Resolution 2019-30734 RESOLUTION NO. 2019-30734
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING THE AMENDMENTS TO
THE CITY OF MIAMI BEACH LOCAL HOUSING ASSISTANCE PLAN (LHAP) FOR
THE STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM FOR FY
16-19 AND FY 19-22, AS REQUIRED BY THE STATE HOUSING INITIATIVES
PARTNERSHIP PROGRAM ACT, SUBSECTIONS 420.907 - 420.9079; AND
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE ANY NECESSARY
CERTIFICATIONS; AND FURTHER AUTHORIZING THE ADMINISTRATION TO
SUBMIT THE AMENDED LHAP TO THE FLORIDA HOUSING FINANCE
CORPORATION (FHFC) FOR ITS REVIEW AND APPROVAL.
WHEREAS, the State of Florida enacted the William E. Sadowski Affordable Housing Act,
Chapter 92-317 of Florida Sessions Laws, allocates a portion of documentary stamp taxes on
deeds to local governments for the development and maintenance of affordable housing; and
WHEREAS, the State Housing Initiatives Partnership (SHIP) Act, § 420.907-420.9079,
Florida Statutes (1992), and Rule Chapter 67-37, Florida Administrative Code, requires local
governments to develop a one to three year Local Housing Assistance Plan (LHAP) outlining
how funds will be used; and
WHEREAS, on April 13, 2016, pursuant to Resolution No. 2016-29364, the Mayor and City
Commission approved and adopted the City's LHAP for FY 16/17, 17/18 and 18/19, pursuant to
the requirements of the Act and the SHIP Program Rule, issued by the Florida Housing Finance
Corporation (FHFC); and
WHEREAS, the City intends to leverage State and Federal funding allocations to acquire
and rehabilitate a multi-family residential building to expand the City's affordable housing
portfolio and to maximize funding sources and to meet expenditure deadlines; and
WHEREAS, the Administration has prepared a draft for the FY 19/20, 20/21, 21/22,
pursuant to the requirements of the Act and the SHIP Program Rule, issued by the Florida
Housing Finance Corporation (FHFC); and
WHEREAS, in response to an inquiry from a potential mortgage partner, the Administration
considered modifying its current strategy to reflect that the restrictive covenants would
automatically terminate upon the sale of the property pursuant to a mortgage foreclosure action
filed by a first mortgage (superior mortgage) in order to make the program more attractive to a
greater amount of conventional lenders; and
WHEREAS, on December 12, 2018, the Mayor and Commission approved the amendments
to the FY 16-19 LHAP and the new FY 19-22 LHAP via Resolution No. 2018-30621,
incorporation this new strategy; and
WHEREAS, subsequently, upon reconsideration between Housing and City Attorney staff, it
was determined that in order to prioritize the protection of the affordable housing stock in the
City, the Declaration of Restrictive Covenants would continue to remain in place, in the event of
a mortgage foreclosure proceeding filed by a superior mortgage, unless the City approves their
release; and
WHEREAS, the Administration is recommending amending the FY 16-19 LHAP and the FY
19-22 LHAP to reflect that the restrictive covenants will remain in place during the affordability
period, unless the City approves their release; and
WHEREAS, the LHAP is due for initial review to the FHFC by March 1, 2019 and all housing
incentive strategies must be adopted and approved by the Mayor and City Commission before
March 31, 2019; and
WHEREAS, the final LHAP must be approved by the Mayor and City Commission and
FHFC before May 2, 2019.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve
and adopt the amendments to the City's Local Housing Assistance Plan (LHAP) for the State
Housing Initiatives Partnership (SHIP) Program for FY 16-19 and FY 19-22, as required by the
State Housing Initiatives Partnership Program Act, subsections 420.907 - 420.9079; and
authorize the Mayor and City Clerk to execute any necessary certifications; and further
authorize the Administration to submit of the amended LHAP to the Florida Housing Finance
Corporation (FHFC) for its review and approval.
PASSED and ADOPTED this /3 day of Parch. , 2019.
Dan Gelber, Mayor
ATTEST:
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APPROVED AS TO
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MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: March 13, 2019
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING THE
AMENDMENTS TO THE CITY OF MIAMI BEACH LOCAL HOUSING
ASSISTANCE PLAN (LHAP) FOR THE STATE HOUSING INITIATIVES
PARTNERSHIP (SHIP) PROGRAM FOR FY 16-19 AND FY 19-22, AS
REQUIRED BY THE STATE HOUSING INITIATIVES PARTNERSHIP
PROGRAM ACT, SUBSECTIONS 420.907 - 420.9079; AND AUTHORIZING
THE MAYOR AND CITY CLERK TO EXECUTE ANY NECESSARY
CERTIFICATIONS; AND FURTHER AUTHORIZING THE ADMINISTRATION
TO SUBMIT THE AMENDED LHAP TO THE FLORIDA HOUSING FINANCE
CORPORATION (FHFC) FOR ITS REVIEW AND APPROVAL.
•
RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The State Housing Initiatives Partnership Program (SHIP), administered through the Florida
Housing Finance Corporation (FHFC), was established in 1992 by the William E. Sadowski
Affordable Housing Act to stimulate the production of affordable housing statewide. SHIP
Program funds are derived from documentary stamp levies on real estate transactions and held
in the SHIP Program Trust Fund. Annually, FHFC allocates SHIP program funds among
participating jurisdictions on a formula basis. SHIP program funds serve to increase access to
affordable housing for income-eligible participants.
Entitlement communities receiving SHIP funds are required to produce and file a Local Housing
Assistance Plan (LHAP) which governs each community's use of SHIP funds. A new LHAP
must be filed every three years. The LHAP delineates the strategies that will be employed to
increase the availability of affordable housing for income-eligible residents within the jurisdiction.
In response to an inquiry from a potential mortgage partner, the City considered modifying its
current strategy to reflect that the restrictive covenants would automatically terminate upon the
sale of the property pursuant to a mortgage foreclosure action filed by a first mortgage (superior
mortgage) in order to make the program more attractive to a greater amount of conventional
lenders. On December 12, 2018, the Mayor and City Commission approved technical revisions
Page 636 of 1418
to the FY 16-19 LHAP with this new strategy for the FY 19-22 LHAP via Resolution No. 2018-
30621.
Subsequently, upon reconsideration between Housing and City Attorney staff, it was determined
that in order to prioritize the protection of the affordable housing stock in the City, the Declaration
of Restrictive Covenants would continue to remain in place in the event of a mortgage
foreclosure proceeding filed by a superior mortgage, as the City could remove it, if it chose to,
instead of by automatic process.
As such, the LHAP and Declaration of Restrictive Covenant shall continue to reflect the
following language:
"This Declaration of Restrictive Covenants shall survive any proceedings in foreclosure,
bankruptcy probate or any other proceedings at law or in equity."
The City will send the technical revisions to the FHFC for the FY 16-19 and the FY 19-22
LHAP.
CONCLUSION
The Administration recommends approval and adoption of the amendments to the City's Local
Housing Assistance Plan for the State Housing Initiatives Partnership (SHIP) Program for FY
16-19 and FY 19-22, as required by the State Housing Initiatives Partnership Program Act,
subsections 420.907-420.9079; and authorizing the Mayor and City Clerk to execute any
necessary certifications; and further authorizing the administration to submit the amended LHAP
to the Florida Housing Finance Corporation (FHFC)for its review and approval.
KEY INTENDED OUTCOMES SUPPORTED
Ensure Workforce Housing For Key Industry Workers Is Available In Suitable Locations
Legislative Tracking
Housing and Community Services
ATTACHMENTS:
Description
❑ Resolution
o LHAP 16-19
o LHAP 19-22
Page 637 of 1418
City of, Miami Beach
SHIP LOCAL HOUSING ASSISTANCE PLAN (LHAP)
FISCAL YEARS
2016-2017, 2017-2018 and 2018-2019
Amended 12/12/2018
IV\ I AM BEACH
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Table of Contents
Description Page #
Section I, Program Details 3
Section II, Housing Strategies 9
A. Owner-Occupied Rehabilitation: 9
B. Disaster Mitigation Recovery 11
C. New Construction 13
D. Purchase Assistance 15
E. Rental Housing Development 17
F. Acquisition/ Rehabilitation 19
Section Ill, Incentive Strategies 18
A. Expedited Permitting 18
B. Ongoing Review Process 18
C. Affordable Housing Unit Size and Parking Requirements 19
Exhibits 21
A. Administrative Budget for each fiscal year covered in the Plan
B. Timeline for Estimated Encumbrance and Expenditure
C. Housing Delivery Goals Chart (HDGC) For Each Fiscal Year
Covered in the plan
D. Signed LHAP Certification
E. Signed, dated, witnessed or attested adopting resolution
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Program Details:
A. Name of the participating local government:
City of Miami Beach
Is there an Interlocal Agreement: Yes No X
B. Purpose of the program:
1. To meet the housing needs of the very low-, low-, and moderate-income
households; and
2. To expand production of and preserve affordable housing; and
3. To further the housing element of the local government comprehensive
plan specific to affordable housing.
C. Fiscal years covered by the Plan:
FY 2016-2017, FY 2017-2018, and FY 2018-2019
D. Governance:
The SHIP Program (the "Program") is established in accordance with Section
420.907-9079, of the Florida Statutes, and Chapter 67-37of the Florida
Administrative Code. Cities and Counties must be in compliance with these
applicable statutes, rules and any additional requirements as established
through the Legislative process.
E. Local Housing Partnership:
The SHIP Program encourages building active partnerships between
government, lenders, builders and developers, real estate professionals,
advocates for low-income persons and community groups.
In its efforts to expand affordable housing opportunities, the City of Miami
Beach works to establish and build a relationship with a designated
Community Housing Development Organization (CHDO).
F. Leveraging:
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The Plan is intended to increase the availability of affordable residential units
by combining local resources and cost-saving measures into a local housing
partnership and using public and private funds to reduce the cost of housing.
SHIP funds may be leveraged with, or used to supplement, other Florida
Housing Finance Corporation programs and to provide local match to obtain
federal housing grants or programs.
The City of Miami Beach is an Entitlement Community that receives HOME
and CDBG funds from the U.S. Department of Housing and Urban
Development (HUD), which are used in combination with other local funds, to
leverage SHIP funds to increase affordable housing opportunities and reduce
the cost of housing in the City.
G. Public Input:
Public input is solicited through face to face meetings with housing providers,
social service providers, local lenders, and neighborhood associations.
Public input was solicited through the local newspaper in the advertising of
the Local Housing Assistance Plan and the Notice of Funding Availability.
H. Advertising and Outreach:
SHIP funding availability shall be advertised in a newspaper of general
circulation and periodicals serving ethnic and diverse neighborhoods, at least
thirty (30) days before the beginning of the application period. If no funding is
available due to a waiting list, no notice of funding availability is required.
Additionally, the City's outreach efforts will include public workshops, special
meetings with various social service agencies, the City website, and
meetings with various City departments.
I. Waiting List/Priorities:
A waiting list will be established when there are eligible applicants for
strategies that no longer have funding available. Those households on the
waiting list will be notified of their status. Applicants will be maintained in an
order that is consistent with the time applications were submitted as well as
any established funding priorities as described in this Plan. Priorities for
funding described/listed here apply to all strategies unless otherwise stated
in the strategy: Special Needs and Essential Services Personnel applicants.
