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C7F-Adopt Amendments To LHAP SHIP Program For FY 2013-14 2014-15 And 2015-16COMMISSION ITEM SUMMARY Gondensed Title: A Resolrtion Authorirng approving and adopting the amendments to the City's Local Housing Assistance Plan (LHAP) for the State Housing lnitiatives Partnership (SHIP) Program for fiscal years 201312014, 201412015; authorizing execution of any necessary certifications by the Mayor and the City Clerk; and further authorizing submission of the amended LHAP to the Florida Housing Finance Corporation (FHFC) for its review and Financia! !nformation: Supporting Data (Surveys, Environmental Scan, etc.): Item SummarY/Recommendation : @sPartnershipprogram(SHlP),wasestablishedtostimulatetheproductionof affordable housing statewide. Annually, FHFC allocates SHIP program funds among participating jurisdiclions on a formula basis. SHIP program funds serve to increase access to affordable housing for income-eligible participants whose income does not exceed 12Oo/o ol Area Median lncome (AMl). Entitlement communities ieceiving SHIP funds are required to produce and file with a Local Housing Assistance Plan (LHAP) which governJeach community's use of SHIP funds. A new LHAP must be filed every three years. The LHAP ielineates the strategies that will be employed to increase the availability of affordable housing for income-eligible residents within the jurisdiction. At its September 17,2014 meeting, the City Commission approved the acquisition of five affordable housing properties from Miami Beach Community Development Corporation (MBCDC) in order to secure the City assets invested in these properties. These properties are: Allen Apartments, Barclay Apartrnents, Lottie Apartments, Madeleine Village Apartments, and Neptune Apartments. The Florida Housing Finance Corporation (FHFC) has already expressed its support for staffs recommendation that the City's LHAP strategies be amended to provide for the acquisition and rehabilitation of affordable properties Uy tne City. Attached are the proposed changes to the LHAP which, in addition to allowing the City to use funds to acquire the Allen Apartments, also includes the mandated requirement to prioritize assistance to households with persons with disabilities, updates the members of the Administration, and corrects scrivene/s errors in the original document. Administration Recommendation - Adopt the Resolution. Source of Funds: Amount Account 1 2 3 OBPI Total Financial lmpact Summary: This item requires no funds. Maria Ruiz/ Housing & Community Services -Offs: Depaftment Director Assistntt City Manager C^ity Manager MLR&l KGB IoflI+-,JLM/ c1 trAGENDA ITEiIMIAMIBEACHo^rE t Flq'lq202 g MIAMI BEACH C:ty of Miomi Beoch, I200 Convention Center Drive, Miomi Beoch, Florido 33139, www.miomibeochfl.gov COMMISSION MEMORANDUM Mayor Philip Levine and Members Jimmy L. Morales, City Manager November 19,2014 A RESOLUTION OF THE MAYORIAND CITY COTUIMISSION OF THE CITY OF MIAMI BEAGH, FLORIDA, APPROVING AND ADOPTING THE AMENDMENTS TO THE CITY OF MIAMI BEACH LOCAL HOUSING ASSTSTANGE PLAN (LHAP) FOR THE STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM FOR FISCAL YEARS 2013t2014, 201412015, AND 201512016, AS REQUIRED BY THE STATE HOUSING INITIATIVES PARTNERSHIP PROGRAM ACT, SUBSECTIONS 420.907 . 420.9079; AUTHORIZING EXECUTION OF ANY NECESSARY CERTIFICATIONS BY THE inAYOR AND THE CITY GLERK; AND FURTHER AUTHORTZING SUBMISSION OF THE AMENDED LHAP TO THE FLORTDA HOUSING FINANCE CORPORATION (FHFC) FOR lrs REVIEW AND APPROVAL. ADMINISTRATION RECOMMENDATION Adopt the Resolution. BACKGROUND The State Housing lnitiatives 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 120o/o of Area Median lncome (AMl). During the economic recession, the State's SHIP allocations declined with the reduction in documentary stamp collections which was, in turn, a result of declining property sales transactions. The City's SHIP annual allocation has fluctuated considerably for the past several years with $574,211 in FY 200812009, the highest allocation, and no allocation in FY 2OOgl2O1O. W1h funding provided to the State through the National Mortgage Settlement, the City was allocated g121,31 1 for FY 201312014. The City's FY 2014115 allocation is $262,729. To: From: Date: Subject: 203 City Commission Memorandum Local Housing Assistance Plan November 19,2014 Page 2 of 3 Entitlement communities receiving SHIP funds are required to produce and file a Local Housing Assistance Plan (LHAP) which governs each community's use of SHIP funds. A new LHAP must be filed every three years. The LHAP delineates the strategies that will be employed to increase the availabiliiy of affordable housing for income-eligible residents within the jurisdiction. On April 17,2013, the