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HomeMy WebLinkAboutR-96-0851J-96-1224 11/13/96 RESOLUTION NO. 9', ,1w 8 5 1 A RESOLUTION, WITH ATTACHMENT (S), APPROVING THE CITY OF MIAMI'S REVISED LOCAL HOUSING ASSISTANCE PLAN, PURSUANT TO THE IMPLEMENTATION OF THE STATE OF FLORIDA'S STATE HOUSING INITIATIVES PARTNERSHIP ("SHIP") PROGRAM TO THE CITY OF MIAMI; AUTHORIZING THE CITY MANAGER TO SUBMIT SAID LOCAL HOUSING ASSISTANCE PLAN, ATTACHED HERETO AND MADE A PART HEREOF, FOR REVIEW AND APPROVAL BY THE STATE OF FLORIDA HOUSING FINANCE AGENCY, 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 i William E. Sadowski Affordable Housing Act ("Sadowski Act"), I which allocates a portion of new and existing documentary stamp !i taxes on deeds on real estate transactions to local governments I 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 Program ("SHIP"); and WHEREAS, in August 1994, the City of Miami was notified by the State of Florida that the City would be eligible to receive $1,353,387 in SHIP Program funds beginning with the State's Fiscal Year 1995-96; and ATTACHMELIT�� CONTAINED j CITY COMMISSION MEETING OF NOV 2 1 1996 Resolution No. 9 6,u- 8 5 1 WHEREAS, on March 9, 1995, the City Commission, pursuant to Ordinance No. 11253, established and approved the City's Local Housing Assistance Plan; and WHEREAS, since securing initial City Commission approval, 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 thereto and incorporated herein as if fully set forth in this Section. Section 2. The City of Miami's Revised Local Housing Assistance Plan, pursuant to the implementation of the State of Florida Housing Initiatives Partnership ("SHIP") Program in the City of Miami, is hereby approved, and the City Manager is hereby authorizedllto submit said Local Housing Assistance Plan, attached hereto and made a part hereof, for review and approval by the State of Florida Housing Finance Agency 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 i program. Section 3. The City of Miami shall use any funds received pursuant to the State Housing Initiative Partnership Act The herein authorization is further subject to compliance with al requirements that may be imposed by the City Attorney, including, but not limited to those prescribed by applicable City Charter and Code Provisions. - 2 - r to implement the City of Miami Local Housing Assistance Plan which is hereby created and established. The City of Miami Local Housing Assistance Plan shall consist of the following: i A. Homeownership neye ny mPnt Program. It is the intent of the City of Miami's Homeownership Development Program to increase homeownership opportunities for very -low, low and moderate income persons by creating new single family, affordable housing units. SHIP Program funds dedicated by the City of Miami for funding of the City of Miami's Homeownership Development Program I shall be used for the cost of land acquisition, site development, construction and permanent j financing associated with the development of i affordable housing units. The SHIP Program funds reserved for this strategy will be utilized by the i City of Miami to provide acquisition, site development, construction and permanent financing to City of Miami to provide acquisition, site development, construction and permanent financing to City of Miami certified Community Housing Development Organizations (CHDO'S), to assist with the development of homeownership single i family units, affordable to very -low, low and imoderate income families. Once construction has i been completed, the SHIP Program funds will then Ei be converted into permanent financing to the individual buyers for the newly constructed units. B. D aymen /C1Zng Costs Assistance Program- The City of Miami's Downpayment/Closing Costs Assistance Program provides down payment and/or closing costs assistance to qualified very -low, low and moderate income persons, to assist in the purchase of newly constructed single family, fee simple units under the City of Miami's Scattered Site Affordable Homeownership program or newly constructed affordable homeownership units developed by a City of Miami Certified Community Housing Development Organization (CHDO), or units purchased by eligible City of Miami employees willing to reside within the City of Miami. Section 4. This Resolution shall become effective immediately upon its adoption. PARRRn ANTS AnnPTRn t-hi c 21 5t. I ATTEST: 4 WALTER J. OE E. CITY CLERK W.