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HomeMy WebLinkAboutExhibit 2JOB 44" CITY OF MIAMI SHIP LOCAL HOUSING ASSISTANCE PLAN (LHAP) FISCAL YEARS COVERED 2004/2005, 2005/2006 AND 2006/2007 City of Miami State Housing Initiatives Partnership (SHIP) Program LOCAL HOUSING ASSISTANCE PLAN State Fiscal Years 2001/2002/2003 SECTION I. PROGRAM DESCRIPTION . Participating Local Government The City of Miami, a municipal corporation established under the laws of the State of Florida has developed its Local Housing Assistance Plan (hereinafter referred to as the "Plan") to comply with the requirements of the William E, Sadowski Affordable Housing Act. This Plan describes the activities the City of Miami will undertake to meet the affordable housing needs of its very low, low and moderate -income residents, as defined in section 420.9071, Florida Statutes, using State Housing Initiatives Partnership Act (SHIP) funds in accordance with the requirements of Section 420.907 of the Florida Statutes and Chapter 67-37 of the Florida Administrative Code. On July 7, 1992, the William E, Sadowski Affordable Housing Act was signed into law. The centerpiece of this legislation is the State Housing Partnership Act which provides a dedicated revenue source to state and local governments to facilitate the creation of public/private partnerships whose purpose is to preserve the existing housing stock and stimulate the production of new affordable housing, . Program Description For State of Florida Fiscal Years FY 2001-2002, FY 2002-2003, and FY 2003 — 2004, the City of Miami will use 90% of its SHIP allocation to undertake various homeownership and rental housing development activities designed to enhance and facilitate the development, purchase and maintenance of housing units in the City. These housing strategies and activities will be carried out through the SHIP assisted Single Family Rehabilitation Program, Homebuyers Financing Program, Single Family Replacement Housing Program, and Home -ownership Development Program and Rental Housing Development Program. These activities will involve the construction, reconstruction, rehabilitation and acquisition/purchase of housing to be occupied by very low, low and moderate income households and homeowners or renters with incomes at or below 120% of the area median income, adjusted for family size. The remaining 10% will be used to cover administrative expenses associated with implementation of the SHIP Program, Revised 2/1 BIM 1 The program strategy focuses on assistance to very low, kw and moderate income persons or households, as defined in Section 420.907, Florida Statutes as follows: • Very low income - one or more natural persons or a family that has a total annual gross household income that does not exceed 50% of the median annual income adjusted for family size for households within the Metropolitan Statistical Area. • Low-income - one or more natural persons or a family that has a total annual gross household income that does not exceed 80% of the median annual income adjusted for family size for households within the Metropolitan Statistical area. • Moderate income - one or more natural persons or a family that has a total annual gross household income that does not exceed 120% of the median annual income adjusted for family size for households within the Metropolitan Statistical Area. The Department of Community Development staff will perform mid -year and end of year monitoring to ensure compliance with the program statutory requirements in accordance with Chapter 67-37, Florida Administrative Code. . Plan Period The City of Miami Local Housing Assistance Plan will cover a three (3) year period inclusive of, State Fiscal Years 2001-2002, 2002 — 2003 and 2003 — 2004. This Plan and any plan amendments will become effective immediately upon adoption by the Mayor and City Commission and subsequent approval by the Florida Housing Finance Corporation. . Public Input and the Local Housing Assistance Plan Development Process In developing its Local Assistance Plan, the City of Miami implemented an extensive Citizen Participation process that included a series of public meetings at the City wide Community Development Advisory Board level, culminated by six (6) Public Hearings held in individual City Commission districts. The Districts Public Hearings were co-chaired by the Chairperson of the Citywide Community Development Advisory Board and the City Commissioner representing each of the City's five (5) districts. The Districts Public Hearings represented a new concept in the City of Miami's planning process to develop its U. S. Department of Housing and Urban Development approved Five (5) Year Consolidated Plan (1999-2004). At each of the Pubic Hearings, recognized professionals in the area of Housing, Economic Development, Public Services and Workforce Development were invited to present objective testimonies in their area of expertise intended to provide pertinent insights to the general public, Advisory Board Members and elected officials. At each of the Pubic Hearings, citizens were provided on opportunity to contribute input regarding the City's proposed housing strategy. Revised 2118104 2 In addition, public notices were placed in the local multi-lingual, multi -cultural newspapers of major circulation requesting input from citizens and all interested parties in the development of this three (3) year Local Housing Assistance Plan. This Plan outlines the housing programs and strategies which will be implemented on an annual basis to assist the City of Miami in addressing its housing needs utilizing the SHIP and how those objectives will be accomplished. The housing strategies outlined in the Local Housing Assistance Plan are consistent with the City's Five (5) Year Consolidated Plan (1999 — 2004). Supportive Services Each applicant that applies for assistance under the SHIP Programs will receive assistance, counseling and 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. 