HomeMy WebLinkAboutexhibitCITY OF MIAMI
SHIP LOCAL HOUSING ASSISTANCE PLAN (LHAP)
FISCAL. YEARS COVERED
2004/2005, 2005/2006 AND 2006/2007
I. PROGRAM DESCRIPTION Chapter 67-37.005 F.A.C. and Section 420 9072, F.S.
A. Name of the participating local government and Interlocal if Applicable:
Section 420.9072(5),F.S.
The City of Miami
Tnterlocal : Yes No V
Name of participating local government(s) in the Interlocal Agreement;
Not Applicable
A copy of the Intcrlocal Agreement is attached as Exhibit H.
B. Purpose of the program: Section 420.9072, F.S. and Chapter 67-37.005(3), F.A.C.
Creation of the Plan is for the purpose of meeting the housing needs of the very
low, low and moderate income households, to expand production of and preserve
affordable housing, to further the housing element of the local government
comprehensive plan specific to affordable housing.
C. Fiscal years covered by the Plan: Chapter 67-37.002,F4.C.
✓ 2004/2005
_✓ 2005/2006
✓ 2006/2007
D. Governance: Chapter 67-37,005(3)and(5)(i)F.A.C. and Section 420.9071(14)FS.
The SI-IIP Program is established in accordance with Section 420.907-9079, Florida
Statutes and Chapter 67-37.007 Florida Administrative Code.
The SHIP Program does further the housing element of the City of Miami's
Comprehensive Plan.
E. Local Housing Partnership Section 420.9072(1)(a), F.S.
The City of Miami's SHIP Program has built active partnerships with, lenders,
builders and developers, real estate professionals, advocates for low-income persons and
community groups, Such partnerships include the following community housing
development organizations and community development corporations.
< Allapatlah Business Development Authority, Inc.
< BAME Development Corporation of South Florida, Inc.
Q East Little Havana Community Development Corporation
< Miami Beach Community Development Corporation
Q Greater Miami Neighborhoods, Inc.
Q Habitat for Humanity of Greater Miami, Inc.
4 Little Haiti Housing Association, Inc.
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Q Jubilee Community Development Corporation
< St. John Community Development Corporation
In addition, the City of Miami works with local Fenders and realtors, Fannie Mae, Local
Initiatives Support Corporation (LISC), Miami -Dade Housing Agency, Consumer Credit
Counseling Services and other service providers to provide referrals, resources and expertise
to better serve the residents of the City.
F. Leveraging: Chapter 67-37.007(1)(b)(c), FA,C. and Subsection 420.9075(I)(a) and (I)(b3, and (1)(c), F.S.
As a participating jurisdiction, the City of Miami, receives HOME and CDBG funds
from the U. S. Department of Housing and Urban Development. The City intends to use
these funds to leverage SHIP funds thereby reducing the cost of housing.
In addition, the City plans to use SHIP funds for developers to use as local match to
leverage additional HOME or Local Housing Credits from Florida Housing Finance
Corporation.
G. Public input: Chapter 67-37.005(3), F.A C.
Public input for the LHAP was solicited through face to face meetings with housing
providers, social service providers, local lenders and neighborhood associations through
Public hearings conducted in conjunction with the City's Five (5) Year Consolidated Plan
(2004 — 2008). Five public hearings were held in individual community districts which were
chaired by the Commissioner for that district. From these public meetings, priorities of the
housing needs for each district were gathered.
The priorities derived from the public hearings were used to form the basis of the strategies
for the plan. The Plan was noticed in multi-lingual local newspapers and the public were
invited to another public hearing conducted by the Chair of the Local Advisory Board. The
strategies were further revised as a result of the hearing.
H. Advertising and Outreach Chapter 67-37005(6)(a), FA.C.
The City of Miami currently maintains a waiting list for SHIP funding. However,
due to changes in the strategies of the Local Housing Assistance Plan a Notice of Funding
Availability were noticed in local newspapers serving ethnic and diverse neighborhoods in
the City at least 30 days before the beginning of the application period..
i. Discrimination: Section 420.9075(3)(c), F.S.
The City of Miami does not discriminate on the basis ofrace, creed, religion, color, age,
sex, marital status, familial status, national origin, or handicap in the award application process
for eligible housing.
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J. Support Services and Counseling: Chapter 67-37.005(5)(g).FA C,
Applicants applying for SHIP funding receive support services based on the type of
assistance requested. These services are in the form of counseling and or referral to other
programs that provide services they may need. The City of Miami will work with members
of the Housing Partnership to provide support services to those residents/homeowners
participating in the various housing programs. The services include, but are not limited to:
• Assistance/referral to Legal Services of Miami, Inc, to homeowners who have title
problems or outstanding liens that would prohibit their participation in the program.
• Referrals to other agencies and programs to applicants that do not qualify for
assistance.
• Assist homeowners participating in the Single Family rehabilitation and Single
Family Housing Replacement Programs throughout the rehabilitation /
reconstruction process, from the time of application until project completion.
• Referrals to consumer credit clinics and homebuyer counseling programs provided
by local lenders and non-profit organizations.
• Referrals to agencies funded by the South Florida Employment and Training
Consortium for employment and job training.
