HomeMy WebLinkAboutR-99-0705J-99-785
9/17/99
RESOLUTION NO. a.l ir rf 05
A RESOLUTION, WITH ATTACHMENT(S), OF THE
MIAMI CITY COMMISSION APPROVING THE CITY OF
MIAMI'S REVISED LOCAL HOUSING ASSISTANCE
PLANS FOR THE PERIOD COVERING FISCAL YEARS
1995-1998 AND 1998-2001, PURSUANT TO THE
IMPLEMENTATION OF THE STATE OF FLORIDA'S
STATE HOUSING INITIATIVES PARTNERSHIP
("SHIP") PROGRAM; AUTHORIZING THE CITY
MANAGER TO SUBMIT SAID LOCAL HOUSING
ASSISTANCE PLANS, ATTACHED HERETO AND MADE A
PART HEREOF, FOR REVIEW AND APPROVAL BY THE
STATE OF FLORIDA HOUSING FINANCE CORPORATION,
AND TO EXECUTE ANY AND ALL DOCUMENTS AND
AGREEMENTS, IN A FORM ACCEPTABLE TO THE CITY
ATTORNEY, TO CARRY OUT THE TERMS AND
CONDITIONS OF SAID PROGRAM.
WHEREAS, on July 7, 1992, the State of Florida enacted the
William E. Sadowski Affordable Housing Act_ ('Sadowski Act"),
which allocates a portion of new and existing documentary stamp
taxes on deeds or real estate transactions to local governments
for the development and maintenance of affordable housing; and
WHEREAS, the Sadowski Act provides a, dedicated revenue
source for affordable housing and created the State Housing
Initiatives Partnership ("SHIP,) Program; and
WHEREAS, in August, 1994, the City of Miami was notified by
the State of Florida that the City would be eligible to receive
C1 Y COMMTMKOR
P£TING OF
5 E F 2 ? 1999
h.sclutiou No.
L
$1,353,387 in SHIP Program funds beginning with the State's
1995-96 Fiscal Year; and
WHEREAS, at the November 21, 1996 City Commission meeting,
the City Commission through Resolution No, 96-851, approved the
City's modified Local Housing Assistance Plan which outlines the
City's str.•ategy for the implementation of the SHIP Program for
the period covering fiscal years 1995-1996, 1996-1997, and
1997-1998; and
WHEREAS, at the April 14, 1998 City Commission meeting, the
City Commission through Resolution No, 98-336, approved the
City's Local Housing Assistance Plan which outlines the City's
strategy for the implementation of the SHIP Program for the
period covering fiscal years 1998-99, 1999-2000, and 2000-2001;
and
WHEREAS, currently the City's housing strategies under the
SHIP Program is limited to the City's Homeownership Development
Program and Downpayment/Closing Costs Assistance Program; and
WHEREAS, currently through the City's Homeownership
Development Program funds, can only be provided to certified
Community Housing Development Organizations (CHDO's), and has
precluded the private housing industry from securing SHIP
Program funds, which could be utilized for the cost of land
acquisition, site development, construction and permanent
- 2 -
� - 70
1
financing associated with the development of affordable
homeownership units in the City; and
WHEREAS, currently through the City's Downpayment/Closing
Costs Assistance Program, funds can only provided to qualified
very low, low and moderate income households who desire to
purchase an owner -occupied residential unit developed by a City
of Miami certified Community Housing Development Organization
(CHDOs) ; and
WHEREAS, the City Administration has experienced
difficulties in expending the SHIP Program funding within the
two (2) year time frame mandated by the State of Florida due to
the restrictions which are inherent in the City's current
housing programs and strategies; and
WHEREAS, the City of Miami has been cited by the State of
Florida for its poor performance in the expenditure of its SHIP
j
Program funds; and
? WHEREAS, in our effort to increase the City's SHIP Program
expenditure rate, and while providing a variety of homeownership
` opportunities to very low, low and moderate income families, the
City's housing strategy in connection with the SHIP Program has
been modified;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE
CITY OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the
Preamble to this Resolution are hereby adopted by reference
3 7
thereto and incorporated herein as if fully set forth in this
Section.
Section 2. The City of Miami's revised Local Housing
Assistance Plans for the period covering fiscal years 1995-1996,
1996-1997, 1997-1998 and 1998-1999, 1999-2000 and 2000-2001,
attached hereto and made a part hereof, prepared pursuant to the
implementation of the State of Florida's Housing Initiatives
Partnership ("SHIP") Program in the City of Miami is hereby
approved.
Section 3. The City Manager is hereby authorized to
submit said Plans to the State's Florida Housing Finance
Corporation for review and approval.
Section 4. The City Manager is hereby authorized!' to
execute any and all documents and agreements, in a form
acceptable to the City Attorney, to carryout the terms and
conditions of the SHIP Program and the said Plans.
Section S. It is hereby established that any funds
received by the City pursuant to the 'State Housing Initiatives
Partnership Act to implement the said Plans, shall be used to
carry out the following activities:
A. Homeownership Devpinpment Program
It is the intent of the City of Miami's
Homeownership Development Program to increase
V The herein authorization is further subject to compliance with all
requirements that may be imposed by the City Attorney, including but not
limited to those prescribed by applicable City Charter and Code
provisions.
- 4 -
F
9Q9-- 705
IL
homeownership opportunities for very low, low and
moderate income families by creating new owner -
occupied residential, affordable housing units in
the City. SHIP Program funds dedicated by the
City for funding of the Homeownership Development
Program shall be used for the cost of land
acquisition, site development, construction and
permanent financing associated with the
development of affordable homeownership housing
units. The SHIP Program funds reserved for this
strategy will be utilized by the City to carryout
site acquisition activities, site development,
construction and permanent financing to not -for -
profit housing corporations and private
developers, to assist with the development of
homeownership units, affordable to very low low
and moderate -income families. Once construction
has been completed, the SHIP Program funds will
then be converted into permanent financing,
downpayment, buy -down and/or closing cost
assistance to the homebuyer of the newly
constructed units.
B. Downj:)aymentjM�aage Buy Down/ 1oG;na Cost ProQram
The Downpayment/Mortgage BuyDown/Closing Cost
Assistance Program will provide
downpayment/mortgage buydown and/or closing costs
- 5 -
2- 9— 705
assistance to qualified very low, low and
moderate -income persons to assist in the purchase
of a newly constructed affordable homeownership
housing units developed by not -for -profit housing
corporations, private developers or the purchase
of an existing residential property located within
the corporate limits of the City. In order to
qualify for financial assistance under this
strategy, homebuyers must have received a
commitment from a first mortgage lender for the
purchase of the prospective residential unit.
C. Ownea-Ormini ed Rehabi 1 i a i on Program
The Owner -Occupied Rehabilitation Program will
provide rehabilitation assistance to very low, low
and moderate income persons of owner -occupied
single family residences with the City of Miami.
Financial assistance will be provided in the :form
of a zero percent (0%), deferred payment loan
secured by the property and forgiven on a pro -rate
j
basis of ten percent (10%) per year for a ten (10)
year term, as long as the residential unit remains
F
owned and occupied by the homeowner (applicant).
Should the homeowner die and an income eligible
heir inherit the property during the ten (10) year
period, the heir will not be required to repay the 4
pro-rata balance, but will be allowed to assume
- 6 -
W 70 r,
the mortgage provided that the heir becomes the
owner -occupant.
A. sing e Ea[ni 1y Ho isi ng Program
The Single Family Replacement Housing Program
will be utilized to replace dilapidated owner -
occupied housing units which are not suitable for
rehabilitation. A maximum of $65,000 per unit
will be made available to construct a new housing
unit on land owned by the existing homeowner
(applicant) or on a vacant residential property
that may be available and owned by the City or
County. Financial assistance under this strategy
will be made available on an as needed -basis, with
priority given to households that do not have the
financial means to secure a private mortgage loan
for the full amount, but are able to secure
partial financing through a first mortgage lender.
Funds will be awarded as a zero (0%) percent
interest deferred loan for a period coinciding
with the first mortgage loan term. The assistance
provided under this strategy would be due and
payable to the City of Miami if the property is
sold to a subsequent buyer or upon refinance by
the homeowner. Should the homeowner die and an
income eligible heir inherit the property during
the term of the deferred mortgage, the heir will
- 7 -
9 9 — e'03
not be required to repay the pro-rata balance, but
would be allowed to assume the mortgage provided
that the heir becomes the owner. -occupant.
Section 6. The administrative cost percentage for
implementation of the SHIP Program in the City is hereby
increased from five (5%) percent but not to exceed ten (10%)
percent of the SHIP Program funding allocation.
Section 7. This Resolution shall become effective
immediately upon its adoption and signature of the Mayor Y
PASSED AND ADOPTED this 28th day of September 1999.
JOE CAROLLO, MAYOR
In accordance with Miami Code Sec. 2.36, since the Mayor did not indicate of
this legislation by 8!:;("fiQ it jr) tile' r1..:ci
becomes effective witty tht:
regarding same, without the Mayor a cr :.air
4z�2
'N:iit�;rs.Clurk
ATTEST:
WALTER J. FOEMAN
f CITY CLERK -
AP
j / EP,` AS/TO F ORRECTNESS :t/
RO LAR LLO
C Y ATTORNEY
W3754:RCL:hdb
If the Mayor does not sign this Resolution, it shall become effective at
!
the end of ten (10) calendar days from the date it was passed and
adopted. If the Mayor vetoes this Resolution, it shall become effective
immediately upon its override of the veto by the City Commission.
City of Miami
STATE HOUSING
INITIATIVES PARTNERSHIP
PROGRAM
(SHIP)
LOCAL HOUSING ASSISTANCE
PLAN
FISCAL YEARS 1998-99, 1999-009 2000-01
000- 705
CiTY OF Ni1ANII
STATE HOUSING INITIATI I'S PARTNERSHIP PROGRAM
LOCAL HORSING ASSISTANCE PLAN
Fiscal Years 1998-99, 1999-00, 2000-01
I. INTRODUCTION
The City of Miami, Florida is committed to addressing the issue of affordable housing,
by actively secking various strategies for meeting the homeownership housing needs of
very low, low and moderate income persons. One of those strategies is the utilization of
the State Housing Initiatives Partnership (SHIP) Program. The SHIP Program was
created through the \Villiam F; Sadowski Affordable Housing Act, July 7, 1992.
The William F. Sadowski Affordable Housing Act is a comprehensive funding package
for state and local affordablc housing programs. The SHIP Program directs a portion of
new and existing documentary stamp taxes on real estate deeds to local governments for
the development and maintenance of affordable housing.
SHIP funds enhance the City of Miami's efforts to facilitate the production and
maintenance of affordable housing. When combined with other affordable housing
initiatives, SHIP funding makes it possible to provide housing opportunities that would
otherwise not be available to many of the citizens of this community.
The City of Miami's Local Housing Assistance Plan (LHAP) is required by the William
E. Sadowski Affordable Housing Act. All funds expended under this plan are utilized in
accordance with the requirements and definitions of the SHIP Program, pursuant to
420.907-420.9079 of the Florida Statutes.
