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2001-24285 RESO RESOLUTION NUMBER 2001-24285 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING THE ATTACHED LOCAL HOUSING ASSISTANCE PLAN (PLAN) FOR THE STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM FOR STATE FISCAL YEARS 2001/02, 2002/03, AND 2003/04; 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; FURTHER, AUTHORIZING THE APPROPRIATION OF SHIP PROGRAM FUNDS FOR FISCAL YEAR 2001/02, IN THE AMOUNT OF $519,776; FISCAL YEAR 2002/03, IN THE AMOUNT OF $519,776; AND FISCAL YEAR 2003/04, IN THE AMOUNT OF $519,776; OR THE FINAL ALLOCATION AMOUNT, AS ADJUSTED BY THE FLORIDA HOUSING FINANCE CORPORATION; AND AUTHORIZING THE APPROPRIATION OF ANY INTEREST ACCRUED THEREON, FOR ELIGIBLE ACTIVITIES UNDER THE RULES OF THE SHIP PROGRAM. 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 govemments 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 1995/96, 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, on April 1, 1998, the Mayor and City Commission adopted Resolution No. 98- 22696, approving and adopting a Local Housing Assistance Plan for State Fiscal Years 1998/99, 1999/00, and 2000/0 I; and WHEREAS, the Administration has prepared a new Local Housing Assistance Plan for Fiscal Years 2001/02, 2002/03, and 2003/04, as required by the Florida Housing Finance Corporation in order to qualify to receive armual allocations of SHIP Program funds for eligible housing activities; and WHEREAS, the City's Loan Review Committee, at its February 2, 2001 meeting, reviewed and recommended that the Mayor and City Commission approve and adopt the attached Local Housing Assistance Plan (Plan) for the State Housing Initiatives Partnership (SHIP) Program for State Fiscal Years 2001/02, 2002/03, and 2003/04; and WHEREAS, the City expects to receive from the Florida Housing Finance Corporation an allocation of SHIP Program funds, in the amount of $519,776, for Fiscal Year 2001/02; $519,776, for Fiscal Year 2002/03; and $519,776, for Fiscal Year 2003/04, through the State Housing Initiatives Partnership (SHIP) Program; and WHEREAS, funds received by the City must be appropriated by the Mayor and City Commission prior to expenditure. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission approve and adopt the attached Local Housing Assistance Plan (Plan) for the State Housing Initiatives Partnership (SHIP) Program for State Fiscal Years 2001/02, 2002/03, and 2003/04; 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; further, authorizing the appropriation of SHIP Program Funds for Fiscal Year 2001/02, in the amount of $519,776; Fiscal Year 2002/03, in the amount of$519,776; and Fiscal Year 2003/04, in the amount of$519,776; or the final allocation amount, as adjusted by the Florida Housing Finance Corporation; and authorizing the appropriation of any interest accrued thereon, for eligible activities under the rules of the SHIP program. Passed and adopted this 14th day of March ,2001. ATTEST: ~~f~ CITY CLERK {fl MAYOR F:\DDHP\SALL\STEVE\SHIP\LHAP 2001 - Res.doc APPROVED AlTO FORM & LANGUAGE & FOR EXECUTION 5-- 2-<7 I uer. CITY OF MIAMI BEACH STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM LOCAL HOUSING ASSISTANCE PLAN (PLAN) FOR FISCAL YEARS 2001-2002, 2002-2003, 2003-2004 MARCH 14, 2001 For Information Contact: Miguel) Del Cernplllo, Housing Director Community r Economic Development Division 1700 Convention Center Drive Miami Beach, FL 33139 (305) 673-7260 FAX: 673-7772 V. VI. VII. VIII. IX. CITY OF MIAMI BEACH State Housing Initiatives Partnership (SHIP) Program LOCAL HOUSING ASSISTANCE PLAN (PLAN) State Fiscal Year(s): 2001-02/2002-2003/2003-2004 Table of Contents PROGRAM DESCRIPTION 2 a. Name of Local Government b. Program Description c. Fiscal Years of Local Housing Assistance Plan (PLAN) d. Public Input in PLAN Development e. Local Support Services 2 2 3 3 3 II. INTERLOCAL AGREEMENT 3 III. LOCAL HOUSING PARTNERSHIPS 3 a. Local Housing Partnerships Development Description b. Cost Reduction Strategy 3 4 IV. STRATEGIES 4 1. Assistance Strategies 4 A. Rehabilitation B. New Construction C. Closing Costs and Down Payment 4 7 10 Home Ownership Training 12 2. Incentive Strategies 12 TIMETABLE FOR EXPENDITURE 14 AFFORDABILlTY 14 a. Home Ownership b. Rental 14 14 ADVERTISEMENT AND OUTREACH 14 a. SHIP Program Availability b. Application Advertisement Period 14 14 ADMINISTRATIVE EXPENSES 15 a. Program Administration Description b. Administration Percentage c. Administrative Expenditures Breakout d. Consultants 15 15 15 15 Certification Page 16 X. Attachments 2 CITY OF MIAMI BEACH State Housing Initiatives Partnership (SHIP) Program LOCAL HOUSING ASSISTANCE PLAN (PLAN) State Fiscal Year(s): 2001-2002/2002-2003/2003-2004 I. PROGRAM DESCRIPTION a. City of Miami Beach b. The City of Miami Beach (City), a municipal corporation established under the laws of the State of Florida has designed this SHIP Housing Assistance Plan (hereafter referred to as the "PLAN") to implement Miami Beach's SHIP Housing Assistance Program, pursuant to Sections 420.907 et seq., Florida Statutes. The Program was established to make affordable residential units available to persons with very low-income, low-income, moderate income, and persons with special housing needs. The SHIP Plan details specific strategies intended to increase the availability of decent, safe and affordable housing units by combining public and private resources to establish a local housing partnership which will reduce the cost of housing. During State Fiscal Years 2001-2002, 2002-2003, and 2003-2004, the City of Miami Beach will use ninety percent (90%) of the SHIP allocation for home ownership activities: new construction (in accordance with the City's adopted Consolidated Plan), housing rehabilitation, emergency repair, down payment assistance, closing cost assistance and/or home ownership training. Simultaneously, at least seventy five percent (75%) of the SHIP allocation will be used to provide funds for construction activities: new construction (in accordance with the City's adopted Consolidated Plan), housing rehabilitation and emergency repair, which may include down payment assistance and/or closing cost assistance to newly constructed units or those receiving rehabilitation within twelve (12) months of closing. The PLAN is based on the previous Housing Assistance Plan adopted by the City for Fiscal Years 1998/99, 1999/2000, and 2000/2001. The PLAN incorporates