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2017-29929 ResolutionRESOLUTION NO. 2017-29929 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING THE TECHNICAL REVISIONS TO THE STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM LOCAL HOUSING ASSISTANCE PLAN (LHAP); SAID REVISIONS INCREASING THE AMOUNT OF ASSISTANCE PROVIDED TO ELIGIBLE PARTICIPANTS FOR THE FISCAL YEARS 2013/2014 THROUGH 201515/2016 SHIP PROGRAM FUNDS, AS REQUIRED BY THE SHIP PROGRAM ACT, PURSUANT TO SECTIONS 420.907 - 420.9079, FLORIDA STATUTES; AUTHORIZING EXECUTION OF ANY NECESSARY CERTIFICATIONS BY THE MAYOR AND THE CITY CLERK; 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, allocating 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, Sections 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, the Mayor and City Commission adopted Resolution No. 2013-28178, approving and adopting the City's LHAP for Fiscal Years 2013/2014 through 2015/2016 pursuant to the requirements of the Act and the SHIP Program Rule, issued by the Florida Housing Finance Corporation (FHFC); and WHEREAS, the Mayor and City Commission adopted Resolution No. 2016-29364, approving and adopting the City's LHAP for FY 2016/2017 through 2018/2019, pursuant to the requirements of the Act and the SHIP Program Rule, issued by the Florida Housing Finance Corporation (FHFC); and WHEREAS, the SHIP Act requires local governments to establish strategies for the use of SHIP funds and the maximum funds allowable for each strategy therein; and WHEREAS, housing market conditions have caused home purchase prices to increase to a level that precludes extremely -low, very low and low-income individuals and families from purchasing properties; and WHEREAS, the SHIP Program requires the City to provide at least 30 percent of its program funds allocation to assist very low-income participants; and an additional 30 percent of Program funds to assist low-income participants to remain compliant; and WHEREAS, the City of Miami Beach LHAP strategy for providing homebuyer down payment assistance is limited to a maximum of $40,000 per moderate -income household, $60,000 per low-income and very low-income household, and $100,000 per extremely low-income household; and WHEREAS, the City's LHAP strategy for providing homeowner rehabilitation assistance is limited to a maximum of $40,000 per household, regardless of income level; and WHEREAS, the City wishes to raise the maximum amount of homebuyer down payment assistance to $50,000 per moderate -income household, $100,000 per low-income and very low- income household, and $150,000 per extremely- low-income household; and WHEREAS, the City wishes to raise the maximum amount of homeowner rehabilitation assistance to $70,000 per household, regardless of income level; and WHEREAS, the City wishes to amend the LHAP in the rehabilitation housing strategy, to reflect that the City can be subordinate to the additional lenders with the condition that the homeowner can make timely payments of loan obligations; and WHEREAS, the City wishes to amend the LHAP in the multi -family housing strategy to reflect the maximum award amount to $40,000 per unit, as it is not clarified in the current LHAP; and WHEREAS, the increased levels of financial assistance and technical revisions require an amendment to the City's LHAP. 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 technical revisions to the State Housing Initiatives Partnership (SHIP) Program Local Housing Assistance Plan (LHAP); said revisions increasing the amount of assistance provided to eligible participants for the Fiscal Years 2013/2014 through 2015/2016 Ship Program funds, as required by the Ship Program Act, pursuant to Sections 420.907 - 420.9079, Florida Statutes; authorizing execution of any necessary certifications by the Mayor and the City Clerk; and further authorize the Administration to submit the amended LHAP to the Florida Housing Finance Corporation (FHFC) for its review and approval. Passed and adopted this o2& day of glff ATTEST: 7 2017. YAR RAFAEL E. GRANADO, CI \ d 0 �trrr .yF t) iNC,ORFI GRATED APPROVED AS TO FORM & LANGUAGE & FOR EXE UTION Pvr I.1Jlllf/✓ C Attorney ye Dote MIAMI BEACH Resolutions - C7 U COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: July 26, 2017 SUBJECT A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING THE TECHNICAL REVISIONS TO THE STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM LOCAL HOUSING ASSISTANCE PLAN (LHAP); SAID REVISIONS INCREASING THE AMOUNT OF ASSISTANCE PROVIDED TO ELIGIBLE PARTICIPANTS FOR THE FISCAL YEARS 2013/2014 THROUGH 2015/2016 SHIP PROGRAM FUNDS, AS REQUIRED BY THE SHIP PROGRAM ACT, PURSUANT TO SECTIONS 420.907 - 420.9079, FLORIDA STATUTES; AUTHORIZING EXECUTION OF ANY NECESSARY CERTIFICATIONS BY THE MAYOR AND THE CITY CLERK; AND FURTHER AUTHORIZING THE ADMINISTRATION TO SUBMIT THE AMENDED LHAP TO THE FLORIDA HOUSING FINANCE CORPORATION (FHFC) FOR ITS REVIEW AND APPROVAL. RECOMMENDATION Approve the resolution. ANALYSIS The State Housing Initiatives Partnership (SHIP) program, founded in 1993, provides funds to eligible local governments as an incentive to create partnerships that produce and preserve affordable homeownership and multifamily housing. The program was designed to serve very low-, low- and moderate -income families. SHIP funds are distributed on an entitlement basis to all 67 counties and 52 Community Development Block Grant (CDBG) entitlement cities in Florida. SHIP dollars may be used to fund emergency repairs, new construction, rehabilitation (meeting the standards of Chapter 553, Florida Statutes), down payment and closing cost assistance, impact fees, construction