Res 05-06
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RESOLUTION NO. 5-06
A RESOLUTION OF THE CIlY COMMISSION OF THE CIlY OF DELRA Y
BEACH, FLORIDA, ADOPTING THE AMENDED LOCAL HOUSING
ASSISTANCE PLAN PURSUANT TO THE STATE HOUSING INITIATIVES
PARTNERSHIP (SHIP) PROGRAM AS ATIACHED HERETO;
ESTABLISHING A MAXIMUM COST PER UNIT, THE STRATEGIES AND
INCENTIVES OF THE PLAN, THE MAXIMUM SHIP FUNDS ALLOWABLE
FOR ASSISTANCE, THE MAXIMUM SHIP FUNDS FOR ADMINISTRATIVE
EXPENSES; AUTHORIZING THE NECESSARY CERTIFICATIONS BY THE
MAYOR AND AUTHORIZING SUBMISSION OF THE PLAN TO THE
STATE HOUSING FINANCE CORPORATION; PROVIDING FOR AN
EFFECTIVE DATE UPON APPROVAL.
WHEREAS, the State of Florida, under specific authority established by the William
E. Sadowski Act in July 1992, established the State Housing Initiatives Partnership (SHIP) Program
which requires the City to develop a one to three year Local Housing Assistance Plan outlining how
funds will be used; and
WHEREAS, the Act also requires the adoption of a resolution providing for (1) the
maximum and average cost per unit available for eligible housing units; (2) a maximum and average
of funds awarded under each strategy; (3) implementation of the strategies and incentives under the
plan; (4) establishment of ten percent (10%) of total allocation and five percent (5%) of program
income to be spent on administrative cost of the SHIP program; and
WHEREAS, Resolution No. 31-04 adopting the City of Delray Beach's 2004-2007
LHAP was approved by City Commission on April 13, 2004 and Resolution No. 66-05 amending
the 2004-2007 LHAP was approved by City Commission on September 6, 2005; and
WHEREAS, Florida Administrative Code SHIP rules require the adoption of a
resolution to amend an approved Local Housing Assistance Plan and this resolution shall amend the
approved Plan in order to provide increased subsidy funding.
NOW, THEREFORE, BE IT RESOLVED BY THE CIlY COMMISSION OF
THE CIlY OF DELRA Y BEACH, FLORIDA, AS FOLLOWS:
Section 1. That Resolution 31-04 is hereby amended by adopting this resolution and
an amended Local Housing Assistance Plan.
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Section 2. That the maximum cost per unit for eligible housing assistance awards
pursuant to the SHIP program may not exceed ninety percent (90%) of the median area purchase
price for newly constructed units and existing units as established by U. S. Treasury Revenue
Proclamation 2005-15.
Section 3. That the maximum award be will be limited to $75,000 for very low, low
and moderate-income households for purchase assistance; $35,000 maximum award for very low,
low, and moderate income households for owner-occupied rehabilitation; $40,000 maximum
purchase of a vacant, buildable lot of record, as defined in the City's Land Development
Regulations; and $15,000 maximum award for disaster relief assistance, specific to the conditions,
strategies and eligibility determination under the guidelines of the SHIP Program and this Plan.
Section 4. That the City of Delray Beach finds that five percent (5%) of the Local
housing distribution is insufficient to adequately administer the SHIP Program. Therefore, the
administrative funding shall increase, but shall not exceed ten percent (10%) as allowed by Tide 67
of the Florida Administrative Code, and to include the allowable five percent (5%) of Program
Income for additional administrative funding under the SHIP Program.
Section 5. The Local Housing Assistance Plan, as amended, remains in full force and
effect and the Local Housing Assistance Plan previously adopted prior to Resolution 31-04 remains
unchanged, unless expressly modified by this resolution.
Section 6. That the City of Delray Beach is authorized to submit the amended Local
Housing Assistance Plan to the State Housing Finance Corporation for its review and approval.
Section 7. That the Mayor is authorized to execute any document and certifications
required as a part of the Local Housing Assistance Plan on behalf of the City of Delray Beach.
Section 8. That this resolution shall become effective immediately upon its passage.
PASSED AND ADOPTED in regular session on this the 17th day of January, 2006.
ATIEST:
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City Clerk
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ORD. NO. 5-06
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MEMORANDUM
TO:
David Harden, City Manager
FROM:
Lula Butler, Community Improvement Director
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THRU:
Kendra W. Graham, Community Development Administrator
DATE:
January 12,2006
SUBJECT:
Approval of Resolution #5-06 amending State Housing Initiatives Partnership
(SHIP) Local Housing Assistance Plan for Fiscal Years 2004/2005, 2005/2006, and
2006/2007
ITEM BEFORE THE COMMISSION
City Commission authorization and approval of an amendment to the City's State Housing Initiatives
Partnership (SHIP) Program, Local Housing Assistance Plan for Fiscal Years 2004-2007 by adopting
Resolution #5-06 pursuant to Title 67-37 of the Florida Administrative Code.
BACKGROUND
The Community Improvement Department receives funds under the State Housing Initiatives Partnership
(SHIP) Program for the development and maintenance of affordable housing. SHIP funds are generated
from a portion of documentary stamp taxes collected throughout the State and held in the State's Housing
Trust Fund. The State requires a Local Housing Assistance Plan (LHAP) 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. Community Development Division staff has administered the
program and under the approved Plans have assisted Delray Beach residents with homeownership and
housing rehabilitation opportunities. The current Plan (2004-2007) was adopted by Resolution #31-04 on
April 13, 2004 and amended per Resolution #66-05 on September 6, 2005.
Due to the soaring home sales prices in our area it has become increasingly difficult to assist potential
first-time homebuyers under the current LHAP's subsidy structure and the cost of construction materials
necessitates an increase in the grant amount allowed under the City's Hurricane Disaster strategy.