II. PLAN CRITERIA
This multi -year LHAP addresses the City of Miami's continuous efforts to provide
affordable homeownership opportunities for very low, low and moderate income persons
within the City of Miami. It conforms to the City's Department of Community
Development's Five Year Consolidated Plan as submitted to the U.S. Department of
Housing and Urban Development.
All assistance provided under this plan is available on an equal basis to all eligible
sponsors and/or persons without regard to race, creed, color, sex, marital status, family
status, handicap status, religion. or national origin.
All sponsors and persons receiving assistance under this plan will be contractually
obligated to comply with the affordable housilig criteria that is established by the SHIP
program. Furthermore, recipients of assistance from both SHIP and State Housing Credit
(SHC) programs will comply with the income. affordability, and other SHC
requirements. Similarly, any sponsors or persons receiving assistance from other Federal
programs will comply with all I-ederal and SI-liP program requirements.
03 "/VV
L
Tile Florida Housing Finance Corporation (FHFC) will be promptly notified if the local
government is unable to comply %with the provisions of this plan. Amendments to this
plan shall be provided to FHFC within thirty (30) days after adoption.
III. LOCAL HOUSiN(; PARTNFRSi1III
The Cite of Nlianti Department o1' Conurtunity Development has utilized its affordable
housing financing programs to establish relationships Nvith nurnerous not -for -profit
developers. Fannie Nlae, and local banking institutions to make available multiple
sources of firrtding housing projects within the City. The City has worked
closcly kith these not -fir -profit community -based organizations and other public
financing agencies to provide the maxinnmt amount of financial leveraging. The
leveraging o.l'public and private funds is essential for reducing the deyelopnicm costs of
affordable housing projects.
The Cite of Miami provides financial assistance to various not -for -profit social service
agencies that in turn provide a number of' support services to the residents of the City of
Miami. Services provided include childcare, youth leadership, transportation, recreation,
mental health, handicap assistance, and many other services that are essential to the
stabilization of neighborhoods.
The City of Miami's L HAI' %vas made available for public input at each of the City's
thirteen (13) Neighborhood Enhancement Team (NET) Service Centers located
throughout the City of Miami.
IV. STRATEGIES
SHIP funds will be utilized in four affordable housing strategies: homeownership
development, home purchase assistance, rehabilitation assistance to existing
homeowners, and replacement housing.
Strategy 1: Homewivnership Development Program
The Homeownership Devclop►nent Program will assist very low, low, and moderate
income persons by providing construction/permanent financing to assist with the
development of newly constructed affordable homeownership units developed by not -
for -profit developers. private developers. or the City. Funds will be used for the cost of
land acquisition, site development, direct and indirect construction costs, as well as
permanent financing. Such permanent financing, will consist of the conversion of portions
of the SHiP Program development funds into downpayntenUmortgage buy-down/closing
cost assistance to the buyers of the newly constructed units.
Housing developments assisted through this program will receive financial assistance of
up to $40,000/unit or forty (40%) percent of the purchase price of the unit assisted,
whichever is less.
2
0 J y rt
L_
This assistance will be provided in the frn-m of a zero (0%) percent, deferred payment
loan: forgiven on a pro-rata basis Often (10%) percent per year over a ten (10) year term
as long as the unit is omied and occupied by the initial applicant. The loan will be
secured by the property. MI S1111' funds outstanding \Hill be repaid to the City of Miami
upon the sale of the home to a subsequent huycr or upon rclinance. Should the
horneowrtcr dic and income -eligible heirs inherit the property during the ten (10) year
terns, the heirs will not he required to repay the pro-rata balance. hilt vgill be allowed to
ass>une the mortgage provided that the heir become~ the owner -occupant.
Its no event shall principal and interest payment of all of- the financing plus escrow
payments exceed thirty 13010) percent of the tamily's total gross monthly income, unless
the first mortgage lender determines that the household is capable of a higher monthly
payment and can justify a deviation from this standard.
Assistance will be awarded on a first come, first ready basis until all funds are expended.
Strategy 2: Downpayment/Mortgage Buy-down/Closing Cost Program
The Downpayment/Mo_ rtr rr1e Buy-down/Closing Cost Pro rant will provide for
downpayntent, mortgage buy-dowtl and/or closing cost assistance to qualified low, very -
low and moderate income persons. to assist in the purchase of newly constructed
affordable housing units developed by not -for -profit developers, private developers, or
the City. It also provides for downpayment, mortgage buy -down, closing costs, and
repairs for existing residential properties within the city limits. In order to qualify for
assistance under this strategy, homebuyers must receive a commitment from a first
mortgage lender. Assistance will be awarded on a first-come/first ready basis.
Assistance will be provided in the form of a zero (0%) percent, deferred payment loan,
secured by the property. forgivers on a pro-rata basis of ten (10%) percent per year over a
ten (10)year term, as long as the unit remains owned and occupied by the initial
applicant. The funding assistance will be due and payable to the City of Miami if the
property is sold to a subsequent buyer or upon refinance. Should the homeowner die and
income -eligible heirs inherit the property during the 10-year term, the heirs will not be
required to repay the pro-rata balance, but will be allowed to assume the mortgage
provided that the heir becomes the owner -occupant. Properties receiving funding under
this stratetidy that are in need of repair must have repairs completed within twelve (12)
months immediately after closing. Funds for repairs made to the unit which are to be
paid from the local SHIP Trust Fund \%ill be deposited into an escrow account at the time
of closing and disbursed once the rehabilitation of the unit is completed. The maximum
amount of assistance 1br this strategy is $40,000 pet- unit.
Strategy 3: Owner -Occupied Rehabilitation Progrartt
The Owner -Occupied Rchab_ilitation Program will provide rehabilitation assistance to
very low, lo\%, and moderate income persons on owner -occupied single-family residences
within the City of Miarsi. Assistance will be provided in the fbrm of a zero (0%) percent,
deferred payment loan, secured by the property; forgiven on a pro-rata basis often (10%)
percent per year for a ten (10) year term, as long as the unit remains owned and occupied
by the initial applicant. Should the homeowner die and income -eligible heirs inherit the
property during the ten (10) year term, the heirs will not be required to repay the pro-rata
3
�io�
balance, but will be allowed to assume the mortgage provided that the heir becomes the
owner -occupant. The maximum amount of assistance for this strategy is $40.000.
Assistance will be on a first come. first ready basis until all funds are expended. City
staff may prioritize assistance on the hasis ofthc dCgl'CC of urgency needed to correct life
safety problems. Pai'tlCLilai'ly, those life safety or health probicros which significantly
affect the bouseho.ld and/or the surrounding, Conlin till ity.
Strategy 4: Sires-Fanrity_Replacement Housing Program
The Single-1 anlily i cl lacenient I lolishi , Proin:un will provide assistance to very low,
low, and moderate income per'sons, but vyill be utilized only in the event that a unit
selected for rehabilitation cannot he repaired to a reasonable standard using SHiP fonds,
other public or priyatC Hinds. or a combination of funding sources. A maximum amount
of $65,000 per unit will be a\\arded to build a new unit on land already owned by tlae
applicant or on \,.leant residential property that may be available and owned by the City
or County. Awards will be made on an as -needed basis. with priority given to households
that do not Kaye the financial means to secure a private mortgage loan for the full
amount, but are able to secure partial financing through a first mortgage lender. Funds
will be awarded as a zero (0`Yo) percent interest deferred loan for a period coinciding with
the first mortga`,c loan term, The funding assistance will be due and payable to the City
of Miami if' the property is sold to a subsequent buyer or upon refinance. Should the
homeowner die and income -eligible heirs inherit the property during the term of the
deferred mortgage, the heirs will not be required to repay the pro-rata balance, but will be
allowed to assume the mortgage provided that the heir becomes the owner -occupant.
Applicants will choose from a builder pool that is pre -selected by the City with approved
]ionic floorplans in place. Assistance will be awarded on a first come, first ready basis
until all funds are expended.
V. APPLICANT GUIDELINES
Eligible persons will be advised of the availability of these funds through notices in at
least three local newspapers, which have general circulation throughout the City of Miami.
Additionally, any persons whose names are held on waiting lists with the City of Miami or
SHIP funded organizations or agencies, will also receive notification.
Applications will be processed oil a first-come/first-ready basis until all funds are
obligated by income levels: ensuring that at least thirty (30%) percent is designated for
very low income applicants and thirty (30%) percent for low income, with the balance of
available funds for moderate income applicants.
Applicants for SHIP deferred payment mortgage loans under the Homeownership
Development Program, the Downpayment/Mortgage Buy-down/Closing Cost Program, or
the Single -Family Replacement Housing Program will be required to obtain a first
mortgage from a private mortgage lender. The applicant will also be required to
participate in a homeowner education class prior to the closing of these homes.
4
0J- 705
L
i
l
}
t
VI. AFFORDABLE. 11OUSING INCENTIVE, PLAN
The City of (Miami Commission adopted the Cite of Miami's Affordable Housing
Incentive flan (Anil') on October 10.. 1996. in compliance with City of Miami
Ordinance No. 11253, City of Nliami Resolution No. 95-188. City of Miami Resolution
No. 95-105. Florida Administrative Code and Section 420.9076 of the Florida Statutes,
based on the reconuncndations made by the City of Miami's Affordable housing
Advisory Committee.
The City of Aiiami's AMP provides developers of affordable housing projects with a
number of incentives that are intended to expedite the process and reduce the cost of
developing affordablc housing projects.
The incentives available under the City of Miami's AHIP are as follows:
Expedited f'erntittinu, Process: Priority is given to affordable housing developments by
expediting the permitting process. file City of Miami's Department of Community
Development \corks closely with the Building Department in assisting developers
through this proccss. Developers of affordable housing projects whose projects have
been certified as affordable by the City of Miami's Department of Community
Development are eligible for certain incentives that assist with expediting the permitting
Process. Prior to presenting the projects building plans to the Department of Building
and "Zoning for the plan review process. developers call schedule a pre -construction
erecting whit the Department of Building and Zoning. A pre -construction meeting is
attended by a representative from each of the plan review sections. This meeting
provides the developers with information and suggestions that will better prepare them
for the plan revision process. Once the building plans have gone through the plan review
process, developers can schedule a "Joint Review" meeting. also attended by a
representative of each of the planning review sections, to address the comments trade by
the plan revie\ycrs. This process can shorten the permit approval process by 15 days.
There is no charge for this service to developers ofcertified affordable housing projects.
Review Procedure For Plans That Impact Affordable Housing: The City of Miami's
Affordable Housing .Advisory Committee, (AHAC) is responsible for reviewing any
actions being considered by the City of Miami's Planning Advisory Board, Zoning Board
and City Commission that is considered to have an impact on affordable housing. AHAC
reviews the auendas of the aforementioned bodies and makes recommendations and
comments on the items that are considered to have an impact on affordable housing.
