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Resolution 2022-32280 RESOLUTION NO. 2022-32280 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY MANAGER TO ALLOCATE FY 22/23 STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM FUNDS, IN THE AMOUNT OF $505,842, AS FOLLOWS: (1) $353,258 TO THE FIRST TIME HOMEBUYER PROGRAM AND HOMEOWNER REHABILITATION PROGRAM; (2) $102,000 TO THE LOTTIE APARTMENTS REHABILITATION PROJECT; AND (3) $50,584 TO THE SHIP PROGRAM ADMINISTRATIVE COSTS; AND FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE CITY INTERDEPARTMENTAL AGREEMENTS AND OTHER AGREEMENTS WITH SUB-RECIPIENTS OF THE SHIP PROGRAM FUNDS. WHEREAS, the City receives funding from the Florida Housing Finance Corporation (FHFC)for the State Housing Initiatives Program (SHIP); and WHEREAS, the State Housing Initiatives Partnership (SHIP) Act, created pursuant to §§ 420.907-420.9079, Florida Statutes (1992), and Rule Chapter 67-37, Florida Administrative Code, the "SHIP Program Rule", require local governments to develop a one to three-year Local Housing Assistance Plan (LHAP) outlining how funds will be used; and WHEREAS, on June 22, 2022, the Mayor and City Commission approved the 2022- 2025 LHAP via Resolution No. 2022-32187; and WHEREAS, FHFC notified the City of the FY 22 SHIP allocation, in the amount of $505,842, that will become available after October and will be disbursed in multiple payments over the course of several months; and WHEREAS, the Administration recommends allocating these SHIP funds to the following approved activities: (1) $353,258 toward purchase assistance with rehabilitation and homeowner rehabilitation; (2) $102,000 for the Lottie Apartments rehabilitation project; and (3) $50,584 toward administration; and WHEREAS, the City will publish a public notice on August 28, 2022, with a public comment period from August 28, 2022 through September 12, 2022; and WHEREAS, the Administration recommends the authorizing of the City Manager to execute City interdepartmental agreements and other agreements with sub-recipients related to the disbursement of these SHIP program funds. 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 authorize the City Manager to allocate FY 22/23 State Housing Initiative Partnership (SHIP) program funds, in the amount of $505,842, as follows: (1) $353,258 to the First Time Homebuyer Program and Homeowner Rehabilitation; (2) $102,000 to the Lottie Apartments Rehabilitation Project; and (3) $50,584 to the SHIP Program Administration; and further authorize the City Manager and City Clerk to execute City interdepartmental agreements and other agreements with sub-recipients of the SHIP program funds. PASSED and ADOPTED this 8 day of /016 6e✓ , 2022. ATTEST: DAN GELBER, MAYOR %%%%it,a �, RAFA EE. GRANADO CITY CLERK SEP 2 1 2022 % INCORPORATED.' Vic_ APPROVED AS TO FORM & LANGUAGE & R EXECUTION City Attorneyk----1 D Resolutions C7 K MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: September 14, 2022 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,APPROVING AND AUTHORIZING THE CITY MANAGER TO ALLOCATE FY 22/23 STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM FUNDS, IN THE AMOUNT OF $505,842, AS FOLLOWS: (1)$353,258 TO THE FIRST TIME HOMEBUYER PROGRAM AND HOMEOWNER REHABILITATION PROGRAM; (2) $102,000 TO THE LOTTIE APARTMENTS REHABILITATION PROJECT; AND (3) $50,584 TO THE SHIP PROGRAM ADMINISTRATIVE COSTS; AND FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE CITY INTERDEPARTMENTAL AGREEMENTS AND OTHER AGREEMENTS WITH SUB-RECIPIENTS OF THE SHIP PROGRAM FUNDS. RECOMMENDATION The Administration recommends approving the Resolution. BACKGROUND/HISTORY The State Housing Initiatives Partnership Program (SHIP), administered through the Florida Housing Finance Corporation (FHFC), was established in 1992 by the William E. Sadowski Affordable Housing Act to stimulate the production of affordable housing statewide. SHIP Program funds are derived from documentary stamp levies on real estate transactions and held in the SHIP Program Trust Fund. Annually, FHFC allocates SHIP program funds among participating jurisdictions on a formula basis. SHIP program funds serve to increase access to affordable housing for income-eligible participants. Entitlement communities receiving SHIP funds are required to produce and file a Local Housing Assistance Plan (LHAP)which governs each community's use of SHIP funds. On June 22, 2022,the Mayor and Commission approved the FY 2022-2025 LHAP via Resolution 2022-32187. Subsequently, FHFC notified the City of 2022-2023 funding allocation in the amount of$505,842. The SHIP Program is governed by Florida Statute 420.9075. There are several program set-asides that must be met with each funding allocation: • At least 65 percent of the funds must be reserved for home ownership for eligible persons. • At least 75 percent of the funds must be reserved for construction, rehabilitation, or emergency repair of affordable, eligible housing. Page 382 of 1700 • At least 30 percent of the funds deposited into the local housing assistance trust fund must be reserved for awards to very-low-income persons (up to 50% AM I); and at least an additional 30 percent of the funds deposited into the local housing assistance trust fund must be reserved for awards to low-income persons(up to 80%AM I). • A minimum of 20 percent of the SHIP allocation must be used to serve persons with special needs as defined in 420.0004 Florida Statutes. • Up to 25%of allocation can be reserved for rental development or rental assistance. ANALYSIS The Administration recommends the following allocation summary: SHIP Funds FY22 SHIP Allocation $505,842 ACTIVITY/PROJECT AMOUNT Rental Development-Phase 2 of the Lottie Apartments Rehabilitation Project $102,000 Purchase Assistance with Rehabilitation and H omeowner Rehabilitation $353,258 Administration(10%of allocation) $50,584 The Administration identified a funding shortfall for Phase Il of the rehabilitation project at the City owned affordable housing property Lottie Apartments. The funding allocated to the Lottie Rehabilitation Project will assist with meeting the required special needs set-aside. The remaining funding will be allocated to assist prospective homebuyers and homeowners seeking assistance with down payment or home repairs, respectively. There are 106 prospective applicants pending submission of documents for program eligibility. To meet funding set-asides the City recommends the following: Strategies Very-Low Income Units Low Income Units Moderate Income Units 1 1 2 Purchase Assistance with Rehabilitation (up to$93,000 per unit) (up to$60,000 per unit) (up to$50,000 per unit) 2 Owner-Occupied Rehabilitation (up to$50,000 per unit) 3 Rental Development (up to$40,000 per units) Public notice of this funding allocation will be advertised from August 28,2022 with a public comment period of August 28 through September 12, 2022. SUPPORTING SURVEY DATA Not Applicable FINANCIAL INFORMATION FY22/23 SHIP Funding in the amount of$505,842. CONCLUSION The Administration recommends approval of the FY 2022-2023 SHIP funding allocation. Page 383 of 1700 Applicable Area Not Applicable Is this a"Residents Right Does this item utilize G.O. to Know" item, pursuant to Bond Funds? City Code Section 2-14? No No Strategic Connection Mobility-Support affordable, compatible workforce housing. Legislative Tracking Housing and Community Services ATTACHMENTS: Description o Resolution Page 384 of 1700