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Res 31-09A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, APPROVING THE LOCAL HOUSING ASSISTANCE PLAN AS REQUIRED BY THE STATE HOUSING INITIATIVES PARTNERSHIP PROGRAM ACT, SUBSECTIONS 420.907- 420.9079, FLORIDA STATUTES, AND RULE CHAPTER 67-37, FLORIDA ADMINIS'T'RATIVE CODE; AUTHORIZING AND DIRECTING THE MAYOR TO E~; ECUTE ANY NECESSARY DOCUMENTS AND CERTIFICATIONS NEEDED BY THE STATE; AUTHORIZING THE SUBMISSION OF THE LOCAL HOUSING ASSISTANCE PLAN FOR REVIEW AND APPROVAL BY THE FLORIDA HOUSING FINANCE CORPORATION; PROVIDING AN EFFECTIVE DATE. WHEREAS, the State of Florida enacted the William E, Sadowski Affordable Housing Act, Chapter 92-31.7 of Florida Sessions Laws, allocating a portion of documentary stamp taxes an deeds to local governments far the development and maintenance of affordable housing; and ~'lHER.I?.AS, the State Housing Initiatives Partnership (SHIP) Act, ss. 420,907-42Q9079, Florida Statutes {1992), and Rule Chapter G7-37, Florida Administrative Code, requires local governments to develop a one-to three-year Local Housing Assistance Plan outlining how funds will be used; and WHEREAS, the SHIP Act requires local governments to establish the maximum SHIP funds allowable far each strategy; and WHEREAS, the SHIP Act further requires local goveriunents to establish an average area purchase price for new and existing housing benefiting from awards made pursuant to the Act. The methodology and purchase prices used are defined in the attached Local Housing Assistance Plan; and WHEREAS, as required by Section 420.9075, F.S., and Chapter G7-37 F.A.C., it is found that five percent (5°l0} of the local housing distribution plus five percent {5°l0) of program income is insufficient to adequately pay the necessary costs of administering the local housing assistance plan. The cost of administering the program may not exceed ten percent {10°l0) of the local housing distribution plus five percent {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 ten percent (10°I°) of program income for administrative costs; and WHEREAS, the City of Dekay Beach has prepared athree-year Laca1 Housing Assistance Plan for submission to the Florida Housing Finance Corporation; and WHEREAS, the City Commission finds that it is in the best interest of the public far the City of Delray Beach to submit the Laval Housing Assistance Plan for review and approval so as to qualify far said documentary stamp tax funds. ly v w, 1 n rlnnr u x~.r/, ~ c~ .~ ~~vL, 4 DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. The City Commission of the city of Delray Beach hereby approves the Local Housing Assistance Plan, as attached and incorporated hereto for submission to the Florida Housing Finance Corporation as required by ss. 420.907-424-9079, Florida Statutes, for fiscal years 2007-2010. Section 2. The Mayor is hereby designated and authorized to execute any documents and certifications required by the Florida Housing Finance Corporation as related to the Local Housing Assistance Plan, and to do aIl things necessary and proper to carry out the term and conditions of said program. Section 2. `This resolution shall take effect immediately upon its adoption. PASSED AND ADOI~TED in regular session on this the 2181 day of J~1X,. X009. 2 RES. NO. 31-09 ,~ f F TITT OT DELRT'~ ~ TTT~N ~ f .. , A ~ . '~~ , DELRAYSEACN CITY CLERK l Q R I D 100 N.W. 1sf AVENUE QELRAY BEACH, FLt}FIIDA 33444 II~ All-America City ~~~, '~~~ CETTIFICATIC"~N a • 5611243-7000 1, CHEVE~LE NUBIN, City Clerk of the City of Delray Beach, do hereby certify that the attached document is a true and correct copy of Resolution No. 39-t}9 is the same was passed by the Delray Beach City Commission in regular session on the 21St of July 2009. IN WITNESS WHEREOF, I have hereunto set my hand and the official seal of the Gity of Delray Beach, Florida, on this the 22"d day of July, 2009, Chevelle D. Nubin, GMG Gity Glerk City of Delray Beach, Florida (SEAL} VERVICE ' PERFORMANCE ` INl`EGRITY ` RESPONSIBLE ' INNOVATEVE ` TEAMWORK Page 1 of 1 MEMC}RANDLTM TO: Mayan and City Commissioners FROM: Lula Butler, Director of Community Improvement Elizabeth Alpert, Neighborhood Services Adrninsitrator THROUGH: David Harden, City Manager DATE: July 15, 2009 SUBJEC'T'; AGENDA ITEM 8.G. -REGULAR COMMISSION MEETING OF JULY 2I 2009 RESOLUTION NO, 3I-09IAMENDMENT TO LOCAL HOUSING ASSISTANCE PLAN (LHAP,I ITEM BEFORE COMMISSION City Commission authorization and approval of an amendment to the City's State Housing Initiatives Partnership (SHIP} Program, Local Housing Assistance Plan for Fiscal Years 2a07-gala by adopting Resolution No, 31-09 pursuant to Title 67-37 of the Florida Administrative Cade. BACKGROUND The Community Improvement Department receives funds under the State Housing Initiatives Partnership (SHIP} Program for the development and maintenance of affordable housing. SHIP funds are generated from a portion of documentary stamp taxes collected throughout the State and held in the State's Housing Trust Fund. The State requires a Local Housing Assistance Plan (CHAP} outlining how the City plans to administer the SHIP funds ante they are received. On February 23, 1993, under Ordinance No. 2-93, the City Commission established a Local Housing Assistance Program, created the Local Housing Trust Fund and created the Affordable Housing Advisory Committee to comply with various sections of Title 67 of the Administrative Cade of Florida. Neighborhood Services Division staff has administered the program and under the approved Plans have assisted Delray Beach residents with homeownership and housing rehabilitation opportunities. The current Plan (2007-2010} was adapted by Resolution Na. 28-07 an April 10, 2007 and amended through Resolution No. 61-08 on December 9, 2aas, Due to the recent legislative proviso, SHIP recipients are required to expend 2x09-2a1a funds as part of the federal first-time hamebuyer tax credit program. This program was created through The American Recovery and Reinvestment Act of 2x09. The Amendment .can be found an page 16 and is titled "Florida Homebuyer Opportunity Program." FUNDING SOURCE State Housing Intiatives Partnership (SHIP} RECOMMENDATION Staff recommends amendment of plan to include the Florida Hornebuyer Opportunity Program Strategy by adoption of Resolution No. 31-09, http:l/www.mydelraybeach.comlAgendasBluesheet.aspx?IternID=2395&MeetinglD=213 71202009 .RESOLUTION NO.32-09 A RESOLU'T'ION OF THE CITY COMMISSION OF THE CIZ`Y OF DELRAY BEACH, FLORIDA, APPROVIlVG THE LOCAL HOUSING ASSISTANCE PLAN AS REQiJTItED BY THE STATE HOUSING INITIATIVES PARTNERSHIP PROGRAM ACT, SUBSECTIONS 420.907- 420.9079, FLORIDA STATUTES, AND RULE CI-IAPTER 67-37, FLORIDA ADMINISTRATIVE CODE; AU THORTZING AND DI~;ECTING THE MAYOR fi0 Es ~CLrT'E ~1N~ NECESSARY DOCUMENTS AND CERTIFICATIONS NEEDED BY THE STATE; AUTHORIZING 'T'HE SUBMISSION OF T'IIE LOCAL HOUSING ASSISTANCE PLAN FOR REVZE'L~U AND APPROVAL BY THE FLORIDA HOUSING FINA.