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 homeowner(s) 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 & Training Consortium for employment and job training. • Referrals to the appropriate local agencies for fair housing assistance, information and counseling. • Legal aid referrals for counseling and guidance on other legal matters. SECTION II. INTERLOCAL AGREEMENT This plan is not governed by an inter -local agreement. Revised VIM 3 SECTION III. LOCAL HOUSING PARTNERSHIPS a. Development of Partnerships The City of Miami has developed and worked in Partnership with various non-profit and private for profit housing developers and agencies to facilitate the production and rehabilitation of affordable housing units in the City. The City of Miami works in partnership with various community housing development organizations and community development corporations that include the following agencies; • Allapattah Business Development Authority, Inc. • BAME Development Corporation of South Florida, Inc. • CODEC, Inc. • East Little Havana Community Development Corporation • Miami Beach Community Development Corporation • Greater Miami Neighborhoods, Inc. • Habitat for Humanity of Greater Miami, Inc. • Little Haiti Housing Association, Inc. • Jubilee Community Development Corporation • St. John Community Development Corporation In addition, the City of Miami works with local lenders and Realtors, Fannie Mae, Local Initiatives Support Corporation(LISC), Model City Affordable Housing Planning Work Group, Miami -Dade Housing Agency, Consumer Credit Counseling Services and many other service providers to provide referrals, services, expertise and resources to better serve the residents of this community. These organizations will be encouraged to continue to participate in program activities and to assist in program implementation. b. Strategies to Reduce Cast • The City of Miami will work closely with Miami Dade. County's Office of Economic and Community Development and Miami Dade Housing Agency to leverage available financial resources in the financing of affordable housing projects sponsored by not -for - profit and for -profit housing developers planned in the City. • The City of Miami will allocate funds under the federally funded CDBG and Home Programs to fund and expand the Emergency HOME Repair Assistance Program, Single Family Rehabilitation, Homebuyers Financing Programs, and Rental Housing Development Programs. These programs will assist in reducing the overall cost of funds needed to assist properties under the various strategies assisted with SHIP Program funds. • Assistance will be provided in the form of deferred payment and low interest loans to prevent additional cost burdens on very low, low and moderate income households and ensure that homeowners can remain in their homes after the assistance is provided. Revised 211&U4 4 SECTION IV. HOUSING STRATEGIES la. SHIP EMERGENCY HOME REPAIR ASSISTANCE PROGRAM . Strategy Description The SHIP Emergency HOME Repair Assistance Program will provide emergency repair 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 carry -out limited repairs such as roofing, electrical, plumbing, etc. to immediately rectify hazardous and potentially hazardous conditions which, if not corrected, may endanger the health and safety of the occupants of the home. The City of Miami, Department of Community Development will be the primary agency responsible for the implementation of the Local Housing Assistance Plan Strategy. k. Strategy Period The strategy identified in this section will be used to carry out the Housing Assistance Plan for State Fiscal Years 2001 — 2002, 2002 — 2003, 2003 — 2004. The three (3) year strategy will cover homeownership activities. k. Income Category 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. k. 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. Revised 2/18/64 5 • 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: (1) 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. • 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. k. Recapture Provisions Financial assistance to be provided under the SHIP Emergency Home Repair Program will be provided to eligible homeowners in the form of a zero percent, deferred payment, thirty (30) 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 long as the heirs qualify based on age, income and household size, remain owner occupants of the property Revised 2/18/04 6 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. k. Leveraging The City of Miami will also use its HOME Program funds from the U.S. Department of Housing and Urban Development to expand the availability of funding available for this strategy thereby leveraging the SHIP funds. g. Strategy Implementation The City of Miami, Department of Community Development will be the primary agency responsible for carrying out this strategy under the Housing Assistance Plan and does not anticipate the use of a sponsor to carry out program activities. 