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98-22696 RESO RESOLUTION NO. 98-22696 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA APPROVING AND ADOPTING THE ATTACHED LOCAL HOUSING ASSISTANCE PLAN FOR THE STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM FOR STATE FISCAL YEARS 1998-1999, 1999- 2000 AND 2000-2001; AUTHORIZING THE NECESSARY CERTIFICATIONS BY THE MAYOR AND THE CITY CLERK; AND AUTHORIZING SUBMISSION OF THE LOCAL 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 housing through the State Housing Initiatives Partnership (SHIP) Program; and WHEREAS, the Act requires that in order to qualify for funding, local governments prepare 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 state fiscal years 1995-96, 1996-97 and 1997-98 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 has prepared a new Local Housing Assistance Plan for state fiscal years 1998-1999, 1999-2000 and 2000 -2001, in order to qualify to receive annual allocations of SHIP Program funds for eligible housing activities. 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 attached Local Housing Assistance Plan for the State Housing Initiatives Partnership (SHIP) Program for state fiscal years 1998-1999, 1999-2000 and 2000-2001; authorize the necessary certifications by the Mayor and the City Clerk; and authorize submission of the Local Housing Assistance Plan for review and approval by the Florida Housing Finance Corporation. Passed and adopted this 1st day of April, 1998. 114 Attest: Q I lu-t J- f CAlvcbv City Clerk Mayor APPROVED AS TO FORM & lANGUAGE & FOR EXECUTION SHIP9801.RES ) /~~/1( --- Date CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\cLmiami-beach.f1.us TO: FROM: SUBJECT: COMMISSION MEMORANDUM NO. J 81-98 Mayor Neisen O. Kasdin and Members of the City Co ission DATE: April 1, 1998 Sergio Rodriguez City Manager TWO RES IONS OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: (1.) APPROVING AND ADOPTING THE ATTACHED LOCAL HOUSING ASSISTANCE PLAN FOR THE STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM FOR STATE FISCAL YEARS 1998-1999, 1999-2000 AND 2000-2001; AUTHORIZING THE NECESSARY CERTIFICATIONS BY THE MAYOR AND THE CITY CLERK; AND AUTHORIZING SUBMISSION OF THE LOCAL HOUSING ASSISTANCE PLAN FOR REVIEW AND APPROVAL BY THE FLORIDA HOUSING FINANCE CORPORATION; AND (2.) APPROVING THE ADMINISTRATIVE COST AMOUNT FOR THE SHIP PROGRAM AT TEN (10) PERCENT OF THE ALLOCATION; AND APPROVING THE USE OF FIVE (5) PERCENT OF PROGRAM INCOME GENERATED BY THE SHIP PROGRAM FOR ADMINISTRATIVE COST. ADMINISTRATION RECOMMENDATION: Adopt 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 (Act) to stimulate the production of housing statewide. SHIP Program funds are derived from documentary stamp levies on real estate transactions. Annually, the FHFC allocates SHIP Program funds among participating jurisdictions on a formula basis. As required by the SHIP Program, on May 3, 1995, the City approved Resolution 95-21566 adopting a three (3) year Housing Assistance Plan covering state fiscal years 1995-96, 1996-97 and 1997-98. On March 4, 1998, the City adopted Resolution 98-22674 amending the Plan and providing for the use of SHIP Program funds for rehabilitation, down payment assistance, closing cost assistance and home ownership training in relation to a Home Ownership Program. During the City Commission AGENDA ITEM DATE C'7 A. 4-1-'12 15 COMMISSION MEMORANDUM Page 2 Meeting, members of the Commission expressed a desire to see the City undertake a housing assistance program for City employees. The Commission indicated that this assistance should be flexible: allowing eligible City employees to receive assistance with downpayments, closing costs, and/or mortgages. City Staff advised that they were in the process of initiating an Employee Home Ownership Assistance Program for City Employees utilizing funds from the SHIP Program, and that it is anticipated that this Program would be enacted in the near future. In light of the City Commission's desire and the expiration of the current Housing Assistance Plan on June 30, 1998, the attached Housing Assistance Plan has been developed. ANALYSIS: The SHIP Program requires that a new Local Housing Assistance Plan (PLAN) for state fiscal years 1998 through 2001 be adopted by the City and submitted to the FHFC for review and approval by May 2, 1998. The PLAN is to be implemented on July I, 1998, the SHIP Program allocation for the City is estimated to be $365,270 for state fiscal year 1998-99. The FHFC will not dispense SHIP Program funds to jurisdictions that do not have an adopted PLAN in place. The City has prepared the attached three- (3) year Local Housing Assistance Plan (PLAN) covering state fiscal years 1998 through 2001. The proposed PLAN transfers the previously approved plan into the new required format of the FHFC. The proposed plan incorporates only two (2) modifications. It adds previously adopted housing incentives to the PLAN and establishes an Employee Home Ownership Assistance Program. The incentives were originally submitted in the Local Housing Incentives Plan adopted by the City on April 2, 1996. All the incentives considered in the Local Housing Incentives Plan have been shown in the PLAN for the Commission's review. However, the incentives that the City has implemented and which will remain a part of this PLAN are underlined; incentives that the City Commission approved and are being deleted are shown in ,a strike-out format. In order to establish an Employee Home Ownership Program through the City's SHIP Program, the PLAN targets up to fifty (50) percent of the funds to provide assistance to eligible City Employees. City Employees earning up to 120 percent of the Area Median Income will be eligible for the Program. For example, a City Employee with a family of four (4) with an income of$53,520 would qualify for assistance. Each eligible City Employee may receive up to $30,259 in combined home ownership assistance. Also in accordance with the SHIP Program, the City must adopt a Resolution in order to utilize ten (10) percent of its SHIP allocation, plus five (5) percent of program income, for Administrative Costs . CONCLUSION: The Administration recommends approval of two Resolutions of the Mayor and City Commission of the City of Miami Beach, Florida: (I.) Approving and adopting the attached Local Housing Assistance Plan (PLAN) for the State Housing Initiatives Partnership (SHIP) Program for state Fiscal Years 1998-1999, 1999-2000 and 2000-2001; authorizing the necessary certifications by the Mayor 16 COMMISSION MEMORANDUM Page 3 and the City Clerk; and authorizing submission of the Local Housing Assistance Plan for review and approval by the Florida Housing Finance Corporation; and (2.) Approving the administrative cost amount for the Ship Program at ten (10) percent of the allocation; and approving the use of five (5) percent of program Income generated by the Ship Program for administrative cost. ~ SR/HSM/RM/MDC/SC SHIP9801.ME2 17