Modification of Impact Fee Requirements: The City of Miami currently waives all
impact fees, as well as, the Interim Proprietary and General Services fees for affordable
housing developments.
Allowance for Increased Density Levels: The provision of a Special Use Permit that
allows the increase in density or square footage (with conditions) to particular affordable
housing developments.
Inventory of Publicly Owncd Land Suitable for Affordable Housing: Tlie City of Miami
has a formal inventory of all locally owned public lands. Said inventory includes land
suitable for affordable housing. "]'his list is made available to not -for profit developers
and private developers for the development of affordable housing units.
5
Reduction of 1'arkulc anti Setback Ret UirClllCil(S: The City of Miami, through Ordinance
No. H001). section ()17.0 permits a reduction in the parking requirements for housing
projects targetrd for lo\N income families and indi\ iduals.
To obtain cons ldcratioil finder ❑n\ of the incenti\'es included in the AMP. a developer
must present iill<unlation coliccriiing, tic proposed devOopment to the Cite of Miami's
Department ol'Conununit\ De\elopnlent. If the proposed development is determined to
be a11i01-dable. a letter vv ill be issued to all applicable Cite of Miami departments
requesting their cooperation in facilitating the application of the incentives to the
proposed a1101-dable housing project.
VII.
AFFORDABILITY
The SHIP Program considers housing affordable when the monthly rents or monthly
mortgage payments, including taxes and insurance, do not exceed 30 percent (unless it is
determined, and can be (inaiwially justified. that the household is capable of a higher
monthly pad nlcnt) of' gross household income limits adjusted for family size.
VIII.
INCOME LIMITATIONS
The SHiP Program is designed to benefit very low, low, and moderate income families.
l
"file maximum income levels for each income group adjusted for family size are provided
to the Cite of Miami by the Florida Housing Finance Corporation and are adjusted upon
t
f
receipt of the new limns.
IX.
MAXIMUM PURCHASE PRICE
t
The maxinxun purchase price of a SHIP assisted, new or existing homeownership unit
will not exceed 90% of the median purchase price of said unit in the Miami PMSA. 'File
maximum sales price of a newly constructed unit to be assisted with SHIP funds cannot
exceed $1 19,439. Tile value of existing units that will receive assistance cannot exceed
ti
t
$113,418.
i
X.
SELECTION PROCESS
Qualified individual applicants will be selected or awarded funds on a "first come, first
ready" basis for program assistance after the availability of program funds or activities
are advertised, 'file City of Miami will advertise the availability of funds thirty (30) days
prior to accepting applications.
Qualified sponsors under the Homeownership Development Program will be selected
based on, but not limited to, the following criteria:
Y Number of SHIP qualified persons/families aided in each category: very low,
low, and moderate income
6
�J-- ''1
0
• Number of homeownership units developed
Use of funding sources other than SHiP
Maximum use of financial leveraging of SHIP funds
0 Maximum use of leveraging ol'ail City of Miami funding
Least cost per square foot
Development proposed on City of Miami owned land
Proposals demonstrating that employment will be provided to personnel from the
WAGES Program and Work Development Initiatives Program
XI. TARGETED ACTIVITIES AND GROUPS
The City of Miami's Local Housing Assistance Plan for FY 1998-99, 1999-00, 2000-01
Will use 900'0 of Si if P funds each fiscal year for homeownership activities.
All proposed program activities will be targeted to very low, low and moderate income
person. At least 30% of all SHIP funds shall be utilized to assist very low income
families. 30% for loNv income families and no more than 30% will be utilized to assist
moderate income families, based on the defined income limits.
XH. ELIGIBLE APPLICANTS
Applicants for finding under the SHIP Program strategies will be subject to the City of
Miami's funding award criteria. The City of Miami will review each applicant's
proposal and determine eligibility and the appropriate level of funding.
The purchaser's gross annual income must not exceed 120% of the median income in the
Miami I'MSA, adjusted for family size, and must occupy the property as a principal
residence.
The prospective homebuyers must have a good credit history. If a SHIP mortgage is
provided to as a do�tnpaymentlbtry-down, then the must be approved for a mortgage
from a participating mortgage lender. Proposed mortgage financing arrangements must
be found acceptable and/or beneficial to the participating homebuyer. Estimated total
mcrtgage payments including escro\v, should not exceed thirty (30%) percent of the
homebuyers monthly gross income, when determining; affordability of the unit. In the
event a first mortgage is provided, the homebuyer must meet the qualification guidelines
as indicated herein.
7
rivu
I
IN
XIII. RECAPTURE PROVISION
1
The City of Miami will provide SHIP assistance in the form of deferred payment loans,
not to exceed the maximum limits as indicated in this plan.
All loans shall be secured by a note and mortgage on the property, which shall be
recorded either in a first. second or third lien position.
The homeomicr maN sell the property at an\ time and must repay the City of Miami a
pro -rasa share of SI Ill) subsidy I'rum the sales proceeds. Any proceeds remaining after all
j
mortgages have been repaid, including the SI Ill, subside, shall belong to the homeowner.
The SHIP proceeds repaid to the 0ty of Nlianli will he deposited in the local SHIP Trust
Fund and used by the C6 of %liami for other SI IIP assistance.
In the event that the procecds from the sale arc insufficient to repay the outstanding SHIP
subsidy, the City \%ill recapture \\hatcver proceeds are available after the senior
mortgage(s) from any private lender (if arty) has been repaid.
is
The homco\\ner is required to reside 111 the property as his/her principle residence during
'?
the entire term of the loan. If the homeowner should die and income -eligible heirs Inherit
the property during the term of the loan, the heirs will not be required to repay the pro-
rata share. but \\ill be allowed to assume the mortgage provided that the heir becomes the
'
1;
owner -occupant of the property.
i
t
XIV. IMPLEMENTATION AND ADMINISTRATION
The cost of administrating the LHAP shall be ten (10%) percent of the SHIP local
i l
fl
housing distribution. A summary of the administrative budgets are outlined below, on an
annual basis:
FY 1998-99:
i
Personnel $112,159
Contractual Services 6,923
Office Supplies 4,154
Audit/Advertising/Other 15,232
Total $138,468
FY 1999-00:
Personnel $127,656
Contractual Services 7,880
�.
Office Supplies 4,728
I
Audit/Advertising/Other 17,336
'
Total $157,600
8
99- 7011,
L
FY2000-01:
Personnel $127,656
Contractual Services 7,880
Office Supplies 4,728
Audit/Advertising/Other 17,336
Total $157,600
The City of Miami Commission serves as the policy setting body responsible for the
SHIP Program. The Department of Community Development is responsible for the
implementation and administration of the LHAP, which includes the folloNving:
° Plan design. plan implementation, fund administration, monitoring, and reporting;
• Providing advice and recommendations to the City Commission on improvements to
the LHAP
XV. PLAN DURATION AND EFFECTIVE DATE
The City of Miami's Local Housing Assistance Plan will become effective immediately
upon its adoption by the City of Miami Commission and subsequently approved by the
Florida Housing Finance Corporation. The multi -year plan contained herein is for the
State fiscal years 1998-99 .1999-00 and 2000-01. It may be amended dependent upon
changes in strategics and other requirement by the partnership and approval by the City
of Miami Commission. Any plan amendment will be submitted to the Florida Housing
Finance Corporation within thirty (30) days after adoption by the City of Miami
Commission. Florida i-lousing Finance Corporation will be notified promptly if the City
of Miami is unable to comply with the provision of this plan.
XVI. ENCUMBRANCE AND/OR EXPENDITURE REVIEW
i
! Twice during each program year, the City of Miami conducts a review of its SHIP
Program to ensure that the encumbrance and/or expenditure time requirements are being
adhered to. If it is determined that any of the City ofMiami's funds may be in danger of
not meeting its encumbrance and/or expenditure deadlines, the City makes every effort to
transfer the affected funds to a strategy that is not in danger of meeting these deadlines.
i
t 9
FLORIDA HOUSING FINANCE AGENCY ^�r•� •'�r°°' a°°'mm°' M'�°°m'�
HOUSING DELIVERY GOALS CHART N—Plan:
STRATEGIES FOR THE LOCAL HOUSING ASSISTANCE PI AN IOR S1AlE IISCAL YEAR: 1998-99 Amr"d"'enl:—�J x
Name of Local Government City of Nliami Annual Allocation Amount: $1,384,685
A B C U E
HOME OWNERSHIP
STRATEGIES
New Comtnx fin,
Households by Income and Maximum SHIP Awards
Rehab/Rep air
N'ittswt
ComSrucNnrs
Total
Total
lint. \rn loss
Atasn„Hm %11u
Assam
l'nrts low
Sla a nmrn, SH❑
AHard
Urns Mod
unwm 51111
As\alrld(
Intal knits
SHIP Dollars
SHIP Dollar
SHIP Dplwn
SNIPce Dollars
Perntage
HOmeo-er,Np Dr-lopow'd P1,19-1
0
S4(0 (000
f)
$40,f111f1
0
$40, 000
0
50
f
$0
(�
0.00 lu
Dowopa)mrnI Closm- IA-11AM1
6
S40,000
$40,OIlU
i
$4(1,000
14
5281,437
$281,437
$562,874
4Q65
Owner Occupied Rehab 10
S40,000
5
$40,000
1
$40,000
16
$643,186
$643,186
46.45%
Housing Replacement
1
$65,000
0
0
1
$40,157
$40,157
2.90%
Subtotal 1 (Home Ownership)
1'
12
21
11
31
1$321,5941$924,623
CO
$1,246,217 90.0011"
Note: the Hum, O.-Ovp Pe rntagr daognated in Subtowl I, ( alum- I, must br dl least 41-IN of the Annual Alloc all— Amount.
RENTAL
Households by Income and Maximum SHIP Awards New Conslruetio
I Rehablitepair
Witlsllrtt
eomin,ction
Total
Total
Unib x'r) low
Maumurn SHIP
AHard
UnIN to
Alavmwn 51111
AH and
Units Aprtl
Slailrmnn StillSTRATEGIES
AHard
local I.h,Ns
SNIP Doll —SHIP
Doilars
SHIP Dollars
SHIP Dollars
Percentage
Subtotal 2 (Non -Home Ownership)
Administration Fees
( Administration
fees may
not exceed Ili". of Annual
Allm aliuN
S 138,468
i U.U".°
_
Home OHneiship Counseling
l;'
UmiSVerq'
Lo�c
1_'
ti0.00
lVIGRAND
'1 Nl_'1 Y 14 '7 1 f,'3 s+(1 cal 38-11.87� 100.0';0
—
_...-�2w,c5..u:.:a � , �tcwr:
luLll
Units
100",.
