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Res 35-10KI?SOLUTION NO. 35-10 A KESOl_U'I~ION OF THE CI"1'Y COMMISSION OE' THE CITY Of llELRAY BEACH, ILOKIllA, AM1:NllING THE APPKOVEll LOCAL HOUSING ASSISTANCE: PLr1N AS APPKOVE;ll AT "I'HE APKIL 20, 2010 CI"I'Y COMMISSION ME;L-:T1NG AS KE;(ZUIKI/ll 13Y THE: STATI/ HOUSING INITIATIVES PAKTNEKSHIP PROGRAM ACT, SUBSECTIONS 420907-4209079, hLORIllA STATUTES; ANll RULE: CHAPTEK 67-37, E'LOKII~A AllM1NISTKATIVE COllE; AUTHORZING ANll L~IKE;C"PING THE: MAYOK TO EXECUTE ANY NECESSARY llOCUM>/NTS ANll CERTIhICATIONS NEEllE;ll BY THE: STATE:; AUTHORIZING "I'HE SUBMISSION Ol~ THE; LOCAL EiOUSING ASSISTANCE: PLAN f'OK KE:VIEW ANll APPKOVAL BY 'I'H1: ELORII~A HOUSING E'INANCE CORPORATION; ANll PKOV1llING AN EI~hECIVE llATE. WHE;KE:AS, the State of E'lorida enacted the William E. Sadowski Affordable Housing Act, Chapter 92-317 of hlorida Sessions Laws, allocating a portion of documentary stamp taxes on deeds to local governments for the development and maintenance of affordable housing; and WHEKEAS, the State Housing Initiatives Partnership (SHIP) Act, ss. 420907-420.9079, Florida Statutes (1992), and Kule Chapter 67-37, hlorida Administrative Code, requires local governments to develop a one- to three-year Local Housing Assistance Plan outlining how funds will be used; and WHEKEAS, the SHIP Act requires local governments to establish the maximum SHIP funds allowable for each strategy; and WHEKEAS, on April 20, 2010, the City Commission of the City of Delray Beach, approved the fY 2010-2013 LHAP via Kesolution 19-10; and WHEREAS, the SH1P Keview Committee has requested that revisions be made to the Plan to include a green initiative and to remove the Florida Homebuyer Opportunity Program before final approval. All other terms of the LHAP approved via Kesolution 19-10 shall remain the same. NOW THEREf'OKE BE IT R1=,SOLVE:ll BY THE: CITY COMMISSION OIa TH)J CITY OE' llELRAY BEACH hLORIllA AS E'OLLOWS: Section 1. The City Commission of the City of llelray Beach hereby approves the Local 1-lousing Assistance Plan as amended and, as attached and incorporated hereto for submission to the Florida Housing finance Corporation as required by ss. 420907-420-9079, hlorida Statutes, for Escal years 2010-2011, 2011- 201? and 2012-2013. Section 2. The Mayor is hereby designated and authorized to execute any documents and certifications required by the 1Florida Housing 1~'inance Corporation as related to the Local Housing Assistance Plan and to do all things necessary and proper to carry out the term and conditions of said program. Section 3. 'I1iis resolution shall take effect immediately upon i ~ adoption. PASSSI~:1~ r1N1~ All()PTL;1~ in regular session on this the da of v 010. ATTL:ST. M A Y (~ ll City Clerk 2 1Zl~;S. NU. 35-10 [IT4 OF DELR114 BEp DELRAY BEACH All-America City 1 1 1993 goo, CITY CLERK 100 N.W. 1st AVENUE DELRAY BEACH, FLORIDA 33444 561/243-7000 CERTIFICATION I, CHEVELLE D. 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. 35-10 as the same was passed and adopted by the Delray Beach City Commission in regular session on the 6th of July 2010. IN WITNESS WHEREOF, I have hereunto set my hand and the official seal of the City of Delray Beach, Florida, on this the 19th day of July, 2010. C\ • ~ . Chevelle D. Nubin, CMC City Clerk City of Delray Beach, Florida (DEAL) 2VICE PERFORMANCE INTEGRITY RESPONSIBLE INNOVATIVE CITY OF DELRAY BEACH ~N~~GRl-~Y 0 RESPUNSIBLF O ~Lti ~ I ~~UG~T `rP ~~` O~ ~ O cl. 'r J y © 3 y O Jr ~ 7~ ~s I ~ p~~ TS IN THE p~~ State Housing Initiatives Partnership (SHIP) LOCAL HOUSING ASSISTANCE PLAN (CHAP) May 2010 FISCAL YEARS COVERED 201012011 2011/2012 201212013 -1- TABLE OF CONTENTS Program Description (Chapter 67-37.005 F.A.C. and Section 420,9072, F.S.) 3 - 7 II. LHAP Housing Strategies (Chapter 67-37.005(5), F.A.C. 7 -16 • Purchase Assistance • Owner-occupied Housing Rehabilitation • 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 Building Permit Fees • Allowance 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 Charts (HDGC) • Certification to Florida Housing Finance Corporation • Resolutions • Program Information Sheet -2- I. PROGRAM DESCRIPTION Chapter 67-37.005 F.A.C. and Section 420.9072, F.S. A. Name of the participating local government and Interlocal if Applicable: Section 420.9072(5), F.S. 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: Chapter 67-37.002,F.A.C. X 2010/2011 X 2011 /2012 X 2012/2013 D. Governance: Chapter67-37.005(3) and (5)(i)F.A.C. and Section 420.9071(14)F.S. The SHIP Program is established in accordance with Section 420,907-9079, Florida Statutes and Chapter 67-37,007 Florida Administrative Code. The SHIP Program furthers the housing element objective of providing increased housing opportunities for low- income persons. Cities and Counties at all times must be in compliance with these applicable statutes and rules. E. Local Housing Partnership Section 420.9072(1)(x), 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 Delray Beach Housing Authority, the Delray Beach Community Land Trust, the Delray Beach Community Development Corporation, the Consumer Credit Management Services, Inc,, 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 67-37.007(1)(b)(c), F.A.C. and Section 420.9075(1)(x) and (1)(b3, and (1)(c), F.S. The Plan is intended to increase the availability of affordable residential units by combining -3- 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. 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 for increasing the supply of affordable housing for Delray Beach residents. Emphasis remains on combining neighborhood improvements with the provision of homeownership opportunities for the very-low and low income households. G. Public Input: Chapter67-37.005(3), F.A.C. Public input was solicited through an annual Community Needs Assessment Meeting whereby the public is invited to attend and provide comments on how program funds should be allocated. H. Advertising and Outreach Cnapters7-s7.oo5(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 other organized methods that may be available, SHIP staff participates in local homebuyer fairs and workshops, Discrimination: Section a2o.9o75(3)(c), F.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 origin, 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: Chapter67-37.005(5)(g),F.A.C. Support services are available from various sources. The City works with the Delray Beach Community Development Corporation, Housing Partnership and Consumer Credit Management Services, Inc. to provide 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. K. Purchase Price Limits: Section 420.9075(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 -4- 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 City 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 $329,628,60 maximum for new home construction and existing home purchases allowed by the U. S. Treasury Department (Revenue Proclamation 2009-18) 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: Chapter 67-37.005(5)(e), F.A.C..and Section 420.9071(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% 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. 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 Personnel" 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 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 -5- deemed essential by City 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 67-37.005(6J(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: Section 420.9075(3)(e)and (4) (~, F.s. In the case of rental housing, the staff or 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 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 $3,000 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 for continued occupancy by eligible persons. 