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 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. 2a. SHIP Single Family Rehabilitation Program . Strategy Description Revised 3118/04 7 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 needed 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. g. Strategy Period The strategy identified in this section will be used to carry out the Housing Assistance Plan for State Fiscal Years 2001 — 2002, 2002 — 2003, 2003 — 2004. The three (3) year strategy will cover homeownership activities. g. Income Category 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. g. 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 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. Revised 2718/04 8 • 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. • 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 maximum amount of financial assistance to be provided may not exceed the lesser of (1) the actual cost of rehabilitation or (2) $30,000. In the event the cost of rehabilitation excess the maximum available under this strategy, approval for any increase over and above this amount must receive prior approval from the City Manager or the Director of the Department of Community Development acting as his/her designee. • Prior to the City Commission adoption and approval to reduce the amount of financial assistance available under this strategy in March, 2002, eligible homeowners that previously received assistance are eligible to receive funding in excess of $40,000 to cover certain additional costs associated with right of way improvements and to correct deficiencies on residences previously rehabilitated. The additional funds will be provided to the homeowner in the form of a grant in accordance with the cost estimates established by an independent engineering firm or City staff. • The applicant may not be delinquent on any debt owed to the City of Miami or Miami - Dade County. d. Recapture Provisions Financial assistance to be provided under the Single Family Rehabilitation Program will be provided to eligible homeowners in the form of a zero percent, deferred payment, thirty (30) 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, learned 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 ore rent the property for the remaining term of the mortgage and note. A Revised 2f 18104 9 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. d. Leveraging The City of Miami will also use its HOME Program funds from the U.S. Department of Housing and Urban Development expand the availability of funding available for this strategy thereby leveraging the SHIP funds. g. Strategy Implementation The City of Miami, Department of Community Development will be the primary agency responsible for carrying out this strategy under the Housing Assistance Plan and does not anticipate the use of a sponsor to carry out program activities. 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 will 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 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. 3b. SHIP Homebuyers Financing Program e. Strategy Description Revised 2718l04 10 The City of Miami through the Homebuyers Financing Program will provide downpayment, 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 low, low and moderate income residents to purchase a single family home, town home or condominium. e. Strategy Period The strategy identified in this Section is a three (3) year strategy covering the State Fiscal Years 2001 - 2002, 2002 - 2003, 2003 - 2004. e. Income Category to be Served Available SHIP funds shall be reserved for eligible persons and households. To comply with the overall requirements under Chapter 67-37 of the Florida Administrative Code, thirty percent (30%) of the SHIP funds will be set -aside for persons or households who are very low-income. Another thirty percent (30%) of the SHIP funds will be set -aside for persons or households who are low-income. The remaining SHIP funds will be used to assist persons or households who are very low, low and moderate income. e. Selection Criteria All recipients of financial assistance must meet the eligibility requirements as provided in the Florida Statutes, Florida Administrative Code, SHIP Program Ordinance, Resolution, the Plan and this Strategy. Eligible housing includes single family homes, a townhouse or a condominium unit. Mobile homes are not eligible for assistance under this program. The properties to be purchase must be located within the corporate limits of the City of Miami. Participants shall be first time homebuyers. A first time homebuyer is defined as someone who has not owned a home within the last three (3) years. Applicants will be processed 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 incomes above one hundred twenty (120%) percent of the median area income limit are ineligible for SHIP Program 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 SHIP funding requirements. • Eligible properties are those where the proposed sales price or value, based on an appraisal performed by a state certified appraiser of a new or existing home purchased or rehabilitated using SHIP Program funds, does not exceed 90% of the median area purchase price for