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J. Discrimination:
In accordance with the provisions of ss.760.20-760.37, it is unlawful to
discriminate on the basis of race, color, religion, sex, national origin, age,
handicap, or marital status in the award application process for eligible
housing. Further, the City does not discriminate on the basis of sexual
identity or orientation.
K. Support Services and Counseling:
Support services are available from various sources. Available support
services may include but are not limited to: Homeownership Counseling,
Credit Counseling, Tenant Counseling, Legal Counseling and Fair Housing
Counseling. All counseling will be provided through qualified HUD-approved
agencies.
L. Purchase Price Limits:
The sales price or value of new or existing eligible housing may not exceed
90% of the average area purchase price in the statistical area in which the
eligible housing is located. Such average area purchase price may be that
calculated for any 12-month period beginning not earlier than the fourth
calendar year prior to the year in which the award occurs. The sales price of
new and existing units, which can be lower but may not exceed 90% of the
median area purchase price established by the U.S. Treasury Department or
as described above.
The methodology used is:
X U.S. Treasury Department
Local HFA Numbers
M. Income Limits, Rent Limits and Affordability:
The Income and Rent Limits used in the SHIP Program are updated annually
by the Department of Housing and Urban Development and posted at
www.floridahousinq.ore.
"Affordable" means that monthly, rents or mortgage payments including taxes
and insurance do not exceed thirty (30) percent of that amount which
represents the percentage of the median annual gross income for the
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households as indicated in Sections 420.9071, F.S. However, it is not the
intent to limit an individual household's ability to devote more than thirty (30)
percent of its income for housing, and housing for which a household
devotes more than thirty (30) percent of its income shall be deemed
Affordable if the first institutional mortgage lender is satisfied that the
household can afford mortgage payments in excess of the thirty (30) percent
benchmark and in the case of rental housing does not exceed those rental
limits adjusted for bedroom size.
N. Welfare Transition Program:
Should an eligible sponsor be used, a qualification system and selection
criteria for applications for Awards to eligible sponsors shall be developed,
which includes a description that demonstrates how eligible sponsors that
employ personnel from the Welfare Transition Program will be given
preference in the selection process.
0. Monitoring and First Right of Refusal:
In the case of rental housing, the staff and any entity that has administrative
authority for implementing the Local Housing Assistance Plan assisting rental
developments shall periodically monitor and determine tenant eligibility or, to
the extent another governmental entity provides the same monitoring and
determination, a municipality, county or local housing financing authority may
rely on such monitoring and determination of tenant eligibility. However, any
loan or grant in the original amount of $10,000 or less shall not be subject to
these annual monitoring and determination of tenant Program eligibility
requirements. Tenant eligibility will be monitored annually for no less than
thirty (30) years or the term of assistance whichever is longer unless as
specified above.
Eligible sponsors that offer rental housing for sale before thirty (30) years or
that have remaining mortgages funded under the Program must give a first
right of refusal to eligible nonprofit organizations for purchase at the current
market value for continued occupancy by Program eligible persons.
P. Administrative Budget:
A line-item budget of proposed Administrative Expenditures is attached as
Exhibit A. The moneys deposited in the Local Housing Assistance Trust
Fund shall be used to administer and implement the Local Housing
Assistance Plan.
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Section 420.9075, Florida Statutes and Chapter 67-37, Florida Administrative
Code, states: "A county or an eligible municipality may not exceed the five (5)
percent limitation on administrative costs, unless its governing body finds, by
resolution, that five (5) percent of the local housing distribution plus five (5)
percent of program income is insufficient to adequately pay the necessary
costs of administering the Local Housing Assistance Plan."
Section 420.9075, Florida Statutes and Chapter 67-37, Florida Administrative
Code, further states: "The cost of administering the program may not exceed
ten (10) percent of the local housing distribution plus five (5) percent of
program income deposited into the trust fund, except that small counties, as
defined in s. 120.52(19), and eligible municipalities receiving a local housing
distribution of up to $350,000 may use up to ten (10) percent of program
income for administrative costs." The City of Miami Beach has adopted the
above findings in the resolution attached as Exhibit E.
Q. Program Administration:
Administration of the Local Housing Assistance Plan will be wholly performed
and maintained by the City of Miami Beach. The Office Housing & Community
Services is the department responsible for carrying out the strategies under the
SHIP LHAP.
R. Project Delivery Costs:
In addition to the administrative costs listed above, the City of Miami Beach will
charge reasonable project delivery costs to cover project estimates/construction
estimates and project inspections, which will be performed by independent
contractors for construction projects. The fee will not exceed $5,000 and will be
included in the loan amount, evidenced by a promissory note ("Note"), and
secured by a recorded Mortgage and Security Agreement ("Mortgage"); and
Declaration of Restrictive Covenants..
S. Essential Service Personnel Definition:
"Essential Service Personnel" are defined as income-eligible employees of
Miami Beach businesses and organizations in the following industries:
1. Accommodations and Food Services (including arts, entertainment, and
recreation); and
2. Retail Trade; and
3. Public Administration (including City of Miami Beach employees); and
4. Healthcare; and
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5. Emergency First Responders.
T. Incorporation of Green Building and Energy Saving products and
processes:
The City of Miami Beach is committed to making the housing stock more energy
efficient. Therefore, the City will require the use of the following features when
economically feasible in the construction/rehabilitation of homes:
1. Water-conserving appliances and fixtures (toilets, showerheads, and
faucets); and
2. Energy star appliances; and
3. Efficient lighting on both the interior and exterior of homes; and
4. Upgrading of insulation materials (attics, walls, roofing); and
5. Tankless water heaters; and
6. Air conditioning with a higher SEER rating.
U. Describe efforts to meet the 20% Special Needs set-aside:
The City will add Special Needs qualification questions to its program eligibility
application and utilize the City's various communications resources (including its
website, Facebook, Twitter, and e-newsletter) to advise the community of this
resources. In addition, the Office of Housing and Community Services (City
department responsible for SHIP Program administration) operates the Success
University Program. This program is a comprehensive family support program
that assists low-income families with various needs, including housing and food.
Through this program, which partners with more than 30 community-based
human services and support agencies, there is an increased opportunity for
identification and referral of eligible households.
V. Describe efforts to reduce homelessness:
The Office of Housing and Community Services is the City department
responsible for the Homeless Outreach Division. As such, it has direct contact
with individuals who are homeless and living in the streets, as well as
individuals/families that are facing the threat of homelessness. Working in
conjunction with other agencies providing certain support services, there is an
opportunity to identify households which may be assisted through participation in
- the SHIP Program; especially those households being provided with
employment and credit repair assistance. The City purchases emergency shelter
beds and sets aside General Funds in order to provide down payment and
security deposits for eligible households transitioning from homelessness.
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II. LHAP Strategies:
A.
Owner-Occupied Rehabilitation: Code 3
a. Summary of the Strategy: Rehabilitation/Repair of single-family
(including condominiums), owner-occupied housing. "Rehabilitation" will
be defined as repairs or improvements that are needed for safe or
sanitary habitation, correction of substantial code violations, structural or
systems faults, or the creation of additional living space. Cosmetic items
may be included on projects if funds are available after completing all
required repairs.
b. Fiscal Years Covered: 2016-2017, 2017-2018 and 2018-2019
c. Income Categories to be served: Extremely low, very low, low, or
moderate-income.
d. Maximum award: $70,000
e. Terms:
1. Loan/Deferred Loan/Grant: Funds will be awarded as a
deferred payment loan, evidenced by a Note, and secured by a
subordinate (unless the City is the sole lender) Mortgage and a
Declaration of Restrictive Covenants, delineating the recapture
period and terms.
2. Interest Rate: 0%
3. Loan Term: Fifteen (15) years ("Affordability Period")
4. Forgiveness: The loan will be forgiven at the end of the term.
5. Default/Recapture: Pursuant to the Declaration of Restrictive Covenants,
the total loan amount shall become due and owing if any of the following
occurs during the Affordability Period: (a) the property is: (i) rented; (ii)
sold or transferred, by operation of law or otherwise (except as to an
approved Program eligible heir); or (iii) encumbered (voluntary or
otherwise), mortgaged or refinanced (except as to a senior mortgage, for
improved payment terms) without the written consent of the City
Manager, or (b) borrower/owner fails to occupy the property as a primary
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home. Once due, the total loan amount shall accrue interest at the rate of
twelve percent (12%) per annum ("Default Interest Rate") from the due
date until paid. The Declaration of Restrictive Covenants survive any
proceedings in foreclosure, bankruptcy probate or any other proceedings
at law or in equity.
In the event that a foreclosure proceeding is commenced against the
property by a senior mortgage holder, the City will make an effort to
recapture funds through the legal process if it is determined that adequate
funds may be available to justify pursuing a repayment.
If the owner sells or transfers the property during the
Affordability Period, the City shall be given the first right to
purchase the property based upon the same material terms
being offered to the owner (the "Right of First Refusal").
The owner will be allowed to refinance a senior mortgage without having
to pay off the City's loan, so long as the new loan amount does not
exceed the then outstanding balance of the senior mortgage (without
additional cash out) and will serve to lower the mortgage payment and/or
interest rate.
In the event that title to the property is transferred by the death of the
owner to a surviving heir, and said heir occupies the property as a
principal residence, within six (6) months from the date of the owner's
death and meets the SHIP Program eligibility requirements, as
determined by the City Manager, in his reasonable discretion, the City will
approve the transfer.
f. Recipient Selection Criteria: All recipients of assistance must meet the
applicable eligibility requirements as stipulated in the Florida Statutes,
SHIP Rule, and this Plan. Applicants will be selected from a waiting list
on a first-qualified, first-served basis. Special Needs households will be
given priority funding until the City fulfills the minimum SHIP Program
requirements for assistance to this target population_
g. Sponsor Selection Criteria: NA
h. Additional Information: Mobile homes and trailers are not eligible for
this strategy. Assisted properties must be located within the City of Miami
Beach corporate limits.
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B.
Disaster Mitigation Code 5
a. Summary of Strategy: Emergency Assistance to eligible households
after the occurrence of a disaster declared by Executive Order
(President of the United States or Governor of the State of Florida). In
the event of a disaster, the City will commit available unencumbered
SHIP funds, as well as other disaster funds that may become available
through the Florida Housing Finance Corporation or any other
emergency funding sources. Disaster funds may be used for, but not
limited to, the following:
1) Purchase of emergency supplies; weatherproofing a damaged
home;
2) Interim repairs to prevent further damage; tree and debris removal
to make the housing unit habitable;
3) Payment of insurance deductibles for rehabilitation of homes
covered under homeowners' insurance policies; and
4) Other activities as proposed by the Federal Government, counties
and eligible municipalities and approved by Florida Housing Finance
Corporation.
b. Fiscal Years Covered: 2016-2017, 2017-2018 and 2018-2019
c. Income Categories to be served: Extremely low, very low, low, or
moderate-income.
d. Maximum award: $40,000
e. Terms:
1. Loan/Deferred Loan/Grant: Funds will be awarded as a
deferred loan, evidenced by a Note, and secured by a recorded
Mortgage and Declaration of Restrictive Covenants, delineating
the recapture period and terms.
2. Interest Rate: 0%
3. Loan Term: Fifteen (15) years ("Affordability Period")
4. Forgiveness: The loan will be forgivable at the end of the term.
paid.