~NCE CORPORATION; PROVIDING AN EPFECTTVE DATE. WHEREAS, the State of Florida enacted the Willian.~ E. Sadowski .Affordable Housing Act, Chapter 92-317 of Florida Sessions L~~vs, allocatuzg a portion of documentary stamp taxes on deeds to local governments for the develolament acid maintenance of affordable housing; and WHER.Ij.AS, die State Housing Initiatives Partnership {SHIP) Act, ss. 420.907-420.9079, Florida Statutes {2992}, and Rule Chapter G7-37, Florida. Admiaustrative Code, requites local governments to develop a one-to three-year Local Housiz2g Assistance Plan outlining how funds will be used; and WI-Il~:REAS, tDe SHIP Act requires local governments to establish the maxixt~um SHIP funds allovrable for each strategy, and WHEREAS, the SHIP Act further requires local governments to establish an average area purchase l~riee for new and existing housing benefiting froth awards made pursuant to the Act. The methodology and purchase prices used. are defined in the attached Local I-Iousuig Assistance Plan; and WHER.E~.AS, as required by Section 420.9075, F.S., and Chapter b7-37 F.A.C., it is Found that five percent {5°l0} of the local Dousing distribution plus five percent {5°l0} of program income is insufficient to adequately pay the necessary casts of admiJiistering the local housing assistance plan. The cost of adrriinisteruig the program may not exceed ten percent {10%) of the local housing distribution plus five percent {5°l0} of progrtim income deposited into ,the trust fund, except that sn~a.ll counties, as defined in s. 220.52{17}, and eligible municipalities receiving a local housing distribution of up to $350,000 may use up to ten percent {20°~4} of program income for adm.uiisttative costs; and WHEREAS, the City of Delray Beach has prepared athree-year Local Housing Assistance Plan for submission to the Florida Housing Finance Corporation; and WHEREAS, the City Commission finds that it is in the best interest of the public for the City of Delray Beach to submit the Local Housing Assistance Plan for review and approval so as to qualify for said documentary stamp tax funds. NUW, THEREFORE, BE IT RESOLVED BY THE CITY CClMMISSION OF THE CITY C:~F DELRA~.' $EACH, FLORIDA, AS FfJLLC}WS: Section 1, The City Catnrnission o£ the city of Delray $each hereby approves the Local Housuig .Assistance Plan, as attached aid incarparated hereto for submission to the Iil.arida HausuYg Finance Corporation as required by ss. 420.907-420-9079, Florida Statutes, for fiscal years 2007-2010. Section 2. The Mayor is hereby designated and authorized to execute any documents and certificatiat~s required by the Florida Horsing Finance Corporation as related to the Local Housing Assistance Plan, and to do all things necessa~~y and pral3er to carry aufi the term and conditions a£ said progxam. Section 2. This resolution shall take effectimmediately upon its adoption, PASSED AND ADOZ]`TED in regular session on this the day a£ , 2009. AZ"1"ES'I`: 1vI A Y O R City Clerk 2 ItF..S. NO.31-09 CITY QF DELRAY BEACH ~. ~ R~s,~oNsis, wo G~~ `~T ~~ ~ ~~, ~c ~r ~ YYY fl `~ 1.x/"'1' , .-t. xu _ J m ~ ~.. a ~`'~, A ~~~' .IN THE P'~~~~ State Housing Initiatives Partnership (SHIP) LOCAL HOUSING ASSISTANCE PLAN (CHAP) 2"d Revision June 20Q9 FISCAL YEARS CC}VERED ~oo~~~oa~ ~o~s~~oo~ ~oa~i~o~o .~. TABLE OF CONTENTS I. Program Description (Chapter 67-37.005 F.A.C. and Section 420.9072, F.S.) 3 - 7 I1. LHAP Housing Strategies Chapter fi7-37.005~5~, F.A.C. 7 -16 • Purchase Assistance • Owner-occupied Housing Rehat}ilitation • Land Acquisition • Disaster Relief • Sub-Recipient Housing Partnership Program • Foreclosure Assistance • Florida Homebuyer opportunity Program III. LHAP INCENTIVE STRATEGIES (Section 420.9071(16, F.S.) 17 - 20 • Expedited Permitting Ongoing Review Process • Impact Fees Requirements • Waiver of Bi.iilding Permit Fees • ANowance of increased Density Levels • Reservation of Infrastructure Capacity • Reduction of Parking and Set Back Requirements • Preparation of Printed Inventory • Reduction of Landscape Requirements IV. EXHIBITS 21 • Administrative Budget • Timeline • Housing Delivery Goals Charles {HDGC~ • CertiFcation to Florida Housing Finance Corporation • Resolutions • Program Information Sheet -2- PRtIGRAM DESCRIPTION Chapter 67-37.005 F.A.C. and Section 42Q9072, F.S. A. Name of the participating local government and Interlocal if Applicable: Section d2Q.9QT2(3), F.S, City of Delray Beach Interlocal: Yes No X Name of participating local government{s} in the Interlocal Agreement; 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 City of Delray Beach's comprehensive plan specific to affordable housing. C. Fiscal years covered by the Plan: ChaptersT-3T.002,F.A.C. X 200712008 X 200812009 X 200912010 D. Governance: cnapters~~~.oo~(3~and~~~~;}F.A.c. andsect;on4za.stT~t~4}F.s. TMe SHIP Program is established in accordance with Section 420.907-9079, Florida Statutes and Chapter 67-37.007 Florida Administrative Code. The SNIP Program furthers the housing element objective of providing increased housing opportunities for low- incame persons. Cities and Counties at all times must be incompliance with these applicable statutes and Hales. E. Local Housing Partnership sect;on 420.9072(~)(a), F.s. SHIP Program encourages building active partnerships between government, lenders, builders and developers, real estate professionals, advocates for low-income persons and community groups. The City of Delray Beach's Community Improvement Department has formed a partnership agreement with the Delray Beach Community Redevelopment Agency, the Community Financing Consortium, Inc., the Delray Beach Housing Authority, the Delray Beach Community Land Trust, the Delray Beach Community Development Corporation and local contractors. This partnership was developed to implement a comprehensive home-building and community revitalization program. Resources from each participant are leveraged to minimize the duplication of services, streamline the approval process and to reduce the cost of housing to very-low, low-, and moderate-income homebuyers. F. Leveraging: Chapter 67-3T007(1)(b)(cJ, F.A.C. and Seet;on 420.9G75(t)(af and (1)(b3, and (1~(c), F.S. The Plan is intended to increase the availability of affordable residential units by .