• Referrals to appropriate local agencies for fair housing assistance, information and
counseling.
• Legal aid referrals for counseling and guidance on other legal matters
K. Purchase Price Limits: Section 420.9075(4)(c), F.S. and Chapler67-37 007(6)F.A C,
The sales price or value of new or existing eligible housing may not exceed
90% of the average area purchase price in the statistical area in which the eligible housing is
located. Such average area purchase price may be that calculated for any 12-month period
beginning not earlier than the fourth calendar year prior to the year in which the award
occurs. The sales price of new and existing units, which can be lower but may not 90% of
the median area purchase price established by the U.S. Treasury Department or as described
above.
The methodology used by City of Miami is:
✓_ Bond Study Numbers provided by Florida Housing Finance Corporation
Independent Study (copy attached)
U.S. Treasury Department
The purchase price limit for:
,New- 48mes: 8199,147
Existing Homes: $173,701
New and Existing llomes: $236,835.00
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L. Income Limits, Rent Limits and Affordability:
Chapter 67-37.005(5)(e), F.A.C. .nnd Section 420, 9071(2), F.S.
The City of Miami will use Income and Rent Limits updated annually from the
Department of Housing and Urban Development and distributed by Florida Housing Finance
Corporation. The City will ensure that housing provided through this program is affordable.
Affordable means that monthly rents or mortgage payments including taxes and insurance do
not exceed 30 percent of that amount which represents the percentage of the median annual
gross income for the households as indicated in Sections 420.9071 (19), (20) and (28), F.S.
However, the City will not limit an individual household's ability to devote more than 30%
of its income for housing, if the first institutional mortgage lender is satisfied that the
household can afford mortgage payments in excess of the 30% benchmark. In the case of
rental housing the City will ensure that rents does not exceed those rental limits adjusted for
bedroom size.
M. Wages to Work: Chapter67-37005(6)(b)(7)FA.0
Should an eligible sponsor be used, the City has developed a qualification system and
selection criteria for applications for Awards to eligible sponsors, which includes a
description that demonstrates how eligible sponsors that employed personnel from the
WAGES and Workforce Development Initiatives programs will be given preference in the
selection process.
N. Monitoring and First Right of Refusal: Section 420 9075(3)(e)aad (4) (I), Fs,
The City of Miami will monitor rental projects annually to determine tenant
eligibility for at least fifteen (15) years or the affordability period, whichever is greater.
However, any loan or grant in the original amount of $3,000 or less shall not be subject to
these annual monitoring and determination of tenant eligibility requirements.
Eligible sponsors that offer rental housing for sale before 15 years or that have
remaining mortgages funded under this program must give a first right of refusal to eligible
nonprofit organizations for purchase at the current market value for continued occupancy by
eligible persons,
O. Administrative Budget: Chapter 67.37.005(6)03, F.A.C.
A detailed listing including line -item budget of proposed Administrative
Expenditures is attached as Exhibit A. These are presented on an
annual basis for each State fiscal year submitted.
The City of Miami finds that the moneys deposited in the local housing assistance
trust fund shall be used to administer and implement the local housing assistance
plan. The cost of administering the plan may not exceed 5 percent of the local
housing distribution moneys and program income deposited into the trust fund. A
county or an eligible municipality may not exceed the 5 percent limitation on
administrative costs, unless its governing body finds, by resolution, that 5 percent of
the local housing distribution plus 5 percent of program income is insufficient to
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adequately pay the necessary costs of administering the local housing assistance plan.
The cost of administering the program may not exceed 10 percent of the local
housing distribution plus 5% of program income deposited into the trust fund, except
that small counties, as defined in s. 120.52(17), and eligible municipalities receiving
a local housing distribution of up to $350,000 may use up to 10 percent of program
income for administrative costs.
The City of Miami has adopted the above findings in the attached resolution, Exhibit
E.
II. I4HAP HOUSING STRATEGIES: Chapter67-37,005(5), h:A.C.
Provide Description:
A. Name of the Strategy: SHIP Emergency Home Repair Assistance
a. Summary of the Strategy:
The Ship Emergency home Repair Assistance Program will provide emergency
repair assistance to very low, low and moderate income owner occupied single
family homes located within the corporate limits of the City of Miami. The City
will provide deferred payment loan assistance to an eligible homeowner to carry out
limited repairs such as roofing, electrical and plumbing to immediately rectify life
hazardous and potentially hazardous conditions that threatens the safety and health
of the occupants of the home.
b. Fiscal Years Covered:
The strategy identifies in this section will cover the following fiscal years:
2004-2005, 2005-2006 and 2006-2007
c. Income Categories to be served:
Available SHIP funds shall be reserved for housing units occupied by income
eligible persons or households. To comply with the overall requirements under
Chapter 67-37 of the Florida Administrative Code, eligible persons or households
will be very low, low and moderate income.
d. Maximum award is noted on the Housing Delivery Goals Charts:
The maximum award under this strategy will be r� ] 5,000
e. Terms, Recapture and Default:
Financial assistance to be provided under the SHIP Emergency Home Repair Program
will be provided to eligible homeowners in the form of azcro threepercent, deferred
forgiveable payment, # Ey-(30) ten (10) year loan. There are no monthly payment -
requirements associated with this loan. There is no amortization of this loan.