either new or existing housing as applicable, for the area where the housing is located, as determined by the Florida Housing Finance Corporation's Bond Program, euiTently-S-1-9.9714-7-fer-a-new-hethe-an44-1-7-37-70-1-fer--ai+-ex4sting-tienieT 2004. This value is $236,835 for new and existing homes Revised 2/1 B104 11 e SHIP funds for this strategy may be used for down -payment, closing cost, second mortgage financing and repairs. • Monthly mortgage payments, including taxes and insurance shall not exceed thirty (30%) percent of an amount representing the percentage of the area's median annual gross income for the household, unless the first mortgage lender is satisfied that the household can afford mortgage payments in excess of the thirty (30%) percent benchmark, based on the first mortgage loan approval. 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 more than 4$85ti225,00 or the amount ne*d to meet credit underwrite, tg. unless approved by the City Manager or Director of the Department of Community Development acting as his/her designee Number of Bedrooms 0 1 2 3 4 Maximum Subsidy $42,980 $49.557 $59,766 $76,501 $85.225 not for profit and private sector housing de d. Recapture Provisions Financial assistance to be provided under the SHIP Homebuyers Financing Program will be provided to eligible homeowners in the form of zero percent, deferred payment, thirty (30) 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, learned 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 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. Reeiud 2l18/04 12 Deleted: e. Leveraging The City of Miami will use Community Development Block Grant funds as needed for eligible program expenditures. g. Strategy Implementation The City of Miami, Department of Community Development will be the primary agency responsible for carrying out this strategy under the Housing Assistance. Plan and does not anticipate the use of a sponsor to carry out program activities. 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 will 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 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. 3b. SHIP Single Family Replacement Housing Program Strategy Description 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. Revised 2f18104 13 Under this strategy, only single family residential property/(ies) which are beyond repair and unsafe for human habitation will be provided assistance, The SHIP Program 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. a. Strategy Period The strategy identified in this Section is a three (3) year strategy covering the State Fiscal Years 2001 — 2002, 2002 — 2003, 2003 — 2004. a. Income Category to be Served Available SHIP funds shall be reserved for income eligible persons and households who occupy the property as their principal residence. To comply with the overall requirements under Chapter 67 of the Florida Administrative Code, eligible persons and households will be very low, low or moderate income. a. 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 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 processed 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%) percent of the median area income limit are ineligible for SHIP assistance under this strategy. • Financial assistance to be provided under the SHIP Single Family Replacement Housing Program will be provided to eligible homeowners and households with family incomes below fifty percent (50%) of median income for the area, in the form of a zero percent (0%) interest deferred payment loan secured by the property, that will be forgiven on a pro-rata basis over a fifteen (15) year term, as long as the housing unit is owned and Revised 2/18104 14 occupied by the initial applicant, Homeowners and households below fifty percent (50%) of median income are eligible to receive a deferred payment loan of up to P-5 00O. 5120,000. Income eligibility is determined by the income guidelines that are approved and authorized by the U.S. Department of Housing and Urban Development (USHUD) and distributed by the Florida Housing Finance Corporation (FHFC). • Financial assistance to other eligible homeowners will be provided in the form of a low interest loan ranging from one percent (1%) to three percent (3%) based on family income and household size as indicated below: 0. Income of at least 50% but less than 60% of median income will receive an effective interest rate of 1% for a maximum loan term of fifteen or twenty years. 0. Income of at least 60% but less than 70% of median income will receive an effective interest rate of 2% for a maximum loan term of fifteen or twenty years. 0. Income of at least 70% and up to 80% of' median income will receive an effective interest rate of 3% for a maximum loan term of fifteen or twenty years. • 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 S75,000. $120.000 • The following costs associated with this strategy are eligible: 0. Hard costs, which are typical and customarily viewed as construction cost(s) by institutional lenders; 0. Payment of impact fees; 0. Infrastructure fees typically paid by the developer; 0. Construction soft cost such as architectural and engineering fees, appraisals, if directly related to housing construction. 