on the
organization's governing board, accountability to housing program
beneficiaries and residents of the designated area.
(8) "Eligible Housing" means any real and personal property located within the
City which is designed and intended for the primary purpose of providing
decent, safe and sanitary residential units that are designed to meet the
standards of Chapter 553, Florida Statutes, for homeownership or rental for
eligible persons as designated by the City through the Local Housing
Assistance Program. Housing must be within the maximum purchase price
limitations as established by the United States Department of Treasury in
accordance with Revenue Proclamation and must meet affordability
requirements in order to qualify as eligible housing for eligible persons to
the extent of compliance with all other eligibility and program criteria.
(9) "Eligible person" means one or more natural persons, a family, or persons
who have special housing needs who are certified by the City or its
designee, to be very low income, low income or moderate income
according to the annual anticipated gross income of the resident.
(10) "Eligible sponsor" means a community-based organization, a person or a
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private or public for-profit or nonprofit entity that applies for an award under
the Local Housing Assistance Program for the purpose of providing eligible
housing for eligible persons.
(11) "Home Ownership" means the use of the local housing distribution monies
for the purpose of providing owner-occupied housing. Such uses may
include, but are not limited to, construction, rehabilitation, purchase and
lease-purchase financing where the primary purpose is eventual purchase
of the housing by the occupant.
(12) "Local Affordable Housing Incentive Plan or Incentive Plan' means the plan
addressing affordable housing incentives required pursuant to Section
420.9076 Florida Statutes and 91-37.010.
(13) "Local Housing Assistance Plan" means a concise description of the Local
Housing Assistance Program adopted by this Ordinance with an explanation
of the way in which the Local Housing Assistance Program meets the
requirements of this Ordinance and Sections 420.907 through 420-9079,
Florida Statutes, and Rule 91-37.005, Florida Administrative Code.
(14) "Local housing distribution funds" means the proceeds of the taxes
collected under Chapter 201, F.S. deposited into the Local Government
Housing Trust Fund and distributed to the City as a result of its participation
in the State Housing Initiatives Partnership Program pursuant to Section
420-9073, F.S.
(15) "Local Housing Partnership" means the implementation of the Local Housing
Assistance Program in a manner that involves, but is not limited to, the
county/city, community-based organizations, for-profit housing developers,
lending institutions, providers of professional services relating to affordable
housing and service organizations working on behalf of persons with special
housing needs. The term includes initiatives to provide support services for
housing program beneficiaries such as training to prepare persons for the
responsibility of homeownership, counseling of tenants and the
establishment of support services such as day care, health care and
transportation.
(16) "Low-income person" means one or more natural persons or a family, not
including students, that has a total annual anticipated gross income for the
household that does not exceed 80 percent of the median annual income
adjusted for family size for households within Dade County. While
occupying the rental unit, a low-income household's annual gross income
may increase to an amount not to exceed 140 percent of 80 percent of area
median income adjusted for family size.
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(17) "Moderate-income person" means one or more natural persons or a family,
not including students, that has a total annual adjusted gross income for the
household that does not exceed 120 percent of the median annual income
adjusted for family size for households within Dade County. While
occupying the rental unit, a moderate-income household's annual gross
income may increase to an amount not to exceed 140 percent of 120
percent of area median income adjusted for family size.
(18) "Personal property" means major appliances, including a freestanding
refrigerator or stove, to be identified on the encumbering documents.
(19) "Persons who have special housing needs" means persons who have
incomes not exceeding moderate income and who, because of particular
social, economic or health-related circumstances, have greater difficulty
acquiring or maintaining affordable housing. Such persons may, for
example, encounter resistance to their residing in particular communities,
increased housing cost resulting from unique needs and high risk of
institutionalization. Such persons may include, but are not limited to,
persons with developmental disabilities; persons with mental
illness/chemical dependency; persons with AIDS and HIV disease, runaway
and abandoned youth, single-parent families; public assistance recipients;
homeless; migrant and seasonal farmworkers; refugees and entrants; and
the elderly and disabled adults.