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5. Default/Recapture: Pursuant to the Declaration of Restrictive
Covenants, the total loan amount shall become due and owing if
any of the following occurs during the Affordability Period: (a) the
property is: (i) rented; (ii) sold or transferred, by operation of law
or otherwise (except as to an approved Program eligible heir); or
(iii) encumbered (voluntary or otherwise), mortgaged or
refinanced (except as to a senior mortgage, for improved payment
terms) without the written consent of the City Manager, or (b)
borrower/owner fails to occupy the property as a primary home.
Once due, the total loan amount shall accrue interest at the rate of
twelve percent (12%) per annum ("Default Interest Rate") from the
due date until paid. The Declaration of Restrictive Covenants
survive any proceedings in foreclosure, bankruptcy probate or any
other proceedings at law or in equity.
In the event that a foreclosure proceeding is commenced against
the property by a senior mortgage holder, the City will make an
effort to recapture funds through the legal process if it is
determined that adequate funds may be available to justify
pursuing a repayment.
If the owner sells or transfers the property, the City shall be given
the first right to purchase the property based upon the same
material terms being offered to the owner (the "Right of First
Refusal").
The owner will be allowed to refinance a senior mortgage without
having to pay off the City's loan, so long as the new loan amount
does not exceed the then outstanding balance of the senior
mortgage (without additional cash out) and will serve to lower the
mortgage payment and/or interest rate.
In the event that title to the property is transferred by the death of
the owner to a surviving heir, and said heir occupies the property
as a principal residence, within six (6) months from the date of the
owner's death and meets the SHIP Program eligibility
requirements, as determined by the City Manager, in his
reasonable discretion, the City will approve the transfer.
f. Recipient Selection Criteria: All recipients of assistance must meet
the applicable eligibility requirements as stipulated in the Florida
Statutes, SHIP Rule, and this Plan. Applicants will be selected from a
waiting list on a first-qualified, first-served basis.
g. Sponsor Selection Criteria: NA
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h. Additional Information: Mobile homes and trailers are not eligible for
this strategy. Assisted properties must be located within the City of
Miami Beach corporate limits.
C.
New Construction Code 10
a. Summary of Strategy: To develop homeownership opportunities to
assist eligible buyers to purchase affordable housing in Miami Beach.
Funds will be provided to developers to be used to finance the costs
associated with site acquisition/development, and hard and soft
construction costs. The developer will deliver at least one housing unit for
each maximum award that is allocated for the property construction. The
property must be sold to an income-eligible homebuyer. Upon sale, the
SHIP funding obligations will be passed to the homebuyer and secured by
a note and mortgage.
b. Fiscal Years Covered: 2016-2017, 2017-2018 and 2018-2019
c. Income Categories to be served: Extremely low, very low, low, or
moderate-income.
d. Maximum award: $40,000
e. Terms:
1. Loan/Deferred Loan/Grant: Funds will be awarded as a
deferred loan, evidenced by a Note, and secured by a
subordinate (unless the City is the sole lender) Mortgage
and Declaration of Restrictive Covenants, delineating the
recapture period and terms.
2. Interest Rate: 0%
3. Loan Term: Fifteen (15) years ("Affordability Period")
4. Forgiveness: The loan will be forgiven at the end of the
term.
1. Default/Recapture: Pursuant to the Declaration of Restrictive
Covenants, the total loan amount shall become due and owing if
any of the following occurs during the Affordability Period: (a) the
property is: (i) rented; (ii) sold or transferred, by operation of law or
otherwise (except as to a Program eligible heir residing on the
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Page 652 of 1418
property); or (iii) encumbered (voluntary or otherwise), mortgaged
or refinanced (except as to a senior mortgage, for improved
payment terms), or (b) borrower/owner fails to occupy the property
as a primary home. Upon the occurrence of a default, the total
loan amount shall become due and owing and shall accrue interest
at the rate of twelve percent (12%) per annum ("Default Interest
Rate") from the due date until paid. The Declaration of Restrictive
Covenants survive any proceedings in foreclosure, bankruptcy
probate or any other proceedings at law or in equity.
If the owner sells or transfers the property during the Affordability
Period, the City shall be given the first right to purchase the
property based upon the same material terms being offered to the
owner (the "Right of First Refusal"). If the City does not exercise
the Right of First Refusal within 60 days, the owner may proceed
to sell the property. Upon the sale or transfer of the property, the
owner will be required to pay the City a share of the profit realized
from the sale or transfer of the property ("Profit Recapture
Provision"), as follows: If the sale or transfer occurs between
the first and fifth year, the City shall be paid a percentage of
the profit, based upon the percentage of the City's
contribution to the purchase of the property, calculated by
dividing the amount of the City's mortgage by the total sales
price for the property; to wit: if the sales price for the
property was $100,000 and the City provided a $50,000
mortgage, the City shall be paid 50% of the profit; If the sale
or transfer occurs between the fifth and tenth year, the City
shall be paid fifty percent (50%) of the profit; and if the sale or
transfer occurs between the eleventh and fifteenth year, the
City shall be paid twenty-five percent (25%) of the profit.
In the event that a foreclosure proceeding is commenced against
the property by a senior mortgage holder, the City will make an
effort to recapture funds through the legal process if it is
determined that adequate funds may be available to justify pursing
a repayment.
The owner will be allowed to refinance a senior mortgage without
having to pay off the City's loan, so long as the new loan amount
does not exceed the then outstanding balance of the senior
mortgage (without additional cash out) and will serve to lower the
mortgage payment and/or interest rate.
In the event that title to the property is transferred by the death of
the owner to a surviving heir, and said heir occupies the property
as a principal residence, within six (6) months from the date of the
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owner's death and meets the SHIP Program eligibility
requirements, as determined by the City Manager, in his
reasonable discretion, the City will approve the transfer.
f. Recipient Selection Criteria: All recipients of assistance must meet the
applicable eligibility ,requirements as stipulated in the Florida Statutes,
SHIP Rule, and this Plan. Applicants will be selected from a waiting list
on a first-qualified, first-served basis.
f. Sponsor Selection Criteria: Developers will respond to an RFP process
which will require confirmation of the developer's experience, financial
capacity, site control, and ability to secure all necessary funds to proceed.
g. Additional Information: Mobile homes and trailers are not eligible for
this strategy. Assisted properties must be located within the City of Miami
Beach corporate limits.
D.
Purchase Assistance Codes 1, 2
a. Summary of Strategy: Down payment, closing cost and rehabilitation
assistance for the purchase of new or existing housing, and the
rehabilitation of those properties, for first-time homebuyers. A first-time
homebuyer is defined as a purchaser that has not owned a home in at
least the last three (3) years.
b. Fiscal Years Covered: 2016-2017, 2017-2018 and 2018-2019
c. Income Categories to be served: Extremely low, very low, low, or
moderate-income.
d. Maximum award:
1. $50,000 (Moderate-Income)
2. $100,000 (Low and Very Low-Income)
3. $150,000 (Extremely Low-Income)
e. Terms:
1. Loan/Deferred Loan/Grant: Funds will be awarded as a
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deferred payment loan, evidenced by a Note, and secured by a
subordinate (unless the City is the sole lender) Mortgage and
Declaration of Restrictive Covenants, delineating the recapture
period and terms.
2. Interest Rate: 0%
3. Loan Term: Fifteen (15) years ("Affordability Period")
4. Forgiveness: The loan will be forgiven at the end of the
term.
5. Default/Recapture: Pursuant to the Declaration of
Restrictive Covenants, the total loan amount shall become due
and owing if any of the following occurs during the Affordability
Period: (a) the property is: (i) rented; (ii) sold or transferred, by
operation of law or otherwise (except as to a Program eligible
heir residing on the property); or (iii) encumbered (voluntary or
otherwise), mortgaged or refinanced (except as to a senior
mortgage, for improved payment terms), or (b) borrower/owner
fails to occupy the property as a primary home. Upon the
occurrence of a default, the total loan amount shall become due
and owing and shall accrue interest at the rate of twelve
percent (12%) per annum ("Default Interest Rate") from the due
date until paid. The Declaration of Restrictive Covenants
survive any proceedings in foreclosure, bankruptcy probate or
any other proceedings at law or in equity.
If the owner sells or transfers the property prior to the expiration
of the Affordability Period, the City shall be given the first right
to purchase the property based upon the same material terms
being offered to the owner (the "Right of First Refusal"). If the
City does not exercise the Right of First Refusal within 60 days,
the owner may proceed to sell the property. Upon the sale or
transfer of the property, the owner will be required to pay the
City a share of the profit realized from the sale or transfer of the
property ("Profit Recapture Provision"), as follows: If the sale
or transfer occurs between the first and fifth year, the City
shall be paid a percentage of the profit, based upon the
percentage of the City's contribution to the purchase of the
property, calculated by dividing the amount of the City's
mortgage by the total sales price for the property; to wit: if
the sales price for the property was $100,000 and the City
provided a $50,000 mortgage, the City shall be paid 50% of
the profit; If the sale or transfer occurs between the fifth
and tenth year, the City shall be paid fifty percent (50%) of
the profit; and if the sale or transfer occurs between the
eleventh and fifteenth year, the City shall be paid twenty-
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five percent (25%) of the profit.
In the event that a foreclosure proceeding is commenced
against the property by a senior mortgage holder, the City will
make an effort to recapture funds through the legal process if it
is determined that adequate funds may be available to justify
pursing a repayment.
The owner will be allowed to refinance a senior mortgage
without having to pay off the City's loan, so long as the new
loan amount does not exceed the then outstanding balance of
the senior mortgage (without additional cash out) and will serve
to lower the mortgage payment and/or interest rate.
In the event that title to the property is transferred by the death
of the owner to a surviving heir, and said heir occupies the
property as a principal residence, within six (6) months from the
date of the owner's death and meets the SHIP Program
eligibility requirements, as determined by the City Manager, in
his reasonable discretion, the City will approve the transfer.
f. Recipient Selection Criteria: All recipients of assistance must meet
the applicable eligibility requirements as stipulated in the Florida
Statutes, SHIP Rule, and this Plan. Applicants will be selected from a
waiting list on a first-qualified, first-served basis.
g. Sponsor Selection Criteria: NA
h. Additional Information: Mobile homes and trailers are not eligible for
this strategy. Assisted properties must be located within the City of
Miami Beach corporate limits.
E.
Rental Development Code 14
a. Summary of Strategy: Funds will be provided to for-profit and non-profit
developers to be used to finance the costs of acquisition and/or the hard
and soft costs of rehabilitating multi-family buildings. Funds will also be
utilized for the acquisition and/or rehabilitation of multi-family buildings
owned and operated by the City.
b. Fiscal Years Covered: 2016-2017, 2017-2018 and 2018-2019
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c. Income Categories to be served: Extremely low, very low, low, or
moderate-income.
d. Maximum award: $40,000/Unit
e. Terms:
1. Loan/deferred loan/grant: Funds will be awarded as a
deferred Loan, evidenced by a Note, and secured by a
subordinate (unless the City is the sole lender) Mortgage and a
Declaration of Restrictive Covenants, delineating the recapture
period and terms.
2. Interest Rate: 0%
3. Loan Term: Thirty (30) years ("Affordability Period")
4. Forgiveness: The loan will be forgiven at the end of the term.
5. Default/Recapture: Pursuant to the Declaration of Restrictive
Covenants, the total loan amount shall become due and owing if
the property is mortgaged, sold or transferred, or the property fails
to be used for affordable housing during the Affordability Period.