and gap financing, mortgage buy -downs, short-term acquisition of property for affordable housing, matching dollars for Federal housing grants and programs, homeownership counseling and other activities as required by legislative action. Funds are allocated on a population -based formula. The minimum allocation is $350,000 per county and, when available, funds are disbursed at least quarterly to eligible communities as documentary stamp revenues are deposited into the Local Government Housing Trust Fund. The targeted populations for program service are households with Area Median Incomes (AMI) that are categorized as * Very -low (at or below 50% AMI ); Page 1015 of 2495 • Low (at or below 80% AMI); and • Moderate (at or below 120%AMI) For initial participation in the SHIP Program, a Local Government must: a. Establish a Local Housing Assistance Plan (LHAP) by ordinance. b. Submit the LHAP to Florida Housing Finance Corporation (FHFC) and receive approval. c. Within 12 months, an amendment to the LHAP must be adopted to incorporate Local Housing Incentive Strategies. The Local Housing Incentive Strategies must be recommended by the Affordable Housing Advisory Committee. d. Within 24 months of adopting the Local Housing Incentive Strategies, amend the land development regulations or establish local policies and procedures, as needed, to implement the incentive strategies. e. Encourage the involvement of appropriate public and private sector partners to form a partnership in order to combine resources to reduce housing costs. In order to meet compliance of disbursement of funds, municipalities must meet the following targeting requirement of Funds: a. A minimum of 65% of the allocation, plus recaptured funds, must be spent on eligible homeownership activities. b. A minimum of 75% of the allocation, plus recaptured funds, must be spent on eligible construction/rehab activities. c. At least 30% of funds from all SHIP sources must be reserved for very low-income households (up to 50% of median income). d. An additional 30% of funds from all SHIP sources may be reserved for low-income households (up to 80% of median income). e. The remaining funds may be reserved for households up to140% of median income. f. No more than 5% of SHIP funds may be used for administrative expenses. Funding cycles for the SHIP Program begin July 1 and run through June 30. Entitlement communities must follow the Housing Strategies listed in their respective LHAP, utilize the incentive strategies and meet the income distribution ratios. The City of Miami Beach is currently expending allocated funds for FY14/15, FY15/16 and FY16/17. The program is administered by staff in the Office of Housing and Community Services (HCS). The current LHAP for the funding cycle FY14/15 and FY 15/16 delineates the following strategies: • Owner -Occupied Rehabilitation • Disaster Mitigation Recovery • New Construction • Down Payment/Closing Costs and Rehabilitation • Rental Housing Development Each of these categories have maximum award amounts that are tiered by income limits or reflect the local housing market demand. The strategies mentioned above currently have the following maximum awards: • Owner -Occupied Rehabilitation - $40,000 • Disaster Mitigation Recovery - $40,000 • New Construction - $40,000 • Down Payment/Closing Costs and Rehabilitation- $60,000 for Very Low and Low -Income Persons and $40,000 for Moderate Income Persons Page 1016 of 2495 • Rental Housing Development - $40,000 The LHAP for FY16/17,17/18 and 18/19 increased the maximum award amounts in every category, as approved by FHFC and this was also adopted by City resolution 2016-29663. The current maximum award amounts for the housing strategies are the following: • Owner -Occupied Rehabilitation- maximum award $70,000 • Disaster Mitigation Recovery- maximum award $40,000 • New Construction- maximum award $40,000 • Down Payment/Closing Costs and Rehabilitation $50,000 for Moderate -Income; 100,000 for Low- and Very Low -Income; $150,000 for Extremely Low -Income • Rental Housing Development- $40,000 per unit After having difficulty expending funds in the rehabilitation and purchase assistance strategies, HCS staff determined it was necessary to increase the amounts to create greater opportunities for timely expenditure and incentivize the purchase of homes in the fluctuating housing market. The City requested an extension for September 30, 2017 to assure that the pending cases for rehabilitation assistance were fully completed. The State granted the extension. The City also requested to increase award limits to $50,000 per moderate -income household, $100,000 per low- income and very low-income household and $150,000 per extremely low-income households for FY13/14, FY14/15 and FY 15/16. These technical revisions were also approved by the State. The deadline for encumbrance of FY 14/15 funds is June 30, 2017. With the increased award amounts, the City will ensure that all remaining funds, including for FY 16/17, are fully expended before the expenditure deadline of June 30, 2018. The City also requested technical assistance with a plan to meet expenditure deadlines. It was determined that the increased award amounts would be beneficial for the beneficiaries and would ensure that the City meets its expenditure deadlines of September 2017 and June 2018. During the technical assistance appointment, it was also determined that the LHAP for FY14/15 and 15/16 needed further clarification language within the following strategies: • Rental Development- the maximum award amount is currently $40,000 but does not clarify whether the award amount is per total project or per unit. If this is not