HomeMy WebLinkAboutExhibitCITY OF MIAMI
SHIP LOCAL HOUSING ASSISTANCE PLAN (LHAP)
2022-2023, 2023-2024 and 2024-2025
Table of Contents
Description
Page #
Section I, Program Details
3
Section II, Housing Strategies
A. Emergency Home Repair Assistance Program
6
B. Single Family Rehabilitation Assistance Program
7
C. Single Family Replacement Home Program
9
D. Home Buyer Financing Program
10
E. Disaster Relief Program
12
F. Homeownership Development Program
13
G. Rental Housing Development Program
16
Section III, Incentive Strategies
A. Expedited Permitting
17
B. Ongoing Review Process
18
C. Other Incentive Strategies Adopted
18
Exhibits
18
A. Administrative Budget for each fiscal year covered in the Plan
B. Timeline for Estimated Encumbrance and Expenditure
C. Housing Delivery Goals Chart (HDGC) For Each Fiscal Year
Covered in the plan
D. Signed LHAP Certification
E. Signed, dated, witnessed or attested adopting resolution
F. Ordinance: (If changed from the original creating ordinance)
G. Interlocal Agreement
H. Expediting Permitting Policy
2
I. Program Details:
A. LG(s)
Name of Local Government
City of Miami
Does this LHAP contain an interlocal agreement?
No
If yes, name of other local government(s)
B. Purpose of the program:
• To meet the housing needs of the very low, low and moderate -income households;
• To expand production of and preserve affordable housing; and
• To further the housing element of the local government comprehensive plan specific to affordable housing.
C. Fiscal years covered by the Plan: 2022-2023, 2023-2024 and 2024-2025
D. Governance: The SHIP Program is established in accordance with Section 420.907-9079, Florida Statutes and
Chapter 67-37, Florida Administrative Code. Cities and Counties must be in compliance with these applicable
statutes, rules and any additional requirements as established through the Legislative process.
E. Local Housing Partnership: The SHIP Program encourages building active partnerships between government,
lending institutions, builders and developers, not -for -profit and community -based housing providers and
service organizations, providers of professional services related to affordable housing, advocates for low-
income persons, real estate professionals, persons or entities that can provide housing or support services
and lead agencies of the local continuums of care. Such partnerships include the following community
housing development organizations and community development corporations:
• Allapattah Business Development Authority, Inc.
• East Little Havana Community Development Corporation
• Habitat for Humanity of Greater Miami, Inc.
• Little Haiti Housing Association, Inc.
• Neighborhood Housing Services
F. Leveraging: The Plan is intended to increase the availability of affordable residential units by combining local
resources and cost saving measures into a local housing partnership and using public and private funds to
reduce the cost of housing. SHIP funds may be leveraged with or used to supplement other Florida Housing
Finance Corporation programs and to provide local match to obtain federal housing grants or programs.
G. Public Input: Public input was solicited through face to face meetings with housing providers, social service
providers and local lenders and neighborhood associations. Public input was solicited through the local
newspaper in the advertising of the Local Housing Assistance Plan and the Notice of Funding Availability.
H. Advertising and Outreach: SHIP funding availability shall be advertised in a newspaper of general circulation
and periodicals serving ethnic and diverse neighborhoods, at least 30 days before the beginning of the
application period. If no funding is available due to a waiting list, no notice of funding availability is required.
I. Waiting List/Priorities: A waiting list will be established when there are eligible applicants for strategies that
no longer have funding available. Those households on the waiting list will be notified of their status.
Applicants will be maintained in an order that is consistent with the time applications were submitted as well
3
as any established funding priorities as described in this plan.
The following priorities for funding described/listed here apply to all strategies unless otherwise stated:
As defined in 420.0004 of the Florida Statutes.
J. Discrimination: In accordance with the provisions of ss.760.20-760.37, it is unlawful to discriminate on the
basis of race, color, religion, sex, national origin, , handicap, or familial status in the award application process
for eligible housing.
