98-22674 RESO
RESOLUTION NO.
98-22674
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING AN
AMENDED HOUSING ASSISTANCE PLAN FOR THE STATE HOUSING
INITIATIVES PARTNERSHIP (SHIP) PROGRAM FOR FISCAL YEARS
1995, 1996 AND 1997, WHICH PROVIDES FOR THE USE OF SHIP
PROGRAM FUNDS FOR REHABILITATION, DOWN PAYMENT
ASSISTANCE, CLOSING COST ASSISTANCE AND HOME OWNERSHIP
TRAINING, AND AUTHORIZING SUBMISSION OF THE AMENDED
HOUSING ASSISTANCE PLAN FOR REVIEW AND APPROVAL BY THE
FLORIDA HOUSING FINANCE CORPORATION.
WHEREAS, the State of Florida enacted the William E. Sadowski Affordable Housing Act (the Act)
on July 7, 1992, allocating a portion of new and existing documentary stamp taxes on deeds to local
governments for development and maintenance of affordable housing through the State Housing Initiatives
Partnership (SHIP) Program; and
WHEREAS, the Act requires that in order to qualify for funding, local governments develop and submit
a local Housing Assistance Plan outlining how the funds will be used; and
WHEREAS, on May 3,1995, the Mayor and City Commission approved and adopted a City of Miami
Beach Housing Assistance Plan for Fiscal Years 1995,1996 and 1997 by Resolution No. 95-21566 pursuant
to the requirements of the Act and the SHIP Rule issued by the Florida Housing Finance Corporation; and
WHEREAS, the Administration desires to amend the Housing Assistance Plan to include the use of
SHIP Program funds for rehabilitation, down payment assistance, closing cost assistance and home
ownership training; and
WHEREAS, amendments to the Housing Assistance Plan must be reviewed and approved by the
Florida Housing Finance Corporation.
NOW, THEREFORE, be it resolved by the Mayor and City Commission of the City of Miami Beach,
Florida, that the attached amended Housing Assistance Plan for the State Housing Initiatives Partnership
(SHIP) Program for Fiscal Years 1995, 1996 and 1997, which provides for the use of SHIP Program funds
for rehabilitation, down payment assistance, closing cost assistance and home ownership training, is hereby
approved and adopted; and that the City is hereby authorized to submit the Amended Housing Assistance
Plan for review and approval by the Florida Housing Finance Corporation.
Passed and adopted this 4th day of
March
,1998.
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Attest:
Mayor
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City Clerk
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APPROVED AS TO
FORM & lANGUAGE
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
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TO:
FROM:
SUBJECT:
COMMISSION MEMORANDUM NO.
{35-~g
Mayor Neisen O. Kasdin and DATE: March 4,1998
Members of the City Commission
Sergio ROdrigue~/ / ~
City Manager ~
TWO RESOL IONS OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA: (1.) APPROVING AND ADOPTING AN AMENDED
HOUSING ASSISTANCE PLAN FOR THE STATE HOUSING INITIATIVES
PARTNERSHIP (SHIP) PROGRAM FOR FISCAL YEARS 1995,1996 AND 1997,
WHICH PROVIDES FOR THE USE OF SHIP PROGRAM FUNDS FOR
REHABILITATION, DOWN PAYMENT ASSISTANCE, CLOSING COST
ASSISTANCE AND HOME OWNERSHIP TRAINING, AND AUTHORIZING
SUBMISSION OF THE AMENDED HOUSING ASSISTANCE PLAN FOR REVIEW
AND APPROVAL BYTHE FLORIDA HOUSING FINANCE CORPORATION; AND
(2.) AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AMENDED
STATE HOUSING INITIATIVES PARTNERSHIP PROGRAM AGREEMENT
BETWEEN THE CITY OF MIAMI BEACH AND MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION (MBCDC) AMENDING THE AGREEMENT
BETWEEN THE CITY AND MBCDC, DATED DECEMBER 4,1996, TO INCLUDE
THE USE OF SHIP PROGRAM FUNDS FOR REHABILITATION, DOWN
PAYMENT ASSISTANCE, CLOSING COST ASSISTANCE AND HOME
OWNERSHIP TRAINING, IN ACCORDANCE WITH THE AMENDED HOUSING
ASSISTANCE PLAN FOR FISCAL YEARS 1995, 1996 AND 1997.
ADMINISTRATION RECOMMENDATION:
Approve the Resolutions.
BACKGROUND:
"
The State Housing Initiatives Partnership (SHIP) Program, administered through the Florida
Housing Finance Corporation (FHFC), was established by the 1992 William E. Sadowski
Affordable Housing Act 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.
On May 3, 1995, the Mayor and City Commission approved Resolution 95-21566 adopting a
Housing Assistance Plan (Plan) as required by the SHIP Program. Subsequently, the Plan was
reviewed and approved by the Florida Housing Finance Corporation. In accordance with the SHIP
Program Rule, a minimum of seventy-five (75) percent of the funds must be used for rehabilitation,
new construction, or emergency repairs. Also, at least sixty-five (65) percent of the funds must be
AGENDA ITEM
RIA
3-~-9li
DATE
COMMISSION MEMORANDUM
PAGE 2
used as part of homeownership activities. The Plan adopted by the City included one strategy,
spending ninety (90) percent of the funds for rehabilitation of units being acquired through a
scattered-site homeownership program by income-eligible participants earning up to 120% of the
Area Median Income. The remaining ten (10) percent of the funds is used to cover the City's
administrative expenses associated with the Program.
