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HomeMy WebLinkAbout2004-25513 Reso RESOLUTION NUMBER 2004-25513 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE ATTACHED STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM AGREEMENT BETWEEN THE CITY AND THE MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC), PROVIDING $565,134 IN SHIP PROGRAM FUNDS FROM FISCAL YEAR 2002/03 TO CONTINUE A SCATTERED- SITE HOME OWNERSHIP PROGRAM FOR INCOME-ELIGIBLE HOME BUYERS, IN ACCORDANCE WITH THE SHIP PROGRAM RULE AND THE CITY'S LOCAL HOUSING ASSISTANCE PLAN; FURTHER APPROVING AND ADOPTING AN AMENDMENT TO THE CITY'S LOCAL HOUSING ASSISTANCE PLAN UPDATING THE MAXIMUM PURCHASE PRICE AND ASSISTANCE LIMITS, IN THE AMOUNTS SET FORTH IN THIS RESOLUTION, IN ACCORDANCE WITH THE SHIP PROGRAM RULE, FOR SUBMISSION TO THE FLORIDA HOUSING FINANCE CORPORATION. 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 to stimulate the production of housing through the State Housing Initiatives Partnership (SHIP) Program; and WHEREAS, on March 14, 2001, the Mayor and City Commission approved and adopted a Local Housing Assistance Plan for Fiscal Years 2001102, 2002/03, and 2003/04, respectively, by Resolution No. 2001-24447, pursuant to the requirements of the Act and the SHIP Program Rule issued by the Florida Housing Finance Corporation; and WHEREAS, the City issued a Notice of Funding Availability (NOF A) on October 9, 2003, pursuant to the City's adopted Local Housing Assistance Plan; and WHEREAS, the Administration now requests that the attached SHIP Program Agreement be approved by the Mayor and City Commission and executed by the Mayor and City Clerk; and WHEREAS, the maximum purchase price for housing activities with assistance from the SHIP Program, as established by the United States Department of Treasury and provided by the Florida Housing Finance Corporation, are specified in the City of Miami Beach Local Housing Assistance Plan; and WHEREAS, Section 420.9075, Florida Statutes, was amended during the 2000 Legislative Session to permit each local government to establish a maximum purchase price for housing activities assisted under the SHIP Program, based on local studies utilizing methodology approvedN T:\AGENDA\2004IMar1704IConsenIISHIP NOFA Comm Reso.doc by the Florida Housing Finance Corporation; and WHEREAS, the Florida Housing Finance Corporation contracted Florida New Business Report to do an independent study, as an alternative to the U.S. Department of Treasury price limits; and WHEREAS, the independent study more accurately reflects an appropriate maximum purchase price for housing activities assisted under the SHIP Program in the City of Miami Beach, than those previously established in 1996 by the U. S. Department of Treasury; and WHEREAS, the Florida Housing Finance Corporation has provided the City with updated Miami MSA (Miami-Dade County) Average Purchase Price Limits of$199,177 fornewhomes, and $163,487 for existing homes for housing activities assisted under the SHIP Program, as determined by the aforementioned study using methodology approved by the Florida Housing Finance Corporation; and WHEREAS, the aforestated price limits must be approved by Resolution of the local government body; and WHEREAS, updating of the assistance limit to $40,000, per unit, in accordance with the SHIP Program Rule, must also be approved by Resolution of the local government body; and WHEREAS, accordingly, the City wishes to amend its adopted Local Housing Assistance Plan to update the SHIP Program maximum purchase price to $199,177 for new homes, and $163,487 for existing homes, and the assistance limit to $40,000, per unit. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Clerk are authorized to execute the attached State Housing Initiatives Partnership (SHIP) Program Agreement between the City and Miami Beach Community Development Corporation, which provides SHIP Program funds, in the amount of $565,134 from Fiscal Year 2002/03; and further amending the City's Local Housing Assistance Plan, approving and adopting updated maximum purchase prices and assistance limits, in the amounts set forth in this Resolution, in accordance with the SHIP Program Rule, for submission to the Florida Ho s'ng Finance Corporation. Passed and adopted this 17th day of Ma ch , 004. ATTEST: MAYOR ~~ p~~ CITY CLERK APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION T:\AGENDA\2004\Mar1704IConsentISHIP NOFA Comm Rese,doc AilI /Jff)1IL-=- ~ - ( -Oc.r ~ w P8I8 --- ----.-.