the provisions and strategies of the previously implemented Housing Assistance Plan. The City of Miami Beach has also adopted a number of development incentives to encourage the development of affordable units within Miami Beach. These incentives have been taken from the Local Housing Incentives Plan and are being incorporated into the Local Housing Assistance Plan (pLAN) as required by Chapter 67-37, Florida Administrative Code, and Section 420.907, et seq., Florida Statutes. The City anticipates that an average of $19,500 of SHIP funds will be used per unit assisted. The amount of the executed sales contract for each unit will not exceed ninety (90) percent of the median area purchase prices for existing and new houses, as established by the U.S. Department of the Treasury. This PLAN complies with the requirements of Sections 420.907 et seq., Florida Statutes and Chapter 67-37, Florida 2 Administrative Code and is not governed by an inter-local agreement. c. The Local Housing Assistance Plan (pLAN) will cover state fiscal year(s) 2001-2002, 2002-2003, and 2003-2004. d. The City has adopted a Consolidated Plan as required by U.S. HUD. The Consolidated Plan identifies the City of Miami Beach's overall affordable housing needs and the strategy to address those needs. It provides guidance for the development of the strategies proposed under this Local Housing Assistance Plan (PLAN), as well as other housing plans in effect at any given time. The preparation ofthe Consolidated Plan required an extensive amount of input from all sectors of the population. The City of Miami Beach (City) has consulted with local agencies, for-profit and non-profit organizations and citizens, and social service and housing providers, in order to obtain information on the housing needs in the City. Using this input, the City developed its Consolidated Plan which requires that an annual plan and progress reports be made available for public comment and input. The Local Housing Assistance Plan (PLAN) is consistent with the Consolidated Plan, as well as the Housing Element of the City's Comprehensive Plan. The PLAN is based on the previous Housing Assistance Plan adopted by the City for Fiscal Years 1998-99, 1999-2000, and 2000-2001. The PLAN incorporates the provisions and strategies of the previously implemented Housing Assistance Plan. The City worked closely with the designated Community Housing Development Organization (CHDO) in developing its Local Housing Assistance Plan (PLAN). Also, the following groups active in local housing activities were furnished with a copy of the Local Housing Assistance Plan (PLAN): the Miami Beach Chamber of Commerce, the North Beach Development Corporation (NBDC), Miami Beach Housing Authority (MBHA), and the Miami Beach Community Development Corporation (MBCDC), the City's designated Community Development Housing Organization (CHDO), whose President serves as the Chair of the Affordable Housing Coalition. e. The following support services are available to the residents of affordable housing: youth services, child care, elder services, health services, home delivery of meals, and employment training. II. INTERLOCAL AGREEMENT (If applicable) Not Applicable m. LOCAL HOUSING PARTNERSHIPS a. The City of Miami Beach has developed housing partnerships with several non-profit and private for-profit housing developers and agencies. The City works closely with the designated Community Housing Development Organizations (CHDO), CDBG sub- 3 recipient organizations, community development corporations, local lenders, realtors, and others. These organizations are encouraged to participate in program activities and to assist in program implementation. The City has also worked closely with the Affordable Housing Coalition, which is composed of local housing providers and activists. b. The City of Miami Beach has implemented measures to reduce the cost of affordable housing. Some of the measures include: allocating funds under City's federally-funded Community Development Block Grant (CDBG) Program and the HOME Investment Partnerships Program to help reduce the cost of funds needed for property improvements; leveraging Miami-Dade County's Documentary Surtax Program to assist in home ownership activities; working with the Florida Power and Light Company to receive rebates for all energy improvements that are eligible under their approved Watt Wise Program for properties rehabilitated under the SHIP program; and leveraging Miami-Dade County's Documentary Surtax Program providing deferred payment loans to prevent additional cost burdens on low and very low income households. IV. STRATEGIES 1. Individual Strategies A. Rehabilitation: The City of Miami Beach will implement a multi-year strategy for State FY 2001-2002, FY 2002-2003, and FY 2003-2004, to further the City's goals relative to home ownership opportunities. The City's SHIP Home Ownership Program will help very low, low, and moderate income buyers, and persons with special needs purchase affordable housing in Miami Beach, as follows: at least 30% of SHIP funds will be used to produce units that will be for very low income persons earning at or below 50% of the median income, at least 30% of SHIP funds will be used to produce units that will be for low income persons whose income is at or below 80% of the median income, and the remaining SHIP funds will be used to produce units for persons at a moderate income level earning between 80% and 120% of the median income level. Up to fifty percent of the funds will be targeted to assist eligible City of Miami Beach staff participating in the program. If 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. In order to implement this strategy, scattered sites (e.g. condominium units) will be acquired and rehabilitated, by a selected sponsor, thus providing affordable home ownership opportunities as well as improving the City's existing housing stock. 