K. Support Services and Counseling: Support services are available from various sources. Available support
services may include but are not limited to: Homeownership Counseling (Pre and Post), Credit Counseling,
Tenant Counseling, Foreclosure Counseling and Transportation.
L. Purchase Price Limits: 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 exceed 90% of the median area purchase price established by the U.S. Treasury
Department or as described above.
The methodology used is:
U.S. Treasury Department
Local HFA Numbers
M. Income Limits, Rent Limits and Affordability: The Income and Rent Limits used in the SHIP Program are
updated annually by the Department of Housing and Urban Development and posted at
www.floridahousing.org.
"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, F.S. However, it is not the intent to limit an individual
household's ability to devote more than 30% of its income for housing, and housing for which a household
devotes more than 30% of its income shall be deemed Affordable if the first institutional mortgage lender is
satisfied that the household can afford mortgage payments in excess of the 30% benchmark and in the case
of rental housing does not exceed those rental limits adjusted for bedroom size.
N. Welfare Transition Program: Should an eligible sponsor be used, a qualification system and selection criteria
for applications for Awards to eligible sponsors shall be developed, which includes a description that
demonstrates how eligible sponsors that employ personnel from the Welfare Transition Program will be given
preference in the selection process.
O. Monitoring and First Right of Refusal: In the case of rental housing, the staff and any entity that has
administrative authority for implementing the local housing assistance plan assisting rental developments
shall annually monitor and determine tenant eligibility or, to the extent another governmental entity provides
periodic monitoring and determination, a municipality, county or local housing financing authority may rely
on such monitoring and determination of tenant eligibility. However, any loan or grant in the original amount
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of $10,000 or less shall not be subject to these annual monitoring and determination of tenant eligibility
requirements. Tenant eligibility will be monitored annually for no less than 15 years or the term of assistance
whichever is longer unless as specified above. 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.
P. Administrative Budget: A line -item budget is attached as Exhibit A. The city/county finds that the moneys
deposited in the local housing assistance trust fund are necessary to administer and implement the local
housing assistance plan.
Section 420.9075 Florida Statute and Chapter 67-37, Florida Administrative Code, states: "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."
Section 420.9075 Florida Statute and Chapter 67-37, Florida Administrative Code, further states: "The cost
of administering the program may not exceed 10 percent of the local housing distribution plus 5 percent of
program income deposited into the trust fund, except that small counties, as defined in s. 120.52(19), 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 applicable local jurisdiction has adopted the above findings in
the resolution attached as Exhibit E.
Q. Program Administration. Administration of the local housing assistance plan will be performed by:
Entity
Duties
Percentage
Local Government
City of Miami Department of Housing and Community Development
10%
Third Party Entity
R. Project Delivery Costs: N/A
S. First-time Homebuyer Definition: For any strategies designed for first-time homebuyers, the following
definition will apply: An individual who has had no ownership in a principal residence during the 3-year period
ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are
considered first-time homebuyers). A single parent who has only owned a home with a former spouse while
married. An individual who is a displaced homemaker and has only owned with a spouse. An individual who has
only owned a principal residence not permanently affixed to a permanent foundation in accordance with
applicable regulations. An individual who has only owned a property that was not in compliance with state, local
or model building codes and which cannot be brought into compliance for less than the cost of constructing a
permanent structure.
T. Essential Service Personnel Definition: Essential Services Personnel means any person in need of affordable
housing, who is classified as a permanent employee of a company or organization located within the City of Miami
in the following areas:
i. Educational Services
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ii. Health Care industry
iii. Law Enforcement
iv. Fire Safety and Emergency Services
v. Criminal Justice System
vi. City Government
vii. Skilled Building Trades
U. Describe efforts to incorporate Green Building and Energy Saving products and processes: In accordance
with Section 420.9075(3)(d), Fla. Stat., the City of Miami is committed to making the City's housing stock
more energy efficient, as a result the City of Miami will require the use of the following features when
economically feasible in the rehabilitating or constructing of homes:
i. Water -Conserving Appliances and Fixtures (toilets, shower heads, faucets)
ii. Energy Star Appliances (refrigerator and stove)
iii. Efficient Lighting Interior / Exterior
iv. Upgrading of Insulation (attics, walls and new roofing materials)
v. Tank Less Water Heaters
vi. Water —Permeable Walkways
vii. Air Conditioning Units with a higher Seer Rating
viii. Construction Waste Management
ix. Impact Resistant Windows
V. Describe efforts to meet the 20% Special Needs set -aside: The City will give preference to eligible
homeowner with households with Persons With Special Needs as defined in Section 420.0004 (13) and elderly
(62 years or older) households when applying for assistance. The City will achieve the goal of the special
needs set -aside primarily through the Single Family Rehabilitation Program and Emergency Home Repair
Assistance Program.
W. Describe efforts to reduce homelessness: Each of the strategies undertaken with these funds provide
assistance towards the preservation, rehabilitation or creation of housing which aid in the prevention or the
reduction of homelessness. In addition the City receives Emergency Solutions Grant funds (ESG) on an annual
basis from the U.S. Department of Housing and Urban Development (HUD). Some of the funds are given to
the Citrus Health Network, Inc. which administers the Housing Assistance Network of Dade (HAND) program
that offers homeless prevention and rapid re -housing services to those persons who are homeless or at risk of
homelessness and are 30% AMI or below. The remaining ESG funds are given to the Miami Assistance
Homeless Program for street outreach to the homeless, including the assessment, coordinated entry into the
system and/or referrals to existent resources in the community.
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Section II. LHAP Strategies:
A. Emergency Home Repair Assistance Program
Code 6
a. Summary: The Emergency Home Repair Assistance Program will provide emergency repair
assistance to owner -occupied single family homes. The City will provide assistance to carry out
limited repairs such as roofing, electrical and plumbing to immediately rectify potentially
hazardous conditions that threaten the safety and health of the occupants of the home.
b. Fiscal Years Covered: 2022-2023, 2023-2024 and 2024-2025
c. Income Categories to be served: Very low, low and moderate
d. Maximum award: $50,000
e. Terms:
1. Repayment loan/deferred loan/grant: Deferred payment loan secured by a note and mortgage.
2. Interest Rate: 0%
3. Years in loan term: 10
4. Forgiveness: The loan will be forgiven at the end of the term.
5. Repayment: None required as long as the loan is in good standing.
6. Default: The loan will be determined to be in default if any of the following occurs during the Loan
term: sale, transfer, or conveyance of property; conversion to a rental property; loss of homestead
exemption status; or failure to occupy the home as primary residence. If any of these occur, the full
loan amount will be due and payable at an interest rate of 3%.
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 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 who does not qualify based on
the provisions of this strategy will be required to repay the full loan amount provided by the City of
Miami.
If the home is foreclosed on by a superior mortgage holder, the City will make an effort to recapture
funds through the legal process if it is determined that adequate funds may be available to justify
pursuing a repayment.
f. Recipient Selection Criteria: Applicants will be selected on a first -qualified, first -served basis with priorities
as listed in Section I (I) of this plan.
Other selection criteria will include the following:
• The appraised value of the home may not exceed the maximum sales price (value) allowed under the SHIP
Program.
• The applicant may not be delinquent on any debt owed to the City of Miami or Miami -Dade County or any
mortgagee associated with the property
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g. Sponsor Selection Criteria: N/A
h. Additional Information: Eligible housing includes single family homes, owner -occupied town houses or
twin homes and condominium units. Duplexes and properties with more than one unit, except
condominiums or town homes are not eligible for assistance. In addition, 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.
