HomeMy WebLinkAboutExhibit 14XI1. SHIP
State Housing Initiatives Partnership Program:
Local Housing Assistance
State Housing Initiatives Partnership program (SHIP) is the first permanently funded state housing program
in the nation to provide funds directly to local governments to increase affordable housing opportunities on
a noncompetitive basis. The funds are used to produce and preserve affble homeownership and
multifamily housing for very low, low and moderate income familie • +liars may be used to fund
emergency repairs, new construction, rehabilitation, down payme' • closing cost assistance, impact
fees, construction and gap financing, mortgage buy -downs, ac• rt " property for affordable housing,
matching dollars for federal housing grants and programs, a omen ip counseling.
The State of Florida SHIP program is a result of the • ' - adowski A ` : ble Housing Act. The
centerpiece of this legislation is the State Housing ' nership Act which provi dedicated revenue
source to state and local governments to facilita reation • •ubliclprivate pa s whose purpose
is to preserve the existing housing stock and sti ul . " - prod of new afforda housing. The City
of Miami Local Housing Assistance Plan describes ho icip: ity will use S ' IP funds to meet the
affordable housing needs of the community. The followin.. " vides an overview of the items found in the
Local Housing Assistance Plan for 2(1007.
Program Description
The City of Miami wi
development activi
housing units in
programs Iiste• on
SHIP
■ S
• SHIP allocatir ndertake ous homeownership and rental housing
o enhance an acilitate th- development, purchase and maintenance of
ousing strate_ • and activities will be carried out through the SHIP
es
ity. The
ble bet
Fami y Rehabilitation Program
ome Repair Assistance Program
e Family Replacement Housing Program
er Assistance
Homebuyers Financing Program
New construction
• SHIP Homeownership Development Program
■ SHIP Rental Housing Development Program
*The Annual Performance Measures include units funded by HOME and CDBG.
Annual
Performance
Mcash Fes
50 housing units*
5 housing units*
50 housing units*
95 housing units*
250 housing units*
Income Category to be Served
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, as defined in Section
420.907, Florida Statutes as follows:
2006-2007 Action Plan
63
• 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.
Support Services and Counseling
Chapter 67-37.005(5)(g),F.A.C.
Applicants applying for SH1P funding receive support services
These services are in the form of counseling and or referral t
may need. The City of Miami will work with members of th
services to those residents/homeowners participating in
include, but are not limited to:
• Assistance/referral to Legal Services
problems or outstanding liens that would pr
• Referrals to other agencies and programs to•app
Inc. to
the'
• Assist homeowners participa ' the Single Fami
Housing Replacement Progra Gut the rehabili
from the time of application unt ro - - +letion.
• Referrals to consumer credit clinic
local lenders , -+rofit organi
the type of assistance requested.
s that provide services they
ousing -rship to provide support
s housin rams. The services
• Referrals
for e
• Referrals to
ing.
Purch
420.9075(
gencie
ntandj
rice Limi
.S. and
The sales price
purchase price in
price may be that
prior to the year in which the award occurs.
The purchase price limit for: New Homes:
Existing Homes: $236,835.00
ded by the S
raining.
a. encies fo
meowners who h . le
ipation in the ogram.
that do not qualify for assistance.
bilitation and Single Family
onstruction process,
eling programs provided by
h Florida Employment and Training Consortium
it housing assistance, information and
on how to apply for Property Tax Exemption, specifically for
for cou
ing and guidance on other legal matters.
apter67-37.007(6)F.A. C.
. f new or existing eligible housing may not exceed 90% of the median area
atistical area in which the eligible housing is located. Such average area purchase
lculated for any 12-month period beginning not earlier than the fourth calendar year
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
2006-2007 Action Plan
64
payments including taxes and insurance do not exceed 30% 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 do not exceed those rental limits adjusted for bedroom size.
