2008-26877 ResoRESOLUTION NO.
2008-26877
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING
AND ADOPTING AN AMENDMENT TO THE LOCAL
HOUSING ASSISTANCE PLAN IN SUBSTANTIALLY THE
ATTACHED FORM, FOR THE STATE HOUSING INITIATIVES
PARTNERSHIP (SHIP) PROGRAM FOR FISCAL YEARS
2007/08, 2008/09, AND 2009/10, TO INCREASE THE
MAXIMUM AWARD FROM $40,000 TO $60,000 FOR VERY
LOW AND LOW-INCOME SUB-RECIPIENTS, AND TO
INCORPORATE A NEW STRATEGY FOR DISASTER
MITIGATION, AS REQUIRED BY STATE RULE 67-37-005, TO
PROVIDE ASSISTANCE TO VERY LOW, LOW, AND
MODERATE-INCOME HOUSEHOLDS FOLLOWING A
NATURAL DISASTER; AND AUTHORIZING THE
NECESSARY CERTIFICATIONS BY THE MAYOR AND THE
CITY CLERK; AND AUTHORIZING SUBMISSION OF THE
AMENDMENT TO 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 April 11, 2007, the City approved Resolution 2007-26510
adopting a Local Housing Assistance Plan (CHAP) for State fiscal years 2007/08,
2008/09, and 2009/10, which provides for the use of SHIP Program funds for approved
owner-occupied rehabilitation strategies, first-time homebuyer activities, new
construction; rental housing development; and acquisition/rehabilitation for Workforce
Housing; and
WHEREAS, at least 30% of the overall funds must be reserved for activities
which benefit very-low income households; and
WHEREAS, the City of Miami Beach's LHAP restricts the maximum award per
sub-recipient to $40,000; and
WHEREAS, due to current market conditions, it has become increasingly difficult
for very-low income and low-income first-time homebuyers to qualify for permanent,
fixed-rate mortgages, even with the maximum $40,000 down payment and closing cost
award; and
WHEREAS, this difficulty in utilizing a minimum of 30% of the annual SHIP
allocation for very low-income and low-income first-time home buyer transactions is
jeopardizing the City of Miami Beach's ability to comply with SHIP Program
requirements for percentage allocations; and
WHEREAS, the proposed Amendment to the LHAP will increase the maximum
award for very-low and low income first-time homebuyer sub-recipients to $60,000 in
order to facilitate qualification for homeownership; and
WHEREAS, a Disaster Mitigation strategy, as required by State Rule 67-37-005,
is being added to the City's LHAP, to provide assistance to very low, low, and moderate
income households following a natural disaster; and
WHEREAS, future fiscal year allocations of SHIP funds will identify up to $50,000
to be distributed in increments of $2,500, as available, per household with emphasis on
reimbursements for insurance deductibles; and
WHEREAS, the Administration has prepared the draft Amendment to the Local
Housing Assistance Plan covering State fiscal years 2007/08, 2008/09, and 2009/10,
utilizing the format required by the FHFC, which incorporates the strategy of the current
Local Housing Assistance Plan, and provides for an increase in the maximum award for
very-low income and low-income sub-recipients to $60,000, and incorporates a
provision for a Disaster Mitigation strategy as required by State rules.
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 an Amendment to the Local Housing
Assistance Plan in substantially the attached form, for the State Housing Initiatives
Partnership (SHIP) Program for Fiscal Years 2007/08, 2008/09, and 2009/10, to
increase the maximum award from $40,000 to $60,000 for very low and low income
first-time homebuyer sub-recipients, and to incorporate a new strategy for disaster
mitigation, as required by State Rule 67-37-005, to provide assistance to very low, low,
and moderate-income households following a natural disaster, and authorizing the
necessary certifications by the Mayor and the City Clerk; and authorizing submission of
the Amendment to the Local Housing Assistance Plan for review and approval by the
Florida Housing Finance Corporation.
Passed and adopted this loth day of September , 2008
ATTEST: MA OR
CITY CLERK
Robert Parcher
T:WGENDA\2008\September 10\Consent\SHIP Amend LHAP Reso.doc
Matti Herrera Bower
~~
ate
APPROVED AS TO
FORM & LANGUAGE
COMMISSION ITEM SUMMARY
61VIIYCII.7cY 1 I~IC.
A resolution approving and adopting an Amendment to the SHIP Program Local Housing Assistance Plan for Fiscal Years
2007/08, 2008/09, and 2009/10.