Repayment of the full principal balance of the loan is required if the property receiving
the financial assistance is rented, leased or sold during the life of the loan. Homeowners
that qualify and receive assistance must execute a Mortgage and Note that will be
recorded in the records of Miami -Dade County Clerk of the Circuit Court for
compliance with the recapture provisions for the program.
In the event of death of all eligible homeowner(s), the heirs to the property can assume
the obligation based on the original terms and conditions provided to the homeowner as
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long as the heirs qualify based on ,income and household size, remain owner occupants .
of the property and do not sell or rent the property for the remaining term of the
mortgage and note. A heir or prospective purchaser who does not qualify based on the
provisions of this strategy will be required to repay the,balatjee-e-f the-outstandin- full
loan amount provided by the City of Miami
f. Recipient Selection Criteria:
All recipients of assistance must meet the eligibility requirements as stipulated in the
Florida Statutes, Florida Administrative Code, the SHIP Ordinance, Resolution and this
Plan. I~Iigible housing includes single family homes, owner -occupied town houses or
twin homes only. Manufactured housing and mobile homes are not eligible for
assistance under this program. The properties to be assisted must be owner -occupied and
located within the corporate limits attic City of Miami.
Applications will be processed on a first -come -first serve basis from all applicants
meeting the selection criteria, subject to funding availability and in such a manner as to
comply with the statutory requirements.
• Applicants with household income above (120%) of the median area income limit
are ineligible for SHIP assistance under this strategy.
• Staff will review actual performance data on a continuous basis to ensure that
adjustments are made as necessary to remain in compliance with funding
requirements.
Other selection criteria will include the following:
• The property shall consist of one (1) owner -occupied residential unit.
• Preference will be given to eligible handicapped/disabled and elderly (62 years or
older) households and homeowners.
• handicapped and/or disabled individuals will be considered an individual having a
mental impairment which: (I) Is expected to be long continued and indefinite
duration, (2) substantially impedes his/her ability to live independently; and is of
such a nature that such disability could be improved by more suitable housing
conditions.
• The property must be located in the City of Miami.
• The appraised value of the home may not exceed the maximum sales price (value)
allowed under the SHIP Program.
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• The property must require needed repairs such as roofing, electrical and plumbing to
meet the decent, safe and sanitary standard to immediately rectify hazardous and
potentially hazardous conditions.
• The maximum amount of financial assistance to be provided may not exceed the
lesser of (1) the actual cost of rehabilitation or (2), $15,000.
• The applicant may not be delinquent on any debt owned to the City of Miami or
Miami -Dade County,
g. Sponsor Selection Criteria:
The City of Miami intends to administer this program. However, if the need for a
sponsor should arise, the City of Miami will use a Request for Proposals process in
accordance with Chapter 67-37.005(6)(6)7. Florida Administrative Code to select an
eligible sponsor. Eligible persons, sponsors or other recipients of assistance under this
program will be required to contractually commit and comply with all SHIP Program
requirements.
Request for proposals will be accepted from both for -profit and not -for -profit
corporations. Proposals received will be reviewed based upon a selection criteria which
include but not be limited to the following:
• The not -for -profit corporation must have received a tax exempt ruling from the
internal Revenue Service (IRS) under Section 501c(3) of the Internal Revenue
code;
• The for profit corporation must be organized and established under the laws of
the State of Florida;
• The not -for -profit or for -profit corporation must have financial accountability
standards that permit the Department of Community Development to account for
and audit SHIP funds;
• The organizational capacity and experience of the not -for -profit or for -profit
corporation in administering home renovation and/or homcbuyers financing
programs;
• The soundness of the proposal;
• The cost per family to administer the program.
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[Ueieted: &39,009.
B. Name of the Strategy: Single Family Rehabilitation Assistance
a. Summary of the Strategy:
The Single Family Rehabilitation Program will provide rehabilitation assistance to very
low, low and moderate income residents who live in single family owner -occupied
properties located within the corporate limits of the City of Miami. The City will
provide deferred payment loan assistance to an eligible homeowner to complete seeded
repairs such as roofing, plumbing and electrical work to meet the decent, safe and
sanitary standard conditions after rehabilitation.
The City of Miami, Department of Community Development will be the primary agency
responsible for the implementation of the Local Housing Assistance Plan Strategy.
b. Fiscal Years Covered:
The strategy identifies to this section will cover the following fiscal years:
2004-2005, 2005-2006 and 2006-2007_
c. Income Categories to be served:
This strategy will serve very low, low and moderate income families as stipulated in
FAC Chapter 67-37.
d. Maximum award is noted on the Housing Delivery Coals Charts:
Residents meeting the selection criteria will be awarded a maximum of $30,000 to
complete all needed repairs to bring the property to a safe and decent standard.
However, in cases where the amount needed to bring the property to code is higher than
$30,000, a higher amount may be provided upon approval by the City Manager or the
Director of the Department of Community Development acting as his/her designee.
e. Terms, Recapture and Default:
Financial assistance to be provided under the Single Family Rehabilitation Program will
be provided to eligible homeowners in the form of az.erethree percent,(3%), deferred
forgivable payrnent, lh rty (30) ten (10) year loan. There are no monthly payment
requirements associated with this loan. There is no amortization of this loan.
