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HomeMy WebLinkAboutR-95-0188J-95-193 2/27/95 9 5 — 18 8 RESOLUTION N0. A RESOLUTION, WITH ATTACHMENTS, APPROVING THE LOCAL HOUSING ASSISTANCE PLAN PURSUANT TO THE IMPLEMENTATION OF THE STATE OF FLORIDA'S STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM IN THE CITY OF MIAMI FOR THE PERIOD COVERING FISCAL YEARS 1995 THROUGH 1998; AUTHORIZING THE CITY MANAGER TO EXECUTE THE APPROPRIATE CERTIFICATIONS, IN ADDITION TO ALL OTHER DOCUMENTS NECESSARY AND PROPER, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, TO CARRY OUT THE TERMS AND CONDITIONS OF THE SHIP PROGRAM, AND TO SUBMIT THE CITY'S LOCAL HOUSING ASSISTANCE PLAN FOR REVIEW AND APPROVAL BY THE FLORIDA HOUSING FINANCE AGENCY; FURTHER APPROVING A MAXIMUM AWARD SCHEDULE AND APPROVING THE EFFECTIVE DATE. 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 on 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 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, contingent upon the legislature appropriating the existing ten cents ($0.10) authorized in the Sadowski Act this year; and A7LoCrs M ENT (5) CONTAINED CITY COM USSION MEETING OF MAR 0 9 1995 Resolution No. 95— 188 WHEREAS, in order for the City of Miami to receive the aforementioned funds it is necessary for the City to submit to the Florida Housing Finance Agency a Local Housing Assistance Plan which outlines how said funds will be utilized over a three (3) year period; and WHEREAS, the Sadowski Act also requires the adoption of a maximum award schedule of amounts and the adoption of a cost per unit for eligible housing benefiting from awards pursuant to the SHIP Program; and WHEREAS, the Sadowski Act limits the administrative costs for implementation of the Program to five percent (5%) unless resolved by the City Commission to increase the percentage to ten percent (10%) of the City's grant allocation; and WHEREAS, it is in the best interest of the City of Miami to increase the administrative amount to ten percent (10%) for Fiscal Years 1995 through 1998; and WHEREAS, it is in the best interest of the City of Miami to qualify for this dedicated revenue source in its efforts to further expand the availability of affordable homeownership opportunities in the City for very low, low and moderate income families and such action is for a valid City purpose; 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 95- 188 -2- thereto and incorporated herein as if fully set forth in this Section. Section 2. The Local Housing Assistance Plan in connection with the SHIP Program in the City of Miami for the period covering Fiscal Years 1995 through 1998, is hereby approved, in substantially the attached form. Section 3. The City Manager is hereby authorized to execute the appropriate certifications relating to the City's Local Housing Assistance Plan, in addition to all other documents necessary and proper to carry out the terms and conditions of the SHIP Program, and to submit the City's Local Housing Assistance Plan for review and approval by the Florida Housing Finance Agency. Section 4. The City Commission hereby establishes that the maximum award schedule for SHIP Program funds under the City of Miami's SHIP Program shall be $30,000 per unit. Section 5. The City Commission hereby establishes that the maximum cost per unit for eligible housing classified as new construction and/or for existing housing benefiting from awards made pursuant to the SHIP Program shall not exceed $103,500. Section 6. The City Commission hereby agrees that the administrative cost percentage for implementation of the SHIP Program in the City shall be increased from five percent (5%), but not to exceed ten percent (10%) of the grant allocation. Section 7. This Resolution shall become effective immediately upon its adoption. -3- 9�- 188 i„kV PASSED AND ADOPTED this 9th day of March__ 1996. �w5tc�;' � STE HEN P. CLA K, MAYOR A MAT'rY HIRAI, CITY CLERK PREPARED AND APPROVED BY: LINDA KELLY KEAR7SON ASSISTANT CITY ATTORN Y APPROVED AS TO%%FORM AND CORRECTNESS: �t A. QU NN 371OWS, II CITY fATTPNEY M4969/BSS -4- m3j FLORIDA HOUSING FINANCE AGENCY AUK II II' The Honorable Steve Clark, Mayor City of Miami 3500 Pan American Drive Miami, Florida 33133 1994 RE: William E. Sadowski Affordable Housing Act Dear Mayor Clark: Lawton Chiles Govertwr Thomas N. Tompkins Chairman William J. Ramsey Vice Chairman Board of Directors E. Llwyd Ecdestone, Jr. Edward Lee, Jr. Carl H. Mayes Pamela Y. Paul Lorenzo Simmons Thomas A. Stevens Linda Loomis Shelley Ex oHido . On July 7, 1992, Governor Lawton Chiles signed the William E. Sadowski Affordable Housing Act into law. This law created the State Housing Initiatives Partnership (SHIP) Program. This legislation was passed for the express purpose of developing and maintaining affordable housing for Florida Counties and Entitlement Cities. TherCity of Miami will be eligible to �-f receive.$1,353,387 beginning with State Fiscal Year 1995-96 "�- contingent upon legislative appropriation-. For the City of•Miami-to receive these funds, its staff must submit to the Florida Housing Finance Agency -an ordinance and a - Local Housing Assistance Plan by May 2, 1995.- The Plan may be submitted for up to a three-year period. The submission must .include the following: 1. Ordinance. The Ordinance must create a Local Affordable Housing Assistance Fund; establish the Local Housing Assistance Program; designate who will be responsible for implementing and administering the Program; and create an Affordable Housing Advisory Committee. 