02-93 ORDINANCE NO. 2-93
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, PURSUANT TO THE STATE HOUSING
INITIATIVE PARTNERSHIP (SHIP) PROGRAM, PROVIDING FOR
DEFINITIONS; PROVIDING FOR THE CREATION OF THE LOCAL
HOUSING ASSISTANCE TRUST FUND; PROVIDING FOR THE
ESTABLISHMENT OF THE LOCAL HOUSING PARTNERSHIP;
PROVIDING FOR THE INTENT AND PURPOSE OF THE LOCAL
HOUSING ASSISTANCE PROGRAM; PROVIDING FOR THE
ESTABLISHMENT OF THE LOCAL HOUSING ASSISTANCE PROGRAM;
DESIGNATING THE RESPONSIBILITY FOR THE IMPLEMENTATION
AND ADMINISTRATION OF THE LOCAL HOUSING ASSISTANCE
PROGRAM; PROVIDING FOR THE CREATION OF AN AFFORDABLE
HOUSING ADVISORY COMMITTEE; PROVIDING FOR GUIDELINES TO
BE UTILIZED BY SAID COMMITTEE IN ADOPTION OF
RECOMMENDATIONS FOR THE AFFORDABLE HOUSING INCENTIVE
PLAN; PROVIDING FOR ADOPTION OF THE AFFORDABLE HOUSING
INCENTIVE PLAN; PROVIDING FOR SEVERABILITY; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the State of Florida, under specific authority
established by State Statute, has established the Housing Initiative
Partnership (SHIP) Program; and,
WHEREAS, the rules established the procedures by which the
Florida Housing Finance Agency shall administer the State Program;
and,
WHEREAS, the program was developed to provide funds to local
governments as an incentive to create partnerships to produce and
preserve affordable housing; and,
WHEREAS, the City of Delray Beach is eligible to receive
funds to implement eligible activities as an Entitlement City under
the Department of Housing and Urban Development.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS:
SECTION I. DEFINITIONS.
The definitions as set forth in Florida Statute 420.9071 and
Florida Administrative Code 91-37.002, and as may be amended from time
to time, are hereby adopted by reference and made a part hereof as if
fully set forth herein.
SECTION II. CREATION OF THE LOCAL HOUSING ASSISTANCE TRUST FUND.
A. The Local Housing Assistance Trust Fund is hereby
created and established by the City of Delray Beach, Florida, pursuant
to policies and procedures established by the Finance Director. The
City shall have deposited all monies received or budgeted to provide
funding for the LHAP into the Local Housing Assistance Trust Fund.
Administration of the Trust Fund shall comply with Rule 91-37.007,
Florida Administrative Code.
B. Expenditures other than for the administration and
implementation of the Local Housing Assistance Program shall not be
made from the Local Housing Assistance T.rust Fund.
C. Amounts on deposit in the Local Housing Assistance
Trust Fund shall be invested pursuant to established policies approved
by the City Commission and administered by the Director of Finance for
the City of Delray Beach, Florida. All investment earnings shall be
retained in the Trust Fund and used for the purposes thereof.
D. The City of Delray Beach shall provide for the Local
Housing Assistance Trust Fund to be separately stated as a special
revenue fund in the City's audited financial statements. Copies of
such audited financial statements shall be forwarded to the Florida
Housing Finance Agency as soon as such statements are available.
SECTION III. CREATION OF THE LOCAL HOUSING PARTNERSHIP.
A. The City staff will work cooperatively with businesses
and local agencies to create a Local Housing Partnership to facilitate
implementation of various activities defined within the Housing
Assistance Plan. The Partnership shall include, but is not limited
to, community-based organizations, for-profit housing developers,
lending institutions, providers of professional services related to
affordable housing, and service organizations working on behalf of
persons with special housing needs.
B. The Local Housing Partnership shall assist with
implementation of the Local Housing Assistance Program in a manner
that provides support services for housing program beneficiaries, such
as training to prepare persons for the responsibility of
homeownership, counseling of tenants, and the establishment of support
services necessary to carry out affordable housing activities as
defined by the City of Delray Beach. Activities implemented
cooperativelY with the Partnership shall be consistent with policies
established within this ordinance, Florida Statutes and Rule 91-37,
Florida Administrative Code.
- 2 - Ord. No. 2-93
SECTION IV. INTENT AND PURPOSE OF THE LOCAL HOUSING ASSISTANCE
PROGRAM.
A. The intent of the Local Housing Assistance Program is:
(1) To increase the availability of affordable housing
units by combining local resources and cost-saving measures
into a Local Housing Partnership and using private and
public funds to reduce the cost of housing.
(2) To promote and assist in achieving the growth
management goals contained in the City's approved
Comprehensive Plan, providing, for housing units that are
affordable to persons who have special housing needs, very
low income, low income and moderate income households.
(3) To promote innovative design of eligible housing
that provides for cost savings and flexible design options
without compromising the quality of decent standard housing.
(4) To provide for the preservation of existing
housing units normally occupied by low and moderate income
persons, providing for decent, safe and standard housing.
(5) To promote mixed-income housing within the City,
providing for affordable housing opportunities for persons
who may have special housing needs and who are moderate to
very low income eligible households.
(6) To build the organizational and technical capacity
of community-based organizations so as to optimize the role
of these organizations in the production of affordable
housing.
SECTION V. ESTABLISHMENT OF THE LOCAL HOUSING ASSISTANCE PROGRAM.
A. The Local Housing Assistance Program is hereby created
and established. The City of Delray Beach shall use the funds
received from the State pursuant to the State Housing Initiative
Partnership Act (SHIP) to implement the Local Housing Assistance
Program (LHAP). The funds shall be distributed in the following
manner:
(1) Ninety percent (90%) of the funds shall be used by
the City to implement the following locally designed
strategies:
- 3 - Ord. No. 2-93
(a) New Construction - Eligible sponsors shall be
awarded funds to construct eligible housing
for eligible persons.
(b) Rehabilitation - Eligible persons who own and
occupy substandard housing units shall be
awarded funds to renovate such units as
eligible housing.
(c) Purchase Assistance - Ownership opportunities
shall be created for eligible persons through
mortgage interest reductions, and/or low
interest loans for down payments and closing
costs.
(d) Acquisition/Rehabilitation - Eligible
sponsors shall be awarded funds to acquire
existing housing units for renovation to
provide housing for eligible persons.
(e) Impact Fee Assistance - Eligible sponsors
shall be awarded funds for the payment of
impact fees for eligible housing for eligible
persons.
(f) Land Bank - The City may, through purchase or
donation, acquire land independent of a
specific project for the express purpose of
providing eligible housing at a future date.
(g) The City staff assigned to administer the
SHIP funds shall work with lending
institutions to meet their obligation under
the Community Reinvestment Act (CRA) to
affirmatively address the credit needs of the
entire community. In meeting their
obligation, they shall be encouraged to
engage in activities that include, but are
not limited to:
1. Increase efforts to make loans for
home mortgages and home improvements in
conjunction with government insured lending
programs and to make loans with high loan to
value ratios when there is private mortgage
insurance;
- 4 - Ord. No. 2-93
2. Provide assistance to existing
community-based housing development programs
or emerging organizations;
3. Work with the City and eligible
sponsors to provide low-cost loans, interest
point buydown programs and other cost-sharing
and cost-saving mechanisms in order to
facilitate home ownership for lower income
households or persons having special housing
needs.
(h) To facilitate ~he production of affordable
housing by community-based organizations, the
City, in cooperation with the Local Housing
Partnership, shall assist the local based
organizations to structure financial packages
from a variety of sources such as banks and
other lending institutions, consortia or
corporate and philanthropic organizations,
foundations and/or insurance companies.
(i) Provide the local matching funds in order to
obtain and use Federal housing grants with
mandatory match requirements. The City will
endeavor to apply for and participate in
Federal grant programs that are consistent
with policies, goals and objectives
identified within the Housing Element of the
Comprehensive Plan.
(2) The City hereby specifically finds the cost of
administering the Local Housing Assistance Program shall not
exceed ten percent (10%) of the funding received from the
State pursuant to the State Housing Initiative Partnership
Act.
(3) The Local Housing Assistance Program shall include
all other lawful objectives not previously listed if said
objectives have been adopted into the LHAP in the manner
provided for by Florida Statutes and Florida Administrative
Code.
- 5 - Ord. No. 2-93
SECTION VI. DESIGNATION OF RESPONSIBILITY FOR ADMINISTRATION AND
IMPLEMENTATION OF THE LOCAL HOUSING ASSISTANCE PROGRAM.
A. The City of Delray Beach, Department of Community
Improvement, shall be responsible for implementation and
administration of the Local Housing Assistance Program.
B. The City shall designate a full-time employee whose
responsibility shall be to work with the Local Housing Partnership and
Affordable Housing- Committee to monitor the success of the LHAP,
provide advice and suggestions as to whether and in what ways the LHAP
might be improved from year to year. Coordinate with the State for
specific requirements governing the ,program, inform non-profit
developers and community-based organizations of the availability of
the Trust Fund program.
C. Staff will also work with the LHAP to coordinate local
programs such as community loan funds, inclusionary housing programs,
other State funded affordable housing programs, Federally funded
affordable housing programs, and other grant programs that may be
available to maximize the production of eligible housing through the
Local Housing Assistance Program.
