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2010-27370 ResoRESOLUTION NO. 2010-27370 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING THE ATTACHED LOCAL HOUSING ASSISTANCE PLAN FOR THE STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM FOR FISCAL YEARS 2010/11, 2011/12, AND 2012/13, AS REQUIRED BY THE STATE HOUSING INITIATIVES PARTNERSHIP PROGRAM ACT, SUBSECTIONS 120.907-420.9079, FLORIDA ADMINISTRATIVE CODE; AUTHORIZING THE NECESSARY CERTIFICATIONS BY THE MAYOR AND THE CITY CLERK; AUTHORIZING SUBMISSION OF THE LOCAL HOUSING ASSISTANCE PLAN FOR REVIEW AND APPROVAL BY THE FLORIDA HOUSING FINANCE CORPORATION; AUTHORIZING THE APPROPIATION OF SHIP PROGRAM FUNDS FOR FISCAL YEARS 2010/11, 2011/12 AND 2012/13 IN AMOUNTS TO BE DETERMINED, OR SUCH FINAL ALLOCATION AMOUNTS, AS ADJUSTED BY THE FLORIDA HOUSING FINANCE CORPORATION; AND AUTHORIZING THE APPROPRIATION OF ANY INTEREST ACCRUED THEREON, FOR ELIGIBLE ACTIVITIES UNDER THE SHIP PROGRAM RULES. WHEREAS, the State of Florida enacted the William E. Sadowski Affordable Housing Act (the Act) on July 7, 1992, allocating a portion of new and existing documentary stamp taxes on deeds to local governments for development and maintenance of housing through the State Housing Initiatives Partnership (SHIP) Program; and WHEREAS, the Act requires that in order to qualify for funding, local governments prepare and submit a Local Housing Assistance Plan outlining how the funds will be used; and WHEREAS, on April 14, 2007, pursuant to Resolution No. 2004-25537, the Mayor and City Commission approved and adopted a City of Miami Beach Housing Assistance Plan for Fiscal Years 2007/08, 2008/09 and 2009/10, pursuant to the requirements of the Act and the SHIP Program Rule, issued by the Florida Housing Finance Corporation; and WHEREAS, 10% of the Local Housing Distribution and five percent of accrued interest is allocated to pay for administrative costs; and WHEREAS, the Administration has prepared a new Local Housing Assistance Plan, as attached to this Resolution, for Fiscal Years 2010/11, 2011/12 and 2012/13, in order to qualify to receive annual allocations of SHIP Program funds for eligible housing activities; and WHEREAS, this Resolution authorizes the appropriation of SHIP Program funds for Fiscal Year 2010/11, 2011/12 and 2012/13 in amounts to be determined by the State; or such final allocation amounts, as adjusted by the Florida Housing Finance Corporation; and authorizes the appropriation of any interest accrued thereon, for eligible activities under the SHIP Program Rule. 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 attached Local Housing Assistance Plan for the State Housing Initiatives Partnership (SHIP) Program for Fiscal Years 2010/11, 2011/12 and 2012/13; authorize the necessary certifications by the Mayor and the City Clerk; authorize submission of the Local Housing Assistance Plan for review and approval by the Florida Housing Finance Corporation; authorize the appropriation of SHIP Program funds for Fiscal Years 2010/11, 2011/12 and 2012/13 in amounts to be determined by the State; or such final allocation amounts, as adjusted by the Florida Housing Finance Corporation; and authorize the appropriation of any interest accrued thereon, for eligible activities under the SHIP Program Rule. Passed and adopted this ~ day of ~~~ O , 2010. ~ ~~ AYOR ATTEST: ~ ~~~ CITY CLERK T:1A GE N DA120101Apri 1141Consen t1L HA PResol utionfina I. doc APPROVED AS TO FORM & LANGUAGE ts< FOR EXECUTION %~~ 4ti(~ new~~r.~--~ Date COMMISSION ITEM SUMMARY Condensed Title: A Resolution approving and adopting the SHIP Program Local Housing Assistance Plan for Fiscal Years 2010/11, 2011/12 and 2012/13. ~ Increase access to workforce or affordable housing. ~ supporting tiara (surveys, tnvironmentai Scan, etc.: Based on the 2007 Customer Satisfaction Survey, 75% of residents rank the quality of life within the City of Miami Beach favorably, however, in regards to Construction/Development -Housing, 67% of respondents indicated that the City of Miami Beach should ensure the provision of housina for the elderly/seniors. Issue: Shall the City adopt a resolution approving the SHIP Local Housing Assistance Plan for Funding Years 2010/11, 2011/12 and 2012/13? The State Housing Initiatives Partnership program (SHIP), administered through the Florida Housing Finance Corporation (FHFC), was established by the 1992 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. Annually, the 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 whose income does not exceed 120% of the Area Median Income. Entitlement communities, such as the City of Miami Beach, are required to produce and file with the State of Florida, a Local Housing Assistance Plan (CHAP) which will govern each community's use of SHIP funds. SHIP program rules require that at least 75% of the overall funds must be used for construction, rehabilitation or emergency repairs of affordable, eligible housing, and at least 65% of the allocation be used for home ownership activities, which may be for first-time homebuyer activities or owner-occupied rehabilitation projects. At least 30% of overall funds must be reserved for activities which benefit very-low income buyers. Very-low and low income buyers are eligible to receive up to $60,000 in assistance; moderate income households are eligible to receive up to $40,000 in assistance to be used for down payment assistance and closing costs. The City's SHIP entitlement for homeownership and rental activities was $537,462 in FY 07/08; $473,171 in FY 08/09; and $43,691 FY 09/10. The FY 2010/11 entitlement allocation amount, due July 1, 2010, is unknown at this time. The State requires that a new Local Housing Assistance Plan (CHAP) for State fiscal years 2010/11, 2011/12 and 2012/13 be submitted by May 2, 2010, utilizing the format required by the FHFC. The proposed Plan incorporates the strategies of the current Local Housing Assistance Plan and continues to provide for SHIP Program funds to be used for homeownership counseling, down payment assistance, closing cost assistance, rehabilitation assistance, and funds for rental development, and includes a revision to the policy for cash-outs of equity during refinancing, under certain conditions. Additionally, a Foreclosure Prevention Strategy is being proposed for the next three years in light of economic circumstances. The new three-year CHAP is to be implemented starting July 1, 2010. The allocated grant amounts for fiscal years 2010/11, 2011/12, and 2012/13 have yet to be determined by the State. The Administration recommends that the Mayor and the City Commission adopt a resolution approving the SHIP Program Local Housing Assistance Plan for FYs 2010/11, 2011/12 and 2012/13. Board Recommendation: Financial Source of Funds: Amount Account Approved 1 SHIP 2 Pro ram OBPI Total Financial Impact Summary: :y Clerk's Office Lei Anna Parekh ext.7260 AP I HMF ~1-fQ~1/~-'e1~ I JMG Agenda Item C 7 6~(' Date ~1-/ ~/-/l? m MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, vvww.miamibeachfl.gov COMMISSION MEMORANDUM To: May r atti Herrera Bo er and Members of the City Commission From: Jo .Gonzalez it anager Date: April 14, 2010 Subject: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING THE ATTACHED LOCAL HOUSING ASSISTANCE PLAN FOR THE STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM FOR FISCAL YEARS 2010/11, 2011/12, AND 2012/13, AS REQUIRED BY THE STATE HOUSING INITIATIVES PARTNERSHIP PROGRAM ACT, SUBSECTIONS 120.907-420.9079, FLORIDA ADMINISTRATIVE CODE; AUTHORIZING THE NECESSARY CERTIFICATIONS BY THE MAYOR AND THE CITY CLERK; AUTHORIZING SUBMISSION OF THE LOCAL HOUSING ASSISTANCE PLAN FOR REVIEW AND APPROVAL BY THE FLORIDA HOUSING FINANCE CORPORATION; AUTHORIZING THE APPROPIATION OF SHIP PROGRAM FUNDS FOR FISCAL YEARS 2010/11, 2011/12 AND 2012/13 IN AMOUNTS TO BE DETERMINED OR SUCH FINAL ALLOCATION AMOUNTS, AS ADJUSTED BY THE FLORIDA HOUSING FINANCE CORPORATION; AND AUTHORIZING THE APPROPRIATION OF ANY INTEREST ACCRUED THEREON, FOR ELIGIBLE ACTIVITIES UNDER THE SHIP PROGRAM RULES. ADMINISTRATION RECOMMENDATION Adopt the Resolution. BACKGROUND The State Housing Initiatives Partnership program (SHIP), administered through the Florida Housing Finance Corporation, was established by the 1992 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. Annually, the 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 whose income does not exceed 120°/0 of the Area Median Income, currently $50,800. Entitlement communities, such as the City of Miami Beach, are required to produce and file with the State of Florida, a Local Housing Assistance Plan (CHAP) which will govern each community's use of SHIP funds. The CHAP delineates the strategies that will be employed using SHIP funds to increase affordable housing and homeownership opportunities for income-eligible residents. LHAP-SHIP April 14, 2010 Page 2 of 4 The City's SHIP entitlement has varied significantly in the past three years: - FY 07/08 - $537,462 - FY 08/09 - $473,171 - FY 09/10 - $43, 691 The City's entitlement allocation has been declining because of the reduction in documentary stamp collections as a result of fewer property sales. The FY 10/11 allocation, due July 1, 2010, is unknown at this time. The SHIP program was initiated in 1992, but the City of Miami Beach first participated in the program in 1995. Since that time, SHIP funds have helped to provide more than 150 residents with first-time home buyer program funds, including closing costs and down payment assistance, and over 25 households have received owner-occupied housing rehabilitation services. Per SHIP program guidelines, the funds must be allocated as follows: • At least 75% of the overall funds must be used for construction, rehabilitation or emergency repairs of affordable, eligible housing (which may include rental development activities); • At least 65% of the overall funds must be used for home ownership activities (first-time homebuyer activities or owner-occupied rehabilitation projects) • At least 30% of the overall funds must be reserved for activities which benefit very-low income households. On April 11, 2007, the City approved Resolution 2007-26510 adopting a Local Housing Assistance Plan (LHAP) for State fiscal years 2007/08 through 2009/10. The current plan provides for the use of SHIP funds utilizing several strategies including: funding emergency repairs, new construction, rehabilitation, down payment and closing cost assistance, impact fees, construction and gap financing, mortgage buy-downs, acquisition of property for affordable housing, matching dollars for federal housing programs and homeownership counseling. The City amended its LHAP on September 30, 2008, to adopt a Disaster Mitigation Strategy, as required by the State, and to in increase the maximum award for home buying down payment assistance for very low-income and low-income households from $40,000 to $60,000. Moderate income households qualify for up to $40,000 in assistance. The assistance for very-low and low- income households was increased due to the difficulty experienced by these households in qualifying for mortgages in the City, where the majority of the affordable housing stock is in condominium buildings and the qualification process includes the ability to pay condominium association dues. The additional assistance reduces the amount of private financing needed making the housing more affordable. Program participants must agree to a restrictive covenant that requires repayment of the assistance if there is a sale within the affordability period, typically 15 years for single-family and condominium owners. PROPOSED NEW STRATEGIES The State requires that a new LHAP for fiscal years 2010/11, 2011/12 and 2012/13 be submitted by May 2, 2010, utilizing the format required by the FHFC. Attachment 1 hereto is a draft SHIP Local Housing Assistance Plan for FY2010/11, 2011/12, and 2012/13, which incorporates existing strategies, as well as the new State requirement of addressing green housing strategies including energy conservation, the use of sustainable building materials in construction and building LHAP-SHIP April 14, 2010 Page 3 of 4 healthy environments. In addition, in response to our community's economic crisis, the attached draft also includes two new strategies: the enabling of cash-outs obtained during refinancing; and mortgage foreclosure assistance. All proposed new language is underlined in the attached proposed LHAP. Cash-outs during Refinance The current LHAP prohibits cash-outs obtained during refinancing. This provision was created during the real estate boom and was intended to discourage abuse by profiteers in the marketplace. The proposed LHAP revision allows acash-out of equity in the event a property is refinanced within 12 months of the expiration of the affordability period (the term of the mortgage secured by the restrictive covenant). In the event the refinance includes acash-out, the SHIP fund recipient will reimburse the City for payments which would be due if the loan had been amortized over the life of the affordability period. The formula for repayment outlined in the attached LHAP is: Dollar Amount of Lien X (Number of Months Remaining on Lien /total Lien Period] = Reimbursement Amount For example, if a SHIP recipient of $40,000 with 10 months remaining in a 15-year affordability period (the lien term) wishes to refinance the debt in a manner that provides for some cash-out, they will be able to do so, but will have to repay the City using the following calculation: $40,000 x [10/180] _ $2,222 The SHIP recipient would reimburse the City $2,222, and the City would release the restrictive covenant from the property. Foreclosure