2. The Local Housing Assistance Plan. The Plan must provide a concise description of the city's local housing assistance program and provide a breakout of the way the city proposes to spend the funds. 3. Checklist/Housing Delivery Goals Chartf Certification. This checklist will identify where the SHIP Review Committee may locate the mandatory items required in the Local Housing Assistance Plan. The Certification will document the local government's intent to comply with basic program guidelines and requirements. 95- 188 227 NORTH BRONOUGH STREET, SUITE 5000 • TALLAHASSEE, FL 32301-1329 • (904)488-4197 • FAx (904)488-9809 ek�aR* The Honorable Steve Clark, Mayor August 26, 1994 Page Two 4. Resolution - The city's Local Housing Assistance Plan must be adopted by resolution. The following information must be included in the adopted Plan. • Identify the average cost per unit and the maximum cost per unit and the average SHIP funds and the maximum SHIP funds allowable for eligible housing for each strategy. • Provide a definition of Affordable Housing, and provide the names of the nine Affordable Housing Advisory Committee members and their terms. • If applicable, identify that the allotted 5% SHIP administrative funds is insufficient to operate the city's SHIP Program, and up to an additional 5% in administrative funds will be necessary to sufficiently operate the SHIP Program. The city may enter into a interlocal agreement with the county or one or more of the entitlement cities under the State Housing Initiatives Partnership Program (SHIP). I will be happy to discuss this in more detail should the city wish to enter into _agreements with other local governments who are receiving funds under the SHIP Program. I have attached a copy of the SHIP Program Allocation Chart; SHIP brochure; Administrative Rule 9I-37, F.A.C.; Section 420.907, et. seq., F.S.; Checklist/Housing Delivery Goals Chart/Certification; and an article written by Ms. Jaimie Ross which describes the William E. Sadowski Affordable Housing Act in more detail. I hope this information will be helpful. Please remember, to be eligible to receive these funds, the city's Local Housing Assistance Plan and Ordinance must be received in this office na later than May 2, 1995. I look forward to working with the City of Miami and its SHIP Program. If you have additional questions regarding the SHIP Program, please contact me or Mrs. Carolyn Johnson, SHIP Program Consultant, at 904/488-4197. Sincerely, 6. d Beverly B. Cliett SHIP Program Administrator BBC/cj cc: Mr. Jeff Hepburn Enclosures 95- 188 State dousing Initiatives Partnership (SHIP) Program Local mousing Assistance Plan �--- — - - CHECKLIST Please conWlete the following infomwdon: LOCAL GOVERNMENTAL ENTUY: CITY OF MLW FLORIDA 0= ELECTED OFIFI[CIAL: STEPHM P. CUM, MAYOR ADDRESS: 3500 Pan American Drive Miami, Florida 33133 TELEMONE:FAX:(305} 854-4001 CONTACT PERSON: Alfredo Duran Housinct Devei==t- ADDRESS: 300 Biscayne Blvd. Way Suite 401 Miami, Florida 33131 TEMHONF.- 579-3336 FAX:eO� 371-9710 ENTERLOCAL AGREEteI M: YFSfM (If so, list other Participants is the iatedocal agreement) (M itj`br wdon rr = be furnished to the Agency before any funds can be disbursed.) LOCAL ENTITY EMPLOYER FEDERAL 10D NUMBER. 59-6000375 MAIL DISBURSEMENT TO: Carlos Garcia, Director ADDRESS: Finance Department 300 Biscayne Blvd. Way Suite 210 Miami, Florida 33131 (Revised 8/93), - 95- 188 STATE HOUSING INTTIATIVES PARTNERSHIP (SHIP) PROGRAM LOCAL HOUSING ASSISTANCE PLAN CHECKLIST (P"XSBD 8193 ) ,rfi;;``+• 'ti '. +c "cii, "x�:F.Y::'tT!A••..;:.w,;:r;:.: :ii<}a�Sc� , ;.�;r::'y..i°i.��.';t�;;�t+4:a3:+.`��i,.::;ti;>?>••'iJy`;} : z.":•:: ..£}. .`:,:pL�ri}ts,.k c;Y.G£if iM.�.. .}i£:Y:r:;av:,• :.>.. ;`:.iY?f•." ;':£:?@ ,,.t.y :%:o•:r•c :•.aui.:i?:Sa::.h. Y�.: :X•L'i ;?Y?'�?�:'•s'.''%:k y��.pL,�; -'b �Yk•';;'iffl,•e�,y: Y .:. .V::r�.�a4•a..TT+,?3..:}inA; Y}.::tok.Y£$r,. •c}•..• .r!.y.:,;!::£} ..:..xyY<:Y .. >:;tS �: y:'..; E)Ssr ;yyg Is the plan typed on 8 1/2" x 9I 37,005(7), F.A.C. r paper? X N/A Have two copies of the plan s.420.9072(3), F.S. been sent? 9I-37.005(7), F.A.C. X N/A Does at least one plan have 9I-37.005(7), F.A.C. original signatures? X %N A Will the plan be sent so that the s.420.9072(3), F.S. Agency will receive it by May 9I-37.005(l), F.A.C." _ _ _. 2 of the fast year of the x NT requested funding period? lL ]LOCAL HOUSING ASSISTANCE PLAN 11je Iocal government or interlocal entity should include information in the SHIP plan narrative as specified below: A. DESCRIPTION OF LOCAL ]PROGRAM: i i •. the local government or y✓.i\�•, ^.i�!%'•'�j`i'lyC J�'K'hM�JV `����piµ�'/:[Y�^' �y' 4 z:±J)A%'!)`�P+>Y+•CMi%+:'2�/%Y �'iY".�7a}���X.+�Y0`. i�n'v' %yn'3 u7 `'�•YA+^K JC+f>{:iwKC•J:.t'> >((7J SJ�y;J�!,�,.?y`>/�}�".1 Ir:l. ^fw�tiJY.yV .;'3>.'.:•.}.'r`5: aJ:\''A` v \\ tdYr: ^ai`•Sa . l ^N '�tK^%9:a'^j•,Yty �'i}'„!3. A?!+cuf',�.''FZ'S...�...k'<,:+o ):?9+Y/}. J ,• z::z >3: subtnitting the plan been ��ys 1� �i;•%;:;!+�R'� �, v:..:•..j;;J.J. {;f � yi n : T r!i:v...y.. K`VV:^+'j}\��!}:!,'1%/n.ry:.�4',(Y'V�.J,•w$:.\'SYi �". Jv Y: l,)K\'r"l:v) Is there an - fW II agreement? Is the interlo—c—al _ Oilzl attached? 95- 188 I 2 'ER ANNUAL ALLOCATION 95-9C , 96-97 V 97-98 )UNT FOR YEAR(S) %EKED IN imp SiJEMTTTED: 1, 353, 387 $ 1, 353, 387 $1, 353, 387- , V qIM A TF MS.. (Lig by State Fy and attach a& tionad pages if ne=ary) -- - STRATEGY Fy - 95-96 SMP DOUL"AR AMOUNT PERCENTAGE OF . ALLOCATION MIIVIS`TBATION $. ' 135, 338.70 11� % Lttered -Site HKneawnershi 870.000.00 m Payment/• Closing Cast Assistance ...37,500.00 .2.8% *P Nb e P TAM $ 1353 387.. 