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C7I-Adopt CMB LHAP For SHIP Program For FY 2013-2014 2014-2015 And 2015-2016COMMISSION ITEM SUMMARY Condensed Title: A resolution of the Mayor and City Commission of the City of Miami Beach, Florida, approving and adopting the new Local Housing Assistance Plan (LHAP) for the State Housing Initiatives Partnership (SHIP) Program for fiscal years 2013/14, 2014/15, and 2015/16; authorizing execution of the necessary certifications; authorizing submission of the LHAP to the Florida Housing Finance Corporation for review and approval; authorizing the appropriation of the allocated SHIP funds for FY 2013/14 2014/15, and 2015/16, and any accrued interest thereon, for eligible program activities. Key Intended Outcome Supported: Increase access to workforce or affordable housing. Supporting Data (Surveys, Environmental Scan, etc.): According to the 2012 Community Satisfaction Survey, 34% of respondents find the availability of affordable housing to be the most important business challenge for Miami Beach; trending up from 18% of respondents in the 2009 survey. the new LHAP draft for submission to the State and authorize the appropriation of any funding ceived from the State for use in eli ible ro ram activities. Item Summary/Recommendation: Communities that receive SHIP funds, such as the City of Miami Beach, are required to produce and file with the State of Florida, a Local Housing Assistance Plan (LHAP) which governs each community's use of SHIP funds. The LHAP delineates the strategies that will be employed to increase the availability of affordable housing for income-eligible residents within the jurisdiction. A new LHAP must be filed every three years. On April 14, 2010, the City approved Resolution 2010-27370 adopting the current LHAP for State fiscal years 2010/11 through 2012/13. The State now requires that a new LHAP for fiscal years 2013/14, 2014/15 and 2015/16 be submitted by May 2, 2013. The City's SHIP funds allocation has declined significantly in the past five (5) years. Given the current uncertainty of funding, the new LHAP is designed to reduce and simplify the number of strategies and to address those strategies that have the greatest demand; while at the same time preparing for the possibility that State funds allocations return to the levels that the City received prior to FY 2009/2010. As such, the new LHAP will provide for the use of SHIP funds utilizing the following strategies: Owner-occupied Housing Rehabilitation, Disaster Mitigation Recovery (Required by the State), New Construction for Homeownership, Down Payment/Closing Cost and Rehabilitation, and Rental Housing Development. The Administration recommends approval of the attached LHAP for State fiscal years 2013/2014, 2014/2015, and 2015/2016; authorizing execution of the necessary certifications by the Mayor and City Clerk; 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 years 2013/2014, 2014/2015, and 2015/2016, for 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 rules of the SHIP Program. Advisory Board Recommendation: IN/A Financial Information: Source of Funds: Amount 1 NA 2 OBPI Financial Impact Summary: 'slative Trackin Department Director AP ______ _ MAS T:\AGENDA\2013\April 17\LHAPSummary4-17 -2013final lA IBE H 279 Account AGENDA ITEM DATE Approved r MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov To: From: Date: Subject: COMMISSION MEMORANDUM Mayor Matti Herrera Bower and M Jimmy L. Morales, City Manager April17, 2013 A RESOLUTION OF THE MA OR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING THE CITY OF MIAMI BEACH LOCAL HOUSING ASSISTANCE PLAN (LHAP) FOR THE STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM FOR FISCAL YEARS 2013/2014, 2014/2015, AND 2015/2016, AS REQUIRED BY THE STATE HOUSING INITIATIVES PARTNERSHIP PROGRAM ACT, SUBSECTIONS 420.907-420.9079; AUTHORIZING EXECUTION OF THE NECESSARY CERTIFICATIONS BY THE MAYOR AND THE CITY CLERK; AUTHORIZING SUBMISSION OF THE LOCAL HOUSING ASSISTANCE PLAN TO THE FLORIDA HOUSING FINANCE CORPORATION FOR ITS REVIEW AND APPROVAL; AUTHORIZING THE APPROPRIATION OF SHIP PROGRAM FUNDS FOR FISCAL YEARS 2013/2014, 2014/2015 AND 2015/2016 IN AMOUNTS TO BE DETERMINED BY THE STATE OF FLORIDA OR SUCH FINAL ALLOCATION AMOUNTS AS ADJUSTED BY THE FLORIDA HOUSING FINANCE CORPORATION; AND AUTHORIZING THE APPROPRIATION OF ANY INTEREST ACCRUED THEREON FOR ELIGIBLE ACTIVITIES UNDER THE SHIP PROGRAM RULES. ADMINISTRATION RECOMMENDATION Adopt the Resolution. BACKGROUND The State Housing Initiatives Partnership program (SHIP), administered through the Florida Housing Finance Corporation (FHFC) was established in 1992 by the William E. Sadowski Affordable Housing Act to stimulate the production of affordable housing statewide. SHIP program funds are derived from documentary stamp levies on real estate transactions, and held in the SHIP Program Trust Fund. Annually, FHFC allocates SHIP program funds among participating jurisdictions on a formula basis. SHIP program funds serve to increase access to affordable housing for income-eligible participants whose income does not exceed 120% of the Area Median Income. 280 City Commission Memorandum Local Housing Assistance Plan April17, 2013 Page 2 of 3 Entitlement communities that receive SHIP funds, such as the City of Miami Beach, are required to produce and file with the State of Florida. A Local Housing Assistance Plan (LHAP) which governs each community's use of SHIP funds. A new LHAP must be filed every three years. The LHAP delineates the strategies that will be employed to increase the availability of affordable housing for income-eligible residents within the jurisdiction. On April 14, 2010, the City approved Resolution 2010-27370 adopting a Local Housing Assistance Plan (LHAP) for State fiscal years 2010/11 through 2012/13, replacing the previous plan that was in place for FY 2007/2008, 2008/2009, and 2009/2010. This current plan provides for the use of SHIP funds utilizing several assistance strategies including: owner-occupied rehabilitation, disaster mitigation, new housing construction, down payment/ closing cost assistance, multi-family building rehabilitation, workforce housing, and foreclosure prevention. Per SHIP program guidelines, the funds must be allocated as follows: • At least 75% of the overall funds must be used for construction, rehabilitation or emergency repairs of affordable, eligible housing; • At least 65% of the overall funds must be used for homeownership activities (first-time homebuyer activities or owner-occupied rehabilitation projects) • At least 30% of the overall funds must be reserved for activities that benefit low-income households; • At least 30% of the overall funds must be reserved for activities that benefit very-low income households. The City's SHIP annual allocation has declined significantly in the past five (5) years. In FY 2008/2009 we received $57 4,211; in FY 2009/2010 we received $43,691; in FY 2010/2011 we received no funding; in FY 2011/2012 we received$ 42,524; and in the current FY2012/2013, we received $21,895. During the economic recession the City's allocation declined because of the reduction in documentary stamp collections which was, in turn, a result of declining property sales transactions. There is much ongoing debate about the funding for the SHIP Program, and whether or not the SHIP Trust fund proceeds will be swept into the State's general fund. Therefore, it is difficult to forecast future allocations. However, the proposed LHAP will determine strategies to be employed for use of SHIP funding, if any, for FY 2013/2014, 2014/2015, and 2015/2016. It is relevant to note that the State legislature is currently considering the use of funding allocated to Florida from the National Mortgage Settlement, a $32 billion settlement with five of the nation's largest loan servicers. Proposals are being discussed to utilize Florida's portion ($200 million) for down payment assistance, residential rehabilitation, and other programs for low income persons. In the event that Miami Beach receives an entitlement allocation from the National Mortgage Settlement, it is possible that the LHAP strategies will be applicable to the use of this new funding source. ANALYSIS The State requires that a new LHAP for fiscal years 2013/14, 2014/15 and 2015/16 be submitted by May 2, 2013, utilizing the format required by the FHFC. Attachment 1 is the proposed new Local Housing Assistance Plan. Attachment 2 is a red-line version of the existing FY 2010/11, 281 City Commission Memorandum Local Housing Assistance Plan April17, 2013 Page 3 of 3 2011/12, and 2012/2013 LHAP (approved at the April 14, 2010 City Commission meeting) with edits showing the recommended updates. Staff has updated information where required by