= day of November 1996. , tl ,,r.8—TAROLLO, MAYOR 5 PREPARED AND APPROVED BY: NDA KELLY KIARSON ry 0 ASSISTANT CITY ARSON EY APPROVED AS TO FORM AND CORRECTNESS: Ilf A4. CITY *ATTO LKK/BSS/PB/W1237 CITY OF MIAMI STATE HOUSING INITIATIVES PARTNERSHIP PROGRAM (SHIP) LOCAL HOUSING i ASSISTANCE PLAN FISCAL YEARS i •a • i i !.8 96-851 f The City 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 such strategy is the State Housing Initiatives Partnership Program, hereinafter, referred to as SHIP. SHIP was created through the William E. Sadowski Affordable Housing Act, July 7, 1992. The William E. Sadowski Affordable Housing Act, is a comprehensive funding package for state and local affordable housing programs. The SHIP Program channels a portion of new and existing documentary stamp taxes on deeds directly to local governments for the development and maintenance of affordable housing. SHIP funds will enhance the City of Miami's efforts to facilitate the production of homeownership housing which is affordable to low, very low and moderate income persons. Combined with other supporting housing initiatives, SHIP funding will make it possible to provide affordable homeownership opportunities to a greater percentage of our community that would not have been possible without the assistance of SHIP funds. The following is the City of Miami's Local Housing Assistance Plan, which is required by the William E. Sadowski Affordable Housing Act. The Local Housing Assistance Plan is a description of the method of how the City of Miami will utilize SHIP funds in accordance with the requirements and definitions of the SHIP Program,. pursuant to 420.907-420.9079, Florida Statutes. Since 1979, the City of Miami acting through the Department of Development and Housing Conservation has undertaken several new local housing initiatives to increase the supply of homeownership housing units, affordable to very low, low and moderate income families. Over the past several years, the City has participated in a number of public/private housing ventures designed to increase the supply of new housing resources in the City. Through the City's Affordable Housing Development Program, the City of Miami is making available publicly owned, vacant development sites at a write -down to not -for -profit developers and/or community - based housing development corporations (CDC's) for the development of both rental and homeownership housing units affordable to low and moderate income families and individuals. 1 9 "' M 8 5 1 The City of Miami believes strongly that one of the keys to long-term neighborhood redevelopment and stability is owner -occupancy of the neighborhood housing inventory. However, the carrying costs associated with the purchase of a single family home in the City's Community Development Target Areas, is substantially beyond the economic reach of most target area residents. It is clear that among the City of Miami's greatest needs in the housing area is the need for sales housing within the affordable range of very low, low and moderate income families. The costs of land, materials, and labor in the Miami housing market place effectively preclude the development of single family homes within the purchasing power and affordability range of the City's very low, low and moderate income residents by the private housing industry. Until recently, the financial vehicles necessary for the production and long-term financing of new single family homes affordable to very low, low and moderate income families in the City's Community Development Target Areas were not available. In an attempt to address this tremendous need for new affordable homeownership-oNprhuiities for low, very low and moderate income families, in October of 1986 the City *Commission approved the implementation of the City's Scattered Site Affordable Homeownership Development Program. The major objective of the Program is the City sponsored development and delivery "at cost" of new single family homes to be developed on an in -fill basis in the City's Community Development Target Areas. The City acting as developer, utilizing a combination of local and federal funding services in addition to both private sector an public mortgages financing, anticipates the construction of an average of 15-25 new single family homes annually. The strategies as presented by the City of Miami's Local Housing Assistance Plan are to encourage and provide affordable homeownership housing opportunities for the very low, low and moderate income residents within the City of Miami. The need for affordable housing for the very low, low and moderate income households is addressed in the City of Miami's Consolidated Plan. SHIP funds will provide a financing vehicle' for affordable housing and thereby Tower the cost to qualified eligible homebuyers. In compliance with the SHIP Program directives, the City of Miami Commission has adopted an Ordinance (attached Exhibit "A") which establishes a Housing Assistance Trust Fund, a Housing Assistance Partnership, an Affordable Housing Advisory Committee, and designated the responsibility for the administration and implementation of this Local Housing Assistance Plan. Public input for this Local Housing Assistance Plan was solicited by advertising the availability or its review at the 13 City of Miami NET Service Center for the purpose of securing public comments, at the March 9, 1995 City Commission meeting. 