B. Single Family Rehabilitation Assistance Program
Code 3
a. Summary: The Single Family Rehabilitation Program will provide rehabilitation assistance to
residents who live in single family owner- occupied properties located within the corporate limits of
the City of Miami. The City will provide assistance to complete needed repairs such as roofing,
plumbing and electrical work to meet the decent, safe and sanitary standard conditions after
rehabilitation.
b. Fiscal Years Covered: 2022-2023, 2023-2024 and 2024-2025
c. Income Categories to be served: Very low, low and moderate
d. Maximum award: $100,000
e. Terms:
1. Repayment loan/deferred loan/grant: Deferred payment loan secured by a note and mortgage.
2. Interest Rate: 0%
3. Years in loan term: 10
4. Forgiveness: The loan will be forgiven at the end of the term.
5. Repayment: None required as long as the loan is in good standing.
6. Default: The loan will be determined to be in default if any of the following occurs during the Loan
term: sale, transfer, or conveyance of property; conversion to a rental property; loss of homestead
exemption status; or failure to occupy the home as primary residence. If any of these occur, the full
loan amount will be due and payable at an interest rate of 3%..
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 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 who does not qualify based on
the provisions of this strategy will be required to repay the full loan amount provided by the City of
Miami.
If the home is foreclosed on by a superior mortgage holder, the City will make an effort to recapture
funds through the legal process if it is determined that adequate funds may be available to justify
pursuing a repayment.
f. Recipient Selection Criteria: Applicants will be selected on a first -qualified, first -served basis with priorities
8
as listed in Section I (I) of this plan.
Other selection criteria will include the following:
• The property shall consist of one (1) owner -occupied residential unit. , Including condominium,
townhomes and twin homes.
• Preference will be given to eligible "Persons Who Have Special Housing Needs" and elderly (62 years or
older) households and homeowners.
• The appraised value of the home may not exceed the maximum sales price (value) allowed under the SHIP
Program.
• The applicant may not be delinquent on any debt owed to the City of Miami or Miami -Dade County or any
mortgagee associated with the property
g. Sponsor Selection Criteria: N/A
h. Additional Information: Eligible housing includes single family homes, owner -occupied town houses or
twin homes and condominium units. are not eligible for assistance. In addition,
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.
C. Single Family Replacement Home Program
Code 4
a. Summary: The Single Family Replacement Housing Program is designed to address substandard or
dilapidated housing where the cost of repairs cannot be addressed through the SHIP and/or CDBG
assisted Single Family Rehabilitation Programs ($100,000 in rehab.)
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 to determine if a replacement home is
necessary.
b. Fiscal Years Covered: 2022-2023, 2023-2024 and 2024-2025
c. Income Categories to be served: Very low, low and moderate
d. Maximum award: $300,000
e. Terms:
1. Repayment loan/deferred loan/grant: Deferred payment loan secured by a note and mortgage.
2. Interest Rate: 0%
3. Years in loan term: 30
4. Forgiveness: The loan will be forgiven at the end of the term.
5. Repayment: None required as long as the loan is in good standing.
6. Default: The loan will be determined to be in default if any of the following occurs during the Loan
term: sale, transfer, or conveyance of property; conversion to a rental property; loss of homestead
exemption status; or failure to occupy the home as primary residence. If any of these occur, the full
loan amount will be due and payable.
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In the case of sale or transfer of the property, the borrower will be required to repay the original
amount given as assistance and the City will share in the equity earned by the borrower according to
the following schedule:
• 0 to 10 years — 100% of the equity generated less land value.
• Over 10 — 20 years — 50% of the equity generated less land value.
• Over 20 — 30 years — 25% of the equity generated less land value.
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 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 who does not qualify based on
the provisions of this strategy will be required to repay the full loan amount provided by the City of
Miami.
If the home is foreclosed on by a superior mortgage holder, the City will make an effort to recapture
funds through the legal process if it is determined that adequate funds may be available to justify
pursuing a repayment.
f. Recipient Selection Criteria: Applicants will be selected on a first -qualified, first -served basis with priorities
as listed in Section I (I) of this plan.
g•
Other selection criteria will include the following:
• The property shall consist of one (1) owner -occupied residential unit with major structural defects that
cannot be rehabilitated.