------ ------- - - n__________~0~~~~6::~:~ ~~~C;A~Y_____J ~ Condensed Title: A Resolution providing $565,134 from the SHIP Program NOFA for FY 2002/03 to Miami Beach Community Development Corporation (MBCDC) to continue a rehabilitation component for the Scattered-Site Home Ownership Program in accordance with the SHIP Program Rule, and further, amending the City's Local Housing Assistance Plan updating the maximum purchase price and assistance limit. Issue: Shall the City provide $565,134 in SHIP Program funds to assist income-eligible home buyers with the rehabilitation, down payment assistance, closing costs, and home ownership counseling in accordance with the SHIP Program Rule. And further, shall the Local Housing Assistance Plan be amended to update the maximum purchase price and assistance limit. Item Summa /Recommendation: The funds from fiscal year 2002/03 were utilized to issue a Notice of Funding Availability (NOFA) in the amount of $565,134 on October 9, 2003. The NOFA was advertised in both The Miami Herald and in the Art Deco Tropical. In addition, notification of the NOFA was provided to interested housing providers via direct mailing. On November 10, 2003, the City received only one proposal from the Miami Beach Community Development Corporation (MBCDC) requesting $565,134. The SHIP Program funds will be used to provide rehabilitation, down payment assistance, and closing cost assistance to a minimum of 14 units (based on a maximum allocation of funds per unit of $40,000) and provide home ownership opportunities to income-eligible home buyers with annual earnings at or below 120 percent of area median income ($40,440) for a one-person household, including City employees, by June 30, 2005. Under the terms of this agreement, no SHIP funds are provided for administrative costs, MBCDC may only receive a developer fee which is not to exceed 10% of the value of the rehabilitation and .5% of the appraised value of each unit (which historically averages less than $2,000 per unit). The Administration suspects that this may be one of the reasons for the lack of interest from housin roviders to artici ate in this ro ram. Adviso Board Recommendation: On December 5, 2003, the Loan Review Committee recommended that MBCDC be funded $565,134 in SHIP Pro ram funds from FY 2002/03. Financial Information: Source of Amount Account Approved Funds: 1 565,134 152.5721 2 SHIP 3 4 ,Finance Dept. Total Ci Clerk's Office Le islative Trackin Vivian P. Guzman Si n-Offs: Department Director City Manager T:\AGENDA \2004\Mar1704\Consenl\SHIP NOF A Commission Summary. doc Agenda Item Date C7C- 3-/7-01 CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.miamibeachfl.gov To: From: Subject: COMMISSION MEMORANDUM Mayor David Dermer and Date: March 17,2004 Members of the City Commission Jorge M. Gonzalez \ . "'-./ City Manager 0 V'" D A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE ATTACHED STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM AGREEMENT BETWEEN THE CITY AND THE MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC), PROVIDING $565,134 IN SHIP PROGRAM FUNDS FROM FISCAL YEAR 2002/03 TO CONTINUE A SCATTERED-SITE HOME OWNERSHIP PROGRAM FOR INCOME-ELIGIBLE HOME BUYERS, IN ACCORDANCE WITH THE SHIP PROGRAM RULE AND THE CITY'S LOCAL HOUSING ASSISTANCE PLAN; FURTHER APPROVING AND ADOPTING AN AMENDMENT TO THE CITY'S LOCAL HOUSING ASSISTANCE PLAN UPDATING THE MAXIMUM PURCHASE PRICE AND ASSISTANCE LIMITS, IN THE AMOUNTS SET FORTH IN THIS RESOLUTION, IN ACCORDANCE WITH THE SHIP PROGRAM RULE, FOR SUBMISSION TO THE FLORIDA HOUSING FINANCE CORPORATION. ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANALYSIS The State Housing Initiatives Partnership (SHIP) Program, administered through the Florida Housing Finance Corporation, was established by the 1992 William E. Sadowski Affordable Housing Act to stimulate the production of housing statewide. SHIP Program funds are derived from documentary stamp levies on real estate transactions. Annually, the Florida Housing Finance Corporation allocates SHIP Program funds among participating jurisdictions on a formula basis. The City has participated in the SHIP Program since fiscal year 1995/96. As required by the Florida Housing Finance Corporation, on March 14,2001, the City adopted a new Local Housing Assistance Plan for State fiscal years 2001/02, 2002/03 and 2003/04, which serves as the guidelines to utilize SHIP Program funds for rehabilitation of scattered-site units to provide home ownership opportunities. The City received a total of $623,574 of SHIP Program funds for fiscal year 2002/03, which includes an allocation of $575,474, plus $17,841 in program income and $30,259 in recaptured funds. Ten (10) percent of each fiscal year allocation and five (5) percent of program income are utilized for administrative costs associated with the Program. Commission Memorandum March 17, 2004 Page 2 of 3 In accordance with the City's Local Housing Assistance Plan, the City utilized $58,439 for administrative costs from the $623,574 SHIP Program funds allocated