0. Administrative Budget: Chapter67-37.005(6)03, F.A.C.. A detailed listing including line-item budget of proposed Administrative Expenditures is attached as Exhibit A. These are presented on an annual basis for each State fiscal year submitted. The City of 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% 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% of the local housing distribution plus 5% 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% of program income deposited into the trust fund, except that small counties, as defined in s. 120.52(17), and eligible municipalities receiving a local housing distribution of up to $350,000 may use up to 10 percent of program income for administrative costs. -6- The City of Delray Beach has adopted the above findings in the attached resolution, Exhibit E. The Neighborhood Services Division of the Community Improvement Department shall 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 HOUSING STRATEGIES: Chapter67-37.005(5), F.A.C. A. Name of the Strategy: Purchase Assistance Summary of the Strategy: This strategy assists eligible first-time homebuyers within 0-120% of the Area Median Income (AMI) with a 0% interest, deferred payment loan to be applied towards down-payment, rehabilitation costs (if applicable), closing costs and principal reductions for the construction of new and/or purchase of existing single family homes, townhouses and villas. New construction properties must be constructed by approved contractors/developers. 2. Fiscal Years Covered: State fiscal years 201012011, 2011/2012 and 201212013, 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 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. Total 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% interest, forgivable deferred loan for amounts 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% interest, forgivable deferred loan. All loan awards will be secured with a second mortgage/promissory note and will be forgiven specific to the duration of the note. 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 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 City. -7- 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 City has created an administrative policy pertaining to subordination requests. The subordination policy, attached as Exhibit "I", is located in the Neighborhood Services Division and is available for public access. 6. Recipient Selection Criteria: 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; o 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 Applicants must contribute a minimum of 2% of the purchase price toward the transaction (out-of-pocket expenses are included in this calculation); 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; o May not currently own or have assets exceeding $25,000 (monetary gifts and real estate are included in the asset calculation; retirement accounts are not); o SHIP funds are reserved in the individual's name for asix-month period, provided that available SHIP funds remain, 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; • 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-low, low- and moderate-income households; • preference will be given to sponsors that employ personnel from Welfare Transition -8- Program, 8. Additional Information: New units constructed must be located in the CDBG designated target area. Existing homes must be located within the City'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: Owner-Occupied Housing Rehabilitation Summary of the Strategy: This strategy provides 0% 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 building/electricallplumbing problems, health and 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 2010/2011, 2011/2012 and 201212013. 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 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. 5. Terms, Recapture and Default: Assistance greater than $5,000 but less than $20,000 will be provided to eligible households in the form of a 0% 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% 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 will be 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 (except for major healthcare expenses or by inheritance); • the assisted homeowner fails to continuously occupy the home; • the unit is rented; • the unit is refinanced without prior authorization of the City. -9- 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 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 following selection criteria: • Applicants will be selected on a first come, first qualified basis; • Applicant may not currently own 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 currentlpaid up to date; • Must provide proof of current homeowners insurance. 7. Sponsor Selection Criteria: NIA. No sponsors are utilized for the Owner-Occupied Rehabilitation program. Additional Information: The home must be located in the City's municipal boundaries; the appraised value of the home may not exceed the maximum sales price allowed in the SHIP program for existing units; and the homeowner must agree to maintain the home free of any code violations after rehabilitation work is completed. The property will be monitored annually by Housing Inspector for adherence of this responsibility. In the case of default, income eligible heirs residing in the property can assume the second mortgage, 9. ENERGY EFFICIENCY and Green Housing-related repairs shall be encouraged. The local utility provider may perform a free Energy Audit. Every effort will be made to leverage SHIP funding with Utility Rebates for insulation, appliances replacement and more, Repairs shall also be guided by the minimum building code which is the 2007 Florida Building Code Residential. These repairs shall include but not be limited to the following: ^ Window repair, replacement and weather stripping ^ Paints and primers that meet the Green Seal G-11 Environmental Standard ^ Commodes or water closet with 1.3 gallons per flush capacity, ^ Building envelop sealing specifications ^ Installation of Energy Star Ceiling Fans ^ Integrated Pest Control Management that does not use insecticides. ^ Proper ventilation when undertaking substantial rehabilitation ^ Installation of Energy Star efficient lighting, including fixtures ^ Installation of efficient equipment for heating, cooling and water heating. •10- 0 Efficient air distribution, where ducts are installed with minimum air leaks and are effectively insulated. All General Contractors utilizing funding are required to be Leadership in Energy and Environmental Design (LEED) Certified. LEED certification is the nationally accepted benchmark for the design, construction and operation of high performance green buildings. LEED gives building owners and operators the tools they need to have an immediate and measurable impact on their buildings' performance. LEED promotes awhole-building approach to sustainability by recognizing performance in five key areas of human and environmental health: sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality. C. Name of the Strategy: Land Acquisition Summary of the Strategy: This strategy will provide funds to acquire properties for future development by non-profit, public agencies or for profit developers. Properties will be acquired through deed and tax sales, the foreclosure of government liens and through private purchases. Properties will be donated and/or sold, competitively to non-profit agencies that will use the Delray Beach Renaissance Program for the development of the property. Properties sold competitively to for profit developers must be utilized for the development of affordable housing. Construction, rehabilitation, or emergency repairs must be completed either with one year immediately preceding the date of conveyance of title or within 24 months of the close of the applicable State fiscal year. Program 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 afor-profit developer, applications will be accepted and awarded competitively using criteria including, but not limited to The fo-lowing: • Financial strength of the agency; • Ability of developer to complete the development by the deadlines established by the State; • Capacity of the developer; • Features of the proposed house(s); • Marketing plan for the sale of 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 2010/2011, 2011/2012 and 2012/2013. •11- Income Cateqories 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 fora "buildable lot of record" as defined in the City'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 for the value of the land will be at 0% interest, The loan will be recaptured when the property is sold. 6. Recipient Selection Criteria: In addition to being income eligible as described above, applicants must meet the same selection criteria for recipients under Strategy A: Purchase Assistance. 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. D. Name of the Strategy: Disaster Relief 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. Generally, 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 2010/2011, 2011/2012 and 201212013. 