• The property must be free and clear of all liens and mortgages, except City of Miami municipal liens.
• Properties with first mortgages will qualify for replacement only if the first mortgage lender subordinates
to the City.
Sponsor Selection Criteria: N/A
h. Additional Information: 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; and
5. Temporary relocation cost associated with the reconstruction of the home.
D. Home Buyer Financing Program
Code 2
a. Summary: The City of Miami through the Homebuyers Financing Program will provide down
payment, closing cost and/or mortgage financing assistance to eligible persons and households
who are first time homebuyers to purchase a newly constructed or existing residential property
within the City of Miami including homes purchased from a Community Land Trust (CLT). A first
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time home buyer is person who has not owned a home in the past 3 years.
b. Fiscal Years Covered: 2022-2023, 2023-2024 and 2024-2025
c. Income Categories to be served: Very low, low and moderate
d. Maximum award: $ 86,020 $130,002; 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 $86,020 $130,002 or the amount necessary to meet the first lenders credit criteria,
whichever is lower.
Number of bedrooms
0
1
2
3
Maximum Subsidy
$18,328
$55,722
$67,202
$86,020
$72,088
$82,638
$100,490
$130,002
e. Terms: (see "Additional Information" for special terms for CLT home purchases)
1. Repayment loan/deferred loan/grant: Deferred payment loan secured by a note and mortgage.
2. Interest Rate: 0%
3. Years in loan term: 30
4. Forgiveness: The loan will be forgiven at the end of the term.
5. Repayment: None required as long as the loan is in good standing.
6. Default: The loan will be determined to be in default if any of the following occurs during the Loan
term: sale, transfer, or conveyance of property; conversion to a rental property; loss of homestead
exemption status; or failure to occupy the home as primary residence. If any of these occur, the full
loan amount will be due and payable.
In the case of sale or transfer of the property, the borrower will be required to repay the original
amount given as assistance and the City will share in the equity earned by the borrower according to
the following schedule:
• 0 to 3 years — 100% of the equity generated.
• Over 3 — 20 years — After the 3rd year, City receives 85% of the equity generated and borrower
receives 15%. Thereafter, the borrower receives additional 5% of the City's prorated share
per year reducing the City's share by the same percentage.
• Over 20 and above: The borrower receives 100% of the equity.
The above equity sharing proposal will terminate in foreclosure; however, the City will require lenders
to provide a right of first refusal to purchase the loan at a negotiated price. In the case of a
foreclosure, the City will recapture any amount of net proceeds from the sale of the property
available.
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 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 who does not qualify based on
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the provisions of this strategy will be required to repay the full loan amount provided by the City of
Miami.
If the home is foreclosed on by a superior mortgage holder, the City will make an effort to recapture
funds through the legal process if it is determined that adequate funds may be available to justify
pursuing a repayment.
f. Recipient Selection Criteria: Applicants will be selected on a first -qualified, first -served basis with priorities
as listed in Section I (I) of this plan.
g•
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.
• Manufactured housing constructed after June 1994 is considered eligible housing, so long as no
more than 20% of the SHIP distribution is devoted to this type of housing, as referenced in
Section 420.9075(5)(c), F.S.
Sponsor Selection Criteria: N/A
h. Additional Information:
Terms for CLT home purchases: The SHIP assistance is assumable to an income -eligible purchaser. The
terms of the Note and Mortgage shall allow subsequent purchasers to assume the loan with approval by
the CLT and the City of Miami. If the loan remains in good standing, assistance will be forgiven at
the end of the loan term but will be retained as permanent subsidy via the CLT ground lease
which will survive the term of the loan and the CLT Ground Lease will address the requirements
for residency, resale price, subsequent buyer's income eligibility as well as to assure that units
served remain affordable in perpetuity and otherwise complies with the provisions of Fla. Stat.