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 additionalliving space. Housing that is rehabilitated with SHIP funds must meet all applicable local codes, rehabilitation standards, and ordinances including, but not limited to, zoning ordinances. All projects must comply 4 with the South Florida Building Code, the Miami-Dade County Building Code, and the City of Miami Beach Building Code. Additionally, all projects must comply with all other applicable laws, rules and regulations. The City intends to exercise flexibility in determining whether condominium units for this strategy may be purchased at individual sites or to allow the purchase of several units in one building, not to exceed more than one fifth of the units in the building. In general, the City will stress the need for the spatial deconcentration of assisted housing units throughout the City. The City of Miami Beach's Community/Economic Development Division will be the primary agency responsible for carrying out the strategies under the SHIP Housing Assistance Plan. The City anticipates that it will use a sponsor to carry out program activities. In order to identify a sponsor, the City will issue a Competitive Notice of Funding Availability (NOF A) for various not-for-profit and for-profit builders/developers to participate in the program. Through the competitive NOF A 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) Ability to provide strong construction management practices and to provide first quality materials, including landscaping if applicable (2) Ability to perform all applicant selection and income certification processes in accordance with local, state, and federal regulations (3) Ability to comply with the City's reporting requirements (4) Total project cost (5) Total number of units (6) Leveraging (7) Ability to conform with the City's plan for spatial deconcentration (8) Ability to provide homeowners with Home Ownership Counseling (9) Ability to provide individualized training to homebuyer on issues such as home maintenance and budgeting (10) Ability to demonstrate that the organization participates in the WAGES and Workforce Development Initiative program The Community/Econornic Development Division staff will review all responses to the NOFA to ensure compliance with the requirements of the NOFA as well as the eligibility 5 requirements, as provided in the Florida Statutes, 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. Eligible housing must be located within the corporate limits of Miami Beach, and preferably in one of the Community Development Target Areas. Eligible housing must conform to City Zoning requirements regarding use and density permitted (legal variances will be permitted). Manufactured housing, rental housing, and mobile homes shall not be considered eligible housing. All prospective condominium units must either be vacant or owner-occupied at the time of initial purchase, prior to re-sale to eligible SHIP recipients. All potential applicants for the SHIP Home Ownership Program will be screened for income eligibility and homeowner readiness. Applicants will be processed from a waiting list on a first come first ready basis, subject to funding availability and in such marmer as to comply with the statutory requirements. Since the City of Miami Beach's SHIP Housing Assistance Program is geared to providing units to very low, low and moderate income persons, the City anticipates it will exceed all SHIP set-aside requirements. Staff will review actual performance data to ensure that adjustments are made as necessary to remain in compliance with income targeting standards. Award of SHIP funds will be in the form of a deferred payment loan secured by a Restrictive Covenant Agreement, or other recorded instrument. If the unit is sold, transferred or ceases to serve as a primary residence, the homebuyer shall return to the City the full SHIP subsidy that enabled the homebuyer to buy the dwelling unit. The assisted unit must be occupied as a principal residence ofthe Owner, and may not be used as a rental. Use ofthe property for rental purposes is an event of default. Recapture of SHIP funds used for the rehabilitation of the assisted units will be as follows: assisted units that received under $15,000 will have a recapture period of five (5) years, and units that receive $15,000 or more will have a recapture period often (10) years. If the unit is sold, transferred, rented or refinanced during the recapture period for the rehabilitation assistance, the Owner shall repay to the City the full amount of SHIP subsidy funds at the time of any such sale, transfer, rental or refinancing of the unit. In the event that title to the unit is transferred, as a result of the death of the Owner to a surviving heir, or any other heir designated by the Owner, and said heir occupies the unit as a principal residence, the household income qualifications requirements shall be waived. However, should an heir fail to occupy the unit as a principal residence within six (6) months from the date of the Owner's death, the full amount of SHIP subsidy funds, shall become due and payable to the City within one year from the date of the Owner's death. In order to further ensure the enforcement of this subsection, any and all successors, heirs and assigns herein must obtain the prior written consent of the City Manager prior to the resale of the unit Assisted units that comply with the requirements of the HOME rule as HOME eligible units 6 will be utilized as HOME-Match units. When possible, the SHIP funds will be used with: U.S. Department of Housing and Urban Development HOME Program Funds, Community Development Block Grant (CDBG) Funds, other federal and state grant funds, and Miami- Dade County Documentary Surtax Funds. B. New Construction Proposals involving new construction will only be considered in accordance with the City's adopted Consolidated Plan adopted on July 1, 1998. To implement this strategy, new construction of scattered sites units (e.g. condominium units) will be undertaken by a selected sponsor, thus providing affordable home ownership opportunities as well as improving the City's housing stock. The City intends to exercise flexibility in determining whether condominium units for this strategy may be purchased at individual sites or to allow the purchase of several units in one building, not to exceed more than one fifth of the units in the building. In general, the City will stress the need for the spatial deconcentration of assisted housing units throughout the City. The City of Miami Beach will implement a multi-year strategy for State FY 2001-2002, FY 2002-2003, and FY 2003-2004, to further the City's goals relative to home ownership opportunities. The City's SHIP Home Ownership Program will help very low, low, and moderate income buyers, and persons with special needs to purchase affordable housing in Miami Beach as follows: at least 30% of SHIP funds will be used to produce units that will be for very low income