the SHIP rules, has deleted information that is obsolete or unnecessary, and has simply clarified information in some areas. The proposed new LHAP is designed to reduce and simplify the number of strategies and to address those strategies that have the greatest demand; while at the same time preparing for the possibility that State funds allocations return to the levels that the City received prior to FY 2009/2010. As such, the new LHAP will provide for the use of SHIP funds utilizing the following strategies: A. Owner-occupied Housing Rehabilitation B. Disaster Mitigation Recovery (Required by the State) C. New Construction for Homeownership D. Down Payment/Closing Cost and Rehabilitation E. Rental Housing Development CONCLUSION The City has been a SHIP Program participant since 1995. City staff works closely with the FHFC technical staff in monitoring the SHIP program to maintain compliance with rules and regulations established by the State of Florida. A new Local Housing Assistance Plan is due to be filed with the State of Florida by May 2, 2013. The Administration recommends approval and adoption of the attached Local Housing Assistance Plan for State fiscal years 2013/2014, 2014/2015, and 2015/2016, as required by the State Housing Initiatives Program Act, Subsections 420.907-420.9079. /BG/ARB T:\AGENDA\2013\April 17\LHAPMemo4-17-2013final.doc 282 RESOLUTION NO. ------ A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING THE CITY OF MIAMI BEACH LOCAL HOUSING ASSISTANCE PLAN (LHAP) FOR THE STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM FOR FISCAL YEARS 2013/2014, 2014/2015, AND 2015/2016, AS REQUIRED BY THE STATE HOUSING INITIATIVES PARTNERSHIP PROGRAM ACT, SUBSECTIONS 420.907 -420.9079; AUTHORIZING EXECUTION OF THE NECESSARY CERTIFICATIONS BY THE MAYOR AND THE CITY CLERK; AUTHORIZING SUBMISSION OF THE LOCAL HOUSING ASSISTANCE PLAN TO THE FLORIDA HOUSING FINANCE CORPORATION FOR ITS REVIEW AND APPROVAL; AUTHORIZING THE APPROPRIATION OF SHIP PROGRAM FUNDS FOR FISCAL YEARS 2013/2014, 2014/2015 AND 2015/2016 IN AMOUNTS TO BE DETERMINED BY THE STATE OF FLORIDA OR SUCH FINAL ALLOCATION AMOUNTS AS ADJUSTED BY THE FLORIDA HOUSING FINANCE CORPORATION; AND AUTHORIZING THE APPROPRIATION OF ANY INTEREST ACCRUED THEREON FOR ELIGIBLE ACTIVITIES UNDER THE SHIP PROGRAM RULES. WHEREAS, the State of Florida enacted the William E. Sadowski Affordable Housing Act, Chapter 92-317 of Florida Sessions Laws, allocating a portion of documentary stamp taxes on deeds to local governments for the development and maintenance of affordable housing; and WHEREAS, the State Housing Initiatives Partnership (SHIP) Act, ss. 420.907-420.9079, Florida Statutes (1992), and Rule Chapter 67-37, Florida Administrative Code, requires local governments to develop a one-to three-year Local Housing Assistance Plan outlining how funds will be used; and WHEREAS, the SHIP Act requires local governments to establish the maximum SHIP funds allowable for each strategy; and WHEREAS, the SHIP Act further requires local governments to establish an average area purchase price for new and existing housing benefiting from awards made pursuant to the Act; The methodology and purchase prices used are defined in the attached Local Housing Assistance Plan; and WHEREAS, as required by section 420.9075, F.S., it is found that 5 percent of the local housing distribution plus 5 percent of program income is insufficient to adequately pay the necessary costs of administering the local housing assistance plan. The cost of administering the program may not exceed 10 percent of the local housing distribution plus 5% of program income deposited into the trust fund, except that small counties, as defined in s. 120.52(17), and eligible municipalities receiving a local housing distribution of up to $350,000 may use up to 10 percent of program income for administrative costs. 283 WHEREAS, on April 10, 2010, pursuant to Resolution No. 2010-27370, the Mayor and City Commission approved and adopted a City of Miami Beach Housing Assistance Plan for Fiscal Years 2010/2011, 2011/2012 and 2012/2013, pursuant to the requirements of the Act and the SHIP Program Rule, issued by the Florida Housing Finance Corporation; and WHEREAS, the Administration has prepared a new Local Housing Assistance Plan, as attached to this Resolution, for Fiscal Years 2013/2014, 2014/2015 and 2015/2016, in order to qualify to receive annual allocations of SHIP Program funds for eligible housing activities; and WHEREAS, this Resolution authorizes the appropriation of SHIP Program funds for Fiscal Year 2013/2014, 2014/2015 and 2015/2016 in amounts to be determined by the State; or such final allocation amounts, as adjusted by the Florida Housing Finance Corporation; and authorizes the appropriation of any interest accrued thereon, for eligible activities under the SHIP Program Rule. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve and adopt the Local Housing Assistance Plan (LHAP) for the State Housing Initiatives Partnership (SHIP) Program for Fiscal Years 2013/2014, 2014/2015 and 2015/2016, as required by the State Housing Initiatives Partnership Program Act, Subsections 420.907 -420.9079; authorize the execution of the necessary certifications by the Mayor and the City Clerk; authorize submission of the Local Housing Assistance Plan to the Florida Housing Finance Corporation for its review and approval; authorize the appropriation of SHIP Program funds for Fiscal Years 2013/2014, 2014/2015 and 2015/2016 in amounts to be determined by the State of Florida or such final allocation amounts as adjusted by the Florida Housing Finance Corporation; and authorize the appropriation of any interest accrued thereon for eligible activities under the SHIP Program Rules. Passed and adopted this __ day of---------' 2013. ATTEST: CITY CLERK T:\AGENDA\2013\Aprii17\LHAPResolution4-17 -2013final.doc 284 MAYOR APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION ~ 4\3\\) Date SHIP LOCAL HOUSING ASSISTANCE PLAN (LHAP) FISCAL YEARS COVERED 2013/2014, 2014/2015 and 2015/2016 Prepared by: City of Miami Beach Office of Real Estate, Housing & Community Development 1700 Convention Center Drive Miami Beach, Florida 33139 285 Table of Contents Program Description A. Name of Participating Local Government B. Purpose of Program C. Fiscal Years Covered by LHAP D. Governance E. Local Housing Partnership F. Leveraging G. Public Input H. Advertising and Outreach I. Discrimination J. Support Services and Counseling K. Purchase Price Limits L. Income Limits, Rent Limits, and Affordability M. Welfare Transition Program N. Monitoring and First Right of Refusal 0. Administrative Budget P. Program Administration Q. Essential Service Personnel R. Initiatives for Green Building Design and Techniques LHAP Housing Strategies A. Housing Rehabilitation B. Disaster Mitigation Recovery C. New Construction D. Down Payment/Closing Cost and Rehabilitation E. Rental Housing Development LHAP Incentive Strategies Exhibits A. Administrative Budget B. Timelines by Program Year C. Housing Delivery Goals Chart by Program Year D. Certification E. Adopting Resolution F. Program Information Sheet 286 3 9 15 16 -2- I. PROGRAM DESCRIPTION: A. Name of the Participating Local Government and lnterlocal (if Applicable): CITY OF MIAMI BEACH lnterlocal: Yes __ _ No X B. Purpose of the Program: Creation of the Plan is for the purpose of meeting the housing needs of very low, low, and moderate-income households; to expand production of and preserve affordable housing; and to further the housing element of the Miami Beach Comprehensive Plan specific to affordable housing. C. Fiscal years covered by the Plan: 2013/2014 2014/2015 2015/2016 D. Governance: The SHIP Program is established in accordance with Section 420.907-9079, Florida Statutes and Chapter 67-37 Florida Administrative Code. The SHIP Program does further the housing element of the City of Miami Beach Comprehensive Plan. Cities and Counties must at all times be in compliance with these applicable statutes and rules. E. Local Housing Partnership: SHIP Program encourages building active partnerships between government, lenders, builders and developers, real estate professionals, advocates for low- income persons and community groups. The City of Miami Beach works closely with its designated Community Housing Development Organization (CHDO) in its efforts to expand affordable housing opportunities. F. Leveraging: The Plans are intended to increase the availability of affordable residential units by combining local resources and cost saving measures into a local housing partnership and using public and private funds to reduce the cost of housing. 