City approved Resolution 2013-28178 adopting the LHAP for State fiscal years 2013t2014 through 2015t2016' The current plan provides for the use of SHIP funds utilizing the following assistance strategies: A. Owner-occupied Housing Rehabilitation B. Disaster Mitigation Recovery (Required by the State) C. New Construction for Homeownership D. Down PaymenUClosing Cost and Rehabilitation E. Rental Housing DeveloPment Additionally, the SHIP program guidelines impose some restrictions that require that the funds must be allocated as follows: o 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 (homebuyer activities or owner-occupied rehabilitation projects) o At least 30% of the overall funds must be reserved for activities that benefit low-income households; ando At least 30% of the overall funds must be reserved for activities that benefit very-low income households. The State imposed an additional restriction with its FY 2013114 funds requiring that at least 20% of overallfunds be utilized to assist households with a disabled member. During the LHAP's term, a jurisdiction may elect to use the funds for an eligible activity that is not indudld in its approved strategies, but it must amend its strategies to include the new activity and submit the amended LHAP to the State for approval. ANALYSIS At its September 17, 2014 meeting, the City Commission approved the acquisition of five affordable housing properties from Miami Beach Community Development Corporation (MBCDC) in order to secure the City assets invested in these properties. These properties are: Allen Apartments, Barclay Apartments, Lottie Apartments, Madeleine Village Apartments, and Neptune Apartments. At its October 29, 2014 meeting, the Commission approved a resolution amending the City's Neighborhood Stabilization Program 1 (NSP1) grant agreement to allocate these remaining grant funds to cover acquisition costs and create operating reserves for the Lottie, Madeleine, and Neptune Apartments. The Allen Apartments has an outstanding mortgage secured by Great Florida Bank, a private 204 City Commission Memorandum Local Housing Assistance Plan November 19,2014 Page 3 of 3 lending institution. This loan will require repayment upon the City's acquisition of the property. Funds in the amount of approximately $50,000 of SHIP funds will be utilized to assist with the repayment of this loan, and additional SHIP funds will be utilized for needed repairs to the property. The Florida Housing Finance Corporation (FHFC) has already expressed its support for staffs recommendation that the City's LHAP strategies be amended to provide for the acquisition and rehabilitation of affordable properties by the City. Attached are the proposed changes to the LHAP which, in addition to allowing the City to use funds to acquire the Allen Apartments, also includes the mandated requirement to prioritize assistance to households with persons with disabilities, updates the members of the Administration, and corrects scrivener's errors in the original document. CONCLUSION The Administration recommends approval and adoption of the amendments to the City's Local Housing Assistance Plan (LHAP) for the State Housing lnitiatives Partnership (SHIP) Program for fiscal years 201312014,201412015, and 201512016, as required by the State Housing lnitiatives Partnership Program Act, subsections 420.907 - 420.9079 authorizing execution of any necessary certifications by the Mayor and the City Clerk; and submission of the amended LHAP to the FHFC for its review and approval. JLM/KGB/MLR/ARB Attachment T: \AGE N DA\20'l 4\November 1 9\LHAP Memo 1 1 I 1 I l2O 1 4 205 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING THE AMENDMENTS TO THE CITY OF MIAMI BEAGH LOCAL HOUSING ASSISTANCE PLAN (LHAP) FOR THE STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM FOR FISCAL YEARS 201312014,201412015, AND 2015/2016, AS REQUTRED BY THE STATE HOUSING INITIATIVES PARTNERSHIP PROGRAM ACT, SUBSECTIONS 420.907 - 420.9079; AUTHORIZING EXECUTION OF ANY NECESSARY CERTIFICATIONS BY THE MAYOR AND THE CITY CLERK; AND FURTHER AUTHORIZING THE ADMISISTRATION TO SUBMIT THE AMENDED LHAP TO THE FLORTDA HOUSTNG FTNANCE CORPORATION (FHFC) FOR lTS REVIEW AND APPROVAL. 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 lnitiatives 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 (LHAP) outlining how funds will be used; and WHEREAS, on April 17, 2013, pursuant to Resolution No. 2013-28178, the Mayor and City Commission approved and adopted the City's LHAP for Fiscal Years 201312014,201412015 and 201512016, pursuant to the requirements of the Act and the SHIP Program Rule, issued by the Florida Housing Finance Corporation (FHFC); and WHEREAS, the City Commission provided the City Manager with the approval to pursue the acquisition of five affordable housing properties currently owned by Miami Beach Community Development Corporation at its September 17,2014; and WHEREAS, the Allen Apartments, one of the properties identified for acquisition, has a mortgage held by a private lending institution that will require payoff at time of acquisition; and WHEREAS, SHIP funds can be utilized to partially repay the mortgage for the Allen Apartments; and WHEREAS, this eligible use of SHIP funds is not included as an approved strategy in the City's current LHAP; and WHEREAS, the above prescribed use of SHIP funds requires an amendment to the City's current LHAP; and WHEREAS, the Administration has prepared the necessary amendments to the aforesaid LHAP. 206 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAM! BEACH, FLORIDA, that the Mayor and City Commission hereby approve and adopt the amendments to the City's Local Housing Assistance Plan (LHAP) for the State Housing lnitiatives Partnership (SHIP) Program for fiscal years 201312014, 201412015, and 201512016, as required by the State Housing lnitiatives Partnership Program Act, subsections 420.907 - 420.9079; authorize execution of any necessary certifications by the Mayor and the City Clerk; and further authorize the Administration to submit of the amended LHAP to the Florida Housing Finance Corporation (FHFC) for its review and approval. Passed and adopted this day of 2014. PHILIP LEVINE, MAYOR ATTEST: RAFAEL E. GRANADO, CITY CLERK T:IAGENDA\20'14\November 1 9U-HAP Resolution 1 1-19-2014 207 - EEIFT ffirA&Arffiffi&fiH GITY OF MIAMI BEAGH 2013 LHAP FINAL FISGAL YEARS GOVERED 201 31201 4, 2O1 4l2ol 5 and 201 51201 6 Prepared by: City of Miami Beach Office of Real Estate, Housing & Community Development 1700 Convention Center Drive Miami Beach, Florida 33139 208 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 lnput H. Advertising and Outreachl. Discrimination J. Support Services and Counseling K. Purchase Price Limits L. tncome Limits, Rent Limits, and Affordability M. Welfare Transition Program N. Monitoring and First Right of Refusal O. Administrative Budget P. Program Administration Q. Essential Service Personnel R. lnitiatives for Green Building Design and Techniques LHAP Housing Strategies A. Housing Rehabilitation B. Disaster Mitigation Recovery C. New Construction D. Down PaymenUClosing Cost and Rehabilitation E. Rental Housing DeveloPment LHAP lncentive 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 lnformation Sheet SHIP Local H*;sing Assist*nc+ Plan ?014 - 201S {Revised * Novcn'ri:er 1S. 2014) City *f Miami Beacl'r 3 I 15 16 -2- 209 t.PROGRAM DESCRIPTION: A. Name of the Participating Local Government and lnterlocal (if Applicable): CITY OF MIAMI BEACH lnterlocal: Yes No 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' Fiscal years covered by the Plan: 201312014 201412015 201512016 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. Local Housing PaftnershiP: SHIP Program encourages building active partnerships between government, tenders, 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. Leveraging: The Plans are intended to increase the availabilityof 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. B. c. D. E. F. $HlP Local Housing Assistarrce Flan 2014 - 2*16 {ftevis*d * Nr:ve'r':hcr 1S. ?$1'1J City o,f lv{iami Btach -3- 210 The City of Miami Beach is an Entitlement Community which receives HOME and CDBG funds from the U.S. Department of Housing and Urban Devetopment (HUD) that will be used, in combination with other localfunds, to leverage SHtP funds to increase affordable housing opportunities and reduce the cost of housing in the CitY. G. Public lnput: Public input was solicited through face to face meetings with housing providers, sociat service providers, local tenders and neighborhood associations through pubtic meetings. Public input was solicited through the local newspaper in the advertising of the Local Housing Assistance Plan and the Notice of Funding Availability (NO FA)/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 Ieast 30 days before the beginning of the application period. lf no funding is available due to a waiting list, no notice of funding availability is required. l. Discrimination: ln accordance with the provisions of ss.760.20-760.37, it is unlawful to discriminate on the basis of race, creed, retigion, color, age, sex, marital status, familial status, nationalorigin, 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,,,.".,,I lj#ffiseling (pre and post) 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 w1h 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. $HlP Local H*using Assisiance ?lan 2.A14 * 2{}1* (Revis*c * Nr:venri:er 19, ?014i City of Miami Seach -4- 211 L. K. Purchase Price Limits: Purchase