clarified, it can result in a finding with FHFC. As such, we are clarifying that funds are per unit. • Purchase Assistance- The terms of the loan need to be clarified, whereas the City will not be in a third or fourth position, and will only be subordinate to the primary lender. Currently, this action is not delineated. • Owner -Occupied Rehabilitation- The terms of the loan need to be clarified to stipulate that the City will be subordinate to existing loans only as long as the Owner demonstrates the ability to make timely payments. With these changes to the LHAP, the City avoids ambiguity that can lead to audit findings and the possible inability to meet timely expenditure deadlines. It also reinforces the program's intention to assist as many income -eligible households meeting program requirements. With increased maximum awards, the eligible applicants can make substantial, needed repairs and focus on acquiring affordable property that they can sustain over time. CONCLUSION The increased levels of financial assistance and the new strategy for the use of SHIP funds, require technical revisions and amendment to the City's LHAP as noted herein. The City Manager Page 1017 of 2495 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 to increase affordable housing opportunities 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)/Request for Applications (RFA), 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. If no funding is available due to a waiting list, no notice of funding availability is required. Discrimination: In accordance with the provisions of ss.760.20-760.37, it is unlawful to discriminate on the basis of race, creed, religion, color, age, sex, 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 • Legal counseling • Tenant counseling • 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 services will be provided on a group and individual basis covering the following topics: the home buying process; finding money for a down -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. -4- Page 1022 of 2495 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: $391,153 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. Income eligibility will be defined as follows: Very Low Income (up to 50% AMI), Low Income (up to 80% AMI), and Moderate Income (up to 120% AMI). 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- Page 1023 of 2495 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 Office of Real Estate, Housing & Community Development is the City department responsible for carrying out the strategies under the SHIP Local Housing Assistance Plan. -6- Page 1024 of 2495 The City may 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) or Request for Applications (RFA) to solicit administrative services from not-for- profit and for-profit builders/developers to participate in the program. Through this 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) Experience in providing strong construction management practices, quality workmanship, and quality materials (2) Experience in performing all applicant selection and income certification processes in accordance with local, state, and federal regulations (3) Experience in government reporting compliance (4) Total project cost (5) Total number of units (6) Leveraging (7) Experience in providing homeowners with HUD -Certified Homeownership Training/Counseling (8) Preference will be given to eligible sponsors that employ staff from the Welfare Transition Program The Office of Real Estate, Housing and Community Development will review all responses to the NOFA/RFA to ensure compliance with the outlined requirements; as well as compliance with Florida Statutes and Administrative Code, 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/RFA. 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- Page 1025 of 2495 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). R. Initiatives for Green Building Design and Techniques In accordance with Section 420.9075(3)(d) 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 rehabilitation or constructing of homes: a. Water conserving appliances and fixtures (toilets, showerheads, faucets) b. Energy Star appliances c. Efficient lighting on both interior and exterior d. Upgrading of insulation materials (attics, walls, roofing) e. Tankless water heaters f. Air conditioning with higher SEER rating -8- Page 1026 of 2495 II. LHAP HOUSING STRATEGIES: A. Housing Rehabilitation: a. Summary of the Strategy: Rehabilitation of single family, 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, 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. b. Fiscal Years Covered: 2013/2014, 2014/2015 and 2015/2016 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: $40,000 e. Terms, Recapture and Default: Fifteen (15) year deferred, forgivable loan, at zero percent (0%) interest. The loan will be forgiven at the end of the term. Full balance due if property is sold, rented, refinanced or the property fails to be the owner's primary residence during the fifteen year 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. -9- Page 1027 of 2495 The City's interests will be secured through the execution of a subordinate mortgage and note as well as a Restrictive Covenant delineating the recapture 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. g. Sponsor Selection Criteria: See Section I (P) of this Plan. 