D. The total amount paid for any administrative expenses
in connection with the LHAP will not exceed ten percent (10%) of the
proceeds of the local housing distribution. The City shall not treat
as administrative expenses any costs previously .borne by another
funding source which could continue to be available at the time the
LHAP is submitted.
E. The LHAP shall be implemented in accordance with the
criteria and administrative procedures set forth in Florida Statute
420.9075, as the same may be amended from time to time.
F. The City shall comply with all rules and regulations of
the Florida Housing Finance Agency in connection with required
reporting by the City of compliance with its Local Housing Assistance
Program.
G. Prior to receiving an award, all eligible persons or
eligible sponsors shall enter into an agreement to comply with the
affordable housing criteria provided under Florida Statutes and this
ordinance. All eligible persons or eligible sponsors shall include in
the deed transferring ownership of the property to the eligible person
or eligible sponsor a covenant agreeing to comply with the terms of
the above-described laws, which covenant shall run with the land or,
in the alternative, the agreement shall be made a part of the mortgage
- 6 - Ord. No. 2-93
agreement. Failure to comply with the covenant in the mortgage shall
result in a default of the mortgage with all remedies and rights for
enforcement inuring to the benefit of the City.
H. Eligible sponsors receiving assistance from both the
State Housing Initiative Partnership (SHIP) Program and the Low Income
Housing Tax Credit (LIHTC) Program shall be required to comply with
the income, affordability, and other LIHTC requirements.
SECTION VII. CREATION OF THE AFFORDABLE HOUSING ADVISORY COMMITTEE.
A. The Affordable Housing Advisory Committee is hereby
created and established. The members of the Advisory Committee shall
be appointed by Resolution of the City Commission of the City of
Delray Beach, Florida.
B. The Resolution appointing the Affordable Housing
Advisory Committee shall define affordable housing as applicable to
the City in a way that is consistent with the adopted local
Comprehensive Plan.
C. The Affordable Housing Advisory Committee shall consist
of nine (9) members. Five (5) members shall constitute a quorum. The
committee may not take formal actions unless a quorum is present, but
may meet to hear presentations if duly noticed. The Affordable
Housing Advisory Committee shall include the following:
(1) One citizen who is actively engaged in the
residential building industry.
(2) One citizen who is actively engaged in the banking
or mortgage industry.
(3) One citizen who is a representative of those areas
of labor engaged in home building.
(4) One citizen who is designated as an advocate for
low income persons.
(5) One citizen who is a provider of affordable
housing.
(6) One citizen who is a real estate professional.
(7) Three members appointed at large.
- 7 - Ord. No. 2-93
D. Within nine (9) months from the adoption of this
ordinance, the Affordable Housing Advisory Committee shall make
recommendations approved by a majority of its membership at a public
hearing. Notice of the time, date and place of the public hearing of
the Affordable Housing Advisory Committee to adopt final affordable
housing incentive recommendations shall be published in a newspaper of
general paid circulation in the City.
Such notice shall contain a short and concise summary
of the affordable housing incentive recommendations to be considered
by the Affordable Housing Advisory Committee. The notice shall also
state the public place where a copy of the tentative Affordable
Housing Advisory Committee recommendation can be obtained by
interested persons.
SECTION VIII. ADOPTION OF THE AFFORDABLE HOUSING INCENTIVE PLAN.
An Affordable Housing Incentive Plan shall be prepared and
adopted in accordance with the criteria and procedures set forth in
Florida Statutes 420.9076(6) and (7), as the same may be amended from
time to time.
SECTION IX. SEVERABILITY.
If any phrase or portion of this ordinance, or the
particular application thereof, shall be held invalid or
unconstitutional by any court, administrative agency or other body
with appropriate jurisdiction, the remaining section, subsection,
sentences, clauses or phrases and their application shall not be
affected thereby.
SECTION X.
That all ordinances or parts of ordinances which are in
conflict herewith be, and the same are hereby repealed.
SECTION XI.
That this ordinance shall become effective thirty (30) days
from the date of passage on second and final reading.
- 8 - Ord. No. 2-93
PASSED AND ADOPTED in regular session on second and final
reading on this the 23rd day of February, 1993.
ATTEST:
- v tity Cl~k'
First Reading February 9, 1993
Second Reading February 23, 1993
- 9 - Ord. No. 2-93
MEMORANDUM
TO: MAYOR AND CITY COMMISSIONERS
FROM: CITY MANAGER~t'~/~/~
SUBJECT: AGENDA ITEM # /0' C.- MEETING OF FEBRUARY 23, %993
ORDINANCE NO. 2-93
DATE: February 19, 1993
This is second reading of an ordinance creating a Housing Trust Fund
and an Affordable Housing Advisory Committee in conjunction with the
State Housing Initiative Partnership (SHIP) program.
The ordinance also provides for the the establishment of a Local
Housing Partnership, local housing assistance program, and the
creation of an Affordable Housing Incentive Plan. A detailed staff
report is attached as background material for this item.
Recommend approval of Ordinance No. 2-93 on second and final reading.
5-0
MEMORANDUM
TO: DAVID HARDEN, CITY MANAGER
FROM: LULA C. BUTLER, DIRECTOR, COMMUNITY IMPROVEMENT ~
RE: FIRST READING - ORDINANCE ~2-93 AS REQUIRED BY RULE 91-37
OF ~ FLORIDA ADMINISTRATIVE CODE
DATE: FEBRUARY 4, 1993
I~BEFORE ~E COMMISSION:
First reading of the proposed ordinance required under Rule 91-37
covering the SHIP Program providing for the creation of a Housing
Trust Fund, providing for the intent and purpose of the Local
Housing Assistance Program, designating the administrative
function and responsibility, providing for the creation of an
Affordable Housing Advisory Committee and other provisions
pursuant to guidelines adopted under the Rule, which was
effective November 27, 1992.
BACKGROUND:
The State requirements for a Commission-appointed Affordable
Housing Advisory Committee and the required Ordinance for
participation in the State Housing Initiatives Partnership
Program (SHIP), was introduced by staff to the City Commission at
the workshop meeting of January 5, 1993. The Ordinance that is
now before you for first reading is pursuant to Section 91-37.004
of the Rule. The same requires that Cities and/or Counties to be
eligible for funds under the SHIP Program, must adopt an
ordinance containing:
(1) The creation of an Affordable Housing Assistance Trust
Fund. This will be the depository created by the City to
which SHIP funds are distributed.
(2) Establishment of a Local Housing Assistance Program -
which is the locally determined program of what the City
will do with SHIP funds once received.
(3) Designation of the responsibility for the implementation
and administration of the Local Housing Assistance Program.
(4) Creation of the Affordable Housing Advisory Committee
who will be responsible for making recommendations to the
Commission on various incentives to provide affordable
housing, including regulatory reform. Their recommendations
are used in the development of the Affordable Housing
Incentive Plan.
Page 2
David Harden
First Reading - SHIP Ordinance
The Ordinance is developed in compliance with various sections of
Rule 91-37 incorporating all required language and commitments.
The City will be responsible for submitting the detailed Housing
Assistance Plan to be approved by the State Housing Finance
Agency by prior to June 1, 1993. Staff will also be working with
the Affordable Housing Advisory Committee to develop the Housing
Incentive Plan, which must be approved by the City Commission and
submitted to the State within 12 months of the adoption of this
Ordinance.
RECOMMENDATION:
Staff is recommending City Commission approve the proposed
ordinance on first reading and hold the required public hearing
on the same at the next regularly scheduled meeting. The
ordinance should be effective no earlier than 30 days after
adoption.
LB: DQ
Attachments
SHIP.2
ORDINANCE NO. 2-93
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, PURSUANT TO THE STATE HOUSING
INITIATIVES PARTNERSHIP (SHIP) PROGRAM, PROVIDING FOR
DEFINITIONS; PROVIDING FOR THE CREATION OF THE LOCAL
HOUSING ASSISTANCE TRUST FUND; PROVIDING FOR THE
ESTABLISHMENT OF THE LOCAL HOUSING PARTNERSHIP;
PROVIDING FOR THE INTENT AND PURPOSE OF THE LOCAL
HOUSING ASSISTANCE PROGRAM; PROVIDING FOR THE
ESTABLISHMENT OF THE LOCAL HOUSING ASSISTANCE PROGRAM;
DESIGNATING THE RESPONSIBILITY FOR THE IMPLEMENTATION
AND ADMINISTRATION OF THE LOCAL HOUSING ASSISTANCE
PROGRAM; PROVIDING FOR THE CREATION OF AN AFFORDABLE
HOUSING ADVISORY COMMITTEE; PROVIDING FOR GUIDELINES TO
BE UTILIZED BY SAID COMMITTEE IN ADOPTION OF
RECOMMENDATIONS FOR THE AFFORDABLE HOUSING INCENTIVE
PLAN; PROVIDING FOR ADOPTION OF THE AFFORDABLE HOUSING
INCENTIVE PLAN; PROVIDING FOR SEVERABILITY; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the State of Florida under specific authority
established by State Statute has established the Housing
Initiative Partnership (SHIP) Program,
WHEREAS, the rules established the procedures by which
the Florida Housing Finance Agency shall administer the State
Program,
WHEREAS, the program was developed to provide funds to
local governments as an incentive to create partnerships to
produce and preserve affordable housing,
WHEREAS, the City of Delray Beach is eligible to
receive funds to implement eligible activities as an Entitlement
City under the Department of Housing and Urban Development,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION
OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS:
SECTION I. DEFINITIONS
The definitions as set forth in Florida Statutes 420.9071 and
Florida Administrative Code 91-37.002 and as may be amended from
time to time are hereby adopted by reference and made a part
hereof as if fully set forth herein.