Price Limits: The sates price or value of new or existing eligible housing may not exceed 9Oo/o 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 catendar 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 gO% of the median area purchase price established by the U.S. Treasury Department or any other independent study' The methodology used is: lndependent Study (copy attached) U.S. Treasury DePadment X_ Bond Study Numbers provided by Florida Housing Finance Corporation The purchase price limit for new and existing homes: $391.153 lncome Limits, Rent Limits, and Affordability: The lncome 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. lncome eligibility will be defined as follows: Very Low lncome (up to 50% AMI), Low lncome (up to 80% AMI), and Moderate Income (up to 12O% AMI). Affordable, means that monthly rents or mortgage payments including taxes and insurance do not exceed 30 percent of that lmount 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 thatthe 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. Welfare Transition Program : The C1y 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 personnelfrom the Welfare Transition Program will be given preference in the selection process. M. $HlP Local H*using Assistance Plan ?014 * ;:*1$ {Rovi*ec} - Nr}verr:i:e r 10. 2014} City of Miami Beach -5- 212 Monitoring and First Right of Refusal: ln 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. Adm i nistrative 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 Iocal housing assistance plan. tn 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 !oca! housing distribution ptus 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. 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 Locat Housing Assistance Plan. $HlF Local H*using Assisiirrce Plan 2$14 * 2*1{i {Revis+ei - Novcr-*rl:*r 1$.Z{slai City of Mirrm! *each _ 6 _ N. o. 213 The City may use a sponsor to carry out program activities. ln order to identify a sponsoi, the City will issue a Competitive Notice of Funding Availability (NOFA) oi Request forApplications (RFA) to solicit administrative services from not-for- profit and for-profit builders/developers to participate in the program. Through ihis 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 witl be given to eligible sponsors that employ staff from the Welfare Transition Program The Office of Real Estate, Housing and Community Developmentwill review a1 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. O. Essentia! Service Personnel ln accordance with Rule Chapter 67-37.002(8) F.A.C. and Chapter 67- 37.005(8), F.A.C. and Section420.9075(3Xa) FS, "EssentiatService Personnel" are defined as income-eligibte employees of Miami Beach businesses and organizations in the following industries: $HlP Local Hou*ing Assistsn*c Plan 2014 * 2016 {Revisec * N*ven'rber 1*.2414} City of Mia*i*eaclt -7 - 214 a. Accommodations and Food Services (including arts, entertainment and recreation); b. RetailTrade; c. Public Administration (including City of Miami Beach employees); d. Health Care; and e. Education (including public school district employees). R. lnitiatives for Green Building Design and Techniques ln 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 wilt require the use of the following features when economicallyfeasible 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 $HlP Local Housing Assisiance ?lar,3*14 * 2*1$ {Reviseil * Nove*tb*r 1S}. ?01"i} Ciiy of Miami Seach -8- 215 It. LHAP HOUSING STRATEGIES: 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 singte 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. lf 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. There are manv households with elderlv and/or disabled members that are in need of accommodations bevond the reqular rehabilitation and improvements activities. This includes. but is not limited to: qrab bars. ramps. altered kitchens and bathrooms. accessible doors and switches. etc. Such households will be qiven prioritv fundino until the Citv fulfills the minimum SHIP Prooram requirements for assistance to this taroet PoPulation. 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: 201312014,201412015 and 201512016 c. tncome Categories to be served: Eligible persons/households that are very Iow, low, or moderate income. See also Section I (L) of this Plan. d. Maximum award: $40,000 e. Terms, Recapture and Default Fifteen (15) year deferred, forgivable SHIP Locai H*;.,rsing Assistanc* ?lan 2*14 - 2C1{i {Rcvistd * Novsm$er 1*, ?