Repayment of the full principal balance and accrued interest of the loan is required tfthc
property receiving the financial assistance is rented or sold during the life of the loan.
Homeowners that qualify and receive assistance must execute a Mortgage and Note that
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will be recorded in the records of Miami -Dade County Clerk of the Circuit Court for
compliance with the recapture provisions for the program.
In the event of death of all eligible homeowner(s), the heirs to the property can assume
the obligation based on the original terms and conditions provided to the homeowner as
long as the heirs qualify based on the original terns and conditions provided to the
homeowner as long as the heirs qualify based on age, income and household size,
remain owner occupants of the property and do not sell or rent the property for the
remaining term of the mortgage and note. A heir or prospective purchaser who does not
qualify based on the provisions of this strategy will be required to repay the balance of
the outstanding loan amount provided by the City of Miami.
f. Recipient Selection Criteria:
All recipients of assistance must meet the eligibility requirements as stipulated in the
Florida Statutes, Florida Administrative Code, the SHIP Ordinance, Resolution and this
Plan. Eligible housing includes single family homes, owner -occupied town houses or
twin homes only. Manufactured housing and mobile homes are not eligible for
assistance under this program. The properties to be assisted must be owner -occupied and
located within the corporate limits of the City of Miami.
Applications will be processed on a first -come -first serve basis from all applicants
meeting the selection criteria, subject to funding availability and in such a manner as to
comply with the statutory requirements.
• Applicants with household income above (120%) of the median area income limit
are ineligible for SHIP assistance under this strategy.
• Staff will review actual performance data on a continuous basis to ensure that
adjustments arc made as necessary to remain in compliance with funding
requirements.
Other selection criteria will include the following:
• The property shall consist of one (1) owner -occupied residential unit.
• Preference will be given to eligible handicapped disabled and elderly (62 years or
older) households and homeowners,
• The property must be located in the City of Miami.
• The appraised value of the home may not exceed the maximum purchase price limits
(value) allowed under the SHIP Program.
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• The property must require needed repairs such as roofing, plumbing and electrical
work to meet the decent, safe and sanitary standard conditions after rehabilitation,
• The applicant may not be delinquent on any debt owed to the City of Miami. er (Formatted: Strikethrough
Miami Dad& County.
g. Sponsor Selection Criteria:
The City of Miami intends to administer this program. However, if the need for a
sponsor should arise, the City of Miami will use a Request for Proposals process in
accordance with Chapter 67-37.005(6)b(7) Florida Administrative Code to select an
eligible sponsor. Eligible persons, sponsors or other recipients of assistance under this
program will be required to contractually commit and comply with all SHIP Program
requirements.
Request for proposals will be accepted from both for -profit and not -for -profit
corporations. Proposals received will be reviewed based upon a selection criteria which
include but not be limited to the following:
• The not -for -profit corporation must have received a tax exempt ruling from the
Internal Revenue Service (IRS) under Section 501c(3) of the Internal Revenue
code;
• The for profit corporation must be organized and established under the laws of
the State of Florida;
• The not -for -profit or for -profit corporation must have financial accountability
standards that permit the Department of Community Development to account for
and audit SHIP funds;
• The organizational capacity and experience of the not -for -profit or for -profit
corporation in administering home renovation and/or homebuyers financing
programs;
• The soundness of the proposal;
• The cost per family to administer the program
C. Name of the Strategy: Single Family Replacement Home Program
a. Summary of the Strategy:
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The Single Family Replacement Housing Program is designed to address substandard
and dilapidated housing units that the cost of repairs or poor housing conditions cannot
be addressed through the SHIP and HOME assisted Single Family Rehabilitation
Programs,
Under this strategy, only single family residential properties which are beyond repair and
unsafe for human habitation will be provided assistance. The Single Family Housing
Inspection Unit will determine the economic feasibility (cost) of the rehabilitation and
soundness of the structure, in consultation with the City of Miami Building Department,
The SHIP funds will be used to defray the cost of temporary relocation expenses,
demolition of the dilapidated structure, soft and hard construction costs associated with
the reconstruction of the new home. This strategy will be used primarily to assist
existing owners of single family homes where the most appropriate solution to their
housing problem would be to demolish the existing structure and replace it with a newly
constructed housing unit on the exiting lot.
b. Fiscal Years Covered:
The strategy identifies in this section will cover the following fiscal years:
2004-2005, 2005-2006 and 2006-2007
c. Income Categories to be served:
Available SI HIP funds shall be reserved for housing units occupied by income
eligible persons or households, To comply with the overall requirements under
Chapter 67-37 of the Florida Administrative Code, eligible persons or households
will be very low, low and moderate income
d. Maximum award is noted on the Dousing Delivery Goals Charts:
Residents meeting the selection criteria will be awarded a maximum of $95,000
$1 10,000 for€i-needsafe and decent standard
temporary relocation expenses, demolition of the dilapidated structure, and all costs
associated with the reconstruction of the new home.
e. Terms, Recapture and Default:
Financial assistance under the Single Family Replacement Housing Program will be
provided to eligible homeowners based on incomes adjusted for household size. The
terms will be a zero (0) to three (3) percent loan that will be repaid in fifteen (15) or
twe `y (2-0) thirty (30) years based income levels.