100% STRATEGY F'N-96-97: SMp DOLIAR AMOUNT PERCENTAGE OF ALLOCATION &!]�1LSi'RATION 135 33 .70 0:. ttered Si e ' rn Payment% Closing Cost Assistance •37 500.00 and Nbrt�age Program 310,548.30 22:9% Y AL: - A�97Y98 IMMSTRATION tittered Site Homedwnership, awn_ Payment/ Closing Cast MsiSt-.a 'cond. Nbrtgage Program $l; 353;, 548'. 1009b ' ' SHIP DOLLAR PERCENTAGE OF AMOUNT ALLOCATION 135,338.70 .10 870 '00.0.00 64..3% 37 50 00 2 80 p, s 310 54.8.30 22.9 0 ti ��� '�R? 104�0 . • LOCAL HOUSING ASSISTANCE PLAN CHECKLIST Page 3 of Il ---- Does . the plan describe the .Support services which will be available to residents? . (e.g., *homeownership counseling, day care, health care and transportation.) Does the plan describe how public input in the development of the Local Housing Assistance Plan was solicited? Does the plan document how 65% of the funds will be used for homeownership? Does the plan document how 75% of the funds will be used for construction, rehabilitation or emergency repairs? Does the Plan document how the remainder of the -SHIP funds will be utilized? Does the plan document that 30% of the units assisted will be occupied by very low- income persons? Does the plan document that an additional 30% of the units assisted will be occupied by low-income persons? Does the plan identify the number of households proposed to be served by income? 95= 188 U.M LOCAL HOUSING ASSLSTANCE PLAN CHECKLIST ]Page 4 of 11 ' . w;. ,•. ;.,.. >` fieNo MORMON Is there a list of proposed sales s.420.9075(4)(c),' F.S. ' price(s). or range of acceptable 9I 37.007(7), F.A.C. r 7 & sales prices for new and existing '' 7 of homes? (Sales price may not ; . • -check] st exceed 90 % of the median area purchase price)? Do the sale prices meet the s.420.9071(3), F,'S. 70 6i I. affordability criteria? 9I 37,005(d), F.A.C. X St Do the rental rates meet the s.420.9071(3), F.S. x - �- affordability criteria? I 9I 37.005(d): F.A.C. Are rental rates included which s.420.9075(4)(h)1p'F.S.: _.___.. , X+ are based on unit size? 9I 37.005(5)(d),F.A.C. ' Does the plan describe'outreach ?I 37.005(S)(g), P A.C. and selection strategies for recipients of housing units to be built or. rehabilitated? Does the plan describe the s.420,9075(3)(a),F.S: competitive selection process for eligible sponsors who will receive SHIP funds from the local entity? X 4,7 • � r= X 14,6-1-7 8 the plan provide a s.420.9075(3)mum award schedule to - r 9I-37.005(6)(a)2,'F,A.C. X 4,9 rn fund distribution? Does the plan document how s.420.9075(5), & (6), F.S. X 5, 6 funds generated from loan repayments, reimbursements, other repayments and interest earned on distributed funds will , be utilized? Does the plan identify recapture s.420.9075(4)(g), F.S. ` provisions for units assisted with X 6 SHIP funds? � 95- 188 LOCAL HOUSING ASSISTANCE PLAN CHECKLIST Page 5 of n .��•``�.C{}:i?::T'>'�:;}::iY:iiri%ii:^::�ti:;::•:�Y-':}:•::SY}vim}::.j. G k ♦v:} . .� r..:.{... :.rtr:.�•:S_`.:}:::..• :'.:'T :�C:;:.;i}4.+}Y.J\:: i>::it3:}\., •:l; �j?J+'i}k:tiv;,<}. �.\'��v.:L?1:');J:i+ti : .ti..'{} +�, t ..\ ii i:;t;v.;:: •ri �Yv�i ����:isj\:�%ih,;;}.;;.f.J.}K::•:\2v}`:..;}::;:;:.:.{:J\:i::S±:4ij:>.:if'v�:i::'v.:: '�\:•i�:� v....+:i '' ,` Y •. O Does the plan provide a timeline 9I-37.005(6)(b), F.A.C. for expenditures of SHIP funds to allow for a comparison with X to actual expenditures? Are the budgetary requirements 9I-37.005(6)(b), F.A.C. for accomplishment of each X 3,4 strategy listed? Are the income limits adjusted 9I-37.002(25), (26) & (33), X 7 for family size, identified in the F.A.C. Plan? B. ADM41STRATIVE EXPENSES ::. Ae M. :.........:......... . '•a..}.....:. �..sl ' Does the plan specify the s.420.9075(6),F.S. - percentage of funds to be used 9I-37.007(4),F.A.C. X 3 for administration? Does the administrative budget s.420.9075(6),F.S. exceed 5%7 9137.007(4),F.A.C. X 3 Does the plan include a SHIP 9I-37.005(6)(d)3,F.A.C. line -item budget for State fiscal X 3 year for administrative expenditures; e.g., salaries, office expenses,, studies, consultants, etc.? If yes, is there a local s.420.9075(6),F.S. Exh;b, government resolution attached 9I-37.007(4)(b),F.A.C. providing the administrative budget will not exceed 10%? If consultants, Regional Planning 9I-37.005(6)(d)3,F.A.C. Councils, etc., are to be used, X does the plan provide narrative on specific duties required to be performed? 95- 188 LOCAL HOUSING ASSISTANCE PLAN CHECKLIST Page 6of11 H. ORDINANCE (Complete only if new ordinance or amended ordinance is required.) Y41' No N/A` Page is a copy of the ordinance provided? .. .. _. . Y. ' xhibi• r Does the ordinance incorporate s.420.9071, F.S, & by reference or enumerate the 9I-37.002, F.A.C. X 2 SHIP definitions? Does the ordinance create. s.420.9072(2)(b)1, F.S. �;, 4 Local Housing Assistance Trust 9I-37.004(1)(a), F.A.C. Fund? l _ `Does the ordinance establish a s.420.9072(2)(b)2, F.S. 1 Local Housing Assistance 9I 37.004(1)(b), F.A.C. X • • 2 ' Program to be implemented by a r •local housing partnership? Mies the ordinance designate. the 1.420.9072(2)(b)31 F.S. responsibility for administering 9I-37.004(1)(c),.A.C. X • . 3 the SHIP Program? .. , Doei the ordinance create an. s.420.9072(2)(b)4, F.S. , 0 Affordable Housing Advisory 9I-37.004(l)(d), F.A.C. '. X 6 committee? Does the ordinance take effect at s.420.9072(2)(b), F.S. least 30 days after.foimal 9I-37.004(2), F.A.C. X 9 adoption? - M. RESOLUTIONS 1V/Al • Page Is the resolution attached • ' s.420.9075(4)(i),F.S. i detailing the estimated average X "B" SHIP cost per unit for eligible housing? Is a resolution attached s.420.9075(6), F.S. Exhibit authorizing the expenditure of 9I-37.007(4)(b), F.A.C. X "B" more than five percent of SHIP ' 5 18 funds (up to a maximum of ten percent) for administrative expenses, if applicable? 