1
SECTION II. CREATION OF THE LOCAL HOUSING ASSISTANCE TRUST FUND
A. The Local Housing Assistance Trust Fund is hereby created and
established by the City of Delray Beach pursuant to policies and
procedures established by the Finance Director. The City shall
have deposited all monies received or budgeted to provide funding
for the LHAP into the Local Housing Assistance Trust Fund.
Administration of the Trust Fund shall comply with Rule 91-
37.007, Florida Administrative Code.
B. Expenditures other than for the administration and
implementation of the Local Housing Assistance Program shall not
be made from the Local Housing Assistance Trust Fund.
C. Amounts on deposit in the Local Housing Assistance Trust Fund
shall be invested pursuant to established policies approved by
the City Commission and administered by the Director of Finance
for the City of Delray Beach. All investment earnings shall be
retained in the Trust Fund and used for the purposes thereof.
D. The City of Delray Beach shall provide for the Local Housing
Assistance Trust Fund to be separately stated as a special
revenue fund in the City's audited financial statements. Copies
of such audited financial statements shall be forwarded to the
Florida Housing Finance Agency as soon as such statements are
available.
SECTION III. CREATION OF THE LOCAL HOUSING PARTNERSHIP
A. The City staff will work cooperatively with businesses and
local agencies to create a Local Housing Partnership to
facilitate implementation of various activities defined within
the Housing Assistance Plan. The Partnership shall include, but
is not limited to Community based organizations, for profit
housing developers, lending institutions, providers of
professional services related to affordable housing and service
organizations working on behalf of persons with special housing
needs.
B. The Local Housing Partnership shall assist with
implementation of the Local Housing Assistance Program in a
manner that provides support services for housing program
beneficiaries such as training to prepare persons for the
responsibility of homeownership, counseling of tenants, and the
establishment of support services necessary to carry out
affordable housing activities as defined by the City of Delray
Beach. Activities implemented cooperatively with the Partnership
shall be consistent with policies established within this
Ordinance, Florida Statutes and Rule 91-37, Florida
Administrative Code.
SECTION IV. INTENT AND PURPOSE OF THE LOCAL HOUSING ASSISTANCE
PROGRAM
A. The intent of the Local Housing Assistance Program is:
(1) To increase the availability of affordable housing
units by combining local resources and cost-saving measures
into a Local housing Partnership and using private and
public funds to reduce the cost of housing.
(2) To promote and assist in achieving the growth management
goals contained in the City's approved Comprehensive Plan,
providing for housing units that are affordable to persons
who have special housing needs, very iow-income, iow-income
and moderate income households.
(3) To promote innovative design of eligible housing that
provides for cost savings and flexible design options
without compromising the quality of decent standard housing.
(4) To provide for the preservation of existing housing
units normally occupied by low and moderate income persons,
providing for decent, safe and standard housing.
(5) To promote mixed-income housing within the City,
providing for affordable housing opportunities for persons
who may have special housing needs and who are moderate to
very low-income eligible households.
(6) To build the organizational and technical capacity of
community-based organizations so as to optimize the role of
these organizations in the production of affordable housing.
SECTION V. ESTABLISHMENT OF THE LOCAL HOUSING ASSISTANCE PROGRAM
A. The Local Housing Assistance Program is hereby created and
established. The City of Delray Beach shall use the funds
received from the State pursuant to the State Housing Initiative
Partnership Act (SHIP) to implement the Local Housing Assistance
(LHAP) Program. The funds shall be distributed in the following
manner:
(1) Ninety percent (90%) of the funds shall be used by the City
to implement the following locally designed strategies:
(a) New Construction - Eligible sponsors shall be awarded
funds to construct eligible housing for eligible persons.
(b) Rehabilitation - Eligible persons who own and occupy
substandard housing units shall be awarded funds to renovate
such units as eligible housing.
(c) Purchase Assistance - Ownership opportunities shall be
created for eligible persons through mortgage interest
reductions, and/or low interest loans for down payments and
closing costs.
(d) Acquisition/Rehabilitation - Eligible sponsors shall be
awarded funds to acquire existing housing units for
renovation to provide housing for eligible persons.
(e) Impact Fee Assistance - Eligible sponsors shall be
awarded funds for the payment of impact fees for eligible
housing for eligible persons.
(f) Land Bank - The City may through purchase or donation,
acquire land independent of a specific project for the
expressed purpose of providing eligible housing at a future
date.
(g) The City staff assigned to administer the SHIP funds
shall work with lending institutions to meet their
obligation under the Community Reinvestment Act (CRA) to
affirmatively address the credit needs of the entire
community. In meeting their obligation, they shall be
encouraged to engage in activities that include, but are not
limited to: (1) increase efforts to make loans for home
mortgages and home improvements in conjunction with
government insured lending programs and to make loans with
high loan to value ratios when there is private mortgage
insurance; (2) provide assistance to existing community-
based housing development programs or emerging
organizations; (3) work with the city and eligible sponsors
to provide low-cost loans, interest point buydown programs
and other cost-sharing and cost-saving mechanisms in order
to facilitate homeownership for lower income households or
persons having special housing needs.
(h) To facilitate the production of affordable housing by
community based organizations, the City in cooperation with
the Local Housing Partnership shall assist the local based
organizations to structure financial packages from a variety
of sources such as banks and other lending institutions,
consortia or corporate and philanthropic organizations,
foundations and/or insurance companies.
(i) Provide the local matching funds in order to obtain and
use Federal housing grants with mandatory match
requirements. The City will endeavor to apply for and
participate in federal grant programs that are consistent
with policies, goals and objectives identified within the
Housing Element of the Comprehensive Plan.
(2) The City hereby specifically finds the cost of administering
the Local Housing Assistance Program shall not exceed 10% of the
funding received from the State pursuant to the State Housing
Initiative Partnership Act.
(3) The Local Housing Assistance Program shall include all other
lawful objectives not previously listed if said objectives have
been adopted into the LHAP in the manner provided for by Florida
Statutes and Florida Administrative Code.
SECTION VI. DESIGNATION OF RESPONSIBILITY FOR ADMINISTRATION AND
IMPLEMENTATION OF THE LOCAL HOUSING ASSISTANCE PROGRAM
A. The City of Delray Beach, Department of Community
Improvement shall be responsible for implementation and
administration of the Local Housing Assistance Program.
B. The City shall designate a full-time employee whose
responsibility shall be to work with the Local Housing
Partnership and Affordable Housing Committee to monitor the
success of the LHAP, provide advice and suggestions as to whether
and in what ways the LHAP might be improved from year to year.
Coordinate with the State for specific requirements governing the
program, inform non-profit developers and community-based
organizations of the availability of the Trust Fund program.
C. Staff will also work with the LHP to coordinate local
programs such as community loan funds, inclusionary housing
programs, other state funded affordable housing programs,
federally funded affordable housing program and other grant
programs that may be available to maximize the production of
eligible housing through the Local Housing Assistance Program.
D. The total amount paid for any administrative expenses in
connection with the LHAP will not exceed 10% of the proceeds of
the local housing distribution. The City shall not treat as
administrative expenses any costs previously borne by another
funding source which could continue to be available at the time
the LHAP is submitted.
E. The LHAP shall be implemented in accordance with the criteria
and administrative procedures set forth in Florida Statutes
420.9075, as the same may be amended from time to time.
F. The City shall comply with all rules and regulations of the
Florida Housing Finance Agency in connection with required
reporting by the City of compliance with its Local Housing
Assistance Program.
5
G. Prior to receiving an award, all eligible persons or eligible
sponsors shall enter into an agreement to comply with the
affordable housing criteria provided under Florida Statutes and
this Ordinance. All eligible persons or eligible sponsors shall
include in the deed transferring ownership of the property to the
eligible person or eligible sponsor a covenant agreeing to comply
with the terms of the above-described laws which covenant will
run with the land or in the alternative, the agreement shall be
made a part of the mortgage agreement. Failure to comply with
the covenant in the mortgage shall result in a default of the
mortgage with all remedies and rights for enforcement inuring to
the benefit of the City.
H. Eligible sponsors receiving assistance from both the State
Housing Initiative Partnership (SHIP) Program and the Low Income
Housing Tax Credit (LIHTC) Program shall be required to comply
with the income, affordability, and other LIHTC requirements.
SECTION VII. CREATION OF THE AFFORDABLE HOUSING ADVISORY
COMMITTEE
A. The Affordable Housing Advisory Committee is hereby created
and established. The members of the Advisory Committee shall be
appointed by re~olution of the Delray Beach City Commission.
B. The resolution appointing the Affordable Housing Advisory
Committee shall define affordable housing as applicable to the
City in a way that is consistent with the adopted local
comprehensive plan.
C. The Affordable Housing Advisory Committee shall consist of
nine (9) members. Five (5) members shall constitute a quorum.
