2007-26482 Reso
RESOLUTION NUMBER 2007-26482
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
$632,180 FROM FISCAL YEAR 2005/2006 TO CONTINUE AN
AFFORDABLE HOUSING 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 April l4, 2004, the Mayor and City Commission approved and adopted a
Local Housing Assistance Plan for fiscal years 2004/2005, 2005/2006, and 2006/2007 by Resolution
No. 2004-25537, 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 (NOF A) on August l8, 2006,
pursuant to the City's approved Local Housing Assistance Plan; and
WHEREAS, 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 Scattered-Site Home Ownership Program; 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; and
WHEREAS, through this Agreement MBCDC will utilize the SHIP Funding Year 2005/2006
funds in the amount of: $632,180 exclusively for rehabilitation, down payment assistance, closing
cost assistance, and home ownership counseling, for its Scattered-Site Home Ownership Program.
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 authorize 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
$632, l80 from fiscal year 200512006 to continue a rehabilitation component for the Affordable
Housing, 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 14th day of March
,2007.
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ATTEST:
~(l1J-~ f Lt~ J~
Michael Gongora
Vice-Mayor
CITY CLERK
Robert Parcher
T\AGENDA 12007\feb 1407\ConsentISHIP-MBCDC CommReso. doc
APPROVED AS TO
FORM & LANGUAGE
"FO cUTION
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COMMISSION ITEM SUMMARY
Condensed Title:
A resolution to provide $632,180 in funding from the SHIP Program NOFA for FY 2005/2006 to
continue a rehabilitation component for the Scattered-Site Home Ownership Program under the rules
of the SHIP Proqram and the City's Local Housinq Assistance Plan.
Ke Intended Outcome Su orted:
Increase access to workforce or affordable housing.
Issue:
Shall the City provide $632,180 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 Proqram requirements.
Item Summary/Recommendation:
On August 18, 2006 the City issued a SHIP Program NOFA in the amount of $632,180. MBCDC
responded to the NOFA proposing to utilize the SHIP funds to continue the rehabilitation component
of its successful Affordable Housing Scattered-Site Home Ownership Program. The funds will also be
used to provide down-payment assistance and closing cost assistance to a minimum of 15 units, in
order to provide home ownership opportunities to eligible homebuyers, including City employees. The
Affordable Housing 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.
Adviso Board Recommendation:
On November 17, 2006, the Loan Review Committee recommended that MBCDC be funded
$632,180 in SHIP Pro ram funds from FY 2005/06.
Financial Information:
Source of Amount Account Approved
Funds: 1 632,180 152.5721
2
8 3
PROG 4
aSPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
I Vivian P. Guzman
Si n-Offs:
Department Director
Assi,;;tant City Manager
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City Manager
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MiAMI BEACH
AGENDA ITEM
DATE
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City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
FROM:
Mayor David Dermer and Members of the City Commission
Jorge M. Gonzalez, City ManageQ..~
March 14,2007 I' 0
TO:
DATE:
SUBJECT: 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 $632,180 FROM FISCAL YEAR 2005/2006
TO CONTINUE AN AFFORDABLE HOUSING 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.
ANAL YSIS
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 April 14, 2004,
the City adopted a new Local Housing Assistance Plan for State fiscal years 2004/05,
2005/06 and 2006/07, which serves as the guideline to utilize SHIP Program funds for
rehabilitation of scattered-site units to provide home ownership opportunities.
The City has received a total of $682,972 of SHIP Program funds for fiscal year 2005/06,
which includes an allocation of $490,105, plus $35,630 in program income, $16,747 in
reprogrammed funds, and $140,490 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 $50,792 for
administrative costs from the $490,105 SHIP Program funds allocated to the City and
$35,630 of program income. The balance of funds from fiscal year 2005/06 was utilized to
issue a Notice of Funding Availability (NOFA) in the amount of $632,180 on August 18,
2006. The NOFA was advertised in The Miami Herald. 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 to provide home ownership
opportunities for eligible home buyers and rehabilitation of low-income owner occupied
scattered-site dwelling units. Responses to the NOFA were due on September 18, 2006.
One of the main eligible activities undertaken with SHIP funds in the City of Miami Beach is
assisting eligible first time homebuyers. Assistance is provided via funds to pay for closing
costs of homes, funding for down payment assistance to reduce the purchase price, and for
rehabilitation assistance of newly purchased housing units (condominiums). When assisting
low-income owner occupied units, the agency granted the funds will be responsible for the
direct supervision of the rehabilitation work to be performed.
The City received only one timely 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. 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 15
units (based on a maximum allocation offunds 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 ($45,480) for a one-person household, including City
employees, by June 30,2008. 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. Under the SHIP regulations, no more than 2%
($12,643) of the allocated funds ($632,180) may be allocated for home ownership
counseling. The amount of counseling assistance will be a maximum of $210.72 per home
buyer, based on assisting a minimum of 60 participants, and will decrease accordingly if
more prospective homebuyers are assisted through the program. The Scattered-Site Home
Ownership Program also utilizes funds leveraged by MBCDC from 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 and Community Development staff
reviewed the proposal and submitted it to the Loan Review Committee (LRC). On
November 17, 2006, the LRC reviewed the proposal and recommended to the Mayor and
City Commission that MBCDC be funded in the amount of $632,180 from fiscal year
2005/06. 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, over 300 units have been acquired and/or rehabilitated through the program,
including 16 units acquired by City employees participating in the program.
On April 14, 2004, the City adopted its current Local Housing Assistance Plan (Plan) for
State fiscal years 2004/05, 2005/06 and 2006/07. In accordance with the SHIP Program
Rule, the maximum purchasing price and assistance limit may be updated as necessary.
The Florida Housing Finance Corporation has provided the City with the updated Miami
Metropolitan Statistical Areas (Miami-Dade County) Average Purchase Price Limits of
$331,579 for new and existing homes (previously the respective figures were $158,855 for
new homes and $148,466 for existing homes).
CONCLUSION
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 $632,180 from fiscal year 2005/06 to continue a scattered-site home
ownership program for income-eligible home buyers in accordance with the SHIP Program
~fl and the City's Local Housing Assistance Plan.
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T :\AGEN DA 120071feb 14071ConsentlSH I P-MBCDC Comm Memo .doc