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Y� MEMO* ":}":}:C.t,+i..i;:.4:Fv;: 4;}.?•:}:.::}+:jj:•'i}:i}.`•} v.}wn�:: ,v..<;.r.}p:?: }.ve: w:v••;: :v avi. } a . s}r:..t.. :: i.: •.::;,:::: v;.r•vz,} :. S h.. ..:}iin::t`.•.v:.+.«.J;;$^:,v,::}:tijY:%::t:•:i�:Y:}•: i..:y:.::::. Houeoholds By ktcorna By Number of Units, Unit Cost and SNIP Contributicew Total SHIP Other Production Average 8alea Prim Lathan Avg. fdtg. Pay. tnd Pm New E)&Wlg dabie home- Very Low Low Uodorat Total RahabUltatbrlfRspair Now construction Dollars ActidtWe PERCENTAGES Area t Badrm. 2 Bedim. B Bedrrms ownnh{p; Units Units Avg. Unit SHIP Units Avg. Unit SNIP Rahabf lspsk 1Mthotrt Conev. Units Units Purchase of nwo cost Dollars Cool Dolian BNewConsl. Prloe 115 cattere ite 5 5 5 15 - - 5 8,0 0 58,00 870,00 64.3 65,000 - - - 115,'00 - - 15 Strategy 2: { Down Putt. 5 5 5 15 5 2,500 2,500 10 2,500 2,500 37,50 2.8 103,50C 10,3,50 11.5,00 — — 15 C/C % Strategy 9: Second Mortg. 4 4 2 10 5 30,00C 30,00 5 30,00 3000 310,54 .3 22.9 103,50 103,50 115,00 - - 10 ' Strategy 4: i . '}\..Qi �4CZ\}bC „$ v^ SublotalqI .F}a \)y. C•'CX i ri�. 4C .¢ii�427 Cn..k•\ },«n1}Mtv,h4:'b;•y`.i[C:+ Stralos cte . ... ...... .,: ... `: ;Oths >>Aa.tl�ritiss::� C...................................#! ...... .. ... .. .;.. .i; ...}.a a^: t... �Iutlin.::Re :..n, .}t:.t ::.}, .;..:. ..,\n};•\:�: . l; ,,r;o Y,,ems . v: r:,. .4Y.,.: v}r... ?r. :. .t .t {.. yt; }Pur,. ► .aka bt �xistitlg}units tt ..,44, .H,. tt4? .. .:: •: .: •:. ry v: ,. 4 t ,v. a. h i fit ... r....: at v. .: vv:•, •,,.. •.,w. vm•.v:n:•.: \ 4 .h\ \. �. a. tC.tk ...Fn.....wit...sh .; ,. ..: vvav \ .h 4. N{ �r 1 harp ..t....... •.v;+•,••••••.•,.w.•}:,:vn .l• )C} ifti i.a5?,b:r: ...............t....4..........<s.....:.....P` \ }• ,,,;: .; ... t4sii: ;.. ...v.,.i:n;. •.,. v: .E.y;.t. vi�k t.; `'•..v4� s r45::}•:.: .... .. ..t..4... •.}}••: a, , .. ••;':;.y •� t/:•'•.;i . , to promote Hoosoho!ds By In ;.; :::a By Number of Units, Unit Cost and SHIP Contributions Tote! SNIP Other Production Avg.Construotlon Prins Modkn Average Pants other sllplbio Very Lov Low Moderate Total RahabiiitatioNRapatr New Construction Dollars AcUtles PERCENTAGES New Etdating Area t Badrrm 2 Bedrm. b Bedirne Units Avg. Unit SHIP Units Avg. Unit SNIP activities: Units FishabfRepalr iMithoul Conti Units Units Purchase or rnors Coat Dollars Cost Dollars i New Const. Price Strategy 1: Strategy 2: Sublote{ .iy...•fi+cv'�ii:}+}}:i^C.v;:}',"i•}:; may}+v a:5}: ps, `C..�v?y$, ,"6� 4ii••. •: �`9. i:`}X4'i':}Y:C:'•} {,j.{\ t :j •+}%Jr : 4v. nv . 4 �{�.ts .,?\ b .,.'' S i fir �,;; {.`,"•}}}if/t}•';: .: f f,••;L ,.,}�S '• \' 'Y X' 1`}�•`r�tw :v sue} f }t \ A:.}\ C' .?:J+'}+:5;}/.:{•`,ii,>,`hL\ ` Y y) " }Y,�'+ai ,4• y1 • h �ia`}..4kf}.:, Z 'N 'v •�};•}:.... }.dn.•v.`;i,.,.,..aan:, {;yg}kt�,'L,::.}a av<iafiti},'y.4,.v.. i��av`ss:o. Y`;,a,?F,�L}:''�x'e.•t}. 3} y;�+ ,�C \+'. TOTALS 14 14 12 40 �,218,0 4.3 _ Total SHIP Expenditures: 1, 3 5 3 3 8 7 HtiJ yi jk,}<,_,`i , Porantapo of Total Very Low ry,'•};};#:} low lJoderats y } •. 1 Y \\C\ 1 3 }. ...... a£y? art`"... Cti� 3;" ;• xBt PaantagoorAtbcat{on '}�;}}Ti:}i�"i• r' <: }�w.'4y�4' •yvv 4i4iS�•U}}}• \ x'} 4 ` TOTAL: f'srosntegoolueatsn NowConstr, hab. Units 77 % 0 Households Served: % % % : , q y ,=::.,vY�y for Construction Aotivitiea; 90 % UC Vv 3 100% Area Purchase Prloe: 131 LOCn IIOUJTNG ASSISTANCE PLAN CHECKLIST Page of FLORIDA HOUSING FINANCE AGENCY HOUSING DELIVERY GOALS FOR SHIP FUNDS FOR SHIP FUNDS FOR STATE FISCAL YEAR: 1199 �--9 7 LI(Arnf:1 r1l"MI r-NTrrY! 04 4.,r ^,F M-t mrn-, 'M I ^,- -1 A M Annual Allocation Amount: $ 1. 3 5 3. 3 8 7. Totaln. ......... . ROIWWI $135 33 .7 10% q gAdmInlefrallon Strategies to promote &Ifor- daMe horn*- ownsrohlp: NO• --M -002Mn $*holds Dy Inooff" Dy Nurnboro(Units, Unit Cost and SHIP Conbftudons Vary Low l Low luoderat Total IlehablIltallonAtle ak Now Construction unite Units Avg. Unk SHIP Units Avg. Unit Mp Cat Dollare coat Dollars Told SNIP D04110 Poh&bMop&k &NawConsL other Production Aodvtd" WOKMConstr. PERCEN"17AGE9 01 01 MR. - Average Sales Price MMSMIMMM Median Area '164drm. Purchase Pt— Avg. Utg. Pay. Incl. PM Now units Ej*tInff Units 2B*drm. 3B*dmw. or rMs ra spy catterec kite 5 5 5 15 15 58..0 0( 58,,00 870,00 64.3 65,000 --- 115;00( 1 15 % Strategy 2: Down Pont. 5 .5 5 15 5 2,500 2,500 10 2,500 2A00 37,50 2.8 103,50ML3A0(11-5,000 15 C/C % Strategy 3: Second Mortg. 4 4 2 10 -5 30A0C 30t00 5 30t00(3000 31054 .3 22.9 103,50 103,500115,000 10 81ralogy 4- % Subtotal L 44 4 U NO 3"41" 11:11 U I M - M-11 .., . . . . . . . . W-AM Strategies fillpffib W%� rS ffi W"", MW ♦ 1-fiffido ...... A ... ..... •M "m g. - MW M to promote other ollglble HwesholdsBy Mcome By Number of Units, Unit Coat and SHIP Contributions Total WiW Dollars Other Production AcOvItt" PEPCOffAGES Avg.ConsVuctIon Price Median Area Average Pont* I Bedrrn. 2 Bodrrn. 3 flodrrni Very Lcya Low Moderate Total Flahabllltat$onflepAk Now Construction Now Masung AcOylt)ef: Units PAItabMspO Mmiconstr., Units Units Purchase or ffxx 6 Units Avg. Unit SHIP Units Avg. Unit SHIP Cat Dollars coal Dollars iNowConaL price Strategy 1: Strategy 2: % I. Subtotal 0 0 Mp S Rolm 71,11-11 TOTALS 14 14 12 40 M'. 30 'M 2 1 8jO i�218jO 5. 