Prevention Strategy The proposed LHAP also includes a new Foreclosure Prevention Strategy in response to the growing number of foreclosures in our community. After extensive consultation with the City's technical assistance representatives at the Florida Housing Finance Corporation (FHFC), the following strategy, implemented by other entitlement communities, is proposed to serve income- eligible residents facing the threat of foreclosure: a. Summary of the Strategy: Provision of one-time assistance to assist income- eligible homeowners at risk of foreclosure as a result of delinquency or default of their mortgage payments if such default was caused by unforeseen circumstances such as loss of income, divorce, medical issues, special assessment (i.e. 40-year certification, roof replacement, construction, rehabilitation), etc. Participation in housing and credit counseling will be required for households receiving this assistance. b. Fiscal Years Covered: 2010/11, 2011/12 and 2012/13 c. Income Categories to be served: Eligible persons/households that are very low, low or moderate income. d. Maximum award is noted on the Housing Delivery Goals Charts: $10,000 e. Terms, Recapture and Default: A Fifteen (15) year deferred payment loan at 0% interest. Full balance of the SHIP subsidy will be due if the property is sold or transferred. LHAP -SHIP April 14, 2010 Page 4 In the event that the property is refinanced within 12 months of the expiration of the affordability period, and there is a cash-out of equity, the City shall be reimbursed using the following formula: Dollar Amount of Lien multiplied by [Number of Months Remaining on Lien//Total Lien Period] =Reimbursement Amount The City's interests will be secured through the execution of a mortgage and note as well as a Restrictive Covenant delineating the affordability period and terms. f. Recipient Selection Criteria: All recipients of SHIP assistance must meet the income eligibility requirements as stipulated in applicable Florida Statutes, SHIP Rule, and this Plan. Applicants will be selected from a waiting list on a first come, first ready basis. According to the SHIP Program regulations, 30% of the total number of recipients of assistance must be very low income applicants; 30% may be low-income applicants, and the balance will be assigned to moderate income applicants. Eligible residents may receive up to $10,000 to prevent foreclosure. These funds may be used to pay delinquent mortgage payments and special assessments (e.g. 40-year certification, roof replacement, construction or rehabilitation) levied against the property of an income-eligible owner. Eligibility for assistance will include an assessment of the recipient's ability to sustain housing if foreclosure prevention assistance is provided. CONCLUSION The City has been a SHIP entitlement community since 1995 and has served more than 200 Miami Beach households with the program funds. City staff works closely with the Florida Housing Finance Corporation technical staff and with the program sponsor in monitoring the SHIP program in compliance with rules and regulations established by the State of Florida. Anew Local Housing Assistance Plan is due to be filed with the State of Florida by May 2, 2010. Previous strategies have been included in the proposed LHAP, as well as a revision to the policy for refinancing under certain conditions. An additional Foreclosure Prevention Strategy is being proposed for the next three years in light of economic circumstances. The Administration recommends approval of the attached LHAP for State fiscal years 2010/11, 2011/12 and 2012/13, including proposed amendments to the program; authorizing the necessary certifications by the Mayor and City Clerk; and authorizing submission of the Local Housing Assistance Plan for review and approval by the Florida Housing Finance Corporation; further, authorizing the appropriation of SHIP Program funds for fiscal years 2010/11, 2011/12; 2012/13; for the final allocation amount, as adjusted by the Florida Housing Finance Corporation; and authorizing the appropriation of any interest accrued thereon, for eligible activities under the rules of the SHIP Program. JMG/HMF/AP/LC T:\P,G E N DA\2010~April 14\Consent\LHAPMemofinal.doc SHIP LOCAL HOUSING ASSISTANCE PLAN (CHAP) FISCAL YEARS COVERED 201012011, 201112012 and 2012/2013 Prepared by: Office of Real Estate, Housing & Community Development Miami Beach City Hall 1700 Convention Center Drive Miami Beach, Florida 33139 Table of Contents Program Description A. Name of Participating Local Government B. Purpose of the Program C. Fiscal Years Covered by LHAP D. Governance E. Local Housing Partnership F. Leveraging G. Public Input H. Advertising and Outreach I. Discrimination J. Support Services and Counseling K. Purchase Price Limits L. Income Limits, Rent Limits, and Affordability M. Welfare Transition Program N. Monitoring and First Right of Refusal O. Administrative Budget P. Program Administration O. Essential Service Personnel LHAP Housing Strategies City of Miami Beach LHAP 3 8 A. Housing Rehabilitation B. New Construction C. Closing Costs and Down Payment D. Rehabilitation of Multi-family Buildings for Condominium Conversion E. Rental Housing Development F. Workforce Housing G. Foreclosure Prevention LHAP Incentive Strategies 19 Expedited Permitting Ongoing Review Process Exhibits Administrative Budget Timelines by Program Year Housing Delivery Goals Chart by Program Year Certification to Florida Housing Finance Corporation Adopting Resolution Program Information Sheet 22 -2- I. PROGRAM DESCRIPTION: City of Miami Beach LHAP A. Name of the Participating Local Government and Interlocal (if applicable): Section 420.9072 (5) Florida Statutes City of Miami Beach Interlocal: Yes No X B. Purpose of the Program: Creation of the Plan is for the purpose of meeting 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: 2010/2011 2011 /2012 2012/2013 D. GOVernanCe: Chapter67-37.005(3) and (5)(i)F.A.C.and Section 420.907.1(14)F.S. The SHIP Program is established in accordance with Section 420.907-9079, Florida Statutes and Chapter 67-37.007 Florida Administrative Code. Cities and Counties must at all times be in compliance with applicable statutes and rules: 420.907-9079 F.S., and Chapter 67-37, F.A.C. The SHIP Program does further the housing element of the local government Comprehensive Plan. E. LOCaI Housing Partnership: section a2o.9o72(1~(a~, F. s. SHIP Program encourages building active partnerships between government, lenders, builders and developers, real estate professionals, advocates for low- income persons and community groups. The City of Miami Beach works closely with its designated Community Housing Development Organization (CHDO), as well as other local groups involved in local housing activities, in the development of its Local Housing Assistance