3. Income Cateqories 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. -12- 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 City 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 Criteria: In addition to being income eligible as described above, applicants will be served on a first-come, first-qualified basis, pending fund availability. Residence must be located within the municipal boundaries of Delray Beach. 7. Sponsor Selection Criteria: N/A. 8. 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 allocates 0 % interest, deferred payment loans to a Community Land Trust/non-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 2010/2011, 201112012 and 2012/2013. 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. 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. -13- Assistance will be provided to eligible sub-recipient partner in the form of a fifteen (15) year, 0% interest, forgivable deferred loan for 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% 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 shall be: a. The Community Land Trust sells or 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/or ceases to exist as a 501(c)(3) not-for- profitcorporation; 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 follow 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 event(s)" occur prior to the expiration of the agreement, the loan shall be totally forgiven. 6. Sponsor 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 construction and delivery of affordable housing; d. 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-low, low- and moderate-income households. Recipients Selection Criteria: In addition to serving an income eligible 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 homebuyer(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; •14- • 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. Applicants must contribute a minimum of 2% of the purchase price toward the transaction (out-of-pocket expenses are included in this calculation). e. Applicant must have an accepted contract for a home and have applied for a first mortgage with a lender. f. 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. g. SHIP funds are reserved in the individual's name for asix-month period, provided that available SHIP funds remain. 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 0-120% 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 201012011, 2011/2012 and 2012/2013. 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 award is limited to $10,000 inclusive of all attorney feeslcourt costs; 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 continue to retain ownership and regularly make his/her monthly payments. Terms, Recapture and Default: a. Assessed value of home must be equal or less than SHIP purchase price limit, b. Completion of post-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. •15- 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 for 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% 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)" 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; • 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)" 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 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. III. LHAP INCENTIVE STRATEGIES Section 420.9071(16), F.S. A. Name of the Strategy; Expedited Permitting Permits as defined in s. 163.3164(7) and (8) for affordable housing projects are expedited to a greater degree than other projects. 1. Established policy and procedures: The City has in place a "One Stop Shop" permitting process for a coordinated 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 -16- 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 housing 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), This 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. A pre-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 fifteen (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), with submittal of an application that is deemed complete Class IV and V site plan development proposals shall be processed within seven (7) weeks and applications involving re-zonings or Conditional Uses will require an additional four (4) weeks. Class I through III 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 all efforts shall be made to expedite building permits after all outstanding comments have been addressed with the goal of issuing the permits within thirty (30) 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. -17- 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 cost 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 on-going process to allow for the payment of Impact fees associated with new construction of affordable housing units. 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 SHIP funds to pay the impact fees, D. Name of the Strategy: Waiver of Building Permit Fees An ongoing process for reducing the cost 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, a. Established policy and procedures: The Housing Element of the City's Comprehensive 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 Ordinance. 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 -18- 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 owned lands of 3 acres or more along with available single family lots. 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 on an annual basis. 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 Established policy and procedures: Provide Description The current requirements at Section 4,6,16(H) for Single Family Housing is that 20% 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% 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 $1,200 will be reduced from the cost of producing one unit. -19- IV. EXHIBITS: A. Administrative Budget for each fiscal year covered in the Plan. Exhibit A. B. Timeline for Encumbrance and Expenditure: Chapter 67-37.005(6)(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 (HDGC) For Each Fiscal Year Covered in the Plan: Chapter 67-37.005), F.A.C. Completed HDGC for each fiscal year is attached as Exhibit C. D. Certification Page: Chapter67-37.005(7), F.A.C. Signed Certification is attached as Exhibit D. E. Adopting Resolution: Section 420.9072(2)(b)2, F.s. Original signed, dated, witnessed or attested adopting resolution is attached as Exhibit E. Resolution 19-10 Program Information Sheet: Completed program information sheet is attached as Exhibit F. G. Ordinance: Section 420.9072(3)(a), F.S. If changed from the original ordinance, a copy is attached as Exhibit G. This item has not changed as of May 2007. H. Interlocal Agreement: Section 420.9072, F.s. A copy of the Interlocal Agreement if applicable is attached as Exhibit H. This item is not applicable as of May 2007. Subordination Policy: A copy of the Subordination Agreement attached as Exhibit I. -20- ADMINISTRATIVE BUDGET FOR EACH FISCAL YEAR A Admin Budget Fiscal Year 2010-2011 Salaries and Benefits Office Supplies and Equipment Travel Perdiem Workshops, etc Advertising Title: LHAP Template 2010 No. 001 67-37.005(1), F.A.C. Effective Date: 11109 $ 5,017.00 $ - $ - $ 250.00 267.00 Fiscal Year 2011-2012 Salaries and Benefits $ 5,017.00 Office Supplies and Equipment $ - Travel Perdiem Workshops, etc $ - Advertising $ 250.00 $ 5,267.00 Fiscal Year 2012-2013 Salaries and Benefits $ 5,017.00 Office Supplies and Equipment $ - Travel Perdiem Workshops, etc $ - Advertising $ 250.00 $ 5,267.00 Exhibit A Budgeted amounts based on a distribution of 2009-2010 allocation fo $52,670 S 6 ~ ~_~c 8 >" e m r X w L V 10 d Q~ m W A Y -y J O a w U C N_ ~ ~ U W Q C m w E ~ c O m LL O W ~ J fa Q U W J ~ O F.. ~ E A z N 0 p, x n Ip x x x N Y M N N O O~ k ao r IO X x x ~ x a x M X N X X N k x O k W k X OG X h x b x x N • x M k N x K N k x x O k Q~ X O N 0 W x 0 A K k } ~ ,`~ ~0 d Q F LL < ~ °¢ ~ UQ t o a 4 a d ~ a rn c ~ - a` y~ 4 ? °a ~ s Y ~ ~~i t L a ~ ~ g w ~_ ~ ~ a E 3 w` - o c ~ 3 N ~ a LL m C I O ; d N o , A T d ~ ': U •, d A C .~ H u O 7 1 I 1 ~ R I 1 R i 1 ~ 1 ~ 1 i ~ 1 o °. 1 I j ~ 1 ~ 1 I I 1 I I 1 7 1 ~ 1 f r I t 1 I 1 I i i 1 U 1 L ~ N > r• A `y a i m 1 ~' N 1 ~ U 1 = LL O I I ~ 1 C i C Q 1 w i ~E L ~ 1 N i v m y t K W Q w r J Q U N LL W F a 0 LL W J m Q F W H t V Md W a m 0 O U :.~ d E d O 10 V O J O d N Z c O m r N O `u N m w r A u_ a a A m t C .~ a a F- N C O U d 0 v 0 •c v a v C N C 7 O m .~ m N 1") Q in d E v v ~_ U LL 2 LL w C n A c c Q E N v m L X W e Q W J Q U LL W H F ti O LL W J m Q H W F t V IC d m T 10 d O ~_ U C d E c d 0 10 V O J O d E N Z N O N H O OI 0 rn m r u N a N 0 O c_ a r L h 0 v 1. m a m L m a H C O u w 'O d 7 V 0 VI d S u A C 0 E E ~E A Q ~ -: m a Y y A Y U N N LL h LL N ~ N ~ O = c d c rn m 'S ~ a ~ o m w 6 w N t N ~ ~ L U E o x N E LL ~ N '~" Yl `. 