persons earning at or below 50% of the median income, at least 30% of SHIP funds will be used to produce units that will be for low income persons whose income is at or below 80% of the median income, and the remaining SHIP funds will be used to produce units for persons at a moderate income level earning between 80% and 120% of the median income level. Up to fifty percent of the funds will be targeted to assist eligible City of Miami Beach staff participating in the program. If 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. The City of Miami Beach's CommunitylEconomic Development Division will be the primary agency responsible for carrying out the strategies under the SHIP Housing Assistance Plan. The City anticipates that it will use a sponsor to carry out program activities. In order to identify a sponsor, the City will issue a Competitive Notice of Funding Availability (NOF A) for various not-for-profit and for-profit builders/developers to participate in the program. Through the competitive NOF A 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) Ability to provide strong construction management practices and to provide first 7 quality materials, including landscaping if applicable (2) Ability to perform all applicant selection and income certification processes in accordance with local, state, and federal regulations (3) Ability to comply with the City's reporting requirements (4) Total project cost (5) Total number of units (6) Leveraging (7) Ability to conform with the City's plan for spatial deconcentration (8) Ability to provide homeowners with Home Ownership Counseling (9) Ability to provide individualized training to homebuyer on issues such as home maintenance and budgeting (10) Ability to demonstrate that the organization participates in the WAGES and Workforce Development Initiative program The Community/Economic Development Division staff will review all responses to the NOFA to ensure compliance with the requirements of the NOFA as well as the eligibility requirements, as provided in the Florida Statutes, 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 NOF A. Eligible housing must be located within the corporate limits of Miami Beach, and preferably in one ofthe Community Development Target Areas. Eligible housing must conform to City Zoning requirements regarding use and density permitted (legal variances will be permitted). Manufactured housing, rental housing, and mobile homes shall not be considered eligible housing. All prospective condominium units must either be vacant or owner-occupied at the time of initial purchase, prior to re-sale to eligible SHIP recipients. All potential applicants for the SHIP Home Ownership Program will be screened for income eligibility and homeowner readiness. Applicants will be processed from a waiting list on a first come first ready basis, subject to funding availability and in such manner as to comply with the statutory requirements. Since the City of Miami Beach's SHIP Housing Assistance Program is geared to providing units to very low, low and moderate income persons, the City anticipates it will exceed all SHIP set-aside requirements. Staff will review actual performance data to ensure that adjustments are made as necessary to remain in compliance with income targeting standards. 8 Award of SHIP funds will be in the form of a deferred payment loan secured by a Restrictive Covenant Agreement, or other recorded instrument. Ifthe unit is sold, transferred or ceases to serve as a primary residence, the homebuyer shall return to the City the full SHIP subsidy that enabled the homebuyer to buy the dwelling unit. The assisted unit must be occupied as a principal residence of the Owner, and may not be used as a rental. Use of the property for rental purposes is an event of default. Recapture of SHIP funds used for the rehabilitation of the assisted units will be as follows: assisted units that received under $15,000 will have a recapture period of five (5) years, and units that receive $15,000 or more will have a recapture period often (10) years. If the unit is sold, transferred, rented or refinanced during the recapture period for the rehabilitation assistance, the Owner shall repay to the City the full amount of SHIP subsidy funds at the time of any such sale, transfer, rental or refinancing of the unit. If the unit is sold, transferred, rented or refinanced during the recapture period, the Owner shall repay to the City the full amount of SHIP subsidy funds at the time of any such sale, transfer, rental or refinancing ofthe unit. The assisted unit must be occupied as a principal residence of the Owner for the duration of the term set forth, and may not be used as a rental property during that period. Use of the property for rental purposes is an event of default. In the event that title to the unit is transferred, as a result of the death of the Owner to a surviving heir, or any other heir designated by the Owner, and said heir occupies the unit as a principal residence, the household income qualifications requirements shall be waived. However, should an heir fail to occupy the unit as a principal residence within six (6) months from the date of the Owner's death, the full amount of SHIP subsidy funds, shall become due and payable to the City within one year from the date of the Owner's death. In order to further ensure the enforcement of this subsection, any and all successors, heirs and assigns herein must obtain the prior written consent of the City Manager prior to the resale of the unit. Assisted units that comply with the requirements of the HOME rule as HOME eligible units will be utilized as HOME-Match units. When possible, the SHIP funds will be used with: U.S. Department of Housing and Urban Development HOME Program Funds, Community Development Block Grant (CDBG) Funds, other federal and state grant funds, and Miami- Dade County Documentary Surtax Funds. 