Plan. F. Leveraging: The Plans are intended to increase the availability of affordable residential units by combining local resources and cost saving measures into a local housing -3- City of Miami Beach LHAP 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 which receives HOME and CDBG funds from the U.S. Department of Housing and Urban Development (HUD) that will be used, in combination with other local funds, to leverage SHIP funds and reduce the cost of housing in the City. G. Public Input: Public input was solicited through face to face meetings with housing providers, social service providers, local lenders and neighborhood associations through public meetings. Public input was solicited through the local newspaper in the advertising of the Local Housing Assistance Plan and the Notice of Funding Availability (NOFA), as appropriate. H. Advertising and Outreach The City advertises the Notice Of Funding Availability for SHIP funds in a newspaper of general circulation and periodicals serving ethnic and diverse neighborhoods, at least 30 days before the beginning of the application period. Discrimination: In accordance with the provisions of ss.760.20-760.37, the City of Miami Beach does not discriminate on the basis of race, creed, religion, color, age, sex, sexual orientation, marital status, familial status, national origin, or handicap in the award application process for eligible housing. J. Support Services and Counseling: Support services are available from various sources. Available support services may include, but are not limited to: • Homeownership counseling (pre and post) • Credit counseling • Tenant counseling • Transportation • Legal counseling, • Health and psychological services • Employment and training • Consumer credit - Fair housing Note: All sponsors receiving SHIP Program funds will be required to offer Home Ownership Training to prospective homebuyers. Such training will assist and prepare homebuyers for the acquisition and ownership of a home. Counseling -4- City of Miami Beach LHAP services will be provided on a group and individual basis covering the following topics: the home buying process; finding money for adown-payment; dealing with financial crisis; how to set up a budget; the importance of good credit; dispute resolution; and how to maintain a home. Home Ownership Training must meet the standards set by U.S. HUD. K. Purchase Price Limits: 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 any other independent study. The methodology used is: Independent Study (copy attached) U.S. Treasury Department X Bond Study Numbers provided by Florida Housing Finance Corporation The purchase price limit for new and existing homes: 329 268 L. Income Limits, Rent Limits, and Affordability: The Income and Rent Limits used in the SHIP Program are updated annually from the Department of Housing and Urban Development and distributed by Florida Housing Finance Corporation. 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 the households as indicated in Sections 420.9071 (19), (20) and (28), F.S. However it is not the intent to limit an individual household's ability to devote more than 30% of its income for housing, and 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 in excess of the 30% benchmark and, in the case of rental housing, does not exceed those rental limits adjusted for bedroom size. M. Welfare Transition Program: The City has developed a qualification system and selection criteria for applications for awards to eligible sponsors, which includes a description that demonstrates how eligible sponsors that employed personnel from the Welfare Transition Program will be given preference in the selection process. -5- City of Miami Beach LHAP N. Monitoring and First Right of Refusal: In the case of rental housing, the staff or 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 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 $3,000 or less shall not be subject to these annual monitoring and determination of tenant eligibility requirements. Tenant eligibility will be monitored at least annually for 15 years or the term of assistance, whichever is longer. Eligible sponsors that offer rental housing for sale before 15 years or that have other remaining mortgages funded under the SHIP 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. O. Administrative Budget: A detailed listing including line-item budget of proposed Administrative Expenditures is attached as Exhibit A. These are presented on an annual basis for each State fiscal year submitted. The City finds that the monies deposited in the local housing assistance trust fund shall be used to administer and implement the local housing assistance plan. In accordance with Chapter 67-37, Florida Administrative Code, the cost of administering the plan does not exceed 5 percent of the local housing distribution monies and program income deposited into the trust fund. The cost of administering the program may not exceed 10 percent of the local housing distribution plus 5% of program income deposited into the trust fund, except that small counties, as defined in s. 120.52(17), 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 City of Miami Beach has adopted the above findings in the attached Resolution, Exhibit E. P. Program Administration: Administration of the Local Housing Assistance Plan is the responsibility of the City of Miami Beach. The City of Miami Beach's Office of Real Estate, Housing & Community Development will be the primary agency responsible for carrying out the strategies under the SHIP Housing Assistance Plan. -6- City of Miami Beach LHAP The City anticipates that it will use a sponsor to carry out program activities. In order to identify a sponsor, the City will issue a Competitive Notice of Funding Availability (NOFA) for various not-for-profit and for-profit builders/developers to participate in the program. Through the NOFA process, the City will ascertain the highest and best use of the funds in accordance with the guidelines outlined in this Plan. Selection criteria will include, but may not be limited to: (1) Ability to provide strong construction management practices and to provide first quality materials, including landscaping if applicable (2) Ability to perform all applicant selection and income certification processes in accordance with local, state, and federal regulations (3) Ability to comply with the City's reporting requirements (4) Total project cost (5) Total number of units (6) Leveraging (7) Ability to conform to the City's plan for spatial de-concentration (8) Ability to provide homeowners with Home Ownership Counseling (9) Ability to provide individualized training to homebuyers on issues such as home maintenance and budgeting (10) Ability to demonstrate that the organization participates in the WAGES and Workforce Development Initiative Program The