287 The City of Miami Beach is an Entitlement Community which receives HOME and CDBG funds from the U.S. Department of Housing and Urban Development (HUD) that will be used, in combination with other local funds, to leverage SHIP funds to increase affordable housing opportunities and reduce the cost of housing in the City. G. Public Input: Public input was solicited through face to face meetings with housing providers, social service providers, local lenders and neighborhood associations through public meetings. Public input was solicited through the local newspaper in the advertising of the Local Housing Assistance Plan and the Notice of Funding Availability (NOFA)/Request for Applications (RFA), as appropriate. H. Advertising and Outreach: The City advertises the notice of funding availability for SHIP funds in a newspaper of general circulation and periodicals serving ethnic and diverse neighborhoods, at least 30 days before the beginning of the application period. If no funding is available due to a waiting list, no notice of funding availability is required. I. Discrimination: In accordance with the prov1s1ons of ss.760.20-760.37, it is unlawful to discriminate on the basis of race, creed, religion, color, age, sex, marital status, familial status, national origin, or handicap in the award application process for eligible housing. J. Support Services and Counseling: Support services are available from various sources. Available support services may include, but are not limited to: • Homeownership counseling (pre and post) • Credit counseling • Legal counseling • Tenant counseling • Fair housing Note: All sponsors receiving SHIP Program funds will be required to offer Home Ownership Training to prospective homebuyers. Such training will assist and prepare homebuyers for the acquisition and ownership of a home. Counseling services will be provided on a group and individual basis covering the following topics: the home buying process; finding money for a down-payment; dealing with financial crisis; how to set up a budget; the importance of good credit; dispute resolution; and how to maintain a home. Home Ownership Training must meet the standards set by U.S. HUD. -4- 288 K. Purchase Price Limits: Purchase Price Limits: The sales price or value of new or existing eligible housing may not exceed 90% of the average area purchase price in the statistical area in which the eligible housing is located. Such average area purchase price may be that calculated for any 12-month period beginning not earlier than the fourth calendar year prior to the year in which the award occurs. The sales price of new and existing units can be lower, but may not exceed 90% of the median area purchase price established by the U.S. Treasury Department or any other independent study. The methodology used is: __ Independent Study (copy attached) __ U.S. Treasury Department X Bond Study Numbers provided by Florida Housing Finance Corporation The purchase price limit for new and existing homes: $391,153 L Income Limits, Rent Limits, and Affordability: The Income and Rent Limits used in the SHIP Program are updated annually from the Department of Housing and Urban Development and distributed by Florida Housing Finance Corporation. Income eligibility will be defined as follows: Very Low Income (up to 50% AMI), Low Income (up to 80% AMI), and Moderate Income (up to 120% AMI). Affordable, means that monthly rents or mortgage payments including taxes and insurance do not exceed 30 percent of that amount which represents the percentage of the median annual gross income for the households as indicated in Sections 420.9071 (19), (20) and (28), F.S. However it is not the intent to limit an individual household's ability to devote more than 30% of its income for housing, and housing for which a household devotes more than 30% of its income shall be deemed Affordable if the first institutional mortgage lender is satisfied that the household can afford mortgage payments in excess of the 30% benchmark and, in the case of rental housing, does not exceed those rental limits adjusted for bedroom size. M. Welfare Transition Program: The City has developed a qualification system and selection criteria for applications for awards to eligible sponsors, which includes a description that demonstrates how eligible sponsors that employed personnel from the Welfare Transition Program will be given preference in the selection process. -5- 289 N. Monitoring and First Right of Refusal: In the case of rental housing, the staff or entity that has administrative authority for implementing the local housing assistance plan assisting rental developments shall annually monitor and determine tenant eligibility or, to the extent another governmental entity provides the same monitoring and determination, a municipality, county or local housing financing authority may rely on such monitoring and determination of tenant eligibility. However, any loan or grant, in the original amount of $3,000 or less shall not be subject to these annual monitoring and determination of tenant eligibility requirements. Tenant eligibility will be monitored at least annually for 15 years or the term of assistance, whichever is longer. Eligible sponsors that offer rental housing for sale before 15 years or that have other remaining mortgages funded under the SHIP Program must give a first right of refusal to eligible nonprofit organizations for purchase at the current market value for continued occupancy by eligible persons. 0. Administrative Budget: A detailed listing including line-item budget of proposed Administrative Expenditures is attached as Exhibit A. These are presented on an annual basis for each State fiscal year submitted. The City finds that the monies deposited in the local housing assistance trust fund shall be used to administer and implement the local housing assistance plan. In accordance with Chapter 67-37, Florida Administrative Code, the cost of administering the plan does not exceed 5 percent of the local housing distribution monies and program income deposited into the trust fund. The cost of administering the program may not exceed 10 percent of the local housing distribution plus 5% of program income deposited into the trust fund, except that small counties, as defined in s. 120.52(17), and eligible municipalities receiving a local housing distribution of up to $350,000 may use up to 1 0 percent of program income for administrative costs. The City of Miami Beach has adopted the above findings in the attached Resolution, Exhibit E. P. Program Administration: Administration of the Local Housing Assistance Plan is the responsibility of the City of Miami Beach. The Office of Real Estate, Housing & Community Development is the City department responsible for carrying out the strategies under the SHIP Local Housing Assistance Plan. -6- 290 The City may use a sponsor to carry out program activities. In order to identify a sponsor, the City will issue a Competitive Notice of Funding Availability, (NOFA) or Request for Applications (RFA) to solicit administrative services from not-for- profit and for-profit builders/developers to participate in the program. Through this process, the City will ascertain the highest and best use of the funds in accordance with the guidelines outlined in this Plan. Selection criteria will include, but may not be limited to: (1) Experience in providing strong construction management practices, quality workmanship, and quality materials (2) Experience in performing all applicant selection and income certification processes in accordance with local, state, and federal regulations (3) Experience in government reporting compliance (4) Total project cost (5) Total number of units (6) Leveraging (7) Experience in providing homeowners with HUD-Certified Homeownership Training/Counseling (8) Preference will be given to eligible sponsors that employ staff from the Welfare Transition Program The Office of Real Estate, Housing and Community Development will review all responses to the NOFA/RFA to ensure compliance with the outlined requirements; as well as compliance with Florida Statutes and Administrative Code, the SHIP Ordinance, Resolutions and this Plan. All eligible applications will be submitted to the City's Loan Review Committee. The Committee will review all applications in accordance with the criteria as outlined in the NOFA/RFA. Q. Essential Service Personnel In accordance with Rule Chapter 67-37.002(8) F.A.C. and Chapter 67- 37.005(8), F.A.C. and Section 420.9075(3)(a) FS, "Essential Service Personnel" are defined as income-eligible employees of Miami Beach businesses and organizations in the following industries: - 7 - 291 a. Accommodations and Food Services (including arts, entertainment and recreation); b. Retail Trade; c. Public Administration (including City of Miami Beach employees); d. Health Care; and e. Education (including public school