9 C. Closing Costs and Down Payment In order to implement this strategy, Closing Costs and Down Payment Assistance will be made available for the purchase of scattered sites units (e.g. condominium units) undertaken by a selected sponsor, thus providing affordable home ownership opportunities to qualified persons. The City intends to exercise flexibility in determining whether condominium units for this strategy may be purchased at individual sites or to allow the purchase of several units in one building, not to exceed more than one fifth of the units in the building. In general, the City will stress the need for the spatial deconcentration of assisted housing units throughout the City. The City of Miami Beach will implement a multi-year strategy for State FY 2001-2002, FY 2002-2003, and FY 2003-2004, to further the City's goals relative to home ownership opportunities. The City's SHIP Home Ownership Program will help very low, low, and moderate income buyers, and persons with special needs purchase affordable housing in Miami Beach, as follows: at least 30% of SHIP funds will be used to produce units for very low income persons earning at or below 50% of the median income, at least 30% of SHIP funds will be used to produce units for low income persons whose income is at or below 80% of the median income, and the remaining SHIP funds will be used to produce units for persons at a moderate income level earning between 80% and 120% ofthe median income level. Up to fifty percent of the funds will be targeted to assist eligible City of Miami Beach staff participating in the program. If 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. The City of Miami Beach's Community/Economic Development Division will be the primary agency responsible for carrying out the strategies under the SHIP Housing Assistance Plan. The City anticipates that it will use a sponsor to carry out program activities. In order to identifY a sponsor, the City will issue a Competitive Notice of Funding Availability (NOFA) for various non-profit and for-profit builders/developers to participate in the program. Through the competitive NOF A 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) Ability to Implement Closing Costs and Down payment Assistance Strategy (i.e., staffing, experience, facilities, etc.) (2) Ability to perform all applicant selection and income certification processes in accordance with local, state, and federal regulations 10 (3) Ability to comply with the City's reporting requirements (4) Total project cost (5) Total number of units (6) Leveraging (7) Ability to conform with the City's plan for spatial deconcentration (8) Ability to provide homeowners with Home Ownership Counseling (9) Ability to provide individualized training to homebuyer on issues such as home maintenance and budgeting (10) Ability to demonstrate that the organization participates in the WAGES and Workforce Development Initiative program The Community/Economic Development Division staff will review all responses to the NOFA to ensure compliance with the requirements of the NOFA as well as the eligibility requirements, as provided in the Florida Statutes, the SHIP Ordinance, Resolutions and this SHIP 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. Eligible housing must be located within the corporate limits of Miami Beach, and preferably in one ofthe Community Development Target Areas. Eligible housing must conform to City Zoning requirements regarding use and density permitted (legal variances will be permitted). Manufactured housing, rental housing, and mobile homes shall not be considered eligible housing. All prospective condominium units must either be vacant or owner-occupied at the time of initial purchase, prior to re-sale to eligible SHIP recipients. All potential applicants for the SHIP Home Ownership Program will be screened for income eligibility and homeowner readiness. Applicants will be processed from a waiting list on a first come first ready basis, subject to funding availability and in such manner as to comply with the statutory requirements. Since the City of Miami Beach's SHIP Housing Assistance Program is geared to providing units to very low, low and moderate income persons, the City anticipates it will exceed all SHIP set-aside requirements. Staff will review actual performance data to ensure that adjustments are made as necessary to remain in compliance with income targeting standards. Award of SHIP funds will be in the form of a deferred payment loan secured by a Restrictive Covenant Agreement, or other recorded instrument. If the unit is sold, transferred or ceases to serve as a primary residence, the homebuyer shall return to the City the full SHIP subsidy that enabled the homebuyer to buy the dwelling unit. The assisted unit must be occupied as 11 a principal residence of the Owner, and may not be used as a rental. Use ofthe property for rental purposes is an event of default. Recapture of SHIP funds used for the rehabilitation of the assisted units will be as follows: assisted units that received under $15,000 will have a recapture period of five (5) years, and units that receive $15,000 or more will have a recapture period often (10) years. If the unit is sold, transferred, rented or refinanced during the recapture period for the rehabilitation assistance, the Owner shall repay to the City the full amount of SHIP subsidy funds at the time of any such sale, transfer, rental or refinancing of the unit. In the event that title to the unit is transferred, as a result of the death of the Owner to a surviving heir, or any other heir designated by the Owner, and said heir occupies the unit as a principal residence, the household income qualifications requirements shall be waived. However, should an heir fail to occupy the unit as a principal residence within six (6) months from the date of the Owner's death, the full amount of SHIP subsidy funds, shall become due and payable to the City within one year form the date of the Owner's death. In order to further ensure the enforcement of this subsection, any and all successors, heirs and assigns herein must obtain the prior written consent of the City Manager prior to the resale of the unit. In the event that the assisted unit is a HOME-Match unit, then the recapture provisions of the HOME Program shall apply to the SHIP portion of the subsidy in the unit and shall supersede the above recapture provisions. When possible, the SHIP funds will be used with: U.S. Department of Housing and Urban Development HOME Program Funds, Community Development Block Grant (CDBG) Funds, other federal and state grant funds, and Miami- Dade County Documentary Surtax Funds. Home Ownership Training All recipients of SHIP Program funds will be required to offer Home Ownership Training to prospective homebuyers and homeowners. Home Ownership Training will help to 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 with 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. BUD. 2. Incentives The Mayor