��
TOTAI
+mi,on �. ial n -,�,_r r•t•s,�
Percentage of Total
Households Served:
,9�;
49.3 "'.,
Units
Low
5482, 281
3j W.,
Uniis
Mo&
581,(u14
54.8,11,
38.; ".'.,
6.5
Percentage ComtructionlR( 75"„+): caloWa (_on,trJRO;.blercenl.I')adding Grand fowl(.lm, AS R. men dH ide b) Annual Ail ul anon Ann. 9Q0°.,'
Alaximum A owa) e
Purchase Price:
New $1 1 S),439 Exlstmg $ 1 13,418
L
FLORIDA HOUSING FINANCE AGENCY rrJw rM �gNJx dJrlo. A r+� Mm �l.
HOUSING DELIVERY GOALS CHART Ven clan
STRATEGIES FOR THE IOCAI HOUSING ASSISTANCE PI AN IOR STATE I ISCAI YEAR: 1999-00 AmrndmMi: u x
I kcal Yr fln,roul:
Name of Local Government: City of Miami Annual Allocation Amount: $1,576,001
A 6 C D C
HOME OWNERSHIP
STRATEGIES
Households by Income and Maximum SHIP Awards
New Camtntctlon
Relub�ev 'Ir
WIthmrt
Cwntruc9Eon
Total
Total
Units 1 en l a„
A1a�imum Sitl
Award
lrnits low
MAOrnum SHII
Aaard
l nVls Mod
Atasirtsum SH!{
Aeard
Intal Unils
SHIP nollars
SHIr Dollars
SHIP Dollars
SHIP lhdlan
rerrrMagr
HomeomnershirDe,el,4—entr.ogram
25
$40,000
10
540,000
0
S40,000
45
$1,150,796
$1,150,796
73.02`7,
oownpa)meni Ctosing Cost Auislamc
540,000
S40,000
$40,000
0.00 10
Owner Orrupied Rrhab
$40,000
5
$40,000
1
$40,000
6
$221,901
$221,901
14.08%
Hmsing Replacement
1
565000
1 0
4 0
1
$45,704
$45,704
2.90%
Subtotal l(HDmeOwnership)
-)Oil
231
11 1
52
51,196,500
221,901
$0
51,418,401
9000o,
NO, 1 hr Home Oa nenhip Pere enlage designated m Subtotal 1, Column f. n—1 be al bast hS".. of the Annual Allocation Amount.
RENTAL
STRATEGIES
Households by Income and Maximum SHIP Awards
New Construction
Rehab/Repair
Witt..!
Ca,stn,ctia,
Total
TOtdl
Units )ert Ims
A(aumum Sf (11
Assard
Units I nss
Munnm, SHII
a Anard
l'nNs Mod
Ala unwrn M11!
Msard
Iotal Units
slur Dollars
SHIP Doll —SHIP
Dollar
RiiP Donors
Per(entage
Subtotal 2 (Non -Home Ownership)
Administration f ee!.
!
(Administration fees ma) not exceed to"., of Annual Allo(ation)
j
S 1 57,000
Home O(cnetship Cslunw1ing
$0.00
'GRAND TO] Ai-
r.nlsu���!,
( is V'I r)
7n i ,tl1�l
Lur:
50 U", 35.11 �
,
l nit.
L(w.
�, 1
l,nit
lull
•1 ;_:1 1 '_I""
:� S1 11)6 Illy 21 fO� U S1 s ( 001 00.0"�
TuI'd
knits
1.;
Percentage of Total
Households Served:
4B,1
Percentage Constru(tiun?Rel n..ROW, I'rrr PrlI b, addo,q (Iran 11.0 f olWll AAn, Ih-,i. id, b) Annual All. if And. 91.0,;
Maximum Allowable
Purchase Price:_I
New 15,1 19,439 1 Existing $1 13,418
FLORIDA HOUSING FINANCE AGENCY
HOUSING DELIVERY GOALS CHART Vew Plan:
STRATEGIES FOR THE IOCAI. HOUSING ASSISTANCE PLAN IOR Sl A1E HSCAI YEAR: 2000-2001 Amendment: %
Name of Local Government: City of Miami Annual Allocation Amount: $1,576,001
A 8 C D F
HOMEOWNERSHIP
STRATEGIES
Neweomirvcti
Households by Income and Maximum SHIP Awards
Rebabl'Repair
without
Cons(n"ctia,
Total
Total
UnVs \'er, loss
Sta.imum SHlt
Award
Units ! ow
ll
Alasin,um SHI{
nssard
units .Mod
Alaximum HI
S
Award
Total Units
SHIP Dollars
SHIP Dollars
SHIP Dollars
SHIP Dollar,
Percentage
Homro%nrrship Deselopment Program
0
$40,0(10
0
$40,000
0
$40,000
0
$0
$0
0.00111;,
DownpatmenCClosing Cost Assistance
f,
$40000
7
$40,000
1
$40,000
14
$310,31.5
$310,315
$020,630
39.381�
Owner Occupied Rehab 10
S40,000
5
$40,000
1
$40,000
16
$709,200
$709,200
45.00%
Housing Replacement
2
$65,000
0
0
2
$88,571
$88,571
5.62%
Subtotal 1 (Home Ownership)
181
11 21
j
32
1 f,398,89h
$1,019,515
$0
$1,418,401
90.00".
Nott: The Home Ov,.—tuP. Percentage dragnaled n, SubloLd 1, Column 1, must be at least I. ".. of the Annual Allocation Amount.
RENTAL
STRATEGIES
Households by Income and Maximum SHIP Awards Net. consinKI,
Rehab,'Repair
wtlhou,
Construction
Total
Total
Und, en Iow
S{aumwn SHI
sward
Ih,ib low
Mas mourn still
aw and
Undo stod
Naaimmn SI❑!
Awanl
total Unix
HIP Dollars
SHIP Dollars
SHIP Dollars
SHIP Dollar
Percentage
5ubtatal 2 (Non -Home Ownership)
Administration fees
(Adminuiralion fees may 717xu'c<1 10"., of Annual Allocation)
$1 5 �''000
10.0111,
Home Ownership County ing
SO.00
GR.AN[) TOTAL
saa wrnl,lr,61 1 u 1f a if
Percentage of Total _ I u'.1
Households Served: Sf, 1"�,
0.t,".
I
1
I +,ty
i3.i• ,.,
I
tot{.
I
�3-'
_
Tot.11
Unll�
� 1
S i'l, Fih/) S l.i)1'+ J 1 , so51 )rnh lll)l 1110 0`:,,
1i S".,
t, 2'�-,
5 f,'",
100',.
Percentage ConAructlUn/Reh(7 ',.+)' (nindateConslf. ROW, Po' eol.b) add ingGrandtotal (of ;A&O,thendnulrb{ AnnueI-%V.ilionAnrt.
Maximum Allowable
Purchase Price: I
I New $119,439 Existing $113,418
L
TIMETABLE FOR STATE FISCAL YEAR 1998 - 1999
i
t
Local Government City of Miami
1999
2000
MUMUM
MEMO
i1i.,1100
ME
on
ommomm
ME
MEMO
0
on
mom
No
0
Moo
MEN
I
mono
M
no
moommorm
0
SOMEONE
ON
mono
0
0
mom
MOONS
ME
0
loommomommmm
IMM
am
MI
NONE
min
���M�
on
�
N■
■■■■
0
�■■����i
������i■�i��i■o�i�■i�■i■�i�■i■■ii�■i■i■
�■mm■■W
I
�t—���C■�
AN
D
0
iMiNiNimmoiioiiuiii
F�pN�■�
iinini
sm,
M
MOONS
mom
on
I
�..
.�
..
_MMOMM
.Expencliture
,Encumbrance--
��.�......:�...
MMMMMMMU=.ice...
mom
on
MOM
simmommumm
—RE
IM
mono
Directions: Type in the applicable years across the top line
List Program Activities down left hand side type in an "X"
on applicable activity line under month and year the activity will be initialed or completed.
At a minimum the following activities should be included.
1) Advertise availability of funds and application period
2) Encumbrance of funds (12 months following end of State Fiscal Year). )
3) Expenditure of funds (24 months following end of State fiscal Year).
4) Submit Annual Report to FHFC (September 15th)
i d
GZ
TIMETABLE FOR STATE FISCAL YEAR 1999 - 2000 i
Local Government City of Miami
MEMBER
mmuss
on
no
IMMUNE
ON
ion
0
M
ON
on
M
MON.
N
No
In
M
0
MON
0
M
0
0
ME
SIMON[
���
�
iun
m
u
■
M
OEM
11
MON
N
smomm
ON
ON
M
ME
ONE
11,
NONE
.00010
onnonam
ME
M
an
on'
M
min
MORE
0
MEN
nomms
MMMMMMMMMKM
Moloommosso
ONE
ff
n■u
ni■ii�i
ii�i■�iii�Miiiioll
OEM■
�
��
i�oi
0
Nor
1101101101
No
son
Directions: Type in the applicable years across the top line.
List Program Activities down left hand side type in an "X"
i
on applicable activity line under month and year the activity will be initialed or completed.
At a minimum the follo,vmg activities should be included.
Cy 1) Advertise availability of funds and application period
2) Encumbrance of funds (12 months following end of State Fiscal Year). r
j ( 3) Expenditure of funds (24 months following end of State fiscal Year).
j 4) Submit Annual Report to FHFC (September 15th)
TIMETABLE FOR STATE FISCAL YEAR 2000 - 2001
Local Government City of Miami
Progrann
OEM
MOMMEN
9-
"ISSUE
ONEEN
NONE
0
oommm_mmmm
mmommi
a
OMEN
too
MEN
ml%mmmmo
mommommoom
FROM
SEEM
INNER
0
on
mommummi
Molloommomm
on
ORONO
Omni
I
on
min
Ufflamo��n
MEMUMMEMEM
i■niiii�i��C
■
■
��n
u�Immi
MIEN
on
ME
ONSIMMOMME
mom
■
■
�■■■ENO■■�■�����
������ME
��sum��
mMMMMMM
Milli
0
i�o■�■n■�nn
o■■i■
ONoii■■■
■a■�onn
■
■E■
1111111110111110
moonill!
MEN
ONE
MMMW
mionamosm
0
0■■ems
■��■���■■�
a■
■■no
nNONE:
■
■�i�
�n
iii=iiriii�iiu■i�■�iiE
SON�iin�iini
i°■iiiiomni�iiii
ii
ii�iiMi�■
■ni0�u=
�iuoom
�ii��■
Directions: Type in the applicable years across the top line.
List Program Activities down left hand side type in an "X"
on applicable activity line under month and year the activity will be initialed or completed.
At a minimun', the following activities should be included.
1) Advertise availability of funds and application period
2'1 Encumbrance of funds (12 months following end of State Fiscal Year).
3) Expenditure of funds (24 months following end of State fiscal Year).