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(2) All SHIP funds will be expended in a manner which will insure that there will be no discrimination on the basis of race, creed, religion, color, age, sex, familial or marital status, handicap, or national origin. (3) A process for selection of recipients for funds has been developed. (4) The eligible municipality or county has developed a qualification system for applications for awards. (5) Recipients of funds will be required to contractually commit to program guidelines. (6) The Florida Housing Finance Corporation will be notified promptly if the local government (or interlocal entity) will be unable to comply with the provisions the plan. (7) The Local Housing Assistance Plan shall provide for the expenditure of SHIP funds within 24 months following the end of the State fiscal year in which they are received. (8) The plan conforms to the Local Government Comprehensive Plan, or that an amendment to the Local Government Comprehensive Plan will be initiated at the next available opportunity to insure conformance with the Local Housing Assistance Plan. (9) Amendments to the approved Local Housing Assistance Plan shall be provided to the Corporation with in 21 days after adoption. (10) The trust fund shall be established with a qualified depository for all SHIP funds as well as moneys generated from activities such as interest earned on loans. (11) Amounts on deposit in the local housing assistance trust fund shall be invested as permitted by law. (12) The local housing assistance trust fund shall be separately stated as a special revenue fund in the local governments audited financial statements, copies of the audits will be forwarded to the Corporation as soon as available. Tide: LI IAP Template 2009 No. OU 1 67-37.0U5(I), F.A.C. Gf~fective Date: 11!09 Exhibit D Page 2 Certification 13) An interlocal entity shall have its local housing assistance trust fund separately audited for each state fiscal year, and the audit forwarded to the Corporation as soon as possible. (14) SHIP funds will not be pledged for debt service on bonds or as rent subsidies. (15) Developers receiving assistance from both SHIP and the Low Income Housing Tax Credit (LIHTC) Program shall comply with the income, affordability and other LIHTC requirements, Similarly, any units receiving assistance from other federal programs shall comply with all Federal and SHIP program requirements. (16) Loans shall be provided for periods not exceeding 30 years, except for deferred payment loans or loans that extend beyond 30 years which continue to service eligible persons. (17) Rental Units constructed or rehabilitated with SHIP funds shall be monitored at least annually for 15 years for compliance with tenant income requirements and affordability requirements or as required in Section 420.9075 (3)(e) (18) The Plan meets the requirements of Section 420-907-9079 FS, and Rule Chapter 67-37 FAC, and how each of those requirements shall be met. (19) The provisions of Chapter 83-220, Laws of Florida /ias or X_ has not been implemented. --, (note: Miami Dade County ill check "has^> ~~ itn J~~ / ~ 1, fitness Date OR (Seal) Chief Elected Official S. ~\C~.~ Type Name and Title Attest: ~ . ~\ ~~ ea~~ Page 1 of 2 ~EMUl~:ANDUM TO: Mayor and City Commissioners FROM; Lula Butler, Director, Community Improvement THROUGH: David Harden, City Manager DATE: June 28, 2414 SUBJECT: AGENDA iTElV18A. -REGULAR COMMISSION MEETING_OF JULY 6, 20]0 RESOLUTION NO, 35-10/AMENDMENT TO THE {CHAP} FOR FY 2010-2013 ITEM BEFORE COMMISSION City Commission authorization and approval of revisions to the Local Housing Assistance Plan {CHAP) for Fiscal Years 2414-2413, by adopting Resolution No. 35-14 pursuant to Title 67-37 of the Florida Administrative Code. BACKGROUND For the past eighteen {18) years, the City has received funds under the State Housing Initiatives Partnership {SHIP) Program. SHIP funds are generated from a portion of documentary stamp taxes collected throughout the State and held in the State's Housing Trust Fund for the development and maintenance of affordable housing. The State requires a Local Housing Assistance Plan {CHAP) outlining how the City plans to administer the SHIP funds once they are received. On February 23, 1993, under Ordinance #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 Code of Florida. The Neighborhood Services Division staff has administered the program and under the approved plans, has assisted Delray Beach residents with homeownership and housing rehabilitation opportunities. Attached is the Local Housing Assistance Plan for 2014-2413. The fallowing strategies; 1) Purchase assistance; 2) Owner-occupied rehabilitation assistance; 3) Land Acquisition; 4) Disaster Relief assistance; 5) Sub-Recipient Housing Partnership Program {Community Land Trust}; 6) Foreclosure Prevention; as well as several incentives within the CHAP, may be implemented during the next three years. The CHAP is based on last year's annual allocation of $52,670 per year for the three-year period. Revisions to the plan included the following: Revise to include Green Initiatives {energy efficiency) to Strategy B in the CHAP. http:llmiweb441lAgendas/Bluesheet.aspx?ItemID=335&.MeetingID=263 717124I4 Page 2 of 2 2. Revise the Housing Delivery Goals Charts to include all of the strategies included in Plan text with the maximum awards for each income category to be served. Included verbiage on page 10 of LHAP. 3. Included administrative policy pertaining to subordination requests. Attached as Exhibit "I" and referenced on Page 8; copy of the referenced policy as an exhibit to the LHAP. 4. Revise Plan text to add monitoring strategies and a requirement that the homeowner must agree to maintain the home free of any code violations after work is completed, Included verbiage on page 10 of LHAP, 5. Removed the Florida Homebuyer Opportunity program from strategy. This program is not effective for the FY's covered in this plan. b. Revised the Housing Delivery program to included percentage for Construction Rehab. Revisions were made for all three years. Refer to Exhibit C of the Housing Delivery Goals Chart for percentage. RECOMMENDATION Staff recommends that the City Commission approve the above revisions to the City's State Housing Initiatives Partnership (SHIP} Program, Local Housing Assistance Plan for Fiscal Years 201012011, 2011!2012 and 201212013. http:/lmiweb0011Agendas181uesheet.aspx?ItemID=3435&MeetingID=2b3 ?1'712010 CITY OF DELRAY BEACH r~'s~~-rH~p' State Housing Initiatives Partnership (SHIP) LOCAL HOUSING ASSISTANCE PLAN (CHAP) May 2010 FISCAL YEARS COVERED 2010/2011 2011/2012 2012/2013 -1- TABLE OF CONTEIVTS I. Program Description (Chapter 67-37.005 F.A.C, and Section 420.9072, F.S.) 3 - 7 II. LHAP Housing Strategies (Chapter 67-37.005(5), F.A.C. 7 -16 • Purchase Assistance + Owner-occupied Housing Rehabilitation + 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 Building Permit Fees + Aliowance 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 Charts (HDGC) + Certification to Florida Housing Finance Corporation + Resolutions • Program Information Sheet -2- PRClGRAM DESCRIPTION Chapter 67-37.005 F.A.C. and Section 420.9072, F.S. A. Name of the participating local government and Interlocal if Applicable: Secttan 420.9072(5), F S. City of Delray Beach Interlacal: Yes No X Name of participating local government(s) in the Interlacal Agreement; B. Purpose of the program: Saction 42o.so72, 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: ctra~tersT-~TOO2,FA.c. X 201012011 X 2011/2012 7C 2012/2013 D. Governance: Chapter 67-37.QQ5(3) and (5)(i)F.A.G. and Section 42Q.9Qli(14)F.S. The SHIP Program is established in accordance with Section 420.907-9079, Florida Statutes and Chapter 67-37.007 Florida Administrative Code. The SHIP Program furthers the housing element objective of providing increased housing opportunities for law- income persons. Cities and Counties at ail times must be in compliance with these applicable statutes and rules. E. Local Housing Partnership section 420.9072(1)(x), F.s. SHIP Pragram 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 Delray Beach Housing Authority, the Delray Beach Community Land Trust, the Delray Beach Community Development Corporation, the Consumer Credit Management Services, Inc., 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 hamebuyers. F. t_everaging: Chapter 67-37.007(1)(6)(c), F.A.C. andSectian 420.9075(1)(x) and (1)(63, and(1)(c}, F.s. The Plan is intended to increase the availability of affordable residential units by combining .g. 