~. combining local resources and cost saving measures into a local housing partner- ship 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. The use of SHIP funds along with CDBG funds, General Revenue contributions awarded by the City, leverages with private sector financing and technical support provide the basis far increasing the supply of affordable housing for Delray Beach residents. Emphasis remains on combining neighbor- hood improvements with the provision of homeownership opportunities for the very-low and low income households. G. Public Input. chapters-~TOQ3(3), F.A.c. Public input was solicited through face to face meetings with housing providers and local neighborhood associations. Also, the City conducts an annual Community Needs Assessment Meeting whereby the public is invited to attend and provide input on how program funds should be allocated. H. Advertising and Outreach Chapters-s~.oo~(s}(a}, F.A.c. The City advertises the notice of funding availability in a local 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. In addition to advertising in the newspaper, the City publicizes the SHIP program on the City's web site, and through established homeowner association newsletters, churches located in the CDBG target area and other organized methods that may be available. SHIP staff participates in local hamebuyer fairs and workshops. Discrimination: Section 420.so73(3}(c), ~.s. In accordance with the provisions of ss.760.20-760.37, it is unlawful to discriminate on the basis of race, creed, religion, color, age, sex, marital status, familial status, national or~g'sn, or handicap in the award application process for eligible housing. In implementing its SHIP program, the City of Delray Beach is mindful of affirmatively furthering fair housing. The City utilizes CDBG funds to further fair housing outreach and education activities, as called for in the Consolidated Plan. All SHIP applicants are required to attend home buyer education seminars that include a segment on fair housing, J. Support Services and Counseling: Chapter 67-37.005(5)(g),F.A.C. Support services are available from various sources. The City works with the Delray Beach Community Development Corporation and Housing Partnership to provide pre and past homeownership counseling, All prospective homebuyers receive education about credit, predatory lending, fair housing, pre-purchase home inspections, and post- purchase education on topics such as budgeting, home maintenance, energy conservation. .4. K. Purchase Price Limits: Section 42{1,9075{4}{c}, F.S. and Chapter 67-37,007{6}F,A.C. 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 than 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 by the Gity of Delray Beach is. Bond Study Numbers provided by Florida Housing Finance Corporation Independent Study {copy attached} X U.S. Treasury Department The purchase price limit for new construction and existing homes will be $280,000. This amount is less than the $429,619 maximum for new home construction and existing home purchases allowed by the U. S. Treasury Department {Revenue Proclamation 2005-15} because they are based on the amount that a household can actually afford using SHIP subsidy. The purchase price limit will be revised as needed in response to changes in the local real estate market, mortgage interest rates, etc. Any such revisions will be subject to City Commission and State approval. L. Income Limits, Rent Limits, Affordability and Essential Service Personnel: Ghapter 67-37.005~5)~e), F.A. G..and Section 420.907i(2), F.S. The Income and Rent Limits used in the SHIP Program are updated annually from the Department of Housing and Urban Development and distributed by Florida Housing Finance Corporation, 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 it is not the intent to limit an individual household's ability to devote more than 30°10 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°I° benchmark and in the case of rental housing does not exceed those rental limits adjusted f©r bedroom size. The City of Delray Beach has established a maximum limit of 40% of gross monthly income on the housing expenses of SHIP assisted buyers. Definition of Essential Services Personnel: "Essential Services Personnelfl means persons whose household incomes do not exceed 120% of AMI, as determined annually by the Florida Housing Finance Corporation and adjusted for family size, and shall include teachers and educators; other school district, community college, and university employees; police and fire personnel; health care personnel; skilled building trades personnel; Federal, State, County, and local government personnel; and may also include utility system {water/sewer, electrical, communication, etc.} personnel; information technology industry personnel; child care personnel; personal service .5. providers; retail workers; wholesale/warehouse personnel; tourism industry personnel; biotechnology industry personnel; non-profit personnel; food service personnel; landscaping industry personnel; cosmetology service providers; facility maintenance personnel; automotive service personnel; marine services personnel; and personnel in other industries deemed essential by Gity of Delray Beach government based on the local economy. The City of Delray Beach will review and possibly revise this definition of essential service workers on an as needed basis to conform to local economic and industry trends. M. Welfare Transition Program Chapter 67-37.Qt?5(8)(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 employ personnel from the Welfare Transition programs will be given preference in the selection process. The City works in partnership with the local Chamber of Commerce to ensure that these requirements are met. N. Monitoring and First Right of Refusal: Seetlon 42tJ.9~75(3)(e~and (~) (tt, F.S. In the case of rental housing, the staff or entity that has adrriinistrative authority for implementing the local housing assistance plan assisting rental devebpments shall annually monitor and determine tenant eligibility or, to the extent another governmental entity provides the same 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 of $3,QQ0 or less shall not be subject to these annual monitoring and determination of tenant eligibility requirements. Tenant eligibility will be monitored at least annually for 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 far continued occupancy by eligible persons. 