I 4) Submit Annual Report to FHFC (September 15th)
i
{
ti.-
City of Miami
STATE HOUSING
INITIATIVES PARTNERSHIP
PROGRAM
(SHIP)
LOCAL HOUSING ASSISTANCE
PLAN
FISCAL YEARS 1995-96, 1996-979 1997-98
D9- 705
'N
CITY OF MIAMI
STATE HORSING 1NITIATIN"FS PARTNIAISHiP 11110GIZAM
LOCAL IIOtISING aSSIS'I'AN('I,: PLAN
Fiscal Years 1995-90, 199697, 1997-98
I. INTRODUCTION
The Cite of Miami. Florida is committed to addressing the issue of affordable housing,
by actively seeking various strategies for meeting the homeownership housing needs of
very low, low and moderate income persons. One of those strategies is the utilization of
the State Housing Initiatives Par111ership (Sill)') Program. The SHIP Program was
created through the William F. Sadm� ski Affordable I lousing Act, Jule 7. 1992.
The William F, Sadowski Affordable blousing Act is a comprehensive funding package
for state and local affordable housing programs. The SIHP Program directs a portion of
new and existing documentary stamp taxes on real estate deeds to local governments for
the development and maintenance of affordable housing.
SHIP funds enhance the City of Miami's efforts to facilitate the production and
maintenance of affordable housing. When combined with other affordable housing
initiatives. Sil1P funding makes it possible to provide housing opportunities that would
otherwise not be available to many of the citizens of this community.
The City of Miami's I..ocal blousing Assistance Plan (LHAP) is required by the William
E. Sadowski Affordable blousing Act. All funds expended under this plan are utilized in
accordance with the requirements and definitions of the SHIP Program, pursuant to
420.907-420.9079 of the Florida Statutes.
II. PLAN CRITERIA
This multi -year LHAP addresses the City of Miami's continuous efforts to provide
affordable homeownership opportunities for very low, low and moderate income persons
within tite City of Miami. it conforms to the City's Department of Community
Development's Five Year Consolidated Plan as submitted to the U.S. Department of
Housing and t)rban Development.
All assistance provided under this plan is available on an equal basis to all eligible
sponsors and/or persons without regard to race, creed, color, sex, marital status, family
status, handicap status, religion, or national origin.
All sponsors and persons receiving assistance under this plan will be contractually
obligated to comply with the affordable housing criteria that is established by the SHIP
program. Furthermore, recipients of assistance from both Si-IIP and State I lousing Credit
(SIIC) programs will comply with the income, affordability, and other SHC
requirements. Similarly, any sponsors or persons receiving assistance from other Federal
programs will comply with all Federal and SHIP program requirements,
1
J , 705
L
The Florida Housing Finance Corporation (FH1 C) will be promptly notified if the local
government is unable to comply with the provisions of this plan. Amendments to this
plan shall be provided to 1-1I1,C within thirty (30) days after adoption.
III. LOCAL HOUSiNG 1'ARTNERSIII11
The Cite of Miami DepmIllient of Community Development has utilized its affordable
housing, financing progr;uns to establish relationships with numerous not -for -profit
developers. i annic Mac. and local banking institutions to make available multiple
sources of funding for afli}rdnble housing proiccts within the Cite. fhc Cite has worked
closely -\ith these not-ior-profit commtill ity-hased organizations and other public
financing agencies to provide the maximum amount ol' financial Ievcragting. The
leveraOi11g1, of public and private funds Is essential for reducing the development costs of
affordable housinL projects.
The Cily of Miami provides financial assistance to various not -for -profit social service
agencies that in turl; provide a number of support services to the residents of the City of
Miami. Services provided include childcare, youth leadership, transportation, recreation,
mental health, handicap assistance, and many other services that are essential to the
stabilization of neighborhoods.
The City of )Miami's LHAI' was made available for public input at each of the City's
thirteen (13) Neighborhood Enhancement Team (NET) Service Centers located
throughout the City of Miami.
IV. STRATEGIES
SHIP funds will be utilized in four affordable housing strategies: homeownership
development, home purchase assistance, rehabilitation assistance to existing
homeowners, and replacement housing.
Strateav 1: Ilorneownership Development Proeram
The Homeownership Developtl item Proram will assist very low, low, and moderate
income persons by providing construction/permanent financing to assist with the
development of' newly constructed affordable homeownership units developed by not -
for -profit developers, private developers, or the City. Funds will be used for the cost of
land acquisition, site development, direct and indirect construction costs, as well as
permanent financing. SUCK permanent financing will consist of the conversion of portions
of the SI IIP Program development funds into downpayment/mortgage buy-down/closing
Cost assistance to the buyers of the newly constructed units.
Housing dcvclopmcnts assisted through this program will receive financial assistance of
up to $40,000/1.11lit or forty (40%) percent of the purchase price of the unit assisted,
whichever is less.
z
9 9 -
L
This assistance N\ ill he provided in the forth of a zero (V'O percent, deterred payment
loan: Forgiven on a pro-rata basis of tell ( 10° o) percent per year over a tell (10) year term
'
as long as the Unit is o\\ned and o.ceupied by the initial applicant. The loan will be
secured by the property. All SHIP funds outstanding \\ill he repaid to the City of Mianli
upon the sale of the honk to a subsequent buyer or upon refinance. Should the
honlcoN\ncr die and income-clivible heirs inherit the property during the tell (10) year
term, till` heirs \till not be re(plired it) repay till' pro -rota balance, but \\ill be allowed to
assume the illolllLauc pro\ Ided that the licit' becollles till' cm lll'r-occllpallt.
In no event shall principal and Interest pa}'illent of all of the 11I1a11cing plus escroly
pavillellts i:xcccd lhlrt\ (iO°n) percent of the family s total gross 111011thll' InCLlllle, unless
the first nlortg,agc lender determines that the household is capable of a higher monthly
payment and ran justif} a deviation from this standard.
Assistance \\ill be awarded oil a first conic, first ready basis until all funds are expended.
Strategy 2: DownpaVillent/(Mortgage Buy-down/Closing Cost Program
i
The_ Down pa}ill ent/Mortgage Buy-down/Closing Cost Program will provide for
downpayment. mortgage buy -down and/or closing cost assistance to qualified low, very -
low and moderate income persons, to assist in the purchase of newly constructed
affordable housim, units developed by not -for -profit developers, private developers, or
the City. It also provides for downpaynlent, mortgage buy -down, closing costs, and
repairs for existing residential properties within the city limits. In order to qualify for
assistance under this strategy, honlebuyers must receive a commitment from a first
}
mortgage lender. Assistance will be awarded on a first-come/first ready basis.
1
Assistance will be provided in tile form of a zero (0%) percent, deferred payment loan,
secured by the property; forgiven on a pro-rata basis of ten (10%) percent per year over a
ten (l0)year term, as long as the unit remains owned and occupied by the initial
applicant. The funding assistance will be due and payable to the City of Miami if the
f
property is sold to a subsequent buyer or upon refinance. Should the homeowner die and i
t
income -eligible heirs inherit the property during the 10-year terns, the heirs will not be
required to repay the pro-rata balance, but will be allowed to assume the mortgage 1
provided that the heir becomes the owner -occupant. Properties receiving funding under
this strategy that are in need of repair must have repairs completed within twelve (12)
I
months immediately after closing, Funds for repairs made to the unit which are to be
paid from the local SHIP Trust Fund will be deposited into an escrow account at the time
of closing and disbursed once the rehabilitation of the unit is completed. The maximum
amount of assistance for this strategy is $40.000 per unit.
Strategy 3: Owner -Occupied Rehabilitation Program
The Owner -Occupied Rehabilitation Program will provide rehabilitation assistance to
very low, low, and moderate income persons on owner -occupied single-family residences
1
within the City of'Miami. Assistance will be provided in the form of a zero (0%) percent,
1`
deferred payment loan, secured by the property; forgiven oil a pro-rata basis often (10%)
j
percent per year for a ten (10) year teen, as long as the unit remains owned and occupied
by the initial applicant. Should the homeowner die and inconle-eligible heirs inherit the
property during the ten (10) year term, the heirs will not be required to repay the pro-rata
3
� t) ;) 0
balance, but will be a110N%ed to asstunc the nunigage provided that the heir becomes the
owner -occupant. The maximum amount of assistance for this strategy is $40.000.
Assistance will be on a first come. first ready basis until all funds are expended. City
staff may priontl c assistance on the hasis of the degree of urgency needed to correct life
safety problems. Particularly. those life salcty or health problems \rhich significantly
affect the household and'or the surrounding Con till till ity.
Strategy 4:',ingic-F_anlily_Replacement Housing Program
i
The Single -Fancily Replaccntcnt i lousijIL I'ro,ram ,will provide assistance to very low,
low, and moderate income persons, but \\ill he wili/ed only in the event that a unit
selected for rchabiIirttloll c;uuu,t be repaired to a reasonable standard using SHIP funds.
other public or private funds, or a contbinatio;l of funding sources. A maximum arnouutt
of $65,000 per unit gill he aMilr&d to build a LION unit on land already owned by the
applicant or on vacant rcsidcntial property that m;ry be available and omled by the City
or Courtly. A\1ardS \011 be made on an as -needed basis. \\ ith priority given to households
that do not have the tirtanciaf means to secure it private mortgage loan for the full
is amount. but arc able to secure partial financing through a first mortgage lender. Funds
will be aw;udcd as a nro (U"o} prrccnt interest deferred loan fur a period coinciding with
the first morn(,age loan term. The funding assistance will be due and payable to the City
of Miami if' the property is sold to a subsequent buyer or upon refinance. Should the
homco\yner die and income -eligible heirs inherit the properly during the term of the
i
deferred mortgaLc. the heirs \� ill not be required to repay the pro-rata balance, but will be
I allowed to assume the mortgage provided that the heir becomes the owner -occupant.
I Applicants \gill choose from a builder pool that is pre -selected by the City with approved
]ionic floorplans in place. Assistance will be awarded on a first come, first ready basis
until all funds are expended.
V. APPLICANT GUIDELINES
1'
Eligible persons will be advised of the availability of these funds through notices in at
least three local newspapers, which have general circulation throughout the City of Miami.
Additionally, any persons whose names are held on waiting lists with the City of Miami or
SHIP funded organizations or agencies, will also receive notification.
r Applications \yill be processed on a first-come/first-ready basis until all funds are
obligated by income levels: ensuring that at least thirty (30%) percent is designated for
very lost income applicants and thirty (30%) percent for low income, with the balance of
available funds for moderate income applicants.
Applicants for SillP deferred payment mortgage loans tinder the Homeownership
Development Progran, the Downp;tyment/Mortgage Buy-down/Closing Cost Program, or
the Single -Family Replacement Housing Progran will be required to obtain a First
+ mortgage from it private mortgage lender. The applicant will also be required to
participate ate in a homeowner education class prior to the closing of these ponies.
;1
4
99 - r1®5
Iq
VI. AFFORDABLE HOUSING; INC11'NTIVE PLAN
The City of Miami Commission adopted the City of Affordable Housing
incentive Plan (:1H11') on October 10. 1990. in compliance with City of Miami
Ordinance No. 11251, Cit.\ of' Miami Resolution No, 95-188. City of R1ianti Resolution
No. 95-305. Florida Administrative Code and Section 420.9076 01' the Florida Statutes.
based on the recommendations oracle b\ the City of Miami's Affoordable Housing
Advisory Committee.
