Res 43-99RESOLUTION NO. 43-99
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA,
AMENDING THE PREVIOUSLY ADOPTED AND APPROVED LOCAL HOUSING ASSISTANCE
PLAN PURSUANT TO THE STATE HOUSING INITIATIVES PARTNERSHIP {SHIP) PROGRAM
AS ATTACHED HERETO, ESTABLISHING AN INCREASE TO THE MAXIMUM SHIP FUNDS
ALLOWABLE FOR ASSISTANCE, AUTHORIZING THE NECESSARY CERTIFICATIONS BY THE
MAYOR AND AUTHORIZING SUBMISSION OF THE PLAN TO THE STATE OF FLORIDA
HOUSING FINANCE CORPORATION; PROVIDING FOR AN EFFECTIVE DATE UPON
APPROVAL.
~gHEREAS, 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, under which the City approved the required three year
Local Housing Assistance Plan outlining how funds will be used; and
WHEREAS, the City of Delray Beach has entered the Delray Beach Housing
Renaissance Program, a local partnership for the delivery of affordable housing; and
%~rHEREAS, the Policies and Procedures, under the approved Delray Beach
Housing Renaissance Program Memorandum of Understanding, establishes maximum funds
allowable for assistance inconsistent with the State approved Local Housing
Assistance Plan FY 1998/99, 1999/2000 and 2000/2001.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, AS FOLLOWS:
$~cfion 1. That during the three fiscal years covered under the Local
Housing assistance Plan, the maximum award will be limited to $25,000 for very low,
$22,500 for low and $15,000 for moderate income households for purchase assistance of
newly constructed and existing housing units; and $25,000 maximum for very low and
low income households for owner occupied rehabilitation, specific to the conditions,
strategies and eligibility determination under the guidelines of the SHIP Program and
the Local Housing Assistance Plan.
Section 2. That this Resolution shall become effective immediately upon
its passage.
ATTEST:
PASSED AND ADOPTED in regular session on ~s th~t~ay of July,
1999.
City C~erk " ~
City of Delray Beach
Community Development Division
MEMORANDUM
TO:
THRU:
FROM:
DATE:
SUBJECT:
David Harden, City Manager
Lula Butler, Community Improvement Director
Charles L. Bender III, Community Development Coordinator
June 25, 1999
Resolution #43-99 Approval and Adoption of the Amendment to the State Housing
Initiatives Partnership (SHIP) Local Housing Assistance Plan
ITEM BEFORE THE COMMISSION
The purpose of this item is to obtain approval for the adoption of Resolution #43-99 amending the State
Housing Initiatives Partnership (SHIP) Program's Local Housing Assistance Plan for Fiscal Years 1998-
1999, 1999-2000 and 2000-2001 increasing the maximum subsidy level for low-income households to
$22,500.00.
BACKGROUND
For the past seven (7) years the Community Improvement Department has received housing assistance funds
from the State Housing Initiatives Partnership (SHIP) Program. SHIP funds are generated f~om
documentary stamp collections throughout the State at a rate of two cents per dollar and held in the State's
Housing Trust Fund. The State requires a Local Housing Assistance Plan be established outlining how the
City plans to administer the Local Housing Assistance Program once SHIP funds are received. The City
Commission passed Resolution #28-98 on April 21, 1998 approving the Local Housing Assistance Plan
(LHAP) for Fiscal Years 1998-1999, 1999-2000 and 2000-2001. The City's Local Housing Assistance Plan
specifies the maximum allowable assistance levels of $25,000 for very low, $20,000 for low and $15,000
for moderate income households.
The City Commission approved the Delray Beach Housing Renaissance Program's Memorandum of
Understanding on June 15, 1999 which represents the City's Local Housing Assistance Program. The
Memorandum of Undarstanding's Policies and Procedures provides a subsidy grid to be used in
determining an eligible family's maximum level of assistance. The grid is designed to provide greater
assistance for lower median income households with larger families. Due to rising construction costs,
increased land values and the lower borrowing capacities of the homebuyers, the need to increase the
maximum subsidy level has become necessary. The additional $2,500.00 in subsidy will allow for the
continued success of the City of Delray Beach's housing program and help to ensure that SHIP program
expenditure deadlines are met.
RECOMMENDATION
Staff recommends approval of Resolution #43-99 amending the State Housing Initiatives Partnership
(SHIP) Program's Local Housing Assistance Plan for Fiscal Years 1998-1999, 1999-2000 and 2000-2001
by increasing the maximum assistance level for low income households to $22,500.00.
q.D-
City of Delray Beach Community Development Division
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Charles Bender, Community Development Coordinator
Michael Simon, Affordable Housing Administrator -~,~,/
June 24, 1999
Local Housing Assistance Plan Amendment
The attached agenda request, agenda memo and agenda cover memo have been prepared
for the July 6, 1999 City Commission Agenda. This documentation is required to amend
the City approved State Housing Initiatives Partnership (SHIP) Program, Local Housing
Assistance Plan (LHAP) for Fiscal Year's 1998-1999, 1999-2000 and 2000-2001 in order
to increase the maximum allowable subsidy for low-income applicants. The reason for
this amendment pertains to the newly developed subsidy grid being used in the Delray
Beach Renaissance Program. Under the current LHAP, the maximum allowable subsidy
for low-income applicants is $20,000, while the subsidy grid provides the largest family
size for the low-income category to receive $22,500. The state allows the local
municipality to establish the maximum assistance level and to change it as desired. A
City Commission approval through resolution will be needed in order to comply with
State guidelines regarding plan amendments. (The change in allowable subsidy does not
require State approval only additions or deletions of strategies). Once approved, the
resolution and applicable verbiage changes will be sent to the State for their records.
If you have any questions or concerns regarding this initiative, please allow me to address
them.