HomeMy WebLinkAbout2005-25776 Reso
RESOLUTION NUMBER 2005-25776
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA,
AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE THE ATTACHED STATE HOUSING
INITIATIVES PARTNERSHIP (SHIP) PROGRAM
AGREEMENT BETWEEN THE CITY AND MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION, WHICH
PROVIDES SHIP PROGRAM FUNDS, IN THE AMOUNT OF
$477,319, FROM FISCAL YEAR 2003/2004 TO CONTINUE A
REHABILITATION COMPONENT FOR THE SCATTERED-
SITE HOME OWNERSHIP PROGRAM PROVIDING
REHABILITATION, DOWN PAYMENT ASSISTANCE,
CLOSING COST ASSISTANCE AND HOME OWNERSHIP
COUNSELING, FOR UNITS PURCHASED BY ELIGIBLE
HOME BUYERS UNDER THE RULES OF THE SHIP
PROGRAM AND THE CITY'S LOCAL HOUSING
ASSISTANCE PLAN.
WHEREAS, the State of Florida enacted the William E. Sadowski Affordable Housing Act
( the Act) on July 7, 1992, allocating a portion of new and existing documentary stamp taxes on deeds
to local governments to stimulate the production of housing through the State Housing Initiatives
Partnership (SHIP) Program; and
WHEREAS, the Act requires that in order to qualify for funding, local governments develop
a Local Housing Assistance Plan outlining how the funds will be used; and
WHEREAS, on March 14, 2001, the Mayor and City Commission approved and adopted a
Local Housing Assistance Plan for Fiscal Years 2001/2002, 2002/2003, and 2003/2004 by
Resolution No. 2001-24447, pursuant to the requirements of the Act and the SHIP Rule issued by the
Florida Housing Finance Corporation; and
WHEREAS, the City issued a Notice of Funding Availability (NOFA) on July 29,2004,
pursuant to the City's approved Local Housing Assistance Plan; and
WHEREAS, the Administration now requests that the attached State Housing Initiatives
Partnership (SHIP) Program Agreement be approved by the Mayor and City Commission and
executed by the Mayor and City Clerk.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Clerk
are authorized to execute the attached State Housing Initiatives Partnership (SHIP) Program
Agreement between the City and Miami Beach Community Development Corporation, which
provides SHIP Program funds, in the amount of$477 ,319, from Fiscal Year 2003/2004 to continue a
rehabilitation component for the Scattered-Site Home Ownership Program providing rehabilitation,
down payment assistance, closing cost assistance and home ownership counseling, for units
purchased by eligible home buyers under the rules of the SHIP Program and the City's Local Housing
Assistance Plan.
Passed and adopted this 12th day of
ATTEST:
~~IT~~
T:\AGENDA\200S'JanI205\Consent\MBCDC.Reso SIDP Programdoc
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUnON
1/7/P.)
Date
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
~
Condensed Title:
A resolution to provide $477,319 funding from the SHIP Program NOFA for FY 2003/2004 to continue
a rehabilitation component for the Scattered-Site Home Ownership Program under the rules of the
SHIP Program and the City's Local Housing Assistance Plan.
Issue:
Shall the City provide $477,319 in SHIP Program funds to assist eligible home buyers with the
rehabilitation, down payment assistance, closing costs and home ownership counseling in accordance
with the SHIP Program requirements?
Item Summary/Recommendation:
On July 29, 2004 the City issued a SHIP Program NOFA for the amount of $477,319. MBCDC
responded to the NOFA proposing to utilize the SHIP funds to continue the rehabilitation component of
its successful Scattered-Site Home Ownership Program. The funds will also be used to provide down
payment assistance and closing cost assistance to a minimum of 14 units, in order to provide home
ownership opportunities to eligible homebuyers, including City employees. The Scattered-Site Home
Ownership Program also utilizes funds leveraged by MBCDC from other County and Federal sources.
The Administration proposes to enter into a SHIP Program agreement with MBCDC.
Advisory Board Recommendation:
On September 10, 2004, the Loan Review Committee recommended that MBCDC be funded $477,319
in SHIP Program funds from FY 2003/04.
Financial Information:
--------- ---...