2 6 A S 5 1 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 Agency. 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 Agency within twenty-one (21) days after adoption by the City of Miami Commission. Florida Housing Finance Agency will be notified promptly if the City of Miami is unable to comply with the provision of this plan. The City of Miami Local Housing Assistance Program shall be implemented by the City through the Local Housing Partnership. The City of Miami Commission shall be the policy body responsible for program implementation. The City Manager acting through .*e. City's Department of Development and Housing Conservation will be responsible for•the overall administration of the program. All assistance provided under this plan will be available on an equal basis to all sponsors and/or persons, without regard to race, creed, religion, color, age, sex, marital status, family status, national origin or handicap status. All sponsors and/or persons receiving assistance under this plan will be contractually obligated to comply with the affordable housing criteria established by the program. Any unit/sponsor/ person receiving assistance from other federal programs shall comply with all federal and SHIP Program requirements. The cost of administrating the. Local Housing Assistance Program shall be 10% of toe local housing distribution received pursuant to SHIP. All administrative activities will be for staff cost (i.e. salaries, office expenses, studies, consultants, etc.). A line item budget accounting sub - activity entitled SHIP General Administration will established in accordance with City's current budget regulations and policies. A resolution providing the administrative budget is attached as Exhibit B. 96-851 rA BUDGET SUMMARY (ADMINISTRATION) FY 1995-96 Salary/FB $125,338.00 Audit/Advertisement 10,000.00 TOTAL $135,338.00 FY 1996-97 Salary/FB $125,338.00 Audit/Advertisement 10,000.00 TOTAL $135,338.00 FY 1997-98 Salary/FB $125,338.00 Audit/Advertisement 10,000.00 TOTAL $135,338.00 BUDQEI SUMMARY (PROGRAM STRATEGI�M_i FY .. _Pfegf;am $87b,... Homeownership Development Progmm $1,118,049 FY .. _ .... Homeowriershipr ..0 i •g:0.9 FY .. _ .... Homeownership Deyplgpment Program $1,118,049 FY 1995-96 Downpayment/Closing Cost Program $37,S0Q $100,000. FY 1996-97 Downpayment/Closing Cost Program $3 7,§89 $100,000. FY 1997-98 Downpayment/Closing Cost Program $37,900 $100,000. kWANKSTI Totals FY 1995-96 $1,353,387 FY 1996-97 $1,353,387 FY 1997-98 $1,353,387 This multi -year Local Housing Assistance Plan primarily deals with the City of Miami's continuous efforts in providing affordable homeownership opportunities for very low, low and moderate income eligible persons within the City of Miami. The proposed activities and strategies for providing affordable homeownership housing units to the very low, low and moderate income eligible persons throughout the City of Miami for 1995,96, 1996-97, 1997-98 program years are as follows: 4 96-851 It is the intent of the City of Miami's Homeownership evelopment Program to increase homeownership opportunities for very -low, low and moderate income persons by creating new single family, fee simple affordable housing units. SHIP Program funds dedicated by the City of Miami for funding of the City of Miami's Homeownership Development Program, shall be used for the cost of land acquisition, site development and total constriction and permanent financing associated with the creation of affordable housing units. • ' • vide ,• •1 - Tr.ent. COTRtf. •1 ,1! 1. 111, 1. 1 1,1, 1' • ., • 1 ,AI - IA 1"• -•i111 .1 I IkIMap E410 &Ito', FAWN L4101114311',1 .,.A•1 ■11� • . •/ 1 W ,n ,11 1 , j • •. • • • ri • 1 lot 11 • • 1 • 1 " 1 rl rl - •1 . ' ' • ` .r, 11 1. 1 maIN", • • 1 1 • 1 • 1 • 1 • • 1 • 11 • 1 , • 111 , 1 " 1 1 , 1 1 • / 1 • / • • • 1 • 1 .1. • 1 i •" ••11 1 •1 �. •1 ,1! • 111,1"1 11,1 1! • 1" �! • ►/ 11 A :i. •<. .•u •.ir 1_• •�r:.11 lr ,A . •�r:u .1 • 1 ••n 1 • 1 1 .1" A. •11u.1 � 1• ••11'r �• rl" 1•u-. ./ •• The City of Miami as-bxildef/devoleper will utilize $870,000 S1,253.387 of the SHIP funds each fiscal year, to develep-1 5 hemes under- the City f Miami'sS tt d Site -Affefflable forthe Homeownership Develo rn n Program. Housing developments asqisted hrough hia program will receive fina_n ial assistance of ,p toest of $58,000/unil.These - • 11 11 . 1 .. 1 1 .) rl - 1 _ e_1 • 1 s11 • • / 1 • •1 ' ' • • . ,_11 1.1. 1_ .1�' 1" "ti ••/1"•.rl • 1 ••11"1 ' •�rll A, . • • • A. • ►� ,al 1. 1 1 1 • .. . i 1 - 1 � rl - A• . ►/ ,..11 ., - . - . 