The committee may not take formal actions unless a quorum is
present, but may meet to hear presentations if duly noticed. The
Affordable Housing Advisory Committee shall include the
following:
(1) One citizen who is actively engaged in the residential
building industry.
(2) One citizen who is actively engaged in the banking or
mortgage industry.
(3) One citizen who is a representative of those areas of
labor engaged in home building.
(4) One citizen who is designated as an advocate for Iow-
income persons.
(5) One citizen who is a provider of affordable housing.
(6) One citizen who is a real estate professional.
(7) Three members appointed at large.
6
D. Within nine (9) months from the adoption of this Ordinance,
the Affordable Housing Advisory Committee shall make
recommendations approved by a majority of its membership at a
public hearing. Notice of the time, date and place of the public
hearing of the Affordable Housing Advisory Committee to adopt
final affordable housing incentive recommendations shall be
published in a newspaper of general paid circulation in the City.
Such notice shall contain a short and concise summary of the
affordable housing incentive recommendations to be considered by
the Affordable Housing Advisory Committee. The notice shall also
state the public place where a copy of the tentative Affordable
Housing Advisory Committee recommendation can be obtained by
interested persons.
SECTION VIII. ADOPTION OF THE AFFORDABLE HOUSING INCENTIVE PLAN
An Affordable Housing Incentive Plan shall be prepared and
adopted in accordance with the criteria and procedures set forth
in Florida Statutes 420.9076(6) and (7), as the same may be
amended from time to time.
SECTION IX. SEVERABILITY
If any phrase or portion of this Ordinance, or the particular
application thereof, shall be held invalid or unconstitutional by
any court, administrative agency or other body with appropriate
jurisdiction, the remaining section, subsection, sentences,
clauses, or phases and their application shall not be affected
thereby.
SECTION X. That all ordinances or parts of ordinances which are
in conflict herewith be, and the same are hereby repealed.
7
SECTION XI. That this ordinance shall become effective 30 days
from passage on second and final reading.
PASSED AND ADOPTED in regular session on second and final
reading on this the day of , 1993.
Mayor
ATTEST:
City Clerk
First Reading
Second Reading
Ord. No. 2-93
8
MEMORANDUM
TO: MAYOR AND CITY COMMISSIONERS
FROM: CITY MANAGER ~.~l
SUBJECT: AGENDA ITEM # /~ - MEETING OF FEBRUARY 9. 1993
ORDINANCE NO. 2-93
DATE: February 5, 1993
This is first reading of an ordinance creating a Housing Trust Fund
and an Affordable Housing Advisory Committee in conjunction with the
State Housing Initiative Partnership (SHIP) program.
The ordinance also provides for the the establishment of a Local
Housing Partnership, local housing assistance program, and the
creation of an Affordable Housing Incentive Plan. A detailed staff
report is attached as background material for this item.
Recommend approval of Ordinance No. 2-93.
ORDINANCE NO. 2-93 ~\~~5~~
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, PURSUANT TO THE STATE HOUSING
INITIATIVES PARTNERSHIP (SHIP) PROGRAM, PROVIDING FOR
DEFINITIONS; PROVIDING FOR THE CREATION OF THE LOCAL
HOUSING ASSISTANCE TRUST FUND; PROVIDING FOR ~HE
ESTABLISHMENT OF THE LOCAL HOUSING PARTNER~IP;
PROVIDING FOR THE INTENT AND PURPOSE OF THE/LOCAL
HOUSING ASSISTANCE PROGRAM; PROVIDING F~R THE
ESTABLISHMENT OF THE LOCAL HOUSING ASSISTANCE/PROGRAM;
DESIGNATING THE RESPONSIBILITY FOR THE IMPLEMENTATION
AND ADMINISTRATION OF THE LOCAL HOUSING/ASSISTANCE
PROGRAM, PROVIDING FOR T~E CREATION OF A~ AFFORDABLE
HOUSING ADVISORY COMMITTEE, PROVIDING FOR/GUIDELINES TO
BE UTILIZED BY SAID COMMITTEE IN/ADOPTION OF
RECOMMENDATIONS FOR THE AFFORDABLE Ho~SING INCENTIVE
PU , PROVIDING FOR OPTION OF THE A ORDABLE H?USING
PROVIDING AN EFFECTIVE DATE. ~~
WHEREAS, the State of Florid~ under specific authority
established by State Statute has .~stablished the Housing
Initiative Partnership (SHIP) Progra~'
WHEREAS, the rules estabiished the procedures by which
the Florida Housing Finance AgenCy shall administer the State
Program, /
WHEREAS, the program/was developed to provide funds to
local governments as an ince~tive to create partnerships to
produce and preserve affordabl~ housing,
WHEREAS, the Cit~'of~ Delray Beach is eligible to
receive funds to implement ~ligible activities as an Entitlement
City under the Department o; Housing and Urban Development,
NOW, THEREFORE,/BE IT ORDAINED BY THE CITY COMMISSION
OF THE CITY OF DELRAY BETH, FLORIDA, AS FOLLOWS:
/
SECTION I. DEFINITIO~/~_
A. As used in this ~rdinance, the following definitions shall
apply: /
(1) "Adjusted for/family size" means adjusted in a manner which
results in ~ income eligibility level that is lower for
households ~aving fewer than four people, or higher for
households having more than four people, than the median
income eligibility determined, and based upon a formula
established by the United States Department of Housing and
Urban Development. Students as defined herein are to be
included in the calculation of family size.
Ord. No. 2-93
(2) "Adjusted gross income" means wages, income from assets,
regular cash or non-cash contributions, and any other
sources and benefits determined to be income by the
Department of Housing and Urban Development, adjusted for
family size, minus any applicable deductions allowable.
(3) "Administrative expenses" means those expenses directly
related to implementation of the Local Housing Assistance
Plan and Local Housing Assistance Program.
(4) "Affordable" means that contract rent and utilities or
mortgage payments, insurance, property taxes, utilities, and
homeowner's association fee, where applicable, do not exceed
thirty (30) percent of that amount which represents the
percentage of the median adjusted gross income for
households qualifying.
(5) "Award" means a loan, grant, subsidy funded wholly or
partially by the City of Delray Beach Affordable Housing
Program.
(6) "Community-based organization" means a non-profit
organization that has among its purposes the provision of
affordable housing to persons who have special housing needs
or have very low-income, low-income, or moderate-income
within the City of Delray Beach or Palm Beach County and
maintains, through a least one-third representation on the
organization's governing board, accountability to housing
program beneficiaries and residents of the designated area.
(7) "Eligible housing" means any real and personal property
located in the City of Delray Beach which is designated and
intended for the primary purpose or providing decent, safe,
and sanitary residential units that are designed to meet the
standards of Chapter 553, Florida Statutes, for
homeownership or rental for eligible persons as designated
by the City of Delray Beach.
(8) "Eligible municipality" means a municipality that is
eligible for federal community development block grants as
an entitlement community identified in 24 C.F.R. Section
570, Subpart D, Entitlement Grants.
(9) "Eligible person" means one or more natural persons or a
family determined by the City of Delray Beach to have
special housing needs or to have very low-income, low-
income, or moderate income according to the adjusted gross
income of the resident with adjustment made for family size.
(10) "Eligible sponsor" means a community-based organization, a
person or a private or public for profit or non-profit
entity that applies for assistance under the Local Housing
Assistance Program for the purpose of providing eligible
housing for eligible persons.
Ord. No. 2-93
--2--
(11) "Grant" means a distribution of a portion of a local housing
distribution to an eligible sponsor or eligible person to
provide assistance under the Local Housing Assistance
Program.
(12) "Homeownership" means a distribution of a portion of a local
housing distribution to an eligible person or eligible
sponsor for construction, rehabilitation, purchase, or
lease-purchase financing for owner-occupied eligible
housing.
(13) "Interlocal entity" means any entity created pursuant to the
provisions of Chapter 163, Part I, Florida Statutes for the
purpose of a joint local housing assistance program pursuant
to the provisions of the Florida Statutes.
(14) "Loan" means a pledge of the local housing distribution
monies to an eligible sponsor or eligible person to finance
the acquisition, construction, or rehabilitation of eligible
housing.
(15) "Local Housing Assistance Plan" means a concise description
of the Local Housing Assistance Program adopted by this
Ordinance with an explanation of the way in which the Local
Housing Assistance Program meets the requirements of this
Ordinanceand Florida Administrative Code.
(16) "Local housing distribution" means the proceeds of the
taxes collected under Chapter 201 deposited into the Local
Government Housing Trust and distributed to counties and
eligible municipalities participating in the State Housing
Initiatives Partnership Program pursuant to applicable
sections of the Florida Statutes.
(17) "Local Housing Partnership" means the implementation of the
Local Housing Assistance Program in a manner that involves,
but is not limited to, the County/City, community-based
organizations, for profit housing developers, lending
institutions, providers or professional services relating to
affordable housing, and service organizations working on
behalf of persons with special housing needs. The term
includes initiatives to provide support services for housing
program beneficiaries such as training to prepare persons
for the responsibility of homeownership, counseling of
tenants, and the establishment of support services such as
day care, health care, and transportation.
Ord. No. 2-93
--3--
(18) "Low-income person" means one or more natural persons or a
family, not including students, that has a total annual
adjusted gross income for the household that does not exceed
80 percent of the median annual adjusted gross income for
households established for Delray Beach. With respect to
rental units, the low-income household's annual adjusted
gross income at the time of initial occupancy may not exceed
80 percent of area median income adjusted for family size.