For properties owned by developers, where funding was provided
for acquisition, the City may impose a reverter provision at the end
of the term, when the property is not subject to any limitations by
superior lienholders, if it is found to be in the best interest of City to
maintain the affordable housing beyond the Affordability Period
when the developer is converting the project to market rate
development. The reverter clause may not be imposed if the
recipient volunteers to keep a negotiated percentage of the units
affordable to very low, low and moderate-income households.
Upon the occurrence of a default, the total loan amount shall
become due and owing and shall accrue interest at the rate of
twelve percent (12%) per annum ("Default Interest Rate") from the
due date until paid. The Declaration of Restrictive Covenants
survives any proceedings in foreclosure, bankruptcy probate or
any other proceedings at law or in equity.
In the event that a foreclosure proceeding is commenced against
the property by a senior mortgage holder, the City will make an
effort to recapture funds through the legal process if it is
determined that adequate funds may be available to justify pursing
a repayment.
If owner sells or transfers the property during the Affordability
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Page 657 of 1418
Period, the City shall be given the first right to purchase the
property based upon the same material terms being offered to the
owner (the "Right of First Refusal").
The owner will be allowed to refinance a senior mortgage without
having to pay off the City's loan, so long as the new loan amount
does not exceed the then outstanding balance of the senior
mortgage (without additional cash out) and will serve to lower the
mortgage payment and/or interest rate.
f. Recipient Selection Criteria: All tenants of properties assisted with
SHIP funds must meet the eligibility requirements as stipulated in the
applicable Florida Statutes, SHIP Rule, and this Plan.
g. Sponsor/Developer Selection Criteria: Developers will respond to an
RFP process which will require confirmation of the developer's
experience, financial capacity, site control, and ability to secure all
necessary funds to proceed.
h. Additional Information: Assisted properties must be located within the
City of Miami Beach corporate limits.
F.
Acquisition/Rehabilitation Code 14
a. Summary of Strategy: Funds will be provided to for-profit and non-profit
developers to be used to finance the costs of acquisition and/or the hard
and soft costs of rehabilitating multi-family buildings. Funds will also be
utilized for the acquisition and/or rehabilitation of multi-family buildings
owned and operated by the City.
b. Fiscal Years Covered: 2016-2017, 2017-2018 and 2018-2019
c. Olncome Categories to be served: Extremely low, very low, low, or
moderate-income.
d. Maximum award: $40,000/Unit/$400,000 per property
e. Terms:
1. Loan/deferred loan/grant: Funds will be awarded as a deferred
payment loan, evidenced by a Note, and secured by a subordinate
(unless the City is the sole lender) Mortgage and a Declaration of
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Page 658 of 1418
Restrictive Covenants, delineating the recapture period and terms.
2. Interest Rate: 0%
3. Loan Term: Thirty (30) years ("Affordability Period")
4. Forgiveness: The loan will be forgiven at the end of the term.
5. Default/Recapture: Pursuant to the Declaration of Restrictive Covenants,
the total loan amount shall become due and owing if the property is mortgaged,
sold or transferred, or the property fails to be used for affordable housing during
the thirty (30) year term. Upon the occurrence of a default, the total loan amount
shall become due and owing and shall accrue interest at the rate of twelve
percent (12%) per annum ("Default Interest Rate") from the due date until paid.
For properties owned by developers, where funding was provided for
acquisition, the City may impose a reverter provision at the end of the term,
when the property is not subject to any limitations by superior lienholders, if it is
found to be in the best interest of City to maintain the affordable housing beyond
the Affordability Period when the developer is converting the project to market
rate development. The reverter clause may not be imposed if the recipient
volunteers to keep a negotiated percentage of the units affordable to very low,
low and moderate-income households. The Declaration of Restrictive Covenants
survives any proceedings in foreclosure, bankruptcy probate or any other
proceedings at law or in equity.
In the event that a foreclosure proceeding is commenced against the property by
a senior mortgage holder, the City will make an effort to recapture funds through
the legal process if it is determined that adequate funds may be available to
justify pursing a repayment.
If owner sells or transfers the property during the Affordability Period, the City
shall be given the first right to purchase the property based upon the same
material terms being offered to the owner (the"Right of First Refusal").
The owner will be allowed to refinance a senior mortgage without having to pay
off the City's loan, so long as the new loan amount does not exceed the then
outstanding balance of the senior mortgage (without additional cash out) and
will serve to lower the mortgage payment and/or interest rate.
f. Recipient Selection Criteria: All tenants of properties assisted with
SHIP funds must meet the eligibility requirements as stipulated in the
applicable Florida Statutes, SHIP Rule, and this Plan.
i. Sponsor/Developer Selection Criteria: Developers will respond to an
RFP process which will require confirmation of the developer's
experience, financial capacity, site control, and ability to secure all
necessary funds to proceed.
j. Additional Information: Assisted properties must be located within the
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Page 659 of 1418
City of Miami Beach corporate limits.
III. LHAP Incentive Strategies
A. Name of the Strategy: Expedited Permitting
Permits, as defined in s. 163.3177 (6) (f) (3) for affordable housing projects,
are expedited to a greater degree than other projects.
This incentive gives priority to designated affordable housing projects when
scheduling pre-design conferences with relevant City agencies including, but
not limited to: Fire Department, Planning Department and Zoning
Department, Building Department, Historic Preservation Board, and the
Office of Housing and Community Services (HCS). Also, when the plans are
ready for permitting, first priority is given. The City will develop a form to
identify the projects reviewed by the HCS.
The incentive was enacted by administrative action in February 1997.
B. Name of the Strategy: Ongoing Review Process
This incentive provides for an ongoing process for review of local policies,
ordinances, regulations and plan provisions that increase the cost of housing
prior to their adoption.
Prior to the adoption of any proposed policy, procedure, ordinance,
development plan, regulation, or Comprehensive Plan amendment that might
impact housing, the City evaluates its potential effect and cost on affordable
housing through the Director of the Office of Housing and Community
Services (HCS). The HCS may present proposed legislation to applicable
City boards and committees for their review as they may impact housing.
C. Other Incentive Strategies Adopted: Affordable Housing Unit Size and
Parking Requirements, Ordinance No. 2017-4148
The reduction of parking requirements for new construction or rehabilitated
housing units for low- and/ or moderate-income housing for elderly and non-elderly
persons.
IV. EXHIBITS:
A. Administrative Budget for each fiscal year covered in the Plan.
B. Timeline for Estimated Encumbrance and Expenditure.
C. Housing Delivery Goals Chart (HDGC) For Each Fiscal Year Covered in the
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plan.
D. Signed LHAP Certification.
E. Signed, dated, witnessed or attested adopting resolution.
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SHIP LHAP Template 2016-001
[eff. Date 9/11/2018]
Floridousing
City of Miami Beach
SHIP LOCAL HOUSING ASSISTANCE PLAN (LHAP)
2019-2020, 2020-2021, 2021-2022
M AM BEACH
- 1 -
Page
A
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SHIP LHAP Template 2016-001
[eff. Date 9/11/2018]
Florida Housing
fr+..r. Cerpo.oie.
Table of Contents
Description Page#
Section I, Program Details 3
Section II, Housing Strategies 8
A. Owner Occupied Rehabilitation 8
B. Disaster Repair 10
C. New Construction 12
D. Purchase Assistance with Rehab 13
E. Demolition/ Reconstruction 15
F. Emergency Repair 17
G. Foreclosure Prevention 18
H. Acquisition/Rehabilitation 20
I. Land Acquisition 21
J. Rental Development 22
Section III, Incentive Strategies 24
A. Expedited Permitting 24
B. Ongoing Review Process 24
C. Affordable Housing Unit Size and Parking Requirements 24
Exhibits 24
A. Administrative Budget for each fiscal year covered in the Plan 25
B. Timeline for Estimated Encumbrance and Expenditure 26
27
C. Housing Delivery Goals Chart (HDGC) For Each Fiscal Year
Covered in the plan
30
D. Signed LHAP Certification
E. Signed, dated, witnessed or attested adopting resolution 32
F. Ordinance: (If changed from the original creating ordinance) 34
G. Mortgage Agreement/ Promissory Note/ Restrictive Covenant 55
H. Procurement Policy 75
I. Affordable Housing Statute 81
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SHIP LHAP Template 2016-001
[eff. Date 9/11/2018]
Florida °using
I. Program Details:
A. LG(s)
Name of Local Government City of Miami Beach
Does this LHAP contain an interlocal No
agreement?
If yes, name of other local government(s)
B. Purpose of the program:
• To meet the housing needs of the very low-, low- and moderate-income households;
• To expand production of and preserve affordable housing; and
• To further the housing element of the local government comprehensive plan specific to affordable
housing.
C. Fiscal years covered by the Plan: 2019-2020, 2020-2021, 2021-2022
D. Governance: The SHIP Program (the "Program") is established in accordance with §420.907-9079,
Florida Statutes and Chapter 67-37 of the Florida Administrative Code. Cities and Counties must be
in compliance with these applicable statutes, rules and any additional requirements as established
through the Legislative process.
E. Local Housing Partnership: The SHIP Program encourages building active partnerships between
government, lending institutions, builders and developers, not-for-profit and community-based
housing providers and service organizations, providers of professional services related to affordable
housing, advocates for low-income persons, real estate professionals, persons or entities that can
provide housing or support services and lead agencies of the local continuums of care.
In its efforts to expand affordable housing opportunities, the City of Miami Beach works to establish
and build a relationship with a designated community-based housing provider.
F. Leveraging: The Plan is intended to increase the availability of affordable residential units by
combining local resources and cost saving measures into a local housing partnership and using
public and private funds to reduce the cost of housing. SHIP funds may be leveraged with or used to
supplement other Florida Housing Finance Corporation programs and to provide local match to
obtain federal housing grants or programs. The City of Miami Beach is an Entitlement Community
that receives Home Investment Partnership Program (HOME) and Community Development Block
Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD), which
are used in combination with other local funds, to leverage State Housing Initiatives Partnership
(SHIP)funds to increase affordable housing opportunities and reduce the cost of housing in the City.
G. Public Input: Public input was solicited through the City's website in the advertising of the Local
Housing Assistance Plan and the Notice of Funding Availability.
H. Advertising and Outreach: SHIP funding availability shall be advertised in a newspaper of general
circulation and periodicals serving ethnic and diverse neighborhoods, at least 30 days before the
beginning of the application period. If no funding is available due to a waiting list, no notice of funding
availability is required.
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SHIP LHAP Template 2016-001
Leff. Date 9/11/2018]
41ovJ.a.Hodabli
Floridousing
Additionally, the City's outreach efforts will include public workshops, special meetings with various
human services agencies, the City's website, and social media, among others.
I. Waiting List/Priorities: A waiting list will be established when there are eligible applicants for
strategies that no longer have funding available. Those households on the waiting list will be notified
of their status. Applicants will be maintained in an order that is consistent with the time applications
were submitted as well as any established funding priorities as described in this plan.
The following priorities for funding described/listed here apply to all strategies unless otherwise stated:
Special Needs
Essential Services Personnel
J. Discrimination: In accordance with the provisions of §760.20-760.37, it is unlawful to discriminate
on the basis of race, color, religion, sex, national origin, age, handicap, or marital status in the award
application process for eligible housing.