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 Mitigation Recovery: a. Summary of the 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 Govemment, counties and eligible municipalities and approved by Florida Housing Finance Corporation. b. Fiscal Years Covered: 2013/2014, 2014/2015 and 2015/2016 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: $40,000 Page 1028 of 2495 - 10 - e. Terms, Recapture and Default: Fifteen (15) year deferred, forgivable loan, at zero percent (0%) interest. The loan will be forgiven at the end of the term. Balance due if property is sold, rented, refinanced or the property fails to be the owner's primary residence during the fifteen year 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. The City's interests will be secured through the execution of a subordinate mortgage and note as well as a Restrictive Covenant delineating the recapture 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. g. Sponsor Selection Criteria: See Section I (P) of this Plan. 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: a. Summary of the 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 development, and hard and soft construction costs. b. Fiscal Years Covered: 2013/2014, 2014/2015 and 2015/2016 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: $40,000 e. Terms, Recapture and Default. Deferred payment, zero percent (0%) interest, construction loan to the developer. No payments will be required during the construction phase. Once construction is completed and the unit(s) is sold the SHIP subsidy will be passed on to the new homeowner Page 1029 of 2495 in the form of a fifteen (15) year deferred, forgivable loan, at zero percent (0%) interest. The loan will be forgiven at the end of the term. Full balance due if property is sold, rented, refinanced or the property fails to be the owner's primary residence during the fifteen year 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. The City's interests will be secured through the execution of a subordinate mortgage and note as well as a Restrictive Covenant delineating the recapture 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. g. Sponsor Selection Criteria: See Section I (P). 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. Down Payment/Closing Costs and Rehabilitation: a. Summary of the 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 years. b. Fiscal Years Covered: 2013/2014, 2014/2015 and 2015/2016 c. Income Categories to be served: Eligible persons/households that are very low, low or moderate income. See Section I (L). d. Maximum award: $60,000 for Very Low and Low -Income Persons and $40,000 for Moderate Income Persons e. Terms, Recapture and Default: Fifteen (15) year deferred, forgivable loan, at zero percent (0%) interest. The loan will be forgiven at the end of the term. FuII balance due if property is sold, rented, refinanced or the - 12 - Page 1030 of 2495 property fails to be the owners primary residence during the fifteen year 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. 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 profit shall be paid to the City; if the unit is sold between the 11th and 15th year, 25% of the profit shall be paid to the City. The City's interests will be secured through the execution of a subordinate mortgage and note as well as a Restrictive Covenant delineating the recapture 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. Sponsor Selection Criteria: See Section I (P) of this Plan. 9. 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. E. Rental Housing Development: a. Summary of the Strategy: Funds will be provided to developers to be used to finance the costs associated with hard and soft rehabilitation costs of rehabilitating vacant multi -family buildings. b. Fiscal Years Covered: 201312014, 2014/2015 and 2015/2016 c. Income Categories to be served: Eligible persons/households that are very low, low or moderate income. See Section I (L) of this Pian. d. Maximum award: $40,000 Page 1031 of 2495 -13- 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, if the recipient decides to convert the rental development to all market rate development. The reverter clause will not be used if the recipient volunteers to keep a negotiated percentage of the units affordable to very low, low and moderate -income households. Additionally, if the building is sold after the tenth year of the affordability period but prior to the end of the affordability period, in addition to the full repayment of the SHIP loan, part of the equity produced by the sale shall also be reimbursed to the City as follows: • If the property is sold within five (5) years of purchase, the City is entitled to profits in the amount of the percentage of assistance related to the cost of the project, multiplied by three (3). • If the property is sold within ten (10) years of purchase, the City is entitled to profits in the amount of the percentage of assistance related to the cost of the project, multiplied by two (2). • If the property is sold within fifteen (15) years of purchase, the City is entitled to profits in the amount of the percentage of assistance related to the cost of the project, multiplied by one (1). 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. g. Sponsor Selection Criteria: See Section I (P) of this Plan. h. Additional Information: Assisted properties must be located within the City of Miami Beach corporate limits. -14- Page 1032 of 2495 III. LHAP INCENTIVE STRATEGIES 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. 