193.018. In addition, there will be no equity share requirement.
E. Disaster Relief Program
Code 5, 16
a. Summary: The Disaster Relief strategy provides funds to households following a disaster or
emergency declared by the President of the United States or Governor of the State of Florida. SHIP
disaster funds will be used for the following items:
1. Rehabilitation of Owner -Occupied Housing- Deferred payment loan assistance to
households whose homes need repair to correct life threatening, health and safety
defects after a disaster or to make immediate repairs to prevent or correct exposure
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of the property to the environment.
2. Rental, Mortgage and Utility Payment Assistance — Grants to cover rental payments,
mortgage payments and utilities for households affected by a disaster.
b. Fiscal Years Covered: 2022-2023, 2023-2024 and 2024-2025
c. Income Categories to be served: Very low, low and moderate
d. Maximum award: $ 15,000
e. Terms: Rehabilitation of Owner -Occupied Housing
1. Repayment loan/deferred loan/grant: Deferred payment loan secured by a note and mortgage.
2. Interest Rate: 0%
3. Years in loan term: 10
4. Forgiveness: The loan will be forgiven at the end of the term.
5. Repayment: None required as long as the loan is in good standing.
6. Default: The loan will be determined to be in default if any of the following occurs during the Loan
term: sale, transfer, or conveyance of property; conversion to a rental property; loss of homestead
exemption status; or failure to occupy the home as primary residence. If any of these occur, the full
loan amount will be due and payable.
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 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 who does not qualify based on
the provisions of this strategy will be required to repay the full loan amount provided by the City of
Miami.
If the home is foreclosed on by a superior mortgage holder, the City will make an effort to recapture
funds through the legal process if it is determined that adequate funds may be available to justify
pursuing a repayment.
Terms: Rental, Mortgage and Utility Payment Assistance
1. Repayment loan/deferred loan/grant: Funds will be awarded as a grant.
2. Interest Rate: N/A
3. Years in loan term: N/A
4. Forgiveness: N/A
5. Repayment: N/A.
6. Default: N/A
f. Recipient Selection Criteria: Rehabilitation of Owner -Occupied Housing
Applicants will be selected on a first -qualified, first -served basis with priorities as listed in Section I (I) of
this plan.
Other selection criteria will include the following:
• The property shall consist of one (1) owner -occupied residential unit.
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g.
• 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 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 rehabilitation 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 owed to the City of Miami or Miami -Dade
County.
Recipient Selection Criteria: Rental, Mortgage and Utility Payment Assistance
Applicants will be selected on a first -qualified, first -served basis with priorities as listed in Section I (I) of
this plan.
Sponsor/Sub-recipient Selection Criteria: N/A
h. Additional Information: N/A
F. Homeownership Development Program
Code 10
a. Summary: The SHIP Homeownership Program is designed to promote and create affordable
homeownership opportunities for families and individuals. SHIP Program funds reserved for this
strategy will be used to assist not -for -profit and for -profit housing developers and Community Land
Trust (CLT) developments that meet the criteria under section 193.018 of the Florida Statutes or
the City. SHIP funds reserved for this strategy will be utilized by the City of Miami to finance the
project cost associated with purchase of land, site development, hard and soft construction
financing and permanent financing.
b. Fiscal Years Covered: 2022-2023, 2023-2024 and 2024-2025
c. Income Categories to be served: Very low, low and moderate
d. Maximum award: $86,020. $130,002
Developments meeting the selection criteria will be awarded a maximum amount per unit based on the
number of bedrooms as shown in the chart below:
Number of bedrooms
0
1
2
3
Maximum Subsidy
$18,328
$55,722
$67,202
$86,020
$72,088
$82,638
$100,490
$130,002
e. Terms: Construction / Developer
1. Repayment loan/deferred loan/grant: Deferred payment loan secured by a note and mortgage.
2. Interest Rate: 0%
3. Years in loan term: 2
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Construction loan with no monthly payments during the construction phase.