The City of Miami's AIM' pro\ ides developers of affordable housing projects with a
number of incentives that are intended to expedite the process and reduce the cost of
developing affordable housing projects.
The incentives available under the City of Miami's Ai IIP are as follows:
Expedited Permitting Proccss: Priority is given to affordable housing developments by
expediting the permitting process. The City of Miami's Department of Community
Development works closely \yith the Building Department in assisting developers
through this process. Developers of affordable housing projects whose projects have
been certified as affordable by the City of Miami's Department of Community
Development are eligible fir certain incentives that assist with expediting the permitting
process. Prior to presenting the projects building plates to the Department of Building
and Zoning for the plan review process, developers can schedule a pre -construction
meeting \\ ith the Department of Building and "Zoning. A prc-construction meeting is
attended by a representative from each of the plan review sections. This meeting
provides the developers with information and suggestions that will better prepare them
for the plan revision process. Once the building plans have gone through the plan review
process, developers can schedule a "Joint Review- meeting. also attended by a
representative of each of the planning review sections, to address the comments made by
the plan reviewers. ']'his process can shorten the permit approval process by 15 days.
There is no charge for this service to developers of certified affordable housing projects.
Review Procedure For Plans That Impact Affordable Housing: The City of Miami's
Affordable Housing Advisory Committee, (AHAC) is responsible for reviewing any
actions being considered by the City of Miami's Planning Advisory Board, Zoning Board
and City Commission that is considered to have an impact on affordable housing. AHAC
reviews the agendas of the aforementioned bodies and makes recommendations and
comments ore the items that are considered to have an impact on affordable housing.
Modification of Impact Fee Requirements: The City of Miami currently waives all
impact fees, as well as, the Interim Proprietary and General Services fees for affordable
housing developments.
Allowance for Increased Density Levels: The provision of a Special Use Permit that
allows the increase in density or square footage (with conditions) to particular affordable
housing developments.
Inventory of Publicly Owned Land Suitable for Affordable Housing: The City of Miami
has a formal inventory of all locally owned public lands. Said inventory includes land
suitable for affordable housing. This list is made available to not -for profit developers
and private developers for the development of affordable housing units.
5
L-
l{ Reduction of Parking and Setback Requirements: The City of Miami, through Ordinance
1 No. 11009. section 917.6 hermits a reduction in the parking requirements for housing
s
projects targeted iOr low income fitmil.ies and individuals.
To obtain co►lsidcration under am of' the incentives included in the Al IIP. a developer
must present 61101-111alloll C011ccNiillg the proposed development to the City of Miami's
Uepartnlent of� Conurinnily Development. If the proposed development is determined to
be affordable, a letter vgill he issued to all applicable Cite of Miami departments
requesting their cooperation in facilitating the application of the incentives to the
proposed Al'ordable housing project.
VII. AFFORDABILITS'
The SHIP Program considers housing affordable when the monthly rents or monthly
mortgage payments, including taxes and insurance, do not exceed 30 percent (unless it is
determined. and can be financially justified, that the household is capable of a higher
monthly pad ment) of the gross household income limits adjusted for family size.
VIII. INCOME LIMITATIONS
The SHIP Program is designed to benefit very low, low, and moderate income families.
i The maximum income levels for each income group adjusted for family size are provided
to the City of Mianli by the Florida Housing Finance Corporation and are adjusted upon
receipt ofthe new limits.
IX. MAXIMUM PURCHASE PRICE
L The maxinnlm purchase price of a SHIP assisted, new or existing homeownership unit
I
will not exceed 90% of the median purchase price of said unit in the Miami PMSA. The
maximum sales price of a newly constructed unit to be assisted with SHIP funds cannot
exceed $1 19.439. The value of existing units that will receive assistance cannot exceed
$113,418.
X. SELECTION PROCESS
Qualified individual applicants will be selected or awarded funds on a "first come, first
ready" basis for program assistance after the availability of program funds or activities
are advertised. Tile City of Miami will advertise the availability of funds thirty (30) days
prior to accepting applications.
i
Qualified sponsors under the Homeownership Development Program will be selected
based on, but not limited to, the following criteria:
• Number of Still' qualified persons/families aided in each category: very low,
i low, and moderate income
6
OJ- ``10%
i
Number of homeownership units developed
• Use of funding, sources other than SI IIP
• Maximum use of financial Ic\craging o1'SI IIP funds
• Maximum use of lc\ craging of all Cite of Miami funding
• Least cost her square fool
• Development proposed on Cite of Miami o\\ncd land
• Proposals demonstrating that cmploynient will be provided to personnel from the
WAGES Program and \Vork Development Initiatives Program
XI. TARGETED ACTIVITIES AND GROUPS
The Cite of Nlianii's Local Ilousing Assistance Plan for FY1995- 96, 1996-97, 1997-98
\\ ill use 90° 0 of SI IIP funds each fiscal year for homeownership activities.
All proposed program activities will be targeted to very low, low- and moderate income
r person. At least 30% of all SHIP funds shall be utilized to assist very low income
families. 30% for low income families and no more than 30% will be utilized to assist
moderate income families, based on the defined income limits.
XII. ELIGIBLE APPLICANTS i
Applicants for funding under the SHIP Program strategies will be subject to the City of
} Miami's funding, award criteria. The City of Miami will review each applicant's
proposal and determine eligibility and the appropriate level of funding.
i The purchaser's gross annual income must not exceed 120% of the median income in the
i Miami PNISA, adjusted for family size, and must occupy the property as a principal
residence.
The prospective hoinebuyers must have a good credit history. If a SHIP mortgage is
provided to its a do\\npaymenUhuy-do\\n, then the must be approved for a mortgage
from a participating mortgage lender. Proposed mortgage financing arrangements nrttst
be found acceptable and/or beneficial to the participating homebuyer. Estimated total
mortgage payments including escro\v, should not exceed thirty (30%) percent of the
3 honlebuyers 111711thly gross income, when determining affordability of the unit. In the
event a first mortgage is provided, the homebuyer must meet the qualification guidelines
i as indicated herein.
XIII. RECAPTURE. PROVISION
7
�J- rrf 0a
The Cite of Miami will provide SI III' assistance in the form of deferred payment loans,
not to exceed the maximum limits as indicated in this plan.
All loans shall he secured by a note and niortgage on the property, which shall be
recorded either in a first. second or third lien position.
The homeowner man `ell the property at any time and must repay the City of Miami a
pro-rata share of `+l 111' suhsicly from the sales proceeds. Any proceeds remaining after all
mortgages have been repaid. including, the SI III, subsidy. shall belong to the homeowner.
The SKIP proceeds repaid to the City kit' Miami will be deposited in the local SKIP Trust
Fund and used by the City of Nliami for other- SI11P assistance.
In the event that the proceeds from the sale are insufficient to repay the outstanding SHiP
subside, file City will recapture whatever proceeds are available after the senior
mortgage(s) from anv private tender (if any) has been repaid.
The homeowner is required to reside in the property as his/her principle residence during
the entire term of file loan. If the homeowner should die and income -eligible heirs inherit
the property during the term of the loan, the heirs will not be required to repay the pro-
rata share, but will be allowed to assume the mortgage provided that tide heir becomes the
owner -occupant of the property.
XIV. IMPLEMENTATION AND ADMINISTRATION
The cost of administrating the LHAP shall be ten (10%) percent of the SHIP local
housing distribution. A summary of the administrative budget is outlined below, on an
annual basis:
FY 1995-96:
Personnel $106,270
Contractual Services 6,560
Office Supplies 3,930
Audit/Advertising/Other 14,430
Total $131,190
FY 1996-97:
Personnel
Contractual Services
Office Supplies
Audit/Advertising/Other
Total
$115,344
7,120
4,272
15,664
$142,411
8
FY 1997-98:
Personnel $108,406
Contractual Services 6,692
Office Supplies 4,015
Audit/Advertising/Other 14,722
I otal $133,835
The City of Miami Commission serves as the policy settinf; body responsible for the
SHIP Program. The Department of Community Development is responsible for the
implementation and administration ol'the LHAP, which includes the following:
• Plan design. plan implementation, fund administration, monitoring, and reporting;
• Providing advice and recommendations to the City Commission on improvements to
the LiiAP
XV. PLAN DURATION AND EFFECTIVE DATE
The City of Miami's Local dousing Assistance Plan will become effective immediately
upon its adoption by the City of Miami Commission and subsequently approved by the
Florida Housin-, Finance Corporation. The multi -year plan contained herein is for the
State fiscal years 1995-96, 1996-97, and 1997-98. It may be amended dependent upon
changes in strategies and other requirement by the partnership and approval by the City
of Miami Commission. Any plan amendment will be submitted to the Florida Housing
Finance Corporation within thirty (ail) days after adoption by the City of Miami
Commission. Florida Housing Finance Corporation will be notified promptly if the City
of Miami is unable to comply with the provision of this plan.
XVI. ENCUMBRANCE AND/OR EXPENDITURE REVIEW
Twice during each program year, the City of Miami conducts a review of its SHIP
Program to ensure that the encumbrance and/or expenditure time requirements are being
adhered to. If it is determined that any of'the City of Miami's funds may be in danger of
not meeting its encumbrance and/or expenditure deadlines, the City makes every effort to
transfer the affected funds to a strategy that is not in danger of'meeting these deadlines.
i
i
1
9
99- 7
FLORIDA HOUSING FINANCE AGENCY Metro xrMniM ali 4m Mm
HOUSING DELIVERY GOALS CHART New Plam
STRAILGILS FOR THE IOCAI IfOUSWG ASSISTANCE P(AN (OR STAII IISCAI YEAR: 1995-96 Amrndment: n x
t isx al lr. Clasrou(. L__
Name of local Government: City of Miami Annual Allo(ation Amount: $1,311,901
HOME OWNERSHIP
STRATEGIES
Fiottmholds by Income and hlaximunl SHIP Awards
New CortsinKtion
Rehab?Repalr
Without Construction
Total
Tota
Prrccnla
wa, mnm still,
��
l`na. Ln+
,,.,, m,o.n sill`
l'nd+ Mnd
Ma,onoo, ltrr
Inlal l!nrt+
SHIP Dullan
SHIP Doll. r+
SHII' Dollars
SIIIP Dollars
Homrownrrship Dr,elopt„ent Pn.gram
nonnpalment(loungC-tAuntance
Owner 0, c up,rd RAW,
Hou—Z RP h,rmenl
11
c1{1,,t(lu
$40,(1(Ill
G_ 1�1.11�1t1
i
4
Sat;,ultu
$4(1,O11(1
�a 1 1 )?