0. Administrative Budget: Chapfer6T-37.OU5(6)(t)3, F.A.c.. A detailed listing including line-item budget of proposed Administrative Expenditures is attached as F~chibit A. These are presented on an annual basis for each State fiscal year submitted. The City of Delray Beach finds that the monies 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°I° of the local housing distribution monies and program income deposited into the trust fund except: 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°1° of the local housing distribution plus 5°1° of program income is insufficient to adequately pay the necessary costs of administering the local housing assistance plan. The cost of administering the program may not exceed 10% of the local housing distribution plus 5°l0 of program income deposited into the trust fund, except that small -6- counties, as defined in s. 120.52{17}, and eligible municipalities receiving a local housing distribution of up to $350,040 may use up to 10 percent of program income for administrative costs. The City of Delray Beach has adapted the above findings in the attached resolution, Exhibit E. The Neighborhood Services Division of the Community Improvement Department sha8 be responsible for administration of the Local Housing Assistance Plan {CHAP}. Administrative functions include program design, applicant processing and selection, preparing necessary paperwork to issue payments for program activities, tracking expenditures to ensure that statutory set-asides will be met, maintaining necessary records, preparing required reports, and all other duties pertaining to implementation of the CHAP. II. CHAP HQt151NG STRATEGIES: Chapter s7-s7.tH15(5), F..A.C. A. Name of the Strategy: Purchase Assistance Summary of the Strategy: This strategy assists eligible first-time homebuyers with a 0°1° interest, deferred payment loan to be applied towards down-payment, rehabilitation costs {if applicable}, closing costs and principal reductions for the construction of new andlor purchase of existing single family homes, townhouses and villas. New construction properties must be constnacted by approved contractors/developers participating in the City of Delray Beach Housing Renaissance Partnership. 2. Fiscal Years Covered: State fiscal years 2007/2008, 2008/2009 and 2009/2010. 3. Income Categories to be served: Very-low, low-, and moderate-income limits used are those as defined by tJ.S. Department of Housing and ~.Irban Development {HtJD} and distributed by the Florida Housing Finance Corporation for use in the SHIP Program. 4. Maximum award is noted on the Housing Delivery Goals Charts: The maximum award is limited to $75,000; however, the maximum is not automatically provided on an individual basis; rather, the amount of subsidy awarded will be the minimum amount necessary to enable the buyer to purchase the property at a monthly payment affordable to him or her. City subsidy may not exceed mortgage loan amount. 5. Terms, Recapture and Default: Assistance will be provided to eligible households in the form of a fifteen {15} year, 0°I° interest, forgivable deferred loan far amounts greater than $5,000 but less than $35,000. For amounts equal to or greater than $35,000, assistance will be provided in the form of a thirty {30} year, 0°l° interest, forgivable deferred loan. Assistance under $5,000 will be awarded as a grant and will not be subject under the program's recapture provisions. All loan awards will be secured with a second mortgagelpromissory note and will be forgiven on a pro-rated basis specific to the duration of the Hate. Repayment of the full loan award will be -7- immediately due to the City in the event any "qualifying event{s}" occur prior to expiration of the note. Qualifying event{s} are considered to be: • sale of unit or transfer of title the assisted homeowner fails to continuously occupy the home the unit is rented • unit is refinanced without prior authorization of the Gity. Such repaid funds will be utilized in accordance with the approved Local Housing Assistance Plan in effect at the time the funds are recaptured. If no "qualifying event{s}° occur prior to the expiration of the note, the loan is totally forgiven. In the event the homeowner wishes to refinance his or her first mortgage or take out an equity loan to make repairs or improvements, the Gity has created an administrative policy pertaining to subordination requests. The subordination policy is located in the Neighborhood Services Division and is available for public access. Recipient Selection Griteria: In addition to being income eligible as described above, applicants must meet the following selection criteria: • Applicants will be selected on a first come, first qualified basis • Must be first-time homebuyer{s), which is defined as one of the following: o someone who has not owned a home during the past three years ~ a single parent who has been divorced and displaced within the 12 month period prior to time of application, and whose household includes children under the age of 18 o a displaced victim of domestic abuse o a person displaced as a result of a government action {other than eviction from public housing; and those who have special needs according to Chapter 67-37.002{13} o Must have a bank account o Applicant must have an accepted contract for a home and have applied for a first mortgage with a lender o The applicant must have attended and completed an approved homebuyer education course {i.e., at least four hours in length and conducted in a classroom setting} approved by the Neighborhood Services Division. 7. Sponsor Selection Griteria: Eligible sponsors must meet the following selection criteria: • designated 501{c}{3} non-profit organization under IRS guidelines; • legally operating within the jurisdiction of the City of Delray Beach andlor Palm Beach County; • has demonstrated track record and production experience in the construction and delivery of affordable housing; • possess a partnership agreement with the City of Delray Beach to participate and further its goals in the delivery of affordable housing to the City's very-iow, low- and moderate-income households; .g. preference wHl be given to sponsors that employ personnel from Welfare Transition Program. 8. Additional Information: New units constructed must be located in the GDBG designated target area. Existing homes must be located within the Gity's municipal boundaries. Applicants owing money to other assisted housing programs (such as Section 8 and public housing} are ineligible for SHIP assistance until they make restitution. B. Name of the Strategy: C}wner-t3ccupied Housing Rehabilitation 1. Summary of the Strategy: Thss strategy provides 0°lo interest, deferred payment loans to assist very-low, low- and moderate-income households {below 120% of Area Median Income adjusted for family size} to rehabilitate existing owner-occupied single family units up to 2 unit duplexes. Rehabilitation of units will address interior and exterior buildinglelectrical/plumbing problems, health antl safety issues, as well as, retrofit of items for those with special needs, upgrade major systems, and soft costs. It is assumed that no private lender monies will be involved in these rehabilitation activities. 2. Fiscal Years Covered: State fiscal years 2007J2008, 2008!2009 and 2(}09!2010. 3. income Gateaories to be served: Very-low, low- and moderate-income limits used are those as defined by 11.5. Department of Housing and Urban Development (HUD} and distributed by the Florida Housing Finance Corporation for use in the SHIP Program. 