• Commence construction of the Project within six (6) months from the Effective Date (Date
Contract is Executed);
• Obtain all required certificate of occupancy for the Project, within eighteen (18) months from the
Effective Date;
• Sell all assisted units to Eligible Home Buyers within six (6) months of the certificate of occupancy;
4. Forgiveness: Once the developer has successfully completed the construction, the average subsidy
per unit provided to the development during construction will be passed through to the eligible
homebuyer in the form of a permanent mortgage loan.
In the event through no fault of the developer the project suffers a reduction in market value within
the loan term or the project is subject to a CLT, the City reserves the right to allow for a buy -down
(forgiveness) equal to the difference between the project development cost and appraised value.
5. Repayment: None required as long as the loan is in good standing.
6. Default: The loan will be determined to be in default if the Developer does not comply with the loan
terms contained herein. If this occurs the full loan amount will be due and payable.
Terms: Home Buyer (see "Additional Information" for special terms for CLT home purchases)
1. Repayment loan/deferred loan/grant: Deferred payment loan secured by a note and mortgage.
2. Interest Rate: 0%
3. Years in loan term: 30
4. Forgiveness: The loan will be forgiven at the end of the term.
5. Repayment: None required as long as the loan is in good standing.
6. Default: The loan will be determined to be in default if any of the following occurs during the Loan
term: sale, transfer, or conveyance of property; conversion to a rental property; loss of homestead
exemption status; or failure to occupy the home as primary residence. If any of these occur, the full
loan amount will be due and payable.
In the case of sale or transfer of the property, the borrower will be required to repay the original
amount given as assistance and the City will share in the equity earned by the borrower according to
the following schedule:
• 0 to 3 years — 100% of the equity generated.
• Over 3 — 20 years — After the 3rd year, City receives 85% of the equity generated and borrower
receives 15%. Thereafter, the borrower receives additional 5% of the City's prorated share
per year reducing the City's share by the same percentage.
• Over 20 and above: The borrower receives 100% of the equity.
The above equity sharing proposal will terminate in foreclosure; however, the City will require
lenders to provide a right of first refusal to purchase the loan at a negotiated price. In the case of a
foreclosure, the City will recapture any amount of net proceeds from the sale of the property
available.
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 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 who does not qualify based on
the provisions of this strategy will be required to repay the full loan amount provided by the City of
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Miami.
If the home is foreclosed on by a superior mortgage holder, the City will make an effort to recapture
funds through the legal process if it is determined that adequate funds may be available to justify
pursuing a repayment.
f. Recipient Selection Criteria: Eligible homebuyers will be assisted on a first -qualified, first served basis.
g•
Sponsor Selection Criteria: N/A.
SHIP funding to be provided by the City of Miami under the Homeownership Development Program
strategy will be awarded through a Request for Proposals ("RFP") 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:
• Level of experience in development of similar projects.
• Financial capacity of the developer.
• 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 (2019-2023).
• Ability to demonstrate project will be affordable to low to moderate income households.
h. Additional Information:
Terms for CLT home purchases: The SHIP assistance is assumable to an income -eligible purchaser. The
terms of the Note and Mortgage shall allow subsequent purchasers to assume the loan with approval by
the CLT and the City of Miami. If the loan remains in good standing, assistance will be forgiven at
the end of the loan term but will be retained as permanent subsidy via the CLT ground lease
which will survive the term of the loan and the CLT Ground Lease will address the requirements
for residency, resale price, subsequent buyer's income eligibility as well as to assure that units
served remain affordable in perpetuity and otherwise complies with the provisions of Fla. Stat.
193.018. In addition, there will be no equity share requirement.
G. Rental Housing Development Program
Code 14, 21
a. Summary: The SHIP Rental Housing Development Program is designed to promote and create
affordable housing opportunities for 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 will be utilized 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.
b. Fiscal Years Covered: 2022-2023, 2023-2024 and 2024-2025
c. Income Categories to be served: Very low, low and moderate
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d. Maximum award: $60,000 per unit
e. Terms :
1. Repayment loan/deferred loan/grant: Deferred loan secured by a note and mortgage.
2. Interest Rate: 0%
3. Years in loan term: 30
There will be no monthly payments associated with the loan during the construction phase.