3 i Total SHIP E�penditures: $1, 3 5 3 3 7 Percentage of Total Kowsoh v Served: Very Low Low Mod orate'•yJ �M pefcon tageolArmatim ME for Construction A Illse: IN TOTAL: I 00VQ P.,contecoowd M Area Purchase Price: Now com if. Rehab. Units % 77 pis LOCA1 IIOUJIING ASSISTANCEPLANCHECKLIST Page of FLORIDA HOUSING FINANCE AGENCY HOUSING DELIVERY GOALS FOR SHIP FUNDS FOR SHIP FUNDS FOR STATE FISCAL YEAR:19�- fkV. 0 5110/93 NAME OF LOCAL ENTriY: Cityof MiamiFlorida Annual Allocation Amount: ---$ 1, 353, 387. Total WE M 1� Administration "A `00' $ 135 33 10 . .7 . . . . . . . . . . . Strategies gigm W- im vom m K. promote &Nor- HiouashWe By omw By Nornbef of Units, Unit Cost and SNIP Contributions ToW sw Other Production Average Sales Prim Msdlan Avg. 1611g. Pay. Ind. PM dable home- Very Low Low Moderat TOW Ftoh&bLqtadwJPApak Now Construction 004" Aothoid" PEFCeffAGES Now ExIeft - Area I B*4trn. 28*4rm. 30*drffu. ownership: Units Units Avg. Unit SHIP Units Avg. Unit GNP 1:11011ahmaphk Withoutc-4tr. Units Units Purchme, or more Cost Dogm cost Dollm &Nswconet. Prim ­.r,attere te 5 5 5 15 15 58,00( 58,00 0 0 870,00 64.3 65,000 --- 115,000 ]15 1 Strategy 2: Down Pmt. 5 5 5 15 5 2,500 2,500 10 2,500 2/500 37,50 2.8 103e50C1Q3A0 11.5,00o 15 C/C % Strategy 8 I 3 Strategy 3: a g y Se S Second C nd cond 0 M 0 r Mortg. t g' 4 4 4 2 10 'S 30AO(30,,00 ,00 5 30,00(3000 31054 .3 22.9 103,50 103,50( 1151000 10 % 'St a y 4 Strategy 4' g J.b % Subtots.1 S (01.0 q U .... .. WWV . W 1. P, 10 promote Households By Income By Number of Units, Unit Cost and SHIP Contributions Total SHIP Other Production Ayg.Conabuction Price median Average I'lants other s1tg1bio DAm Activities PERCENTAGES Area Very Lo* Low Moderate 0 PWhWIIt&1Iot�p&Ir Now Construction Now Weting I Bodrrn. 2 Ndrrn. 3 B6dm**, Units Avg. Unit SHIP Units Avg. Unit SHIP Activities: Units flehabMepak WthoutCanstr.' Units Units Purch"a or more Cost Dollars cost Dollars & New Const. Hoe Strategy 1: Stralogy 2; _t4 % Subtotal S % M. .9. TOTALS 14 4 12 40 s� 2 18,0 1.3 . . . . . . . . . . Total SHIP Expenditures: $1, 3 5 3, 3 8 7 Pefoentagoo(Totaf 'f T.J Housthoids V.'i L. VeryL*w LOW m io�draff ju poroo nWoo(Allocadon RM "101 TOTAL: Percnuo- ot media Now Constr. hab. UnN 77 L77co' % Served: % % % foirconstruadon Activities: 90 % 1 I OOVO Arsa Purchase FYW� r OICAL DOUSING ASSLF-'- ?NCE PLAN CRE CICLIST 1 age-8 ;&f 11 CERTMCATTON I her;by attest to the following: EMIR, yes P", 'fie local government will 9�I-37.005(6)(A)I, F.A.C. advertise the availability of _ '4) F.S.12c S.420.*9075(3)(b)t FS ' SHIP funds pursuant to Florida 4,7 Statutes. All SHIP funds will be s.420.9075(3)(c), F.S. expeadod in a manner which 91-37.005(6)(a)3, F.A.C. x 3 will insure that there will be no discrimination on the .basis of race; cmd, color, age, sex, familial status, handicap, religion, or national origin. '- Aprocess for seloWon of s.420.9075(3)(a), F.S. ; 4,71,9 MONCats for funds has bow 9137.005(6)(&)2t F.A.C. developed. 71W -efigible muni*slity or s.420.9075(3)(a),F.S. county has developed a x 617 qdalification system for .appficatiqns for awards. Riciplietits of funds will be L420S07S(3)(d), F.S. required to contracomlly 91-37.005(6)(a)4,, F.A.C. x3 commit to program guidelines. MICTIOrida Housing Finance 91-37.005(6)(d)I, F.A.C.. 2j3 Agency will be notified promptly if the local government (or intedocal efitity) will be unable to -comply with the provisions of the plan. The Local Housing Assistance 91-37.'005(6)(d)2, F.A.C. Plan shall provide for the x encumbrance of SHIP funds by December 31 following the end of the State fiscal year in which they am received. 95- 188 LOCAL HOUSING- ASSISTANCE PLAN CHECKLIST Page 9 of 11 :i>:C'viv{Y}Lim{2v{<:?{�"�<}i�i:�i+}�i4ii�i�::^i�:::ri �:L.:;:'•: r+ ..<: i:. n. v.Y.v ��j.ti ��i: {i•.}�: �) ;i.��.v}: `:{+.Z.Y<• (..�L.v }(•. ••i �}. + i•�1'vY•~•' hC�W.`2:}1:...i `�G ���::v+}. n.J\�{ i> �J\j �{{��. �1.\O:ii ti%�i1 ii}+. ••Tr, j rT' `` •�sD R`;f. y:Nr :r<J, ♦�v 'f ^ •Y',,{ Y� Ci 8r,Y ::'}:i•+ nL{:}{in r<.JC.}} � }. < {.i.v ^lYin�JT:i+\iiX{ �\tiST:^.:i.v, i':}::.:..5... .. ti .J x:.}}'.}'..::+i. ii�'T.::.vi :i<'riJ:•vi.: •: :; * }. i.<: L:Lv'.i}::{ ... •i.. v: ..v,; The plan conforms to the Local 9I-37.005(6)(f), F.A.C. Government Comprehensive x 2 Plan, or that an amendment to ' the Local Government Comprehensive Plan will be - initiated at the next available opportunity to insure conformance with the Local Housing Assistance Plan. Amendments to the approved 9I-37.006(1), F.A.C. Local Housing Assistance Plan x shall be provided to the Agency 2 within 21 days after adoption. The trust fund shall be 9I 37.008(1), F.A.C. established with a qualified .. x depository for all SHIP funds as 8 well as moneys generated from activities such as interest earned on loans. Amounts on deposit in the local 9I 37.008(2), F.A.C. housing assistance trust fund shall be invested as permitted x 8 by law. The local housing assistance 9I 37.008(3), F.A.C. trust fund shall be separately stated as a special revenue fund x 8 in the local governments audited financial statements, copies of the audits will be forwarded to the Agency as soon as available. An interlocal entity shall have 9I-37.008(4), F.A.C. its local housing assistance trust x fund separately audited for each state fiscal year, and the audit forwarded to the Agency as soon as possible. 95- 188 LOCAL HOUSING ASSISTANCE- PLAN CHECKLIST Page 10 of 11 <.