Resolution 2024-33236 RESOLUTION NO. 2024-33236
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY
MANAGER TO ALLOCATE FY 2024/2025 STATE HOUSING INITIATIVES
PARTNERSHIP (SHIP) FUNDS, IN THE AMOUNT OF $403,374, AS
FOLLOWS: (1) TO THE- FIRST TIME HOMEBUYER PROGRAM AND
HOMEOWNER REHABILITATION PROGRAM IN THE AMOUNT OF
$363,036.60; AND (2) TO THE SHIP PROGRAM ADMINISTRATIVE COSTS IN
THE AMOUNT OF $40,337.40; AND FURTHER AUTHORIZING THE CITY
MANAGER AND CITY CLERK TO EXECUTE CITY INTERDEPARTMENTAL
AGREEMENTS AND OTHER AGREEMENTS TO BE SIGNED BY SUB-
RECIPIENTS.
WHEREAS, the City receives funding from the Florida Housing Finance Corporation
(FHFC)for the State Housing Initiatives Partnership (SHIP) Program; and
WHEREAS, the State Housing Initiatives Partnership (SHIP) Act, §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, 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 24 allocation, in the amount of $403,374,
that will become available after July and will be disbursed in multiple payments over the course
of several months; and
WHEREAS, On July 10, 2024, the Administration issued a Request for Applications
(RFA), inviting proposals for funding up to $127,062.81 for an affordable or workforce housing
rental development; and
WHEREAS, the application period for the RFA was available from July 10, 2024 until
August 2, 2024; and
WHEREAS, public notice of the RFA and Notice of Funding Availability were published
on July 14, 2024; and the Administration also promoted the RFA through the City's social media
channels and distributed the information to various community partners; and
WHEREAS, no applications were received for affordable 'multi-family housing projects;
and
WHEREAS, the Administration recommends allocating the SHIP funds to the following
activities: (1) $363,036.60 toward first-time purchase assistance with homeowner rehabilitation;
and (2) $40,337.40 toward administration; and
WHEREAS, all FY 2024-2025 funds must be encumbered by June 30, 2026 and fully
expended by June 30, 2027; and
WHEREAS, the Administration further recommends authorizing of the City Manager and
City Clerk to execute City interdepartmental agreements and other agreements to be signed by
sub-recipients.
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 authorize the City Manager to allocate FY 2024-2025
State Housing Initiative Partnership (SHIP) funds, in the amount of $403,374 as follows: (1)
$363,036.60 to the First Time Homebuyer Program and Homeowner Rehabilitation
Program; (2) $40,337.40 to SHIP Program administrative costs; and further authorize the
City Manager and City Clerk to execute City interdepartmental agreements and other
agreements to be signed by sub-recipients.
PASSED and ADOPTED this /1 day of Sp 0/6e✓ , 2024.
ATTEST:
STEVEN MEINER, MAYOR
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SEP 1 7 2024
RAFAE E. GRANADO, CITY CLERK
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APPROVED AS TO
FORM & LANGUAGE
&FOR EXECUTION
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City Attorney( Dote
Resolutions -C7 K
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Eric Carpenter, City Manager
DATE: September 11, 2024
TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA,APPROVING AND AUTHORIZING THE CITY
MANAGER TO ALLOCATE FY 2024/2025 STATE HOUSING INITIATIVES
PARTNERSHIP (SHIP) FUNDS, IN THE AMOUNT OF $403,374, AS
FOLLOWS: (1) TO THE FIRST TIME HOMEBUYER PROGRAM AND
HOMEOWNER REHABILITATION PROGRAM IN THE AMOUNT OF
$363,036.60; AND (2)TO THE SHIP PROGRAM ADMINISTRATIVE COSTS
IN THE AMOUNT OF $40,337.40; AND FURTHER AUTHORIZING THE
CITY MANAGER AND CITY CLERK TO EXECUTE CITY
INTERDEPARTMENTAL AGREEMENTS AND OTHER AGREEMENTS TO
BE SIGNED BY SUB-RECIPIENTS.
RECOMMENDATION
The Administration recommends approving the Resolution.
BACKGROUND/HISTORY
The State Housing Initiatives Partnership (SHIP) Program, 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 must 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 City Commission approved the FY 2022-2025 LHAP via Resolution 2022-32187. The City's
2022-2025 Local Housing Assistance Plan determines the housing activities that can be funded
with all funding allocations. In the past five (5) years, the Administration has recommended
funding allocations for down payment assistance with rehabilitation costs for first-time
homebuyers, homeowner rehabilitation assistance, and rehabilitation of multi-family housing
rental projects.
The SHIP Program is governed by Florida Statute 420.9075.There are several programmatic set-
asides that must be met with each funding allocation:
• At least 65 percent of the funds must be reserved for homeownership for eligible persons;
• At least 75 percent of the funds must be reserved for construction, rehabilitation, or
emergency repair of affordable, eligible housing;
• 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 percent area median
income (AMI));
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• 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 percent AMI);
• 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; and
• Up to 25 percent of allocation can be reserved for rental assistance or development.