• Commence construction of the Project within six (6) months from the Effective Date (Date
Contract is Executed);
• Obtain all required certificate of occupancy for the Project, within twenty-four (24) months from
the Effective Date;
• Rent all assisted units to income eligible renters within twelve (12) months after the issuance of a
certificate of occupancy for the Project.
During the underwriting stage, the level of financial assistance and the terms provided are
determined based on the project's ability to generate cash -flow sufficient to secure all private and
public financing needed to successfully complete the development.
4. Forgiveness: The loan will be forgiven at the end of the term.
5. Repayment: None required as long as the loan is in good standing.
6.Default: The loan will be determined to be in default if the Developer does not comply with the loan
terms contained herein. If this occurs the full loan amount will be due and payable.. Commence
construction of the Project within six (6) months from the Effective Date (Date Contract is Executed);
Obtain all required certificate of occupancy for the Project, within twenty-four (24) months from the
Effective Date; Rent all assisted units to income eligible renters within twelve (12) months after the
issuance of a certificate of occupancy for the Project. After the development of the Project the rental
units must continue to be rented to income eligible renters throughout the affordability period of 30
years.
f. Tenant Selection Criteria: Eligible households will be assisted on a first -qualified, first served basis
g•
Sponsor Selection Criteria: The City of Miami will administer this program through an RFP process.
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:
• Level of experience in development of multifamily rental housing;
• 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;
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• 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; and
• Consistency with the City of Miami's Five Year Consolidation Plan (2019-2023).
The City shall annually monitor and determine tenant eligibility. In cases where another governmental
entity provides the same monitoring and determination, the City may rely on such monitoring and
determination of tenant eligibility. However, any loan or grant in the original amount of $10,000 or less
shall not be subject to these annual monitoring and determination of tenant eligibility requirements.
Tenant eligibility will be monitored for at least annually for 15 years or the term of assistance whichever is
longer unless as specified above.
h. Additional Information: N/A
III. LHAP Incentive Strategies
In addition to the required Incentive Strategy A and Strategy B, include all adopted incentives with the
policies and procedures used for implementation as provided in Section 420.9076, F.S.:
A. Name of the Strategy: Expedited Permitting
Permits as defined in s. 163.3177 (6) (f) (3) for affordable housing
projects are expedited to a greater degree than other projects.
Provide a description of the procedures used to implement this strategy:
Please refer to Exhibit H
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.
Provide a description of the procedures used to implement this strategy:
The Department of Housing and Community Development is notified of all proposed changes to
the zoning code. If a propose change affects the construction of affordable housing, a meeting is
scheduled with the respective department to discuss such changes followed by a
recommendation from the department.
C. Other Incentive Strategies Adopted:
• Reduction of Parking and Setback Requirements
• Impact- Fee Deferral / Waiver
• Allowance of Flexibility in Densities and Intensities; i.e. FAR
Provide a description of the procedures used to implement this strategy:
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Developers requesting any of the above mentioned waivers submits an affordable housing
certification form to the Department of Housing and Community Development, which reviews
and certifies that the project is an affordable housing project. After certification, the Developer
follows the procedures illustrated in the Miami 21 Zoning Code under Article 7 Procedures and
Nonconformities Section 1.2.5 Waiver to be able to avail themselves of the waivers
IV. EXHIBITS:
A. Administrative Budget for each fiscal year covered in the Plan.
B. Timeline for Estimated Encumbrance and Expenditure.
C. Housing Delivery Goals Chart (HDGC) For Each Fiscal Year Covered in the plan.
D. Signed LHAP Certification.
E. Signed, dated, witnessed or attested adopting resolution.
F. Ordinance: (If changed from the original creating ordinance).
G. Interlocal Agreement.
H. Expediting Permitting Policy
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