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The following are the repayment schedules based on income:
1. Applicants with incomes less than 50% of median income, will receive a
zero percent (0%)pen-amortizing Adoforred loan with a term ofi€teen
thirty (30) years. Payment of principal will begin six (6) months from the [Formatted: Strikethrough
issuance of a certificate of completion and occupancy of the home. rFormatted: Strikethrough
2. Applicants with incomes at fifty percent (50%) or higher but less than sixty
percent (60%) of median income will receive a one percent (1 %) fully
amortizing loan with a term of 2B thirty (30) years. Payments of the loan
will begin six (6) months from the issuance of a certificate of completion
and occupancy of the home.
3. Applicants with incomes at sixty percent (60%) or higher but less than
seventy percent (70%) of median income will receive a two percent (2%)
fully amortizing loan with a term of2-0 thirty (30) years. Payments of the (Formatted; Strikethrough
loan will begin six (6) months from the issuance of a certificate of . { Formatted: Underline
completion and occupancy of the home.
4. Applicants with incomes at seventy (70%) or higher but less or equal to
eighty (80%)one hundred and twenty percent (120%) of median income
will receive a three percent (3%) fully amortizing loan with a term of ?9 Formatt
thirty (30) years. Payments of the loan will begin six (6) months from the
issuance of a certificate of completion and occupancy of the home.
Persons or households that qualify and receive financial assistance must execute a
Deferred Payment Loan Mortgage and Note that will be filed with the Miami -
Dade County Clerk of the Circuit Court for compliance with the recapture
provisions for the program. This mortgage will remain against the property for
fifteen (15) or twenty years based on the terms of the loan.
lithe property is rented, leased or sold during the f;fmn� s'a-*went. (''O'thir. _
(30) year period, then the loan will become due and payable to the City of Miami
at that time, In the event of death of all eligible homeowner(s), the heir to the
property can assume the obligation of the original owner as long as the heirs are
income eligible, remain owner -occupants of the property and do not sell or rentm the property for the remaining terof the mortgage and note.
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f. Recipient Selection Criteria:
All recipients of financial assistance must meet the eligibility requirements as provided
in the Florida Statutes, Florida Administrative Code, the SHIP Program Ordinance,
Resolution, the Plan and this Strategy. Eligible housing includes single family owner -
occupied homes that have been determined by the housing inspector, in consultation
with the Department of Building, to be beyond repair, unsafe for human habilitation and
suitable for demolition, Mobile homes or manufactured homes will not be a type of
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replacement home offered under this strategy, The properties to be assisted must be the
primary residence of the owner and the property must be located within the corporate
limits of the City of Miami.
Applicants will be selected from an existing waiting list, on a first come first serve basis,
subject to funding availability and in such a manner as to comply with the statutory
requirements:
• Applicants with household income above (80%) one hundred and twentypercent
of the median area income limit are ineligible for SHIP assistance under
this strategy.
• For eligible persons or households who are building a new home on land that they
own, a State -certified Appraiser will determine the sales price or value of the newly
constructed unit. The appraisal must include the land value and the after
construction value of the property and must be dated within twelve (12) months of
the date construction is to commence.
• The amount of the financial assistance provided will be the full cost of demolition,
temporary relocation and reconstruction of the property, to include hard and soft
costs, not to exceed $75,000
The following costs associated with this strategy arc eligible:
1. Hard costs, which are typical and customarily viewed as construction cost(s)
by institutional lenders;
2. Payment of impact fees;
3. Infrastructure fees typically paid by the developer;
4. Construction soft cost such as architectural and engineering fees, appraisals,
if directly related to housing construction.
5. Temporary relocation cost associated with the reconstruction of the home.
g. Sponsor Selection Criteria:
The City of Miami intends to administer this program. However, if the need for a
sponsor should arise, the City of Miami will use a Request for Proposals process in
accordance with Chapter 67-37.005(6)b7. Florida Administrative Code to select an
eligible sponsor. Eligible persons, sponsors or other recipients of assistance under this
program will be required to contractually commit and comply with all SHIP Program
requirements.
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Request for proposals will be accepted from both for -profit and not -for -profit
corporations. Proposals received will be reviewed based upon a selection criteria which
include but not be limited to the following:
• The not -for -profit corporation must have received a tax exempt ruling from the
Internal Revenue Service (IRS) under Section 501c(3) of the Internal Revenue
code;
• The for profit corporation must be organized and established under the laws of
the State of Florida;
• The not -for -profit or for -profit corporation must have financial accountability
standards that permit the Department of Community Development to account for
and audit SHIP funds;
• The organizational capacity and experience of the not -for -profit or for -profit
corporation in administering home renovation and/or homebuyers financing
programs;
• The soundness of the proposal;
• The cost per family to administer the program
D. Name of the Strategy: SHIP Homebuvers Financing Program
a. Summary of the Strategy:
The City of Miami through the Homebuyers Financing Program will provide down
payment, closing cost and/or second mortgage financing assistance to eligible persons
and households who are first time homebuyers to purchase a newly constructed or
existing residential properties within the City of Miami. The strategy will be available
to assist very ]ow, low and moderate income residents to purchase a single family home,
town home or condominium.