Office of Real Estate, Housing and Community Development will review all responses to the NOFA to ensure compliance with the requirements of the NOFA as well as under applicable Florida Statutes, the SHIP Ordinance, Resolutions and this Plan. All eligible applications will be submitted to the City's Loan Review Committee. The Committee will review all applications in accordance with the criteria as outlined in the NOFA. Q. Essential Service Personnel In accordance with Rule Chapter 67-37.002(8) F.A.C. and Chapter 67-37.005(8), F.A.C. and Section 420.9075(3)(a) FS, "Essential Service Personnel" are defined as income-eligible employees of Miami Beach businesses and organizations in the following industries: -7- City of Miami Beach LHAP a. Accommodations and Food Services (including arts, entertainment and recreation); b. Retail Trade; c. Public Administration (including City of Miami Beach employees); d. Health Care; and e. Education (including public school district employees). II. LHAP HOUSING STRATEGIES: NOTE: In the event preference is given to Essential Service Personnel, plan text must so state pursuant to Chapter 67-37.005(8). F.A.C. Description: A. Housing Rehabilitation: a. Summary of the Strategy: Rehabilitation of single family, first-time home buyer or owner-occupied housing. The Program will provide rehabilitation assistance to very low, low, and moderate income owner occupied single family housing located within the corporate limits of the City of Miami Beach. Up to fifty (50) percent of the funds will be targeted to assist Program participants who are Essential Service Personnel, as defined on Section I (Q) of this Plan. If the demand for assistance from this target population is not sufficient to fully utilize these funds, the balance of the funds will be used to assist participants who are not from the target group. "Rehabilitation" will be defined as repairs or improvements that are needed for safe or sanitary habitation, correction of substantial code violations, or the creation of additional living space. Housing rehabilitated with SHIP funds must meet all applicable local codes, rehabilitation standards and ordinances, including, but not limited to, zoning ordinances. All projects must comply with the South Florida Building Code, Miami-Dade County Building Code, and City of Miami Beach Building Code. Additionally, all projects must comply with all other applicable laws, rules and regulations. The City intends to exercise flexibility in determining whether condominium units for this strategy may be purchased/ rehabilitated at individual sites or to allow the purchase/rehabilitation of several units in one building, not to exceed more than one fifth of the units in the building. In general, the City will stress the need for the spatial de- concentration of assisted housing units throughout the City. -8- City of Miami Beach LHAP Disaster Mitigation/Recovery: As part of the Rehabilitation Strategy, only in the event of a natural disaster as declared by the President of the United States or the Governor of the State of Florida, the City will commit all unencumbered SHIP funding available, as well as any other additional disasterfunds that may become accessible through the Florida Housing Finance Corporation or any other emergency funding sources. Disaster funds may be used, but not limited to, as follows: 1) Purchase of emergency supplies for eligible households to weatherproof damaged homes; 2) Interim repairs to prevent further damage, tree and debris removal required 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. Rehabilitated units and newly-constructed housing utilizing SHIP funds must include at least four (4) of the following green strategies in order to promote environmentally sustainable housing: 1) Energy conservation (including Envelope and Equipment) 2) Water conservation 3) Preservation of wildlife habitat 4) Healthy environment 5) Durability (including sustainable materials) 6) Access and transportation Further guidance is provided via Green Home Certification, Schedule A, Version 5.0 by the Florida Green Building Coalition, Inc. b. Fiscal Years Covered: 2010/11, 2011/12 and 2012/13 c. Income Categories to be served: Eligible persons/households that are very low, low, or moderate income. See also Section I (L) of this Plan. d. Maximum award as noted on the Housing Delivery Goals Charts: $40,000 e. Terms, Recapture and Default: Fifteen (15) years deferred payment loan at 0% interest. Full balance due if property is sold, rented, refinanced or the property fails to be the primary residence during the fifteen year term. Notwithstanding the previous restrictions, the owner -9- City of Miami Beach LHAP shall be allowed to refinance without being subject to the provisions set forth therein so long as the amount of the refinancing does not exceed the then outstanding balance of the first mortgage. Subordination will only be approved if the refinancing will lower the current mortgage payment and/or interest rate. In the event that property is refinanced within 12 months of the expiration of the affordability period, and the refinance includes acash-out of equity, the City shall be reimbursed using the following formula: Dollar Amount of Lien multiplied by (Number of Months Remaining on Lien//Total Lien Periodl =Reimbursement Amount The City's interests will be secured through the execution of a mortgage and note as well as a Restrictive Covenant delineating the affordability period and terms. 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 come, first ready basis. According to the SHIP Program regulations, 30% of the total number of recipients of assistance must be very low income applicants; 30% may be low-income applicants and the balance will be assigned to moderate income applicants. g. Sponsor Selection Criteria: See Section I (P) of this Plan. h. Additional Information: Mobile homes and trailers are not eligible for this strategy. Eligible housing must be located within the corporate limits of the City of Miami Beach. B. New Construction: a. Summary of the Strategy: To develop home ownership opportunities, the City will assist very low, low, and moderate income buyers and persons with special needs to purchase affordable housing in Miami Beach. Rehabilitated units and newly-constructed housing utilizing SHIP funds must include at least four (4) of the following preen strategies in order to promote environmentally sustainable housing: 1) Energy conservation (including Envelope and Equipment) Water conservation 3) Preservation of wildlife habitat -10- City of Miami Beach LHAP 4) Healthy environment 5) Durability (including sustainable materials) 6) Access and transportation Further guidance is provided via Green Home Certification, Schedule A, Version 5.0 by the Florida Green Building Coalition, Inc. b. Fiscal Years Covered: 2010/11, 2011/12 