to the City. The balance of funds from fiscal year 2002/03 were utilized to issue a Notice of Funding Availability (NOFA) in the amount of $565,134 on October 9,2003. The NOFA was advertised in English in The Miami Herald and in Spanish in the Art Deco Tropical. In addition, notification of the NOFA was provided to interested housing providers via direct mailing. The NOFA sought an experienced housing provider to utilize SHIP Program funds for rehabilitation of scattered-site dwelling units to provide home ownership opportunities for eligible home buyers. On November 10, 2003, the City received only one proposal from the Miami Beach Community Development Corporation (MBCDC) proposing to utilize the SHIP funds to continue the rehabilitation component of its successful Scattered-Site Home Ownership Program. The amount of their request was $565,134. In accordance with the City's Local Housing Assistance Plan, the SHIP Program funds will be used to provide rehabilitation, down payment assistance, and closing cost assistance to a minimum of 14 units (based on a maximum allocation of funds per unit of $40,000) in order to provide home ownership opportunities to income-eligible home buyers with annual earnings at or below 120 percent of area median income ($40,440) for a one-person household, including City employees, by June 30, 2005. Properties to be acquired by the participants are selected on an ongoing and scattered-site basis. Eligible participants enter into a lottery system which determines their order in the waiting list. Concurrently, as part of this program, home ownership counseling will be provided to a minimum of 60 income-eligible participants. Under the terms of this agreement, no SHIP funds are provided to MBCDC for administrative costs, MBCDC may only receive a developer fee which is not to exceed 10% of the value of the rehabilitation and .5% of the appraised value of each unit (which historically averages less than $2,000 per unit). The Administration suspects that this may be one of the reasons for the lack of interest from housing providers to participate in this program. The Scattered-Site Home Ownership Program also utilizes funds leveraged by MBCDC from the Miami-Dade County's Documentary Surtax Program and from the federal HOME Program. These funds are utilized to provide down payment assistance to participants in the form of second and third mortgages. In accordance with the terms of the NOF A, the Housing and Community Development Division staff reviewed the proposal and submitted it to the Loan Review Committee (LRC). On December 5, 2003, the LRC reviewed the proposal and recommended to the Mayor and City Commission that MBCDC be funded in the amount of $565,134 from fiscal year 2002/03. Since 1996, MBCDC has successfully operated a rehabilitation componentfortheir Scattered-Site Home Ownership Program with funding from the City's SHIP Program. To date, 129 units have been acquired and rehabilitated through the program including 11 units acquired by City employees participating in the program. On March 14, 2001, the City adopted its current Local Housing Assistance Plan (Plan) for State fiscal years 2001/02, 2002/03 and 2003/04. In accordance with the SHIP Program Rule, the maximum purchasing price and assistance limit may be updated as necessary by amending the Plan. The Florida Housing Finance Corporation has provided the City with updated Miami MSA (Miami-Dade County) Average Purchase Price Limits of $199,117 for new homes and $163,487 for existing homes (previously the respective figures were $158,855 for new homes and $148,466 for existing homes); therefore, the Plan is being amended to incorporate these figures. Simultaneously, the Plan is also being amended to update the assistance limit to a maximum of $40,000 allocation of funds per unit, which was previously set at $32,259 back in 1996. Commission Memorandum March 17, 2004 Page 3 of 3 The Administration recommends that the Mayor and City Commission of the City of Miami Beach, Florida, adopt a resolution authorizing the Mayor and City Clerk to execute the attached State Housing Initiatives Partnership (SHIP) Program Agreement between the City and Miami Beach Community Development Corporation, which provides SHIP Program funds in the amount of $565,134 from fiscal year 2002/03 to continue a scattered-site home ownership program for income- eligible home buyers in accordance with the SHIP Program Rule and the City's Local Housing Assistance Plan; further, amending the City's Local Housing Assistance Plan updating the maximum purchase price and assistance limits in accordance with the SHIP Program Rule, for submission to the Florida Housing Finance Corporation. RCMN~/JR/MDC/TNU T:\AGENDA\2004\Mar1704\ConsentlSHIP NOFA Commission Memo - REV,doc