(20) "Student" means a person not living with his or her parent or guardian who
is eligible to be claimed by the person's parent or guardian under the
Federal Income Tax Code and who is enrolled at least half time in a
secondary school, vocational-technical school, community college or
university. The term does not include a person participating in a job training
program approved by the county or the City.
(21) "Very low-income person" means one or more natural persons or a family,
not including students, that has a total annual adjusted gross income for the
household that does not exceed 50 percent of the median income adjusted
for family size for households within Dade County. While occupying a rental
unit, a very low-income household's annual adjusted gross income may
increase to an amount not to exceed 140 percent of 50 percent of area
median income adjusted for family size.
SECTION II. CREATION OF THE LOCAL HOUSING ASSISTANCE TRUST FUND
A. The Miami Beach Housing Assistance Trust Fund is hereby created and
established. This trust fund shall be established with a qualified depository as defined in
Chapter 280, Florida Statutes, a Local Housing Assistance Trust Fund.
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B. All monies received from the State pursuant to the State Housing Initiative
Partnership Act and any other funds received or budgeted to provide funding for the
Local Housing assistance Program shall be deposited into the Local Housing Assistance
Trust Fund. Administration of the Local Housing Assistance Trust fund shall comply with
rule 91-37.007, Florida Administrative Code. Any funds deposited into the Local Housing
Assistance Trust Fund will be subject to the requirements of the SHIP Program, Florida
Statutes Section 420.9075 (4).
C. Expenditures other than for the administration and implementation of the
Local Housing Assistance Program shall not be made from the Local Housing Assistance
Trust Fund.
D. Amounts on deposit in the Local Housing Assistance Trust Fund shall be
invested in the State Board of Administrator's local government surplus fund established
pursuant to Chapter 218, Part IV, Florida Statutes. All investment earnings shall be
retained in the Local Housing Assistance Trust Fund and used for purposes thereof.
E. Until utilized for the purposes thereof, monies in the Local Housing
Assistance Trust Fund shall be held in trust by the City solely for use pursuant to the
Local Housing Assistance Program. All Local Housing Assistance Program income,
including investment earnings, shall be retained in the Local Housing Assistance Trust
Fund and used for the purposes described herein.
F. The City agrees that the Local Housing Assistance Trust Fund shall be
separately stated as a special revenue fund in the City's audited financial statements.
Copies of the City's annual audited financial statements shall be forwarded to the Florida
Housing Finance Agency as soon as such statements are available.
SECTION III. CREATION OF THE LOCAL HOUSING PARTNERSHIP
A. The Local Housing Partnership is hereby created and established.
B. The Local Housing Partnership shall include, but is not limited to, City
representatives, community-based organizations, for-profit housing developers, lending
institutions, providers of professional services relating to affordable housing and service
organizations working on behalf of persons with special housing needs and homebuilders.
C. The Local Housing Partnership shall assist in the implementation of the Local
Housing Assistance Program. Such implementation shall be consistent with this
Ordinance, Sections 420.907 through 420.9079, Florida Statutes and Rule 91-37, Florida
Administrative Code.
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SECTION IV. INTENT AND PURPOSE OF THE LOCAL HOUSING ASSISTANCE
PROGRAM
A. The intent of the Local Housing Assistance Program is:
(1) To increase the availability of affordable housing units by combining local
resources and cost-saving measures into a Local Housing Partnership and
using private and public funds to reduce the cost of housing.
(2) To Promote leveraging of public and private monies to provide affordable
housing to eligible persons.
SECTION V. ESTABLISHMENT OF THE LOCAL HOUSING ASSISTANCE PROGRAM
A. The Local Housing Assistance Program is hereby created and established.
B. The Local Housing Partnership shall use the funds received from the state
pursuant to the State Housing Initiative Partnership Act to implement the Local Housing
Assistance Program. The funds shall be distributed in the following manner.
(1) Distribution of monies.
(a) Ten percent of all monies may be used for administrative expenses
pursuant to 91-37.002(2).
(b) Sixty-five (65%) percent of all monies for homeownership activities
including acquisition, acquisition/rehabilitation or new construction
for eligible home buyers; rehabilitation or reconstruction for eligible
owner occupants of that amount which represents the percentage of
median adjusted gross annual income for the households as
indicated for Subsection (16), Subsection (17), and subsection (21)
of this Ordinance.