}3 citesmess No N/A ?'tee SHIP Funds will not be pledged ' s.420.9072(7) & (8), . F.S. for debt service on bonds or as' rent subsidies. Developers receiving assistance s.420.9075(4), F.S. from both SHIP and the Low 9I 37.005(14), F.A.C. X. 3 Income lousing Tax Credit . a lln'Q Program shallcomply with the- income; affordability and other LIHTC requirements. Similarly'• ariy units 1receiving assistance from oilier federal programs shall comply with all 'Federal and SHIP program requirements. - Loans shall be provided for s.420.9075(4)(e), F.S. periods not exceeding 30 year's, 9I 37.007(8), F.A.C. X 6 except for deferred payment loans or loans that extend ' beyond 30 years which continue to serve eligible persons. Rental units constructed or s.420.9075(3)(e), F.S. rehabilitated with SHIP funds s.420.9075(4)(f), F.S. X shall be monitored at least 9I-37.007 (10) & (12), F.A.C. annually for 15 years for +' compliance with tenant income requirements and affordability requuements. I 95— 188 6 ..- N LOCAL ROUSING ASSIST. ANCE PLAN CH]ECIMST Page 11 of 11 _ Re -view Committee has m requested specific information on each strategy which is outlined on the strategy chart. Have-0 sections of the chart been, completed? N01E. Cites may change due to Statute or Rule amendments, The'representation contained in the plan are true and accurate as of the date of submission. Witness Witness M. Attest: (SEAL) Chief Elected Official Stephen P. Clark Mayor (Type) Name and Title 95-- 188 .. CITY OF MIAMI STATE HOUSING INITIATIVE PARTNERSHIP PROGRAM %t1- -- 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. 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 95- 188 , 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 modeilft& 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. �.y__' 1 � •��' � • • mil/ In an attempt to address this tremendous need for new affordable homeownership opportunities 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 lower 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 availablity 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. 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 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) 95- 188 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 the 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 unittsponsor/ person receiving assistance from other federal programs shall comply with all federal and SHIP Program requirements. ,ADMINISTRATION The cost of administrating the Local Housing Assistance Program shall be 10% of the 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. BUDGET SUMMARY (ADMINISTRATION) FY 1995-96 Salary /FB $125,338.70 Audit/Advertisment 10,000.00 TOTAL $135,338.70 FY 1996-97 Salary/FB $125,338.70 Audit/Advertisement 10,000.00 TOTAL $135,338.70 FY 1997-98 Salary/FB $125,338.70 Audit/Advertisement 10,000.00 TOTAL $135,338.70 FY 1995-96 $870,000 $870,000 $870,000 9 5 - 188 Scattered Site Affordable Homeownership Program FY 1996-97 Scattered Site Affordable Homeownership Program FY 1997-98 Scattered Site Affordable Homeownership Program FY 1995-96 Downpayment/Closing Cost Program FY 1996-97 Downpayment/Closing Cost Program FY 1997-98 Downpayment/Closing Cost Program FY 1995-96 Second Mortgage Program FY 1996-97 Second Mortgage Program FY 1997-98 Second Mortgage Program Totals FY 1995-96 FY 1996-97 FY 1997-98 $37,500 $37,500 $310,548.30 $310,548.30 $310,548.30 $1,353,387 $1,353,387 $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: StrateU 1: Scattered Site Affordable Homeownership Program It is the intent of the City of Miami's Scattered Site Affordable Homeownership 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 Scattered Site Affordable Homeownership Program, shall be used for the cost of land acquisition, site development and total construction, associated with the creation of affordable housing units under the Scattered Site Affordable Housing Program. The City of Miami as builder/developer will utilize $870,000 of the SHIP funds each fiscal year, to develop 15 homes under the City of Miami's Scattered Site Affordable Homeownership Program at an average cost of $58,000/unit. These homes will be built on City of Miami owned scattered sites, located in the City of Miami's Community Development target areas. The purchase price of the home will be $65,000. 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 second mortgage loan of up to $30,000 to assist in the purchase of the scattered site home. The loan will be subject to the criteria as 4 95- 188" a.m« indicated on page 6 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 closliig'ti%these - homes. All funds derived from the proceeds of the first mortgages provided by the private lenders to the City of Miami will be deposited into the local housing trust fund and utilized only for SHIP eligible activities. Strategy 2• Downpayment/Closing Cost Assistance Program 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 under the City of Miami's Scattered Site Affordable Homeownership Program, newly constructed/rehabilitated affordable homeownership units developed by a City of Miami certified Community Housing Development Organization (CHDO) or units purchases by eliglible City of Miami employees willing to reside within the City. Qualified persons will be eligible for either partial or full funding assistance loans for new homes developed under the City of Miami Scattered Site Affordable Homeownership Program on new constructed/rehabilitated homes developed by a City of Miami certified Community Housing Development Organization, 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 will be expended for this program each year, with a maximum of $2,500 of assistance per applicant. Strategy 3 • Purchase Money Second Mortgage Program The City of Miami's