-t\14i City of Miami Be*clt _ 9 - A. 216 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 propertyfails to be the owner's primary residence during the fifteen year term. Notwithstanding the previous restrictions, the owner shall be altowed to refinance without being subject to the provisions set forth therein, so tong 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 subordinate mortgage and note as well as a Restrictive Covenant delineating the recapture period and terms. Recipient Selection Criteria: All recipients of assistance must meet the applicable eligibility requirements as stipulated in the Florida Statutes, SHlp 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) of this Plan' Additionat tnformation: 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 M itigation Recovery: summary of the strategy: Emergency Assistance to eligible households after the occurrence of a disaster declared by Executive Order (President of the United States or Governor of the State of Florida). ln the event of a 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) lnterim 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 bythe Federal Government, counties and g. h. $HlP Locai H*usin6 A.ssistrrnce Fian 2014 - 20JS {Rcvised * N*ven:h*r 1*' 2{}14i City of tvli*mi *eacf"r -10- 217 eligible municipalities and approved by Florida Housing Finance Corporation. b. Fiscal Years Covered: 201312014.201412015 and 201512016 c. lncome Categories to be served: Eligible persons/householdsthatare very low, low, or moderate income. See also Section I (L) of this Plan. d. Maximum award: $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. Balance due if property is sold, rented, refinanced or the propertyfails to be the owneds 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 subordinate mortgage and note as well as a Restrictive Covenant delineating the recapture period and terms. f. Recipient Selection Criteria: All recipients of assistance must meetthe 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 Griteria: See Section I (P) of this Plan. h. Additionat tnformation: 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 Gonstruction: a. Summary of the Strategy: To develop homeownership opportunities to assist eligibte 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: 201312014,201412015 and 201512016 SHIP Loral H*using Assist*nct ?l*r: 2r)14 - 201* {ft*viseel * Novenr[:e r 1 S' 2014] City ol I'fiiami *tar:h _ f _ 218 d. tncome Categories to be served: Eligible persons/householdsthatare very low, low, or moderate income. See Section I (L) of this Plan. Maximum award: $40,000 Terms, Recapture and Default. Defened payment,zeto percent (0%) interest, construction loanto the developer. No paymentswillbe required during the construction phase. Once construction is completed and the unit(s) is sold the SHIP subsidywill be passed on to the new homeowner 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 batance due if property is sold, rented, refinanced orthe propertyfails to be the owner's primary residence during the fifteen year term. Notwithstanding the previous restrictions, the owner shall be atlowed 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 willonly be approved if the refinancing will lowerthe current mortgage payment and/or interest rate. The City's interests will be secured through the execution of a subordinate mortgage and note as well as a Restrictive Covenant delineating the recapture period and terms. Recipient Setection Criteria: All recipients of assistance must meetthe 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 Griteria: See Section | (P). Additionat lnformation: Mobile homes and trailers are not eligible for this strategy. Assisted properties must be located within the City of Miami Beach corPorate limits. Down PaymenUClosing Costs and Rehabilitation: a. summary of the strategy: Down payment, closing cost and rehabilitation assista nce 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 purchaserthat has not owned a home in at least the last three Years. b. Fiscat Years Covered: 201312014.201412015 and 201512016 g. h. D. $HlP Local H*using lrsslstance Pian t014 - 2{i1$ (Revis*d * Novenrb*r lg. 201'41 City of h4iari Beach -12- 219 lncome Categories to be served: Eligible persons/householdsthat are very low, low or moderate income. See Section I (L). Maximum award: $60,000 for Very Low and Low-lncome Persons and $40,000 for Moderate lncome Persons Terms, Recapture and Default: Fifteen (15) year deferred, forgivable loan, at zero percent (0%) interest. The loan will be forgiven at the end of the term. Futl balance due if property is sold, rented, refinanced orthe property fails to be the owner's primary residence during the fifteen year term. Notwithstanding the previous restrictions, the owner shall be allowed to refinance without being subject to the provisions set forth therein so long as the amount of the refinancing does not exceed the then outstanding balance of the first mortgage. Subordination will only be approved if the