Monitoring and First Right of Refusal
Section 420.9075(3)(e)and (4) (f), 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, aoa or r grant
in the
original
eof
amount of $3,000 or less shall not be subject to these annual monitor' u
eligibility. requirements.
Eligible sponsors that offer rental housing for sale before 15
under this program must give a first right of refusal to eli
current market value for continued occupancy by elig
Leveraging
Chapter 67-3 7.007(1)(b)(c), F.A.C. and Subsection
The City of Miami intends to use HOME and CDBG fun
thereby reducing the cost of housing. ' . • ddition, the City p
local match to leverage additional HO <,; ocal Housing C
Corporation.
ve remaining mortgages funded
e nprofit + :: 'nations for purchase at the
City of Miami SHIP Programs
The following descri + rams the Ci iami wil dertake to meet the affordable housing
needs of its very 1 + ow'a derate-incom esidents using the State Housing Initiatives Partnership
Act (SHIP) fun +rding w he requiremen of Section 420.907 of the Florida Statutes and Chapter
67-37 of the F orid. inistr e Code.
d (1)(b3, and (c), F.S.
m U.S. HUD to leverage SHIP funds,
use SHIP funds for developers to use as
from Florida Housing Finance
assis
propetyl
loan assi
electrical wor
description of th
le Family Reh.=
o very low, to
ated within
s an elig'
eet
am
Rehab and Code Violation Elimination Progra 75 .. ,;;
..,.............
ation a Code Violation Elimination Program will provide rehabilitation
nd m derate income residents who live in single family owner -occupied
corporate limits of the City of Miami. The City will provide deferred payment
homeowner to complete needed repairs such as roofing, plumbing and
decent, safe and sanitary standard conditions after rehabilitation. Below is a
requirements:
1. Income Category to be Served: This strategy will serve very low, low and moderate income
families as stipulated in FAC Chapter 67-37.
2. Maximum Award: Residents meeting the selection criteria will be awarded a maximum of
$30,000 to complete all needed repairs to bring a property to a safe and decent standard.
However, in cases where the amount needed to bring the property to code is higher than $30,000, a
higher amount may be provided upon approval by the City Manager or the Director of the
Department of Community Development acting as his/her designee.
2006-2007 Action Plan
65
3. Recapture Provisions: 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 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 homeo
assume the obligation based on the origin
homeowner as long as the heirs qualify
provided to the homeowner as long
household size, remain owner occ
property for the remaining to
purchaser who does not qualify bas
required to repay the balance of the out
of Miami.
4. Selection Criteria: All recipients
in the Florid Florida Adm
Plan. Eli hou " eludes singl
only. ,r',,i:, actured ing and mobi
The p op- o be a• .3-ted must be ow
the City of
selection
statutory re
will
a, sub
ents.
Applicants
re ineligibl
will r
a
requ
is of
mort
on the
irs qualify
e property an
e and note.
visions of s strategy will be
ng loan amount provided by the City
the heirs to the property can
conditions provided to the
al terms and conditions
d on age, income and
not sell or rent the
or prospective
the eligibility requirements as stipulated
ative Cod e SHIP Ordinance, Resolution and this
mily home , owner -occupied town houses or twin homes
omes are not eligible for assistance under this program.
ccupied and located within the corporate limits of
cessed on . rst-come-first serve basis from all applicants meeting the
funding availability and in such a manner as to comply with the
hou -hold income above (120%) of the median area income limit
r SHIP assistance under this strategy.
ew actual performance data on a continuous basis to ensure that
are made as necessary to remain in compliance with funding
ents.
Other se ection criteria will include the following:
■ The property shall consist of one (1) owner -occupied residential unit.
■ Preference will be given to eligible handicapped disabled and elderly (62 years or
older) households and homeowners.
■ The property must be located in the City of Miami.
■ The appraised value of the home may not exceed the maximum purchase price limits
(value) allowed under the SHIP Program.