district employees). R. Initiatives for Green Building Design and Techniques In accordance with Section 420.9075(3)(d) the City of Miami Beach is committed to making the housing stock more energy efficient. Therefore the City will require the use of the following features when economically feasible in the rehabilitation or constructing of homes: a. Water conserving appliances and fixtures (toilets, showerheads, faucets) b. Energy Star appliances c. Efficient lighting on both interior and exterior d. Upgrading of insulation materials (attics, walls, roofing) e. Tankless water heaters f. Air conditioning with higher SEER rating 292 II. LHAP HOUSING STRATEGIES: A. Housing Rehabilitation: a. Summary of the Strategy: Rehabilitation of single family, owner- occupied housing. The Program will provide rehabilitation assistance to very low, low, and moderate-income owner-occupied single family housing located within the corporate limits of the City of Miami Beach. Up to fifty (50) percent of the funds will be targeted to assist Program participants who are Essential Service Personnel, as defined on Section I (Q) of this Plan. If the demand for assistance from this target population is not sufficient to fully utilize these funds, the balance of the funds will be used to assist participants who are not from the target group. "Rehabilitation" will be defined as repairs or improvements that are needed for safe or sanitary habitation, correction of substantial code violations, or the creation of additional living space. Housing rehabilitated with SHIP funds must meet all applicable local codes, rehabilitation standards and ordinances, including, but not limited to, Florida Building Code, Miami-Dade County Building Code, and City of Miami Beach Building Code. Additionally, all projects must comply with all other applicable laws, rules and regulations. b. Fiscal Years Covered: 2013/2014, 2014/2015 and 2015/2016 c. Income Categories to be served: Eligible persons/households that are very low, low, or moderate income. See also Section I (L) of this Plan. d. Maximum award as noted on the Housing Delivery Goals Charts: $40,000 e. Terms, Recapture and Default: Fifteen (15) year deferred, forgivable loan, at zero percent (0%) interest. The loan will be forgiven at the end of the term. Full balance due if property is sold, rented, refinanced or the property fails to be the owner's primary residence during the fifteen year term. Notwithstanding the previous restrictions, the owner shall be allowed to refinance without being subject to the provisions set forth therein, so long as the amount of the refinancing does not exceed the then outstanding balance of the first mortgage. Subordination will only be approved if the refinancing will lower the current mortgage payment and/or interest rate. -9- 293 The City's interests will be secured through the execution of a mortgage and note as well as a Restrictive Covenant delineating the recapture period and terms. f. Recipient Selection Criteria: All recipients of assistance must meet the applicable eligibility requirements as stipulated in the Florida Statutes, SHIP Rule, and this Plan. Applicants will be selected from a waiting list on a first come, first ready basis. g. Sponsor Selection Criteria: See Section I (P) of this Plan. h. Additional Information: Mobile homes and trailers are not eligible for this strategy. Assisted properties must be located within the City of Miami Beach corporate limits. B. Disaster Mitigation Recovery: a. Summary of the Strategy: Emergency Assistance to eligible households after the occurrence of a natural disaster declared by Executive Order (President of the United States or Governor of the State of Florida). In the event of a natural disaster, the City will commit available unencumbered SHIP funds, as well as other disaster funds that may become available through the Florida Housing Finance Corporation or any other emergency funding sources. Disaster funds may be used for, but not limited to, the following: 1) Purchase of emergency supplies; weatherproofing a damaged home; 2) Interim repairs to prevent further damage; tree and debris removal to make the housing unit habitable; 3) Payment of insurance deductibles for rehabilitation of homes covered under homeowners' insurance policies; and 4) Other activities as proposed by the Federal Government, counties and eligible municipalities and approved by Florida Housing Finance Corporation. b. Fiscal Years Covered: 2013/2014. 2014/2015 and 2015/2016 c. Income Categories to be served: Eligible persons/households that are very low, low, or moderate income. See also Section I (L) of this Plan. d. Maximum award as noted on the Housing Delivery Goals Charts: $40,000 -10- 294 e. Terms, Recapture and Default: Fifteen (15) year deferred, forgivable loan, at zero percent (0%) interest. The loan will be forgiven at the end of the term. Full balance due if property is sold, rented, refinanced or the property fails to be the owner's primary residence during the fifteen year term. Notwithstanding the previous restrictions, the owner shall be allowed to refinance without being subject to the provisions set forth therein so long as the amount of the refinancing does not exceed the then outstanding balance of the first mortgage. Subordination will only be approved if the refinancing will lower the current mortgage payment and/or interest rate. The City's interests will be secured through the execution of a mortgage and note as well as a Restrictive Covenant delineating the recapture period and terms. f. Recipient Selection Criteria: All recipients of assistance must meet the applicable eligibility requirements as stipulated in the Florida Statutes, SHIP Rule, and this Plan. Applicants will be selected from a waiting list on a first come, first ready basis. g. Sponsor Selection Criteria: See Section I (P) of this Plan. h. Additional Information: Mobile homes and trailers are not eligible for this strategy. Assisted properties must be located within the City of Miami Beach corporate limits. C. New Construction: a. Summary of the Strategy: To develop homeownership opportunities to assist eligible buyers to purchase affordable housing in Miami Beach. Funds will be provided to developers to be used to finance the costs associated with site development, and hard and soft construction costs. b. Fiscal Years Covered: 2013/2014, 2014/2015 and 2015/2016 c. Income Categories to be served: Eligible persons/households that are very low, low, or moderate income. See Section I (L) of this Plan. d. Maximum award is noted on the Housing Delivery Goals Charts: $40,000 e. Terms, Recapture and Default. Deferred payment, zero percent (0%) interest, construction loan to the developer. No payments will be required during the construction phase. Once construction is completed and the unit(s) is sold the SHIP subsidy will be passed on to the new homeowner -11 - 295 in the form of a fifteen (15) year deferred, forgivable loan, at zero percent (0%) interest. The loan will be forgiven at the end of the term. Full balance due if property is sold, rented, refinanced or the property fails to be the owner's primary residence during the fifteen year term. Notwithstanding the previous restrictions, the owner shall be allowed to refinance without being subject to the provisions set forth therein so long as the amount of the refinancing does not exceed the then outstanding balance of the first mortgage. Subordination will only be approved if the refinancing will lower the current mortgage payment and/or interest rate. The City's interests will be secured through the execution of a mortgage and note as well as a Restrictive Covenant delineating the recapture period and terms. f. Recipient Selection Criteria: All recipients of assistance must meet the eligibility requirements as stipulated in the applicable Florida Statutes, SHIP Rule, and this Plan. Applicants will be selected from a waiting list on a first come, first ready basis. g. Sponsor Selection Criteria: See Section I (P). h. Additional Information: Mobile homes and trailers are not eligible for this strategy. Assisted properties must be located within the City of Miami Beach corporate limits. D. Down Payment/Closing Costs and Rehabilitation: a. Summary of the Strategy: Down payment, closing cost and rehabilitation assistance for the purchase of new or existing housing, and the rehabilitation of those properties, for first-time homebuyers. A first- time homebuyer is defined as a purchaser that has not owned a home in at least the last three years. b. Fiscal Years Covered: 2013/2014,2014/2015 and 2015/2016 c. Income Categories to be served: Eligible persons/households that are very low, low or moderate income. See Section I (L). d. Maximum award is noted on the Housing Delivery Goals