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Home My WebLink AboutSubmittal-Miami-Dade County MemoDate: March 4, 2008 To: Honorable Chairman Br and Members, Board of From: George M. Burgess County Manager Subject: SHIP and Surtax Pro Forma rreiro Memorandum MIA"COUNTYhOADE Agenda Item No. 12(B)4 This is a follow-up report to the discussionheld at the September 12, 2007 meeting of the Economic Development and Human Services (EDHS) Committee, which provides a revised recommendation for the allocation of State Housing Initiative Partnership (SHIP) funds and Documentary Stamp Surtax (Surtax) funds towards housing activities in a manner that ensures a range of affordable housing opportunities, both homeownership and rental in the following fashion. Exhibit A to this report is an Affordable Housing Pro Forma that shows the County's multi -year forecast of Surtax (excluding Metro -Miami Action Plan's portion) and SHIP revenues and expenditures by activity. Exhibit B to this report includes the revised SHIP and Surtax funding recommendations, as well as for other funding sources, across four different housing strategies. Summary of Recommended Surtax and SHIP Housing Activities It is recommended that 50 percent of the combined available SHIP and Surtax revenue ($49.554 million), excluding administrative costs and prior funding commitments, shall be allocated" towards rental housing activities. The remaining 50 percent will go to homeownership activities such as: 1) homebuyer assistance towards the purchase of units in which the County has invested land or development funds, or 2). an existing waitlist for . owner -occupied rehabilitation loans. Exhibit A to this report shows the revised recommended expenditures in these categories. With respect to FY 2007-08, a total of $49.554 million in SHIP ($17.99 million). and Surtax ($31.564 million) revenues, excluding administrative costs and prior housing development commitments, is available for new • housing activities. Specifically, these funds will be allocated as follows: Rental Housing Activities Isis recommended that 50 percent of the combined total, or $24.777 million ($5.397 million in SHIP and ��+� „ia4lp►,1e fn ntai houama dd evelooment b 4 I $19.38 million in Surtax revenues) be �t p ..,.,•,,, t1� �Xh nw�r construction and rehabilitatiop. Funds allocated towards rental housing activities will be administered by • Office of Community and Economic Development (OCED) and will be awarded to housing developers through competitive processes. Homeownership Activities The remaining124.777 million is recommended for homeownership activities and would be allocated as follows: A. $8.32 million in homebuver morto de assistance for approximately 104 housing units under the Infill , to Housing Program., B. $8 million in homebuyer mortgage assistance towards the purchase of approximately 100 housing units developed with County assistance under the SHIP, Sort x gar GI r• •• s; Co. C. $866,421 in homebuyer education and counseling it •'•• ""• _� y$ •iv!e nce activities above; FUBLIC RECORD FOR TEM3ON VV-0030 i� - ..�t3L•(�� a,, - .a� Honorable Chairman Bruno A. Barreiro and Members, Board of County Commissioners Page 2 D. $4.89 million for approximately 163 owner -occupied rehabilitation loans, with an emphasis on elderly and disabled persons in accordance with Resolution R-1036-06 sponsored 'by Commissioner Joe A. Martinez; and E. $ .7 million towards develo ment loan for 178 home r hi it as a roved by the BCC throw h the F Ian. The $16.32 million (A and B immediately above) in homebuyer assistance will be targeted as follows: • 15 percent to very low income homebuyers (50 percent of area median income (AMI) or less); • 60 percent to low income homebuyers (80 percent of AMI or Tess); and • 25 percent to moderate income homebuyers (up to 140 percent of AMI). In the event that staff is unable to meet targets based upon the above -mentioned formula due to lack of income -qualifying households, then additional loans to eligible households in the remaining incnmi ttrapt ranges will be au I-t mebuyer mortgage assistance and_ owner -occupied rehabilitation loans will be administered b the Hni king Finance Authority (HFA). Homebuyer education and counse rng will be conducted by non-profit organizations under contract with OCED. OCED will also monitor the $1.5 million for the development of homeownership units. SHIP. Allocation The FY 2007-08 Adopted Budget includes a total of $20.214 million in SHIP funds, which is comprised of new revenues, carryover, repayments and interest. income. However, only $17.99 million is available for new housing activities once prior housing development commitments ($1.3 million) and administrative costs ($924,000) are taken into account. In accordance with Section 420.9075(5)(b) Florida Statutes, at least 65percent of all available SHIP fun must versus rental)d and at least 75 percent of all availahtP, funds must be directed towards construction, rehabilitation, or emergency repair of affordable, eligible housing. Mortgage assistance toward the purchase of newly developed units through new construction or rehabilitation counts towards this 75 percent threshold requirement. SHIP funds may benefit households up to 120 percent of AMI; however, 30 percent of all SHIP funds must benefit very low-income persons and at least an additional 30 percent of the SHIP funds must benefit low income persons. The $17.99 million in SHIP, which is part of the $49.554 million total available for all housing activities, is recommended for allocation as follows: • $5.397 million, or 30 percent, for development of affordable rental housing, which must be directed toward the production of units affordable to very low income households; • $12.593 million for homeownership activities, of which 1) $8.32 million is for mortgage assistance towards the purchase of units developed under the Infill Housing Program; 2) $3.907 million for mortgage assistance towards the purchase of units developed with County funds administered by OCED; and 3) $366,421 for homebuyer counseling and education in connection with County -provided mortgage assistance. Honorable Chairman Bruno A. Barreiro and Members, Board of County Commissioners. Page-3 Documentary Stamp Surtax Allocation FY 2007-08 Surtax funds (including new revenues, carryover, repayments, interest and miscellaneous income) total $131.7 million. However, this number does not include MMAP's projection of $4.271 million, which includes their eight percent share of new revenues, carryover and repayments. Based on the latest Affordable Housing Funding Pro Forma, the amount in FY 2007-08 for allocation to new housing activities is $31.564 million after subtracting prior housing Surtax funding commitments and administrative costs. Although Surtax funds may benefit households up to 140 percent of median income, at least 50 percent of Surtax revenue must benefit low income households. The revised recommended Surtax allocations by housing activity are as follows: • $19.38 million toward development of affordable rental housing; • $1.5 million for the development of affordable homeownership units housing as approved by the BCC through the FY 2008 Action Plan; • $4.093 million for homebuyer mortgage assistance towards the purchase of units developed with the assistance of funds administered by OCED; • $6.091 million for owner -occupied rehabilitation loans; and • $500,000 for homebuyer education and counseling in connection with mortgage assistance provided by the County. In FY 2007-08, it is anticipated that MMAP's $4.271 million (which includes their eight percent share of new revenues, carryover, and repayments) will be used for homeownership activities. Funding decisions on the use of MMAP's Surtax funds are made by the MMAP Trust Board; therefore, MMAP's revenues and expenditures are not included in Exhibit B. Additional Housing Activities Pursuant to Resolution R-1222-07, the Board of County Commissioners approved the use of HOME, HOME CHDO, Community Development Block Grant (CDBG), Housing Development Action Grant (HODAG), Rental Rehabilitation and Emergency Shelter Funds in FY 2007-2008 towards housing activities. The allocation of these funds by housing activity can also be found in Exhibit B. Attachments Cy' hi. W. urry S:.