Key Intended Outcome Supported•
Increase availabili of workforce/affordable housin .
upporting Data (Surveys, Environmental Scan, etc.):
Based on the 2007 Customer Satisfaction Surve ,affordable housin was a concern for 82% of those surve ed.
le.
Shall the City adopt a resolution approving an Amendment to the SHIP Local Housing Assistance Plan to increase the
maximum award from $40,000 to $60,000 for very low, and low income sub-recipients; and to incorporate a new strategy
for Disaster Mitigation (as required by State Rule 67-37-005) to provide assistance to very low, low and moderate income
households following a natural disaster to be distributed in increments of $2,500 per household, as available, with
emphasis on reimbursements for insurance deductibles?
Item Summary~rcecommenaai~an-
The State-required Local Housing Assistance Plan (CHAP) for administration of SHIP funds for State fiscal years 2007/08,
2008/09, and 2009/10, was adopted by the City Commission on April 11, 2007, and outlines housing strategies for
rehabilitation of single family, first-time home buyer, orowner-occupied affordable housing; new construction to develop
home ownership opportunities; rehabilitation of multi-family buildings for condominium conversion; rental housing
development; and workforce housing acquisition and rehabilitation for very low, low, or moderate income households.
Pursuant to SHIP Program guidelines and the City's CHAP, funds are 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.
SHIP Program rules require that at least 65% of the total annual allocation be used for home ownership activities, which
may be for first-time homebuyer activities or for owner-occupied rehabilitation projects. At least 30% of the overall funds
must be reserved for activities which benefit very-low income households. Currently, the maximum award for sub-
recipients is $40,000. Due to market conditions, it has become increasingly difficult for very-low income and low-income
households to qualify for permanent, fixed-rate mortgages, even after having received the maximum award. The difficulty
to fund very-low income and low-income homeownership activities is jeopardizing the City's ability to comply with SHIP
Program requirements for percentage allocations. The proposed Amendment to the CHAP will increase the maximum
award for very-low and low income sub-recipients to $60,000 in order to facilitate qualification for first-time homebuyers.
An additional amendment is being proposed in order to incorporate a Disaster Mitigation strategy as required by State Rule
67-37-005. This strategy will provide assistance to very low, low and moderate income households following a natural
disaster. Future allocations of SHIP funds will identify up to $50,000 to be distributed in increments of $2,500 as available
per household with emphasis on reimbursements for insurance deductibles.
The Administration recommends that the Mayor and the City Commission adopt a resolution approving these amendments
to the SHIP Pro ram Local Housin Assistance Plan.
Adviso Board Recommendation:
On June 18, 2008, the Loan Review Committee recommended approval of the proposed amendments to the SHIP
Pro ram Local Housin Assistance Plan.
Financial Infnrmation~
Source of Funds: Amount Account Approved
1
2
SHIP S
Program
4
OBPI Total
Financial Impact Summary:
Cit Clerk's Office Le islative Trackin
Anna Parekh
Si n-Offs:
Department Director s ist t City M ager Ci Manager
T:WGENDA\2008\September 10\Consent\SHIP Amend L P Summary.doc
I4GENDA ITEM t~7
~ I Y t~/ M 11 ~~~ [}ATE ~D''O
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
To: Mayor Matti Herrera Bower and Members of the City Commission
From: Jorge M. Gonzalez, City Manager
Date: September 10, 2008
Subject: A RESOLUTION OF THE MAYOR ND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING AN AMENDMENT TO
THE LOCAL HOUSING ASSISTANCE PLAN IN SUBSTANTIALLY THE
ATTACHED FORM, FOR THE STATE HOUSING INITIATIVES PARTNERSHIP
(SHIP) PROGRAM FOR FISCAL YEARS 2007/08, 2008/09, AND 2009/10, TO
INCREASE THE MAXIMUM AWARD FROM $40,000 TO $60,000 FOR VERY
LOW AND LOW-INCOME SUB-RECIPIENTS, AND TO INCORPORATE A NEW
STRATEGY FOR DISASTER MITIGATION, AS REQUIRED BY STATE RULE 67-
37-005, TO PROVIDE ASSISTANCE TO VERY LOW, LOW, AND MODERATE-
INCOME HOUSEHOLDS FOLLOWING A NATURAL DISASTER; AND
AUTHORIZING THE NECESSARY CERTIFICATIONS BY THE MAYOR AND
THE CITY CLERK; AND AUTHORIZING SUBMISSION OF THE AMENDMENT
TO THE LOCAL HOUSING ASSISTANCE PLAN FOR REVIEW AND
APPROVAL BY THE FLORIDA HOUSING FINANCE CORPORATION.