Charts: $60,000 for Very Low and Low-Income Persons and $40,000 for Moderate Income Persons e. Terms, Recapture and Default: Fifteen (15) year deferred, forgivable loan, at zero percent (0%) interest. The loan will be forgiven at the end of the term. Full balance due if property is sold, rented, refinanced or the -12- 296 property fails to be the owner's primary residence during the fifteen year term. Notwithstanding the previous restrictions, the owner shall be allowed to refinance without being subject to the provisions set forth therein so long as the amount of the refinancing does not exceed the then outstanding balance of the first mortgage. Subordination will only be approved if the refinancing will lower the current mortgage payment and/or interest rate. Additionally, if the unit is sold prior to the extinction of the affordability period, part of the equity produced by the sale shall be reimbursed to the City as follows: If the unit is sold between the first and the tenth year, 50% of the ~rofit shall be paid to the City; if the unit is sold between the 11th and 15 h year, 25% of the profit shall be paid to the City. The City's interests will be secured through the execution of a mortgage and note as well as a Restrictive Covenant delineating the recapture period and terms. f. Recipient Selection Criteria: All recipients of assistance must meet the eligibility requirements as stipulated in the applicable Florida Statutes, SHIP Rule, and this Plan. Applicants will be selected from a waiting list on a first come, first ready basis. g. Sponsor Selection Criteria: See Section I (P) of this Plan. h. Additional Information: Mobile homes and trailers are not eligible for this strategy. Eligible housing must be located within the corporate limits of the City of Miami Beach. E. Rental Housing Development: a. Summary of the Strategy: To develop rental opportunities for eligible renters to rent affordable units in Miami Beach. Funds will be provided to developers to be used to finance the costs associated with hard and soft rehabilitation costs of rehabilitating vacant multi-family buildings. b. Fiscal Years Covered: 2013/2014, 2014/2015 and 2015/2016 c. Income Categories to be served: Eligible persons/households that are very low, low or moderate income. See Section I (L) of this Plan. d. Maximum award is noted on the Housing Delivery Goals Charts: $40,000 -13- 297 e. Terms, Recapture and Default: A Thirty (30) year deferred payment loan at 0% interest. Full balance of the SHIP subsidy will be due if the property is sold or transferred, or the property fails to be used for affordable housing during the thirty year term. The City may impose a reverter provision at the end of the term if it is found to be in the best interest of City to maintain the affordable housing beyond the affordability period, if the recipient decides to convert the rental development to all market rate development. The reverter clause will not be used if the recipient volunteers to keep a negotiated percentage of the units affordable to very low, low and moderate-income households. Additionally, if the building is sold after the tenth year of the affordability period but prior to the extinction of the affordability period, in addition to the full repayment of the SHIP loan, part of the equity produced by the sale shall also be reimbursed to the City as follows: If the property is sold between the eleventh and twentieth year, 50% of the profit shall be paid to the City; if the property is sold between the twenty-first and thirtieth year, 30% of the profit. The City's interests will be secured through the execution of a mortgage and note as well as a Restrictive Covenant delineating the affordability period and terms. f. Recipient Selection Criteria: All recipients of assistance must meet the eligibility requirements as stipulated in the applicable Florida Statutes, SHIP Rule, and this Plan. g. Sponsor Selection Criteria: See Section I (P) of this Plan. h. Additional Information: Assisted properties must be located within the City of Miami Beach corporate limits. -14- 298 Ill. LHAP INCENTIVE STRATEGIES A. Name of the Strategy: Expedited Permitting Permits as defined ins. 163.3164(7) and (8) for affordable housing projects are expedited to a greater degree than other projects. a. Established policy and procedures: This incentive gives priority to designated affordable housing projects when scheduling pre-design conferences with relevant City agencies including, but not limited to: Fire, Planning and Zoning, Building, Historic Preservation, and the Office of Real Estate, Housing and Community Development. Also, when the plans are ready for permitting, first priority is given; further, the City has developed a form to identify the projects reviewed by the Office of Real Estate, Housing & Community Development. The incentive was enacted by administrative action on February, 1997. B. Name of the Strategy: Ongoing Review Process An ongoing process for review of local policies, ordinances, regulations and plan provisions that increase the cost of housing prior to their adoption. a. Established policy and procedures: Prior to the adoption of any proposed policy, procedure, ordinance, development plan, regulation, or Comprehensive Plan amendment that might impact housing, the City evaluates its potential effect and cost on affordable housing through the Director of the Office of Real Estate, Housing & Community Development. The Office of Real Estate, Housing and Community Development may present proposed legislation to applicable City boards and committees for their review as they may impact housing. The incentive was enacted by administrative action on February 1997. -15- 299 Exhibit A ADMINISTRATIVE BUDGET 300 -16- ADMINISTRATIVE BUDGET FOR EACH FISCAL YEAR Cit of Miami Beach Estimated Allocation for Calculatin Fiscal Year 2013/2014 Salaries and Benefits Office Supplies and Equipment Travel Advertising Other al Workshops, etc Fiscal Year 4/2015 67-37 .005(1 ), Effective Date: 11/09 $21 $2,1 $0 $0 $0 $0 $2,189 Salaries and Benefits $2,189 Office Supplies and Equipment $0 Travel Perdiem Workshops, etc $0 Advertising $0 Other $0 ------------------------------------------~ Fiscal Year 5/2016 Salaries and Benefits Office Supplies and Equipment Travel Perdiem Workshops, etc Advertising Other Total EXHIBIT A 301 $2,189 $2,189 Exhibit B TIMELINE 302 -17- w 0 w I I I I ill I £ TI I I * I I I ~ ~ I I ~ I I ill£ rn >< :X:: e;z ..-1 o::l Dimctions: TIMETABLE FOR STATE FISCAl YEAR 2013/2015 Name of Local Government City of Miami Beach Type in the applicable years •"""" the top line. list Program Activities down left hand side. Type In an "X" on applicable activity line under month and year the activity Wl11 be lnlllated or completed. At a minimum the following ac!MiliiiS should be Included: 1) Atlvertisla availabilily of funds and applica1km period Z) Encumlmmce of funds 112 months following end of State Fiscal Year) 3) Expenditure of funds ('24 months following end of state Fiscal Year'). 4) Submit Annual Report to FHFC (September 15th) 6'1·31Jlll5{!), f.A.C EffetHvt' D~te:: ~ 1 tt'!'9 I I & B' & I II M i .... ~""'="~'*'"'"""'""="""""'-~-·· w;.=,Fu/////N:-wu///////#~='%..w'.d~;::;:.:W'.&0f..&"_.@.&if_dgy--gzf.©i-frtiiiV#I.J4f%&..£0t"iill%ilf_d_if~~ Exhibit C HOUSING DELIVERY GOALS -18- 304 w 0 CJ1 I ~ ~ I ill I ® ~ I ll! I I ll! I I II II I I I I I C":) CORPORATION 1'# V-i: td hi m lW I I rg I I I I I I ~ I II I I I ~ I 1 I I EXHIBIT C PAGE 2 306 EXHIBIT C PAGE 3 307 Exhibit D CERTIFICATION PAGE 308 -19 - 67-37.005(1), F.A.C. FLORIDA HOUSING FINANCE CORPORATION Name of Local Government: City of Miami Beach (1) The local gmrenmnem will adverti~e the availability of SHIP funds, if available, pursuant to Florida Statutes. (2) AU SHIP funds will be expended in a manner which will insure that there will be no discrimination on the basis creed, religion, color, sex, familial or marital status, handicap, or national origin. (3) for selection of recipients for funds has been developed. ( 4) The eligible municipality or county has developed a qualification system for applications for assistance. (6) The Florida Housing Finance Corporation will be notified promptly if, at any time, local government (or interlocal entity) will be unable to comply with the provisions the plan. (7) The Local Housing Assistance Plan shall provide for the expenditure SHIP funds within months following end State fiscal year in which they are (8) The plan conforms to the Government Comprehensive Plan, or that an amendment to the Local Government Comprehensive Plan will be initiated at the next available opportunity to insure with·the Local Housing Plan. (9) Amendments and Technical Revisions to the approved Local Housing Assistance Plan shall be provided to the