b. Fiscal Years Covered:
The strategy identifies in this section will cover the following fiscal years:
2004-2005, 2005-2006 and 2006-2007
c. Income Categories to be served:
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This strategy will serve very low, low and moderate income families in proportions
as stipulated in the SHIP Statutes and FAC Chapter 67-37,
d. Maximum award is noted on the Housing Delivery Goals Charts:
Residents meeting the selection criteria will be awarded a maximum amount based on
the number of bedrooms as shown in the chart below. However, the amount cannot be
° se price, $30,000 $85,225 :00 or the
amount needed to meet credit underwriting, whichever is less.
more than
of Bedrooms
0
_plumber
Maximum Subsidy
$42,980
$49 557
$59,766
$76,501
$85,225
e. Terms, Recapture and Default:
Financial assistance to be provided under the SHIP Homebuyer-inancing Program will
be provided to eligible homeowners in the form of a zero percent, deferred payment,
lhi-t30) twenty (20) year loan. There are no monthly payment requirements associated
with this loan. There is no amortization of this loan. Repayment of the full principal
balance of the loan is required if the property receiving the financial assistance is rented,
transferred or sold during the life of the loan. Homeowners that qualify and receive
assistance must execute a Mortgage and Note that will be recorded in the records of
Miami -Dade County Clerk of the Circuit Court for compliance with the recapture
provisions for the program.
In the event of death of all eligible homeowner(s), the heirs to the property can assume
the obligation based on the original terms and conditions provided to the homeowner as
long as the heirs qualify based on the original terms and conditions provided to the
homeowner as long as the heirs qualify based on age, income and household size,
remain owner occupants of the property and do not sell or rent the property for the
remaining term of the mortgage and note. A heir or prospective purchaser who does not
qualify based on the provisions of this strategy will be required to repay the balance of
the outstanding loan amount provided by the City of Miami.
f. Recipient Selection Criteria:
Applications will be processed from existing waiting list on a first -come, first ready,
first serve basis from all applicants meeting the selection criteria, subject to funding
availability and in such a manner as to comply with the statutory requirements.
Other selection criteria will include the following:
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• The property shall consist of one (1) owner -occupied residential unit.
• The property must be located in the City of Miami.
• The appraised value of the home may not exceed the maximum purchase price limits
(value) allowed under the SHIP Program for new and existing homes,
• The property must meet safe and sanitary standard conditions at closing or funds
must be held in escrow to bring it to safe and sanitary standards after closing.
• The applicant may not be delinquent on any debt owed to the City of Miami or
Miami -Dade County.
• Applicants purchasing Manufactured or Mobile homes arc not eligible for funding
under this strategy.
g. Sponsor Selection Criteria;
The City of Miami intends to administer this program. I-Iowever, if the need for a
sponsor should arise, the City of Miami will use a Request for Proposals process in
accordance with Chapter 67-37.005(6)b(7) Florida Administrative Code to select an
eligible sponsor. Eligible persons, sponsors or other recipients of assistance under this
program will be required to contractually commit and comply with all SHIP Program
requirements.
Request for proposals will be accepted from both for -profit and not -for -profit
corporations. Proposals received will be reviewed based upon a selection criteria which
include but not be limited to the following:
• The not -for -profit corporation must have received a tax exempt ruling from the
Internal Revenue Service (IRS) under Section 501c(3) of the Internal Revenue
code;
• The for profit corporation must be organized and established under the laws of
the State of Florida;
• The not -for -profit or for -profit corporation must have financial accountability
standards that permit the Department of Community Development to account for
and audit SHIP funds;
• The organizational capacity and experience of the not -for -profit or for -profit
corporation in administering home renovation and/or homebuycrs financing
programs;
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• The soundness of the proposal;
• The cost per family to administer the program
E. Name of the Strategy: SHIP Homeownership Development Program
a. Summary of the Strategy:
The SHIP Homeownership Program is designed to promote and create affordable
homeownership opportunities for very low, low and moderate income families and
individuals, SHIP Program funds reserved for this strategy will be used to assist not -for -
profit and for profit housing developers or the City. SHIP funds reserved for this
strategy will be utilized by the City of Miami to finance the project cost associated with
site development, hard and soft construction financing and permanent financing
associated with the development of affordable housing units byfor-profit and not -for -
profit housing developers or the City.
b. Fiscal Years Covered:
The strategy identifies in this section will cover the following fiscal years:
2004-2005, 2005-2006 and 2006-2007
c. Income Categories to be served:
This strategy will serve very low, low and moderate income families in proportions
as stipulated in the SHIP Statutes and FAC Chapter 67-37.
d. Maximum award is noted on the Housing Delivery Goals Charts:
Developments meeting the selection criteria will be awarded a maximum of ,thirty _..
thousand dollars ($30,000) per unit.
e. Terms, Recapture and Default:
The financial assistance provided under this strategy to the developer may be provided
as a low interest rate loan or in the form of a grant which will be determined based on
the economic feasibility and affordability of the housing project(s) to be assisted with
SHIP funds, The assistance provided under this strategy will be provided in the form of
a construction loan at zero — six (0% - 6%) percent and there will be no monthly
payments associated with the loan during the construction phase. Once the developer
has successfully completed the construction and all the housing units are purchased and
occupied by eligible homebuyers, the City of Miami will fully satisfy the developer's
obligation to the City in connection with the financing of the project. Financial
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Deleted: forty
l Deleted: $48,686
assistance made to the developer as a grant will also be satisfied upon completion of the
construction phase and all the housing units have be marketed and occupied by eligible
homebuyers.