While occupying the rental unit, a low-income household's
annual adjusted gross income may increase to an amount not
to exceed 140 percent of 80 percent of area median income
adjusted for family size.
(19) "Moderate-income person" means one or more natural persons
or a family, not including students, that has a total annual
adjusted gross income for the household that does not exceed
120 percent of the median annual adjusted gross income for
households within the City of Delray Beach. With respect to
rental units, the moderate-income household's annual
adjusted gross income at the time of initial occupancy may
not exceed 120 percent of area median income adjusted for
family size. While occupying the rental unit, a moderate-
income household's annual adjusted gross income may increase
to an amount not to exceed 140 percent of 120 percent of
area median income adjusted for family size.
(20) "Personal property" means major appliances, including a
freestanding refrigerator or stove, to be identified on the
encumbering documents.
(21) "Persons who have special housing needs" means persons who
have incomes not exceeding moderate-income and who because
of particular social, economic, or health-related
circumstances have greater difficulty acquiring or
maintaining affordable housing. Such persons may, for
example, encounter resistance to their residing in
particular communities, increase housing cost resulting from
unique needs, and high risk of institutionalization. As set
out in the State of Florida Comprehensive Housing
Affordability Strategy (1991), these individuals include:
persons with developmental disabilities; person with mental
illness/chemical dependency; person with AIDS and HIV
disease; runaway and abandoned youth; single-parent
families; public assistance recipients; migrant and seasonal
farmworkers; refugees and entrants; and the elderly and
disabled adults.
(22) "Student" means a person not living with his or her parent
or guardian who is eligible to be claimed by the person's
parent or guardian under the Federal Income Tax Code and who
is enrolled at least half time in a secondary school,
vocational-technical school, community college, or
university. The term does not include a person
participating in a job training program approved by the
county or the City of Delray Beach.
Ord. No. 2-93
-4-
(23) "Very-low-income person" means one or more natural persons
or a family, not including students, that has a total annual
adjusted gross income for the household that does not exceed
50 percent of the median annual adjusted gross income for
households within the City. With respect to rental units,
the very-low-income household's annual adjusted gross income
at the time of initial occupancy may not exceed 50 percent
of area median income adjusted for family size. While
occupying the rental unit, a very-low-income household's
annual adjusted gross income may increase to an amount not
to exceed 140 percent of 50 percent of area median income
adjusted for family size.
SECTION II. CREATION OF THE LOCAL HOUSING ASSISTANCE TRUST FUND
A. The Local Housing Assistance Trust Fund is hereby created and
established by the City of Delray Beach pursuant to policies and
procedures established by the Finance Director. The City shall
have deposited all monies received or budgeted to provide funding
for the LHAP into the Local Housing Assistance Trust Fund.
Administration of the Trust Fund shall comply with Rule 91-
37.007, Florida Administrative Code.
B. Expenditures other than for the administration and
implementation of the Local Housing Assistance Program shall not
be made from the Local Housing Assistance Trust Fund.
C. Amounts on deposit in the Local Housing Assistance Trust Fund
shall be invested pursuant to established policies approved by
the City Commission and administered by the Director of Finance
for the City of Delray Beach. All investment earnings shall be
retained in the Trust Fund and used for the purposes thereof.
D. The City of Delray Beach shall provide for the Local Housing
Assistance Trust Fund to be separately stated as a special
revenue fund in the City's audited financial statements. Copies
of such audited financial statements shall be forwarded to the
Florida Housing Finance Agency as soon as such statements are
available.
SECTION III. CREATION OF THE LOCAL HOUSING PARTNERSHIP
A. The City staff will work cooperatively with businesses and
local agencies to create a Local Housing Partnership to
facilitate implementation of various activities defined within
the Housing Assistance Plan. The Partnership shall include, but
is not limited to Community based organizations, for profit
housing developers, lending institutions, providers of
professional services related to affordable housing and service
organizations working on behalf of persons with special housing
needs.
Ord. No. 2-93
-5-
B. The Local Housing Partnership shall assist with
implementation of the Local Housing Assistance Program in a
manner that provides support services for housing program
beneficiaries such as training to prepare persons for the
responsibility of homeownership, counseling of tenants, and the
establishment of support services necessary to carry out
affordable housing activities as defined by the City of Delray
Beach. Activities implemented cooperatively with the Partnership
shall be consistent with policies established within this
Ordinance, Florida Statutes and Rule 91-37, Florida
Administrative Code.
SECTION IV. INTENT AND PURPOSE OF THE LOCAL HOUSING ASSISTANCE
PROGRAM
A. The intent of the Local Housing Assistance Program is:
(1) To increase the availability of affordable housing
units by combining local resources and cost-saving measures
into a Local housing Partnership and using private and
public funds to reduce the cost of housing.
(2) To promote and assist in achieving the growth management
goals contained in the City's approved Comprehensive Plan,
providing for housing units that are affordable to persons
who have special housing needs, very iow-income, iow-income
and moderate income households.
(3) To promote innovative design of eligible housing that
provides for cost savings and flexible design options
without compromising the quality of decent standard housing.
(4) To provide for the preservation of existing housing
units normally occupied by Iow and moderate income persons,
providing for decent, safe and standard housing.
(5) To promote mixed-income housing within the City,
providing for affordable housing opportunities for persons
who may have special housing needs and who are moderate to
very Iow-income eligible households.
(6) To build the organizational and technical capacity of
community-based organizations so as to optimize the role of
these organizations in the production of affordable housing.
SECTION V. ESTABLISHMENT OF THE LOCAL HOUSING ASSISTANCE PROGRAM
A. The Local Housing Assistance Program is hereby created and
established. The City of Delray Beach shall use the funds
received from the State pursuant to the State Housing Initiative
Partnership Act (SHIP) to implement the Local Housing Assistance
(LHAP) Program. The funds shall be distributed in the following
manner:
Ord. No. 2-93
--6--
(1) Ninety percent (90%) of the funds shall be used by the City
to implement the following locally designed strategies:
(a) New Construction - Eligible sponsors shall be awarded
funds to construct eligible housing for eligible persons.
(b) Rehabilitation - Eligible persons who own and occupy
substandard housing units shall be awarded funds to renovate
such units as eligible housing.
(c) Purchase Assistance - Ownership opportunities shall be
created for eligible persons through mortgage interest
reductions, and/or low interest loans for down payments and
closing costs.
(d) Acquisition/Rehabilitation - Eligible sponsors shall be
awarded funds to acquire existing housing units for
renovation to provide housing for eligible persons.
(e) Impact Fee Assistance - Eligible sponsors shall be
awarded funds for the payment of impact fees for eligible
housing for eligible persons.
(f) Land Bank - The City may through purchase or donation,
acquire land independent of a specific project for the
expressed purpose of providing eligible housing at a future
date.
(g) The City staff assigned to administer the SHIP funds
shall work with lending institutions to meet their
obligation under the Community Reinvestment Act (CRA) to
affirmatively address the credit needs of the entire
community. In meeting their obligation, they shall be
encouraged to engage in activities that include, but are not
limited to: (1) increase efforts to make loans for home
mortgages and home improvements in conjunction with
government insured lending programs and to make loans with
high loan to value ratios when there is private mortgage
insurance; (2) provide assistance to existing community-
based housing development programs or emerging
organizations; (3) work with the city and eligible sponsors
to provide low-cost loans, interest point buydown programs
and other cost-sharing and cost-saving mechanisms in order
to facilitate homeownership for lower income households or
persons having special housing needs.
(h) To facilitate the production of affordable housing by
community based organizations, the City in cooperation with
the Local Housing Partnership shall assist the local based
organizations to structure financial packages from a variety
of sources such as banks and other lending institutions,
consortia or corporate and philanthropic organizations,
foundations and/or insurance companies.
Ord. No. 2-93
--7--
(i) Provide the local matching funds in order to obtain and
use Federal housing grants with mandatory match
requirements. The City will endeavor to apply for and
participate in federal grant programs that are consistent
with policies, goals and objectives identified within the
Housing Element of the Comprehensive Plan.
(2) The City hereby specifically finds the cost Of administering
the Local Housing Assistance Program shall not exceed 10% of the
funding received from the State pursuant to the State Housing
Initiative Partnership Act.
(3) The Local Housing Assistance Program shall include all other
lawful objectives not previously listed if said objectives have
been adopted into the LHAP in the manner provided for by Florida
Statutes and Florida Administrative Code.
SECTION VI. DESIGNATION OF RESPONSIBILITY FOR ADMINISTRATION AND
IMPLEMENTATION OF THE LOCAL HOUSING ASSISTANCE PROGRAM
A. The City of Delray Beach, Department of Community
Improvement shall be responsible for implementation and
administration of the Local Housing Assistance Program.
B. The City shall designate a full-time employee whose
responsibility shall be to work with the Local Housing
Partnership and Affordable Housing Committee to monitor the
success of the LHAP, provide advice and suggestions as to whether
and in what ways the LHAP might be improved from year to year.
Coordinate with the State for specifiu requirements governing the
program, inform non-profit developers and community-based
organizations of the availability of the Trust Fund program.