(c) Seventy five (75%) percent of monies for construction, rehabilitation
or emergency repairs of eligible housing. The remaining funds are
for use in eligible activities which further the purposes of the Act and
are consistent with Florida Statutes 420.907 through 420.9079 and
Rule 91-37 Florida Administrative Code.
(2) Distribution of all units constructed, rehabilitated or otherwise assisted.
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(a) Very low-income occupants - at least 30 percent of units.
(b) Low-income occupants - at least 30 percent of units.
(c) Moderate-income occupants - not more than 40 percent of units.
(3) Loan terms.
(a) Loans shall be provided for periods not exceeding 30 years except
for deferred payment loans or loans that extend beyond 30 years in
order to provide affordable housing which continues to serve eligible
persons.
(b) Eligible housing constructed, rehabilitated or otherwise assisted from
proceeds provided from the housing assistance program shall be
subject to the recapture provisions adopted as a part of the local
Housing Assistance Plan.
(c) The total amount of monthly mortgage payments shall be made
affordable. Affordable shall mean that monthly mortgage payments
including taxes and insurance do not exceed 30 percent for the
various income groups assisted.
(4) Cost per unit.
(a) The cost per unit and the maximum cost per unit for eligible housing
benefiting from awards made pursuant to this program will be
established by resolution.
(b) A qualification system for applications for awards will be established
through the Local Housing Assistance Plan.
(c) The staff of the City's Housing and Community Development
Division, which has administrative authority for this Local Housing
Assistance Program shall annually monitor and determine tenant
eligibility for rental units. The staff shall also determine the amount
of subsidy pursuant to the provisions of this Ordinance and state and
federal law.
(5) Nondiscrimination.
(a) The City, the local partnership, and all eligible sponsors shall not
discriminate on the provision of affordable housing to very low-
income, low-income or moderate-income individuals on the basis of
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race, creed, religion, color, age, sex, marital status, familial status,
national origin or handicap in the loan application process for eligible
housing.
(5) Compliance.
(a) The City shall comply with all rules and regulations of the Florida
Housing Finance Agency in connection with required reporting by the
City of compliance with its Local Housing Assistance Program.
(b) Prior to receiving an award, all eligible sponsors or eligible persons
shall enter into an agreement with the City, agreeing to comply with
the affordable housing criteria provided under Sections 420.907
through 420.9079, Florida Statutes and this Ordinance. All eligible
sponsors or eligible persons developing rental housing shall either
include in any deed transferring ownership of property pursuant to
the Local Housing Assistance Program to such eligible person or
sponsor a covenant agreeing to comply with the terms of the above-
described laws which covenant will run with the land.
SECTION VI. DESIGNATION OF RESPONSIBILITY FOR ADMINISTRATION AND
IMPLEMENTATION OF THE LOCAL HOUSING ASSISTANCE PROGRAM
A. The Housing and Community Development Division of the City of Miami
Beach shall be responsible for implementation of the Local Housing Assistance Program.
B. The total amount paid for any administrative expenses in connection with
the Local Housing Assistance Program will not exceed ten percent of the proceeds of the
local housing distribution as approved by resolution.
C. In implementing the Local Housing Assistance Program, the City shall:
(1) Advertise the availability of a housing assistance program in a newspaper
of general circulation and periodicals serving ethnic and diverse
neighborhoods at least 30 days before the beginning of any application
period.
(2) Adopt a maximum award schedule or system of awards to comply with the
following criteria:
(a) Sixty-five percent of the funds shall be reserved for homeownership
for eligible persons.
(b) Seventy-five percent of the funds shall be reserved for construction,
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rehabilitation or emergency repair of eligible housing.
(c) The sales price of new or existing eligible housing shall not exceed
90 percent of the median area purchase price in the area where the
eligible housing is located as established by the United States
Department of Treasury in accordance with Section 3(b) 2 of the
United States Housing Act of 1937.