Source of Amount Account Approved
Funds: 1 477,319 152.5721
2
SHIP 3
Program 4
-- Finance Dept. Total
477,319
City Clerk's Office Legislative Tracking:
I Vivian P. Guzman
Si n-Offs:
Department Director
City Manager
City Manager
AGENDA ITEM C. 7 G-
DATE /-Id-OS-
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.miamibeachfl.gov
To:
From:
Subject:
COMMISSION MEMORANDUM
Mayor David Dermer and Date: January 12, 2005
Members of the City Commission
Jorge M. Gonzalez ~ ~
City Manager 0 . 0
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE THE ATTACHED STATE
HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM
AGREEMENT BETWEEN THE CITY AND MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION, WHICH
PROVIDES SHIP PROGRAM FUNDS IN THE AMOUNT OF $477,319
FROM FISCAL YEAR 2003/2004 TO CONTINUE A
REHABILITATION COMPONENT FOR THE SCATTERED-SITE
HOME OWNERSHIP PROGRAM PROVIDING REHABILITATION,
DOWN PAYMENT ASSISTANCE, CLOSING COST ASSISTANCE
AND HOME OWNERSHIP COUNSELING, FOR UNITS PURCHASED
BY ELIGIBLE HOME BUYERS UNDER THE RULES OF THE SHIP
PROGRAM AND THE CITY'S LOCAL HOUSING ASSISTANCE
PLAN.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The State Housing Initiatives Partnership (SHIP) Program, administered through the Florida
Housing Finance Corporation, was established by the 1992 William E. Sadowski Affordable
Housing Act to stimulate the production of housing statewide. SHIP Program funds are derived
from documentary stamp levies on real estate transactions. Annually, the Florida Housing
Finance Corporation allocates SHIP Program funds among participating jurisdictions on a
formula basis. The City has participated in the SHIP Program since fiscal year 1995/96. As
required by the Florida Housing Finance Corporation, on March 14, 2001, the City adopted a
new Local Housing Assistance Plan for State fiscal years 2001/02, 2002/03 and 2003/04, which
serves as the guidelines to utilize SHIP Program funds for rehabilitation of scattered-site units to
provide home ownership opportunities.
The City has received a total of $520,867 of SHIP Program funds for fiscal year 2003/04, which
includes an allocation of $429,255, plus $12,457 in program income and $79,155 in recaptured
funds. Ten (10) percent of each fiscal year allocation and five (5) percent of program income
are utilized for administrative costs associated with the Program.
In accordance with the City's Local Housing Assistance Plan, the City utilized $43,548 for
administrative costs from the $520,867 SHIP Program funds allocated to the City. The balance
of funds from fiscal year 2003/04 was utilized to issue a Notice of Funding Availability (NOFA) in
the amount of $477,319 on July 29, 2004. The NOFA was advertised in English in The Miami
Herald and in Spanish in the Hola Amigos. In addition, notification of the NOFA was provided to
interested housing providers via direct mailing. The NOFA sought an experienced housing
provider to utilize SHIP Program funds for rehabilitation of scattered-site dwelling units to
provide home ownership opportunities for eligible home buyers. Responses to the NOFA were
due on August 27, 2004.
The City received only one proposal from the Miami Beach Community Development
Corporation (MBCDC) proposing to utilize the SHIP funds to continue the rehabilitation
component of its successful Scattered-Site Home Ownership Program. The amount of their
request was $477,319. In accordance with the City's Local Housing Assistance Plan, the SHIP
Program funds will be used to provide rehabilitation, down payment assistance, and closing cost
assistance to a minimum of 14 units (based on a maximum allocation of funds per unit of
$40,000) in order to provide home ownership opportunities to income-eligible home buyers with
annual earnings at or below 120 percent of area median income ($40,440) for a one-person
household, including City employees, by June 30, 2006. Properties to be acquired by the
participants are selected on an ongoing and scattered-site basis. Eligible participants enter into
a lottery system which determines their order in the waiting list. Concurrently, as part of this
program, home ownership counseling will be provided to a minimum of 60 income-eligible
participants. The Scattered-Site Home Ownership Program also utilizes funds leveraged by
MBCDC from the Miami-Dade County's Documentary Surtax Program and from the federal
HOME Program. These funds are utilized to provide down payment assistance to participants
in the form of second and third mortgages.
In accordance with the terms of the NOFA, the Housing Staff reviewed the proposal and
submitted it to the Loan Review Committee (LRC). On September 10, 2004, the LRC reviewed
the proposal and recommended to the Mayor and City Commission that MBCDC be funded in
the amount of $477,319 from fiscal year 2003/04. Since 1996, MBCDC has successfully
operated a rehabilitation component for their Scattered-Site Home Ownership Program with
funding from the City's SHIP Program. To date, 149 units have been acquired and
rehabilitated through the program including 12 units acquired by City employees participating in
the program.
On March 14, 2001, the City adopted its current Local Housing Assistance Plan (Plan) for State
fiscal years 2001/02, 2002/03 and 2003/04. In accordance with the SHIP Program Rule, the
maximum purchasing price and assistance limit may be updated as necessary by amending the
Plan. The Florida Housing Finance Corporation has provided the City with updated Miami MSA
(Miami-Dade County) Average Purchase Price Limits of $199,117 for new homes and $163,487
for existing homes (previously the respective figures were $158,855 for new homes and
$148,466 for existing homes); therefore, the Plan is being amended to incorporate these figures.
Simultaneously, the Plan is also being amended to update the assistance limit to a maximum of
$40,000 allocation of funds per unit, which was previously set at $32,259 back in 1996.
The Administration recommends that the Mayor and City Commission of the City of Miami
Beach, Florida, adopt a resolution authorizing the Mayor and City Clerk to execute the attached
State Housing Initiatives Partnership (SHIP) Program Agreement between the City and Miami
Beach Community Development Corporation, which provides SHIP Program funds in the
amount of $477,319 from fiscal year 2003/04 to continue a scattered-site home ownership
program for income-eligible home buyers in accordance with the SHIP Program Rule and the
City's Local Housing Assistance Plan.
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