4. Maximum award is Hated on the Housing Delivery Goals Charts: The maximum award for this strategy is $37,000. However, the maximum is not automatically provided on an individual basis; rather, the amount of subsidy awarded will be the minimum amount necessary to make the necessary repairs and bring the house up to the City's minimum code requirements. Terms, Recapture and Default: Assistance greater than $5,000 but less than $20,000 will be provided to eligible households in the farm of a 0°lo interest, deferred payment loan secured by a promissory note forgivable over ten {10} years. Loan awards equal to or greater than $20,000 will be provided in the form of a 0°l~ interest, deferred payment loan secured by a promissory note forgivable over fifteen {15} years. Assistance under $5,000 will be awarded as a grant and will not be subject under the program's recapture provisions. Repayment of the full loan award wi8 be immediately due to the City in the event any "qualifying events}~ occur prior to expiration of the note. Qualifying event{s} are considered to be: • sale of unit or transfer of title {except for major healthcare expenses or by inheritance} • the assisted homeowner fails to continuously occupy the home -9- • the unit is rented unit is refinanced without prior authorization of the Gity, Such repaid funds will be utilized in accordance with the approved Local Nousing Assistance Plan in effect at the time the funds are recaptured. If no "qualifying events}" occur prior to the expiration of the note, the loan is totally forgiven. In the event the homeowner wishes to refinance his ar her first mortgage or take out an equity loan to make repairs or improvements, the City has created an administrative policy pertaining to subordination requests. 6. Recipient Selection Criteria: In addition to being income eligible as described above, applicants must meet the fallowing selection criteria: Applicants will be selected on a first came, first qualified basis • Applicant may not currently awn or have assets exceeding $15,000 (monetary gifts and real estate are included in the asset calculation; retirement accounts are not} • Must be ownerloccupant • Mortgage payments and taxes must be current 1 paid up to date • Must provide proof of current homeowners insurance Sponsor Selection Criteria: N1A. Na sponsors are utilized for the C}wner-Qccupied Rehabilitation program. 8. Additional Information: The home must be located in the City's municipal boundaries; the appraised value of the Name may not exceed the maximum sales orice allowed in the SHIP program far existing units; and the homeowner must agree to maintain the home free of any code violations after rehabilitation work is completed. C. Name of the Strategy: Land Acquisition Summary of the Stratepy: 'this strategy will provide funds to acquire properties far future development by nan-profit, public agencies ar far prafit developers. Properties will be acquired through deed and tax sales, the foreclosure of government liens and through private purchases. Properties will be donated andlor Bald, competitively to nan-profit agencies that will use the Delray Beach Renaissance Program for the develapment of the property. properties sold corpetitively to far prafit developers must be utilized far the develapment of affordable housing. Construction, rehabilitation, or emergency repairs must be completed either with one year immediately preceding the date of conveyance of title ar within 24 months of the close of the applicable State fiscal year. pragram regulations do not support land banking, Eligible housing occupied by an eligible applicant must be completed within the program expenditure timeline. If property is sold to a for-profit developer, applications will be accepted and awarded competitively using criteria including, but not limited to The following: . gyp. • Financial strength of the agency • Ability of developer to complete the develapment by the deadlines established by the State • Capacity of the developer • Features of the proposed hawse{s} • Marketing plan for the sale ofi the house{s} • Whether or not the agency employs personnel from the Welfare Transition Program • Whether the proposed housing is compatible with the neighborhood in terms of design and size • Affordability of house{s} being built 2, Fiscal Years Covered: State fiscal years 200712008, 200812009 and 200912010. 3. Income Categories to be served: Very-low, low-, and moderate-income limits used are those as defined by U.S. Department of Housing and Urban Development {HUD} and distributed by the Florida Housing Finance Corporation for use in the SHIP Program 4. Maximum award is noted on the Housing Delivery Goals Charts; The maximum purchase price far a "buildable lot of record" as defined in the Gity's Land Development Regulations will be $40,000. The maximum purchase price for aggregate lots or large tracts of lands shall be determined by the appraised value at time of purchase. 5, Terms, Recapture and Default: The loan far the value of the land will be at 0°l~ interest. The loan will be recaptured when the property is sold. Recipient Selection Criteria: In addition to being income eligible as described above, applicants must meet the same selection criteria for recipient's under Strategy A: Purchase Assistance, 7. Sponsor Selection Criteria: Eligible sponsors must meet the following selection criteria: • designated 501{c}{3} non-profit organization under IRS guidelines; • legally operating within the jurisdiction of the City of Delray Beach and/or Palm Beach County, • has demonstrated track record and production experience in the construction and delivery of affordable housing; • preference will be given to sponsors that employ personnel from Welfare Transition Program. p. Narne of the Strategy: pilaster Relief -11- 1. Summary of the Strategy: In the event of a natural disaster (as declared by Executive order), SHIP funds will be used to leverage available federal and state funds to provide assistance to income eligible households for the purpose of repairing eligible housing. GeneraNy, such needs may include: purchase of emergency supplies for eligible households to weatherproof damaged homes, interim repairs to avoid further damage, tree and debris removal required to make individual housing units habitable, and post disaster assistance with non-insured repairs. 2. Fiscal Years Covered; State fiscal years 2007!2008, 2008!2009 and 200912010. Income Categories to be served: Very-low, low- and moderate-income limits used are those as defined by U.S. Department of Housing and Urban Development (HUD} and distributed by the Florida Housing Finance Corporation for use in the SHIP Program. 