■ The property must require needed repairs such as roofing, plumbing and electrical
work to meet the decent, safe and sanitary standard conditions after rehabilitation.
2006-2007 Action Plan
66
• The applicant may not be delinquent on any debt owed to the City of Miami or
Miami -Dade County.
Ship Emergency Home Repair Assistance Program
The Ship Emergency Horne 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 threaten the safety and health of th = + ccupants of the home.
The following terms describe the requirements of the program.
1. Income Category to be Served: Available SHIP f
occupied by income eligible persons or househol
under Chapter 67-37 of the Florida Administr
very low, low and moderate income.
2. Maximum Award: The maximum a
3, Recapture Provisions: Financial assistance to
Repair Program will be prov'•ed to eligible home
deferred payment forgivable, ten (10) year loa
requirements associated with t 3 here is no am
full principal balance of the loan
rented, leased or sold during the l
must execute a . rtgage and Note be r
Clerk of the rt for compl e with the
r this st
In the
obligation
homeowner
pros
required
f death
as t
sell o
urcha
Selection Crit
ulated in the
is Plan, E
es onl
tw
this p
corpora
re
of the
at
sha served for housing units
compl ' the overall requirements
, eligible . s or households will be
gy will be $15,
ided under the SHIP Emergency Home
s in the form of a three (3%) percent,
re are no monthly payment
of this loan. Repayment of the
he prope eiving the financial assistance is
ers that qualify and receive assistance
in the records of Miami -Dade County
apture provisions for the program.
1 eligible hom wner(s), the heirs to the property can assume the
they qualify bas the original terms and conditions provided to the
e and , • usehold size) remain owner occupants of the property
pr. r;`.,, " e remaining term of the mortgage and note. An heir or
does not qualify based on the provisions of this strategy will be
e o the outstanding loan amount provided by the City of Miami.
All r= pients of assistance must meet the eligibility requirements as
rida Statutes, Florida Administrative Code, the SHIP Ordinance, Resolution
ble housing includes single family homes, owner -occupied town houses or
anufactured housing and mobile homes are not eligible for assistance under
e properties to be assisted must be owner -occupied and located within the
is 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:
2006-2007 Action Plan
67
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 max
allowed under the SHIP Program.
• The property must require needed repairs such as r
meet the decent, safe and sanitary standard to i
potentially hazardous conditions.
• The maximum amount of financial assis
lesser of (1) the actual cost of rehabil
• The applicant may not be delinqu
Single Family Re
The Single Fam
housing units
SHIP and HOME assi
Und
h
The S
dilapidate
This strategy
appropriate solu
with a newly cons
requirements.
tion will be
mic feasibility
i Building Dep
sales price (value)
electrical and plumbing to
tify hazardous and
e s e provided m
on or (2) $15,000.
debt ; ; ed to the City o
\i"),
Iacement Housin ` Program.,
1.
ousing Progr
repairs or poo
Rehabil'
exceed the
is designed to address substandard and dilapidated
ing conditions cannot be addressed through the
ion Programs.
mily resi ' - lal properties which are beyond repair and unsafe for human
e. The Single Family Housing Inspection Unit will determine the
tation and soundness of the structure, in consultation with the City
to defray the cost of temporary relocation expenses, demolition of the
d hard construction costs associated with the reconstruction of the new home.
primarily to assist existing owners of single family homes where the most
eir housing problem would be to demolish the existing structure and replace it
cted housing unit on the exiting lot. Below is a description of the program
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.
2. Recapture Provisions: 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
income levels.
68
2006-2007 Action Plan
The following are the repayment schedules based on income:
▪ Applicants with incomes less than 50% of median income will receive a zero percent
(0%) amortizing loan with a term of thirty (30) years. Payment of principal will
begin six (6) months from the issuance of a certificate of completion and occupancy
of the home,
■ Applicants with incomes at fifty percent (50%) or higher but less than sixty percent
(60%) of median income will receive a one percent (1%) fully amortizing loan with a
term of 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.