1 . • • •_I . 1 .11 •" • 011 • . • .1 1 •• 1 6=851 'Nr• r • J111 1' • • J 01 • • "J.: 961411111 Midi if , 1• 1 FaIdim1 r• / ' •r• /• • J•' of It. 1.1 •y, i r• 1, Ilal •111• •1 � ►• 1 Eligible person will be advised of the availability of these homes through notices in at least three local newspaper which have general circulation throughout the City of Miami, as well as persons who's names are currently on a waiting list with the City of Miami. Applications will be processed on a first -come first -served basis until all funds are obligated by income level; ensuring thirty (30%) is designated for low income applicants and thirty (30%) for very low income, with the balance of available funds for moderate income applicants. The applicants will be qualified for a SHIP firs, second or third mortgage loan of up to $30,000 to assist in the purchase of a unit developed under the Homeownership Development Program flw-seattemd same. The loan will be subject to the criteria as indicated on page 9 of this plan. The applicant will be required to obtain a first mortgage from a private mortgage lender pre -determined by the City of Miami. The applicant will also be required to participate in a homeowner education class prior to the closing of these homes. All funds derived from the sales proceeds of a home sold under the Homeownership Development Program by the City ofMiami, whether from a private &As mortgage lender, or the homebuyer, will be deposited into the local housing trust fund, and utilized only for SHIP eligible activities. 6 96- 851 �A (A) MAXIMUM SEGOND MORTGAGE AMOUNTS Seeend Mortgages are limited to the 40% of the purchase price of the unit assisted or $30,000 whichever is less. (B) SECOND MORTGAGE INTEREST RATE - TERM -REPAYMENT Seeend First. second or third mortgages made to very low income families will carry an interest rate of one (1%) percent. Seeend First, second or third_mortgages made to low income families will carry an interest rate of two (2%) percent. Seeend First. second or third mortgages made to moderate income families will carry an interest rate of three (3%) percent. Sesend First, second or third mortgages will be amortized for a term of 30 years, with principal and interest payments payable monthly during the term of the=�Qan until maturity. All SHIP funds outstanding plus interest will be fully repaid to -the City of Miami upon the sale of the home to a subsequent buyer or upon refinance. In no event shall principal and interest payment!of all of the financing plus escrow payments o the first and seeendmortgages exceed 30% of the family's total gross monthly income. Sesend First, second or third mortgage payments or any others requested herein may be waived by the City of Miami for a period of up to one year in hardship situated. City of Miami's Downpayment/Closing Cost Assistance Program provides downpayment and/or closing costs assistance to qualified low, very low and moderate income persons, to assist in the purchase of newly constructed single family fee simple units 5_QW under the City of Miami's Scattered Site Affordable Homeownership Program, Homeownership C•7�ieiP[ E • I�LTliill!Tiif�i • _FIT!lop a • • n " 1 �1�3ILs 1 .e A • 1 Rpmej 1 i�iT�it•7iFT.Y�3i�l� within1 " R of Miami 7 96-851 0 Qualified persons will be eligible for either partial or full funding assistance leans fer-it ie City of Miami Seattered Site Aff-erdable eew-�e�sl Gemnwaity- Housing Development OrgaRizafien; in the form of a deferred loan, secured by the property. The funding assistance will be due and payable to the City of Miami if and when the property is sold to a subsequent home buyer of if refinanced. Any property receiving funding under this strategy must have been fully constructed or rehabilitated within 12 months from sale of said property. A maximum of $37,500 $100. 00 will be expended for this program each year, with a maximum of $2,500 of assistance per applicant. The City of 11 fiami's P afehase Mersey Seeend—McFtgage is Miami eeffified Comm -unity Heusing Development Or-ganizafien (G.14DO) er- units pur-ehased 1- gible City empleyees willing to reside within the City ef Miami. The City of Miami will provide SHIP assistance in the form of an unforgivable loan, not to exceed the maximum limits as indicated in this plan. The loan shall be fully repayable at a rate determined by the City of Miami and at a maximum term of thirty (30) years. i These 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 homebuyer is required to reside in the property as his/her principle residence during the entire term of the loan. The homebuyer may sell the property at any time and must repay the City of Miami the entire 4 amount of SHIP subsidy plus interest from the sales proceeds. Any proceeds remaining after all mortgages especially the SHIP subsidy have been repaid, shall belong to the homebuyer (Seller). The SHIP proceeds repaid to the City of Miami will be used by the City of Miami for other SHIP Homebuyer Assistance. In the event that the proceeds from the sale are insufficient to repay the outstanding SHIP subsidy, the City will recapture whatever proceeds are available after the first mortgage from a private lender (if any) has been repaid. 