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 ar used to supplement other Florida Housing Finance Corporation programs and to provide local match to obtain federal housing grants ar 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 for increasing the supply of affordable housing for Delray Beach residents. Emphasis remains on combining neighborhood improvements with the provision of homeownership opportunities for the very-law and low income households. G. Public Input: Chapter8?-37.Q©5(3), F.A.C. Public input was solicited through an annual Community Needs Assessment Meeting whereby the public is invited to attend and provide comments on how program funds should be allocated. H. Advertising and tutreach chapters?-~?.oo~(s)(~), 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, na 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 other organized methods that may be available. SNIP staff participates in local homebuyer fairs and workshops. Discrimination: Section a2o.so?5(~1(ct, F.S. In accordance with the provisions of ss.760.20-760.37, it is unlawfu} to discriminate an the basis of race, creed, religion, color, age, sex, marital status, familial status, national origin, or handicap in the award application process for eligible housing. 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 far in the Consolidated Plan. All SHIP applicants are required to attend home buyer education seminars that include a segment on fair pausing. Support Services and Counseling: chapters?-~?.(7Q5(5~(g~,F.A.C. Support services are available from various sources. The City works with the Delray Beach Community Development Corporation, Housing Partnership and Consumer Credit Management Services, Inc, to provide homeownership coi.inseling. All prospective hamebuyers receive education about credit, predatory lending, fair housing, pre-purchase home inspections, and post-purchase education an topics such as budgeting, home maintenance, energy conservation, K, Purchase Price Limits: section 420.9Q75(4)(c}, F.S. and Chapter 67-37.(7x7($}F.A.C. Purchase Price Limits: The sales price or value of new or existing eligible pausing 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 •4- 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. 'fhe methodology used by the City 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 tl~an the $329,628.60 maximum for new home construction and existing home purchases allowed by the U. S. Treasury Department (Revenue Proclamation 2009-18) 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: Chapter 67-37.005(5)(e), F.A. C. .and Section 420.9071(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% 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. 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 Personnel" 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, corrimur~ication, etc.) personnel; information technology industry personnel; child care personnel; personal service 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 -5- deemed essential by City 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 67-37.005(6)(b)(7)F.A.C. Should an eligible sponsor be used, the City has developed a qualification system and selection criteria for applications for awards to eligible sponsors, which includes a description that demonstrates how eligible sponsors that 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: Section 420.9075(3)(e)and (4) (fJ, F.s. In the case of rental housing, the staff or 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 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 $3,000 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 eiigible nonprofit organizations for purchase at the current market value for continued occupancy by eligible persons. 0. Administrative Budget: Chapter 67-37.005(6)(fJ3, F.A.C.. A detailed listing including line-item budget of proposed Administrative Expenditures is attached as Exhibit A. 'these are presented on an annual basis for each State fiscal year submitted. The City of 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% 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% of the local housing distribution plus 5% 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% of program income deposited into the trust fund, except that small counties, as defined in s. 120.52(17), and eligible municipalities receiving a local housing distribution of up to $350,000 may use up to 10 percent of program income for administrative costs. -6- The City of Delray Beach has adopted the above findings in the attached resolution, Exhibit E. The Neighborhood Services Division of the Community Improvement Department shall be responsible for administration of the Local Housing Assistance Plan {LHAP). 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 ail other duties pertaining to implementation of the LHAP. II. LHAP HOUSING STRATEGIES: Chapter 67.37.rlQS(5),FA.C. A. Name of the Strategy: Purchase Assistance Summary of the Strategy: 'this strategy assists eligible first-time homebuyers within 0-120°1° of the Area Median Income {AMI) 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 and/or purchase of existing single family homes, townhouses and villas. New construction properties must be constructed by approved eontractorsldevelopers. 2. Fiscal Years Covered: State fiscal years 201012011, 201112012 and 201212013. 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 Fiorida Housing Finance Corporation far 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. Total 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°1° interest, forgivable deferred loan for amounts 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°1° interest, forgivable deferred loan. All loan awards wi8 be secured with a second mortgagelpromissory note and will be forgiven specific to the duration of the note. 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 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 City. •7- 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 City has created an administrative policy pertaining to subordination requests. The subordination policy, attached as Exhibit "l", is located in the Neighborhood Services Division and is available for public access. 6. Recipient Selection Criteria: 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 fallowing: o someone who has not owned a home during the past three years; o a single parent who has been divorced and displaced within the 12 month period priar 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 Applicants must contribute a minimum of 2°I° of the purchase price toward the transaction {out-of-pocket expenses are included in this calculation); 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 `sn length and conducted in a classroom setting) approved by the Neighborhood Services Division; o May not currently own or have assets exceeding $25,000 {monetary gifts and real estate are included in the asset calculation; retirement accounts are not); o SHIP funds are reserved in the individual's name for asix-month period, provided that available SHIP funds remain. 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/ar 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-low, low- and moderate-income households; • preference will be given to sponsors that employ personnel from Welfare Transition .g. Program. 8. Additional Information: New units constructed must be located in the CDBG designated target area. Existing homes must be located within the City'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: Owner-Occupied Housing Rehabilitation Surnmary of the Strategy: This strategy provides 0% 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 building/electrical/plumbing problems, health and 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 2010/2011, 2011/2012 and 2012/2013. 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 (HLID) 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 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 form of a 0% 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% 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 will be 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 (except for major healthcare expenses or by inheritance); • the assisted homeowner fails to continuously occupy the home; • the unit is rented; • the unit is refinanced without prior authorization of the City. -9- 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{sj" 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 ar 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 following selection criteria: • Applicants will be selected on a first come, first qualified basis; • Applicant may not currently own or have assets exceeding $15,000 {monetary gifts and real estate are included in the asset calculation; retirement accounts are not); • Must be owner/occupant; • Mortgage payments and taxes must be currentlpaid up to date; • Must provide proof of current homeowners insurance. 