Additionally, the City of Miami Beach Human Rights Ordinance, as codified in Chapter 62 of the City
Code, prohibits discrimination in employment, housing, public accommodations, or public services,
on the basis of actual or perceived race, color, national origin, religion, sex, intersexuality, sexual
orientation, gender identity, familial and marital status, age, ancestry, height, weight, domestic
partner status, labor organization membership, familial situation, political affiliation, or disability.
K. Support Services and Counseling: Support services are available from various community
sources. Available support services may include but are not limited to: Homeownership Counseling
(Pre and Post), Credit Counseling, Tenant Counseling, Foreclosure Counseling and Transportation.
This information will be provided to program applicants.
L. Purchase Price Limits: The sales price or value of new or existing eligible housing may not exceed
90% of the average area purchase price in the statistical area in which the eligible housing is located.
Such average area purchase price may be that calculated for any 12-month period beginning not
earlier than the fourth calendar year prior to the year in which the award occurs. The sales price of
new and existing units can be lower but may not exceed 90% of the median area purchase price
established by the U.S. Treasury Department or as described above.
The methodology used is:
U.S. Treasury Department x
Local HFA Numbers
M. Income Limits, Rent Limits and Affordability: The Income and Rent Limits used in the SHIP
Program are updated annually by the Department of Housing and Urban Development and posted at
www.floridahousinq.orq.
"Affordable"means that monthly rents or mortgage payments including taxes and insurance do not
exceed 30 percent of that amount which represents the percentage of the median annual gross
income for households as indicated in § 420.9071. However, it is not the intent to limit an individual
household's ability to devote more than 30% of its income for housing.
Housing for which a household devotes more than 30% of its income shall be deemed Affordable if
the first institutional mortgage lender is satisfied that the household can afford mortgage payments
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SHIP LHAP Template 2016-001
[eff. Date 9/11/2018]
Florida ousing
in excess of the 30% benchmark and in the case of rental housing does not exceed those rental
limits adjusted for bedroom size.
N. Welfare Transition Program: If an eligible sponsor is used, a qualification system and selection
criteria for applications for Awards to eligible sponsors shall be developed. This shall include a
description that demonstrates how eligible sponsors that employ personnel from the Welfare
Transition Program will be given preference in the selection process.
O. Monitoring and First Right of Refusal: In the case of rental housing, the staff and any entity that
has administrative authority for implementing the local housing assistance plan assisting rental
developments shall annually monitor and determine tenant eligibility or, to the extent another
governmental entity provides periodic monitoring and determination, a municipality, county or local
housing financing authority may rely on such monitoring and determination of tenant Program
eligibility. However, any loan or grant in the original amount of$10,000 or less shall not be subject to
these annual monitoring and determination of tenant eligibility requirements. Tenant eligibility will be
monitored annually for no less than 30 years or the term of assistance whichever is longer unless as
specified above.
Eligible sponsors that offer rental housing for sale before 30 years or that have remaining mortgages
funded under the Program must give a first right of refusal to eligible nonprofit organizations for
purchase at the current market value for continued occupancy by eligible persons. If a foreclosure
action is instituted against the Premises, or the Owner wishes to sell the Premises during the
Affordability Period, the Owner shall give to the City, or its assignee, the first right to purchase the
Premises (the "Right of First Refusal") at the current market value for continued occupancy by
Program eligible persons.
P. Administrative Budget: A line-item budget is attached as Exhibit A. The city/county finds that the
monies deposited in the local housing assistance trust fund are necessary to administer and
implement the local housing assistance plan.
§420.9075, Florida Statutes and Chapter 67-37, Florida Administrative Code, state: "A county or
an eligible municipality may not exceed the 5 percent limitation on administrative costs, unless its
governing body finds, by resolution, that 5 percent of the local housing distribution plus 5 percent of
program income is insufficient to adequately pay the necessary costs of administering the local
housing assistance plan."
§420.9075, Florida Statutes and Chapter 67-37, Florida Administrative Code, further states:
"The cost of administering the program may not exceed 10 percent of the local housing distribution
plus 5 percent of program income deposited into the trust fund, except that small counties, as
defined in s. 120.52(19), and eligible municipalities receiving a local housing distribution of up to
$350,000 may use up to 10 percent of program income for administrative costs."The applicable local
jurisdiction has adopted the above findings in the resolution attached as Exhibit E.
Q. Program Administration: Administration of the local housing assistance plan will be performed by:
Entity Duties Percentage
Local Government Income certification of applicants, annual reporting, fiscal 100%
management, marketing and outreach.
Third Party N/A
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SHIP LHAP Template 2016-001
[eff. Date 9/11/2018]
Florida ousing
Entity/Sub-recipient
R. Project Delivery Costs: In addition to the administrative costs listed above, the City will charge
reasonable project delivery costs to cover project, estimates/construction estimates and project
inspections, which will be performed by independent contractors for construction projects. The fee
will not exceed $5,000 and will be included in the loan amount, evidenced by a promissory note
("Note"), and secured by a recorded Mortgage and Security Agreement ("Mortgage") and Declaration
of Restrictive Covenants.
S. Essential Service Personnel Definition:
"Essential Service Personnel" are defined as income-eligible employees of Miami Beach businesses
and organizations in the following industries:
1. Educators and those employed in the education institutions; and
2. Artists and those employed in artist organizations; and
3. Accommodations and Food Services (including arts, entertainment, and recreation); and
4. Retail Trade; and
5. Public Administration (including City of Miami Beach employees); and
6. Healthcare.
T. Describe efforts to incorporate Green Building and Energy Saving products and processes:
The City is committed to making the housing stock more energy efficient. Therefore, the City will
require the use of the following features when economically feasible in the construction/rehabilitation
of homes:
1. Low or No-VOC paint for all interior walls (low-VOC means 50 grams per liter or less for
flat; 150 grams per liter or less for non-flat paint);
2. Low-flow water fixtures in bathrooms- WaterSense labeled products or the following
specifications:
Toilets: 1.28 gallons/flush or less,
Urinals: 0.5 gallons/flush,
Lavatory Faucets: 1.5 gallons/minute or less at 60 psi flow rate,
Showerheads: 2.0 gallons/minute or less at 80 psi flow rate;
3. Energy Star certified refrigerator;
4. Energy Star certified dishwasher;
5. Energy Star certified ventilation fan in all bathrooms;
6. Water heater minimum efficiency specifications:
• Residential Electric:
• Up to 55 gallons= .95 EF or .92 UEF; or
• More than 55 gallons= Energy Star certified; or
• Tankless= Energy Star certified;
7. Energy Star certified ceiling fans with lighting fixtures in bedrooms;
8. Air conditioning (choose in-unit or commercial):
>_8.5 HSPF/>15 SEER/>_12.5 EER for split systems
Central Air Conditioners- Energy Star certified:
>_15 SEER/>_12.5 EER for split systems
9. Efficient lighting on both the interior and exterior of homes; and
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SHIP LHAP Template 2016-001
[eff. Date 9/11/2018]
Floridousing
.—n • C rp.---
10. Caulk, weather-strip, or otherwise seal all holes, gaps, cracks, penetrations and electrical
receptacles in building envelope; and
11. Insulate heating and cooling system ducts and seal airtight in accordance with §403.29 of
the Florida Building Code-Energy Conservation.
U. Describe efforts to meet the 20% Special Needs set-aside:
The City will add Special Needs qualification questions to its program eligibility application and utilize
the City's various communications resources (including its website, Facebook, Twitter, and e-
newsletter) to advise the community of this resources.
In addition, the Office of Housing and Community Services (City department responsible for SHIP
Program administration) operates the Success University Program and the Parent Child Home
Program. These programs are comprehensive family support programs that assist low-income
families with various needs, including housing and food. The programs partner with more than 30
community-based human services and support agencies and offer an increased opportunity for
identification and referral of eligible households.
The City also serves as a Department of Children and Families ACCESS Center and will provide
referral information to households receiving SSI/SSDI and other benefits.
V. Describe efforts to reduce homelessness:
The Office of Housing and Community Services is the City department responsible for the Homeless
Outreach Program. As such, it has direct contact with individuals who are homeless and living in the
streets, as well as individuals/families that are facing the threat of homelessness. The City provides
the following services: shelter beds, relocation services, identification document replacement
services, and rent assistance to serve its homeless population. The current efforts balance
accountability, compassion and efficacy while expecting the same from those the City serves.
Our community is one of the leaders in the County in its municipal efforts to address homelessness
and curb its impacts. As one of only two municipal teams in the County, our City is the only
municipality that staffs a Homeless Outreach Team (HOT) and operates a walk-in center. The City is
leading local efforts to move away from the traditional case management model that centralizes
services through a third party (not the client) to a care coordination model that empowers clients to
take charge of their lives and creates the culture and skill-set to discourage the return to
homelessness.
Rather than following, our community has chosen to take the lead in ending homelessness. The City
has created a comprehensive homeless strategy that emphasizes personal accountability,
intradepartmental collaboration and innovation that responds to our community's unique needs and
assets while firmly founded upon compassion, integrity and efficacy. We have:
• Increased the number of shelter beds bought by the City and engaged more shelters to ensure
that we can offer the appropriate, culturally-competent support to any homeless person seeking
to end their homelessness.
• Expanded our outreach team from seven (7) staff members to 10 and rolled back our starting
time to 7:30am to shorten the service time for those wishing to leave the streets behind.
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SHIP LHAP Template 2016-001
[eff. Date 9/11/2018]
Florida Housing
• Created the Client Management Information System (CIMS) to document and track our
engagement and service efforts with the homeless so that we build on our efforts without
duplicating services while simultaneously ensuring integrity and accountability in the use of City
resources and expecting integrity and accountability in return from those who benefit from our
services.
• Engaged members of the faith community to join our outreach team because sometimes what led
to a person's homelessness cannot be fixed solely with the provision of a bed and food.
• Trained our emergency shelter partners on care coordination services so that clients take
ownership of their personal success while having the supports and knowledge at their disposal to
leave homelessness with an expectation —and the skills —not to return to the streets.
• The City is the only outreach team in the County that employs the homeless it places in shelter to
serve as ambassadors to engage the homeless that remain on the streets. Through this program
piloted in FY 16/17, the homeless are able to strengthen their engagement skills and transition
back into an employment culture while looking for full-time employment and earning much-
needed money to buy interview clothes and personal items. In turn, the City obtains the insight
and knowledge base familiar with living in the streets and identifies the places and mindsets of
those who remain for us to engage. This win/win model has also succeeded in shortening the
length of time between placement in shelter and the securing of permanent employment.
• Encouraged intradepartmental collaboration between Police and HOT so that the first approach to
those who are breaking our laws because they see themselves as homeless is to offer them
shelter and the opportunity to end their homelessness -- rather than encourage a passive
acceptance of their circumstances as an intractable fate.
It is worth noting that, since implementing our current strategies, we have eliminated the running
shelter waitlist the Administration inherited. Our processes emphasize personal responsibility and
provide the tools for independence while moving away from a traditional welfare-dependent model
that fails to address the factors that led to homelessness. Working in conjunction with other agencies
providing certain support services, there is an opportunity to identify households which may be
assisted through participation in the SHIP Program; especially those households being provided with
employment and credit repair assistance.
Section II. LHAP Strategies:
A. Owner-Occupied Rehabilitation Code 3
a. Summary: Rehabilitation/Repair of single-family (including condominiums),
owner-occupied housing. "Rehabilitation" will be defined as repairs or
improvements that are needed for safe or sanitary habitation, correction of
substantial code violations, structural or systems faults, or the creation of
additional living space. Cosmetic items may be included on projects if funds are
available after completing all required repairs.
b. Fiscal Years Covered: 2019-2020, 2020-2021, and 2021-2022
c. Income Categories to be served: Extremely low-, Very low-, low- and moderate-income
households
d. Maximum Award: $ 70,000
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e. Terms
1. Loan/Deferred Loan/Grant: Funds will be awarded as a deferred payment loan, evidenced
by a Note, and secured by a subordinate (unless the City is the sole lender) Mortgage and a
Declaration of Restrictive Covenants, delineating the recapture period and terms.
2. Interest Rate: 0%
3. Loan Term: Fifteen (15)years ("Affordability Period")
4. Forgiveness: The loan will be forgiven at the end of the term.
5. Default/Recapture: Pursuant to the Declaration of Restrictive Covenants, the total loan
amount shall become due and owing if any of the following occurs during the Affordability
Period: (a) the property is: (i) rented; (ii) sold or transferred, by operation of law or otherwise
(except as to an approved Program eligible heir); or (iii) encumbered (voluntary or otherwise),
mortgaged or refinanced (except as to a senior mortgage, for improved payment terms)
without the written consent of the City Manager, or (b) borrower/owner fails to occupy the
property as a primary home. Once due, the total loan amount shall accrue interest at the rate
of twelve percent (12%) per annum ("Default Interest Rate")from the due date until paid. The
In the event that a foreclosure proceeding is commenced against the property by a senior
mortgage holder, the City will make an effort to recapture funds through the legal process if it
is determined that adequate funds may be available to justify pursing a repayment.
If the owner sells or transfers the property during the Affordability Period, the City shall be
given the first right to purchase the property based upon the same material terms being
offered to the owner(the "Right of First Refusal").
The owner will be allowed to refinance a senior mortgage without having to pay off the City's
loan, so long as the new loan amount does not exceed the then outstanding balance of the
senior mortgage (without additional cash out) and will serve to lower the mortgage payment
and/or interest rate.
In the event that title to the property is transferred by the death of the owner to a surviving
heir, and said heir occupies the property as a principal residence, within six (6) months from
the date of the owner's death and meets the SHIP Program eligibility requirements, as
determined by the City Manager, in his reasonable discretion, the City will approve the
transfer.
f. Recipient Selection Criteria: All recipients of assistance must meet the applicable eligibility
requirements as stipulated in the Florida Statutes, SHIP Rule, and this Plan. Applicants will be
selected from a waiting list on a first-qualified, first-served basis. Special Needs households will
be given priority funding until the City fulfills the minimum SHIP Program requirements for
assistance to this target population.
g. Sponsor Selection Criteria: NA
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h. Additional Information: Mobile homes and trailers are not eligible for this strategy. Assisted
properties must be located within the City of Miami Beach corporate limits.
B. Disaster Repair Code 5
a. Summary: Emergency Assistance to eligible households after the occurrence
of a disaster declared by Executive Order (President of the United States or
Governor of the State of Florida). In the event of a disaster, the City will commit
available unencumbered SHIP funds, as well as other disaster funds that may
become available through the Florida Housing Finance Corporation or any
other emergency funding sources. Disaster funds may be used for, but not
limited to, the following:
1) Purchase of emergency supplies; weatherproofing a damaged home;
2) Interim repairs to prevent further damage; tree and debris removal to
make the housing unit habitable;
3) Payment of insurance deductibles for rehabilitation of homes covered
under homeowners' insurance policies; and
4) Other activities as proposed by the Federal Government, counties and
eligible municipalities and approved by Florida Housing Finance Corporation.
b. Fiscal Years Covered: 2019-2020, 2020-2021, and 2021-2022
c. Income Categories to be served: Extremely low-, Very low-, low- and moderate-income
households
d. Maximum award: $40,000
e. Terms:
1. Loan/Deferred Loan/Grant: Funds will be awarded as a deferred payment loan, evidenced
by a Note, and secured by a subordinate (unless the City is the sole lender) Mortgage and a
Declaration of Restrictive Covenants, delineating the recapture period and terms.
2. Interest Rate: 0%
3. Loan Term: Fifteen (15) years ("Affordability Period")
4. Forgiveness: The loan will be forgiven at the end of the term.
5. Default/Recapture: Pursuant to the Declaration of Restrictive Covenants, the total loan
amount shall become due and owing if any of the following occurs during the Affordability
Period: (a) the property is: (i) rented; (ii) sold or transferred, by operation of law or otherwise
(except as to an approved Program eligible heir); or (iii) encumbered (voluntary or otherwise),
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mortgaged or refinanced (except as to a senior mortgage, for improved payment terms)
without the written consent of the City Manager, or (b) borrower/owner fails to occupy the
property as a primary home. Once due, the total loan amount shall accrue interest at the rate
of twelve percent (12%) per annum ("Default Interest Rate") from the due date until paid. The
In the event that a foreclosure proceeding is commenced against the property by a senior
mortgage holder, the City will make an effort to recapture funds through the legal process if it
is determined that adequate funds may be available to justify pursing a repayment.
If the owner sells or transfers the property during the Affordability Period, the City shall be
given the first right to purchase the property based upon the samematerial terms being
offered to the owner(the"Right of First Refusal").
The owner will be allowed to refinance a senior mortgage without having to pay off the City's
loan, so long as the new loan amount does not exceed the then outstanding balance of the
senior mortgage (without additional cash out) and will serve to lower the mortgage payment
and/or interest rate.
In the event that title to the property is transferred by the death of the owner to a surviving
heir, and said heir occupies the property as a principal residence, within six (6) months from
the date of the owner's death and meets the SHIP Program eligibility requirements, as
determined by the City Manager, in his reasonable discretion, the City will approve the
transfer.
f. Recipient Selection Criteria: All recipients of assistance must meet the applicable eligibility
requirements as stipulated in the Florida Statutes, SHIP Rule, and this Plan. Applicants will be
selected from a waiting list on a first-qualified, first-served basis. Special Needs households will
be given priority funding until the City fulfills the minimum SHIP Program requirements for
assistance to this target population.
g. Sponsor Selection Criteria: N/A
h. Additional Information: Mobile homes and trailers are not eligible for this strategy. Assisted
properties must be located within the City of Miami Beach corporate limits.
C. New Construction Code 10
a. Summary: To develop homeownership opportunities to assist eligible buyers to
purchase affordable housing in Miami Beach. Funds will be provided to
developers to be used to finance the costs associated with site
acquisition/development, and hard and soft construction costs. The developer
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will deliver at least one housing unit for each maximum award that is allocated
for the property construction. The property must be sold to an income-eligible
homebuyer. Upon sale, the SHIP Program funding obligations will be passed on
to the homebuyer.
b. Fiscal Years Covered: 2019-2020, 2020-2021, and 2021-2022
c. Income Categories to be served: Extremely low-, Very low-, low- and moderate
d. Maximum award: $40,000
e. Terms:
1. Loan/Deferred Loan/Grant: Funds will be awarded as a deferred loan, evidenced by a Note,
and secured by a subordinate (unless the City is the sole lender) Mortgage and Declaration of
Restrictive Covenants, delineating the recapture period and terms.
2. Interest Rate: 0%
3. Loan Term: Fifteen (15) years ("Affordability Period")
4. Forgiveness: The loan will be forgiven at the end of the term.
5. Default/Recapture: Pursuant to the Declaration of Restrictive Covenants, the total loan
amount shall become due and owing if any of the following occurs during the Affordability Period:
(a)the property is: (i) rented; (ii) sold or transferred, by operation of law or otherwise (except as to
a Program eligible heir residing on the property); or (iii) encumbered (voluntary or otherwise),
mortgaged or refinanced (except as to a senior mortgage, for improved payment terms), or (b)
borrower/owner fails to occupy the property as a primary home. Upon the occurrence of a
default, the total loan amount shall become due and owing and shall accrue interest at the rate of
twelve percent (12%) per annum ("Default Interest Rate") from the due date until paid. The
the Profit Recapture Provision, which survives to thc extent of a surplus. In thc event the City is
the only lender funding the purchase of the property, the restrictive covenants shall continue to
If the owner sells or transfers the property during the Affordability Period, the City shall be given
the first right to purchase the property based upon the same material terms being offered to the
owner (the "Right of First Refusal"). If the City does not exercise the Right of First Refusal within
60 days, the owner may proceed to sell the property. Upon the sale or transfer of the property,
the owner will be required to pay the City a share of the profit realized from the sale or transfer of
the property ("Profit Recapture Provision"), as follows: If the sale or transfer occurs between
the first and fifth year, the City shall be paid a percentage of the profit, based upon the
percentage of the City's contribution to the purchase of the property, calculated by
dividing the amount of the City's mortgage by the total sales price for the property; to wit:
if the sales price for the property was $100,000 and the City provided a $50,000 mortgage,
the City shall be paid 50% of the profit; If the sale or transfer occurs between the fifth and
tenth year, the City shall be paid fifty percent (50%) of the profit; and if the sale or transfer
occurs between the eleventh and fifteenth year, the City shall be paid twenty-five percent
(25%) of the profit.
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In the event that a foreclosure proceeding is commenced against the property by a senior
mortgage holder, the City will make an effort to recapture funds through the legal process if it
is determined that adequate funds may be available to justify pursing a repayment.
The owner will be allowed to refinance a senior mortgage without having to pay off the City's
loan, so long as the new loan amount does not exceed the then outstanding balance of the
senior mortgage (without additional cash out) and will serve to lower the mortgage payment
and/or interest rate.
In the event that title to the property is transferred by the death of the owner to a surviving
heir, and said heir occupies the property as a principal residence, within six (6) months from
the date of the owner's death and meets the SHIP Program eligibility requirements, as
determined by the City Manager, in his reasonable discretion, the City will approve the
transfer.
f. Recipient Selection Criteria: All recipients of assistance must meet the applicable eligibility
requirements as stipulated in the Florida Statutes, SHIP Rule, and this Plan. Applicants will be
selected from a waiting list on a first-qualified, first-served basis. Special Needs households will
be given priority funding until the City fulfills the minimum SHIP Program requirements for
assistance to this target population.
g. Sponsor Selection Criteria: N/A
h. Additional Information: Mobile homes and trailers are not eligible for this strategy. Assisted
properties must be located within the City of Miami Beach corporate limits.
D. Purchase Assistance with Rehab Code 1
a. Summary: Down payment, closing cost and rehabilitation assistance for the purchase of
new or existing housing, and the rehabilitation of those properties, for first-time homebuyers. A
first-time homebuyer is defined as a purchaser that has not owned a home in at least the last three
(3)years.
b. Fiscal Years Covered: 2019-2020, 2020-2021, and 2021-2022
c. Income Categories to be served: Extremely low-, Very low-, low- and moderate
d. Maximum award:
1. $50,000 (Moderate-Income)
2. $100,000 (Low and Very Low-Income)
3. $150,000 (Extremely Low-Income)
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e. Terms
1. Loan/Deferred Loan/Grant: Funds will be awarded as a deferred loan, evidenced by a Note,
and secured by a subordinate (unless the City is the sole lender) Mortgage and Declaration of
Restrictive Covenants, delineating the recapture period and terms.