0. Temporary relocation cost associated with the reconstruction of the home. e. Recapture Provisions Revised 2118fO4 15 Financial assistance provided under the Single Family Replacement Housing Program will be provided to eligible homeowners based on family size and with incomes of less thanfifty percent (50%) of median income in the form of a zero percent (0%) interest deferred payment loan secured by the property, that will be forgiven over a fifteen (15) year period from the date within six (6) months of the loan closing between the homeowner and the City or construction is completed and the issuance of a certificate of occupancy (c.o.) by the City, whichever occurs first. There is no monthly payment associated with this loan. 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) year period as indicated. The assistance provided under this strategy will be forgiven on a pro-rata basis over a fifteen (15) year term, as long as the housing unit is owned and occupied by the initial applicant. If the property is rented, leased or sold during the fifteen (15) year period, then the pro-rata balance remaining on the original 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 rent the property for the remaining term of the mortgage and note. Financial assistance to other eligible homeowners with incomes over fifty percent (50%) of median income will be provided in the form of a low interest loan ranging from one percent (1%) to three percent (3%) for fifteen (15) or twenty (20) years. Monthly payments will be required by the homeowner within six (6) months of the loan closing between the City and homeowner or upon completion of construction and the issuance of a certificate of occupancy (c.o.) by the City whichever occurs first. If the property is rented, leased or sold during the fifteen (15) or twenty (20) year period, then the full amount of the outstanding balance remaining on the original loan will become due and payable to the City of Miami at that time. In the event of death of the original homeowner or applicant, the heir to the property can assume the outstanding loan balance as long as the heir is income eligible, remain owner -occupants of the property and do not sell or rent the property for the remaining term of the mortgage and note. An 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. Homeowners who qualify and receive financial assistance must execute a 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. f. Leveraging The City of Miami will use Community Development Block Grant funds as needed for eligible program expenditures. g. Strategy Implementation The City of Miami, Department of Community Development will be the primary agency responsible for carrying out this strategy under the Housing Assistance Plan and does not Revised VI 8/04 16 anticipate the use of a sponsor to carry out program activities. 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. 4d. SHIP Homeownership Development Program p. Strategy Description 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 by not -for -profit housing developers or the City. p. Strategy Period The strategy identified in this Section will be used to carry out the Local Housing Assistance Plan for State Fiscal Years 2001 — 2002, 2002.2003, 2003 — 2004. p. Income Category to be Served Available SHIP funds shall be reserved to assist affordable housing projects, which will provide housing for eligible persons and households. To comply with the overall requirements under Chapter 67-37 of the Florida Administrative Code, thirty (30%) percent for persons or households who are very low-income. Another thirty percent (30%) of the SHIP funds will be set -aside for persons or households who are low-income. The remaining SHIP funds will e used to assist persons and households who are very low, low and moderate income. p. Selection Criteria SHIP funding under this strategy will be awarded through a competitive Request for Proposals (RFP) process. Through the City of Miami's solicitation, proposals will be received from for - profit and not -for -profit housing developers for the construction of new affordable housing units targeted for very low, low and moderate income families and individuals. All housing developers applying for financial assistance under the strategy will be awarded SHIP funding using criteria, including, but not limited to the following: • Financial capacity and strength of the not -for -profit or for -profit housing developer; Revised 2/18704 17 • Ability of not -for -profit or for -profit housing developer to complete the housing project by the expenditure deadline requirements established by the SHIP Program and State of Florida; • Ability to document/demonstrate that construction will be underway within six (6) months from the date of funding award by the City; • Firm evidence of site control; Document and/or identify other project financing from other public and/or private sources which would leverage financial assistance provided by the City at a minimum of one (1) to three (3) for homeownership projects as stipulated by City of Miami's Resolution No. 98-587 adopted June 9, 1998. Consistency with the City of Miami's Five Year Consolidation Plan (1999 — 2004) and SHIP Local Housing Assistance Plan (2001 — 2004). All recipients or households that will receive housing or assistance under this strategy once the housing project has been completed, must meet the eligibility requirements as stipulated in the Florida Statutes, Florida Administrative Code, the SHIP Program Ordinance, Resolution, the Plan