4. Maximum award as noted on the Housing Delivery Goals Charts: The maximum award for this strategy is $15,000 per unit. 5. Terms, Recapture and Default: Assistance will be provided in the form of a grant, so individual households will not be required to repay funds used for disaster assistance. In the event that the Gity receives reimbursement from federal or state sources, such repair funds will be utilized in accordance with the approved Local Housing Assistance Plan in effect at the time the funds are disbursed. 6. Recipient Selection Griteria: In addition to being income eligible as described above, applicants will be served on a first come, first-served basis, pending fund availability. Residence must be located within the municipal boundaries of Delray Beach. 7. Sponsor Selection Griteria: NIA. Additional Information; This strategy will be implemented only in the event of a natural disaster declaration using any SHIP funds that have not been encumbered. E. Name of Strategy: Sub-Recipient Housing Partnership Program. This strategy shall not be used in conjunction with any other assistance program offered by the City of Delray Beach. 1. Summary of the Strategy: This strategy aNocates 0 % interest, deferred payment loans to a Community Land Trustlnon-profit sub-recipient to be applied towards the principal reduction of construction of affordable single family units within the Community Land Trust. 2. Fiscal Years Covered: State fiscal years 2007/2008, 200812009 and 200912010. -12- Income Cate Dries to be served: Very-law, law- and moderate-income limits used are Chase as defined by U.S. Department of Housing and Urban Development {HUD} and distributed by the Florida Hausir~g Finance Corporation far use in the SHIP Program. ~. Maximum award is noted on the Housing Delivery Goals Charts: The maximum award is limited to $75,000 however, the maximum is not automatically provided on an individual basis; rather, the amount of subsidy awarded will be the minimum amount necessary to enable the buyer to purchase the property at a monthly payment affordable to him or her. City subsidy may not exceed mortgage loan amount. 5. Terms, Recapture and Default: Assistance will be provided to each eligible Community Land Trust property on a one time basis. Subsidy awards will be evaluated individually on a case-by-case basis in accordance with SHIP income guidelines and will require final approval by the City's Community Improvement Director. The subsidy will be required to be excluded from the applicant's original purchase price in the re-sale formula and is to appear as a construction cost buy-down to maintain the unit's affordability in perpetuity. Assistance will be provided to eligible sub-recipient partner in the form of a frfteen (15} year, 0°lo interest, forgivable deferred loan for amounts greater than $5,000 but less than $35,000. For amounts equal to ar greater than $35,000, assistance will be provided in the form of a thirty {30} year, 0°~o interest, forgivable deferred payment loan. All loan awards are secured with an all inclusive agreement between the City and Community Land Trust. Repayment of the full loan award will be immediately due to the City in the event any '"qualifying event{s}" occur prior to expiration of the note. Qualifying Events shrall be: a. The Community Land Trust sells ar transfers ownership of the property in a manner such that the property is no longer held in trust for affordable housing purposes; b. The Community Land Trust dissolves and/ar ceases to exist as a 501(c}{3} not-for- profit corporation; c. The unit is rented by homeowner without prior authorization from the City; d. The unit is refinanced without prior authorization from the City; e. The occupant fails to fallow guidelines of the Community Land Trust. Such repaid funds will be utilized in accordance with the approved Local Housing Assistance Plan in effect at the time the funds are repaid. If no °qualifying events}" occur prior to the expiration of the agreement, the loan shall be totally forgiven. 6. ~onsor Selection Criteria: Eligible sponsors will be selected via the City's Request for Proposal (RFP} process and must meet the following selection criteria: a. Designated 501(c}{3} non-profit organization under IRS guidelines; b. Legally operating Community Land Trust within the jurisdiction of the City of Delray Beach; c. Has demonstrated track record and production experience in the construe#ion and .~~. delivery of affordable housing; d. Possess a partnership agreement with the Gity of Delray Beach to participate and further its goals in the delivery of affordable housing to the Gity's very-low, low- and moderate-income households. 7. Recipients Selection Criteria: In addition to serving an income eligble applicant as described in the Purchase Assistant Strategy, applicants must meet the following selection criteria; a. Applicants will be selected on a first come, first qualified basis b. Must be first-time hamebuyer{s}, which is defined as one of the following: • someone who has not owned a home during the past three years • a single parent who has been divorced and displaced within the 12 month period prior to time of application, and whose household includes children under the age of 18 • a displaced victim of domestic abuse within the 12 month period prior to time of application, and whose household includes children under the age of 18 • a person displaced as a result of a government action (other than eviction from public housing; and those who have special needs according to Chapter 67- 37.002{13} c. Must have a bank account d. Applicant must have an accepted contract far a home and have applied for a first mortgage with a lender e. The applicant must have attended and completed an approved home buyer education course {i.e., at least four hours in length and conducted in a classroom setting} approved by the Neighborhood Services Division F. Name of Strategy: Foreclosure Assistance: 1. Summary of the Strategy. This strategy allocates payment assistance in the form of a deferred payment loan to any homeowner within 0-100°l0 of the Area Median Income {AMI} whose home is in the process of foreclosure due to extenuating circumstances as listed below in the Terms, Recapture and Default section. 2. Fiscal Years Covered: State fiscal years 20071200$, 2008!2009 and 200912010. 3. Income Categories to be Served: Very-low, low- and moderate-income limits used are those as defined by U.S. Department of Housing and Urban Development {HUD} and distributed by the Florida Housing Finance Corporation for use in the SNIP Program. 4. Maximum award is noted an the Housing Delivery Goals Charts: The maximum award is limited to $10,000 inclusive of all attorney feeslcourt costs; however, the maximum is not automatically provided an an individual basis; rather, the amount of subsidy awarded will be the minimum amount necessary to enable the buyer to continue to retain ownership - '14 - and regularly make hislher monthly payments. 