I�
n
4
5an,000
$40,11(1O
S 11
fff
t5
8
r
5451,531
$298,522
ti„1 50
$.151,53�I
$298,522
S,
34.,1
22.1
32.8
0.0
-
1
r(, 1 I 1
1
A_
S
ubtotal T (Home Ownership)
t 1
i ,
E,
)4
$750,061
$430,650
$0
$1,180,711
90.0t
`,oce 1 he Hume (h. till ship Prr, rnlage deugnalyd ,n \uhlutal 1. C olumn !, rnu+t LP al IPw t, .% of the Annual Allot aliun Amlwnl.
RENTAL
STRATEGIES
Households by Income and Maximum SHIP Awards
New Combustion
RehablRepair
Without Comutadion
Total
Total
Perrentatte
1!mb Prrt
Na,nnum SHIP I
J
(in Is (,n
^laumum SHII'
(,no, \1nd
Ma,imum SHIP
lnlal Limn
SHIP Dollars
SHIP Dollars
SHIP Dollars
SHIP Dollars
r
Subtotal 2 (Non -Home Ownership)
_
Administration Fees
( Administration fees may not exceed 10",, of Annual Allocation)
$1 3 l ,190
10.0'
Home O,+netship Counseling
$0.00
GRAND TOTAL
,ea sw,manor.ram,�dmn.r.ranoR.o.�..,n,e,,,.�,as
Percentage of Total
Households Served:
13
Units
Very
L(r,v
$451,4ag
34 4",,,
1=,
to,%
� ,1n f��i i
h
'`1r'YI
$!(It�r "i,"tt
14 �;'S(1(11,1
S41t)fr,fl
Sn
S1 11190�11
l'nrt+
38.2"
Percentage Construction/Rehab (75°a,+1: Cal,ulat, consu. Rehab Pertr i In addmg trend total (olunms A&b, Then dnide bf Annual All Ahun Am,.
90.01,1
_
Maximum Allowable
Purchase Price:
New $11'.1,439 Existing $113,418
FLORIDA HOUSING FINANCE AGENCY
HOUSING DELIVERY GOALS CHART 114r.
STRATEGIES l OR 1HE LOCAL HOUSING ASSISTANCE PLAN [OR STATE LISCAL YEAR: 1996-97 Amendment: k x
I i,r al 1 r. C lasroul:
Name of Local Government: Cite of Miami Annual Allocation Amount: $1,424,111
A 6 C D C
HOME OWNERSHIP
STRATEGIES
Households by Income and Maximum SHIP Awards New ConstnMi
Rehab/R air
cp
Without
Conviructim
Total
Total
Units \'er, low
Afa,imum SNI!'
A,.ard
Umh im+
Va,llnum SHII
A„and
[ hn(r Mod
Maumurn SHI!
total unit,
SN!f Uollars
SHIP Dollars
SHIP Dollars
SHIP Oollart
Percentage
HOTCONnet5h111 Development Program
0
S40,000
0
$40,000
0
14ward
$40,000
(1
$0
rtnn
0.001%
oo,opa-en! Clo,mg Cmt Ass., tame
$40,000
$40,(100
3
$40,00i)
17
$320.425
$320,42i
$640,850
45.00!
O„ner Occupied Rehan 10
$40,000
i
$40,000
2
$40,000
17
$640,850
$640,850
45.00%
Hm,,ng Rry,lacrment
0
$65,000
0
$65,000
0
$65,000
0
0.00%
Subtotal 1 (Home Ownership)
17
1'
;
344
1 $3Z0,425)
IS961,275
$0
$1,2181,700
90.00%
note: The Horne 0--hy Pe, a Iagr de,,gnawd in Subtotal 1, Cnlurnn 1, muu be at I—( of the Annual Allm at I Anluunt.
RENTAL
STRATEGIES
Households by Income and Maximum SHIP Awards Ncw Comtructi
Rehab,'Renair
Total
SHIP Dollars
Total
Percentage
Units V'rrt lo„
Maumum SHIP
Units low
A,aumum 51111
Una. Mod
Navlrnum SI111
Laal Urals
SHIP Uollars
SHIP Dnilars
SHIP Uollus
Subtotal 2 (Non -Home Ownership)
Administration fees
i Administration (cc%may not exceed 10".. of Annual Allo(ation)
142,411
10.01,
Home Ownership Counseling
MMMUMIMMO
$0 00
GRAND TOTAL
3-4
n1.
_S.tf33E—'e-- �1�a�a)
L
100.0 ".
-
-. .�
Percentage of Total
Households Served:
UnitsV'en
Lo
�
Sr,4ll,i3i(
t .0';,,
Unlf,
I t)
1J l�nit>
� 15?,44(� n t! i
1 8", 1 3 ; "..
? 188.41(1
lnlsl
50.0'i,�
3i :3".,
1 3-.'"
il)U".,
Percentage Consiruclion'Rehah(7.5"v+): calculatecnndr.r Rehab Perccm,b> adding Grl(ul-11 A&B, men dnule bl Annual 41111 anon Ami.
Maximum Allowable
Purchase Price:
Net% $119,431) Existing $113,418
0 r�
FLORIDA HOUSING FINANCE AGENCY "'""`"
HOUSING DELIVERY GOALS CHART NPN Plan:
STRATEGIES FOR THE LOCAL HOUSING ASSISTANCE PLAN IOR STATE fISCAI. YEAR: 1997-98 Ansendment. X
I fiscal 1'r. Onsemd:
Name of Local Government: Cily of Miami Annual Allocation Amount: $1,338,358
A B C D E
tfOME OWNERSHIP
STRATEGIES
Households by Income and Maximum SHIP Awards New Construct
RetsatstRepair
C�smrion
Total
Total
Units 5-rr) loss
Maumum G111 V`
ANdrd
l'nik lass
5laumum Sf ill
ANJtd
1'nn; xtod
SLJsinnuse lilt
ANJrd
hrbrl Units
SHIP Uollan
SHIP Dollars
SHIP Du!lan
SHIP Dollars
Percentage
Homeownership Drsrlopmenl P-pam
S40 000
11
$40OOO
0
$40,000
O
DoNnpavmenl'e ln;in%cri A,54ta.,
0
S-I0,00D
h
$40,000
'1
40,(100
15
$268,631
$+268,631
$537,262
40.20%
ONne,OccupiedRehab 8
$40,000
O
$40,000
$40,000
16
$602,261
$602,261
45.00
Housing Replacement _—
i
$65,000
0
0
1
$65,000
$65,000
4.80%
1
Subtotal l(Home Ownership)
15
12
i
32
$313,031
$8'0,8921
50
1 S1,204,523
90.00J,
Note: The Home ONnenhlp Per, rntagr dr,.gnalyd in SubtolJl 1. Column 1, must be at 1-1 bl"„ of The Annual Allocation Amount.
RENTAL
STRATEGIES
Households by Income and Maximum SHIP Awards New Const96,
Rehab.Repair
Total
Total
Units Vert IoN
Atasimum SHIP
Award
Umis !oN
5lasimum SHII
Award
Units UudSHIP
Masimum SHII
xss,ad
Uullais
SHIP Dollars
SHIP Dollars
Perc enlage
-
r---
Subtotal 2 (Non -Home Ownership)
Administration Fees_
( Administration fees mail not exceed 10",, of Annual Allocation)
1.3.3,83 `i
10.0"11
Home Ownership Counseling
—k f r
:0 00
MM
mill I
GRAND TOTAL
L 12
I
� =>
i_ 12
= _ a
4..33 3,0 31 tiP (1 ti i! 11
��
Percentage of Total
Households Served:
Units Vern
Low
42.2°.,
Unll�
Lot.
I
13.8':,.
Unitti
Null-
Tnt'd
UnliS
40.9'!,,
37.5111,
15.0",
14.0 —1 100".,
Percentage d ConStruction,'Reh(75"„+>: CdlculJlr ConslrJRehab Percent. br adding Grantotal CoUnn, Abu, lhrn dnidr bi Annual Alhx dhon Anrt. ')0.0"„
Maximum Allostiable
Purchase Price:
New $119,439 1 Existing I 1 137
TIMETABLE FOR STATE FISCAL YEAR 1995 - 1996
Local Government City of Miami
0
1 MONSOON
MIN
.0
mom
MENEM
ONE
ON
mass
0
no
0
OMEN
MI
N
Simmons
ON
0
M
MOM
in
M
�ii�
n
MENEM
OMEN
i
■OISOMENESS
�
��iNu
��n
MMMMMMoMM1I■
■
■
mom
M
MEMENNIM
Olson
MEM
0.0
SEMEN
mmommon.
0
0
0
MENEM
so
.EMMI
mom"
0
SM90
0
His
No
MEMO
0
MONO
SM
onsomm
MESON
MMM
on
mom
ON
1i..■a■nNSOON
111
0
mom
son
�■M
MESON■.��■■■IN
om
0
on
i
ONO
INMMMM
�ai.■u■
nii
.i..
nM
0
M
goo
MEMO
no
mommossonlin
M
0
0
MEMO
0
�■ii
��
■■nu%�i.M0MMr
u■u
.■■..5
n..SEMIN
■MoNMi
No
MENom
ION
M
an
noun
�i
SIMMONS
'o'�oe�i
�iuinNSON
i
inu�iiin
o
Directions:
Type in the applicable years across the top line.
List Program Activities down left hand side type in an "X"
on applicable activity line under month and year the activity will be initialed or completed.
At a minimum the fol(oving activities should be included.
r
1) Advertise availability of funds and application period
2) Encumbrance of funds (12 months following end of State Fiscal Year).
'
3) Expenditure of funds (24 months following end of State fiscal Year).
4) Submit Annual Report to FHFC (September 15th)
IS Expenditure deadline extended by FHFC SHIP Review Committee from
6/30198 to 12/31/99
ISFinal Report deadline extended by FHFC SHIP Review Committee from
09/15198 to 09/15/2000
S
f
TIMETABLE FOR STATE FISCAL YEAR 1996 - 1997
Local Government City of Miami
�■��ip■��
■■
■�
■�iiiiiiiiiiiii
■
inn
■
yin
1110
m
ONn■�no
MM
Rammmsmm
n
an
■
i■n■=�i�in���
■
■�
�
i��nn
�ME
0
■
■o■i�i
�
men
III
ii
�iii■■si
ii
i
i�i�u�on
■
irii�i�pii
■nii
1MMMsEoMMMM
on
0.000000
iiiii�ii
iMinnN■inri
�
i
son�
min
0
No
0
MARINE
OMENS
M
monomme
So
ONION
man
M
son
NEWS
0
monommoninnommosonom
mm
all��■i■iu'=�i■ii'nii
ii�i�iiiiioiiinCii
�
�■i�iONO
n�i�
ii
i'Ciiiii'iii'��iiiiiiN�o���10000011111111
�ii�
_
i■i■a3�iiii�����,
o��ii.
Directions: Type in the applicable years across the top line Expenditure deadline extended by FHFC SHIP Review Committee from
List Program Activities down left hand side type in an "X" 6130199 to 6/30/2000
on applicable activity line under month and year the activity will be initialed or completed.