refinancing will lower the current mortgage payment and/or interest rate. Additionally, if the unit is sold prior to the e*inetien expiration of the affordability period, part of the equity produced by the sale shall be reimbursed to the City as follows: lf the unit is sold between the first and the tenth year,507o..of the p.rofit shall be paid to the City; if the unit is sold between the 1 t h and 1 Sth year, 25o/o of the profit shall be paid to the City. The City's interests will be secured through the execution of a subordinate mortgage and note as well as a Restrictive Covenant delineating the recapture period and terms. Recipient Selection Griteria: All recipients of assistance must meetthe eligibility requirements as stipulated in the applicable Florida Statutes, SHIP Rule, and this Plan. Applicants will be selected from a waiting list on a first come, first readY basis. Sponsor Selection Criteria: See Section I (P) of this Plan' Additional lnformation: Mobile homes and trailers are not eligible for this strategy. Eligible housing must be located within the corporate limits of the City of Miami Beach. E. Rental Housing DeveloPment: a. Summary of the Strategy: Funds will be provided to develepers{e$e d. e. f. g. h. sHlP Loca| Hcusing Assisi*nce Plan 2014 -2{}18 {Reviseci* Nr:verlber 1S. 2014} City sl MiamiB*ach -13- 220 b. G. ien inss- CitY of Miami Beach departments and to for-profit and non-profit developers to be used to finance the costs of acquisition and/or the hard and soft costs of rehabilitating multi-family buildings. Fiscat Years Covered: 201312014.201412015 and 201512016 tncome Categories to be served: Eligible persons/households that are very low, low or moderate income. See Section I (L) of this Plan. Maximum award: $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 affordabte 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 perieA+u+priorto the end of the affordability period, in addition to the full repayment of the SHIP loan, part of the equity produced bythe sale shall also be reimbursed to the City as follows: o lf the property is sold within five (5) years of purchase, the City is entitled to profits in the amount of the percentage of assistance related to the cost of the project, multiplied by three (3). . tf the property is sold within ten (10) years of purchase, the City is entitled to profits in the amount of the percentage of assistance related to the cost of the project, multiplied by two (2). o lf the property is sold @ in the eleventh purchase, the City is entitled to profits in the amount of the percentage of assistance related to the cost of the project, multiplied by one (1). The City's interests will be secured through the execution of a mortgage and note as well as a Restrictive Covenant delineating the affordability d. $H!P Local ll*usirrg Assistanct Pian ?CI14 *2A1* {ft*viseri- Nove*:b*:;'1S. ?$14} City of Mirrmi *earf:-14- 221 g. h. 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. Sponsor Selection Criteria: See Section I (P) of this Plan. Additional lnformation: Assisted properties must be located within the City of Miami Beach corporate limits. ttl. LHAP INCENTIVE STRATEGIES A. Name of the Strategy: Expedited Permitting Permits as defined in s. 163.3164(7) and (8) for affordable housing projects are expedited to a grealer degree than other projects. a. Established policv and orocedures: 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 policv 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 potentialeffect 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 Devetopment may present proposed legislation to applicable City boards $Hl13 Lccal Hausing Assis;tancr Plan 2014 *2td1* {Rerris*:* - hloverrrl:er 1L}. ?S14i City of MiamiSeasl"i -15- 222 and committees for their review as they may impact housing. The incentive was enacted by administrative action on February 1997. -qHlP Locai Housing Assistance Plan ?014 - 2A1E {Revised - Novembcr 1*. 2.{}14} City o{ L4iami *ea*h - 16 _ 223 ADMINISTRATIVE BUDGET $HlP Local H*1:sing As,sistanc* Slan 2CI14 - 2A18 {Revis,*:ri - Nove',3:b*:" is. ?$1d) City *{ Mi*rmi **aclt -17- 224 TIMELINE SHIP Local Ho;sing Assistance trlan 2014 - 2A18 iRevisod - Novemb*r 1*. ?t)14) City of Miami Bt**l"r -18- 225 Exhibit G HOUSING DELIVERY GOALS SHIP Locai H*using Assist;:nc* Flan2014 - 2C]'16 {Rcvised - Noven';$*;" 1t}' ?014} City of Mixmi *eacf":-19- 226 CERTIFICATION PAGE $HlP Local H**sing Assistance Plan ?014 -2}i:d {Re'riseci * November 1*.2*14} City ol Minn:i *each -20 - 227 $F1lF LocalHeiusing Assisi*nce Plan 2(}14 *?-A18 {Revised * l{r:vemtrer 1S. 2S14} City o{ Miamiileacl"t -21 - 228 Exhibit F PROGRAM INFORMATION SHEET SHIP Loca! |{ousing Assistance ?l*n2*14-?-A$ {Rer;is*cj* Novenrbcr 19.?*14i City of Mi*rni Bea*l'r -22 - 229