Administration Recommendation
Adopt 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 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.
On April 11, 2007, the City approved Resolution 2007-26510 adopting a Local Housing
Assistance Plan (CHAP) for State fiscal years 2007/08, 2008/09, and 2009/10. This CHAP
provides for the use of SHIP Program funds for:
A. Housing rehabilitation for first time home buyers or owner-occupied housing;
B. New construction;
C. Closing costs and down payment assistance for first-time homebuyers for purchase of
scattered sites;
D. Rehabilitation of multi-family buildings for condominium conversion;
E. Rental housing development (defined as rehab of units in vacant multi-unit buildings);
F. Acquisition/Rehabilitation for Workforce Housing.
Page 2 of 3
SHIP Amend LHAP
A qualified existing property owner may receive funding only for construction rehabilitation of an
owner-occupied home. A qualified first-time homebuyer may receive funding for closing costs,
down payment assistance, and construction rehabilitation. Per SHIP guidelines, the funds must
be allocated as follows:
• At least 75% of the overall funds must be used for construction, rehabilitation or
emergency repairs of affordable, eligible housing (which may include rental
development activities);
• At least 65% of the overall funds must be used for home ownership activities (first-time
homebuyer activities or owner-occupied rehabilitation projects);
• At least 30% of the overall funds must be reserved for activities which benefit very-low
income households;
• Of the remaining 70% of the overall funds, up to 40% may be used for activities which
benefit moderate income households;
• The remaining funds may be used for activities which either benefit very-low income or
low-income households.
All limits on maximum purchase price, rent amount, as well as income limits are based on
annual updates by the Florida Housing Finance Corporation, which does not dictate minimum or
maximum award amounts, but leaves this decision to the discretion of the entitlement
community. The City of Miami Beach's LHAP currently restricts the maximum award per sub-
recipient to $40,000.
Due to current real estate and financing market conditions, it has become increasingly difficult in
the past year for very-low income and low-income first-time homebuyers to qualify for
permanent, fixed-rate mortgages, even with the maximum $40,000 down payment and closing
cost award. This difficulty in utilizing a minimum of 30% of the annual SHIP allocation for very
low-income and low-income first-time home buyer transactions is jeopardizing the City of Miami
Beach's ability to comply with SHIP Program requirements for percentage allocations. The
proposed Amendment to the LHAP will increase the maximum award only for very-low and low
income sub-recipients to $60,000 in order to facilitate qualification for first-time homebuyers.
The increase to the maximum award will be applied only to the housing strategy related to first-
time homebuyer activities and down-payment assistance.
Furthermore, an additional strategy is being proposed for the City's LHAP in order to incorporate
a Disaster Mitigation strategy as required by State Rule 67-37-005, adopted 11-26-92, and last
amended on 2-24-08. This strategy will provide assistance to very low, low, and moderate
income households following a natural disaster. Future fiscal year allocations of SHIP funds will
identify up to $50,000 to be distributed in increments of $2,500 as available per household with
emphasis on reimbursements for insurance deductibles.
On June 18, 2008, the Loan Review Committee reviewed and approved an Amendment to the
LHAP.
The Administration has prepared the draft Amendment to the Local Housing Assistance Plan
covering State fiscal years 2007/08, 2008/09, and 2009/10, utilizing the format required by the
FHFC. The proposed Amendment provides for an increase in the maximum award for very-low
income and low-income sub-recipients to $60,000, and incorporates a provision for a Disaster
Mitigation strategy as required by State rules.
Page 3 of 3
SHIP Amend LHAP
CONCLUSION
The Administration recommends approval of a Resolution of the Mayor and City Commission of
the City of Miami Beach, Florida, approving and adopting an Amendment to the Local Housing
Assistance Plan for the State Housing Initiatives Partnership Program for State fiscal years
2007/08, 2008/09, and 2009/10, to increase the maximum award from $40,000 to $60,000 for
very low and low-income sub-recipients, and to incorporate a new strategy for Disaster
Mitigation, as required by State Rule 67-37-005, adopted 11-26-92, and last amended on 2-24-
08, to provide assistance to very low, low, and moderate-income households following a natural
disaster; and 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.
JMG/HF/AP
T:WGENDA\2008\September 10\Consent\SHIP Amend LHAP Memo.doc