LTC 364-2020 Recapture of SHIP Disaster Strategy FundsDocuSign Envelope ID: 252E181 A-C542-4266-B05E-0F98001378C8
MIAMI BEACH
OFFICE OF TH E CITY MANAGER
NO. LTC #
TO:
FROM:
DATE:
SUBJECT:
364-2020 LETTER TO COMMISSION
Mayor Dan Gelber and Members ofthe City Commission
Jimmy L. Morales., cry Manaad""
October 15, 2020
Recapture of SHIP Disaster Strategy funds
The purpose of this Letter To Commission is to provide you an update on the City's State Housing
Initiatives Partnership (SHIP) Program expenditures for FY 17/18.
The City is a recipient of affordable housing funding from the State Housing Initiatives Partnership
Program, which was established in 1992 through the William E. Sadowski Affordable Housing
Act, and is administered by the Florida Housing Finance Corporation (FHFC).
The use of SHIP funds is governed by the City's Local Housing Assistance Plan (LHAP) which is
submitted to the State for approval every three years. Every year, subrecipients must submit an
annual report to FHFC by September 15, to document its expenditures and encumbrances for the
past three fiscal years. The City submitted the annual report for closeout year FY 17/18 on
September 14, 2020.
The report summary below indicates the origin of fund allocation and the amounts expended:
Allocation Category Amount Allocated Expenditure Amount
State Annual Distribution $251,747 $251,747
Program Income Payments $54,514.17 $54,514.17
Disaster Funds $31,863 o
The State Annual Distribution represents the funds allocated by Florida Housing Finance
Corporation to entitled jurisdictions who remain in compliance with reporting and expenditure
requirements for the prior year. The report documented the City's expenditures of $299,851.22,
providing five (5) households with purchase assistance with rehabilitation funds. The Program
Income Payments are the funds received when a previous program recipient assisted with City
funds sells his/her property before the expiration of the affordability period. These funds are then
returned to the housing fund and utilized to assist another qualified household. The third category
represents an allocation received in 2017 to aid income-eligible households whose homes were
affected by Hurricane Irma. The City received applications from two eligible resident households
who subsequently failed to meet the program's eligibility requirements despite several attempts
by the City to assist them to comply. On September 11, 2020, FHFC directed the City to return
unexpended Disaster Funds in disaster strategy.
DocuSign Envelope ID: 252E181 A-C542-4266-B05E-0F98001378C8
The City currently has a waitlist for its first-time homebuyer program and has expended SHIP
funds for the upcoming closeout reporting years FY 18/19 and FY 19/20. FHFC will announce any
future allocations after June 2021.
The City will continue to offer financial assistance to first-time homebuyers this year as HOME
Investment Partnership (HOME) funds remain available. HOME down payment assistance funds
are limited to $40,000 per household which is significantly less than the maximum award amounts
provided by SHIP: $150,000 for extremely-low income households; $100,000 for very-low income;
and $50,000 for moderate-income households. The City has used HOME funds to assist four
households to become homeowners since May 2020.
For additional information, please see Maria Ruiz, Department Director, Office of Housing and
Community Services.
JLMIATH/MLR