Corporation within 21 days after adoption. (1 0) The trust shaH be established with a qualified depository for all funds as well as moneys generated activities as program income. (1 Amounts on deposit in local housing assistance trust fund shall invested as permitted by law. ( 12) The local housing assistance trust fund shall be separately stated as a special revenue fund in the local goverl!1Inents audited fmancial statements, copies of the audits will be forwarded to the Corporation by June of each calendar year. EXHIBIT D 309 67-37.005(1), F.A.C. 13) An interlocal entity shall have its local housing assistance trust fund separately audited for each state fiscal year, the audit forwarded to the Corporation by June 30. (14) SHIP funds will not be pledged for debt service on bonds or as rent subsidies. (15) receiving assistance from both SHIP and the Low Income Housing Tax (LIHTC) Program shall comply with the income, affordability and other LIHTC requifements. Similarly, an:y 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, loans or loans that extend beyond 30 years which continue to for deferred payment eligible persons. (17) Rental units constructed or rehabilitated with SHIP funds shall be monitored annually for (1 for compliance with tenant income requirements and affordability requirements or as required in Section 420.9075 (3)(e) The Plan meets the requirements of Section 420-907-9079 and how each ofthose requirements shall be met. and Rule Chapter 67-37 FAC, (19) provisions of Chapter Laws of Florida has not been implemented. (except for Miami Dade County) Witness Witness Date Attest: (Seal) Matti Herrera-Bower, Mayor Type Name and Title 2 310 Exhibit E ADOPTING RESOLUTION 311 -20- ADOPTING RESOLUTION EXHIBIT E 312 City of Miami Beach LHAr Exhibit F PROGRAM INFORMATION SHEET -21 - 313 67-37.005(1), F.A.C. STATE HOUSING INITIATIVES PARTNERSHIP PROGRAM INFORlYJATION SHEET PROGRAM The following information must be to the Corporation before any funds can be Local Government I City of Miami Beach Chief Elected. Official i Matti Herrera-Bower, Mayor Address 1700 Convention Center Drive, Miami Beach, FL 33139 SHIP Administrator Anna Parekh Address LI700 Convention Center Drive, Miami Beach, FL 33139 : Telephone 1305-673-7260 EMAIL annaparekh@miamibeachfl.gov Alternate SliP Contact Richard Bowman Telephone 305-673-7260, ext 6893 EMAIL richardbowman@miamibeachfl.gov Interlocal Agr.,.,JLI • .,... (l.ist other local NA governments in interlocal) Local Government Employer Federal ID # 59-6000372 Disbursement (Ust bank account No Change information if changed from previous) Other Information """"' Please attach this form as Exhibit F and submit along with your completed LHAP. EXHIBIT F 314 SHIP LOCAL HOUSING ASSISTANCE PLAN (LHAP) FISCAL YEARS COVERED 201 0/2011 , 2011/2012 and 2012/2013 Prepared by: Office of Real Estate, Housing & Community Development Miami Beach City Hall 1700 Convention Center Drive Miami Beach, Florida 33139 315 z. Table of Contents Program Description A. Name of Participating Local Government B. Purpose of the Program C. Fiscal Years Covered by LHAP D. Governance E. Local Housing Partnership F. Leveraging G. Public Input H. Advertising and Outreach I. Discrimination J. Support Services and Counseling K. Purchase Price Limits L. Income Limits, Rent Limits, and Affordability M. Welfare Transition Program N. Monitoring and First Right of Refusal 0. Administrative Budget P. Program Administration Q. Essential Service Personnel LHAP Housing Strategies A. Housing Rehabilitation B. New Construction C. Closing Costs and Down Payment D. Rehabilitation of Multi-family Buildings for Condominium Conversion E. Rental Housing Development F. Workforce Housing G. Foreclosure Prevention LHAP Incentive Strategies Expedited Permitting Ongoing Review Process Exhibits Administrative Budget Timelines by Program Year Housing Delivery Goals Chart by Program Year Certification to Florida Housing Finance Corporation Adopting Resolution Program Information Sheet 316 City of Miami Beach LHAP 3 8 19 22 -2- City of Miami Beach LHAP I. PROGRAM DESCRIPTION: A. Name of the Participating Local Government and lnterlocal (if Applicable): Section 420.9072 (5) Florida Statutes City of Miami Beach lnterlocal: Yes __ _ No X B. Purpose of the Program: Creation of the Plan is for the purpose of meeting the housing needs of the very low, low, and moderate income households; to expand production of and preserve affordable housing; and to further the housing element of the local government comprehensive plan specific to affordable housing. C. Fiscal years covered by the Plan: 4 5 6 D. Governance: Chapter67-37.005(3) and (S)(i)F.A.C .and Section 420.907.1(14)F.S. The SHIP Program is established in accordance with Section 420.907-9079, Florida Statutes and Chapter 67-37.007 Florida Administrative Code. IP Cities and Counties must at all times be in compliance with applicable statutes and rules: Section 420.907-9079 F.S., and Chapter67- 37, F.A.C. E. Local Housing Partnership: Section 420.9072(1)(a), F.S. SHIP Program encourages building active partnerships between government, lenders, builders and developers, real estate professionals, advocates for low- income persons and community groups. The City of Miami Beach works closely with its designated Community Housing Development Organization (CHDO), as well as other local groups involved in local housing activities, in the development of its Local Housing Assistance Plan. F. Leveraging: SHIF' Local Hous1ng Assistance :)lall 20"1 U -/01 ~; City of rvl1mni Beach 317 -3- City of Miami Beach LHAP The Plans are intended to increase the availability of affordable residential units by combining local resources and cost saving measures into a local housing partnership and using public and private funds to reduce the cost of housing. SHIP funds may be leveraged with or used to supplement other Florida Housing Finance Corporation programs and to provide local match to obtain federal housing grants or programs. The City of Miami Beach is an Entitlement Community which receives HOME and CDBG funds from the U.S. Department of Housing and Urban Development (HUD) that will be used, in combination with other local funds, to leverage SHIP funds and reduce the cost of housing in the City. G. Public Input: Public input was solicited through face to face meetings with housing providers, social service providers, local lenders and neighborhood associations through public meetings. Public input was solicited through the local newspaper in the advertising of the Local Housing Assistance Plan and the Notice of Funding Availability (NOFA)/Request , as appropriate. H. Advertising and Outreach The City advertises the Notice Of Funding Availability for SHIP funds in a newspaper of general circulation and periodicals serving ethnic and diverse neighborhoods, at least 30 days before the beginning of the application period. If no is a no is I. Discrimination: In accordance with the provisions of ss.760.20-760.37, it is e:F-i'iffi·arr~+--e~ffiR--e<3e£i-ne:t discriminate on the basis of race, creed, religion, color, age, sex, sexual orientation, marital status, familial status, national origin, or handicap in the award application process for eligible housing. J. Support Services and Counseling: Support services are available from various sources. Available support services may include, but are not limited to: • Homeownership counseling (pre and post) • Credit counseling ·Tenant counseling • Legal counseling 318 ~4- City of Miami Beach LHAP • Fair housing Note: All sponsors receiving SHIP Program funds will be required to offer Home Ownership Training to prospective homebuyers. Such training will assist and prepare homebuyers for the acquisition and ownership of a home. Counseling services will be provided on a group and individual basis covering the following topics: the home buying process; finding money for a down-payment; dealing with financial crisis; how to set up a budget; the importance of good credit; dispute resolution; and how to maintain a home. Home Ownership Training must meet the standards set by U.S. HUD. K. Purchase Price Limits: Purchase Price Limits: The sales price or value of new or existing eligible housing may not exceed 90% of the average area purchase price in the statistical area in which the eligible housing is located. Such average area purchase price may be that calculated for any 12-month period beginning not earlier than the fourth calendar year prior to the year in which the award occurs. The sales price of new and existing units can be lower, but may not exceed 90% of the median area purchase price established by the U.S. Treasury Department or any other independent study. The methodology used is: __ Independent Study (copy attached) __ U.S. Treasury Department