SHIP funds can be combined with HOME Investment Partnerships Programs (HOME) funds to
maximize funding gaps as identified. For example, during the pandemic, the City expended all
available SHIP funds through the first-time homebuyer program and created a waitlist.
On March 29,2023, Senate Bill (SB) 102, or Live Local Act,was signed into law. SB 102 continues
the historically high funding for the State Apartment Incentive Loan (SAIL) and SHIP Programs,
maintaining statutory language prohibiting sweeping these funds to general revenue. Based on
the current documentary stamp estimate, $252 million is appropriated to the SHIP program
statewide.
Using a population-based formula, SHIP funds are allocated on an entitlement basis to all 67
counties and 55 Community Development Block Grant entitlement cities in Florida. On June 24,
2024, the Florida Housing Finance Corporation (FHFC) announced that $174,000,000 has been
appropriated for the SHIP program for the 2024-2025 state fiscal year. The City has been
allocated $403,374. These funds must be encumbered by June 30, 2026, and fully expended by
June 30, 2027.
ANALYSIS •
The Administration reviews applications for first-time homebuyer and homeowner rehabilitation
programs on a first come, first qualified basis. According to available funding sources, it
determines the award amount based on need and income level. The HOME Program can only
assist households earning up to 80% AMI with up to $40,000, while the SHIP Program can help
households earning up to 120% AMI. Income-eligible households may receive between $40,000
to $150,000 in down payment assistance, depending on their household income and contingent
upon funding availability. Funds are provided to eligible residents as a deferred forgivable loan
secured by a lien and restrictive covenant on the property. If a homeowner sells, rents, or
refinances his/her property or the property is no longer the primary residence prior to the 15-year
affordability period, he/she must repay the City the value of the assistance as defined in the City's
restrictive covenant, promissory note, program agreement, and mortgage agreement.
As of August 2024, there are 44 households on a waitlist interested in completing an application
and income certification for the first-time homebuyer program,and there are seven (7)households
interested in completing an income certification and application for the homeowner rehabilitation,
program. The Administration continues to work with prospective buyers and homeowners to
assess their income qualification and program eligibility. Once an applicant is approved, those
funds are encumbered for a minimum of 90 days, and an extension can be provided if the
applicant remains income eligible. There are currently eight (8) applications for first-time
homebuyers in the queue, with an expected assistance of up to $400,000.
The Administration recommends the following allocation for FY 2024-2025 SHIP funds:
FY 24-25 SHIP Allocation $403,374
•
Activity/Project Amount
Purchase Assistance with
Rehabilitation and Homeowner $363,036.60
Occupied Rehabilitation
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Administration (10% of allocation) $40,337.40
On July 10, 2024, the Administration issued a Request for Applications (RFA) inviting proposals
for funding up to $127,062.81 for affordable or workforce housing rental development. The
application period was open from July 10, 2024,to August 2, 2024. Public notice of the RFA and
Notice of Funding Availability was published on July 14, 2024. The Administration also promoted
the RFA through the City's social media channels and distributed the information to various
community partners. Regrettably, no applications for affordable multi-family housing projects were
received.
To meet funding set-asides, the City recommends the following allocations for income-eligible
households:
Very-Low Income Low-Income Units Moderate Income
Strategies Units (up to 80% AMI) Units (up to 120%
(up to 50%AMI) AMI)
Purchase Assistance Two (2) One (1) One (1)
with Rehabilitation (up to $100,000 per (up to $60,000 per (up to $50,000 per unit)
unit) unit)
Owner-Occupied Two (2)
Rehabilitation (up to $50,000 per
unit)
FISCAL IMPACT STATEMENT
$403,374
Does this Ordinance require a Business Impact Estimate?
(FOR ORDINANCES ONLY)
If applicable, the Business Impact Estimate (BIE)was published on:
See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meetinq-notices/
FINANCIAL INFORMATION
N/A
CONCLUSION
The Administration recommends approval of the FY 2024-2025 SHIP funding allocation.
SUPPORTING SURVEY DATA
The Mayor and City Commission identified the need for workforce and affordable housing as a
key objective in the City's 2019 Strategic Plan Through the Lens of Resilience. The City's 2040
Comprehensive Plan prioritizes affordable housing, with the express goal "to encourage
redevelopment that provides workforce and affordable housing"within the City."
Applicable Area
Citywide
Is this a "Residents Right to Know" items Is this item related to a G.O. Bond
pursuant to City Code Section 2-17? Project?
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No No
Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481,
includes a principal engaged in lobbying? No
If so, specify the name of lobbyist(s) and principal(s):
Department
Housing and Community Services
Sponsor(s)
Co-sponsor(s)
Condensed Title
Approve 2024/2025 SHIP Funds. HCS
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