(d) All units constructed, rehabilitated or otherwise assisted with program
funds shall be occupied by very low-income, low-income or
moderate-income persons and persons who have special housing
needs. At least 30 percent of units must be occupied by very low-
income persons and at least another 30 percent by low-income
persons. The remaining 40 percent shall be occupied by persons
who have special housing needs, very low-income, low-income or
moderate-income persons.
(e) The amount of monthly mortgage payments or the amount of
monthly rents charged by the eligible sponsor or its designee must
be affordable to the various income groups assisted.
(f) Loans shall be provided for periods not exceeding 30 years except
for deferred payment loans or loans that extend beyond 30 years
which continue to provide eligible housing for eligible persons.
(g) Eligible housing constructed, rehabilitated or otherwise assisted from
proceeds provided from the Local Housing Assistance Program shall
be subject to subsidy recapture provisions contained in the local
Housing Assistance Plan.
(h) The cost per unit and the maximum cost per unit for eligible housing
benefiting from awards made pursuant to the Local Housing
Assistance Program shall be established in the local Housing
Assistance Plan which is adopted by resolution.
(i) A qualification system for applicants for awards consistent with the
intent of the Local Housing Assistance Program and Sections
420.907 through 420.9079, Florida Statutes shall be established by
the City.
(3) The City, the Local Housing Partnership and all eligible sponsors
shall not discriminate in the loan application process of eligible
persons for eligible housing on the basis of race, creed, religion,
color, age, sex, sexual preference, marital status, familial status,
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national origin or handicap.
(4) The City shall comply will all rules and regulations of the Florida
Housing Finance Agency in connection with required reporting by the
City of compliance with its Local Housing Assistance Program.
(5) Prior to receiving an award, all eligible persons or eligible sponsors
shall enter into an agreement to comply with the affordable housing
criteria provided under Sections 420.907 through 420.9079, Florida
Statutes and this Ordinance. All eligible persons or eligible sponsors
involved in rental housing shall include in the deed transferring
ownership of the property to the eligible person or eligible sponsor
a covenant agreeing to comply with the terms of the above-
described laws which covenant will run with the land.
(6) Eligible sponsors receiving assistance from both the SHIP Program
and the Low Income Housing Tax Credit (LIHTC) Program shall be
required to comply with the income, affordability and other LIHTC
requirements. Similarly, any eligible housing receiving assistance
from SHIP and other federal programs shall be required to comply
with any requirements specified by the federal program in addition to
SHIP requirements.
SECTION VII. CREATION OF THE AFFORDABLE HOUSING ADVISORY COMMITTEE
A. The Affordable Housing Advisory Committee is hereby created and
established. The members of the Advisory Committee shall be appointed by resolution
of the City Commission.
B. The resolution appointing the Affordable Housing Advisory Committee shall
define affordable housing as applicable to the City in a way that is consistent with the
adopted local Comprehensive Housing Affordability Strategy.
C. The Affordable Housing Advisory Committee shall consist of nine members.
Five members shall constitute a quorum. The committee may not take formal actions
unless a quorum is present, but may meet to hear presentations if duly noticed. the
Affordable Housing Advisory Committee shall include representatives of the following
groups, which individuals may overlap with or be part of the Local Housing Partnership:
(1) One citizen who is actively engaged in the residential building
industry.
(2) One citizen who is actively engaged in the banking or mortgage
industry.
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(3) One citizen who is a representative of those areas of labor engaged
in home building.
(4) One citizen who is designated as an advocate for low-income
persons.
(5) One citizen who is a provider of affordable housing.
(6) One citizen who is a real estate professional.
(7) Three citizens-at-large as appointed by the City Commission.
D. Members shall serve for a one year terms.
E. Meetings shall be held monthly for the first year of committee existence and
quarterly, or more frequently, thereafter.
F. The Affordable Housing Advisory Committee shall comply with the
Government in the Sunshine Law, the public records law, and the special provisions
regarding notice of Affordable Housing Incentive Plan considerations found in Chapter
420.9076, Florida Statutes. Minutes of the meeting shall be kept. Staff, administrative and
facility support shall be provided by the City.