5. Terms, Recapture and Default: a. Assessed value of home must be equal or less than SHIP purchase price limit. b. Completion of past-counseling through approved counseling agency. c. Foreclosure applicants must show that the nonpayment of their mortgage is not through their own doing. Eligible reasons are: {1} Loss of employment. {2}Sudden medical expenses. {3} Divorce or separation. {4} Death in the family. {5} Unforeseen home repair bills. Applicants must also show that they will be able to keep the house out of default, genuinely want to keep the house, and must show they can make monthly mortgage payments. Additionally, eligibility far foreclosure assistance shall be done in an expedited manner and may include alternative forms of documentation, such as current pay stubs and benefit letters, as well as oral verification of employment wages, other income, and assets. d. Recapture: Loan awards up to $10,000 will be provided in the form of a 0°lff interest, deferred payment loan secured by a lien agreement forgivable after five {5} years. Repayment of the full loan award will be immediately due to the City in the event any "qualifying event{s}fl accur prior to expiration of the Hate. Qualifying event{s} are considered to be: sale of unit or transfer of title {except far major healthcare expenses or by inheritance} • the assisted homeowner fails to continuously occupy the home • the unit is leased/rented without prior authorization of the City • unit is refinanced without prior authorization of the City • failure to follow the guidelines of the LHAP Such repaid funds will be utilized in accordance with the approved Local Housing Assistance Plan in effect at the time the funds are recaptured. If no "qualifying event{s}" accur prior to the expiration of the note, the loan is totally forgiven. In the event the homeowner wishes to refinance his ar her first mortgage or take out an equity loan to make repairs ar improvements, the City has created an administrative policy pertaining to subordination requests. e. Leveraging -Leveraging may be used with this strategy; priority will be given to persons previously assisted with SHIP funds for eligible default reasons, -15- G. Name of the Strategy: Florida Homebuyer Opportunity Program 1. Summary of the Strategy: This strategy is designed in response to the legislative proviso requiring SHIP local governments to expend 2409-2414 funds to ensure that residents of the state derive the maximum possible economic benefit from the federal first time homebuyer tax credit created through The American Recovery and Reinvestment Act of 2009 by providing subordinate down payment assistance loans to first time homebuyers for owner occupied primary residences that can be repaid by the income tax refund the homebuyer is entitled to under the First Time Homebuyer Credit. The state program shall be called the "Florida Homebuyer {opportunity Program." 2. Fiscal Years Covered: 2009(2014 until expiration of the Florida Homebuyer Opporkunity Program Tax Credit. 3. Income Categories to be served: Up to $75,444 for single taxpayers or $150,000 far joint filers. {There is no requirement to reserve 3Q percenf of the funds for awards to very-law- income persons ar 30 percent of the funds for awards to low-income persons; and (here is no requirement to expend 75% of funds far construction, rehabilitation ar emergency repair. 4. Maximum award is the principal balance of the loans provided and shall not exceed 14°l0 of the purchase price or $8,044 whichever is less. 5. Terms, Recapture and Default: Loan must be repaid within the earlier of 18 months or 10 days after receiving federal income tax refund and shall incur a penalty if left unpaid (the term of such penalty is outlined in the loan agreement}. If the City receives repayment from the homebuyer within 18 months after the closing date of the loan the county or eligible municipality shall waive all interest charges. A homebuyer who fails to fully repay the loan within 18 months shall be subject to the above mentioned repayment terms. All funds repaid to shall be considered "program income" as defined in s. 420.9471 {24}. 6. Recipient Selection Criteria: The maximum income limit shall be Adjusted Gross Income of $75,444 far single taxpayer households or $150,404 for joint-filing taxpayer households which is equal to that permitted by the American Recovery and Reinvestment Act of 2449. -16- III. ~FIAP INCENTIVE STRATEGIES Secfion 420.9077{i6), F.S. A. Name of the Strategy: Expedited Permitting Permits as defined ins. 163.3164(7) and (8j for affordable housing projects are expedited to a greater degree than other projects. Established policy and procedures: The City has in place a "One Stop Shop" permitting process fora co- ordinated review and approval of all developmental applications submitted through the Building Division. The system features a fully automated application tracking software package that provides the opportunity to readily identify delays in review time from various departments within within the permit process. Applications submitted for affordable housing projects will receive a label marking it as such and prioritized for review. Applications received are processed by designated persons under the approved expedited permitting process developed for this program. In addition, it is the policy of the City of Delray Beach Planning and Zoning and Community Improvement Departments to implement an expedited permit process for affordable Mousing subdivisions. An affordable housing subdivision is one that: ^ Contains at least 10 affordable units. For projects meeting the above criteria a single point of contact shall be designated {the Director of Planning and Zoning, and/or the Director of Community Improvement or either of their designees). 