Financial assistance provided to a project in the form of permanent second mortgage
financing for the homebuyers will be provided to eligible households based on the same
criteria as described in the Homebuyers Financing Program Strategy as previously
outlined in this Plan.
1. Recipient Selection Criteria
SHIP funding to be provided by the City of Miami under the Homeownership
Development Program strategy will be awarded through a Request for Proposal process,
Any SHIP Program allocation including the term of the loan will be recommended by
City staff to the City's Housing and Commercial Loan Committee for
approval/disapproval based on the following criteria:
• Project feasibility and ability of the developer/sponsor to commence construction
within six (6) months funding award.
• Evidence of availability of construction and first mortgage financing.
• Consistency with the City's Five (5) Year Consolidated Plan (2004-2009),
• Ability to demonstrate project will be affordable to low and moderate income
households.
g. Sponsor Selection Criteria:
The City of Miami intends to administer this program,
Name of-the-S# a 144P-Rental Hort fft
n. Su-nirn try--of-Nrc Strategy:
affordable homcownorship opportunities for very low, low, and modcrat-e—itteorne
assist not forT n-For-p-e ft-i ,..sing eleyel, o..ti„F thie r:t., earn raad-s ed
for this strategy will be utilized by the City of Mia
associated with site development, hard and soft construction financing and pcnnanent
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}
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financing associ^'• ,-hie-development of affer4able €rt
housing developors or tho City.
b. Fisenl--Year C9Teied:
-
The strategy-i•der4fres in this erection will cover the following fiscal year
200/1 2005, 2005 2006-and 2006 200-7
e. frivo rte-C-ategeries-to-be-served
'F. s-strategy will sery
as -stipulated in the SHIP Statutes and PAC Chapter 67 37.
d. 111a#ii
Dent;-.- net; the elects1_be-e a
thorsafd--del+ars (440.,000) per unit.
rtY
f. Te: ms-Reespture nnd-lelauat-
The friancia] a ded u nder his strafe
as -a low interest rate-loan-er in the forme of a grant �vhi�� tl �e ae•eY n �e " ^��' en
the economic feasibility and-e€farcka`' 1 e-bousit3wroject(s) to -be -assisted ,vith
8111P funds. The assistance- evicted ,,, aer,":^ trat , ,ll he-pro..:,toa :n_tbe f ,.c
u construction loan at three six (3% 6%) .percent and thorn will be no monthly
payments -associated withT theAe ',wing'' e . ^';^~ p'
Once the developer has successfully cetrtp#eted the construciio -and-all the housing -units
e ;va^ible--- ente tlhe City of Miami will fully satisfy the
developer's obligation to the City in connection--w#kh the frnanei-rrg-e€--the rojeet:
Financial assistance made to the developer as a grant will also be satisfied upon
completion-ef-the-ccens-traction phase and all the housing u��,rts-h,a. -mil,-eeeapied:
Recipients of €srrtding—under this strategy will be required to make the property
a-fferflable-fer a per-ied-ef-not less than twenty years (20) years.
• Project -feasibility -and -ability of th
• -Evidence of available of construction and first mortgage financing.
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• Consistency with-t
• Ability t r able to low and moderate -income
homeholfls:
.i CFit ri :
SHIP funding under this strategy will be awarded through a competitive Request for
lswillbe
r profit and not for profit housing developers for the construetien-of
new affefdabl omo families
All housing dcvolo F4ho st,ategy--iviRl be
awarded SHIP fundingt limited to the following:
•--Financia r;
. ---Ability of not for profit or for profit housing dcvc
prej-ee• bythe-e;cpenhi rrcments established by the SHIP Program
and State of Florida;
• Ability to doewneft/deMels'
ment-hs-from-the date of funding award by thoCity;
• Rif-rrr-evidence of site control;
• Doett
sources which would levcrage financial assistance provided by the City at a
rrtifti-Harm of on iumi'a
Reselutionopted June 9, 1998.
and SHIP Local Housing Assistance Plan (2001 2007).
A l-r- nts or h
once the housing project has been completed, mus
stipulated in the Florida Statutes, Florida Administrative Code, the. SHIP Program
Ordinance, Resolution, the Plan and this strategy, Or
cvcloped must be located within the
earperate-Jimits-of-the-Gity of Miami,
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The non for pre-ft-or for profit housing dovoloper(s)--must rent -the newly construe-ted
housing u nits to eliti ~ e- ^° sel ^ fst-co►tte-first served basis.