C. Staff will also work with the LHP to coordinate local
programs such as community loan funds, inclusionary housing
programs, other state funded affordable housing programs,
federally funded affordable housing program and other grant
programs that may be available to maximize the production of
eligible housing through the Local Housing Assistance Program.
D. The total amount paid for any administrative expenses in
connection with the LHAP will not exceed 10% of the proceeds of
the local housing distribution. The City shall not treat as
administrative expenses any costs previously borne by another
funding source which could continue to be available at the time
the LHAP is submitted.
E. In implementing the LHAP the City shall: Advertise the
availability of a housing assistance program in a newspaper of
general circulation and periodicals serving ethnic and diverse
neighborhoods, at least 30 days before the beginning of any
application period; adopt a maximum award schedule or system of
awards to comply with the following:
Ord. No. 2-93
--8--
(1) Sixty-five (65) percent of the funds be reserved for
homeownership for eligible persons.
(2) Seventy-five (75) percent of the funds shall be
reserved for construction, rehabilitation, or emergency
repair of eligible housing.
(3) The sales prices of new or existing eligible housing
shall not exceed ninety (90) percent of the median area
purchase price in the area where the eligible housing
is located as established by the United States
Department of Treasury in accordance with Section 3(b)2
of the United States Housing Act of 1937.
(4) All units constructed, rehabilitated, or otherwise
assisted with program funds shall be occupied by very-
low-income, low-income, or moderate-income persons and
persons who have special housing needs. At least
thirty (30) percent of the units must be occupied by
very-low-income persons and at least another thirty
(30) percent by low-income persons. The remainder
shall be occupied by persons who have special housing
needs, very-low-income, low-income, or moderate-income
persons.
(5) The amount of monthly mortgage payments or the amount
of monthly rents charged by the eligible sponsor or its
designee must be affordable to eligible persons.
(6) Loans shall be provided for periods not exceeding
thirty (30) years except for deferred payment loans or
loans that extend beyond thirty (30) years which
continue to provide eligible housing for eligible
persons.
(7) Eligible owner-occupied housing constructed,
rehabilitated, or otherwise assisted from proceeds
provided from the Local Housing Assistance Program
shall be subject to subsidy recapture provisions which
are identical to those specified in the Internal
Revenue Code of 1986.
(8) Eligible rental housing constructed, rehabilitated, or
otherwise assisted from proceeds provided from the
Local Housing Assistance Program shall be reserved for
eligible persons for the greater of fifteen (15) years
or the term of the assistance. Eligible sponsors who
offer eligible rental housing for sale before fifteen
(15) years or that have remaining mortgages funded
under the Local Housing Assistance Program must give a
first right of refusal to eligible non-profit
organizations for purchase for continued occupancy by
eligible persons.
Ord. No. 2-93
(9) The cost per unit and the maximum cost per unit for
eligible housing benefiting from awards made pursuant
to the Local Housing Assistance Program shall be
established by resolution.
(10) A qualification system for applicants for awards
consistent with the intent of the Local Housing
Assistance Program and applicable sections of the
Florida Statutes shall be established by the City.
(11) The City of Delray Beach shall annually monitor and
determine tenant eligibility and amount of subsidy
pursuant to the provisions of this Ordinance and
Florida Administrative Code.
F. The City, and all eligible sponsors shall not discriminate in
the loan application process of eligible persons for eligible
housing on the basis of race, creed, religion, color, age, sex,
marital status, familial status, national origin, or handicap.
G. The City shall comply with all rules and regulations of the
Florida Housing Finance Agency in connection with required
.reporting by the City of compliance with its Local Housing
Assistance Program.
H. Prior to receiving an award, all eligible persons or eligible
sponsors shall enter into an agreement to comply with the
affordable housing criteria provided under Florida Statutes and
this Ordinance. All eligible persons or eligible sponsors shall
include in the deed transferring ownership of the property to the
eligible person or eligible sponsor a covenant agreeing to comply
with the terms of the above-described laws which covenant will
run with the land or in the alternative, the agreement shall be
made a part of the mortgage agreement. Failure to comply with
the covenant in the mortgage shall result in a default of the
mortgage with all remedies and rights for enforcement inuring to
the benefit of the City.
I. Eligible sponsors receiving assistance from both the State
Housing Initiative Partnership (SHIP) Program and the Low Income
Housing Tax Credit (LIHTC) Program shall be required to comply
with the income, affordability, and other LIHTC requirements.
SECTION VII. CREATION OF THE AFFORDABLE HOUSING ADVISORY
COMMITTEE
A. The Affordable Housing Advisory Committee is hereby created
and established. The members of the Advisory Committee shall be
appointed by resolution of the Delray Beach City Commission.
Ord. No. 2-93
-10-
B. The resolution appginting the Affordable Housing Advisory
Committee shall define affordable housing as applicable to the
City in a way that is consistent with the adopted local
comprehensive plan.
C. The Affordable Housing Advisory Committee shall consist of
nine (9) members. Five (5) members shall constitute a quorum.
The committee may not take formal actions unless a quorum is
present, but may meet to hear presentations if duly noticed. The
Affordable Housing Advisory Committee shall include the
following:
(1) One citizen who is actively engaged in the residential
building industry.
(2) One citizen who is actively engaged in the banking or
mortgage industry.
(3) One citizen who is a representative of those areas of
labor engaged in home building.
(4) One citizen who is designated as an advocate for low-
income persons.
(5) One citizen who is a provider of affordable housing.
(6) One citizen who is a real estate professional.
(7) Three members appointed at large.
D. Within nine (9) months from the adoption of this Ordinance,
the Affordable Housing Advisory Committee shall make
recommendations approved by a majority of its membership at a
public hearing. Notice of the time, date and place of the public
hearing of the Affordable Housing Advisory Committee to adopt
final affordable housing incentive recommendations shall be
published in a newspaper of general paid circulation in the City.
Such notice shall contain a short and concise'summary of the
affordable housing incentive recommendations to be considered by
the Affordable Housing Advisory Committee. The notice shall also
state the public place where a copy of the tentative Affordable
Housing Advisory Committee recommendation can be obtained by
interested persons.
Ord. No. 2-93
-11-
SECTION VIII. ADOPTION OF THE AFFORDABLE HOUSING INCENTIVE PLAN
A. Within ninety (90) days after the date of the receipt of the
affordable housing incentive recommendations from the Affordable
Housing Advisory Committee, the City shall adopt the Affordable
Housing Incentive Plan. The Affordable Housing Incentive Plan
shall consist of the adoption of specific initiatives to
encourage or facilitate affordable housing and a schedule for
implementation and must include, at a minimum:
(1) A schedule for implementation of expedited permit
processing for affordable housing projects; and
(2) An ongoing process for review of local policies,
ordinances, regulations, and comprehensive plan
provisions that significantly impact the cost of
housing.
B. Upon adoption of the Affordable Housing Incentive Plan, the
City shall so notify the Florida Housing Finance Agency by
certified mail. The notice shall include a copy of the approved
Affordable Housing Incentive Plan.
SECTION IX. SEVERABILITY
If any phrase or portion of this Ordinance, or the particular
application thereof, shall be held invalid or unconstitutional by
any court, administrative agency or other body with appropriate
jurisdiction, the remaining section, subsection, sentences,
clauses, or phases and their application shall not be affected
thereby.
SECTION X. That all ordinances or parts of ordinances which are
in conflict herewith be, and the same are hereby repealed.
SECTION XI. That this ordinance shall become effective 30 days
from passage on second and final reading.
PASSED AND ADOPTED in regular session on second and final
reading on this the day of , 1993.
Mayor
ATTEST:
City Clerk
First Reading
Second Reading Ord. No. 2-93
-]2-
Joann Peart, 107 N.W. 9th Street, stated that during
Neighborhood Task Team sessions there were several situations
wherein residents were affected by auto repair and auto body
shops.
Michael Weiner, 509 Oleander Lane, stated he, too,
feels the character of the neighborhood should be taken into
consideration, but by having certain locational and use restric-
tions apply only to full-service auto dealerships, smaller opera-
tions could then have the opportunity to become conforming uses.
Jean Beer, resident, stated that the Comprehensive Plan
is the overall plan with which the LDRs are to be consistent. It
is her opinion that this ordinance is not consistent with that
Plan. She agrees that there should be a place within the City
for these uses; however, she is concerned that service-type
businesses will be backed up to residential property. She sug-
gested that a study be conducted to locate desirable locations
for such uses.
~Ah_~, Tropic Bay, expressed concern regarding the
integrity of the residential areas of the City.
DQrothy Allport, resident, spoke in opposition to the
ordinance.
Dr. Alperin moved for denial of Ordinance No. 19-93 on
First Reading, seconded by Mr. Ellingsworth. Upon roll call the
Commission voted as follows: Mayor Lynch - Yes; Mr. Mouw - Yes;
Dr. Alperin - Yes; Mr. Ellingsworth - Yes; Mr. Randolph - Yes.
Said motion passed with a 5 to 0 vote.
Before roll call the following discussion was had:
Mayor Lynch recommended that the ordinance either be
denied or that it be returned to Planning and Zoning with a
request that the real issue be reviewed to learn if there is any
possible way to correct it. There are eighteen (18) blocks that
will be going through a transition and questioned if the City
must look at the possibility of a deteriorating situation over
the next couple of years.