G. The Affordable Housing Advisory Committee shall annually elect a
Chairperson, Vice-Chairperson and such other officers as it deems necessary. The
Chairperson is charged with the duty of conducting meetings in a manner consistent with
law.
H. The Affordable Housing Advisory Committee shall review the established
policies and procedures, ordinances, land development regulations and adopted local
comprehensive plan of the City and shall recommend specific initiatives to encourage or
facilitate affordable housing while protecting the ability of the property to appreciate in
value.
I. Recommendations may include the modification or repeal of existing
policies, procedures, ordinances, regulations or plan provisions. At a minimum, the
Affordable Housing Advisory Committee shall make recommendations on affordable
housing incentives in the following areas:
(1) The affordable housing definition in the appointing resolution.
(2) The expedited processing of permits for affordable housing projects.
(3) The modification of impact fee requirements, including reduction or waiver
of fees and alternative methods of fee payment.
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(4) the allowance of increased density levels.
(5) The reservation of infrastructure capacity for housing for very low-income
and low-income persons.
(6) The transfer of development rights as a financing mechanism for housing
for very low-income and low-income persons.
(7) The reduction of parking and setback requirements.
(8) The allowance of zero-lot-line configurations.
(9) the modifications of sidewalk and street requirements.
(10) The establishment of a process by which the City considers, before
adoption, procedures and policies that have a significant impact on the cost
of housing.
(11) Preparation of a printed inventory of locally owned public lands.
J. The Affordable Housing Advisory Committee recommendations shall also
include other affordable housing incentives by the Affordable Housing Advisory
Committee.
K. To the maximum extent feasible, the approved affordable housing incentive
recommendations submitted to the City Commission must quantify the affordable housing
cost reduction anticipated from implementing the specific recommendation.
L. Within nine months from the adoption of this Ordinance, the Affordable
Housing Advisory Committee shall make recommendations approved by a majority of its
membership at a public hearing. Notice of the time, date and place of the public hearing
of the Affordable Housing Advisory Committee to adopt final affordable housing incentive
recommendations shall be published in a newspaper of general paid circulation in the
City. Such notice shall contain a short and concise summary of the affordable housing
incentive recommendations to be considered by the Affordable Housing Advisory
Committee. The Notice shall also state the public place where a copy of the tentative
Affordable Housing Advisory Committee recommendation can be obtained by interested
persons. Following the completion of the task set forth herein, this committee shall cease
to exist, or at the end of one year, which ever occurs sooner.
SECTION VIII. ADOPTION OF THE AFFORDABLE HOUSING INCENTIVE PLAN
A. Within 90 days after the date of the receipt of the affordable housing
incentive, recommendations from the Affordable Housing Advisory Committee, the City
Commission, shall adopt the Affordable Housing Incentive Plan. The Affordable Housing
Incentive Plan shall consist of the adoption of specific
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initiatives to encourage or facilitate affordable housing and a schedule for
implementation and must include, at a minimum:
(1) A schedule for implementation of expedited permit processing for
affordable housing projects; and
(2) An ongoing process for review of local policies, ordinances,
regulations and comprehensive plan provisions that significantly
impact the cost of housing.
the City
B. Upon adoption nthe Floridfaoble Housing Finance Agency by certified mail.
ve Plan,
Commission shall so notify the
The notice shall include a copy of the approved Affordable Housing Incentive Plan.
SECTION IX. SEVERABILITY
If any phrase or portion of this Ordinance, of the particular application
thereof, shall be held invalid or unconstitutional by any court, administrative
agency or other body with appropriate jurisdiction, the remaining section,
subsection, sentences, clauses or phrases and their application shall not be
affected thereby.
SECTION X. EFFECTIVE DATE
This Ordinance shall become effective 30 days after the date ofed formala duly
adoption. The above and foregoing ofewas► amiread Beach,dFaor d:, this
convened meeting of the City
3rd day of May
19' V
._/
ATTEST: 1
/ 41111
Mayor
(SEAL) /
City Clerk r►
1st reading 4/19/95 FORM ROVED
2nd reading 5/3/95 DEPT.
L(f
Date ! ,1
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAM: BEACH FLORIDA 33139
COMMISSION MEMORANDUM NO. ,3q /5
TO: Mayor Seymour Gelber and DATE: May 3, 1995
Members of the City Commission
FROM: Roger M. Cartton
City Manager
SUBJECT: AN ORDINANCE AND THREE IMPLEMENTING RESOLUTIONS AUTHORIZING THE
CITY OF MIAMI BEACH TO SUBMIT AN APPLICATION FOR FISCAL YEAR 1995
FUNDING IN THE AMOUNT OF $353,372 TO THE STATE DEPARTMENT OF
COMMUNITY AFFAIRS, FLORIDA HOUSING FINANCE AGENCY, FOR THE STATE
HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM.
ADMINISTRATION RECOMMENDATION:
The Administration recommends that the Mayor and City Commission concurrently approve the attached
Ordinance on second reading (passed first reading on April 19, 1995)and three related Resolutions which
will permit the City's Development Design and Historic Preservation Services Department, Housing and
Community Development Division to apply for and administer $353,372 in FY 1995 funds available from
the Florida Department of Community Affairs under the State Housing Initiatives Partnership (SHIP)
Program.
BACKGROUND:
Prior to the City Commission meeting of April 19, 1995 the following groups were furnished with a copy
of the proposed SHIP Program, Ordinance and related Resolutions for review: the Miami Beach Chamber
of Commerce, the North Beach Development Corporation (NBDC), the Miami Beach Housing Authority
(MBNA), and the Miami Beach Development Corporation (MBDC) the City's designated Community
Development Housing Organization (CHDO) and whose Director also Chairs the Affordable Housing
Coalition.
Several persons present at the City Commission meeting, including those listed above, spoke on this
issue, and suggested certain modifications to the SHIP Program Plan. The City Commission approved
the Ordinance on first reading, contingent upon certain modifications to the SHIP Housing Assistance Plan,
and directed the City Administration to meet with the concerned organizations.
On Monday April 24th at 10:00 am the above referenced organizations and other interested parties met
in the Mayors Conference room, in order to further refine the SHIP Program Plan/Application in accordance
with the City Commission's direction. The City is committed to working with the above referenced groups,
as well as other interested parties, as the SHIP Program evolves in Miami Beach.
Prior to the meeting a revised copy of the SHIP Housing Assistance Plan had been prepared for
discussion. The following persons attended this meeting that was conducted by the City's Housing and
Community Development Director, and provided input on the SHIP Plan revisions:
• Bruce Singer, Miami Beach Chamber of Commerce
' Ronnie Singer, North Beach Development Corporation
AGENDA ITEM _J
DATE 5-3_9 5
COMMISSION MEMORANDUM
MAY 3, 1995
PAGE 2
• Charles Burkett, North Beach Development Corporation
• Jonathan Fryd, North Beach Development Corporation (member of the Community Development
Advisory Committee)
• Denis Russ, Miami Beach Development Corporation and Chair of the Affordable Housing Coalition
• Shawn Wilson, Miami Beach Development Corporation
• Bob Saland, Affordable Landmarks
ANALYSIS:
Following the April 24th meeting, the SHIP Program Plan was once again revised and sent to all of the
above listed parties. A copy of the newly revised SHIP Housing Assistance Plan is attached, with the
revisions noted in shaded text to ease review.
The specific changes focused on the City Commissions direction to address scattered sites. Thus, Section
III entitled Program Strategies (page 3) was revised as follows:
"Strategy - Home Ownership Program
The City of Miami Beach will implement a single multi-year strategy for State FY 95-96, FY 96-97,
and FY 97-98, to further the City's goals relative to home ownership opportunities. The City's
SHIP Homeownership Program will help very low, low, and moderate income buyers, and persons
with special needs purchase affordable housing in the City of Miami Beach, as follows: 30% of the
units will be for very low income persons earning at or below 50% of the median income, 30% of
the units will be for low income persons whose income is at or below 80% of the median income,
and the remaining units for persons at the moderate income level earning between 80% and 120%
of the median income level. These units will then be sold to eligible persons under this program.
To implement this strategy, scattered sites e.g. condominium units will be acquired and
rehabilitated, thus providing affordable homeownership opportunities as well as improving the
City's existing housing stock. The City wishes to exercise flexibility in determining if this will be
individual sites or would allow several condominium purchases in one building. The City does
however stress the need for the spatial deconcentration of assisted housing units throughout the
City."
Later in the text, Section III also states (on page 4):
"The City estimates that ten (10) units can be acquired and rehabilitated for ownership as follows:
30% of the units, will be for very low income persons earning at or below 50% of the median
income, 30% of the units will be for low income persons whose income is at or below 80% of the
median income, and the remaining units for persons at the moderate income level earning
between 80% and 120% of the median income level.
The Recapture Provisions under Section III (page 5) were revised to mirror the HOME Program. The
participants at the April 24th meeting felt that the SHIP Program homebuyer should realize the equity in
COMMISSION MEMORANDUM
MAY 3, 1995
PAGE 3
the property. It is the City's intent to allow the homeowner to realize the equity from their home. There
are two options that will be used to structure the resale of a unit under the HOME program, as follows:
• Create another affordable housing unit by "recapturing" the City's financial investment.
The City may permit sale of the property with full repayment of the SHIP Program
assistance. Funds subject to recapture, include any development subsidy or direct
assistance to the homebuyer that reduced the purchase price from Fair Market Value to
an affordable price.
' Sell the existing property to as subsequent qualified purchaser. The subsequent
purchaser of the property must be eligible and occupy the property as the principal
residence. The sale of the property to the new qualified buyer must be at a price which
allows for a"fair return of investment, including any improvement' to the seller (the former
homebuyer), and also, the property must be "affordable" to a "reasonable range of
low/moderate income purchasers".
The Public Input and Plan Development Process in Section I and Section II of the Local Housing
Partnerships section (pages 1 and 2)were revised to more accurately reflect the process for refining the
SHIP Program Plan, and to document the recent meetings wherein input was obtained for the revisions
to the SHIP Plan.
The Affordability Considerations (page 6) and the Homeownership Program Strategy (page 3) were
clarified to include the specific number of units per income range, in order to ensure that program
requirements were met, and that moderate income persons whose income is between 80% and 120% of
median income are specifically eligible.
At Commissioner David Pearlson's request, the Plan has been modified to include certain points raised
in the Impact of NIMBYism on Affordable Housing". (See Page 4).
In order to qualify for these funds the City must:
1. Adopt the attached "SHIP Ordinance" containing the following provisions:
' Create a Housing Assistance Trust Fund (essentially, a special bank account to hold the
SHIP funds).
' Designate the implementation and administration responsibility to an entity. (Such as the
existing Housing and Community Development Division of the Development, Design and
Historic Preservation Services Department).
' Create a nine(9) member"Affordable Housing Advisory Committee", whose main function
will be to produce a recommended"Affordable Housing Incentives Plan" for consideration
by the City, within twelve (12) months of passage of the SHIP Ordinance.
COMMISSION MEMORANDUM
MAY 3, 1995
PAGE 4
2. Adopt the attached Resolution authorizing the submission of the "SHIP Program Plan".
3. Adopt the attached Resolution creating a nine (9) member "Affordable Housing Advisory
Committee", whose main function will be to produce an"Affordable Housing Incentives Plan"within
twelve (12) months of passage of the SHIP Ordinance.
4. Adopt the attached Resolution approving the administrative cost amount for the SHIP Program
operated by the City not to exceed 10% of the allocated funds.
5. Submit a certification, signed by the Mayor and City Clerk, indicating the City's Approval of the
Plan.
In keeping with the City Commission's direction on April 19th, the Housing and Community Development
Division staff finalized the SHIP Housing Assistance Program Plan (application), which will be received by
the State of Florida no later than the May 2nd deadline.
CONCLUSION:
The Administration recommends that the Mayor and City Commission concurrently approve the attached
Ordinance on second reading (passed first reading on April 19, 1995) and related Resolutions which will
permit the City's Housing and Community Development Division to apply for and administer $353,372 in
FY 1995 funds available under the State Housing Initiatives Partnership (SHIP) Program.
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