and this strategy. Eligible housing types under this strategy includes single family homes, a townhouse or a condominium unit. The properties to be developed and purchased by the targeted households must be located within the corporate limits of the City of Miami. The non -for -profit or for -profit housing developer(s) must sell the newly constructed housing units to an eligible household on a first come first -served basis using the same criteria as described in the Homebuyers Financing Program previously enumerated in this Plan. • The following expenditures shall qualify and will be eligible under this strategy: 0. Those hard costs which are typical and customarily treated as construction costs by institutional lenders; 0. Construction staff costs, such as architectural engineering studies and appraisals, if directly related to housing construction; 0. Infrastructure expenses typically paid by the developer; 0. Payment of impact and permitting fees. 0. Costs associated with land acquisition and site development. • A maximum of up to $40,000/unit in financial assistance may be received for housing projects assisted through this strategy. p. Recapture Provisions Revised2r1SIN . 18 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 three — six (3% - 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 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. 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 available of construction and first mortgage financing. • Consistency with the City's Five (5) Year Consolidated Plan (1999-2004). • Ability to demonstrate project will be affordable to low and moderate income households, p. Leveraging The City of Miami will also use its HOME Program funds from the U. S. Department of Housing and Urban Development to expand the availability of funding available to undertake the strategy, thereby leveraging its SHIP funds. Under this strategy, private construction and permanent financing, in addition to financing from other public and private sector and private foundation sources, such as Miami -Dade Housing Agency, Miami -Dade County's Housing Finance Agency, Fannie Mae, Federal Home Loan Bank of Atlanta, John S, and James L. Knight Foundation and Local Initiatives Support Corporation (LISC), will be leveraged to ensure that the housing to be constructed will be affordable to very low, low and moderate income families and individuals, g. Strategy Implementation Revised 2n8r09 19 The City of Miami, Department of Community Development will be the primary agency responsible for carrying out this strategy under the Housing Assistance Plan and does not anticipate the use of a sponsor to carry out program activities. 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 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. SHIP Rental Housing Development Program p. Strategy Description The SHIP Rental Housing Development 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 by not -for -profit housing developers or the City. p. Strategy Period Revlscd 2118104 20 The strategy identified in this Section will be used to carry out the Local Housing Assistance Plan for State Fiscal Years 2001 — 2002, 2002 — 2003, 2003 — 2004. p. Income Category to be Served Available SHIP funds shall be reserved to assist affordable housing projects, which will provide housing for eligible persons and households. To comply with the overall requirements under Chapter 67-37 of the Florida Administrative Code, thirty (30%) percent for persons or households who are very low-income. Another thirty percent (30%) of the SHIP funds will be set -aside for persons or households who are low-income. The remaining SHIP funds will be used to assist persons and households who are very low, low and moderate income. p. Selection Criteria SHIP funding under this strategy will be awarded through a competitive Request for Proposals (RFP) process. Through the City of Miami's solicitation, proposals will be received from for - profit and not -for -profit housing developers for the construction of new affordable housing units targeted for very low, low, and moderate income families and individuals. All housing developers applying for financial assistance under the strategy will be awarded SHIP funding using criteria, including, but not limited to the following: • Financial capacity and strength of the not -for -profit or for -profit housing developer; • Ability of not -for -profit or for -profit housing developer to complete the housing project by the expenditure deadline requirements established by the SHIP Program and State of Florida; • Ability to document/demonstrate that construction will be underway within six (6) months from the date of funding award by the City; • Firm evidence of site control; Document and/or identify other project financing from other public and/or private sources which would leverage financial assistance provided by the City at a minimum of one (1) to five(5) for rental projects as stipulated by City of Miami's Resolution No. 98-587 adopted June 9, 1998. Consistency with the City of Miami's Five Year Consolidation Plan (1999 — 2004) and SHIP Local Housing Assistance Plan (2001 — 2004). All recipients or households that will receive housing or assistance under this strategy once the housing project has been completed, must meet the eligibility requirements as stipulated in the Florida Statutes, Florida Administrative Code, the SHIP Program Ordinance, Resolution, the Plan and this strategy. Eligible housing types under this strategy includes all multi -family Revised 2/18/04 21 projects with at least 20 units_ The properties to be developed must be located within the corporate limits of the City of Miami. The non -for -profit or for -profit housing developer(s) must rent the newly constructed housing units to an eligible household on a first come first -served basis: • The following expenditures shall qualify and will be eligible under this strategy: 0. Those hard costs which are typical and customarily treated as construction costs by institutional lenders; 0. Construction staff costs, such as architectural engineering studies and appraisals, if directly related to housing construction; 0. Infrastructure expenses typically paid by the developer; 0. Payment of impact and permitting fees. 0. Costs associated with land acquisition and site development. • A maximum of up to $40,000/unit in financial assistance may be received for housing projects assisted through this strategy. p. Recapture Provisions 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 three — six (3% - 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 of all the housing -units, -the City -of Miami will fully satisfy the developer's obligation to the City in connection with the financing of the project. Financial assistance made to the developer, as a grant will also be satisfied upon completion of the construction phase of all the housing units. SHIP funding to be provided by the City of Miami under the Rental Housing 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. Revised 2JI8104 22 • Evidence of available of construction and first mortgage financing. • Consistency with the City's Five (5) Year Consolidated Plan (1999-2004). • Ability to demonstrate project will be affordable to low and moderate income households. p. Leveraging The City of Miami will also use its HOME Program funds from the U. S. Department of Housing and Urban Development to expand the availability of funding available to undertake the strategy, thereby leveraging its SHIP funds. Under this strategy, private construction and permanent financing, in addition to financing from other public and private sector and private foundation sources, such as Miami -Dade Housing Agency, Miami -Dade County's Housing Finance Agency, Fannie Mae, Federal Home Loan Bank of Atlanta, John S. and James L. Knight Foundation and Local Initiatives Support Corporation (LISC), will be leveraged to ensure that the housing to be constructed will be affordable to very low, low and moderate income families and individuals. g. Strategy Implementation The City of Miami, Department of Community Development will be the primary agency responsible for carrying out this strategy under the Housing Assistance Plan and does not anticipate the use of a sponsor to carry out program activities. 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 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; Revised 2/18/01 23 • The soundness of the proposal; • The cost per family to administer the program. SECTION V. TIME LINE FOR EXPENDITURES See the attached timeline SECTION VI. LOCAL HOUSING INCENTIVE STRATEGIES On October 10, 1996, the City of Miami Commission adopted the City of Miami's Affordable Housing Incentive Plan (AHIP), in compliance with Ordinance No. 11253, Resolution Nos. 95- 188 and 95-305, Florida Administrative Code and Section 420.9076 of the Florida Statutes, based on the recommendations of the City of Miami's Affordable Housing Advisory Board. The Affordable Housing Incentive Plan, as adopted, provides developers of affordable housing projects with a number of local incentives that are intended to expedite the pre -development process and reduce certain cost(s) in connection with the production of affordable housing projects in the City of Miami. The following incentives are available in the City of Miami: Incentive I. Expedited Permitting for Affordable Housing Projects • 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, 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. Incentive 2. Review of Legislation, Policies and Plans that Impact Affordable Housing. Revised 2718104 24 • 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. Incentive 3. Impact Fee Wavier / Exemption • 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. Incentive 4. Interim Proprietary and General Services Fee Waiver / Exemption • 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 securing an exemption from the above mentioned fees. This incentive is functioning as intended. Incentive 5. Reduction of Parking and Setback Requirements 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. 110000. The Department of Planning and Zoning is responsible for facilitating this incentive for providers of housing affordable to lawand moderate income. This incentive is functioning as intended. Incentive 6. Interim Proprietary and General Services Fee Waiver / Exemption • 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. SECTION VII. AFFORDABILITY v. Homeownership Revised 2/1 */Q4 25 0. The gross annual household income limits, as established by HUD and distributed by the Florida Housing Finance Corporation, adjusted for family size, will be used to determine applicant eligibility for the program. (These limits are subject to change.) 