8 96-85 - �i In determining the qualification of a household/applicant for a SHIP Program mortgage, the City utilizes the following qualifying ratios 1) the housing expense to income ratio and 2) the total debt to income ratio. The housing expense to income ratio, takes into consideration the total monthly expense of the home being purchased, which includes principal, interest (on allfinancing mertgages), taxes, insurance, and condominium association or homeowners association fees (if any) and dividing the total by the household's gross monthly income. The result can not exceed thirty (30%) percent. The total debt to income ratio consists of the addition of the total housing expenses plus all other monthly expenses such as credit card payments, personal loans, student loans, and auto loans, alimony or child support and any other fixed monthly expenses that will take more than 12 months to pay off. The total of these expenses is divided by the household's total gross income. The result can not exceed forty five (45%) percent. . _ The SHIP Program considers housing affordable when the monthly rents or monthly mortgage payments, including taxes and insurance do not exceed 30 percent of an amount representing the percentage of the median anticipated gross income limits adjusted for family size for the household. The SHIP Program is designed to benefit very low, low and moderate income families. Current (low, very low and moderate) income limits in Dade County are listed below. These limits shall be adjusted automatically whenever the federal government periodically redetemine the median income for Dade County. Very Low Family Income Low'Income Sim Limits Limits (80%) 1 $15,600 $25,000 2 17,850 28,550 3 20,050 32,100 4 22,300 35,700 5 24,100 38,550 6 25,850 41,400 7 27,650 44,250 8 29,450 47,100 C Moderate Income T:—:a- /1 nAO/\ $37,440 42,840 48,120 53,520 57,840 62,040 66,360 70,680 9��851 The maximum purchase price of a Ship assisted, new or existing homeownership unit will not exceed 90% of the median purchase price of said unit in Dade County. The median purchase price of a home currently in Dade County is approximately $115,000, therefore the maximum sales price of a home new or existing to be assisted with SHIP funds will be no greater than $103,500. Qualified eligible applicants will be selected or awarded funds on a "fast come, first serve" basis after the availability of program funds or activities are advertised. The City of Miami will advertise the availability of funds 30 days prior to accepting applications The City of Miami's Local Housing Assistance Plan for FY 1995-96, 1996-97 and 1997-98 will use 90% of SHIP funds each fiscal year for homeownership activities. All of the housing units assisted with SHIP funds will consist of newly constructed or rehabilitated homeownership units. In addition all proposed program activities (see program strategies pg. 5-8) will be targeted to very low, low and moderate income person. At the very least 30% of all SHIP funds shall be utilized to assist very low income families, 30% for low income families and no more than 40% will be utilized to assist moderate income families, based on the income limits as defined on pg. 9. The purchaser's gross annual income must not exceed 120% of the median income in Dade County 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 seeend mortgage is provided to the homebuyer, the homebuyer must be approved for a fimt mortgage financing from the -a participating fiFA mortgage lender. Proposed fif-A total mortgage. financing arrangements must be found acceptable and/or beneficial to the participating home buyer. Estimated total fipst and-seeend mortgage payments including escrow, should not exceed thirty (301/o) percent of the homebuyers monthly gross income, when determining affordability of the unit. In the event a fifst mortgage is provided to a homebuyer, the applicant /household must meet the qualification guidelines as indicated herein. 