The initial SHIP Program allocation received by the City was an allocation for fiscal year 1995 in
the amount of $336,366. In accordance with the adopted Plan, the City issued a Notice of Funding
Availability (N.O.F.A.) for these funds. Miami Beach Community Development Corporation
(MBCDC), formerly known as Miami Beach Development Corporation, was awarded $304,508.
On December 4,1996, a SHIP Program Agreement was executed with MBCDC providing for the
rehabilitation of a minimum of ten (10) dwelling units to be acquired by income-eligible participants
through MBCDC's existing Scattered-Site Home Ownership Program.
MBCDC has initiated rehabilitation of sixteen (16) units, of which eight (8) have already been
completed. To date, $140,375 of SHIP funds have been committed for these rehabilitations,
averaging $8,774 per unit. In accordance with the SHIP Program Rule, fiscal year 1995 funds must
be spent by June 30, 1998. Therefore, the balance of $164,132 in the MBCDC SHIP Program
Agreement must be expended by this date in order to avoid recapture by the FHFC. The Florida
Housing Finance Corporation recaptures funds unexpended by the deadline for redistribution
throughout the state.
MBCDC has successfully operated the Scattered-Site Home Ownership Program since 1990,
providing homeownership opportunities for 151 families. The Program has utilized funds from
Miami-Dade County's Documentary Surtax Program, combined with funds from the federal HOME
Investment Partnerships Program, to provide down payment assistance to participants in the form
of second and third mortgages. Miami-Dade County has provided an average of $500,000 annually
in Surtax funds to the Home Ownership Program. On January 28, 1998, the Miami-Dade County
Affordable Housing Advisory Board recommended making available $320,000 in Surtax funds for
the Home Ownership Program. MBCDC anticipates that these funds will not become available for
use until June 1998.
ANALYSIS:
This delay in the allocation of Documentary Surtax Program funds, combined with the restrictive
provisions of the adopted Housing Assistance Plan, threaten to prevent MBCDC from fully
expending the funds in the SHIP Program Agreement by June 30, 1998. The temporary lack of
Surtax funds will impede the processing of new units in the next few months. This, in turn, is
affecting the number of units that can be rehabilitated with SHIP Program funds.
Furthermore, the adopted Plan calls for the funds to be utilized for rehabilitation of scattered-site
units. Since the type of rehabilitation needed in the scattered-site units is primarily interior repairs,
the average rehabilitation cost per unit has been $8,774. The provisions of the existing Plan inhibit
the expeditious utilization of the SHIP Program funds.
In order to facilitate the use of the SHIP Program funds, the Plan is being amended to include
rehabilitation, down payment assistance, closing cost assistance and home ownership training.
All of these are eligible uses of funds under the SHIP Program Rule. In addition, the amended Plan
COMMISSION MEMORANDUM
PAGE 3
includes reVISions for the purpose of language clarification. The MBCDC SHIP Program
Agreement incorporates the provisions of the currently adopted Plan. Therefore, the Agreement
with MBCDC is also being amended in accordance with the amended Plan.
The existing SHIP Program Agreement with MBCDC provides for a construction supervision fee
computed at 15% of the value of the rehabilitation, subject to a maximum of one percent (1 %) of
the appraised value of the unit. As the average cost per rehabilitation project has been moderate,
the method of computing the construction supervision fee is modified by the amended Agreement
to provide a fee based on 10% of the value of the rehabilitation work plus one-half of one percent
(0.5%) of the appraised value of the dwelling unit.
Attached is a copy of the amended Plan with the revisions shown in underline/strikeout format.
After approval by the City Commission, the Plan will be submitted to the Florida Housing Finance
Corporation for review and approval. In addition, attached is a copy of the State Housing Initiatives
Partnership (SHIP) Program Agreement, as amended, between the City and MBCDC with revisions
also shown in underline/strikeout format.
At the March 4, 1998 Commission meeting, MBCDC is conducting a presentation celebrating the
one hundred fiftieth successful closing through their Home Ownership Program.
CONCLUSION:
The Administration recommends approval of two Resolutions of the Mayor and City Commission
of the City of Miami Beach, Florida: (1.) Approving and adopting an amended Housing Assistance
Plan for the State Housing Initiatives Partnership (SHI P) Program for fiscal years 1995, 1996 and
1997, which provides for the use of SHIP Program funds for rehabilitation, down payment
assistance, closing cost assistance and homeownership training, and authorizing submission of
the amended Housing Assistance Plan for review and approval by the Florida Housing Finance
Corporation; and (2.) Authorizing the Mayor and City Clerk to execute an amended State Housing
Initiatives Partnership Program Agreement between the City of Miami Beach and Miami Beach
Community Development Corporation (MBCDC) amending the Agreement between the City and
MBCDC, dated December 4, 1996, to include the use of SHIP Program funds for rehabilitation,
down payment assistance, closing cost assistance and homeownership training, in accordance with
the amended Housing Assistance Plan for fiscal years 1995, 1996 and 1997.
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