Therefore, staff is recommending that the 2004-2007 Local Housing Assistance Plan be amended as
follows: 1) Increase the maximum subsidy amount to $75,000 for all income levels; 2) Revise the
recapture policy to allow for a fifteen (15) year term offorgiveness for subsidy amounts less than or equal
to $35,000 and a thirty (30) year term of forgiveness for subsidy amounts equal to or greater than
$35,001; and 3) Increase the maximum award for disaster relief assistance to $15,000.
RECOMMENDATION
Staff recommends approval of the amended Local Housing Assistance Plan for Fiscal Years 2004/2005,
2005/2006 and 2006/2007 by adoption of Resolution #5-06.
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RESOLUTION NO. 5-06
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
DELRA Y BEACH, FLORIDA, ADOPTING THE AMENDED LOCAL
HOUSING ASSISTANCE PLAN PURSUANT TO THE STATE
HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM AS
ATTACHED HERETO; ESTABLISHING A MAXIMUM COST PER
UNIT, THE STRATEGIES AND INCENTIVES OF THE PLAN, THE
MAXIMUM SHIP FUNDS ALLOWABLE FOR ASSISTANCE, THE
MAXIMUM SHIP FUNDS FOR ADMINISTRATIVE EXPENSES;
AUTHORIZING THE NECESSARY CERTIFICATIONS BY THE
MAYOR AND AUTHORIZING SUBMISSION OF THE PLAN TO THE
STATE HOUSING FINANCE CORPORATION; PROVIDING FOR AN
EFFECTIVE DATE UPON APPROVAL.
WHEREAS, the State of Florida, under specific authority established by the
William E. Sadowski Act in July 1992, established the State Housing Initiatives Partnership
(SHIP) Program which requires the City to develop a one to three year Local Housing Assistance
Plan outlining how funds will be used; and
WHEREAS, the Act also requires the adoption of a resolution providing for (1)
the maximum and average cost per unit available for eligible housing units; (2) a maximum and
average of funds awarded under each strategy; (3) implementation of the strategies and
incentives under the plan; (4) establishment of ten percent (10%) of total allocation and five
percent (5%) of program income to be spent on administrative cost of the SHIP program; and
WHEREAS, Resolution No. 31-04 adopting the City of Delray Beach's 2004-
2007 LHAP was approved by City Commission on April 13, 2004 and Resolution No. 66-05
amending the 2004-2007 LHAP was approved by City Commission on September 6, 2005; and
WHEREAS, Florida Administrative Code SHIP rules require the adoption of a
resolution to amend an approved Local Housing Assistance Plan and this resolution shall amend
the approved Plan in order to provide increased subsidy funding.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF
THE CITY OF DELRA Y BEACH, FLORIDA, AS FOLLOWS:
Section 1. That Resolution 31-04 is hereby amended by adopting this resolution
and an amended Local Housing Assistance Plan.
Section 2. That the maximum cost per unit for eligible housing assistance awards
pursuant to the SHIP program may not exceed ninety percent (90%) of the median area purchase
price for newly constructed units and existing units as established by U. S. Treasury Revenue
Proclamation 2005-15.
~
Section 3. That the maximum award be will be limited to $75,000 for very low,
low and moderate-income households for purchase assistance; $35,000 maximum award for very
low, low, and moderate income households for owner-occupied rehabilitation; $40,000
maximum purchase of a vacant, buildable lot of record, as defined in the City's Land
Development Regulations; and $15,000 maximum award for disaster relief assistance, specific to
the conditions, strategies and eligibility determination under the guidelines of the SHIP Program
and this Plan.
Section 4. That the City of Delray Beach finds that five percent (5%) of the Local
housing distribution is insufficient to adequately administer the SHIP Program. Therefore, the
administrative funding shall increase, but shall not exceed ten percent (10%) as allowed by Title
67 of the Florida Administrative Code, and to include the allowable five percent (5%) of
Program Income for additional administrative funding under the SHIP Program.
Section 5. The Local Housing Assistance Plan, as amended, remains in full force
and effect and the Local Housing Assistance Plan previously adopted prior to Resolution 31-04
remains unchanged, unless expressly modified by this resolution.
Section 6. That the City of Delray Beach is authorized to submit the amended
Local Housing Assistance Plan to the State Housing Finance Corporation for its review and
approval.
Section 7. That the Mayor is authorized to execute any document and
certifications required as a part of the Local Housing Assistance Plan on behalf of the City of
Delray Beach.
Section 8. That this resolution shall become effective immediately upon its
passage.
PASSED AND ADOPTED in regular session on this the 17th day of January,
2006.
MAYOR
ATTEST:
City Clerk
Res. No. 5-06
Agenda Item No.: ~
AGENDA REOUEST
Request to be placed on:
_ Regular Agenda
_ Special Agenda
_ Workshop Agenda
_ Consent Agenda
Date: January 12, 2006
When: January 17,2006
Description of item:
Authorization and approval of an amendment to the 2004-2007 Local Housing Assistance Plan
(LHAP) under the Renaissance Program.
ORDINANCE/RESOLUTION REQUIRED: YES/NO
Draft attached: YES/NO
Recommendation:
Staff recommends acceptance and approval of the amended LHAP
Department Head Signature: ~ ~
City Attorney ReviewIRecommendation (if applicable):
Budget Director Review (required on all items involving expenditure of funds):
Funding Available: YES/NO
Funding Alternatives:
Account No. & Description:
Account Balance:
(if applicable)
City Manager Review:
Approved for Agenda:
Hold Until:
@/NO tM
Agenda Coordinator Review:
Received:
Placed on Agenda: