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HomeMy WebLinkAbout2004-25537 Reso RESOLUTION NO. 2004-25537 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING THE ATTACHED LOCAL HOUSING ASSISTANCE PLAN FOR THE STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM FOR FISCAL YEARS 2004/05, 2005/06, AND 2006/07, AS REQUIRED BY THE STATE HOUSING INITIATIVES PARTNERSHIP PROGRAM ACT, SUBSECTIONS 120.907-420.9079, FLORIDA ADMINISTRATIVE CODE; AUTHORIZING THE NECESSARY CERTIFICATIONS BY THE MAYOR AND THE CITY CLERK; AUTHORIZING SUBMISSION OF THE LOCAL HOUSING ASSISTANCE PLAN FOR REVIEW AND APPROVAL BY THE FLORIDA HOUSING FINANCE CORPORATION; AUTHORIZING THE APPROPIATION OF SHIP PROGRAM FUNDS FOR FISCAL YEAR 2004/05, IN THE AMOUNT OF $429,255; FISCAL YEAR 2005/06, IN THE AMOUNT OF $429,255; AND FISCAL YEAR 2006/07, IN THE AMOUNT OF $429,255; OR SUCH FINAL ALLOCATION AMOUNTS, AS ADJUSTED BY THE FLORIDA HOUSING FINANCE CORPORATION; AND AUTHORIZING THE APPROPRIATION OF ANY INTEREST ACCRUED THEREON, FOR ELIGIBLE ACTIVITIES UNDER THE SHIP PROGRAM RULES. WHEREAS, the State of Florida enacted the William E, Sadowski Affordable Housing Act (the Act) on July 7, 1992, allocating a portion of new and existing documentary stamp taxes on deeds to local governments for development and maintenance of housing through the State Housing Initiatives Partnership (SHIP) Program; and WHEREAS, the Act requires that in order to qualify for funding, local governments prepare and submit a Local Housing Assistance Plan outlining how the funds will be used; and WHEREAS, on June 6, 2001, the Mayor and City Commission approved and adopted a City of Miami Beach Housing Assistance Plan for Fiscal Years 2001/02, 2002/03 and 2003/04 by Resolution No. 2001-24447 pursuant to the requirements ofthe Act and the SHIP Rule issued by the Florida Housing Finance Corporation; and WHEREAS, it is found that 5% of the Local Housing Distribution is insufficient to adequately pay the administrative costs of the SHIP Program and the cost of administering the program may not exceed 10% of the local housing distribution; and WHEREAS, the Administration has prepared a new Local Housing Assistance Plan, as attached to this Resolution, for Fiscal Years 2004/05, 2005/06, and 2006/07, in order to qualify to receive annual allocations of SHIP Program funds for eligible housing activities, T:\AGENDA\2004\Apr1404\Consent\SHIP Local Housing Plan Reso.doc WHEREAS, this Resolution authorizes the appropriation of SHIP Program funds for Fiscal Year 2004/05, in the amount of $429,255, Fiscal Year 2005/06, in the amount of $429,255, and Fiscal Year 2006/07, in the amount of$429,255; 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 Rule SHIP Program Rules. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve and adopt the attached Local Housing Assistance Plan for the State Housing Initiatives Partnership (SHIP) Program for Fiscal Years 2004/05, 2005/06 and 2006/07; authorize the necessary certifications by the Mayor and the City Clerk; authorize submission of the Local Housing Assistance Plan for review and approval by the Florida Housing Finance Corporation; authorize the appropriation of SHIP Program funds for Fiscal Year 2004/05, in the amount of $429,255, Fiscal Year 2005/06, in the amount of $429,255, and Fiscal Year 2006/07, in the amount of $429,255; 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 Rule SHIP Program Rules. Passed and adopted this 14th day of April, 2004. ATTEST: ~~~~ CITY CLERK APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION ~M IJM~J _ t.j-S- OV ~ Date T:\AGENDA\2004\Apr1404\Consent\smp Local Housing Plan Reso.doc CITY OF MIAMI BEAcH COMMISSION ITEM SUMMARY m Condensed Title: A Resolution approving and adopting the SHIP Program Local Housing Assistance Plan for Fiscal Years 2004/05, 2005/6 and 2006/07, Issue: Shall the City adopt a resolution approving the SHIP Program Local Housing Assistance Plan for FYs 2004/05,2005/06 and 2006/07. Item Summary/Recommendation: The administration recommends that the Mayor and the City Commission adopt a resolution approving the SHIP Program Local Housing Assistance Plan for FYs 2004/05, 2005/06 and2006/07 as required by the SHIP Program Rule. Advisory Board Recommendation: On March 19, 2004, the Loan Review Committee recommended approval of the SHIP Program Local Housing Assistance Plan for FYs 2004/05, 2005/06 and 2006/07. Financial Information: Finance Dept. Source of Funds: SHIP Program City Clerk's Office Legislative Tracking: I Vivian P. Guzman n-Ofts: Department Director T:\AGENDA\2004\Apr1404\ConsentlSHIP Local Housing Plan Summary. doc AGENDA ITEM DATE C7/f !.f - ;tf-(}f/ CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miami-beach.fl.us COMMISSION MEMORANDUM NO. TO: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez ~ .--/" City Manager U ,yv-O DATE: April 14, 2004 FROM: SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING THE ATTACHED LOCAL HOUSING ASSISTANCE PLAN FOR THE STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM FOR STATE FISCAL YEARS 2004/05, 2005/06, AND 2006/07; AUTHORIZING THE NECESSARY CERTIFICATIONS BY THE MAYOR AND THE CITY CLERK; AND AUTHORIZING SUBMISSION OF THE LOCAL HOUSING ASSISTANCE PLAN FOR REVIEW AND APPROVAL BY THE FLORIDA HOUSING FINANCE CORPORATION; FURTHER, AUTHORIZING THE APPROPIATION OF SHIP PROGRAM FUNDS FOR FISCAL YEAR 2004/05, IN THE AMOUNT OF $429,255; AND FISCAL YEAR 2005/06, IN THE AMOUNT OF $429,255; AND FISCAL YEAR 2006/07, IN THE AMOUNT OF $429,255; OR THE FINAL ALLOCATION AMOUNT, AS ADJUSTED BY THE FLORIDA HOUSING FINANCE CORPORATION; AND AUTHORIZING THE APPROPRIATION OF ANY INTEREST ACCRUED THEREON, FOR ELIGIBLE ACTIVITIES UNDER THE RULE OF THE SHIP PROGRAM. ADMINISTRATION RECOMMENDATION Approve the Resolution. ANALYSIS The State Housing Initiatives Partnership (SHIP) Program, administered through the Florida Housing Finance Corporation (FHFC), was established by the 1992 William E. Sadowski Affordable Housing Act (Act) to stimulate the production of housing statewide, SHIP Program funds are derived from documentary stamp levies on real estate transactions. Annually, the FHFC allocates SHIP Program funds among participating jurisdictions on a formula basis, On June 6, 2001, the City approved Resolution 2001-24447 adopting a Local Housing Assistance Plan (Plan) for State fiscal years 2001/02, 2002/03, and 2003/04, This current plan provides for the use of SHIP Program funds for rehabilitation, down payment assistance, closing cost assistance, and Apri/14, 2004 Commission Memorandum SHIP Local Housing Assistance Plan Page 2 of3 homeownership training in relation to a Home Buyer Assistance Program to assist participants with an income of up to 120 percent of area median income (currently $44,280 for a family of one). The current Local Housing Assistance Plan expires on June 30, 2004, The SHIP Program requires that a new Local Housing Assistance Plan (plan) for State fiscal years 2004/05,2005/06, and 2006/07, be adopted by the City and submitted to the FHFC for review and approval by May 2,2004. The Plan is to be implemented on July 1, 2004, and the SHIP Program allocation for the City is estimated to be $429,255 for State fiscal year 2004/05. In accordance with the SHIP Program Rule, ten percent of the annual allocation, plus five percent of any accrued interest, is utilized by the City for program administration, The FHFC will not dispense SHIP Program funds to jurisdictions that do not have an adopted Plan in place. The Administration has prepared the attached three-year Local Housing Assistance Plan covering State fiscal years 2004/05, 2005/06, and 2006/07, utilizing the format required by the FHFC. The proposed Plan incorporates the strategy ofthe current Local Housing Assistance Plan and continues to provide for SHIP Program funds to be used for rehabilitation, down payment assistance, closing cost assistance and home ownership training in relation to a Home Buyer Assistance Program to assist income-eligible participants, As in the current plan, the proposed Plan targets up to 50 percent of the funds to provide assistance to eligible City staff, and teachers from the Miami-Dade Public School System who agree to teach in Miami Beach, earning up to 120 percent ofthe a area median Income, In addition, the proposed Plan incorporates a new strategy providing for the use of SHIP funds towards the rehabilitation of multi-family buildings to be converted into condominium units to be offered through a home buyer program to income-eligible participants. In buildings with ten or less units, all the units will be provided to income-eligible participants in the home buyer program. In buildings with more than ten units, up to forty percent of the units will be provided through the program. The balance of the units will be sold at market rates and any profits realized will be utilized to provide additional homeownership opportunities. Therefore, this strategy is intended to increase the availability of units for the home buyer program while generating additional funding for the program, On March 19,2004, the City's Loan Review Committee reviewed the proposed Local Housing Assistance Plan and recommended that the Mayor and City Commission adopt the Plan. In accordance with the SHIP Program Rule, on Thursday, March 11,2004, the City advertised a 30-day citizen comment period on the Local Housing Assistance Plan. No comments were received by the time the agenda for the City Commission meeting went to print. During the last three years, and under the current Local Housing Assistance Plan, the City successfully utilized all the SHIP Program funds received from the FHFC. SHIP Program funds in April 14, 2004 Commission Memorandum SHIP Local Housing Assistance Plan Page 3 of3 the amount of $1,905,955 were used to provide rehabilitation services for units bought by 54 income-eligible home buyers, of which eleven are City employees. Additionally, the SHIP Program funds were leveraged from the public and private sectors providing an additional $3,602,526, for a total of$5,508,481 in assistance for home ownership opportunities. The annual SHIP Program funding allocations to the City may be adjusted by the FHFC depending on actual documentary stamp tax revenues collected by the State. Hence, the attached Resolution appropriates the amount of SHIP Program funds allocated to the City, or the final allocation amount as adjusted by the FHFC, for fiscal years 2004/05, 2005/06, and 2006/07, plus accrued interest on the funds, for eligible activities under the rules of the SHIP Program. The Administration recommends approval of a Resolution of the Mayor and City Commission of the City of Miami Beach, Florida, approving and adopting the attached Local Housing Assistance Plan (Plan) for the State Housing Initiatives Partnership (SHIP) Program for State fiscal years 2004/05, 2005/06, and 2006/07; authorizing the necessary certifications by the Mayor and the City Clerk; and authorizing submission of the Local Housing Assistance Plan for review and approval by the Florida Housing Finance Corporation; further, authorizing the appropriation of SHIP Program funds for fiscal year 2004/05, in the amount of$429,255; fiscal year 2005/06, in the amount of$429,255; and fiscal year 2006/07, in the amount of $429,255; or the final allocation amount, as adjusted by the Florida Housing Finance Corporation; and authorizing the appropriation of any interest accrued thereon, for IgiEe ctivities under the rules ofthe SHIP Program. " l1.-- JMG . P C/TNU T:\AGENDA \2004\Apr1404lConsentlSlllP Local Housing Plan Memo.doc CITY OF MIAMI BEACH STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM LOCAL HOUSING ASSISTANCE PLAN (LHAP) FOR FISCAL YEARS 2004/05, 2005/06 AND 2006/07 APRIL 14, 2004 For Information Contact: Miguell Del Campillo, Housing Manager Housing and Community Development Division 1700 Convention Center Drive Miami Beach, FL 33139 (305) 673-7260 FAX: 673-7772 II. III. CITY OF MIAMI BEACH State Housing Initiatives Partnership (SHIP) Program Local Housing Assistance Plan State Fiscal Year(s): 2004/05, 2005/06 and 2006/07 Table of Contents PROGRAM DESCRIPTION 2 a, Name of Local Government b. Program Description c. Fiscal Years of Local Housing Assistance Plan d. Public Input in PLAN Development e. Local Support Services 2 2 3 3 3 INTERLOCAL AGREEMENT LOCAL HOUSING PARTNERSHIPS 3 3 a. Local Housing Partnerships Development Description b. Cost Reduction Strategy 3 4 IV. STRATEGIES 4 1. Assistance Strategies 4 A. Rehabilitation B. New Construction C, Closing Costs and Down Payment D. Rehabilitation of Multi-family Buildings/Condominium Conversion 4 7 11 14 Home Ownership Training 16 2. Incentive Strategies 16 V, TIMETABLE FOR EXPENDITURE 18 VI. AFFORDABILlTY 18 a. Home Ownership b. Rental 18 18 VII. ADVERTISEMENT AND OUTREACH 18 a. SHIP Program Availability b. Application Advertisement Period 18 18 VIII. ADMINISTRATIVE EXPENSES 19 a. Program Administration Description b, Administration Percentage c. Administrative Expenditures Breakout d. Consultants 19 19 19 19 IX. Certification Page 20 X. Attachments CITY OF MIAMI BEACH State Housing Initiatives Partnership (SHIP) Program Local Housing Assi~tance Plan. State Fiscal Year(s): 2004/05, 2005/06 and 2006/07 I. PROGRAM DESCRIPTION a, City of Miami Beach b, The City of Miami Beach (City), a municipal corporation established under the laws of the State of Florida has designed this SHIP Housing Assistance Plan (hereafter referred to as the "Plan") to implement Miami Beach's SHIP Housing Assistance Program, pursuant to Sections 420.907 et seq" Florida Statutes. The Program was established to make affordable residential units available to persons with very low-income, low-income, moderate income, and persons with special housing needs. The SHIP Plan details specific strategies intended to increase the availability of decent, safe and affordable housing units by combining public and private resources to establish a local housing partnership which will reduce the cost of housing. During State Fiscal Years 2004/05, 2005/06, and 2006/07, the City of Miami Beach will use 90 percent ofthe SHIP allocation for home ownership activities: new construction (in accordance with the City's adopted Consolidated Plan), housing rehabilitation, emergency repair, down payment assistance, closing cost assistance and/or home ownership training, Simultaneously, at least 75 percent ofthe SHIP allocation will be used to provide funds for construction activities: new construction (in accordance with the City's adopted Consolidated Plan), housing rehabilitation and emergency repair, which may include down payment assistance and/or closing cost assistance to newly constructed units or those receiving rehabilitation within 12 months of closing. The Plan is based on the previous Housing Assistance Plan adopted by the City for Fiscal Years 2001/02, 2002/03, and 2003/2004. The Plan incorporates the provisions and strategies of the previously implemented Housing Assistance Plan, The City of Miami Beach has also adopted a number of development incentives to encourage the development of affordable units within Miami Beach. These incentives have been taken from the Local Housing Incentives Plan and are being incorporated into the Local Housing Assistance Plan as required by Chapter 67 -3 7, Florida Administrative Code, and Section 420.907, et seq" Florida Statutes. The City anticipates that an average of $25,000 of SHIP funds will be used per unit assisted. The amount of the executed sales contract for each unit will not exceed ninety (90) percent of the median area purchase prices for existing and new houses, as established by the U.S. Department of the Treasury, This Plan complies with the requirements of Sections 420,907 et seq., Florida Statutes and Chapter 67-37, Florida Administrative Code and is not governed by an inter-local agreement. 2 c. The Local Housing Assistance Plan will cover state fiscal year(s) 2004/05, 2005/06, and 2006/07. d. The City has adopted a Consolidated Plan as required by U.S. HUD. The Consolidated Plan identifies the City of Miami Beach's overall affordable housing needs and the strategy to address those needs. It provides guidance for the development ofthe strategies proposed under this Local Housing Assistance Plan, as well as other housing plans in effect at any given time. The preparation ofthe Consolidated Plan required an extensive amount of input from all sectors of the population. The City of Miami Beach (City) has consulted with local agencies, for-profit and non-profit organizations and citizens, and social service and housing providers, in order to obtain information on the housing needs in the City. Using this input, the City developed its Consolidated Plan which requires that an annual plan and progress reports be made available for public comment and input. The Local Housing Assistance Plan is consistent with the Consolidated Plan, as well as the Housing Element of the City's Comprehensive Plan. The Plan is based on the previous Housing Assistance Plan adopted by the City for Fiscal Years 2001/02, 2002/03 and 2003/04, The Plan incorporates the provisions and strategies of the previously implemented Housing Assistance Plan, The City worked closely with the designated Community Housing Development Organization (CHDO) in developing its Local Housing Assistance Plan, Also, the following groups active in local housing activities were furnished with a copy ofthe Local Housing Assistance Plan: the Miami Beach Chamber of Commerce, the North Beach Development Corporation (NBDC), Miami Beach Housing Authority (MBHA), and the Miami Beach Community Development Corporation (MBCDC), the City's designated Community Development Housing Organization (CHDO), whose President serves as the Chair of the Affordable Housing Coalition. e. The following support services are available to the residents of affordable housing: youth services, childcare, elder services, health services, home delivery of meals, and employment training. II. INTERLOCAL AGREEMENT (If applicable) Not Applicable III. LOCAL HOUSING PARTNERSHIPS a. The City of Miami Beach has developed housing partnerships with several non-profit and private for-profit housing developers and agencies. The City works closely with the designated Community Housing Development Organizations (CHDO), CDBG sub- recipient organizations, community development corporations, local lenders, realtors, and 3 others, These organizations are encouraged to participate in program activities and to assist in program implementation, The City has also worked closely with the Affordable Housing Coalition, which is composed of local housing providers and activists, b, The City of Miami Beach has implemented measures to reduce the cost of affordable housing. Some of the measures include: allocating funds under City's federally-funded Community Development Block Grant (CDBG) Program and the HOME Investment Partnerships Program to help reduce the cost of funds needed for property improvements; leveraging Miami-Dade County's Documentary Surtax Program to assist in home ownership activities; working with the Florida Power and Light Company to receive rebates for all energy improvements that are eligible under their approved Watt Wise Program for properties rehabilitated under the SHIP program; and leveraging Miami-Dade County's Documentary Surtax Program providing deferred payment loans to prevent additional cost burdens on low and very low income households, IV. STRATEGIES 1. Individual Strategies A. Rehabilitation The City of Miami Beach will implement a multi-year strategy for State FY 2004/05, FY 2005/06 and FY 2006/07, to further the City's goals relative to home ownership opportunities. The City's SHIP Home Ownership Program will help very low, low, and moderate income buyers, and persons with special needs purchase affordable housing in Miami Beach, as follows: at least 30 percent of SHIP funds will be used to produce units that will be for very low income persons earning at or below 50 percent ofthe median income, at least 30 percent of SHIP funds will be used to produce units that will be for low income persons whose income is at or below 80 percent of the median income, and the remaining SHIP funds will be used to produce units for persons at a moderate income level, with earning between 80 percent and 120 percent ofthe median income level. Up to 50 percent of the funds will be targeted to assist program participants who are eligible City of Miami Beach staff or eligible teachers from the Miami-Dade County Public Schools System who agree to teach in the City of Miami Beach. 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. In order to implement this strategy, scattered sites (e.g. condominium units) will be acquired and rehabilitated, by a selected sponsor, thus providing affordable home ownership opportunities as well as improving the City's existing housing stock. 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 that is rehabilitated with SHIP funds must meet all applicable local codes, rehabilitation standards, and ordinances including, but not limited to, zoning ordinances. All projects must comply 4 with the South Florida Building Code, the Miami-Dade County Building Code, and the City of Miami Beach Building Code. Additionally, all projects must comply with all other applicable laws, rules and regulations. The City intends to exercise flexibility in determining whether condominium units for this strategy may be purchased at individual sites or to allow the purchase of several units in one building, not to exceed more than one fifth ofthe units in the building. In general, the City will stress the need for the spatial deconcentration of assisted housing units throughout the City, The City of Miami Beach's Housing and Community Development Division will be the primary agency responsible for carrying out the strategies under the SHIP Housing Assistance Plan. The City anticipates that it will use a sponsor to carry out program activities, In order to identify a sponsor, the City will issue a Competitive Notice of Funding Availability (NOFA) for various not-for-profit and for-profit builders/developers to participate in the program. Through the competitive NOF A'process, the City will ascertain the highest and best use of the funds in accordance with the guidelines outlined in this Plan. Selection criteria will include, but may not be limited to: (1) Ability to provide strong construction management practices and to provide first quality materials, including landscaping if applicable (2) Ability to perform all applicant selection and income certification processes in accordance with local, state, and federal regulations (3) Ability to comply with the City's reporting requirements (4) Total project cost (5) Total number of units (6) Leveraging (7) Ability to conform with the City's plan for spatial deconcentration (8) Ability to provide homeowners with Home Ownership Counseling (9) Ability to provide individualized training to homebuyers on issues such as home maintenance and budgeting (10) Ability to demonstrate that the organization participates in the WAGES and Workforce Development Initiative program The Housing and Community Development Division staff will review all responses to the NOFA to ensure compliance with the requirements of the NOFA as well as the eligibility 5 requirements, as provided in the Florida Statutes, the SHIP Ordinance, Resolutions and this Plan, All eligible applications will be submitted to the City's Loan Review Committee. The Committee will review all applications in accordance with the criteria as outlined in the NOF A. Eligible housing must be located within the corporate limits of Miami Beach, and preferably in one ofthe Community Development Target Areas. Eligible housing must conform to City Zoning requirements regarding use and density permitted (legal variances will be permitted), Manufactured housing, rental housing, and mobile homes shall not be considered eligible housing, All prospective condominium units must either be vacant or owner-occupied at the time of initial purchase, prior to re-sale to eligible SHIP recipients. All potential applicants for the SHIP Home Ownership Program will be screened for income eligibility and homeowner readiness. Applicants will be processed from a waiting list on a first come first ready basis, subject to funding availability and in such manner as to comply with the statutory requirements, Since the City of Miami Beach's SHIP Housing Assistance Program is geared to providing units to very low, low and moderate income persons, the City anticipates it will exceed all SHIP set-aside requirements. Staff will review actual performance data to ensure that adjustments are made as necessary to remain in compliance with income targeting standards. Award of SHIP funds will be in the form of a deferred payment loan secured by a Restrictive Covenant Agreement, or other recorded instrument. The maximum amount of SHIP funds allowable for assistance per unit will be $40,000, Ifthe unit is sold, transferred or ceases to serve as a primary residence, the homebuyer shall return to the City the full SHIP subsidy that enabled the homebuyer to buy the dwelling unit. The assisted unit must be occupied as a principal residence of the Owner, and may not be used as a rental. Use of the property for rental purposes is an event of default. Recapture of SHIP funds used for the rehabilitation of the assisted units will be as follows: assisted units that received under $10,000 will have a recapture period of five (5) years, and units that receive $10,000 or more will have a recapture period often (10) years. Ifthe unit is sold, transferred, rented or refinanced during the recapture period for the rehabilitation assistance, the Owner shall repay to the City the full amount of SHIP subsidy funds at the time of any such sale, transfer, rental or refinancing of the unit. Not withstanding the previous restrictions, the owner shall be allowed to refinance the premises 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 ifthe refinancing will lower the current mortgage payment and/or interest rate. No cash out will be allowed. In the event that title to the unit is transferred, as a result of the death of the Owner to a surviving heir, or any other heir designated by the Owner, and said heir occupies the unit as a principal residence, the household income qualifications requirements shall be waived. However, should an heir fail to occupy the unit as a principal residence within six (6) months 6 from the date ofthe Owner's death, the full amount of SHIP subsidy funds, shall become due and payable to the City within one year from the date of the Owner's death. In order to further ensure the enforcement of this subsection, any and all successors, heirs and assigns herein must obtain the prior written consent of the City Manager prior to the resale of the unit Assisted units that comply with the requirements ofthe HOME rule as HOME eligible units will be utilized as HOME-Match units. When possible, the SHIP funds will be used with: U.S. Department of Housing and Urban Development HOME Program Funds, Community Development Block Grant (CDBG) Funds, other federal and state grant funds, and Miami- Dade County Documentary Surtax Funds. B. New Construction Proposals involving new construction will only be considered in accordance with the City's adopted Consolidated Plan adopted on July 1, 1998. To implement this strategy, new construction of scattered sites units (e.g. condominium units) will be undertaken by a selected sponsor, thus providing affordable home ownership opportunities as well as improving the City's housing stock. The City intends to exercise flexibility in determining whether condominium units for this strategy may be purchased at individual sites or to allow the purchase of several units in one building, not to exceed more than one fifth of the units in the building. In general, the City will stress the need for the spatial deconcentration of assisted housing units throughout the City. The City of Miami Beach will implement a multi-year strategy for State FY 2004/05, FY 2005/06, and FY 2006/07, to further the City's goals relative to home ownership opportunities, The City's SHIP Home Ownership Program will help very low, low, and moderate income buyers, and persons with special needs to purchase affordable housing in Miami Beach as follows: at least 30 percent of SHIP funds will be used to produce units that will be for very low income persons eaming at or below 50 percent ofthe median income, at least 30 percent of SHIP funds will be used to produce units that will be for low income persons whose income is at or below 80 percent of the median income, and the remaining SHIP funds will be used to produce units for persons at a moderate income level earning between 80 percent and 120 percent of the median income level. Up to 50 percent of the funds will be targeted to assist program participants who are eligible City of Miami Beach staff or eligible teachers from the Miami-Dade County Public Schools System who agree to teach in the City of Miami Beach, 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. The City of Miami Beach's Housing and Community Development Division will be the primary agency responsible for carrying out the strategies under the SHIP Housing Assistance Plan, The City anticipates that it will use a sponsor to carry out program activities, 7 In order to identify a sponsor, the City will issue a Competitive Notice of Funding Availability (NOFA) for various not-for-profit and for-profit builders/developers to participate in the program. Through the competitive NOF A process, the City will ascertain the highest and best use ofthe funds in accordance with the guidelines outlined in this Plan. Selection criteria will include, but may not be limited to: (1) Ability to provide strong construction management practices and to provide first quality materials, including landscaping if applicable (2) Ability to perform all applicant selection and income certification processes in accordance with local, state, and federal regulations (3) Ability to comply with the City's reporting requirements (4) Total project cost (5) Total number of units (6) Leveraging (7) Ability to conform with the City's plan for spatial deconcentration (8) Ability to provide homeowners with Home Ownership Counseling (9) Ability to provide individualized training to homebuyer on issues such as home maintenance and budgeting (10) Ability to demonstrate that the organization participates in the WAGES and Workforce Development Initiative program The Housing and Community Development Division staff will review all responses to the NOF A to ensure compliance with the requirements of the NOF A as well as the eligibility requirements, as provided in the Florida Statutes, the SHIP Ordinance, Resolutions and this Plan. All eligible applications will be submitted to the City's Loan Review Committee. The Committee will review all applications in accordance with the criteria as outlined in the NOF A. Eligible housing must be located within the corporate limits of Miami Beach, and preferably in one of the Community Development Target Areas. Eligible housing must conform to City Zoning requirements regarding use and density permitted (legal variances will be permitted). Manufactured housing, rental housing, and mobile homes shall not be considered eligible housing. All prospective condominium units must either be vacant or owner-occupied at the time of initial purchase, prior to re-sale to eligible SHIP recipients. All potential applicants for the SHIP Home Ownership Program will be screened for income 8 eligibility and homeowner readiness, Applicants will be processed from a waiting list on a first come first ready basis, subject to funding availability and in such manner as to comply with the statutory requirements. Since the City of Miami Beach's SHIP Housing Assistance Program is geared to providing units to very low, low and moderate income persons, the City anticipates it will exceed all SHIP set-aside requirements. Staff will review actual performance data to ensure that adjustments are made as necessary to remain in compliance with income targeting standards. Award of SHIP funds will be in the form of a deferred payment loan secured by a Restrictive Covenant Agreement, or other recorded instrument. Ifthe unit is sold, transferred or ceases to serve as a primary residence, the homebuyer shall return to the City the full SHIP subsidy that enabled the homebuyer to buy the dwelling unit. The assisted unit must be occupied as a principal residence of the Owner, and may not be used as a rental. Use ofthe property for rental purposes is an event of default. Recapture of SHIP funds used for the rehabilitation of the assisted units will be as follows: assisted units that received under $10,000 will have a recapture period of five (5) years, and units that receive $10,000 or more will have a recapture period often (10) years. Ifthe unit is sold, transferred, rented or refinanced during the recapture period for the rehabilitation assistance, the Owner shall repay to the City the full amount of SHIP subsidy funds at the time of any such sale, transfer, rental or refinancing of the unit. Notwithstanding the previous restrictions, the owner shall be allowed to refinance the Premises 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 ifthe refinancing will lower the current mortgage payment and/or interest rate. No cash out will be allowed. If the unit is sold, transferred, rented or refinanced during the recapture period, the Owner shall repay to the City the full amount of SHIP subsidy funds at the time of any such sale, transfer, rental or refinancing of the unit. The assisted unit must be occupied as a principal residence ofthe Owner for the duration ofthe term set forth, and may not be used as a rental property during that period. Use of the property for rental purposes is an event of default. In the event that title to the unit is transferred, as a result of the death of the Owner to a surviving heir, or any other heir designated by the Owner, and said heir occupies the unit as a principal residence, the household income qualifications requirements shall be waived. However, should an heir fail to occupy the unit as a principal residence within six (6) months from the date ofthe Owner's death, the full amount of SHIP subsidy funds, shall become due and payable to the City within one year from the date of the Owner's death. In order to further ensure the enforcement of this subsection, any and all successors, heirs and assigns herein must obtain the prior written consent of the City Manager prior to the resale of the unit. Assisted units that comply with the requirements ofthe HOME rule as HOME eligible units will be utilized as HOME-Match units. When possible, the SHIP funds will be used with: 9 u.s. Department of Housing and Urban Development HOME Program Funds, Community Development Block Grant (CDBG) Funds, other federal and state grant funds, and Miami- Dade County Documentary Surtax Funds, 10 c. Closing Costs and Down Payment In order to implement this strategy, Closing Costs and Down Payment Assistance will be made available for the purchase of scattered sites units (e.g, condominium units) undertaken by a selected sponsor, thus providing affordable home ownership opportunities to qualified persons. The City intends to exercise flexibility in determining whether condominium units for this strategy may be purchased at individual sites or to allow the purchase of several units in one building, not to exceed more than one fifth ofthe units in the building. In general, the City will stress the need for the spatial deconcentration of assisted housing units throughout the City, The City of Miami Beach will implement a multi-year strategy for State FY 2004/05, FY 2005/06, and FY 2006/07, to further the City's goals relative to home ownership opportunities. The City's SHIP Home Ownership Program will help very low, low, and moderate income buyers, and persons with special needs purchase affordable housing in Miami Beach, as follows: at least 30 percent of SHIP funds will be used to produce units for very low income persons earning at or below 50 percent of the median income, at least 30 percent of SHIP funds will be used to produce units for low income persons whose income is at or below 80 percent ofthe median income, and the remaining SHIP funds will be used to produce units for persons at a moderate income level earning between 80 percent and 120 percent of the median income level. Up to 50 percent of the funds will be targeted to assist program participants who are eligible City of Miami Beach staff or eligible teachers from the Miami-Dade County Public Schools System who agree to teach in the City of Miami Beach. lfthe 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, The City of Miami Beach's Housing and Community Development Division will be the primary agency responsible for carrying out the strategies under the SHIP Housing Assistance Plan. The City anticipates that it will use a sponsor to carry out program activities. In order to identify a sponsor, the City will issue a Competitive Notice of Funding Availability (NOF A) for various non-profit and for-profit builders/developers to participate in the program, Through the competitive NOF A process, the City will ascertain the highest and best use ofthe funds in accordance with the guidelines outlined in this Plan. Selection criteria will include, but may not be limited to: (1) Ability to Implement Closing Costs and Down payment Assistance Strategy (i.e., staffing, experience, facilities, etc.) (2) Ability to perform all applicant selection and income certification processes in accordance with local, state, and federal regulations 11 (3) Ability to comply with the City's reporting requirements (4) Total project cost (5) Total number of units (6) Leveraging (7) Ability to conform with the City's plan for spatial deconcentration (8) Ability to provide homeowners with Home Ownership Counseling (9) Ability to provide individualized training to homebuyer on issues such as home maintenance and budgeting (10) Ability to demonstrate that the organization participates in the WAGES and Workforce Development Initiative program The Housing and Community Development Division staffwill review all responses to the NOF A to ensure compliance with the requirements of the NOF A as well as the eligibility requirements, as provided in the Florida Statutes, the SHIP Ordinance, Resolutions and this SHIP 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 NOF A. Eligible housing must be located within the corporate limits of Miami Beach, and preferably in one of the Community Development Target Areas, Eligible housing must conform to City Zoning requirements regarding use and density permitted (legal variances will be permitted). Manufactured housing, rental housing, and mobile homes shall not be considered eligible housing. All prospective condominium units must either be vacant or owner-occupied at the time of initial purchase, prior to re-sale to eligible SHIP recipients, All potential applicants for the SHIP Home Ownership Program will be screened for income eligibility and homeowner readiness. Applicants will be processed from a waiting list on a first come first ready basis, subject to funding availability and in such manner as to comply with the statutory requirements. Since the City of Miami Beach's SHIP Housing Assistance Program is geared to providing units to very low, low and moderate income persons, the City anticipates it will exceed all SHIP set-aside requirements. Staff will review actual performance data to ensure that adjustments are made as necessary to remain in compliance with income targeting standards. Award of SHIP funds will be in the form ofa deferred pa)TIlent loan secured by a Restrictive Covenant Agreement, or other recorded instrument. If the unit is sold, transferred or ceases to serve as a primary residence, the homebuyer shall return to the City the full SHIP subsidy 12 that enabled the homebuyer to buy the dwelling unit. The assisted unit must be occupied as a principal residence of the Owner, and may not be used as a rental. Use of the property for rental purposes is an event of default. Recapture of SHIP funds used for the rehabilitation ofthe assisted units will be as follows: assisted units that received under $10,000 will have a recapture period offive (5) years, and units that receive $10,000 or more will have a recapture period often (10) years. If the unit is sold, transferred, rented or refinanced during the recapture period for the rehabilitation assistance, the Owner shall repay to the City the full amount of SHIP subsidy funds at the time of any such sale, transfer, rental or refinancing of the unit. Notwithstanding the previous restrictions, the owner shall be allowed to refinance the Premises without being subject to the provisions set forth therein, so long as the amount ofthe refinancing does not exceed the then outstanding balance of the first mortgage. Subordination will only be approved ifthe refinancing will lower the current mortgage payment and/or interest rate. No cash out will be allowed. In the event that title to the unit is transferred, as a result of the death of the Owner to a surviving heir, or any other heir designated by the Owner, and said heir occupies the unit as a principal residence, the household income qualifications requirements shall be waived. However, should an heir fail to occupy the unit as a principal residence within six (6) months from the date ofthe Owner's death, the full amount of SHIP subsidy funds, shall become due and payable to the City within one year form the date of the Owner's death. In order to further ensure the enforcement of this subsection, any and all successors, heirs and assigns herein must obtain the prior written consent of the City Manager prior to the resale of the unit. In the event that the assisted unit is a HOME-Match unit, then the recapture provisions of the HOME Program shall apply to the SHIP portion of the subsidy in the unit and shall supersede the above recapture provisions. When possible, the SHIP funds will be used with: U.S. Department of Housing and Urban Development HOME Program Funds, Community Development Block Grant (CDBG) Funds, other federal and state grant funds, and Miami- Dade County Documentary Surtax Funds, 13 D. Rehabilitation of Multi-family Buildings for Condominium Conversion In order to implement this strategy, SHIP funds will be made available towards the rehabilitation of vacant multi-family buildings to be converted into condominium units to be offered through a home buyer program to income-eligible participants. In buildings with ten or less units, all the units will be provided to income-eligible participants in the home buyer program. In buildings with more than ten units, up to forty percent of the units will be provided through the program, The balance of the units will be sold at market rates and any profits realized will be utilized to provide additional homeownership opportunities. Sponsors will be required to establish a dedicated account for profits generated by this strategy and reinvestment into new homeownership opportunities. The maximum amount of SHIP funds allowable for rehabilitation per unit will be $40,000, Once the units are rehabilitated they will be offered as condominium units through the home buyer program to income-eligible participants. Up to $40,000 in assistance per unit will be transferred to a home buyer participant in the form of a deferred payment loan secured by a Restrictive Covenant Agreement, or other recorded instrument. Up to 50 percent ofthe funds will be targeted to assist program participants who are eligible City of Miami Beach staff or eligible teachers from the Miami-Dade County Public Schools System who agree to teach in the City of Miami Beach. 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. The City of Miami Beach's Housing and Community Development Division will be the primary agency responsible for carrying out the strategies under the SHIP Housing Assistance Plan, The City anticipates that it will use a sponsor to carry out program activities. In order to identify a sponsor, the City will issue a Competitive Notice of Funding Availability (NOFA) for various not-for-profit and for-profit builders/developers to participate in the program. Through the competitive NOF A process, the City will ascertain the highest and best use of the funds in accordance with the guidelines outlined in this Plan, Selection criteria will include, but may not be limited to: (1) Ability to provide strong construction management practices and to provide first quality materials, including landscaping if applicable (2) Ability to perform all applicant selection and income certification processes in accordance with local, state, and federal regulations (3) Ability to comply with the City's reporting requirements (4) Total project cost (5) Total number of units 14 (6) Leveraging (7) Ability to conform with the City's plan for spatial deconcentration (8) Ability to provide homeowners with Home Ownership Counseling (9) Ability to provide individualized training to homebuyers on issues such as home maintenance and budgeting (10) Ability to demonstrate that the organization participates in the WAGES and Workforce Development Initiative program The Housing and Community Development Division staffwill review all responses to the NOF A to ensure compliance with the requirements of the NOF A as well as the eligibility requirements, as provided in the Florida Statutes, the SHIP Ordinance, Resolutions and this Plan. All eligible applications will be submitted to the City's Loan Review Committee. The Committee will review all applications in accordance with the criteria as outlined in the NOFA. Eligible housing must be located within the corporate limits of Miami Beach, and preferably in one ofthe Community Development Target Areas, Eligible housing must conform to City Zoning requirements regarding use and density permitted (legal variances will be permitted), Manufactured housing, rental housing, and mobile homes shall not be considered eligible housing. All prospective condominium units must either be vacant or owner-occupied at the time of initial purchase, prior to re-sale to eligible SHIP recipients. All potential applicants for the SHIP Home Ownership Program will be screened for income eligibility and homeowner readiness. Applicants will be processed from a waiting list on a first come first ready basis, subject to funding availability and in such manner as to comply with the statutory requirements. Since the City of Miami Beach's SHIP Housing Assistance Program is geared to providing units to very low, low and moderate income persons, the City anticipates it will exceed all SHIP set-aside requirements. Staff will review actual performance data to ensure that adjustments are made as necessary to remain in compliance with income targeting standards. Award of SHIP funds will be in the form of a deferred payment loan secured by a Restrictive Covenant Agreement, or other recorded instrument. The maximum amount of SHIP funds allowable for assistance per unit will be $40,000, Ifthe unit is sold, transferred or ceases to serve as a primary residence, the homebuyer shall return to the City the full SHIP subsidy that enabled the homebuyer to buy the dwelling unit. The assisted unit must be occupied as a principal residence of the Owner, and may not be used as a rental. Use of the property for rental purposes is an event of default. Recapture of SHIP funds used for the rehabilitation of the assisted units will be as follows: 15 assisted units that received under $10,000 will have a recapture period of five (5) years, and units that receive $10,000 or more will have a recapture period often (10) years. Ifthe unit is sold, transferred, rented or refinanced during the recapture period for the rehabilitation assistance, the Owner shall repay to the City the full amount of SHIP subsidy funds at the time of any such sale, transfer, rental or refinancing of the unit. Not withstanding the previous restrictions, the owner shall be allowed to refinance the premises without being subject to the provisions set forth therein so long as the amount ofthe refinancing does not exceed the then outstanding balance of the first mortgage. Subordination will only be approved ifthe refinancing will lower the current mortgage payment and/or interest rate. No cash out will be allowed. In the event that title to the unit is transferred, as a result of the death of the Owner to a surviving heir, or any other heir designated by the Owner, and said heir occupies the unit as a principal residence, the household income qualifications requirements shall be waived. However, should an heir fail to occupy the unit as a principal residence within six (6) months from the date ofthe Owner's death, the full amount of SHIP subsidy funds, shall become due and payable to the City within one year from the date of the Owner's death. In order to further ensure the enforcement of this subsection, any and all successors, heirs and assigns herein must obtain the prior written consent of the City Manager prior to the resale ofthe unit Assisted units that comply with the requirements ofthe HOME rule as HOME eligible units will be utilized as HOME-Match units. When possible, the SHIP funds will be used with: U.S, Department of Housing and Urban Development HOME Program Funds, Community Development Block Grant (CDBG) Funds, other federal and state grant funds, and Miami- Dade County Documentary Surtax Funds. Homeownership Training All recipients of SHIP Program funds will be required to offer Home Ownership Training to prospective homebuyers and homeowners, Home Ownership Training will help to 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. 2. Incentives The Mayor and City Commission of the City of Miami Beach, Florida, adopted an Affordable Housing Incentives Plan on April 2, 1996, in compliance with City of Miami Beach Ordinance No. 95-2989, City of Miami Beach Resolution No. 95-21556, the Florida Administrative Code, and section 420.9076, Florida Statutes. The following incentives have 16 been adopted and incorporated into the Plan, A. The definition originally adopted by the City defined "Affordable" in accordance with the provisions ofthe SHIP Program Rule at the time. Since then, the SHIP Program Rule has been amended. Therefore, in accordance with the amended SHIP Program Rule, the City adopted the following definition, "Affordable" means that monthly mortgage payments, including taxes and insurance do not exceed 30 percent of an amount representing the percentage of the area's median annual gross income for the household as indicated in subsections (28), (29), or (41), However, it is not the intent to limit an individual household's ability to devote more than 30 percent of its income for housing. Housing for which a household's ability to devote more than 30 percent of its income shall be deemed affordable if the institutional first mortgage lender is satisfied that the household can afford mortgage payments in excess of the 30 percent benchmark. The incentive is functioning as intended. The incentive was implemented by City of Miami Beach Ordinance No. 95-2989 and Resolution No. 95-21567. B. The City of Miami Beach has implemented "the expedited processing of permits for affordable housing projects." This incentive gives priority to designated affordable housing projects when scheduling Pre-Design Conferences with all relevant agencies including but not limited to: Fire, Planning & Zoning, Building, Historic Preservation, Public Works, Americans with Disabilities Act (ADA), and the Housing and Community Development Division ofthe Neighborhood Services Department. Also, when the plans are ready for permitting, first priority is given to them; further the City has developed a form to identify the projects reviewed by the Housing Division. The form is included in the permit application package to indicate that the project is designated as meeting the affordable housing criteria. The Housing Director acts as liaison to coordinate and expedite the application with all relevant agencies. The incentive is functioning as intended. It was enacted by administrative action on February 24, 1997. C. The City of Miami Beach has implemented a process by which the City considers, before adoption, procedures and policies that have a significant impact on the cost of housing. 