Purchase Money Second Mortgage Program, provides second mortgages to qualified very low, low or moderate income persons to facilitate the acquisition of newly constructed single family fee simple affordable housing units developed under the City of Miami's Scattered Site Affordable Homeownership Program or new constructed/rehabilitated affordable homeownership units developed by a City of Miami certified Community Housing Development Organization (CHDO) or units purchased by eligible City employees willing to reside within the City of Miami. (A) MAXIMUM SECOND MORTGAGE AMOUNTS Second 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 Second mortgages made to very low income families will carry an interest rate of one (1%) percent. Second mortgages made to low income families will carry an interest rate of two (2%) percent. Second mortgages made to moderate income families will carry an interest rate of three (3%) percent. 95- 8 Second mortgages will be amortized for a term of 30 years, with principal and interest payments payable monthly during the term of the loan until maturity. All SHIP fiords 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 plus escrow payments on the first and second mortgages exceed 30% of the family's total gross monthly income. Second 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. 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. These loans shall be secured by a note and mortgage on the property, which shall be recorded either in a 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 amount of SHIP subsidy plus interest from the sales proceeds. Any proceeds remaining after all mortgages especially the SI-HP 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. 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 ration 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 first and/or second mortgages), 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. 95- 188 441. 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 mom-;13arA2 - 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 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 redetemines the median income for Dade County. The SHIP Program considers housing affordable when the monthly rents or monthly mortgae payments, including taxes and insurance do not exceed 30 percent of an amount represetning the percentage of the median adjusted gross income limits adjusted for family size for the household. Very Low Family Income Low Income Moderate Income Size Limit _Limits (80%) Limits 100%) 1 $15,050 $24,100 $36,120 2 17,200 27,500 41,280 3 19,350 30,950 46,440 4 21,500 34,400 51,600 5 23,200 37,150 55,680 6 24,950 39,900 59,880 7 26,650 42,650 63,960 8 28,400 45,400 68,160 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. SELECTION PROCESS Qualified eligible applicants will be selected or awarded funds on a "first come, first serve" basis after the availability or program funds or activities are advertised. TARGETED ACTIVITIES AND GROUPS 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. 95- 188 In addition all proposed program activities (see program strategies pg. 4-6) will be targeted to very low, low and moderate income person. At the very least 30% of all SHIP furrc:s-'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. 7. 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 second mortgage is provided to the homebuyer, the homebuyer must be approved for a first mortgage from the participating first mortgage lender. Proposed first mortgage financing arrangements must be found acceptable and/or beneficial to the participating home buyer. Estimated total first and second mortgage payments including escrow, 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 to a homebuyer, the applicant /household must meet the qualification guidelines as indicated herein. Mortgage financing to the homebuyer is limited to "families" defined as: single individuals or two or more persons related by blood, marriage, or operation of law who occupy the unit. 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 of the State fiscal year in which they are received. I_1��Zy:1��h�Iil►�� ... 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 4 8 maximize the efficient use of public and private resources in an effort to provide housing to those in need. Recipients of SHIP funds will be selected according to the requirements of each program strategy. For Scattered Site Affordable Homeownership Program, recipients will be selected on a first time, first served basis from responses received from program'notices as advertised in local newspapers and from an existing waiting list. Funds provided to City of Miami certified Community Housing Organizations (CHDO's) from the Second Mortgage or Downpayment/Closing Cost strategies will depend on the most immediate needs of a particular CHDO. The following maximum award schedule shall apply to the program activities funded with SHIP dollars. Scattered Site Affordable Housing (new construction) $870,000. Second Mortgage Program (new construction/rehabilitated) $310,548.30. Dowpayment/Closing Cost $37,500. 