• Applicants with incomes at sixty percent (60%) or higher
percent (70%) of median income will receive a two (2°
amortizing loan with a term of thirty (30) years. Pa
(6) months from the issuance of a certificate of c
home.
• Applicants with incomes at seventy (70%
and twenty (120%) of median income
amortizing loan with a term thirty (3
months from the issuance of a ce
.h
receiv-
ears. Pa
f compl
Persons or households that qualify and receiv
Payment Loan Mortgage and Note that will be
Circuit Court for complianc the recapture pro
remain against the property fo + of the loan..
If the property is rented, leased o
become due and payable to the Ci
r to the prope
ible, remain
term of the
homeowner(s
the heirs a
prope
3. Maximum
o. 10,000 fo
asso
the rem
4. Selection
provided in th
esolution, the
es that have
g, to be
man
ho
The pr
located
ts meeting t
with the
Tess than seventy
c (2%) fully
ts of the loan will begin six
nd occupancy of the
but less ` x: al
a three perce
ents of the loa
n and occupanc
to one hundred
) fully
six (6)
e home.
ass tance must e cute a Deferred
'th the Miami -Dade County Clerk of the
s for the program. This mortgage will
thirty (3 ear period, then the loan will
In the event of death of all eligible
assume obligation of the original owner as long as
ner-occup s of the property and do not sell or rent the
rtgage and note.
election criteria will be awarded a maximum
enses, demolition of the dilapidated structure,
truction of the new home.
'a: Al s of financial assistance must meet the eligibility requirements as
rida St• :e -s, Florida Administrative Code, the SHIP Program Ordinance,
and is Strategy. Eligible housing includes single family owner -occupied
n determined by the housing inspector, in consultation with the Department of
and repair, unsafe for human habilitation and suitable for demolition. Mobile
tured homes will not be a type of replacement home offered under this strategy.
o be assisted must be the primary residence of the owner and the property must be
n 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 (120%) percent 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.
2006-2007 Action Plan
69
• 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 $110,000.
The following costs associated with this strategy are eligible:
• Hard costs, which are typical and customarily viewed as construction cost(s) by
institutional lenders;
■ Payment of impact fees;
■ Infrastructure fees typically paid by the developer;
• Construction soft cost such as architectural and engineerit es, appraisals, if
directly related to housing construction; and
• Temporary relocation cost associated with the recn of the home.
SHIP Homebuyers Financing Program
The City of Miami through the Homebuyers Fi
and/or second mortgage financing assistance to eligt
homebuyers to purchase a newly constructed or existin
The strategy will be available to assist very low, low and
family home, town home or condom] ' The following de
SHIP Homebuyers Financing Program.
1. Income Category to be Served: is str• serve low, low and moderate income
families in proportions as stipulate
2. Maximu
based
more
loa
requir
life of th
Note tha
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 as long as the they qualify based on the original terms and conditions provided to the
homeowner (including 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. 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.
4. Selection Criteria: Applications will be processed from an 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.
dents meetin
edrooms as sh
the amount nee
0
and FAC Chapter 67-37.
selection criteria will be awarded a maximum amount
n in the chart below. However, the amount cannot be
o meet credit underwriting.
1
$42,980 $49,557
ill provide do nt, closing cost
ouseholds wh e first time
ial properties within the City of Miami.
to income residents to purchase a single
the terms that govern the use of the
2 3 4
$59,766 $76,501 $85,225
ecapture Pro
am will be
wenty (20
re is
ns: Filiancial assistance to be provided under the SHIP Homebuyer Financing
vided to eligible homeowners in the form of a zero percent, deferred payment,
ear loan. There are no monthly payment requirements associated with this
amortization of this loan. Repayment of the full principal balance of the loan is
operty receiving the financial assistance is rented, transferred or sold during the
Homeowners that qualify and receive assistance must execute a Mortgage and
ill be recorded in the records of Miami -Dade County Clerk of the Circuit Court for
70
2006-2007 Action Plan
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.