The-following-eic-penelitttres shall-quelif,fan-d wilf-be eligible-n der t1+ s straie„y.
Those-hard-ee4S-rvlii-C-h-iffe-ie warily treated a construct-ien-casts--by
institutional lenders
• Construction costs, such as architectural, engineering studies and appraisals, if
directly related-' si eoriet t;e'-terr;
+—Iiiffastrueture expenses typieally paid by the developer;
•— it-ori npaet-tmd--pen+tting fees.
•e+atcd with land acquisition and site dceloptnertt:
Any SHIP Program al-1oeatieiezrdi;tgth- errn oldie loan will be-reeeniincnded by
City staff to the City's Housing and Commercial Loan Committee for
approval/ isapprevsl-based-en4hc cL cr-ia-cnui crated above,
Spouse-r-S-@ketioit-G Ue rrr_
The-City-ofMtartitater+ds to administor this-pregrarn
1111. LHAP INCENTIVE STRATEGIES
Secoon 420 9071(16), F.S.
A. Name of the Strategy: Expedited Permitting
Permits as defined in s. 163.3164(7) and (8) for affordable housing
projects are expedited to a greater degree than other projects.
a. Established policy and procedures: Provide Description:
Priority is given to affordable housing developments by expediting the permitting
process. The City of Miami Department of Community Development works closely
with 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 Department of Community Development are eligible for certain
incentives that assist with expediting the permitting process. Prior to presenting the
project's building plans to the Department of Building for the plan review process,
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developers are able to schedule a pre -construction meeting with the Department of
Building. 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 made by the plan reviewers. This process can
shorten the permit approval process by 15 days. There is no charge for this service to
developers of certified affordable housing projects.
B. Name of the Strategy: Ongoing Review Process
An ongoing process for review of local policies, ordinances, regulations and plan
provisions that increase the cost of housing prior to their adoption.
a. Established policy and procedures:
The Department of Community Development conducts on -going reviews of
actions being considered by the City of Miami's Planning Advisory Board,
Zoning and Code Enforcement Boards and the City Commission that are being
considered and may have an impact on affordable housing.
C. Name of the Strategy: impact Fee Waiver / Exemption
a. Established policy and procedures
Affordable housing projects are exempted from the payment of Development
Impact Fees, as stipulated in Ordinance No. 10426, adopted April 25, 1998. The
Department of Community Development is required to certify to the Department
of Building that the proposed housing project(s) will be affordable to low and
moderate income families and individuals, which results in the developer securing
an exemption from the impact fees. This incentive is functioning as intended.
D. Name of Strategy: Interim Proprietary and General Services Fee Waiver /
Exemption
a. Established Policies and Procedures
Affordable housing projects are exempted from the payment of interim proprietary
and general services fees as stipulated in Ordinance No, 010705, adopted February 7,
1990. The Department of Community Development is required to certify to the
Department of Building that the proposed housing project(s) will be affordable to
low and moderate income families and individuals which results in the developer
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securing an exemption from the above mentioned fees. This incentive is functioning
as intended.
E. Name of Strategy: Reduction of Parking and Setback .Requirements
a. Established Policies and Procedures
Affordable housing projects are afforded an opportunity to receive a reduction in parking
by the City of Miami, as stipulated in Section 917.5 of Ordinance No. 11000, adopted
September 4, 1990. The Department of Planning and Zoning is responsible for
facilitating this incentive for providers of housing affordable to kw and moderate
income. This incentive is functioning as intended.
F. Name of Strategy: [nterim Proprietary and General Services Fee Waiver 1 Exemption
a. Established Policies and Procedures
Affordable housing projects are exempted from the payment of construction debris
removal fees as stipulated in Ordinance No, 11725, adopted November 17, 1998, The
Department of Community Development is required to certify to the Department of
Building that the proposed housing project(s) will be affordable to low and moderate
income families and individuals which results in the developer securing an exemption
from the from the aforementioned fee. This incentive is functioning as intended.
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1V, EXHIBITS:
A. Administrative Budget for each fiscal year covered in the Plan. Exhibit A.
B. Timeline for Encumberance and Expenditure: Chapler 67-37.005(6)(d) and (I) F.A.C.
A separate timeline for each fiscal year covered in this plan is attached as Exhibit B.
Program funds will be encumbered by June 30 one year following the end of the
applicable state fiscal year. Program funds will be fully expended within 24
months of the end of the applicable State fiscal year.
C. Housing Delivery Goals Chart (HDGC) For Each Fiscal Year
Covered in the Plan: Chapter 67-37.005), F.A.C.
Completed HDGC for each fiscal year is attached as Exhibit C.
D. Certification Page: Chapter67-37.005(7), FA.C.
Signed Certification is attached as Exhibit D.
E. Adopting Resolution: Section 420.9072(2)(b)2, F.S.
Original signed, dated, witnessed or attested adopting resolution is attached as
Exhibit E.
F. Program Information Sheet:
Completed program information sheet is attached as Exhibit F.
G. Ordinance: secrian 4209072(3)(0, F.S. N/A
II. Interiocal Agreement: Section 420.9072, F.S. NIA
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