At a minimum the following activities should be included: ® Final Report deadline extended by FHFC SHIP Review Committee from
1) Advertise availability of funds and application period 09/15/99 to 09/15/2000
{ 2) Encumbrance of funds (12 months following end of State Fiscal Year).
31 Expenditure of funds (24 months following end of State fiscal Year).
4) Submit Annual Report to FHFC (September 15th)
i
I
y
I
i
TIMETABLE FOR STATE FISCAL YEAR 1997 - 1998
Local Government City of Miami
Program
.
iuiin
■■i�ii0
i
�irii�u�■�i
iii
iiiN■
�
111111
0
N
M
1
0
ommommino
M
M
NOON
mini
no
OMM
HIM
go
0
WE
0
mom=
logo
no
MOONS
lnnomommmono
13131212111111111
an
ago
No
sonommommono
�in■
0.
Eiiiii=�Ciimom�ii■■�'i
ON
men
onsommommMonson
ONE
MENNEN
mommommons
M
0
loon
nominen
mom
Niglio
ommmo
Ill
mmsimmom■n■■�■ii
so
�i
SOMEONE
nMENEM
■
��■■iin�■■ii
=�■n
=ON.=
�imomms
111
No
on
,Expenditure
Nnomm�mmin
RON
MEN
0
lonsommomms
somosom
MEN
OMENS
No
Directions: Type in the applicable years across the top line.
List Program Activities down left hand side type in an "X'
on applicable activity line under month and year the activity will be initialed or completed.
At a minimum the following activities should be included.
G� 1 t Advertise availability of funds and application period
2) Encumbrance of funds (12 months following end of State Fiscal Year).
3) Expenditure of funds (24 months following end of State fiscal Year).
4) Submit Annual Report to FHFC (September 15th) -
1� i
C;7
CITY OF MIAMI, FLORIDA 12
INTER -OFFICE MEMORANDUM
'O : The Honorable Mayor and Members of DATE, SEP ' 7 F(L.E
/on;d
mmission
SUBJECT
Resolution Approving City's Revised
ppLocal Housing Assistance Plans (SHIP
FROM ` ""- REFERFNCESrogram)
Varshaw City Commission Meeting of
City Manager ENCLOSURES. September 28. 1999
RECOMMENDATION:
It is respectfully recommended that the City Commission adopt the attached resolution approving the
City of Miami's revised Local Housing Assistance Plans for the period covering fiscal years 1995-
1998 and 1998-2001, required by the State of Florida for the City's continued participation in the State
Housing Initiatives Partnership Program (SHIP Program) for the aforementioned periods.
BACKGROUND:
In 1992, the William E. Sadowski Affordable Housing Act established the State Housing Initiatives
Partnership (SHIP) Program, which is administered by the Florida Housing Finance Agency. SHIP
Program funds are derived from set -aside allocations from documentary stamp levies on real state
transactions statewide.
In 1995, the City of Miami became eligible to receive SHIP Program funding from the State of Florida
and has received approximately S1.3 million annually beginning with the State's Fiscal Year 1995-96.
In order to receive funding. through the State Housing Initiatives Partnership Program, each unit of
local government participating in the SHIP Program must submit a Local Housing Assistance Plan to
the State of Florida. The Local Housing Assistance Plan essentially outlines how the Cite proposes to
utilize the funds received from the State of Florida through the SHIP Program.
In November of 1996. through Resolution No. 96-85 L the City Commission approved and directed the
City Manager to submit the City of Miami's revised Local Housing Assistance Plan for the period
covering fiscal years 1995-1996, 1996-1997 and 1997-1998 for review and approval by the State of
Florida.
In April of 1999. through Resolution No. 98-336, the City Commission approved and directed the City
Manager to submit the City of Miami's Local Housing Assistance Plan for the period covering fiscal
years 1998-1999, 1999-2000 and 2000-2001 for review and approval by the State of Florida. In
September of 1998, the City's Local Housing Assistance Plan for the period covering fiscal years
1998-1999, 1999-2000 and 2000-2001 was approved by the State of Florida which allows the City to
continue to participate in the SHIP Program.
ti
a
{
i
unds are being made
Presently, through the City's Local Housing Assistance Plan. SHIP Program f
available only to Community Housing Development Corporations (CHDOs) in the form of funding for
site acquisition, site development, construction and permanent financing, in connection With the
-nership units in the Cite through the City's Homeownership
development of affordable homcoW
Development Program. In addition, through the Downpayment/Closing Cost Assistance Program, the
City is making available up to $2.500 in do\N-npayment and/or closing costs assistance to qualified very
low and low and moderate income persons to assist in the purchase of a newly constructed owner -
occupied residential units developed by CHDOs in the Cite.
Due to construction delays on several affordable housing projects. Which have been funded by the City
and are planned for development by several Community Housing Development Corporations, the City
of Miami has been cited by the State of Florida for being out of compliance relative to the Program
guidelines regarding th,e timely expenditure of SHIP Program funds. Based on the SHIP Program's
definition for "expended funds funds are not considered spent until the housing project is completed,
and the housing units are sold and occupied by the eligible families. In an effort to address the
concerns Which have been expressed by the State of Florida regarding the City's expenditure of SHIP
Program funds in a timely manner, the Department of Community Development is recommending City
Commission approval of the City's revised Local Housing Assistance Plans for the periods covering
fiscal years 1995-1998 and 1998-2001. Approval of the attached modified Local Housing Assistance
Plans would enable the City to expand the number of housing assistance programs which would be
available to very low and low and moderate income eligible families within the City of'Mianli.
Several of the new housing programs. Which are being recommended for implementation through the
City's modified Local Housing Assistance Plans, are consistent with the City's Five (5) Year
i Consolidated Plan. As you are aware. the City's Consolidated Plan emphasizes a housing strategy
which focuses on increasing the availability of affordable homeownership opportunities to very low
and low and moderate income families through public/private partnerships between the City. Miami -
Dade County, private and not -for -profit housing industry and private financial institutions. While the
major focus of the City's efforts over the next five (5) years will emphasize a long term
homeownership strategy for stabilizing the City's predominately residential neighborhoods through the
establishment of seven (7) "Homeownership Zones" in the City, the need to insure that the City's
existing housing stock remains safe. decent, sanitary and affordable to both owner -occupants and the
elderly through various rehabilitation activities is also equally important.
With the approval of the City's modified Local Housing Assistance Plan, the City's SHIP Program
funds will be utilized to fund the following programs:
Homeov,mersl_ dip Development Program
The Homeownership Development Program is designed to increase homeownership opportunities
for very low and low and moderate income persons by creating new affordable homeownership
housing units in the City. SKIP Program funds through this Program will be used for the cost of
land acquisition, site development, construction and permanent financing associated with the
development of affordable housing units. This strategy is being modified to allow for not -for -profit
L
~ housing corporations and the private housing industry to participate in the development of new -
affordable homeownership housing units in the City. SHIP Program funds utilized under this
strategy for construction by the developer will be converted into downpayment. mortgage buydown
or closing costs assistance to the prospective homebuycr of the newly constructed housing units.
Housing projects assisted through this program can receive financial assistance up to S40.000/unit
or forte• (40%) percent of the purchase price of the housing unit assisted. whichever is less.
2. Downpavment/illortgage Buvdoii,n/Closing Cost Assistance Program
This Program will provide downpayment, mortgage buydown or closing cost assistance to qualified
very low and low quid moderate income persons. to assist in the purchase of newly constricted
owner -occupied housing units developed by not -for -profit housing corporations, private sector
developers) or the purchase of an existing residential property within the corporate limits of the
City. Financial assistance provided will be in tiie form of a zero (0%) percent deferred payment
loan secured by the property. and will be forgiven on a pro-rata basis of ten (10%) percent over a
ten (10) year tern. as long as the housing unit is owned and occupied by the homeowner. The
financial assistance provided will be due and payable to the City of Miami if the property is leased,
sold to a subsequent homebuyer or upon refinancing, by the current homeowner. Any residential
owner -occupied property requiring rehabilitation under this strategy would have to be completed
by the homeowner within twelve (12) months after the culmination of the home purchase. A
maximum of up to S40.000 in financial assistance would be available to a homebuyer(s) that would
reside and maintain the property as their principal residence.
3. Owner -Occupied Residential Rehabilitation Program
This Program will provide rehabilitation assistance to very low and low and moderate income
persons that occupy and maintain their homes as their principal residence. Eligible homeowners
will receive financial assistance in the form of a zero (0%) percent, ten (10) year deferred payment
loan secured by the property. that will be forgiven ten percent (10%) per year while the homeowner
continues to own and occupy the property. In the event the property receiving financial assistance
is leased or sold during; this ten (10) year period, the balance of the loan must be paid back to the
City. In the event of the death of the eligible homeowner receiving the financial assistance and an
income eligible heir(s) inherit the property during the ten (10) year term, the heir(s) y01 not be
required to repay the pro-rata balance of the deferred loan, but will be allowed to assume the
mortgage provided that the heir(s) becomes the owner -occupant. A maximum of up to $40,000 in
financial assistance would be available under this strategy for homeowner(s) that reside and
maintain the property as their principal residence.
4. Single Family Replacement Housing Program
This Program is designed to address substandard and dilapidated housing units when the cost of
rehabilitation is no longer economically feasible. Financial assistance through this Program would
only be available to eligible homeowners who reside in homes where the most appropriate solution
to their housing problem would be to demolish the existing home and replace it with a newly
09! rf 0a
3
constructed housing unit. This strategy would be employed on a case by case basis, when the cost
of rehabilitating the existing home exceeds the maximum amount of $40.000 available under the
City s Single Family Rehabilitation Loan Program. The maximum amount of financial assistance
available under this strategy inclusive of the cost of- demolishing the dilapidated structure and
construction of the new home shall not exceed $65.000. Priority will be given to households that
do not have the financial ability to secure a private mortgage loan for the full amount of financing
required, but are able to secure partial financing through a first mortgage. Financial assistance
provided bN the City will be provided as a zero percent (0%) interest deferred loan for a period
coinciding Nvith the tern of the first mortgage loan. The City assistance %gill be due and payable to
the City if the property is leased, transfer of title occurs, sold to a subsequent homebuyer or upon
refinancing by the original horneowner.
Unlike the income requirements and restrictions of the Community Development Block Grant and
Home Investment Partnership Programs that a family cannot earn more than eighty percent (80%)
of the median income for Mianii-Dade County. the SHIP Program allows families earning up to
one hundred twenty percent (120%) to participate in the various housing programs funded through
the SHIP Program. Currently, a family of four (4) seeking housing assistance through the CDBG
and HOME Programs cannot earn more than $35.700 annually. Through the SHIP Program, a
family of four (4) earning up to $53.520 would be eligible to secure financial assistance through the
SHIP Program. In an effort to provide financial incentives to City employees and middle income
families to reside in the Cite, and in addition to promoting neighborhood revitalization through the
rehabilitation of single family o«ner-occupied housing units, it is recommended that the City
gh/4yCommission approve the attached resolution.
DB/GC`��/JBH/mb
Enclosure
4
L