� for Advisor to the County Manager 3 Surtax Revenues: Carryover New Surtax Repayments Interest income Miscellaneous Income MOHA Repayment TOTAL. REVENUES Expenditures: Administration Prior Development Loans Exhibit A - Page 1 Projection Estimate Estimate Estimate FY 2008 FY 2009 FY 2010 FY 2011 83,500,000 30,000,000 14,500,000 3,000,000 700,000 0 30,000,000 15,000,000 1,128,000 700,000 0 30,000,000 15,000,000 500,000 500,000 0 30,000,000 15,000,000 500,000 300,000 131,700 000 46 828 000 46 000,000 45 800,000 5,076,000 5,425,000 5,785,000 6,160, 000 95, 060,000 18,212, 000 19,105,000 17,623,000 Net Revenue 31,564,000 23,191,000 21,110,000 ' 22,017,000 Rental 19,380,040 61% 14,035,048 61% 12,906,586 61% 13,277,507 60% Homeownership Mortgage Assistance: Rehab Loans • Homeownership Counseling OCED Funded Projects Total Mortgage Assistance New Development Loans 4,891,000 500,000 4,092,960 9.483,960 2,700,000 2,500,000 500,000 6,155,952 9,155,952 2,500,000 500,000 5,203 414 8,203,414 2,500,000 500,000 5,739,493 8,739,493 Total Homeownership 12,183,960 39% 9,155,952 39% 8,203,414 39% 8,739,493 40% Total Homeownership and Rental TOTAL EXPENDITURES Revenues minus Expenditures 31, 564, 000 23,191,000 21,110,000 22,017,000 131,700,000 48,828,000 46,000,000 45,800,000 0 0 0 v SHIP Split Revenues: Exhibit A - Page 2 Projection Estimate Estimate Estimate FY 2008 FY 2009 FY 2010 FY 2011 Carryover 6,626,000 0 0 0 New SHIP 8,888,000 8,443,600 8,021.420 7,620.349 Repayments 4.000,000 4,000,000 4,000,000 4,000,000 Interest Income 700,000 630.000 567.000 510,300 TOTAL REVENUES 20,214.000 13,073,600 Expenditures: Administration Prior Development Loans 12,588,420 12,130,649 923,800 875,860 830,492 787,550 1,300.000 Net Revenue 17,990,200 12,197,740 11,757,928 11,343,099 Rental 5,397,060 30% 3,659.322 30% 3,527,378 30% 3,402,930 30% Homeownership Mortgage Assistance: Intl!! OCED Funded Projects Homeownership Counseling Total Mortgage Assistance New Development Loans 8,320.000 3.906,719 366,421 12,593,140 8,000.000 172,418 366,000 8,538,418 8,000,000 0 230,550 8,230,550 0 0 7,574,169 366.000 7,940,169 Total Homeownersh 12,593,140 70% 8,538,418 70% 8,230,550 70% 7,940,169 70% TOTAL EXPENDITURES 20,214,000 13,073,600 12,588,420 12,130,649 Revenues minus Expenditures 0 0 0 0 I AVAILABLE PROGRAM FUNDS FUNDING ALLOCATIONS BY HOUSING STRATEGY AND ACTIVITY FISCAL PERIOD FY'07= 08 EXHIBIT B MMAP SURTAX SURTAX SHIP HOME CDBG HODAG HOME-CHDO RENTAL REHAB ESG HOMELESS ' FaB& TOTAL. AVAILABLE 1,720,000 531,561,000 $17,990,200 $4,205,000 $1,148,435 $2,642,739 $1,000,000 $1,296,000 $808,000 $17,000 S82,390,374 Housing Strategy Program/Activity ALLOCATION OF FUNDS TOTAL ALLOCATION 1 Hornebuysr Assistance b Very Lae, Low and Modems income HouesAdde Monpspe Assistance Reserved for MINI Hew.. S0 S8,320,000 SO $0 SO S0 SO S0 S0 $8,320,000 610ellisbe Assistance Reserved for OCEO. fundsdWets S4,092,960 $3,906,719 S1,195,000 S0 $0 SO S0 SO SO S9,194,679• Nonnebuyer Education & Cou s.$ng $500,000 5366,421 S0 SO S0 S0 $0 $0 S0 $886,421 MAP Done, and dosing Asslstancs 1,720,000 SO SO SO SO S0 _ SO S0 SO SO S 1,720.000 2 &menu Additional AeadabM Housing Stook ssr Hon.00nereNp NomeownenNp Housing Osvelopnsnl S2,700.000 80 52,334.000 $1,148,435 50 $1,000,000 $0 50 SO $7,182,435 Galaab AddMontl Afforda6N Houser. Stock roe Rent McMfaMy Ronal Rowing Orvelepm.M - Neon Castiuc0on and ReMWYtaeon $19,380,040 S5,397,060 $500,000 S0 $2,392,739 S0 $1,295,000 SO "' $28,964,839 Proy.gBw.A Rental Auletanes S176,000 SO S250,000 S0 S0 SO $0 $426,000 3 Pees.M E.1seng Affordable Housing Stock Owner-00eupled ReMl:1010n Loans 34,691,000 SO SO SO SO S0 SO SO SO $4,891,000 4 Pns.rve Nousleq Starlit, Through Housing Csvdrsl-Housmq tooto0 SO SO SO SO S0 SO S0 $0 $17.000 S17,000 Hemsses Pnvenbn federal Eneegsney SMIW Gran Op.rad 1g Support So SO SO SO SO S0 SO $808,000 SO S808,000 & IneN.nea., TOTAL $1,720,000 531,564,000 $17,990,200 S4,205,000 $1,148,435 S2,842,739 $1,000,000 S1,295,000 $808,000 817,000 $62,390,374 Funding of Housing Strategies 1 Through 3 Surtax t SNIP (Exc. MMAPI Homeownership Activity Rental Housing Activity S24,777,100 S24,777,100 TOTAL $49,554,200 Percentage 50% 50% A8 Funds 832,174,535 $29,390,839 561,565,374 Percentage 52% 48% t - Homeless Food and Beverage Tax revenue also funds homeless prevention activities Including emergency rental and mortgage assistance as wee as other Contnum of Care housing and services such as temporary housing, residential treatment and transitional housing or services. Mute -family rental housing development above indudes units set aside for homeless/formerly homeless. 2-OCED's 517,000 match for Housing Central will be iunduded as part of the departments administrative costs