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HomeMy WebLinkAboutExhibit 3I, 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 Interlocal : Yes No ✓ Name of participating local government(s) in the Interlocal Agreement; Not Applicable A copy of the Interlocal 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,FA.C. ✓ 2004/2005 ✓ 2005/2006 ✓ 2006/2007 D. Governance: Chapter 67-37.005(3)and(5)(1)F.A C. and Section 420.9071(14)F.S. The SHIP 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. Q Allapattah Business Development Authority, Inc. < BAME Development Corporation of South Florida, Inc. < East Little Havana Community Development Corporation • Miami Beach Community Development Corporation Q Greater Miami Neighborhoods, Inc. < Habitat for Humanity of Greater Miami, Inc. Q Little Haiti Housing Association, Inc. 2 < Jubilee Community Development Corporation Q St. John Community Development Corporation In addition, the City of Miami works with local lenders 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), F.A.C. and Subsection 420.9075(1)(a) and (1)(1,3, 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 67-37.005(6)(a), F.A.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 of race, creed, religion, color, age, sex, marital status, familial status, national origin, or handicap in the award application process for eligible housing. 3 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 Chapter67-37.007(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 Depaitaient The purchase price limit for: New and Existing Homes: $236,835.00 4- L. Income Limits, Rent Limits and Affordability: Chapter 67-37.005(5)(e), F.A.C. .and 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: Chapter 67-37.005(6)(b)(7)F.A.C. 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)and (4) (1), F.S. 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 adequately pay the necessary costs of administering the local housing assistance plan. -5- 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. LHAP HOUSING STRATEGIES: Chapter 67-37.005(5), F.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 $15,000 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 a zero three percent, deferred forgivable payment, thirty (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 7- 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 balance of the outotanding 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. 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. • 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. 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. 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 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. 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 as stipulated in 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 of $30,000 $35,000 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, $35,000 a higher amount maybe 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 a three percent (3%), deferred forgivable payment, 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 if the property receiving the financial assistance is rented or sold during the life of the loan. Homeowners that -10- 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: 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. • 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, - 11 - • 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 applicant may not be delinquent on any debt owed to the City of Miami. 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 -12- a. Summary of the Strategy: 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 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: Residents meeting the selection criteria will be awarded a maximum of $120,000 $150,000 for 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 thirty (30) years based on income levels. -13- 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%) non -amortizing loan with a term of thirty (30) years. Payment of principal and accrued interest at sale or rental of the property. 27 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 non - amortizing loan with a term of thirty (30) years. Pay~~enth of the loan will Payment of principal and accrued interest at sale or rental of the property. 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 non -amortizing loan with a term of thirty (30) years. Payments of the loan will begin six (6) months from the issuance of a certificate of Payment of principal and accrued interest at sale or rental of the property. 4. Applicants with incomes at seventy (70%) or higher but less or equal to eighty (120% 80%) of median income will receive a three percent (3%) fully non -amortizing loan with a term of thirty (30) years. Payment of principal and accrued interest at sale or rental of the property. 5. Applicants with incomes at eighty percent (80%) or higher but less or equal to one hundred and twenty percent (120%) of median income will receive a three percent (3%) fully amortizing loan with a term of 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 thirty (30) years. If the property is rented, leased or sold during the thirty (30) year period, then the loan and accrued interest 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. - 14 - In the case of sale or transfer of the unit, the City will share in the gain realized by the borrower. i. 0 to 3 years — 100% of the City's pro rata share of the gain generated. ii. 3.30 years — On the 3rd year, City receives 85% of the City's pro rata share of the gain generated and borrower receives 15%. Thereafter, the borrower receives additional 5% of the City's pro rata share per year reducing the City's share by the same percentage The above gain sharing proposal will terminate in foreclosure: however, the city will require lenders to provide us a right of first refusal to purchase the loan at a negotiated price. 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 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 one hundred and twenty percent (120%) 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 $4-20i000. $150.000 -15- The following costs associated with this strategy are 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. 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; -16- • The cost per family to administer the program D. Name of the Strategy: SHIP Homebuyers 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 low, 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: 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 more than $85,225.00 or the amount needed to meet credit underwriting. Number of Bedrooms 0 1 2 3 4 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 Financing Program will be provided to eligible homeowners in the form of a zero to three percent, deferred payment, - twenty thirty (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 and accrued interest is required if the property receiving the financial assistance is rented, transferred or sold during the life of the loan. The principal will be forgiven at maturity. Homeowners that qualify and receive assistance -17- 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 case of sale or transfer of the unit. the City will share in the gain realized by the borrower according to the following schedule: a. 0 to 3 years — 100% of the City's pro rata share of the gain generated. b. 3 — 30 years — On the 3"' year, City receives 85% of the City's pro rata share of the gain generated and borrower receives 15%. Thereafter, the borrower receives additional 5% of the City's prorate share per year reducing the City's share by the same percentage. The above gain sharing proposal will terminate in foreclosure; however, the city will require lenders to provide us a right of first refusal to purchase the loan at a negotiated price. 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: • 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. -18- • 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 are not eligible for funding under this strategy. 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 50 lc(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 E. Name of the Strategy: SHIP Homeownership Development Program a. Summary of the Strategy: -19- 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 for -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 forty thousand dollars ($30,000-$40,000) 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 (O% 6%) pereent and tThero 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. In the case of a Developer default (incomplete project) full payment of construction loan and accrued default interest at the maximum rate allowed by law. 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. f. 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. F. Name of the Strategy: SHIP Rental Housing Development Program a. Summary of the Strategy: 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. b. Fiscal Years Covered: -21- The strategy identifies in this section will cover the following fiscal years: 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 forty thousand dollars ($40,000) per unit. f. 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 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 occupied by income eligible renters, 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 been occupied. Recipients of funding under this strategy will be required to make the property affordable for a period of not less than twenty years (20) years. • 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 (2005-2009). • Ability to demonstrate project will be affordable to low and moderate income households. f, Recipient Selection Criteria: - 22 - 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 (2004 — 2009) and SHIP Local Housing Assistance Plan (2004 — 2007). 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. Only multi -family housing will be eligible under this strategy. 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: Those hard costs which are typical and customarily treated as construction costs by institutional lenders; - 23 - • Construction costs, such as architectural, engineering studies and appraisals, if directly related to housing. construction: • Infrastructure expenses typically paid by the developer; • Payment of impact and permitting fees. • Costs associated with land acquisition and site development. 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 criteria enumerated above. E. Sponsor Selection Criteria: The City of Miami intends to administer this program III. LHAP INCENTIVE STRATEGIES Section 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, 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 -24- 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 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 -25- 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 low and moderate income. This incentive is functioning as intended. F. 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 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. - 26 - IV. EXHIBITS: A. Administrative Budget for each fiscal year covered in the Plan. Exhibit A. B. Timeline for Encumberance and Expenditure: Chapter 67-37.005(6)(d) and (/) 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: Chapter 67-37.005(7), F.A.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: Section 420.9072(3)(a), F.S. N/A H. Interlocal Agreement: Section 420.9072, F.S, N/A - 27 -