X Bond Study Numbers provided by Florida Housing Finance Corporation The purchase price limit for new and existing homes: ~~~5?. .:I:.;::;.;::;_~= L. Income Limits, Rent Limits, and Affordability: The Income and Rent Limits used in the SHIP Program are updated annually from the Department of Housing and Urban Development and distributed by Florida Housing Finance Corporation. Income Income 1), lncorne 1), Income 1 !). Affordable, means that monthly rents or mortgage payments including taxes and insurance do not exceed 30 percent of that amount which represents the percentage of the median annual gross income for the households as indicated in Sections 420.9071 (19), (20) and (28), F.S. However it is not the intent to limit an individual household's ability to devote more than 30% of its income for housing, and housing for which a household devotes more than 30% of its income shall be deemed Affordable if the first institutional mortgage lender is satisfied that the household can afford mortgage payments in excess of the 30% benchmark and, in the case of rental housing, does not exceed those rental limits adjusted for bedroom size. -5- 319 City of Miami Beach LHAP M. Welfare Transition Program: The City has developed a qualification system and selection criteria for applications for awards to eligible sponsors, which includes a description that demonstrates how eligible sponsors that employed personnel from the Welfare Transition Program will be given preference in the selection process. N. Monitoring and First Right of Refusal: In the case of rental housing, the staff or entity that has administrative authority for implementing the local housing assistance plan assisting rental developments shall annually monitor and determine tenant eligibility or, to the extent another governmental entity provides the same monitoring and determination, a municipality, county or local housing financing authority may rely on such monitoring and determination of tenant eligibility. However, any loan or grant, in the original amount of $3,000 or less shall not be subject to these annual monitoring and determination of tenant eligibility requirements. Tenant eligibility will be monitored at least annually for 15 years or the term of assistance, whichever is longer. Eligible sponsors that offer rental housing for sale before 15 years or that have other remaining mortgages funded under the SHIP Program must give a first right of refusal to eligible nonprofit organizations for purchase at the current market value for continued occupancy by eligible persons. 0. Administrative Budget: A detailed listing including line-item budget of proposed Administrative Expenditures is attached as Exhibit A. These are presented on an annual basis for each State fiscal year submitted. The City finds that the monies deposited in the local housing assistance trust fund shall be used to administer and implement the local housing assistance plan. In accordance with Chapter 67-37, Florida Administrative Code, the cost of administering the plan does not exceed 5 percent of the local housing distribution monies and program income deposited into the trust fund. The cost of administering the program may not exceed 10 percent of the local housing distribution plus 5% of program income deposited into the trust fund, except that small counties, as defined in s. 120.52(17), and eligible municipalities receiving a local housing distribution of up to $350,000 may use up to 10 percent of program income for administrative costs. The City of Miami Beach has adopted the above findings in the attached Resolution, Exhibit E. - 6 - 320 City of Miami Beach LHAP P. Program Administration: The City use a sponsor to carry out program activities. In order to identify a sponsor, the City will issue a Competitive Notice of Funding Availability (NOFA) or a for various not-for-profit and for-profit builders/developers to participate in the program. Through the NOFA 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: strong construction management quality materials. (2) in all applicant selection and income certification processes in accordance with local, state, and federal regulations in (4) Total project cost (5) Total number of units (6) Leveraging (7) AB+HW4ta~f*tt€~~~~~9!¥itl4fffrf,€Hf!a!taHl~,efltle€1!1ra!+Eta (8) ~«H\r---~±:~f+:W~ homeowners with HU nefftt!-t!WHeRSH!D Training/Counseling - 7 - 321 II. City of Miami Beach LHAP The Office of Real Estate, Housing and Community Development will review all responses to the NOFA to ensure compliance with the requirements of the NOFA/RFA as well as ~~-i:H:rmt6ai~ 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/RFA. with Rule Chapter 67-37.002(8) F.A.C. 67-37.005(8), Section 420.9075(3)(a), "Essential Personnel" are defined as income-eligible employees of Miami Beach businesses and organizations in the following industries: a. Accommodations Food (including arts, entertainment and recreation); Trade; c. Public Administration (including City of Miami employees); d. Care; and e. Education (including public school district employees). R. Initiatives for Green Building Design and Techniques NOTE: In the event preference is given to Essential SeNice Personnel, plan text must so state pursuant to Chapter 67-37.005(8), F.A. c. Description: SHIP Local Housing Assistance Plan 2010-2013 City of Miami Beach 322 -8 - City of Miami Beach LHAP a. Summary of the Strategy: Rehabilitation of single family, +fHl,{-HI~ H+:H++~ uurvt:<lr-B+ owner-occupied housing. The Program will provide rehabilitation assistance to very low, low, and moderate income owner occupied single family housing located within the corporate limits of the City of Miami Beach. Up to fifty (50) percent of the funds will be targeted to assist Program participants who are Essential Service Personnel, as defined on Section I (Q) of this Plan. If the demand for assistance from this target population is not sufficient to fully utilize these funds, the balance of the funds will be used to assist participants who are not from the target group. "Rehabilitation" will be defined as repairs or improvements that are needed for safe or sanitary habitation, correction of substantial code violations, or the creation of additional living space. Housing rehabilitated with SHIP funds must meet all applicable local codes, rehabilitation standards and ordinances, including, but not limited to, zoning ordinances. All projects must comply with the South Florida Building Code, Miami-Dade County Building Code, and City of Miami Beach Building Code. Additionally, all projects must comply with all other applicable laws, rules and regulations. 323 City of Miami Beach LHAP b. Fiscal Years Covered: ~+ld1-++~V+-+R~~~~.::+-~h:} 1 1 16 c. Income Categories to be served: Eligible persons/households that are very low, low, or moderate income. See also Section I (L) of this Plan. d. Maximum award as noted on the Housing Delivery Goals Charts: $40,000 e. Terms, Recapture and Default: Fifteen (15) years deferred payment loan at 0% interest. . Full balance due if property is sold, rented, refinanced or the property fails to be the primary residence during the fifteen year term. Notwithstanding the previous restrictions, the owner shall be allowed to refinance without being subject to the provisions set forth therein so long as the amount of the refinancing does not exceed the then outstanding balance of the first mortgage. Subordination will only be approved if the refinancing will lower the current mortgage payment and/or interest rate. The City's interests will be secured through the execution of a mortgage and note as well as a Restrictive Covenant delineating the recapture period and terms. f. Recipient Selection Criteria: All recipients of assistance must meet the applicable eligibility requirements as stipulated in the Florida Statutes, SHIP Rule, and this Plan. Applicants will be selected from a waiting list on a first come, first basis. g. Sponsor Selection Criteria: See Section I (P) of this Plan. h. Additional Information: Mobile homes and trailers are not eligible for this strategy. must be located within -10- 324 Description: B. City of Miami Beach LHAP Disaster Mitigation Recovery: a. Summary of the Strategy: Emergency Assistance to eligible b. households the occurrence of a natural disaster declared by Executive Order or -'"'"'''".'' In the event of a natural disaster a&-ee61aftffii--B-llf-H'le-'~ver:~F-----61f-----Efle au:H&~~*lB:a the City will commit all unencumbered SHIP funding available, as well as any other additional disaster funds that may become through the Florida Housing Finance Corporation or any other emergency funding sources. Disaster funds may be used, but not limited to, d&+ffi~rt:t 1) Purchase of emergency supplies; 2) Interim repairs to prevent further damage, tree and debris removal required to make the housing unit habitable; 3) Payment of insurance deductibles for rehabilitation of homes covered under homeowners' insurance policies; and 4) Other activities as proposed by the Federal Government, counties and eligible municipalities and approved by Florida Housing Finance Corporation. 