Mr. Mouw stated he feels it is the responsibility of
the Commission to foresee that a deteriorating situation is
occurring and that the City should not be required to go through
five to ten years of blight in a given area before getting it
back to where the City would like to see it. However, he feels
this ordinance allows expansion City-wide.
At this point the roll was called to the motion.
12.E. Ordinance No. 2-93. Ordinance No. 2-93, creating a
Housing Trust Fund and an Affordable Housing Advisory Committee
in conjunction with the State Housing Initiative Partnership
-24- 2/9/93
(SHIP) Program, is before the Commission for consideration on
First Reading. If passed, Public Hearing will be held February
23rd.
Mr. Ellingsworth left the Commission Chambers at this
time.
The City Manager presented Ordinance No. 2-93:
AN ORDINANCE OF THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH, FLORIDA, PURSUANT TO
THE STATE HOUSING INITIATIVES PARTNERSHIP
(SHIP) PROGRAM, PROVIDING FOR DEFINITIONS;
PROVIDING FOR THE CREATION OF THE LOCAL
HOUSING ASSISTANCE TRUST FUND; ~PROVIDING FOR
THE ESTABLISHMENT OF THE LOCAL HOUSING PART-
NERSHIP; PROVIDING FOR THE INTENT AND PURPOSE
OF THE LOCAL HOUSING ASSISTANCE PROGRAM;
PROVIDING FOR THE ESTABLISHMENT OF THE LOCAL
HOUSING ASSISTANCE PROGRAM; DESIGNATING THE
RESPONSIBILITY FOR THE IMPLEMENTATION AND
ADMINISTRATION OF THE LOCAL HOUSING ASSIS-
TANCE PROGRAM; PROVIDING FOR THE CREATION OF
AN AFFORDABLE HOUSING ADVISORY COMMITTEE;
PROVIDING FOR GUIDELINES TO BE UTILIZED BY
SAID COMMITTEE IN ADOPTION OF RECOMMENDATIONS
FOR THE AFFORDABLE HOUSING INCENTIVE PLAN;
PROVIDING FOR ADOPTION OF THE AFFORDABLE
HOUSING INCENTIVE PLAN; PROVIDING FOR SEVER-
ABILITY; AND PROVIDING AN EFFECTIVE DATE.
The City Attorney read the caption of the ordinance.
Dr. Alperin moved for the adoption of Ordinance No.
2-93 on First Reading, seconded by Mr. Randolph. Upon roll call
the Commission voted as follows: Mr. Mouw - Yes; Dr. Alperin -
Yes; Mr. Randolph - Yes; Mayor Lynch - Yes. Said motion passed
with a 4 to 0 vote.
Mr. Ellingsworth returned to the Commission Chambers at
this time.
12.F. Ordinance No. ~7-93. Ordinance No. 17-93, amending
Chapter 33 of the Code of Ordinances relative to Police and Fire
pension issues to provide for certain grammatical and verbiage
changes, is before the Commission for consideration on First
Reading. If passed, Public Hearing will be held February 23rd.
The City Manager presented Ordinance No. 17-93:
AN ORDINANCE OF THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH, FLORIDA, AMENDING TITLE
III, "ADMINISTRATION", CHAPTER 33, "POLICE
AND FIRE DEPARTMENTS", SUBHEADING "PENSIONS",
-25- 2/9/93
Upon roll call the Commission voted as follows: Mr. Ellingsworth
- Yes; Mr. Randolph - Yes; Mayor Lynch - Yes; Mr. Mouw - Yes;
Dr. Alperin - Yes. Said motion passed with a 5 to 0 vote.
10.C. Ordinance No. 2-93. Ordinance No. 2-93, creating a
Housing Trust Fund and an Affordable Housing Advisory Committee
in conjunction with the State Housing Initiatives Partnership
(SHIP) Program, is before the Commission for consideration on
Second and FINAL Reading. Prior to consideration of passage of
this ordinance on Second and FINAL Reading, a public hearing has
been scheduled to be held at this time. Approval is recommended.
The City Manager presented Ordinance No. 2-91:
AN ORDINANCE OF THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH, FLORIDA, PURSUANT TO
THE STATE HOUSING INITIATIVES PARTNERSHIP
(SHIP) PROGRAM, PROVIDING FOR DEFINITIONS;
PROVIDING FOR THE CREATION OF THE LOCAL
HOUSING ASSISTANCE TRUST FUND; PROVIDING FOR
THE ESTABLISHMENT OF THE LOCAL HOUSING
PARTNERSHIP; PROVIDING FOR THE INTENT AND
PURPOSE OF THE LOCAL HOUSING ASSISTANCE
PROGRAM; PROVIDING FOR THE ESTABLISHMENT OF
THE LOCAL HOUSING ASSISTANCE PROGRAM;
DESIGNATING THE RESPONSIBILITY FOR THE
IMPLEMENTATION AND ADMINISTRATION OF THE
LOCAL HOUSING ASSISTANCE PROGRAM; PROVIDING
FOR THE CREATION OF AN AFFORDABLE HOUSING
ADVISORY COMMITTEE; PROVIDING FOR GUIDELINES
TO BE UTILIZED BY SAID COMMITTEE IN ADOPTION
OF RECOMMENDATIONS FOR THE AFFORDABLE HOUSING
INCENTIVE PLAN; PROVIDING FOR ADOPTION OF THE
AFFORDABLE HOUSING INCENTIVE PLAN; PROVIDING
FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE
DATE.
(Copy of Ordinance No. 2-93 is on file in the official
Ordinance Book)
Assistant City Attorney Ruby read the caption of the
ordinance. A public hearing was held having been legally adver-
tised in compliance with the laws of the State of Florida and the
Charter of the City of Delray Beach, Florida. The public hearing
was closed.
Dr. Alperin moved for the adoption of Ordinance No.
2-93 on Second and FINAL Reading, seconded by Mr. Randolph. Upon
roll call the Commission voted as follows: Mr. Randolph - Yes;
Mayor Lynch - Yes; Mr. Mouw - Yes; Dr. Alperin - Yes; Mr.
Ellingsworth - Yes. Said motion passed with a 5 to 0 vote.
Before roll call, Mayor Lynch commented that he feels
both the CRA and the Delray Beach Housing Authority should be
-14- 2/23/93
represented. The City Manager stated that membership is set
forth in State Law. If the Commission chooses to appoint repre-
sentatives from those agencies, they can be accommodated under
the provision for three members at-large.
10.D. Ordinance No. 17-93. Ordinance No. 17-93, amending
Chapter 33 of the Code of Ordinances relative to Police and Fire
pension issues to provide for certain grammatical and verbiage
changes, is before the Commission for consideration on Second and
FINAL Reading. Prior to consideration of passage of this ordi-
nance on Second and FINAL Reading, a public hearing has been
scheduled to be held at this time. Approval is recommended.
The City Manager presented Ordinance No. 17-93:
AN ORDINANCE OF THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH, FLORIDA, AMENDING TITLE
III, "ADMINISTRATION", CHAPTER 33, "POLICE
AND FIRE DEPARTMENTS", SUBHEADING "PENSIONS",
OF THE CODE OF ORDINANCES OF THE CITY OF
DELRAY BEACH, FLORIDA, BY AMENDING SECTION
33.62, "BENEFIT AMOUNTS AND.ELIGIBILITY", TO
PROVIDE FOR CERTAIN GRAMMATICAL AND VERBIAGE
CHANGES; PROVIDING A SAVING CLAUSE, A GENERAL
REPEALER CLAUSE, AND AN EFFECTIVE DATE.
Mr. Mouw left the Commission chambers at this time.
Assistant City Attorney Ruby recommended that this
ordinance be postponed to the date certain of March 10, 1993.
Mayor Lynch stated that at the last Police and Fire
Pension Board meeting, it was brought up that there is to be a
minimum disability of 25% per Florida Statute, and our system is
set up to get 2.25% per year which at the end of ten years is a
minimum of 22.5% and does not meet the statutory requirement. It
was reported at that meeting that this issue had been presented
to the Commission and was turned down. He asked for a status
report on this item and what, if any, action had previously been
taken by the Commission.
Dr. Alperin moved for postponement of Ordinance No.
17-93 until March 10, 1993, seconded by Mr. Randolph. Upon roll
call the Commission voted as follows: Mayor Lynch - Yes; Dr.
Alperin - Yes; Mr. Ellingsworth - Yes; Mr. Randolph - Yes. Said
motion passed with a 4 to 0 vote.
10.E. Waiver of City Ordinances. The Commission is to con-
sider waiving certain City Ordinances in conjunction with the
Virginia Slims Tournament. City Attorney recommends approval.
Prior to consideration of passage of this waiver, a public hear-
ing has been scheduled to be held at this time.
-15- 2/23/93
- /~ on ~'TO ~--~ O~o~n~'7'9~ ~
TO: DAVID HARDEN - CITY MANAGER
FROM: LULA C. BUTLER - DIRECTOR, COMMUNITY IMPROVEMENT U~
RE: CONSIDERATION OF THE STATE HOUSING INITIATIVES PARTNERSHIP
PROGRAM REQUIREMENT TO APPOINT AN AFFORDABLE HOUSING
ADVISORY COMMITTEE
DATE: DECEMBER 28, 1992
ITEM BEFORE THE BOARD:
Presentation from staff regarding the State of Florida's
requirement under the Housing Initiatives Partnership Program
(SHIP) Rule %91-37 requiring that the City Commission appoint by
resolution, a nine-member Affordable Housing Advisory Committee.