and 2012/13 c. Income Categories to be served: Eligible persons/households that are very low, low, or moderate income. See Section I (L) of this Plan. d. Maximum award is noted on the Housing Delivery Goals Charts: $40,000 e. Terms, Recapture and Default. Fifteen (15) year deferred payment loan at 0% interest. Full balance due if property is sold, rented, refinanced or the property fails to be the primary residence during the fifteen years term. Notwithstanding the previous restrictions, the owner shall be allowed to refinance without being subject to the provisions set forth therein so long as the amount of the refinancing does not exceed the then outstanding balance of the first mortgage. Subordination will only be approved if the refinancing will lower the current mortgage payment and/or interest rate. In the event that property is refinanced within 12 months of the expiration of the affordability period, and the refinance includes acash-out of eauity, the City shall be reimbursed using the following formula: Dollar Amount of Lien multiplied by (Number of Months Remaining on Lien//Total Lien Periodl =Reimbursement Amount Additionally, if the unit is sold prior to the extinction of the affordability period, part of the equity produced by the sale shall be also reimbursed to the City as follows: If the unit is sold between the first and the tenth year, 50% of the profit shall be paid to the City; if the unit is sold between the eleventh and the fifteenth year, 25% of the profit shall be paid to the City. The City's interests will be secured through the execution of a mortgage and note as well as a Restrictive Covenant delineating the affordability period and terms. f. Recipient Selection Criteria: All recipients of assistance must meet the -11- City of Miami Beach LHAP eligibility requirements as stipulated in the applicable Florida Statutes, SHIP Rule, and this Plan. Applicants will be selected from a waiting list on a first come, first ready basis. According to SHIP Program regulations, 30% of the total number of recipients of assistance must be very low income applicants; 30% could be low-income applicants and the balance will be assigned to moderate income applicants. . g. Sponsor Selection Criteria: See Section I (P) h. Additional Information: Mobile homes and trailers are not eligible for this strategy. Eligible housing must be located within the corporate limits of Miami Beach. All prospective housing units must be either vacant or owner-occupied at the time of initial purchase. All sponsors receiving SHIP funds will be required to offer Home Ownership Training to prospective homebuyers. See Section I (J) for further information. C. Closing Costs and Down Payment: a. Summary of the Strategy: Closing costs and down payment assistance will be made available for the purchase of scattered sites units (e.g. condominium units) undertaken by a selected sponsor, thus providing affordable home ownership opportunities to qualified persons. b. Fiscal Years Covered: 2010/11, 2011/12 and 2012/13 c. Income Categories to be served: Eligible persons/households that are very low, low or moderate income. See Section I (L). d. Maximum award is noted on the Housing Delivery Goals Charts: $60,000 for Very Low and Low Income Persons and $40,000 for Moderate Income Persons e. Terms, Recapture and Default: Fifteen (15) years deferred payment loan at 0% interest. Full balance due if property is sold, rented, refinanced or the property fails to be the primary residence during the 15-year term. Not withstanding the previous restrictions, the owner shall be allowed to refinance without being subject to the provisions set forth therein so long as the amount of the refinancing does not exceed the then outstanding balance of the first mortgage. Subordination will only be approved if the refinancing will lower the current mortgage payment and/or interest rate. In the event that property is refinanced within 12 months of the expiration of the affordability period, and the refinance includes acash-out of equity the City shall be reimbursed using the following formula: Dollar Amount of Lien multiplied by (Number of Months Remaining on -12- City of Miami Beach LHAP Lien//Total Lien Periodl =Reimbursement Amount Additionally, if the unit is sold prior to the extinction of the affordability period, part of the equity produced by the sale shall be reimbursed to the City as follows: If the unit is sold between the first and the tenth year, 50% of the ~rofit shall be paid to the City; if the unit is sold between the 11 ~h and 15 h year, 25% of the profit shall be paid to the City. The City's interests will be secured through the execution of a mortgage and note as well as a Restrictive Covenant delineating the affordability period and terms. f. Recipient Selection Criteria: All recipients of assistance must meet the eligibility requirements as stipulated in the applicable Florida Statutes, SHIP Rule, and this Plan. Applicants will be selected from a waiting list on a first come, first ready basis. According to SHIP Program regulations, 30% of the total number of recipients of assistance must be very low income applicants; 30% may below-income applicants; and the balance will be assigned to moderate income applicants. g. Sponsor Selection Criteria: See Section I (P) of this Plan. h. Additional Information: Mobile homes and trailers are not eligible for this strategy. Eligible housing must be located within the corporate limits of the City of Miami Beach. All prospective housing units must be either vacant or owner-occupied at the time of initial purchase. All sponsors receiving SHIP funds will be required to offer Home Ownership Training to prospective homebuyers (See Section I (J) of this Plan for further information). D. Rehabilitation of Multi-family Buildings for Condominium Conversion: a. Summary of the Strategy: Rehabilitation of vacant multi-family buildings to be converted into condominium units to be offered to income eligible participants. In buildings with ten (10) or less units all the units will be provided to income eligible participants in the homebuyer program. In buildings with more than ten (10) units, up to forty percent of the units will be provided through the program and the balance of the units could be sold at market rate. Any profits in an eligible project will be utilized to provide additional homeownership opportunities. Rehabilitated units and newly-constructed housing utilizing SHIP funds must include at least four (4) of the following green strategies in order to promote environmentally sustainable housing: ~) i=nergy conservation (including Envelope and Equipment) -13- City of Miami Beach LHAP 2) Water conservation 3) Preservation of wildlife habitat 4) Healthy environment 5) Durability (including sustainable materials) 6) Access and transportation Further guidance is provided via