7. Sponsor Selection Criteria: N/A. No sponsors are utilized far the Owner-Occupied Rehabilitation program. 8. Additional Information: The home must be located in the City's municipal boundaries; the appraised value of the home may not exceed the maximum sales price allowed in the SHIP program far existing units; and the homeowner must agree to maintain the home free of any Cade violations after rehabilitation work is completed, The property will be monitored annually by Housing Inspector for adherence of this responsibility. In the case of default, income eligible heirs residing in the property can assume the second mortgage. 9. ENERGY EFFICIENCY and Green Housing-related repairs shall be encouraged. The local utility provider may perform a free Energy Audit. Every effort will be made to leverage SHIP funding with Utility Rebates for insulation, appliances replacement and more. Repairs shall also be guided by the minimum building Bade which is the 2007 Florida Building Cade Residential. These repairs shall include but not be limited to the fallowing: ^ Window repair, replacement and weather stripping ^ Paints and primers that meet the Green Seal G-11 Environmental Standard ^ Commodes or water closet with 1.3 gallons per flush capacity. ^ Building envelop sealing specifications ^ Installation of Energy Star Ceiling Fans ^ Integrated Pest Control Management that does not use insecticides. Proper ventilation when undertaking substantial rehabilitation 0 Installation of Energy Star efficient lighting, including fixtures ^ Installation of efficient equipment far heating, cooling and water heating. .gyp. ^ Efficient air distribution, where ducts are installed with minimum air leaks and are effectively insulated. All General Contractors utilizing funding are required to be Leadership in Energy and Environmental Design {LEEDS Certified. C_EED certification is the nationally accepted benchmark for the design, construction and operation of high perfarmance green buildings. C_EED gives building owners and operators the tools they need to have an immediate and measurable impact on their buildings' perfarmance. LEED promotes awhale-building approach to sustainability by recognizing performance in five key areas of human and environmental health: sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality. C. Name of the Strategy: Land Acquisition Summary of the Strategy: This strategy will provide funds to acquire properties for future development by non-profit, public agencies ar for profit developers. Properties will be acquired through deed and tax sales, the foreclosure of government liens and through private purchases. Properties will be donated and/or sold, competitively to non-profit agencies that will use the Delray Beach Renaissance Program for the development of the property. Properties sold competitively to for profit developers must be utilized for the development of affordable housing, Construction, rehabilitation, or emergency repairs must be completed either with one year immediately preceding the date of conveyance of title or within 24 months of the close of the applicable State fiscal year. Program regulations do not support land banking. Eligible housing occupied by an eligible applicant must be completed within the program expenditure timeline. If property is said to afor-profit developer, applications will be accepted and awarded con~ipetitively using criteria including, but not limited to The following: • Financial strength of the agency; * Ability of deveiaper to complete the development by the deadlines established by the State; • Capacity of the developer; • Features of the proposed house(s); • Marketing plan far the sale of the hawse{s}; • tNhether ar not the agency employs personnel from the Welfare Transition Program; • Whether the proposed pausing is compatible with the neighborhood in terms of design and size; • Affordability of pause{s) being built, 2. Fiscal Years Covered: State fiscal years 2010/2011, 201112012 and 201212013, -11- 3, Income Cateaorles 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 Gorporation for use in the SHIP Program. ~. Maximum award is noted on the Housing Delivery Goals Gharts: The maximum purchase price fora "buildable lot of record°' as defined in the Gity's Land Development Regulations will be $40,000. The maximum purchase price far 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 for the value of the land will be at 0°lo interest. The loan will be recaptured when the property is sold. 6. Recipient Selection Griteria: In addition to being income eligible as described above, applicants must meet the same selection criteria far recipients under Strategy A: Purchase Assistance. 7. Sponsor Selection Griteria: Eligible sponsors must meet the following selection criteria: • designated 501~c}~3} non-proft organization under IRS guidelines; • legally operating within the jurisdiction of the Gity of Delray Beach and/or Palm Beach Gounty; • 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. D. Name of the Strategy; Disaster Relief Summary of the Strate~iy: In the event of a natural disaster has 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. Generally, 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 Govered: State fiscal years 2010/2011, 2011/2012 and 2012/2013. Income Categories to be served: Very-law, low- and moderate-income limits used are those as defined by U.S. Department of Housing and Urban Development THUD} and distributed by the Florida Housing Finance Gorporation for use in the SHIP Program. -12- 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 City 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 Criteria: In addition to being income eligible as described above, applicants will be served on a first-come, first-qualified basis, pending fund availability. Residence must be located within the municipal boundaries of Delray Beach. 7. Sponsor Selection Criteria: N1A. 8. 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 allocates 0 °1Q interest, deferred payment loans to a Community Land Trust/non-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 201012011, 201112012 and 201212013. 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 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. -13- Assistance will be provided to eligible sub-recipient partner in the form of a fifteen (15) year, 0% interest, forgivable deferred loan for amounts greater than $5,0001 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% 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. C~ualifying Events shall be: a. The Community Land Trust sells or 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 andlor ceases to exist as a 501(c)(3) not-for- profitcorporation; 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 follow 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 event(s)" occur prior to the expiration of the agreement, the loan shall be totally forgiven. Sponsor 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 construction and delivery of affordable housing; d. 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-low, low- and moderate-income households. Recipients Selection Criteria: In addition to serving an income eligible 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 homebuyer(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; -14- • 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. Applicants must contribute a minimum of 2°l0 of the purchase price toward the transaction {out-of-pocket expenses are included in this calculation}. e. Applicant must have an accepted contract for a home and have applied for a first mortgage with a lender. f. 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. g. SHIP funds are reserved in the individual's name for asix-month period, provided that available SHIP funds remain, 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 0-120°!° 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 201012011, 2011/2012 and 2012!2013. 