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. -15- Page 1033 of 2495 Exhibit A ADMINISTRATIVE BUDGET -16- Page 1034 of 2495 ADMINISTRATIVE BUDGET FOR EACH FISCAL YEAR LHAP 2013 Exhibit A 67-37.005(1), F.A.C. Effective Date: 11/09 City of Miami Beach Estimated Allocation for Calculating: $21,895 Fiscal Year 2013/2014 Salaries and Benefits $2,189 Office Supplies and Equipment $0 Travel Perdiem Workshops, etc $0 Advertising $0 Other $0 Total $2,189 Fiscal Year 2014/2015 Salaries and Benefits $2,189 Office Supplies and Equipment $0 Travel Perdiem Workshops, etc $0 Advertising $0 Other $0 Total $2,189 Fiscal Year 2015/2016 Salaries and Benefits $2,189 Office Supplies and Equipment $0 Travel Perdiem Workshops, etc $0 Advertising $0 Other $0 Total $2,189 Page 1035 of 2495 Exhibit A Exhibit B TIMELINE Page 1036 of 2495 TIMETABLE FOR STATE FISCAL YEAR 2013/2015 1,0111010.11 1111111111111111 ;dEINIMMENIONIMMINNIHENNA11111111111101111111111111111111111111IMENIEE 0. i Page 1037 of 2495 4) Submit Annual Report to FHFC (September 15th) Exhibit C HOUSING DELIVERY GOALS -18- Page 1038 of 2495 ! 2 ■ ! z 0 0 0 z O E ` i || _ )--00000 0 0 ,II 0 0 0 0. 0 0 0 0 0 0 y . 2 | 2| I \ 5 0 00000-- f } Amsndmant: Flscal Yr. Closeout L 50.001 8888 8888a ■asa■: } " | ` |1101011101111.1. | || 111101 II| '■ f | | | § | z : | | | || _ I| li @ |] }�11» |||- II!! ! ■ 2| §§§§ 11° ; . |.. | | |�..'..-- DEUVERY GOAI i ASSISTANCE PULI -| °�°°i SII° || I §#§§ =I!& ' IA IAi § ■■■■ ■©-s ,� 000 - 131 1 1 ■kk II■ 1111 � . �t 1 |§|f = 10111111 1 i! 0111111 IP RENTAL STRATEGIES if'.! n!' !}�. � } ! \| Parcentage Construction/Rah !£ \'-\ !k111� �!P1iHIII Allocation Breakdown Moderate Income TOTAL a z 0 0 a x O U 0 0 U. x 0 0 0 0 0 0 0 .- ii 0 0 0 0 0 0 ip- I 888: O� B o o 8 O 8 o 8 O 8- O- 5 0 0 0 0 8 0 0 0 0- Hill g- -II e Hi 1 8 8 8 8 8 SO.CC 8 8: 8 8 8 8 8 8= 1 I 0 Percentage Construction/Rob Girt ca.e,aMr POPe.a by alibi, a„ne Tar COMM., Ata, e., dole, by Anneal Aeeballen i ' T IE FISCAL YEAR: 2014/201 5 E:Umated Funds:I $2t.ees 0 j Sm W 88,8 I I IHJ HOUSING DELIVERY GOALS CHAR STRATEGIES FOR THE LOCAL HOUSING ASSISTANCE PLAN FOR STA -._. __ __.__ _-_ _... _ ... (Name of Local Government: I 1 1 O g O q 11 I 8 G � 8 M N N HhIIh''IHH 0 0 0 el „"i i I ) O O q O' O 1111 j I Allocation Breakdown Amount Very -LAW Income 319.700.00 Low Income 5000 Moderate Income 60.00 TOTAL Menem/ 3 ogoII of� h HOME OWNERSHIP STRATEGIES (strategy tele must be same as the title used in Plan t•ut LIIIL:! ]ij Subtotal (Non -Home Ownership) # w av . . e1 i41 ..f T443 z & 0 0 ■ 0 CI 0 . t | °° 00000 ƒ| 000000 .7 ||§§�H �o,�._��zI0000oNiiiI E 2 ! §§§:.2: 1... ) ! _ aeaa8###: frr1IIiI ` ! \ 1 X 1Prgadsd Program Ingo n. ( SO OO Pax Amount Program Income For Admirer ... | | | | " � » | f 1 | |�� 1 | 1 | ' 20IIF / |j■ ,# a i | ! ill F. } | ffl � rt_ !!!!IIIII !Iff!I � ||� — II! g■K|§,,0 -- ,| °°°H ��� |\ °i |§§2 || | #K§§ 2'`| !jIIIIII 0 HOME OWNERSHIP STRATEGIES (strategy Nus must W gams as tM INN used in plea teat. RENTAL STRATEGIES 1111 triNan wao wwWUON) L iNatenSJ \�.\\ . 9BANPLIOTAL_ .a. w.Y. a i r........ww-.+w Percentage ConstructioniR.hj �'�� !: Allocation Breakdown J !|- f! |1111111! MOdarate Income TOTAL .a |•; � e 1I, 1 . 2,9 Exhibit D CERTIFICATION PAGE Page 1042 of 2495 .2u/3- 28/7' LHAP Exhibit D 2013 67-37.005(1), F.A.C. CERTIFICATION TO FLORIDA HOUSING FINANCE CORPORATION Name of Local Government: City of Miami Beach (1) The local government will advertise the availability of SHIP funds, if available, pursuant to Florida Statutes. (2) All SHIP funds will be expended in a manner which will insure that there will be no discrimination on the basis of race, creed, religion, color, age, sex, familial or marital status, handicap, or national origin. (3) A process for selection of recipients for funds has been developed. (4) The eligible municipality or county has developed a qualification system for applications for assistance. (5) Recipients of funds will be required to contractually commit to program guidelines. (6) The Florida Housing Finance Corporation will be notified promptly if, at any time, the local government (or interlocal entity) will be unable to comply with the provisions the plan. (7) The Local Housing Assistance Plan shall provide for the expenditure of SHIP funds within 24 months following the end of the State fiscal year in which they are received. (8) The plan conforms to the Local Government Comprehensive Plan, or that an amendment to the Local Government Comprehensive Plan will be initiated at the next available opportunity to insure conformance with the Local Housing Assistance Plan. (9) Amendments and Technical Revisions to the approved Local Housing Assistance Plan shall be provided to the Corporation within 21 days after adoption. (10) The trust fund shall be established with a qualified depository for all SHIP funds as well as moneys generated from activities as program income. (11) Amounts on deposit in the local housing assistance trust fund shall be invested as permitted by law. (12) The local housing assistance trust fund shall be separately stated as a special revenue fund in the local governments audited financial statements, copies of the audits will be forwarded to the Corporation by June 30 of each calendar year. 1 Page 1043 of 2495 LHAP Exhibit D 2013 67-37.005(1), F.A.C. 13) An interlocal entity shall have its local housing assistance trust fund separately audited for each state fiscal year, and the audit forwarded to the Corporation by June 30. (14) SHIP funds will not be pledged for debt service on bonds or as rent subsidies. (15) Developers receiving assistance from both SHIP and the Low Income Housing Tax Credit (LIHTC) Program shall comply with the income, affordability and other LIHTC requirements. Similarly, any units receiving assistance from other federal programs shall comply with all Federal and SHIP program requirements. (16) Loans shall be provided for periods not exceeding 30 years, except for deferred payment loans or loans that extend beyond 30 years which continue to service eligible persons. (17) Rental units constructed