1 1 c. Income Categories to be served: Eligible persons/households that are very low, low, or moderate income. See also Section I (L) of this Plan. d. Maximum award as noted on the Housing Delivery Goals Charts: $40,000 e. Terms, Recapture and Default: Fifteen (15) years deferred payment loan at 0% interest. . Full balance due if property is sold, rented, refinanced or the property fails to be the primary residence during the fifteen year term. Notwithstanding the previous restrictions, the owner shall be allowed to refinance without being subject to the provisions set forth therein so long as the amount of the refinancing does not exceed the then outstanding balance of the first mortgage. Subordination will only be approved if the refinancing will lower the current mortgage payment and/or interest rate. -11 - 325 The City's interests will be secured through the execution of a mortgage and note as well as a Restrictive Covenant delineating the recapture period and terms. f. Recipient Selection Criteria: All recipients of assistance must meet the applicable eligibility requirements as stipulated in the Florida Statutes, SHIP Rule, and this Plan. Applicants will be selected from a waiting list on a first come, first basis. g. Sponsor Selection Criteria: See Section I (P) of this Plan. h. Additional Information: Mobile homes and trailers are not eligible for this strategy. must be located within New Construction: a. Summary of the Strategy: To develop home ownership opportunities -12- 326 City of Miami Beach LHAP b. 1 1 1 1 16 c. Income Categories to be served: Eligible persons/households that are very low, low, or moderate income. See Section I (L) of this Plan. d. Maximum award is noted on the Housing Delivery Goals Charts: $40,000 e. Terms, Recapture and Default. Full balance due if property is sold, rented, refinanced or the property fails to be the primary residence during the fifteen years term. Notwithstanding the previous restrictions, the owner shall be allowed to refinance without being subject to the provisions set forth therein so long as the amount of the refinancing does not exceed the then outstanding balance of the first mortgage. Subordination will only be approved if the refinancing will lower the current mortgage payment and/or interest rate. The City's interests will be secured through the execution of a mortgage and note as well as a Restrictive Covenant delineating the recapture -13- 327 D. f. g. h. a. b. City of Miami Beach LHAP period and terms. Recipient Selection Criteria: All recipients of assistance must meet the eligibility requirements as stipulated in the applicable Florida Statutes, SHIP Rule, and this Plan. Applicants will be selected from a waiting list on a first come, first ready basis. Sponsor Selection Criteria: See Section I (P). Additional Information: this strategy. E-+Pat9ie-+te+::i*5+Ha Fiscal Years Covered: 1 1 16 c. Income Categories to be served: Eligible persons/households that are very low, low or moderate income. See Section I (L). d. Maximum award is noted on the Housing Delivery Goals Charts: $60,000 for Very Low and Low Income Persons and $40,000 for Moderate Income Persons e. Terms, Recapture and Default: Fifteen (15) years deferred payment -14- 328 City of Miami Beach LHAP loan at 0% interest. . Full balance due if property is sold, rented, refinanced or the property fails to be the primary residence during the 15-year term. Not withstanding the previous restrictions, the owner shall be allowed to refinance without being subject to the provisions set forth therein so long as the amount of the refinancing does not exceed the then outstanding balance of the first mortgage. Subordination will only be approved if the refinancing will lower the current mortgage payment and/or interest rate. Additionally, if the unit is sold prior to the extinction of the affordability period, part of the equity produced by the sale shall be reimbursed to the City as follows: If the unit is sold between the first and the tenth year, 50% of the ~rofit shall be paid to the City; if the unit is sold between the 11th and 15 h year, 25% of the profit shall be paid to the City. The City's interests will be secured through the execution of a mortgage and note as well as a Restrictive Covenant delineating the recapture period and terms. f. Recipient Selection Criteria: All recipients of assistance must meet the eligibility requirements as stipulated in the applicable Florida Statutes, SHIP Rule, and this Plan. Applicants will be selected from a waiting list on a first come, first basis. g. Sponsor Selection Criteria: See Section I (P) of this Plan. h. -15- 329 City of Miami Beach LHAP -16- 330 City of Miami Beach LHAP E. Rental Housing Development: a. Summary of the Strategy: ~~~**'am-'H:H=im>-Wi·J+Be-H**lte-EwamH}le -17- 331 City of Miami Beach LHAP b. Fiscal Years Covered: 1 1 1 16 c. Income Categories to be served: Eligible persons/households that are very low, low or moderate income. See Section I (L) of this Plan. d. Maximum award is noted on the Housing Delivery Goals Charts: $40,000 e. Terms, Recapture and Default: A Thirty (30) year deferred payment loan at 0% interest. Full balance of the SHIP subsidy will be due if the property is sold or transferred, or the property fails to be used for affordable housing during the thirty year term. The City may impose a reverter provision at the end of the term if it is found to be in the best interest of City to maintain the affordable housing beyond the affordability period, if the recipient decides to convert the rental development to all market rate development. The reverter clause will not be used if the recipient volunteers to keep a percentage of the units affordable to very low, low and moderate income households. Additionally, if the building is sold after the tenth year of the affordability -18- 332 City of Miami Beach LHAP period but prior to the extinction of the affordability period, in addition to the full repayment of the SHIP loan, part of the equity produced by the sale shall be also reimbursed to the City as follows: If the unit is sold between the eleventh and twentieth year, 50% of the profit shall be paid to the City; if the units is sold between the twenty-first and thirtieth year, 30% of the profit. The City's interests will be secured through the execution of a mortgage and note as well as a Restrictive Covenant delineating the affordability period and terms. f. Recipient Selection Criteria: All recipients of assistance must meet the eligibility requirements as stipulated in the applicable Florida Statutes, SHIP Rule, and this Plan. ~Hffi:ii±Hts1!\Mtt~-se~~HH:tl++~lfdtlt+HtHI'b+ g. Sponsor Selection Criteria: See Section I (P) of this Plan. h. Additional Information: located within me~)H}!:tFaJ:e!lfHJ'l:&-i:tt -19- 333 '/ ilf [ (•(';--:j f !CJ(!~ilJ'iti / '/ 01 [\Iii( !llli 1-S~-:;._lC;; ,:,-1,jl' l ]!:· • i II City of Miami Beach LHAP j i -20- 334 -21 - 335 City of Miami Beach LHAP g. lponGor loloction Criteria: See Section I (F?) of this F?lan. Ill. LHAP In addition Strategy A and Strategy B 420.9076(4) FS. below, list all incentives as provided in Expedited Permits as defined in Section 163.3164(7) and (8), F.S., for housing projects are to a degree than other a. incentive gives priority to oroleG[s when scheduling conferences with including, but not limited Fire, Planning and Zoning, Building, Historic Preservation, and Office of Real Estate, Housing and Community Development. Also, when the plans are permitting, first priority is given; further, the City has a form to identify projects by the Office of Housing & Community Development. The was by administrative on February, 1997. Ongoing Process .......... ::;.,.,for review of local policies, ordinances, regulations that of housing prior to their a. procedures: Prior to the adoption of any SHIP Local Hous1ng 1-\ssistance Plan 2010 · 2013 City of Miami Beach 336 ordinance, development plan, regulation, or that might impact housing, City -22- City of Miami Beach LHAP evaluates its potential effect and cost on affordable housing through the Director of the Office of Real Estate, Housing & Community Development. The Office of Real Estate, Housing and Community Development may present proposed legislation to applicable City boards and committees for their review as they may impact housing. The incentive was enacted by administrative action on February 1997. -23- 337 THIS PAGE INTENTIONALLY LEFT BLANK 338