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 (HLID) 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 $10,000 inclusive of all attorney fees/court costs; however, the maximum is not automatically provided on an individual basis; rather, the amount of subsidy awarded wi8 be the minimum amount necessary to enable the buyer to continue to retain ownership and regularly make his/her 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 post-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. -15- 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 for foreclosure assistance shall be done in an expedited manner and may include alternative forms of documentation, such as current pay stubs and benefrt 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°1o 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 events}° occur prior to expiration of the note. 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 leasedlrented without prior autharizatian of the City; • unit is refinanced without prior autharizatian of the City; • failure to fallow 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}" 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 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. III. LHAP INCENTIVE STRATEGIES Section 42D.9t~71(16), F.S. A. Name of the Strategy: Expedited Permitting Permits as defined in s. 163.3164{7) and (8} for affordable housing projects are expedited to a greater degree than other projects. Established policy and procedures: The City has in place a "One Stop Shop" permitting process for a coordinated 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 .fig. within the perrnit 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 housing 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). This 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. A pre-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 fifteen (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), with submittal of an application that is deemed complete Class IV and V site plan development proposals shall be processed within seven (7) weeks and applications involving re-zonings or Conditional Uses will require an additional four (4) weeks. Class I through III 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 all efforts shall be made to expedite building permits after all outstanding comments have been addressed with the goal of issuing the permits within thirty (30) 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. -17- a. 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 cost 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 on-going process to allow for 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 SMIP funds to pay the impact fees. D. Name of the Strategy: Waiver of Building Permit Fees An ongoing process for reducing the cost of building or rehabilitating affordable housing. a. Established policy and procedures: The City does nat 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. Established policy and procedures: The Housing Element of the City's Comprehensive 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 Gapaeity An ongoing process to provide for infrastructure improvements in deteriorating neighborhoods •18- 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 owned lands of 3 acres or more along with available single family lots. 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 on an annual basis. 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 Established policy and procedures: Provide Description The current requirements at Section 4.6.16(H) for Single Family Housing is. that 20% 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% 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 $1,200 will be reduced from the cost of producing one unit. -19- IV. EXHIBITS: A. Administrative Budget for each fiscal year covered in the Plan. Exhibit A. B. Timeline for Encumbrance and Expenditure: Chapter 67-37.005{6)(d) and (f) 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 fo8owing 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. G. Housing Delivery Goals Chart (NOGG? For Each Fiscal Year Covered in the Plan: Chapter67-37,005), F.A.C. Completed HDGC for each fiscal year is attached as Exhibit C. D. Certification Page: Chapter 67-37.006(7), F.A.C. Signed Certification is attached as Exhibit D. E, Adopting Resolution: sec6~n ~2o.s©lz~z~fb)z, F.s. Original signed, dated, witnessed or attested adopting resolution is attached as Exhibit E. Resolution 19-~0 F. Program Information Sheet: Completed program information sheet is attached as Exhibit F. G. Ordinance: section ~z0.907z(3)(a), F.s. If changed from the original ordinance, a copy is attached as Exhibit G. This item has not changed as of May 2007. H. Interlocal Agreement: sectf~n ¢z0.s072, F.s. A copy of the Interloeal Agreement if applicable is attached as Exhibit H. This item is not applicable as of May 2007. Subordination Policy; A copy of the Subordination Agreement attached as Exhibit 1. -21- ADMINISTRA"I"IVE BUDGET FOR EACH FISCAL YEAR Title: LHAP Template 2010 Exhibit A Admin Budget No. ool Fiscal Year 2010-2011 67-37.005(1), F.A.C. Effective Date: 1 l/09 Salaries and Benefits $ 5,017.00 Office Supplies and Equipment $ - Travel Perdiem Workshops, etc $ - Advertising $ 250.00 $ 5,267.00 Fiscal Year 2011-2012 Salaries and Benefits $ 5,017.00 OfiFice Supplies and Equipment $ - Travel Perdiem Workshops, etc $ - Advertisir~g $ 250.00 5,267.00 Fiscal Year 2012-2013 Salaries and Benefits $ 5,017.00 Office Supplies and Equipment $ - Travel Perdiem Workshops, etc $ - Advertising $ 250.00 5,267.00 Exhibit A Budgeted amounts based on a distribution of 2009-2010 allocation fo $5~ "s~~ x .~ s: b~ U A a q~ m uJ >- -y U q ~ ~ LL W F H v a o d u. > W ~ J ~ fa 4 u W J ~ G F ~ E Z ~ .~.~ ~, x x ~< ~ ~ m x }( X X h x • x M x x X N X K pI x x K N m x x x x X N x x x o ~•+ x a, x a x ~ x x ~ } ~ 0 ~ a ~ ae ~ C..4 °-~ ~ ~ c n. ~ s ~ ~ ', ~ p ~ ~ ~ ~ ~ ~ ~ ~ tt i w ~ ~ ~ ~ ~ w ~ 4 g w ~ A a` ?t m c .~ o. c 7' F a ~ o v N ~ N N to t V C iC ~ }~ V d ~ 14 a ~ 'S V .~ tl ,Q ~ E d w Of ~ o ,~ a a ;~ F J v c .~ C a N m X v R m C O E E E A Q p 'C o. c O .q u a a L h Q C N m N '~ ~' h a E a ~_ {.~ Y W d m :L E c m r N M ~ a U N LL W r F K? 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Ux! v O 4 N g ~ S ..f' ' V U1 t9 > ~ ~ a ~ ~ ~ Q ~ ~ '„ ~ 9 1FJ Q tJ fn ~ ~ O GJ O O O ¢ O O ~ y = > > Z tA y~' = J Q o 0 0 0 o a o 0 0 ~ ,~ ~ {J 0. ~n yr to ti3 tr1 yr ~n d o ~ v~ ~ ^ ~ S ~ a ; O O O N S ~ Q ~ Vt O N C ~ N P ~ N J 1 F ~ ( +~ » to s ~ Q b 3 J p ~ LL ~. ~ O O O O O O iy, S/7 dt ~ ~ ~ 9 11.1 Q ~ ~ b lt7 ~ ~ 7 G d k, , ~ :~ '= a N ~ ~ y o c = d ~ '~ c O . d ~ ~ ~ £ ~ ~ ~ ~ "" ~ ~ ' d W u v ~ C A A ~ ~ F W ~ t7 "'r ~ a ~ ~ ~ ~ o # 6 ~ 0 ~ U _ Q c b m ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ c 2 LL i ~ a. ~ ~ ~ G ~ ~ . O C O ~ v ~~ o ~ ~~ ~ ~ _ N o O ~ E ~ a ~ ~~ A ~ a ~ a a c ° 2 a k a ~ ~ d ~ ~ ' 1- m ~ , ~ ~ , ~ a I a E E E ~ I d O ~ G? 4 q }} T G ~ ~ ~ O w n v Exhibit F STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM INFORMATION SHEET LOCAL GOVERNMENT: City of Delray Beach CHIEF ELECTED OFFICIAL Nelson S. McDuffie Ma or ADDRESS: 100 N.W. ls` Avenue Delray Beach, FL 33444 SHIP ADMINISTRATOR: Ferline F. Mesidort, Community Development Specialist ADDRESS: 100 N.W. ls` Avenue, Delray Beach, FL 33444 TELEPHONE:(561) 243-7236 FAX:(561) 243-7221 EMAIL ADDRESS: mesidortna,mydelraybeach.com ADDITIONAL SHIP CONTACTS: Nigel Roberts, Neighborhood Services Administrator ADDRESS:_100 N.W. 15` Avenue, Delray Beach, FL 33444 TELEPHONE:(561) 243-7282 FAX:(561) _243-7221 EMAIL ADDRESS: robertspn(a),m, d~lraybeach.com INTERLOCAL AGREEMENT: YES/NO (IF yes, list other participants in the inter-local agreement): The following information must be furnished to the Corporation before any funds can be disbursed. LOCAL GOVERNMENT EMPLOYER FEDERAL ID NLTMBER: 59-6000308 MAIL DISBURSEMENT TO: ADDRESS: OR:IF YOUR FUNDS ARE ELECTRONICALLY TRANSFERRED PLEASE COMPLETE THE ATTACHED FORM: D NO CHANGE FROM PREVIOUS ELECTRONIC FORM SUBMITTED. Provide any additional updates the Corporation should be aware of in the space below: Please return this form to: SHIP PROGRAM MANAGER, FHFC 227 N. BRONOUGH ST, STE 5000 TALLAHASSEE, FL 32301 Fax: (850) 922-7253 Title: LHAP Template 2009 No. 001 b7-37.005{1}, F.A.C. ' Effective Date: t It09 CERTIFICATION TO FLORIDA HOUSING FINANCE CORPORATION Exhibit D Name of Local Government: City of Delray Beach (1} The local government will advertise the availability of SHIP funds pursuant to Florida Statutes. {2) All SHIP funds