or rehabilitated with SHIP funds shall be monitored annually for 15 years for compliance with tenant income requirements and affordability requirements or as required in Section 420.9075 (3)(e) (18) The Plan meets the requirements of Section 420-907-9079 FS, and Rule Chapter 67-37 FAC, and how each of those requirements shall be met. (19) The provisions of Chapter 83-220, Laws of Florida has not been implemented. (except for Miami Dade County) 4d," itness Chief Elec ed Official or designee V—. itness/13 9-24-/3 Date Matti Herrera -Bower, Mayor Type Name and Title 2 Page 1044 of 2495 APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION Exhibit E ADOPTING RESOLUTION Page 1045 of 2495 RESOLUTION NO. 2013-28178 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING THE CITY OF MIAMI BEACH LOCAL HOUSING ASSISTANCE PLAN (LHAP) FOR THE STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM FOR FISCAL YEARS 2013/2014, 2014/2015, AND 2015/2016, AS REQUIRED BY THE STATE HOUSING INITIATIVES PARTNERSHIP PROGRAM ACT, SUBSECTIONS 420.907 - 420.9079; AUTHORIZING EXECUTION OF THE NECESSARY CERTIFICATIONS BY THE MAYOR AND THE CITY CLERK; AUTHORIZING SUBMISSION OF THE LOCAL HOUSING ASSISTANCE PLAN TO THE FLORIDA HOUSING FINANCE CORPORATION FOR ITS REVIEW AND APPROVAL; AUTHORIZING THE APPROPRIATION OF SHIP PROGRAM FUNDS FOR FISCAL YEARS 2013/2014, 2014/2015 AND 2015/2016 IN AMOUNTS TO BE DETERMINED BY THE STATE OF FLORIDA 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, Chapter 92-317 of Florida Sessions Laws, allocating 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, ss. 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 outlining how funds will be used; and WHEREAS, the SHIP Act requires local governments to establish the maximum SHIP funds allowable for each strategy; and WHEREAS, the SHIP Act further requires local governments to establish an average area purchase price for new and existing housing benefiting from awards made pursuant to the Act; The methodology and purchase prices used are defined in the attached Local Housing Assistance Plan; and WHEREAS, as required by section 420.9075, F.S., it is found 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. 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. Page 1046 of 2495 WHEREAS, on April 10, 2010, pursuant to Resolution No. 2010-27370, the Mayor and City Commission approved and adopted a City of Miami Beach Housing Assistance Plan for Fiscal Years 2010/2011, 2011/2012 and 2012/2013, pursuant to the requirements of the Act and the SHIP Program Rule, issued by the Florida Housing Finance Corporation; and WHEREAS, the Administration has prepared a new Local Housing Assistance Pian, as attached to this Resolution, for Fiscal Years 2013/2014, 2014/2015 and 2015/2016, 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 2013/2014, 2014/2015 and 2015/2016 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 Local Housing Assistance Plan (LHAP) for the State Housing Initiatives Partnership (SHIP) Program for Fiscal Years 2013/2014, 2014/2015 and 2015/2016, as required by the State Housing Initiatives Partnership Program Act, Subsections 420.907 — 420.9079; authorize the execution of the necessary certifications by the Mayor and the City Clerk; authorize submission of the Local Housing Assistance Plan to the Florida Housing Finance Corporation for its review and approval; authorize the appropriation of SHIP Program funds for Fiscal Years 2013/2014, 2014/2015 and 2015/2016 in amounts to be determined by the State of Florida 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 Rules. Passed and adopted this /7 day of ion I ATTEST: , 2013. • .c ' +nco,RD�1f� .�. Y„ ,�� <,•.. 7-• • T AGENDAr20131Apri117li.HAPResolution4-17-2413rmal.doc APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION Page 1047 of 2495 Exhibit F PROGRAM INFORMATION SHEET - 21 - Page 1048 of 2495 LHAP Exhibit F 2013 67-37.005(1), F.A.C. STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM PROGRAM INFORMATION SHEET The following information must be furnished to the Corporation before any funds can be disbursed. Local Government City of Miami Beach Chief Elected Official Matti Herrera -Bower, Mayor Address 1700 Convention Center Drive, Miami Beach, FL 33139 SHIP Administrator Maria Ruiz, Interim Director Address 1700 Convention Center Drive, Miami Beach, FL 33139 Telephone 305-673-7260 EMAIL mariaruiz@miamibeachfl.gov Alternate SHIP Contact Richard Bowman Telephone 305-673-7260, ext. 6893 EMAIL richardbowman@miamibeachfl.gov Interlocal Agreement (list other local governments in interlocal) NA Local Government Employer Federal ID # 59-6000372 Disbursement (list bank account information if changed from previous) No Change Other Information Please attach this form as Exhibit F and submit along with your completed LHAP. Page 1049 of 2495 m iv\ BEACH CITY OF MIAMI BEACH 2013 LHAP FINAL FISCAL YEARS COVERED 2013/2014, 2014/2015 and 2015/2016 Prepared by: City of Miami Beach Office of Real Estate, Housing & Community Development 1700 Convention Center Drive Miami Beach, Florida 33139 Page 1050 of 2495 Table of Contents Program Description 3 A. Name of Participating Local Government B. Purpose of 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 Q. Essential Service Personnel R. Initiatives for Green Building Design and Techniques LHAP Housing Strategies 9 A. Housing Rehabilitation B. Disaster Mitigation Recovery C. New Construction D. Down Payment/Closing Cost and Rehabilitation E. Rental Housing Development LHAP Incentive Strategies 15 Exhibits 16 A. Administrative Budget B. Timelines by Program Year C. Housing Delivery Goals Chart by Program Year D. Certification