2. Interest Rate: 0%
3. Loan Term: Fifteen (15) years ("Affordability Period")
4. Forgiveness: The loan will be forgiven at the end of the term.
5. Default/Recapture: Pursuant to the Declaration of Restrictive Covenants, the total loan
amount shall become due and owing if any of the following occurs during the Affordability
Period: (a) the property is: (i) rented; (ii) sold or transferred, by operation of law or otherwise
(except as to a Program eligible heir residing on the property); or (iii) encumbered (voluntary
or otherwise), mortgaged or refinanced (except as to a senior mortgage, for improved
payment terms), or (b) borrower/owner fails to occupy the property as a primary home. Upon
the occurrence of a default, the total loan amount shall become due and owing and shall
accrue interest at the rate of twelve percent (12%) per annum ("Default Interest Rate") from
the due date until paid. -- - - _ _ • _ - •- '. -e . _ - •- _ - _ . e--- •--
restrictive covenants shall continue to apply to subsequent purchasers/transferees of the
If the owner sells or transfers the property during the Affordability Period, the City shall be
given the first right to purchase the property based upon the same material terms being
offered to the owner (the "Right of First Refusal"). If the City does not exercise the Right of
First Refusal within 60 days, the owner may proceed to sell the property. Upon the sale or
transfer of the property, the owner will be required to pay the City a share of the profit realized
from the sale or transfer of the property ("Profit Recapture Provision"), as follows: If the sale
or transfer occurs between the first and fifth year, the City shall be paid a percentage
of the profit, based upon the percentage of the City's contribution to the purchase of
the property, calculated by dividing the amount of the City's mortgage by the total
sales price for the property; to wit: if the sales price for the property was $100,000 and
the City provided a $50,000 mortgage, the City shall be paid 50% of the profit; If the
sale or transfer occurs between the fifth and tenth year, the City shall be paid fifty
percent (50%) of the profit; and if the sale or transfer occurs between the eleventh and
fifteenth year, the City shall be paid twenty-five percent (25%) of the profit.
In the event that a foreclosure proceeding is commenced against the property by a senior
mortgage holder, the City will make an effort to recapture funds through the legal process if it
is determined that adequate funds may be available to justify pursing a repayment.
The owner will be allowed to refinance a senior mortgage without having to pay off the City's
loan, so long as the new loan amount does not exceed the then outstanding balance of the
senior mortgage (without additional cash out) and will serve to lower the mortgage payment
and/or interest rate.
In the event that title to the property is transferred by the death of the owner to a surviving
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heir, and said heir occupies the property as a principal residence, within six (6) months from
the date of the owner's death and meets the SHIP Program eligibility requirements, as
determined by the City Manager, in his reasonable discretion, the City will approve the
transfer.
f. Recipient Selection Criteria: All recipients of assistance must meet the applicable eligibility
requirements as stipulated in the Florida Statutes, SHIP Rule, and this Plan. Applicants will be
selected from a waiting list on a first-qualified, first-served basis. Special Needs households will
be given priority funding until the City fulfills the minimum SHIP Program requirements for
assistance to this target population.
g. Sponsor Selection Criteria: N/A
h. Additional Information: Mobile homes and trailers are not eligible for this strategy. Assisted
properties must be located within the City of Miami Beach corporate limits.
E. Demolition/ Reconstruction Code 4
a. Summary: Funds will be awarded to assist households when the cost of repairing the
home exceeds fifty (50) percent of the current property appraised value.
b. Fiscal Years Covered: 2019-2020, 2020-2021, and 2021-2022
c. Income Categories to be served: Extremely low, Very low-, low- and moderate-income
households
d. Maximum Award: $70,000
e. Terms:
1. Loan/Deferred Loan/Grant: Funds will be awarded as a deferred Loan, evidenced by a
Note, and secured by a subordinate (unless the City is the sole lender) Mortgage and a
Declaration of Restrictive Covenants, delineating the recapture period and terms.
2. Interest Rate: 0%
3. Loan Term: Fifteen (15)years ("Affordability Period")
4. Forgiveness: The loan will be forgiven at the end of the term.
5. Default/Recapture: Pursuant to the Declaration of Restrictive Covenants, the total loan
amount shall become due and owing if any of the following occurs during the Affordability
Period: (a) the property is: (i) rented; (ii) sold or transferred, by operation of law or otherwise
(except as to a Program eligible heir residing on the property); or (iii) encumbered (voluntary
or otherwise), mortgaged or refinanced (except as to a senior mortgage, for improved
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payment terms), or (b) borrower/owner fails to occupy the property as a primary home. Upon
the occurrence of a default, the total loan amount shall become due and owing and shall
accrue interest at the rate of twelve percent (12%) per annum ("Default Interest Rate") from
the due date until paid. •- _ _ _ _• _ - _ . - -- . _ • - •• •_ - - . _ - '—
upon
_
upon the sale of the property pursuant to a mortgage foreclosure proceeding filed by a senior
mortgage holder.
If the owner sells or transfers the property during the Affordability Period, the City will be given
the first right to purchase the property based upon the same material terms being offered to
the owner (the "Right of First Refusal").
In the event that a foreclosure proceeding is commenced against the property by a senior
mortgage holder, the City will make an effort to recapture funds through the legal process if it
is determined that adequate funds may be available to justify pursing a repayment.
The owner will be allowed to refinance a senior mortgage without having to pay off the City's
loan, so long as the new loan amount does not exceed the then outstanding balance of the
senior mortgage (without additional cash out) and will serve to lower the mortgage payment
and/or interest rate.
In the event that title to the property is transferred by the death of the owner to a surviving
heir, and said heir occupies the property as a principal residence, within six (6) months from
the date of the owner's death and meets the SHIP Program eligibility requirements, as
determined by the City Manager, in his reasonable discretion, the City will approve the
transfer.
f. Recipient Selection Criteria: All recipients of assistance must meet the applicable eligibility
requirements as stipulated in the Florida Statutes, SHIP Rule, and this Plan. Applicants will be
selected from a waiting list on a first-qualified, first-served basis. Special Needs households will
be given priority funding until the City fulfills the minimum SHIP Program requirements for
assistance to this target population.
g. Sponsor/Sub-recipient Selection Criteria: N/A
h. Additional Information: Mobile homes and trailers are not eligible for this strategy. Assisted
properties must be located within the City of Miami Beach corporate limits.
F. Emergency Repair Code 6
a. Summary: Funds will be awarded to applicants in need of rehabilitation to their home,
related to a repair that needs to be mitigated immediately.
b. Fiscal Years Covered: 2019-2020, 2020-2021, and 2021-2022
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c. Income Categories to be served: Extremely low-, Very low-, low- and moderate-income
households
d. Maximum Award: $ 70,000
e. Terms:
1. Loan/Deferred Loan/Grant: Funds will be awarded as a deferred payment loan, evidenced
by a Note, and secured by a subordinate (unless the City is the sole lender) Mortgage and a
Declaration of Restrictive Covenants, delineating the recapture period and terms.
2. Interest Rate: 0%
3. Loan Term: Fifteen (15)years ("Affordability Period")
4. Forgiveness: The loan will be forgiven at the end of the term.
5. Default/Recapture: Pursuant to the Declaration of Restrictive Covenants, the total loan
amount shall become due and owing if any of the following occurs during the Affordability
Period: (a) the property is: (i) rented; (ii) sold or transferred, by operation of law or otherwise
(except as to a Program eligible heir residing on the property); or (iii) encumbered (voluntary
or otherwise), mortgaged or refinanced (except as to a senior mortgage, for improved
payment terms), or (b) borrower/owner fails to occupy the property as a primary home. Upon
the occurrence of a default, the total loan amount shall become due and owing and shall
accrue interest at the rate of twelve percent (12%) per annum ("Default Interest Rate") from
the due date until paid. •- !-- - - -• - '- -- - • - •• •- - - - - - --
mortgage holder
In the event that a foreclosure proceeding is commenced against the property by a senior
mortgage holder, the City will make an effort to recapture funds through the legal process if it
is determined that adequate funds may be available to justify pursing a repayment.
If the owner sells or transfers the property during the Affordability Period, the City shall be
given the first right to purchase the property based upon the same material terms being
offered to the owner(the "Right of First Refusal").
The owner will be allowed to refinance a senior mortgage without having to pay off the City's
loan, so long as the new loan amount does not exceed the then outstanding balance of the
senior mortgage (without additional cash out) and will serve to lower the mortgage payment
and/or interest rate.
In the event that title to the property is transferred by the death of the owner to a surviving
heir, and said heir occupies the property as a principal residence, within six (6) months from
the date of the owner's death and meets the SHIP Program eligibility requirements, as
determined by the City Manager, in his reasonable discretion, the City will approve the
transfer.
f. Recipient Selection Criteria: All recipients of assistance must meet the applicable eligibility
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requirements as stipulated in the Florida Statutes, SHIP Rule, and this Plan. Applicants will be
selected from a waiting list on a first-qualified, first-served basis. Special Needs households will
be given priority funding until the City fulfills the minimum SHIP Program requirements for
assistance to this target population.
g. Sponsor Selection Criteria: N/A
h. Additional Information: Mobile homes and trailers are not eligible for this strategy. Assisted
properties must be located within the City of Miami Beach corporate limits.
G. Foreclosure Prevention Code 7
a. Summary: Funds will be provided to assist qualified homeowners with retaining their home
and preventing foreclosure action of their first mortgage. Applicants must be delinquent
at least two full monthly mortgage payments, in receipt of a letter from the mortgage
notifying the applicant of delinquency and/or intent to foreclose.
Eligible expenses include delinquent mortgage payments (principal, interest, taxes and
insurance), special assessment fees from condominium and/or neighborhood
associations, late fees and other customary fees associated with delivery costs (but
excluding brokerage fees.)
b. Fiscal Years Covered: 2019-2020, 2020-2021, and 2021-2022
c. Income Categories to be served: Extremely low-, Very low-, low- and moderate
d. Maximum award: $15,000
e. Terms:
1. Loan/Deferred Loan/Grant: Funds will be awarded as a deferred payment loan, evidenced
by a Note, and secured by a subordinate (unless the City is the sole lender) Mortgage and a
Declaration of Restrictive Covenants, delineating the recapture period and terms.
2. Interest Rate: 0%
3. Loan term: Fifteen (15)Years ("Affordability Period")
4. Forgiveness: The loan will be forgiven at the end of the term.
5. Default/Recapture: Pursuant to the Declaration of Restrictive Covenants, the total loan
amount shall become due and owing if any of the following occurs during the Affordability
Period: (a) the property is: (i) rented; (ii) sold or transferred, by operation of law or otherwise
(except as to a Program eligible heir residing on the property); or (iii) encumbered (voluntary
or otherwise), mortgaged or refinanced (except as to a senior mortgage, for improved
payment terms), or (b) borrower/owner fails to occupy the property as a primary home. Upon
the occurrence of a default, the total loan amount shall become due and owing and shall
accrue interest at the rate of twelve percent (12%) per annum ("Default Interest Rate") from
the due date until paid. The Declaration of Restrictive Covenants terminates automatically
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upon the sale of the property pursuant to a mortgage foreclosure proceeding filed by a senior
mortgage holder.
In the event that a foreclosure proceeding is commenced against the property by a senior
mortgage holder, the City will make an effort to recapture funds through the legal process if it
is determined that adequate funds may be available to justify pursing a repayment.
If the owner sells or transfers the property during the Affordability Period, the City shall be
given the first right to purchase the property based upon the same material terms being
offered to the owner(the "Right of First Refusal").