95- 188 . E CITY OF MIAMI LOCAL HOUSING ASSISTANCE PLAN TIMELINE FOR ENCUMBRANCE OF FUNDS RECEIVED IN FY 1995.96, FY 1996-97 AND 1997-98 Housing Strategies Use Time to Indicate start month and finish month of each major acitivity 1 2 3 4 5 8 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 26 26 27 28 29 30 31 32 33 34 35 38 37 38 39 40 41 42 43 44 45 48 47 48 49 50 1. Scattored "0 Homeownership New Construction 2. Downpayment l Closing Cost 3. Second Mortgago FY '95 FY 19800 ------- FY'97 (7 M M �f N N 6^9 �W^ V c I W 0 AL: CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM Kv� To: Honorable Mayor and Members of the City Commission FROM : Ces dio City ger i DATE : FEB 2 Q 1995 FILE SUBJECT : Resolution Relating to Implementation of the SHIP Program REFERENCES :City commission Agenda Item - March 9, 1995 ENCLOSURES: It is respectfully recommended that the City Commission adopt the attached resolution approving the City of Miami's Local Housing Assistance Plan, pursuant to the implementation of the State.of Florida's State Housing Initiatives Partnership Program, (SHIP Program) in the City of Miami. BACKGROUND: The Department of Development and Housing Conservation recommends ratification of the attached re: lution, approving the City of Miami's Local Housing Assistance Plan as required to implement and administer the SHIP Program in the City of Miami. In Jule of 1992, Governor Lawton Chiles signed into law the William Sadowski Affordable Housing Act, which provided for a dedicated revenue source to assist local governments in their efforts to further expand the availability of housing units affordable to very low, low and moderate income families and individuals. Moreover, this legislation also created the State Housing Initiatives Partnership Program (SHIP Program). In August of 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, contingent upon legislative appropriation. In order for the City of Miami to receive the, aforementioned funds, it is necessary for the City to submit to the State of Florida's Florida Housing Finance Agency an ordinance which establishes the City's Local Housing Assistance Program and Local Housing Assistance Plan by May 2, 1995. 95- 188 M Honorable Mayor and Members of the City Commission Page 2 The Local Housing Assistance Plan must provide a description of the City's local housing assistance program strategy and a breakdown of the way which the city proposes to expend the SHIP Program funds. The City of Miami's proposed Local Housing Assistance Plan include the following components: H_gusing' Strategy 1• Scattered Site Affordable Homeownership Program Expansion of the City's Scattered Site Affordable Homeownership Program which is designed to increase homeownership opportunities for very low, low and moderate income families. The City of Miami serving 'as developer%builder will utilize $870,000 of the SHIP Program funds to develop fifteen (15) new single family homes at average 'cost of $58,000. These homes will be built, on vacant, scattered parcels currently under city -ownership in the City's Community Development target areas. The purchase price of the homes will be $65,000. The prospective home buyer will also be eligible for a SHIP Program second mortgage loan of up to $30,000 to assist in the purchase of the newly constructed home. The City's Downpayment Closing Cost Assistance Program will provide downpayment and/or closing costs assistance to qualified very low, low and moderate income persons for the purchase of a newly constructed/rehabilitated home developed by the City homes developed by not -for -profit Housing Community Development Corporations (CDC's), or existing homes purchased by eligible City of Miami employees willing to reside in the City. The funding assistance will be made in the form of a deferred loan secured by the property. A maximum of $37,500 is being recommended to be made available under this program each year, with a maximum of $2,500 of assistance per applicant. The City's Purchase Money Second Mortgage program will provide second mortgages to qualified very low, low and moderate income persons to facilitate the purchase of a newly constructed single family home developed under the City's Scattered Site Affordable Homeownership Program, housing developed by not -for -profit Housing Development Corporations or 'homes to be purchased by Op- 95-- 188 Honorable Mayor and Members of the City Commission Page 3 eligible City employees willing to reside within the City of Miami. A maximum of $310,548 is being recommended for allocation under this program, with a maximum of $30,000 of assistance per applicant. The maximum sales price of a home new or existing to be assisted with SHIP Program funds under this strategy will be no greater than $103,500. Lastly, it is also necessary that the City Commission create a nine (9) member Affordable Housing Advisory Committee prior to May 2, 1995, that *would be responsible for developing a Housing Incentive Plan after reviewing the City's existing policies, procedures, ordinances, land development regulations and comprehensive plan and to make specific recommendations aimed at encouraging and facilitating affordable housing units in the City of Miami, while also protecting property values. The nine (9) member Affordable Housing Advisory Committee must consist of the following individuals: 1. Active Residential Home Builder 2. Active Banker or Mortgage Banker 3. Representative of Labor in Home Building 4. Advocate for Low Income Persons 5. Affordable Housing Provider 6. Real Estate Professional 7. City Appointee 8. City Appointee 9. City Appointee It is anticipated that at the April 13, 1995 City Commission meeting, legislation appointing certain individuals and their terms will be presented for City Commission approval and ratification. In an effort to expand the availability of affordable homeownership opportunities in the City, City Commission ratification of the attached resolution is recommended. 95- 188 N