'phis individual(s) shall be responsible for coordinating all matters relating to the review services for the project and shall provide periodic status reports to the business's project manager. Apre-application meeting shall be conducted and shall include the preparation of a time table for project completion. The project shall receive priority at every phase and project review shall include face to face meetings to facilitate the expediting process. Comments relative to the development review application shall be provided to the applicant within ten (10) business days (Development Application) and ffteen (15) business days (Permit Application) after the submission of a complete application by the applicant. Thereafter, the City and the applicant shall make a mutual commitment to provide development and permit application review comments and plans or revisions thereto in a thorough and timely manner. Pursuant to LDR Section 2.4.8{C}(1 j, with submittal of an application that is deemed complete Class IV and V site plan development proposals shall be processed within seven -17- {7} weeks and applications involving re-zar~ings or Conditional Uses will require an additions! four {4} weeks. Class I through lil site development applications will be processed in five {5} weeks or less. As identified above, initial building permit comments shall be provided within fifteen {15} business days of a complete submittal Thereafter ali efforts shall be made to expedite building permits after all outstanding comments have been addressed with the goal of issuing the permits within thirty {3fl} business days after submittal. B. Name of the Strategy: Ongoing Review Process An ongoing process which provides for a review and consideration of local policies, ordinances, regulations and plan provisions that increase the cost of housing prior to its adoption. Established policy and procedures: The Planning and Zoning Department reviews all proposed new City policies or changes to the LDR's to determine effects, if any, on the cast of housing. If it is determined that there is an impact, an analysis is prepared by appropriate department staff and submitted to City Commission for review prior to its approval. C, Name of the Strategy: Impact Fees Requirements An an-going process to allow far the payment of Impact fees associated with new construction of affordable housing units. a. Established policy and procedures: The City has been unsuccessful in petitioning the County to waive impact fees associated with new construction of affordable housing units. The County does provide an impact fee credit for units built on a lot, which had a previous residential unit on the site. The Neighborhood Services staff provides the research on properties to identify these credits wherever possible. When no credit is applicable, the City may use SNIP funds to pay the impact fees. Q. Name of the Strategy: Waiver of BuHding Permit Fees An ongoing process for reducing the cast of building or rehabilitating affordable housing. a. Established policy and procedures: The City does not have a policy regarding the waiver of Building Permit Fees at this time. E. Name of the Strategy: Allowance of Increased Density Levels An ongoing process to review zoning regulations for the purpose of allowing increased density to encourage development of affordable housing unit, -18- a. Established policy and procedures: The Housing Element of the City's Gomprehensive Plan provide for increases to density when it can be demonstrated that such increases will lead to an affordable unit, provided that other policies of the Comprehensive Plan are met. The Land Development Regulations allow for increased densities in planned unit development on acase- by-case basis. In addition, flexible densities are allowable pursuant to the City's Workforce Housing Qrdinance. This does not apply to in-fill housing and the lack of large vacant parcels which makes this incentive limited in its effect. F. Name of the Strategy: Reservation of Infrastructure Capacity An ongoing process to provide for infrastructure improvements in deteriorating neighborhoods a. Established policy and procedures: Provide Description Infrastructure facilities currently exist throughout the entire City. However, where there are visible signs of deterioration, Comprehensive Plan policy provides for prioritization in scheduling necessary improvements. As each year's infrastructure improvement schedule is prepared, priority is given to neighborhoods with concentrations of infrastructure deficiencies. G. Name of the Strategy: Reduction of Parking and Set Back Requirements An ongoing process to encourage development of affordable units by allowing for reduced parking and set back requirements a. Established policy and procedures: Provide Description Regulations require two parking spaces per dwelling unit beyond the required front yard set back in Single Family Zoning Districts. As an incentive to affordable housing, one of the required parking spaces may be located within the 25' front yard setback reducing haphazard street parking." H. Name of the Strategy: Preparation of a printed inventory of locally owned public lands suitable for affordable housing. An ongoing process to identify land suitable for development of affordable housing. a. Established policy and procedures: Provide Description The Planning Department has compiled a complete list of City awned lands of 3 acres or more along with available single family tats. The Community Redevelopment Agency maintains a list of vacant parcels, which they own or have under contract suitable for in-fill residential construction. These lists are made available to the public, private developers and non-profit agencies and is updated an an annual basis. -79- I. Name of the Strategy; Reduction of Landscape Requirements An ongoing process to encourage the development of affordable units by allowing for a reduction of the City's landscape requirements a. Established policy and procedures: Provide Description The current requirements at Section 4.6.164H~ for Single Family Housing is that 20°l° of all pervious lot area be planted in shrubs and ground cover and the remaining 80% of the area be planted in turf. In support of projects participating in the City's Affordable Housing Programs the requirements of the landscape code are reduced to allow for only 10°l° of the pervious single family lot area be planted in shrubs and ground cover and that they be installed in the front and side setbacks. It is estimated that $1,20(} will be reduced from the cost of producing one unit. -20- IV. EXHIBITS: A. Administrative Budget for each fiscal year covered in the Plan. Exhibit A. B. Timeline for Encumbrance and Expenditure: Chaprer67-~zoo~fs~~d~ and(fJ 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 {HDGCj For Each Fiscal Year Covered in the Plan: Chapter sx-~~.~s}, r.a.c. Completed HDGC for each fiscal year is attached as Exhibit C. D. Certification Page: cnapr~rs~-s~.QOS~~~, F.A.C. Signed Certification is attached as Exhibit D. E. Adopting Resolution: secrian 420.9t?72(2)(b)2, F.s. Original signed, dated, witnessed or attested adopting resolution is attached as Exhibit E. Resolution 28-47 Resolution 61-48 {Amendments December 9, 2408] F. Program Information Sheet: Completed program information sheet is attached as Exhibit F. G. Qrdinance: section a~o.sn~~rs~~~}, F.s. If changed from the original ordinance, a copy is attached as Exhibit G. This item has not changed as of May 2047. H. Interlocal Agreement: secrron a2o.so72, F.s. A copy of the Interlocal Agreement if applicable is attached as Exhibit H. This item is not applicable as of May 2447. . 21.