and City Commission of the City of Miami Beach, Florida, adopted an Affordable Housing Incentives Plan on April 2, 1996, in compliance with City of Miami Beach Ordinance No. 95-2989, City of Miami Beach Resolution No. 95-21556, the Florida Administrative Code, and section 420.9076, Florida Statutes. The following incentives have been adopted and incorporated into the PLAN. 12 A. The definition originally adopted by the City defined "Affordable" in accordance with the provisions ofthe SHIP Program Rule at the time. Since then, the SHIP Program Rule has been amended. Therefore, in accordance with the amended SHIP Program Rule, the City adopted the following definition. "Affordable" means that monthly mortgage payments, including taxes and insurance, do not exceed 30 percent of an amount representing the percentage of the area's median annual gross income for the household as indicated in subsections (28), (29), or (41). However, it is not the intent to limit an individual household's ability to devote more than 30 percent of its income for housing. Housing for which a household's ability to devote more than 30 percent of its income shall be deemed affordable if the institutional first mortgage lender is satisfied that the household can afford mortgage payments in excess of the 30 percent benchmark. The incentive is functioning as intended. The incentive was implemented by City of Miami Beach Ordinance No. 95-2989 and Resolution No. 95-21567. B. The City of Miami Beach has implemented "the expedited processing of permits for affordable housing projects." This incentive gives priority to designated affordable housing projects when scheduling Pre-Design Conferences with all relevant agencies including but not limited to: Fire, Planning & Zoning, Building, Historic Preservation, Public Works, Americans with Disabilities Act (ADA), and Housing Division of the Community/Economic Development Department. Also, when the plans are ready for permitting, first priority is given to them; further the City has developed a form to identify the projects reviewed by the Housing Division. The form is included in the permit application package to indicate that the project is designated as meeting the affordable housing criteria. The Housing Director acts as liaison to coordinate and expedite the application with all relevant agencies. The incentive is functioning as intended. It was enacted by administrative action on February 24,1997. C. The City of Miami Beach has implemented a process by which the City considers, before adoption, procedures and policies that have a significant impact on the cost of housing. 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 potential effect and cost on affordable housing. All such items are submitted to the City's Housing Division of the Community/Economic Development Department for review and analysis to determine if the effect is significant. The Housing Division may provide proposed legislation to applicable Boards and Committees for review. The incentive is currently working as intended. It was enacted by administrative action on February 24, 1997. 13 V. TIMETABLE FOR EXPENDITURE Timetables for the expenditure of SHIP fimds for State Fiscal Years 2001-2002, 2002-2003, and 2003-2004 are located in the appendix of this document. The strategies under this SHIP Housing Assistance Plan shall be monitored on an ongoing basis to ensure that SHIP Funds are expended in a timely manner. As a plan contingency, if the City determines that SHIP Funds can not be fully expended within the establish time frame by a current strategy, the City will retarget funding to facilitate the prompt expenditure funds. Funds will be retargeted to populations with higher demands for services and/or reallocated to strategies that are functioning as intended. The Housing Division will establish a system to ensure that adequate records are kept and maintained for compliance with monitoring requirements. VI. AFFORDABILITY a. Home Ownership As required by the Florida Housing Finance Corporation, the City's SHIP Program will serve very low income (50% of median income) buyers, low income (80% of median income) buyers, and moderate income (80% to 120% of median income) buyers, and persons with special needs purchase affordable housing in Miami Beach. Annual income limits adjusted for family size, as established by the Florida Housing Finance Corporation, will be used to determine applicant eligibility for the program. These guidelines are established and updated by the U.S. Department of Housing and Urban Development to determine gross annual household income. Affordable means that monthly mortgage payments including taxes and insurance do not exceed 30 percent of the median annual gross income for the households. However, it is not the intent to limit an individual household's ability to devote more than 30 percent of its income for housing, and housing for which a household devotes more than 30 percent of its income shall be deemed affordable if the first institutional mortgage lender is satisfied that the household can afford mortgage payments in excess of the 30 percent benchmark. b. Rental (If applicable) Not Applicable VII. ADVERTISEMENT AND OUTREACH a. The City will utilize local print media, including advertising in publications read by area minority groups. The City may announce the availability of SHIP funds through announcements at community and civic group meetings, flyers to social services agencies, and through its internal communications network. The SHIP programs will be 14 affirmatively marketed without regard to race, creed, religion, color, age, sex, sexual orientation, marital status, familial status, handicap or national origin. b. The City of Miami Beach will publish the Notice of Funding Availability (NOF A) for the SHIP funds in a local newspaper of general circulation at least 30 days prior to accepting applications for assistance. VIII. ADMINISTRATIVE EXPENSES a. The City of Miami Beach's Housing Division is responsible for the administration of the SHIP Program. The City Staff prepares and implements the Local Housing Assistance Plan (PLAN). The Staff prepares Resolutions and all other necessary documentation for approval by the City Commission including amendments to the PLAN. In addition, City staff prepares and submits to the Florida Housing Finance Corporation (FHFe) the required armual reports. The City also interacts with the FHFC and prepares all advertisements. The Staff prepares and evaluates the Notices of Funding Availability (NOFA) to secure program sponsors. The Staff prepares and implements necessary agreements with the sponsors selected to provide services. The City conducts ongoing monitoring of the sponsors for compliance with the PLAN and operates the SHIP Tracking System. The Staff also reviews requests for reimbursements provided by the sponsors and prepares documentation of corresponding payments. Other Staff functions include inspections and technical assistance. b. Up to ten (10) percent of the SHIP allocation will be utilized to offset administrative expenses for the program. c. A detailed listing of administrative expenditures for each fiscal year of the PLAN is outlined in Table 1. The table includes the salary for one full-time Housing Specialist. Table of Administrative Expenses Administrative Expenses FY 2001-2002 FY 2002-2003 FY 2003-2004 Salaries $49,220. $49,220 $49,220 AdvertisingfMarketing $ 520 $ 520 $ 520 Miscellaneous $ 0 $ 0 $ 0 Total Expenses $49,740 $49,740 $49,740 (10% of Allocation) Note: For FY 2002-2003 and FY 2003-2004 allocation amounts have been projected based on the estimated allocation provided by the Florida Housing Finance Corporation for FY 2000-2001. d. The City of Miami Beach currently does not intend to use outside consultants as a part of its SHIP Program. 15 CERTIFICATION TO FLORIDA HOUSING FINANCE CORPORATION Local Govemment: City of Miami Beach Cellflty/City (1) The local government will advertise the availability of SHIP funds pursuant to Florida Statutes. (2) All SHIP funds will be expended in a marmer which will insure that there will be no discrimination on the basis of race, creed, color, age, sex, familial status, handicap, religion, or national origin. (3) A process for selection of recipients for funds has been developed. (4) The eligible municipality or county has developed a qualification system for applications for awards. (5) Recipients of funds will be required to contractually commit to program guidelines. (6) The Florida Housing finance Corporation will be notified promptly if the local govemment (or interlocal entity) will be unable to comply with the provisions of the plan. (7) The Local Housing Assistance Plan shall provide for the expenditure of SHIP funds within 24 months following the end of the State fiscal year in which they are received. (8) The plan conforms to the Local Government Comprehensive Plan, or that an amendment to the Local Govemment Comprehensive Plan will be initiated at the next available opportunity to insure conformance with the Local Housing Assistance Plan. (9) Amendments to the approved Local Housing Assistance Plan shall be provided to the Corporation with in 21 days after adoption. (10) The trust fund shall be established with a qualified depository for all SHIP funds as well as moneys generated from activities such as interest earned on loans. (11) Amounts on deposit in the local housing assistance trust fund shall be invested as permitted bylaw. (12) The local housing assistance trust fund shall be separately stated as a special revenue fund in the local governments audited financial statements, copies of the audits will be forwarded to the Corporation as soon as available. (13) An interlocal entity shall have its local housing assistance trust fund separately audited for each state fiscal year, and the audit forwarded to the Corporation as soon as possible. 16 (14) SHIP funds will not be pledged for debt service on bonds or as rent subsidies. (15) Developers receiving assistance from both SHIP and the Low Income Housing Tax Credit (LlliTC) Program shall comply with the income, affordability and other LlliTC requirements, Similarly, any units receiving assistance from other federal programs shall comply with all Federal and SHIP program requirements. (16) Loans shall be provided for periods not exceeding 30 years, except for deferred payment loans or loans that extend beyond 30 years which continue to service eligible persons. (17) Rental Units constructed or rehabilitated with SHIP funds shall be monitored at least annually for 15 years for compliance with tenant income requirements and affordability requirements. 1~~ OriofEI1!!f""," WItness Neisen O. Kasdin. Mavor Type Name and Title March 19.2001 Date OR APPROVED AS TO FORM. LANGUAGE & FOR EXECUTION _~ f cudv- Attest: (Seal) I~DI PIan2001-04.doc 17 State Housing Initiatives Partnership (SHIP) Program Local Housing Assistance Plan Program Information Sheet Please complete the following information: LOCAL GOVERNMENT: City of Miami Beach CHIEF ELECTED OFFICIAL: Mavor Neisen O. Kasdin ADDRESS: 1700 Convention Center Drive. 4th Floor Miami Beach, Florida 33139 TELEPHONE: (305) 673-7106 FAX: (305) 673-7030 CONTACT PERSON: Miellell Del Camoillo - HOllsine Director ADDRESS: 1700 Convention Center Drive. 3rd Floor Miami Beach. Florida 33139 TELEPHONE: (305) 673-7260 FAX: (305) 673-7772 INTERLOCAL AGREEMENT: '\'ESrI!Il (If yes, list other participants in the interloca1 agreement) (The following information must be furnished to the Agency before any funds can be disbursed) LOCAL GOVERNMENT EMPLOYER FEDERAL ID NUMBER: 59-600372 MAIL DISBURSEMENT TO: ADDRESS: Miellell Del Camoillo - HOllsin~ Director 1700 Convention Center Drive. 3rd Floor Miami Beach. 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Q) ffi (;l !lea> <:":::::1 g a:g.g m ~ '" t/):T:T ,,-"'''' 030- 5.0"0 0.,,_ cr g:r (1) Q) ~ ::i" 5. r- n _, c ~ !e. g.w"t) F!- SocS '" jjJ ~3 <" )> ~g ~. ~ ='" 0'''' ~. g. ~. ~ a> _ ~U Q ~ 8"- 3 1i .,,::l CD ~. ![~ -i 'tl '" ,r a> " >S o @" !l 0' " !'! go i~ ~ ~ ,,< -" ~ ~ ~ 9: 0'" frI" 0' S" jjJ ~ ::liD::l)> as.~~ ~."a= 55-n~ Co.C= !!!. '" R -. ::ll '" 0 ~ - ." e ~ " 0. '" X X XXX '" 0 0 XX to> XX XX XX XX xx XX XX XX '" 0 X ~ X XX X X X X X X X X X ~ X ~ 0 '" -I ~ .. ~ 0 ~ OJ .. Gl m 0 " (l; 0 ;0 3 (f) 3 S <l> :J C!' m () " -Z en Q, () )> ;: .. iii' -< 2. m )> OJ ;0 <l> '" Q) 0 () 0 ::r w , '" 0 ~ CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miami-beach.f1.us COMMISSION MEMORANDUM NO. /3,)-0 I TO: Mayor Neisen O. Kasdin and Members of the City Commission DATE: March 14,2001 FROM: Jorge M. Gonzalez City Manager 'o~ SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING THE ATTACHED LOCAL HOUSING ASSISTANCE PLAN (PLAN) FOR THE STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM FOR STATE FISCAL YEARS 2001/02, 2002/03, AND 2003/04; 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; FURTHER, AUTHORIZING THE APPROPRIATION OF SHIP PROGRAM FUNDS FOR FISCAL YEAR 2001/02, IN THE AMOUNT OF $519,776; FISCAL YEAR 2002/03, IN THE AMOUNT OF $519,776; AND FISCAL YEAR 2003/04, IN THE AMOUNT OF $519,776; OR THE FINAL ALLOCATION AMOUNT, AS ADJUSTED BY THE FLORIDA HOUSING FINANCE CORPORATION; AND AUTHORIZING THE APPROPRIATION OF ANY INTEREST ACCRUED THEREON, FOR ELIGIBLE ACTIVITIES UNDER THE RULES OF THE SHIP PROGRAM. ADMINISTRATION RECOMMENDATION Approve the Resolution. ANALYSIS 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. AGENDA ITEM e.7B f:\ODHPlSALL\MIGUELLlMemo.(l31MlI.ooc DATE 3-ICf-()/ March 14, 2001 Commission Memorandum SH1P Program Local Housing Assistance Plan Page 2 As required by the SHIP Program, on May 3, 1995, the City approved Resolution 95-21566 adopting a three-year Housing Assistance Plan covering State fiscal years 1995/96, 1996/97 and 1997/98. On Aprill, 1998, the City approved Resolution 98-22696 adopting a Local Housing Assistance Plan for State fiscal years 1998/99, 1999/00, and 2000/01. This current plan provides for the use of SHIP Program funds for rehabilitation, down payment assistance, closing cost assistance, and home ownership training in relation to a Home Buyer Assistance Program to assist participants with an income of up to 120 percent of area median income (currently $37,440 for a family of one). The current Local Housing Assistance Plan expires on June 30, 200 I. The SHIP Program requires that a new Local Housing Assistance Plan (Plan) for State fiscal years 2001/02,2002/03, and 2003/04, be adopted by the City and submitted to the FHFC for review and approval by May 2, 2001. The Plan is to be implemented on July 1,2001, and the SHIP Program allocation for the City is estimated to be $519,776 for State fiscal year 2001/02. In accordance with the SHIP Program Rule, ten percent of the annual allocation, plus five percent of any accrued interest, is utilized by the City for program administration. The FHFC will not dispense SHIP Program funds to jurisdictions that do not have an adopted plan in place. The Administration has prepared the attached three-year Local Housing Assistance Plan covering State fiscal years 2001/02, 2002/03, and 2003/04, utilizing the format required by the FHFC. The proposed Plan incorporates the main provisions of the current Local Housing Assistance Plan and continues to provide for SHIP Program funds to be used for rehabilitation, down payment assistance, closing cost assistance and home ownership training in relation to a Home Buyer Assistance Program to assist income-eligible participants. As in the current plan, the City is to continue to issue Notices of Funding Availability (NOF A) for eligible activities. Also as in the current plan, and in order to facilitate the participation of City staff in the Home Buyer Assistance Program, the Plan targets up to 50 percent of the funds to provide assistance to eligible City staff earning up to 120 percent of the a area median income. Two adjustments have been incorporated to the Local Housing Assistance Plan for fiscal years 2001/02,2002/03, and 2003/04, in order to render the Plan consistent with the terms of the City's Five-Year Consolidated Plan for federal funds, adopted on July 1, 1998. First, the recapture policy for funds provided for assistance with second or third silent mortgages, down payment assistance, and closing cost assistance, calls for recapture by the City of said assistance upon resale of the property (as opposed to being forgiven after a set term of five or ten years). Second, the number of assisted units is not to exceed 20 percent of any single condominium building. On February 2, 2001, the new Local Housing Assistance Plan was submitted to the City's Loan Review Committee (LRC). The LRC reviewed the Plan and recommended that the Mayor and City F:\DDHP\SAlLIMlQUELL\Mcmo-03140 I ,doc March 14,2001 Commission Memorandum SHIP Program Local Housing Assistance Plan Page 3 Commission adopt the Plan. In accordance with the SIDP Program Rule, on Thursday, February 8, 2001, the City advertised a 30-day citizen comment period on the Local Housing Assistance Plan. No comments were received by the time the agenda for the City Commission meeting went to print. During the last three years, and under the current Local Housing Assistance Plan, the City successfully utilized all the SIDP Program funds received from the FHFC. SIDP Program funds in the amount of$I,273,027 were used to provide rehabilitation services to 46 income-eligible home buyers, of which ten are City employees. Under the SIDP Program NOF A process, the Miami Beach Community Development Corporation (MBCDC) has been funded by the City to provide rehabilitation services in conjunction with a highly successful scattered site Home Buyer Assistance Program. MBCDC has leveraged the SHIP Program funds from the public and private sectors providing an additional $3,169,066, for a total of $4,442,093 in assistance for home ownership opportunities. The annual SIDP Program funding allocations to the City may be adjusted by the FHFC depending on actual documentary stamp tax revenues collected by the State. Hence, the attached Resolution appropriates the amount of SIDP Program funds allocated to the City, or the final allocation amount as adjusted by the FHFC, for fiscal years 2001102, 2002/03, and 2003/04, plus accrued interest on the funds, for eligible activities under the rules of the SHIP Program. The Administration recommends approval of a Resolution of the Mayor and City Commission of the City of Miami Beach, Florida, approving and adopting the attached Local Housing Assistance Plan (Plan) for the State Housing Initiatives Partnership (SIDP) Program for State fiscal years 2001102, 2002/03, and 2003/04; authorizing the necessary certifications by the Mayor and the City Clerk; and authorizing submission ofthe Local Housing Assistance Plan for review and approval by the Florida Housing Finance Corporation; further, authorizing the appropriation ofSIDP Program funds for fiscal year 2001102, in the amount of $519,776; fiscal year 2002/03, in the amount of $519,776; and fiscal year 2003/04, in the amount of $519,776; or the final allocation amount, as adjusted by the Florida Housing Finance Corporation; and authorizing the appropriation of any interest accrued thereon, for eligible activities under the rules of the SHIP Program. 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