will be expended in a manner which will insure that there will be no discrimination on the basis of race, creed, religion, color, age, sex, familial or marital status, handicap, or national origin. (3) A process for selection of recipients for funds has been developed. {4) The eligible municipality or county has developed a qualification system for applications for awards. (5) Recipients of funds will be required to contractually commit to program guidelines. (6) The Florida Housing Finance Corporation will be notified promptly if the local government (or interlocal entity) will be unable to comply with the provisions the plan. {'7) The Local Housing Assistance Plan shall provide for the expenditure of SHIP funds within 24 months following the end of the State fiscal year in which they are received. {$) The plan confozxns to the Local Government Comprehensive Plan, or that an amendment to the Local Government Comprehensive Plan will be initiated at the next available opportunity to insure conformance with the Local Housing Assistance Plan. (9) Amendments to the approved Local Housing Assistance Plan shall be provided to the Corporation with in 21 days after adoption. {10) The trust fund shall be established with a qualified depositary for all SHIP funds as well as moneys generated from activities such as interest earned on loans, {11} Amounts on deposit in the local housing assistance trust fund shall be invested as permitted by law. (12} The local housing assistance trust fund shall be separately stated as a special revenue fund in the local governments audited financial statements, copies of the audits will be forwarded to the Corporation as soon as available. Title: LHAP Template 2009 No. 001 67-37.005(1), F.A.C. Effective Date: 11(09 Exhibit D Page 2 Certification 13) An interlacal entity shall have its local housing assistance trust fund separately audited for each state fiscal year, and the audit forwarded to the Corporation as soon as possible. (14) SHIP funds will not be pledged far debt service on bands ar as rent subsidies. (15) Developers receiving assistance from both SHIP and the Low Income Housing Tax Credit (LIHTC) Program shall comply with the income, affordability and other LIHTC requirements, Similarly, any units receiving assistance from other federal programs shall comply with all Federal and SHIP program requirements. (16) Loans shall be provided for periods not exceeding 30 years, except for deferred payment loans or loans that extend beyond 30 years which continue to service eligible persons. (17) Rental Units constructed ar rehabilitated with SHIP funds shall be monitored at least annually for 15 years for compliance with tenant income requirements and affordability requirements ar as required in Section 420.9075 (3)(e) (18) The Plan meets the requirements cif Section 420-907-9079 FS, and Rule Chapter 67-37 FAC, and how each of those requirements shall be met. (19) The provisions of Chapter ~3-220, Laws of Florida has ter X has not been implemented. {note: Miami Dade County will check "has") Witness VtTitness Date aR (Seal) Chief Elected 4f~cial ar designee Attest: Type Name and Title 2 Exhibit r,l„ GITY OF DEFRAY BEAGH NEIGHBORHOOD SERVICES DIVISIC}N SHIP and CDBG Subordination Policy A homeowner assisted by the SNIP or CDBG program may not refinance his or her first mortgage or take out a second mortgage unless the city agrees to subordinate its second mortgage. The policy used by the City of Delray Beach regarding a subordination request is as follows: ^ If the owner wants to refinance the first mortgage at a lower rate andJor far a shorter loan term, the City will subordinate if: ^ additional money isn't being borrowed {unless its for home repair or reasonable improvements) ^ the resulting housing cost (PITI~ does not exceed the housing cost ~PITI~ calculation of the original loan ^ the new loan is for a fixed interest rate ^ If the owner is taking out a second mortgage for necessary home repairs or reasonable improvements, the City will subordinate if: ^ the combined payments of the first and second mortgages do not exceed 35°Jo of grass income ^ the loan is far a fixed interest rate ^ The City will not subordinate its mortgage for owners attempting to obtain a line of credit or consolidate debt because this would enable them to increase their debt for purposes other than home improvement, The City maintains that: ^ Second mortgages are provided under the SHIP program to assist with homeownership ^ Forgivable loans are provided under the CDBG or SHIP programs for the exclusive purpose of rehabilitating, enhancing andlor preserving real estate ^ The City does not support the owner using equity for any items other than the house itself. If the purpose of the new loan is far home repair or reasonable improvements, the need must be substantiated by an inspection of the property by a City of Delray Beach housing rehabilitation inspector andlor estimates for the proposed repairs famished by the homeowner. Exhibit "I" CITY OF DELRAY BEACH NEIGHBORHOOD SERVICES DIVISION SHIP or CDBG Subordination Procedures 1. The party requesting the subardination must provide the City of Delray Beach Neighborhood Services Division the following information and documentation: ^ legal description of the property ^ copy of an appraisal of the property ^ copy of the title report conducted by the lender requesting the subordination ^ amount of equity in the home ^ copy of HUD-1 or other document that will provide loan disbursement information ^ resulting housing cost (PIl-I) • type of loan (fixed, variable, balloon, etc. and interest rate ^ subardination Agreement 2. The Neighborhood Services Division shall review the above information and, if the request adheres to City policy, present the Subordination Agreement to the City Attorney's Office for review. The Neighborhood Services Division shall place the subordination request on the Consent Agenda for the City Commission Meeting and send the Subordination Agreement to the City Clerk's Office for the Mayor's signature. 3. Once the subordination request is approved by the City Commission and the subordination Agreement is signed by the Mayor, the Neighborhood Services Division shall foliaw through with the instructions provided by the lender as it relates to the mailing andlor faxing of the executed Subordination Agreement. The lender should provide the City with a recorded copy of the subordination Agreement. RESOLUTION NO. 35-10 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING THE APPROVED LOCAL HOUSING ASSISTANCE PLAN AS APPROVED AT THE APRIL 20, 2010 CITY COI~1IvIISSION MEETING AS REQUIRED BY THE STATE HOUSING INITIATIVES PARTNERSHIP PROGRAM ACT, SUBSECTIONS 424.907-420.9079, FLORIDA STATUTES; AND RULE CHAPTER 67-37, FLORIDA ADMINISTRATIVE CODE; AUTHORZING AND DIF:ECTING THE MAYOR TO E~ECUTF. 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; AND PROVIDING AN EFFECIVE DATE. WHEREAS, the State of Florida enacted the William E. Sadowski Affordable Housing Act, Chapter 92-317 of Florida Sessions Laws, allocating a portion of documentary stamp taxes on deeds to local governments for the development and maintenance of affordable housing; and WHEREAS, the State Housing Initiatives Partnership {SHIP} Act, ss. 420.907-420.9079, Florida Statutes {1992}, and Rule Chapter ~7-37, 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 for each strategy; and WHEREAS, on April 20, 2010, the City Commission of the City of Delray Beach, approved the FY 2010-2013 T,HAP via Resolution 19-10; and WHEREAS, the SHIP Review Committee has requested that revisions be made to the Plan to include a green initiative and to remove the Florida Homebuyer Opportunity Program before final approval. All other terms of the LHAP approved via Resolution 19-10 shall remain the same. NOW THEF~EFORE BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH FLORIDA AS FOLLOWS: ection 1. The City Cainmission of the City of Delray Beach hereby approves the Local Housing Assistance Plan as amended and, as attached and incorporated hereto for submission to the Florida Housing Finance Corporation as required by ss. 420.907-420-9079, Florida Statutes, for fiscal years 2010-2011, 2011- 2012 and 2012-2013. 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 all things necessary and proper to carry out the term and conditions of said program. Section 3. This resolution shall take effect irnrnediately upon its adoption. PASSSED AND ADC7PTED in regular session on this the day of .2010. ATTEST: City Clerk MAYC-R 2 RES. NQ. 35-10