10 96=851 rA All SHIP funds received by the City of Miami will be deposited into a Local Housing Assistance Trust Fund, to administer and. implement the Housing Assistant Plan. The trust fund will be established with a qualified depository, for all SHIP funds as well as moneys generated from 'activities such as interest earned on loans, repayments, etc. Amounts on deposits in the local trust fund will be invested as permitted by law. The local trust fund shall be separately stated as a special revenue fund in the City of Miami's audited financial statement, copies of which are to be forwarded to the Florida Housing Finance Agency as soon as available. SHIP funds will not be pledged for debt service on bonds or as rent subsidies. All SHIP funds will be obligated (encumbered) by December 31 following the end. Qf the State fiscal year in which they are received. The City of Miami has developed a partnership with Greater Miami Neighborhoods, Inc., a local non-profit organization that specialized in assisting other local non-profit organization in the development of affordable housing. The City of Miami is also developing partnership with local private lending institutions that are sensitive to the needs of low and very low income persons, that will provide not only first mortgage financing but also engage in the provision of homeownership counseling. These partnerships effectively combine expertise and resources that maximize the efficient use of public and private resources in an effort to provide housing to those in need. u• u u •'� _� Recipients of SHIP funds will be selected according to the requirements of each program strategy. For lie Homeownership Development Program, recipients will be selected on a first come, first served basis, from responses received from program notices as advertised in local newspapers and from an existing waiting list. Funds provided to GU3, e€ *Miami eei4ified Gema;,a "ria-(villa^vim) from the Sewed McFtgage _er Downpayment/Closing Cost strategies will depend on the most immediate financial needs of a particular applican nun^ (; . G14DO . that have „a; hOUS;Rg P ..;sets that r ;re the €inaneing. The following maximum award schedule shall apply to the program activities funded with SHIP dollars. • Homeownership Developement Program $1,118,049, Downpayment/Closing Cost $37,500. $100,000, 11 g6-851 r TO ; Honorable Mayor and Members of the City Commission \0 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM DATE ��`�' L iv�� FILE Resolution Approving the SUBJECT: State of Florida Required Local Housing Assistance Plan (Modified) REFERENCES: 1 ENCLOSURES: City Commission Agenda Item- November 21, 1996 RECOMMENDATION: It is respectfully recommended that the City Commission adopt the attached resolution, approving the City of Miami's revised Local Housing Assistance Plan required by the State of Florida for the City's continued participation in the State Housing Initiatives Partnership Program (SHIP Program). 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 estate transactions statewide. The City of Miami was allocated approximately $1.3 million in SHIP Program funds for FY 1995-96, with a similar amount estimated for FY 96-97. In May of 1995, through Ordinance No. 11253, the City Commission approved the establishment of the City's Local Housing Assistance Program, pursuant to the State Housing Initiatives Partnership Program (SHIP Program). Each local unit of government participating in the SHIP Program must, within twelve (12) months, after establishing the program by ordinance, submit to the State a Local Housing Incentive Plan (HIP). As described in the City's SHIP Program Plan, the City's FY 1995/96 SHIP funds will be utilized to create homeownership opportunities for very -low, low and moderate income eligible families within the City of Miami. The Local Housing Assistance Plan essentially outlines how the City would utilize the funds received from the State of Florida from the SHIP Program. Based on the previously approved, Plan, the City planned to utilize the SHIP Program funds to expand the City of Miami's Scattered Site Affordable Housing Program, whereby the City served as the developer in the construction and marketing of new single family homes on vacant city -owned parcels throughout the City. With the approval of the City's modified Local Housing Assistance Plan, the City's SHIP Program funds will be made available to not -for -profit Community Housing Development Corporations (CHDO's) in the form of site acquisition, site development, construction and 9 6 - 851 1 permanent financing, in connection with the development of affordable homeownership housing units in the City. Approximately, $1.2 million is available through the City's Homeownership Development Program this year. In addition, through the Downpayment/Closing Cost Assistance Program, the City will make available up to $2,500 in downpayment and /or closing costs assistance to qualified very -low, low and moderate income persons, to assist in the purchase of a newly constructed single family home in the City of Miami.. Approximately $100,000 is available to qualified very low, low and moderate income individuals this year. 96-851