The owner will be allowed to refinance a senior mortgage without having to pay off the City's
loan, so long as the new loan amount does not exceed the then outstanding balance of the
senior mortgage (without additional cash out) and will serve to lower the mortgage payment
and/or interest rate.
In the event that title to the property is transferred by the death of the owner to a surviving
heir, and said heir occupies the property as a principal residence, within six (6) months from
the date of the owner's death and meets the SHIP Program eligibility requirements, as
determined by the City Manager, in his reasonable discretion, the City will approve the
transfer.
f. Recipient Selection Criteria: All recipients of assistance must meet the applicable eligibility
requirements as stipulated in the Florida Statutes, SHIP Rule, and this Plan. Applicants will be
selected from a waiting list on a first-qualified, first-served basis. Special Needs households will
be given priority funding until the City fulfills the minimum SHIP Program requirements for
assistance to this target population.
g. Sponsor Selection Criteria: N/A
h. Additional Information: Mobile homes and trailers are not eligible for this strategy. Assisted
properties must be located within the City of Miami Beach corporate limits.
H. Acquisition/ Rehabilitation Code 9
a. Summary: Funds will be provided to for-profit and non-profit developers to be used to
finance the costs of acquisition and/or the hard and soft costs of rehabilitating multi-family
buildings. Funds will also be utilized for the acquisition and/or rehabilitation of multi-family buildings
owned and operated by the City.
b. Fiscal Years Covered: 2019-2020, 2020-2021, 2021-2022
c. Income Categories to be served: Extremely low-, Very low-, low-and moderate
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d. Maximum award: $ 40,000 per unit/$400,000 per property
e. Terms as to Developer Acquisitions/Rehabilitations:
1. Loan/Deferred Loan/Grant: Funds will be awarded as a deferred payment loan, evidenced
by a Note, and secured by a subordinate (unless the City is the sole lender) Mortgage and a
Declaration of Restrictive Covenants, delineating the recapture period and terms.
2.Interest Rate: 0%
3. Loan term: Thirty (30)Years ("Affordability Period")
4. Forgiveness: The loan will be forgiven at the end of the term.
5. Default/Recapture: Pursuant to the Declaration of Restrictive Covenants, the total loan
amount shall become due and owing if the property is mortgaged, sold or
transferred, or the property fails to be used for affordable housing during the
thirty (30) year term. Upon the occurrence of a default, the total loan amount
shall become due and owing and shall accrue interest at the rate of twelve
percent (12%) per annum ("Default Interest Rate") from the due date until paid.
For properties owned by developers, where funding was provided for
acquisition, the City may impose a reverter provision at the end of the term,
when the property is not subject to any limitations by superior lienholders, if it is
found to be in the best interest of City to maintain the affordable housing
beyond the Affordability Period when the developer is converting the project to
market rate development. The reverter clause may not be imposed if the
recipient volunteers to keep a negotiated percentage of the units affordable to
very low, low and moderate-income households. -- B-_ _ - _ • : - - '. -
In the event that a foreclosure proceeding is commenced against the property by a senior
mortgage holder, the City will make an effort to recapture funds through the legal process if it
is determined that adequate funds may be available to justify pursing a repayment.
If owner sells or transfers the property during the Affordability Period, the City shall be given
the first right to purchase the property based upon the same material terms being offered to
the owner (the "Right of First Refusal").
The owner will be allowed to refinance a senior mortgage without having to pay off the City's
loan, so long as the new loan amount does not exceed the then outstanding balance of the
senior mortgage (without additional cash out) and will serve to lower the mortgage payment
and/or interest rate.
f. Recipient Selection Criteria: All tenants of properties assisted with SHIP funds must meet the
eligibility requirements as stipulated in the applicable Florida Statutes, SHIP Rule, and this Plan.
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g. Sponsor Selection Criteria: N/A
h. Additional Information: Mobile homes and trailers are not eligible for this strategy. Assisted
properties must be located within the City of Miami Beach corporate limits.
With respect to acquisitions or rehabilitations for City-owned facilities, the City will execute and
record a Declaration of Restrictive Covenants, reflecting that the property has to remain for use
as affordable housing during the Affordability Period.
I. Land Acquisition Code 20
a. Summary: Funds will be provided to for-profit and non-profit developers to be used to
finance the costs of acquisition and/or the hard and soft costs of rehabilitating multi-family
buildings. Funds will also be utilized for the acquisition and/or rehabilitation of multi-family
buildings owned and operated by the City.
b. Fiscal Years Covered: 2019-2020, 2020-2021, and 2021-2022
c. Income Categories to be served: Extremely low-, Very low-, low- and moderate-income
households
d. Maximum award: $ 40,000 per unit
e. Terms as to developer acquisitions or rehabilitations:
1. Loan/deferred loan/grant: Funds will be awarded as a deferred payment loan, evidenced by
a Note, and secured by a subordinate (unless the City is the sole lender) Mortgage and a
Declaration of Restrictive Covenants, delineating the recapture period and terms.
2. Interest Rate: 0%
3. Loan term: Thirty (30) Years ("Affordability Period")
4. Forgiveness: The loan will be forgiven at the end of the Affordability Period.
5. Default/Recapture: Pursuant to the Declaration of Restrictive Covenants, the total loan
amount will become due and owing if the property is mortgaged, sold or transferred, or the
property fails to be used for affordable housing during the Affordability Period. For properties
owned by developers, where funding was provided for acquisition, the City may impose a
reverter provision at the end of the term, when the property is not subject to any limitations
by superior lienholders, if it is found to be in the best interest of City to maintain the
affordable housing beyond the Affordability Period when the developer is converting the
project to market rate development. The reverter clause may not be imposed if the recipient
volunteers to keep a negotiated percentage of the units affordable to very low, low and
moderate-income households. Upon the occurrence of a default, the total loan amount shall
become due and owing and shall accrue interest at the rate of twelve percent (12%) per
annum ("Default Interest Rate") from the due date until paid. -- -. _ _ _ _ - - . -
Covcnants survives any proceedings in foreclosure, bankruptcy probate or any other
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In the event that a foreclosure proceeding is commenced against the property by a senior
mortgage holder, the City will make an effort to recapture funds through the legal process if it
is determined that adequate funds may be available to justify pursing a repayment.
If owner sells or transfers the property during the Affordability Period, the City shall be given
the first right to purchase the property based upon the same material terms being offered to
the owner (the "Right of First Refusal").
The owner will be allowed to refinance a senior mortgage without having to pay off the City's
loan, so long as the new loan amount does not exceed the then outstanding balance of the
senior mortgage (without additional cash out) and will serve to lower the mortgage payment
and/or interest rate.
f. Recipient Selection Criteria: All tenants of properties assisted with SHIP funds must meet the
eligibility requirements as stipulated in the applicable Florida Statutes, SHIP Rule, and this Plan.
g. Sponsor Selection Criteria: N/A
h. Additional Information: Mobile homes and trailers are not eligible for this strategy. Assisted
properties must be located within the City of Miami Beach corporate limits.
With respect to acquisitions or rehabilitations for City-owned facilities, the City will execute and
record a Declaration of Restrictive Covenants, restricting the use of the property for affordable
housing during the Affordability Period.
4. Rental Development Code 14
b. Summary: Funds will be provided to for-profit and non-profit developers to be used to
finance the costs of acquisition and/or the hard and soft costs of rehabilitating.multi-family
buildings. Funds will also be utilized for the acquisition and/or rehabilitation of multi-family
buildings owned and operated by the City.
b. Fiscal Years Covered: 2019-2020, 2020-2021, and 2021-2022
c. Income Categories to be served: Extremely low, Very low-, low- and moderate-income
households
d. Maximum award: $40,000 per unit/$400,000 per property
e. Terms as to Developer Acquisitions or Rehabilitations:
1. Loan/deferred loan/grant: Funds will be awarded as a deferred payment loan, evidenced by
a Note, and secured by a subordinate (unless the City is the sole lender) Mortgage and a
Declaration of Restrictive Covenants, delineating the recapture period and terms.
2. Interest Rate: 0%
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fineec�C..poeiian
3. Loan term: Thirty (30)Years ("Affordability Period")
4. Forgiveness: The loan is forgiven at the end of the term. 5. Default/Recapture: Pursuant to
the Declaration of Restrictive Covenants, the total loan amount shall become due and owing if the
property is sold or transferred, mortgaged or the property fails to be used for affordable housing
during the Affordability Period. For properties owned by developers, where funding was provided
for acquisition, the City may impose a reverter provision at the end of the term, when the property
is not subject to any limitations by superior lienholders, if it is found to be in the best interest of.
City to maintain the affordable housing beyond the Affordability Period when the developer is
converting the project to market rate development. The reverter clause may not be imposed if the
recipient volunteers to keep a negotiated percentage of the units affordable to very low, low and
moderate-income households. Upon the occurrence of a default, the total loan amount shall
become due and owing and shall accrue interest at the rate of twelve percent (12%) per annum
("Default Interest Rate") from the due date until paid. The Declaration of Restrictive Covenants
qu_'J_
In the event that a foreclosure proceeding is commenced against the property by a senior
mortgage holder, the City will make an effort to recapture funds through the legal process if it
is determined that adequate funds may be available to justify pursing a repayment.
If owner sells or transfers the property during the Affordability Period, the City shall be given
the first right to purchase the property based upon the same material terms being offered to
the owner (the"Right of First Refusal").
The owner will be allowed to refinance a senior mortgage without having to pay off the City's
loan, so long as the new loan amount does not exceed the then outstanding balance of the
senior mortgage (without additional cash out) and will serve to lower the mortgage payment
and/or interest rate.
f. Recipient Selection Criteria: All tenants of properties assisted with SHIP funds must meet the
eligibility requirements as stipulated in the applicable Florida Statutes, SHIP Rule, and this Plan.
g. Sponsor Selection Criteria: N/A
h. Additional Information: Mobile homes and trailers are not eligible for this strategy. Assisted
properties must be located within the City of Miami Beach corporate limits.
With respect to acquisitions or rehabilitations for City-owned facilities, the City will execute
and record a Declaration of Restrictive Covenants, reflecting that the property has to remain
for use as affordable housing during the Affordability Period.
III. LHAP Incentive Strategies
In addition to the required Incentive Strategy A and Strategy B, include all adopted incentives
with the policies and procedures used for implementation as provided in Section 420.9076, F.S.:
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A. Name of the Strategy: Expedited Permitting
Permits as defined in s. 163.3177 (6) (f) (3) for affordable housing projects are
expedited to a greater degree than other projects.
Provide a description of the procedures used to implement this strategy:
B. Name of the Strategy: Ongoing Review Process
An ongoing process for review of local policies, ordinances, regulations and plan
provisions that increase the cost of housing prior to their adoption.
Provide a description of the procedures used to implement this strategy:
C. Other Incentive Strategies Adopted: Affordable Housing Unit Size and Parking
Requirements, Ordinance No. 2017-4148
The reduction of parking requirements for new construction or rehabilitated housing units
for low- and/or moderate-income housing for elderly and non-elderly persons.
IV. EXHIBITS:
A. Administrative Budget for each fiscal year covered in the Plan.
B. Timeline for Estimated Encumbrance and Expenditure.
C. Housing Delivery Goals Chart (HDGC) For Each Fiscal Year Covered in the plan.
D. Signed LHAP Certification.
E. Signed, dated, witnessed or attested adopting resolution.
F. Ordinance: (If changed from the original creating ordinance).
G. Interlocal Agreement.
H. Other Documents Incorporated by Reference.
•
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