E. Adopting Resolution F. Program Information Sheet Page 1051 of 2495 I. PROGRAM DESCRIPTION: A. Name of the Participating Local Government and Interlocal (if Applicable): 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 very low, low, and moderate -income households; to expand production of and preserve affordable housing; and to further the housing element of the Miami Beach Comprehensive Plan specific to affordable housing. C. Fiscal years covered by the Plan: 2013/2014 2014/2015 2015/2016 D. Governance: The SHIP Program is established in accordance with Section 420.907-9079, Florida Statutes and Chapter 67-37 Florida Administrative Code. The SHIP Program does further the housing element of the City of Miami Beach Comprehensive Plan. Cities and Counties must at all times be in compliance with these applicable statutes and rules. E. Local Housing Partnership: 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) in its efforts to expand affordable housing opportunities. 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 partnership and using public and private funds to reduce the cost of housing. -3- Page 1052 of 2495 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 to increase affordable housing opportunities 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)/Request for Applications (RFA), 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. If no funding is available due to a waiting list, no notice of funding availability is required. Discrimination: In accordance with the provisions of ss.760.20-760.37, it is unlawful to discriminate on the basis of race, creed, religion, color, age, sex, 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 • Legal counseling • Tenant counseling • 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 services will be provided on a group and individual basis covering the following topics: the home buying process; finding money for a down -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. -4- Page 1053 of 2495 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: $391,153 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. Income eligibility will be defined as follows: Very Low Income (up to 50% AMI), Low Income (up to 80% AMI), and Moderate Income (up to 120% AMI). 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- Page 1054 of 2495 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 Office of Real Estate, Housing & Community Development is the City department responsible for carrying out the strategies under the SHIP Local Housing Assistance Plan. -6- Page 1055 of 2495 The City may 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) or Request for Applications (RFA) to solicit administrative services from not-for- profit and for-profit builders/developers to participate in the program. Through this 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) Experience in providing strong construction management practices, quality workmanship, and quality materials (2) Experience in performing all applicant selection and income certification processes in accordance with local, state, and federal regulations (3) Experience in government reporting compliance (4) Total project cost (5) Total number of units (6) Leveraging (7) Experience in providing homeowners with HUD -Certified Homeownership Training/Counseling (8) Preference will be given to eligible sponsors that employ staff from the Welfare Transition Program The Office of Real Estate, Housing and Community Development will review all responses to the NOFA/RFA to ensure compliance with the outlined requirements; as well as compliance with Florida Statutes and Administrative Code, 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/RFA. 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- Page 1056 of 2495 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). R. Initiatives for Green Building Design and Techniques In accordance with Section 420.9075(3)(d) 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 rehabilitation or constructing of homes: a. Water conserving appliances and fixtures (toilets, showerheads, faucets) b. Energy Star appliances c. Efficient lighting on both interior and exterior d. Upgrading of insulation materials (attics, walls, roofing) e. Tankless water heaters f. Air conditioning with higher SEER rating -8- Page 1057 of 2495 II. LHAP HOUSING STRATEGIES: A. Housing Rehabilitation: a. Summary of the Strategy: Rehabilitation of single family, 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, 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. b. Fiscal Years Covered: 2013/2014, 2014/2015 and 2015/2016 c. Income Categories to be served: Eligible persons/households that are very low, low, or moderate income. See also Section 1 (L) of this Plan. d. Maximum award: $70,000 $40,000 e. Terms, Recapture and Default: Fifteen (15) year deferred, forgivable loan, at zero percent (0%) interest. The loan will be forgiven at the end of the term. Full balance due if property is sold, rented, refinanced or the property fails to be the owner's primary residence during the fifteen year 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. -9- Page 1058 of 2495 The City's interests will be secured through the execution of a subordinate mortgage and note as well as a Restrictive Covenant delineating the recapture 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. g. Sponsor Selection Criteria: See Section I (P) of this Plan. 