Green Home Certification, Schedule A, Version 5.0 by the Florida Green Building Coalition, Inc. b. Fiscal Years Covered: 2010/11, 2011/12 and 2012/13 c. Income Categories to be served: Eligible persons/households that are very low, low, or moderate income. See Section I (L) of this Plan. d. Maximum award is noted on the Housing Delivery Goals Charts: $40,000 e. Terms, Recapture and Default: Thirty (30) year deferred payment loan at 0% interest. Full balance due if property is sold, rented, refinanced or the property fails to be used for affordable housing during the thirty year term. The City may impose a reverter provision at the end of the term if it is found to be in the best interest of City to maintain the affordable housing beyond the affordability period. Notwithstanding the previous restrictions, the owner shall be allowed to refinance without being subject to the provisions set forth therein so long as the amount of the refinancing does not exceed the then outstanding balance of the first mortgage. Subordination will only be approved if the refinancing will lower the current mortgage payment and/or interest rate. Additionally, if the building is sold after the tenth year of the affordability ep riod but prior to the extinction of the affordability period, in addition to the full repayment of the SHIP loan, part of the equity produced by the sale shall be also reimbursed to the City as follows: If the unit is sold between the eleventh and twentieth year, 50% of the profit shall be paid to the City if the units is sold between the twenty-first and thirtieth year, 30% of the profit. The City's interests will be secured through the execution of a mortgage and note as well as a Restrictive Covenant delineating the affordability period and terms and City's reverter position, if applicable. f. Recipient Selection Criteria: All recipients of assistance must meet the eligibility requirements as stipulated in the applicable Florida Statutes, SHIP Rule, and this Plan. Applicants will be selected from a waiting list -14- City of Miami Beach LHAP on a first come, first ready basis. According to SHIP Program regulations, 30% of the total number of recipients of assistance must be very low income applicants; 30% may be low-income applicants, and the balance will be assigned to moderate income applicants. g. Sponsor Selection Criteria: See Section I (P) of this Plan h. Additional Information: Eligible housing must be located within the corporate limits of the City of Miami Beach. All prospective housing units must be either vacant orowner-occupied at the time of initial purchase. All sponsors receiving SHIP funds will be required to offer Home Ownership Training to prospective homebuyers (See Section I (J) ofthis Plan). E. Rental Housing Development: a. Summary of the Strategy: SHIP Program funds will be made available towards the rehabilitation of vacant multi-family buildings to be converted into rental units to be offered to income-eligible participants. In buildings with ten (10) or less units, all the units will be provided to income eligible participants in the program. In buildings with more than ten units, up to forty percent of the units will be provided through the Program in accordance with SHIP Rule and defined percentages of funding allowed for rental units. The balance of the units will be distributed in accordance to other funding sources rules and regulations. Rehabilitated units and newly-constructed housing utilizing SHIP funds must include at least four (4) of the following preen strategies in order to promote environmentally sustainable housing: 1) Energy conservation (including Envelope and Equipment) 2) Water conservation 3) Preservation of wildlife habitat 4) Healthy environment 5) Durability (including sustainable materials) 6) Access and transportation Further guidance is provided via Green Home Certification, Schedule A, Version 5.0 by the Florida Green Building Coalition, Inc. b. Fiscal Years Covered: 2010/11, 2011/12 and 2012/13 c. Income Categories to be served: Eligible persons/households that are very low, low or moderate income. See Section I (L) of this Plan. d. Maximum award is noted on the Housing Delivery Goals Charts: -15- City of Miami Beach LHAP $40,000 e. Terms, Recapture and Default: A Thirty (30) year deferred payment loan at 0% interest. Full balance of the SHIP subsidy will be due if the property is sold or transferred, or the property fails to be used for affordable housing during the thirty year term. The City may impose a reverter provision at the end of the term if it is found to be in the best interest of City to maintain the affordable housing beyond the affordability period. Additionally, if the building is sold after the tenth year of the affordability ep riod but prior to the extinction of the affordability period, in addition to the full repayment of the SHIP loan, part of the equity produced by the sale shall be also reimbursed to the City as follows: If the unit is sold between the eleventh and twentieth year, 50% of the profit shall be paid to the City; if the units is sold between the twenty-first and thirtieth year, 30% of the profit. The City's interests will be secured through the execution of a mortgage and note as well as a Restrictive Covenant delineating the affordability period and terms. f. Recipient Selection Criteria: All recipients of assistance must meet the eligibility requirements as stipulated in the applicable Florida Statutes, SHIP Rule, and this Plan. Applicants will be selected from a waiting list on a first come, first ready basis. According to the SHIP Program regulations, 30% of the total number of recipients of assistance must be very low income applicants; 30% can be low-income applicants, and the balance will be assigned to moderate income applicants. g. Sponsor Selection Criteria: See Section I (P) of this Plan. h. Additional Information: Mobile homes and trailers are not eligible for this strategy. Eligible housing must be located within the corporate limits of Miami Beach. All prospective housing units must be either vacant or owner-occupied at the time of initial purchase. F. Workforce Housing: a. Summary of the Strategy: Acquisition/Rehabilitation of multifamily buildings to provide rental units to Essential Service Personnel. Down payment, closing costs and rehabilitation assistance will be also provided to Essential Service Personnel (as defined in Section I (Q) of this Plan) for the purchase of scattered housing that will be occupied as their primary residence. -16- City of Miami Beach LHAP Rehabilitated units and newly-constructed housing utilizing SHIP funds must include at least four (4) of the following preen strategies in order to promote environmentally sustainable housing: 1) Energy conservation (including Envelope and Equipment) 2) Water conservation 3) Preservation of wildlife habitat 