■ 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 hom e not e igible for funding
under this strategy.
SHIP Homeownership Development Pros ram
The SHIP Homeownership Program is designee ote an
opportunities for very low, low and moderate incom lies
reserved for this strategy will be used to assist not-for-p
SHIP funds reserved for this strategy will be utilized by th
associated with site development, har
with the development of affordable hou
City. The following describes the progra
Program.
1. Income Cat
families i
2. Maxi u
thirty thousa
be prove
the econom
The assistance
ro — six perce
g the const
the hous'
ati
a
will
project.
completi
eligible
soft construction
by for -profit a
is for the
e Served: Th
stipulated i
laments meet
er unit.
eate affordable nership
dividuals. SHI rogram funds
for profit housing evelopers or the City.
of Miami to finance the project cost
ing and permanent financing associated
-f+ -profit housing developers or the
meownership Development
ategy will e very low, low and moderate income
e SHIP St• utes and FAC Chapter 67-37.
e selection criteria will be awarded a maximum of
rovi The financ . assistance provided under this strategy to the developer may
low - st rate loan or in the form of a grant which will be determined based on
ibility .rdability of the housing project(s) to be assisted with SHIP funds.
vided u - r this strategy will be provided in the form of a construction loan at
- : /o) and there will be no monthly payments associated with the loan
.on phase. Once the developer has successfully completed the construction
units are purchased and occupied by eligible homebuyers, the City of Miami
e developer's obligation to the City in connection with the financing of the
vial assistance made to the developer as a grant will also be satisfied upon
of the construction phase and all the housing units must be marketed and occupied by
omebuyers.
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 chapter.
4. 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.
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2006-2007 Action Plan
Any SKIP Program allocation including the term of the loan will be recommended by City staff to
the City's Housing and Commercial Loan Committee for approvalldisapproval 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.
SHIP Activities
Below is a list of the activities that the City of Mia
ill undertake in the uti of SHIP funds:
Strategies to Preserve Affordable Rental Hou
1. Activity: New Construction of
Consolidated Plan Reference Cod
Strategy: Increase the supply of affor
residents through struction.
Targeted Ou
Source:
Stra
St
elimi
Targeted
Source: SHI
ctivity: Singl
solidated Plan
: Provide re
of code
d SHIP
Hy Re
erenc
the supply
ily Rental
able to very low and low income
ffordable housing rental stock
owners — Homeowner Retention
Code Violation Elimination Assistance
ode: 1 HA (a)
assistance to homeowners for deferred maintenance, home repairs and
ations.
Improve the quality of existing owner occupied housing through rehab assistance.
d CDBG
3. Activity: Replacement of Unsafe Housing
Consolidated Plan Reference Code: 1 HA (b)
Strategy: Provide assistance to homeowners to replace unsafe housing structures.
Targeted Outcome: Improve the quality of life of existing homeowners by reducing the number of
unsafe structures that are owner occupied.
Source: SHIP and HOME
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2006-2007 Action Plan
Strategies to Increase Homeownership
4. Activity: New Construction of Homeownership Units
Consolidated Plan Reference Code: 1 HO (a)
Strategy: Increase the supply of affordable homeownership units through new construction.
Targeted Outcome: Provide greater opportunities for low to moderate income families to achieve
homeownership and improve their housing conditions.
Source: SHIP and HOME
5. Activity: Homeownership Financing
Consolidated Plan Reference Code: 1 HO (c)
Strategy: Assist low to moderate income families • }, • h• ' eowner • providing financing
assistance (i.e. down payment, closing cost, and ' end irtgages).
Targeted Outcome : increase the number o -EF>? Beholds e to achieve ho hip in the Model
Blocks and the NDZs through financing as
Source: HOME, SHIP and ADDI
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2006-2007 Action Plan