1. The housing shall be considered affordable when the monthly mortgage payments including taxes and insurance does not exceed 30% of that amount which represents the percentage of the area median annual gross income for very low income households (50% or less), low income households (80% or less) and moderate income households (not to exceed 120%) adjusted for family size. SECTION VIII. ADVERTISEMENT AND OUTREACH (.Outreach Strategies 6. The City of Miami will use several outreach strategies to inform local residents of the SHIP resources available under the Local Housing Assistance Plan. The goal will be to ensure that residents have one or more avenues to access and receive information about the availability of program resources. The City of Miami has an existing back log of applicants who will be processed first, based on the availability of SHIP funding. All additional outreach efforts will include advertisement in multi-lingual, multi -ethnic newspapers of general circulation to inform potential applicants that the City of Miami has a current backlog of applicants waiting for rehabilitation and homebuyer assistance. All applicants responding to the advertisement will be added to the end of the waiting list, and the assistance will be provided on a first -come first -served basis. The City's overall outreach efforts will include advertisement in multi-lingual, multi -ethnic newspapersof general circulation, flyers placed at strategic locations throughout the City including :;;the Office of Workforce Development, Department of Community Development's Satellite Offices, various Neighborhood Enhancement Team (NET) Offices and offices -of members of the Housing Partnership. Additional outreach will be carried out through: programs on the City of Miami Cable Station Channel 9 (cable) and staff presentations at various homebuyer's seminars and community meetings. l.Advertisement The City . of Miami will publish an advertisement in multi-lingual, multi -ethnic publications outlining the availability of SHIP funds in a local newspaper of general circulation at least 30 days prior to the application period. All advertisements or flyers disseminated to the public will advise potential applicants that there is an existing backlog (waiting list) for assistance and all applicants who wish to participate under the program will be added to the end of the waiting on a first -come first -serve basis. Revised 2/18/04 26 SECTION IX. ADMINISTRATIVE EXPENSES a. Responsible Agency The City of Miami Department of Community Development will be primarily responsible for the implementation of the housing strategies. Staff functions include applicant intake, qualification and underwriting of homeowners and homebuyers, inspections, preparation of documents, and implementation of the strategy from commencement to project completion. a. Administrative Budget Up to 10% SHIP funds shall be used for administrative expenses under the SHIP Program. ADMINISTRATIVE EXPENSES FY' 2001-2002 FY' 2002-2003 FY' 2003-2004 SALARIES & OTHER PROGRAM RELATED COSTS $161,959 $188,927 $188,927 PROFESSIONAL SERVICES $26,905 $42,679 $42,679 OFFICE/ MISCELLANEOUS SUPPLIES $I,606 $1,000 $1,000 TOTAL $190,470 $232,606 $232,606 Revised 2/18/04 27 SECTION IX: CERTIFICATION CERTIFICATION TO FLORIDA HOUSING FINANCE CORPORATION Local Government: City of Miami (1) The local government will advertise the availability of SHIP funds pursuant to Florida Statutes. (2) All SHIP funds will be expended in a manner which will insure that there will be no discrimination on the basis of race, creed, religion, color, age, sex, familial or marital status, handicap, or national origin. (3) A process for selection of recipients for funds has been developed. (4) The eligible municipality or county has developed a qualification system for applications for awards. (5) Recipients of funds will be required to contractually commit to program guidelines. (6) The Florida Housing Finance Corporation will be notified promptly if the local government (or interlocal entity) will be unable to comply with the provisions the plan. (7) The Local Housing Assistance Plan shall provide for the expenditure of SHIP funds within 24 months following the end of the State fiscal year in which they are received. (8) The plan conforms to the Local Government Comprehensive 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. (9) Amendments to the approved Local Housing Assistance Flan shall be provided to the Corporation with in 21 days after adoption. (10) The trust fund shall be established with a qualified depository for all SHIP funds as well as moneys generated from activities such as interest earned on loans. (11) Amounts on deposit in the local housing assistance trust fund shall be invested as permitted by law. (12) The local housing assistance trust fund shall be separately stated as a special revenue fund in the local governments audited financial statements, copies of the audits will be forwarded to the Corporation as soon as available. 13) An interlocal entity shall have its local housing assistance trust fund separately audited for each state fiscal year, and the audit forwarded to the Corporation as soon as possible. Revised 2/16704 28 Page 2 Certification (14) SHIP funds will not be pledged for debt service on bonds or as rent subsidies. Witness Chief Elected Official Honorable ManueLA, Diaz. Mavar Witness Type Name and Title Date OR Attest: (Seal)