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 Mitigation Recovery: a. Summary of the 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: 2013/2014, 2014/2015 and 2015/2016 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: $40,000 Page 1059 of 2495 - 10 - e. Terms, Recapture and Default: Fifteen (15) year deferred, forgivable loan, at zero percent (0%) interest. The loan will be forgiven at the end of the term. Balance due if property is sold, rented, refinanced or the property fails to be the owner's primary residence during the fifteen year 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. The City's interests will be secured through the execution of a subordinate mortgage and note as well as a Restrictive Covenant delineating the recapture 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. g. Sponsor Selection Criteria: See Section I (P) of this Plan. 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: a. Summary of the 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 development, and hard and soft construction costs. b. Fiscal Years Covered: 2013/2014, 2014/2015 and 2015/2016 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: $40,000 e. Terms, Recapture and Default. Deferred payment, zero percent (0%) interest, construction loan to the developer. No payments will be required during the construction phase. Once construction is completed and the unit(s) is sold the SHIP subsidy will be passed on to the new homeowner Page 1060 of 2495 in the form of a fifteen (15) year deferred, forgivable loan, at zero percent (0%) interest. The loan will be forgiven at the end of the term. Full balance due if property is sold, rented, refinanced or the property fails to be the owner's primary residence during the fifteen year 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. The City's interests will be secured through the execution of a subordinate mortgage and note as well as a Restrictive Covenant delineating the recapture 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. g. Sponsor Selection Criteria: See Section I (P). 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. Down Payment/Closing Costs and Rehabilitation: a. Summary of the 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 years. b. Fiscal Years Covered: 2013/2014, 2014/2015 and 2015/2016 c. Income Categories to be served: Eligible persons/households that are very low, low or moderate income. See Section I (L). d. Maximum award: 1. $50,000 (Moderate -Income) 2. $100,000 (Low and Very Low -Income) 3. $150,000 (Extremely Low -Income) $60,000 for Very Low and Low Income Persons and $10,000 for - 12 - Page 1061 of 2495 1 Moderate Income Perconn.. e. Terms, Recapture and Default: Fifteen (15) year deferred, forgivable loan, at zero percent (0%) interest. The loan will be forgiven at the end of the term. Full balance due if property is sold, rented, refinanced or the property fails to be the owner's primary residence during the fifteen year 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. 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 profit shall be paid to the City; if the unit is sold between the 11th and 15th year, 25% of the profit shall be paid to the City. The City's interests will be secured through the execution of a subordinate mortgage and note as well as a Restrictive Covenant delineating the recapture 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. Sponsor Selection Criteria: See Section I (P) of this Plan. g. 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. E. Rental Housing Development: a. Summary of the Strategy: Funds will be provided to developers to be used to finance the costs associated with hard and soft rehabilitation costs of rehabilitating vacant multi -family buildings. b. Fiscal Years Covered: 2013/2014, 2014/2015 and 2015/2016 c. Income Categories to be served: Eligible persons/households that are Page 1062 of 2495 - 13 - very low, low or moderate income. See Section I (L) of this Plan. d. Maximum award: $40,000/unit 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, if the recipient decides to convert the rental development to all market rate development. The reverter clause will not be used if the recipient volunteers to keep a negotiated percentage of the units affordable to very low, low and moderate -income households. Additionally, if the building is sold after the tenth year of the affordability period but prior to the end of the affordability period, in addition to the full repayment of the SHIP loan, part of the equity produced by the sale shall also be reimbursed to the City as follows: • If the property is sold within five (5) years of purchase, the City is entitled to profits in the amount of the percentage of assistance related to the cost of the project, multiplied by three (3). • If the property is sold within ten (10) years of purchase, the City is entitled to profits in the amount of the percentage of assistance related to the cost of the project, multiplied by two (2). • If the property is sold within fifteen (15) years of purchase, the City is entitled to profits in the amount of the percentage of assistance related to the cost of the project, multiplied by one (1). 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. g. Sponsor Selection Criteria: See Section I (P) of this Plan. h. Additional Information: Assisted properties must be located within the City of Miami Beach corporate limits. - 14 - Page 1063 of 2495 III. LHAP INCENTIVE STRATEGIES 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. 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. - 15 - Page 1064 of 2495 Exhibit A ADMINISTRATIVE BUDGET Page 1065 of 2495 Exhibit B TIMELINE Page 1066 of 2495 Exhibit C HOUSING DELIVERY GOALS Page 1067 of 2495 Exhibit D CERTIFICATION PAGE Page 1068 of 2495 Exhibit E ADOPTING RESOLUTION Page 1069 of 2495 Exhibit F PROGRAM INFORMATION SHEET -21 - Page 1070 of 2495