4) Healthy environment 5) Durability (including sustainable materials) 6) Access and transportation Further guidance is provided via Green Home Certification, Schedule A, Version 5.0 by the Florida Green Building Coalition, Inc. b. Fiscal Years Covered: 2010/11, 2011/12 and 2012/13 c. Income Categories to be served: For the segment of SHIP funding in the project, the Program will serve eligible persons/households that are very low, low, or moderate income (up to 120% AMI). Other funding sources will be also available to applicants at or below 120% AMI. See Section I (L) of this Plan. Income categories for services provided under other funding sources, could be up to 140% of Area Media Income or as determined by the criteria of such sources. d. Maximum award is noted on the Housing Delivery Goals Charts: $40,000 Terms, Recapture and Default: A Thirty (30) year deferred payment loan at 0% interest. Full balance of the SHIP subsidy will be due if the property is sold or transferred, or the property fails to be used for affordable housing during the thirty year term. The City may impose a reverter provision at the end of the term if it is found to be in the best interest of City to maintain the affordable housing beyond the affordability period. Additionally, if the building is sold after the tenth year of the affordability ep riod but prior to the extinction of the affordability period, in addition to the full repayment of the SHIP loan, part of the equity produced by the sale shall be also reimbursed to the City as follows: If the unit is sold between the eleventh and twentieth year, 50% of the profit shall be paid to the City; if the units is sold between the twenty-first and thirtieth year, 30% of the profit. The City's interests will be secured through the execution of a mortgage -17- City of Miami Beach LHAP and note as well as a Restrictive Covenant delineating the affordability period and terms. Recipient Selection Criteria: All recipients of SHIP assistance must meet the eligibility requirements as stipulated in applicable Florida Statutes, SHIP Rule, and this Plan. Applicants will be selected from a waiting list on a first come, first ready basis. According to the SHIP Program regulations, 30% of the total number of recipients of assistance must be very low income applicants; 30% may be low-income applicants, and the balance will be assigned to moderate income applicants. g. Sponsor Selection Criteria: See Section I (P) of this Plan. Additional Information: Mobile homes and trailers are not eligible for this strategy. Eligible housing must be located within the corporate limits of the City of Miami Beach. All prospective housing units must be either vacant or owner-occupied at the time of initial purchase. G. Foreclosure Prevention Strategv: Summary of the Strategv: Provision of one-time assistance to assist income-eligible homeowners at risk of foreclosure as a result of delinquency or default of their mortgage payments if such default was caused by unforeseen circumstances such as loss of income, divorce, medical issues, special assessment (i.e. 40-year certification, roof replacement construction, or rehabilitation), etc. Participation in housing and credit counseling will be required for households receiving this assistance and participants must demonstrate capacity to sustain the housing if they receive this assistance. Assistance can only be provided for SHIP eligible activities. b. Fiscal Years Covered: 2010/11, 2011/12 and 2012/13 c. Income Categories to be served: Eligible persons/households that are very low, low or moderate income. See Section I (L) of this Plan. d. Maximum award is noted on the Housing Delivery Goals Charts: 10 000 e. Terms, Recapture and Default: A Fifteen (15) year deferred payment loan at 0% interest. Full balance of the SHIP subsidy will be due if the property is sold or transferred. In the event that property is refinanced within 12 months of the expiration of the affordability period, and the refinance includes acash-out of equity the City shall be reimbursed using the following formula: -18- City of Miami Beach LHAP Dollar Amount of Lien multiplied by (Number of Months Remaining on Lien//Total Lien Periodl =Reimbursement Amount The City's interests will be secured through the execution of a mortgage and note as well as a Restrictive Covenant delineating the affordability period and terms. f. Recipient Selection Criteria: All recipients of SHIP assistance must meet the eligibility requirements as stipulated in applicable Florida Statutes SHIP Rule, and this Plan. Applicants will be selected from a waiting list on a first come, first ready basis. According to the SHIP Program regulations, 30% of the total number of recipients of assistance must be very low income applicants 30% may be low-income applicants, and the balance will be assigned to moderate income applicants. g. Sponsor Selection Criteria: See Section I (P) of this Plan. h. Additional Information: Housing at risk of foreclosure must be located within the corporate limits of the City of Miami Beach. Assistance can only be provided for eligible expenses. III. LHAP INCENTIVE STRATEGIES In addition to Strategy A and Strategy B listed below, list all incentives as provided in 420.9076(4) FS. A. Name of the Strategy: Expedited Permitting Permits as defined in s. 163.3164(7) and (8) for affordable housing projects are expedited to a greater degree than other projects. a. Established policy and procedures: This incentive gives priority to designated affordable housing projects when scheduling pre-design conferences with relevant City agencies including, but not limited to: Fire, Planning and Zoning, Building, Historic Preservation, and the Office of Real Estate, Housing and Community Development. Also, when the plans are ready for permitting, first priority is given; further, the City has developed a form to identify the projects reviewed by the Office of Real Estate, Housing & Community Development. The incentive was enacted by administrative action on February, 1997. 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. -19- City of Miami Beach LHAP a. Established policy and procedures: 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 Real Estate, Housing & Community Development. The Office of Real Estate, Housing and Community Development may present proposed legislation to applicable City boards and committees for their review as they may impact housing. The incentive was enacted by administrative action on February 1997. -20- City of Miami Beach LHAP Exhibit A ADMINISTRATIVE BUDGET -20- City of Miami Beach LHAP Exhibit B TIMELINE -21- City of Miami Beach LHAP Exhibit C HOUSING DELIVERY GOALS -22- City of Miami Beach LHAP Exhibit D CERTIFICATION PAGE -23- City of Miami Beach LHAP Exhibit E ADOPTING RESOLUTION -24- City of Miami Beach LHAP Exhibit F PROGRAM INFORMATION SHEET -25-