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, All such items are submitted to the City's Housing and Community Development Division for review and analysis to determine if the effect is significant. The Housing Division may provide proposed legislation to applicable Boards and Committees for review. The incentive is currently working as intended. It was enacted by administrative action on February 24, 1997, 17 V. TIMETABLE FOR EXPENDITURE Timetables for the expenditure of SHIP funds for State Fiscal Years 2004/05, 2005/06 and 2006/07 are located in the appendix of this document. The strategies under this SHIP Housing Assistance Plan shall be monitored on an ongoing basis to ensure that SHIP Funds are expended in a timely manner. As a Plan contingency, if the City determines that SHIP Funds can not be fully expended within the established time frame by a current strategy, the City will retarget funding to facilitate the prompt expenditure of funds, Funds will be retargeted to populations with higher demands for services and/or reallocated to strategies that are functioning as intended. The Housing Division will establish a system to ensure that adequate records are kept and maintained for compliance with monitoring requirements. VI. AFFORDABILITY a. Homeownership As required by the Florida Housing Finance Corporation, the City's SHIP Program will assist very low income (50 percent of median income) buyers, low income (80 percent of median income) buyers, and moderate income (80 percent to 120 percent of median income) buyers, and persons with special needs, to purchase affordable housing in Miami Beach. Annual income limits adjusted for family size, as established by the Florida Housing Finance Corporation, will be used to determine applicant eligibility for the program, These guidelines are established and updated by the U.S. Department of Housing and Urban Development to determine gross annual household income. Affordable means that monthly mortgage payments including taxes and insurance do not exceed 30 percent of the median annual gross income for the households. However, it is not the intent to limit an individual household's ability to devote more than 30 percent of its income for housing, and housing for which a household devotes more than 30 percent of its income shall be deemed affordable if the first institutional mortgage lender is satisfied that the household can afford mortgage payments in excess ofthe 30 percent benchmark. b. Rental (If applicable) Not Applicable VII. ADVERTISEMENT AND OUTREACH a, The City will utilize local print media, including advertising in publications read by area minority groups, The City may announce the availability of SHIP funds through announcements at community and civic group meetings, flyers to social services agencies, 18 and through its internal communications network. The SHIP programs will be affirmatively marketed without regard to race, creed, religion, color, age, sex, sexual orientation, marital status, familial status, handicap or national origin. b, The City of Miami Beach will publish the Notice of Funding Availability (NOF A) for the SHIP funds in a local newspaper of general circulation at least 30 days prior to accepting applications for assistance, VIII. ADMINISTRATIVE EXPENSES a. The City of Miami Beach's Housing Division is responsible for the administration ofthe SHIP Program. The City Staff prepares and implements the Local Housing Assistance Plan. The Staff prepares Resolutions and all other necessary documentation for approval by the City Commission including amendments to the Plan. In addition, City staff prepares and submits to the Florida Housing Finance Corporation (FHFC) the required annual reports, The City also interacts with the FHFC and prepares all advertisements. The Staff prepares and evaluates the Notices of Funding Availability (NOFA) to secure program sponsors. The Staff prepares and implements necessary agreements with the sponsors selected to provide services. The City conducts ongoing monitoring of the sponsors for compliance with the Plan and operates the SHIP Tracking System. The Staff also reviews requests for reimbursements provided by the sponsors and prepares documentation of corresponding payments. Other Staff functions include inspections and technical assistance. b. Up to ten (10) percent of the SHIP allocation will be utilized to offset administrative expenses for the program. c. A detailed listing of administrative expenditures for each fiscal year of the Plan is outlined in Table 1, The table includes the salary for one full-time Housing Specialist. Table 0 AdlDlDlstrative Ex lenses Administrative Expenses FY 2004/05 FY 2005/06 FY 2006/07 Salaries $42,405. $42,405 $42,405 AdvertisinglMarketing $ 520 $ 520 $ 520 Miscellaneous $ 0 $ 0 $ 0 Total Expenses $42,925 $42,925 $42,925 (10% of Allocation) f Note: For FY 2005/06 and FY 2006/07 allocation amounts have been projected based on the estimated allocation provided by the Florida Housing Finance Corporation for FY 2004/05, d. The City of Miami Beach currently does not intend to use outside consultants as a part of its SHIP Program. 19 CERTIFICATION TO FLORIDA HOUSING FINANCE CORPORATION Local Government: Citv of Miami Beach CoaRty/Citv (1) The local government will advertise the availability of SHIP funds 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, color, age, sex, familial or marital status, handicap, religion, 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 awards. (5) Recipients of funds will be required to contractually commit to program guidelines. (6) The Florida Housing Finance Corporation will be notified promptly if the local government (or interlocal entity) will be unable to comply with the provisions ofthe 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 to the approved Local Housing Assistance Plan shall be provided to the Corporation with in 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 such as interest earned on loans. (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 as soon as available, (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 as soon as possible. 20 (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 at least annually for 15 years for compliance with tenant income requirements and affordability requirements. Chief Elected Official Witness David Dermer. Mavor Type Name and Title Witness April 14.2004 Date OR Attest: (Seal) F:\NEIG\HSG-CD\THOMAS\ShipGraI\HousingPlan\2007 Plan\Plan2004.07.doc 21 CERTIFICATION TO FLORIDA HOUSING FINANCE CORPORATION Local Government: City of Miami Beach COliflty/Citv (1) The local government will advertise the availability of SHIP funds 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, color, age, sex, familial or marital status, handicap, religion, 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 awards. (5) Recipients of funds will be required to contractually commit to program guidelines, (6) The Florida Housing Finance Corporation will be notified promptly if the local government (or interlocal entity) will be unable to comply with the provisions of 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 to the approved Local Housing Assistance Plan shall be provided to the Corporation with in 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 such as interest earned on loans. (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 ofthe audits will be forwarded to the Corporation as soon as available. (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 as soon as possible. 20 (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 orrehabilitated with SHIP funds shall be monitored at least annually for 15 years for compliance with tenant income requirements and affordability requirements. ,'J ,~ .4 li cZ/;e. Witness '::(';7 / . 2?::-t: C"t ..<;/C- ...> ~ ~.!)I//' . -.u;..J au (l"..,J Witness David Dermer. Mayor Type Name and Title April 14.2004 Date OR AVL~ P ~~ Robert Parcher, City Clerk Attest: (Seal) F:\NElG\HSG-CD\THOMAS\SbipGral\HousingPlan\2007 Plan\PIan2004.07doc APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION AM W[),.rJI. r:-u.- r7V ~ Date 21