Staff is requesting direction regarding advertisement for
members, selection process and other information that may be
applicable under State Law.
BACKGROUND:
The State Housing Initiatives Partnership (SHIP) program is the
enactment of the William E. Sadowski Affordable Housing Act,
signed into law on July 7, 1992. The Act creates a comprehensive
funding package for state and local affordable housing programs.
The program channels a portion of the new and existing
documentary stamp taxes on deeds directly to local governments
for the development and maintenance of affordable housing.
Section 91-37.009 of the Florida State Statutes requires each
Municipality that is eligible for funding under the new
Affordable Housing Program to create a local Affordable Housing
Advisory Committee by Ordinance, with the option to appoint the
members by Resolution after the adoption of the required
Ordinance. The Committee's major responsibility will be the
development of the required Affordable Housing Incentive Plan.
This plan will set forth the policies, procedures and activities
that will be carried out with SHIP funds. The committee will
serve as an advisory board to the Commission, overseeing program
activities. The committee members may be appointed by
Resolution, (after the adoption of the required Ordinance), and
must provide for nine members and terms. The committee must have
the following make-up:
SHIP Program
Commission Agenda - 1/5/93
Page 2
One citizen who is:
1. actively engaged in the residential home building
industry;
2. actively engaged in the banking or mortgage banking
industry;
3. a representative of those areas of labor (e.g.,
carpenter, plumber or electrician) engaged in home
building;
4. designated as an advocate for low-income persons
(representative of a community-based organization or
legal services or legal aid attorney);
5. a provider of affordable housing;
6. a real estate professional, and
- Three citizens at large as appointed by the Commission.
In addition to the creation of the Affordable Housing Advisory
Committee, the Commission will be considering an Ordinance under
Section 91-37.004 that will create an affordable housing
assistance trust fund, establish the Local Housing Assistance
Program, and designate the responsibility for the implementation
and administration of the LHAP. This proposed Ordinance will be
before the Commission for first reading on January 12, 1993.
RECOMMENDATION:
Staff is recommending that the City Commission direct staff to
advertise for members through the City Clerk's normal procedures
for citizens who may wish to be appointed to the new board, and
direct staff to develop the appropriate Resolution to appoint the
members, establishing terms and responsibility. Such Resolution
should be before the Commission after the required public hearing
and adoption of the Ordinance pursuant to Section 91-37.003 of
the rule.
D14
SHIP .DH
A PUBLIC HEARING will be beld on
RATON~DELRAY BOYNTON BEACIt'~ DEERFIELD BEACti ~e following ~opo~ ~ ~
BOCA 7:~ P.~., (~ at ~ e~uat~ ~ , :~
~, 1~ N.W. 1M A~, ~lray A ~1C ~AR~ ~fl
Published Daily ~,, ,, ~ ,i~ ~ c~ c~i~ 7:i~ ~p~, (.~ ,~ c~n~
s~ will c~i~ ~ ~. T~ ~ ~ ~ b ~
Mo day
S v
~ ~di~ ~ i~ m~), ~ T~y,
____n__~ through .~unda~ a, h ~, ~ ,~ c~ c~ ,, ~
Boca Raton, Palm Beach County, Florida c,~ ~,,. ~ ,.w. ,,, ,~, ~,~,, ~ · ~ c~ ~..~
Beth, F1~1~, F0m 8:~ A.M. ~ S:~ ~ ~ N.W. lg A~, ~y
Delray Beach, Palm Beach County, Florida ~.~., ~, ~ ~,d,,, ,~,, ~b, ~ ~ ~ ~
~i~ys. All in~ ~ ore t~ ~ wlfl ~ ~ ~. T~
v~ ~ ~d ~nd ~ ~rd w~ re- ~ ~ ~
P~, ~y ~ Fray, exc~
STATE OF FLORIDA ~N 0RD,H~HCE 0F ,HE ~,~ ~ ~. ~t ~ ~d~
BEACH, FLORIDA, PURSUANT TO
THE STATE HOUSinG FNITIATIVES
PARTN~RSHiP (SHIP) PR~R~,
Before the undersigned authority personally PROVIDING FOR
PROVIDING FOR THE CREAT,~ AN ORDIN~KE OF THE
appeared Nancy Smith, Inside Sales Man- oF THE L~AL HOUSIHG ASSI~ M~J0N ~ THE CITY 0F DELRAY
TANC~ TRUST FOND; P~OVIDING BEACN, FLORIDA, PURSUANT T0
ager of The News, daily newspapers pub- ~0~ ,,~ ~s,A,[,s,~, o~ ,,E s,~TE ~us,N0
. THE L~AL 'HOUS,NG PARTNER. PARTNER~iP (SHIP) PR~R~,
~i~hed i~ Bo~ R~o~ ~ P~m Be~oh~ u~~f~, ~fP; PnOVfO~G ~oR me f~ PR~ID~ FOR DEFINITIONS;
TENT AND PUR~SE OF THE L~ ' PR~IDING FOR THE CREATION
CAL HOUSING A~STANCE ~ ~ THE L~AL HOUSI~
Florida; that the attached copy of advertise- ~,~, P,0V.DING FOR T.~ ~ T~,C, TR0S, ~OND, PROVI01NG
me~ w~ p~b~i~hed i~ ~id ~ew~p~p~ i~ HOUSING ASSISTANCE PR~R~; THE L~L ~USING PARTNER-
DESiGNATinG THE RES~StB~LP ~IP; PROVIDING FOR THE ~N-
the issues of: TY FOR THE IMPLEMENTATION TENT ~D PhRaSE OF THE
CAL HOUSING ASSISTANCE PR~ G~ ~OVID)NG FOR THE
GR~; PROVIDinG FOR THE CRE- T~LI~NT OF THE L~L
{NG ADW~RY C~iTTEE; PR~ ~SI~TI~ THE
t VIDING FOR GUIDELINES TO GE ~ ~ THE IMPLEMENTATi~
- - UTiLiZED BY SAiD C~ITTEE tN A~ ~INISTRATION OF THE k~
A~PT~ON OF RECO~EN~* ~L H~SING ~I~TANCE
T(ONS FOR THE AFFORDABLE ~; P~OV)D)~ FOR THE CRE-
HOUSING INCENTIVE P~g; PR~ ATI~ ~ AN AFFORDABLE HOU~
VIDtNG FOR THE A~PTI~ OF J~ ~VJ~RY C~JTTEE;
THE AFFOROABLE HOUSING IN. V~ FOR GUIDELINE~ TO
CENTWE ~N; PROViDiNG FOR UTiLiZED BY ~ID C~I~EE
SEVERABILtTY; AND PROVIDING A~I~ OF
A~ EFFECTWE DATE, TJ~S FOR THE AFFOR~B~
~SI~ IN~NTIVE
A~[i~ ~ghe~ ~y~ that The New~ i~ ~ ~tm VJD~NG FOrt THE ~ION
AN ORDINANCE OF THE C~TY C~ ~T~E ~; ~IDI~
Palm Beach County, Florida, Monday *LE IlL, 'ADMINISTRATION", CHAP-
TER ~, '~L~CE AND FiRE ~-
through Sunday, and has been entered as ~RTMENTS',. SUBH~DING
'PENSIONS', ~ THE CODE OF 0R-
second class matter at the post office in RAYDINANCES OF THE CITY OF$~AC", FLOR,DA, DEL-By
Boca Raton, Palm Beach County, Florida, "BENEFIT~ENOING ~UNTsTHE SECTIONAND ELIGI-
for a period of one year next preceding the TAIN GR~TfCAL A"D VER-
BIAGECHANGES; PROVIDING A
first publication of tho attached copy of
PEALER C~USE, AND AN EFFEC-
advertisement; and affiant further says that
he has neither paid nor promised any
person, firm or corporation any discount, A,,,SS,oNO,O,,AK~OF '.~OFc,,,*"~o~OT~L~A,
rebate, commission or refund for the pur- ,~Ac., F~O,,OA
CHAPTER 4, ~ONtNG REGU~-
T~S', ~ THE ~N~ DEVELOP-
pose of securing this advertisement for pub- ~ENT REGU~T~NS 0~ THE
lication in said newspapers, c,,, o~ ~.~...~c., ~o.,.
4.~, SIGHT IN~STRIAL <LI) DI~
TRfC~; ~END/~ SECT~N
4~.4(K), ~ELOPMENT STAN-
DARDS ~TR~X~, TO PROVIDE FOR
THE ~CLUSION WITHIN THE
TRfXOF MINIMUM DEVELOP-
MENT STAN~RDS FOR THE
LIGHTINDUSTRfAL ~E
TRJCT; PROVIDINGA ~VING
C~USE, A GENERALRE~ALER
C~USE, AND Ag EFFECTIVE
DATE. ,
Sworn to and subsoribed before me this .~. ~ ~ ,,. ~ ~
day of , A.D., 19 ' ~ ' ~" ~
will ~ ~ ~ ~ t~ ~
~ ~ ~ this ~ ~h ~
~ ~ ~ ~l~h ~ ~1 is
F.S. ~.N~.
Cl~ OF DELRAY B~CH ~
(Seal, Notary Public, State of Florida at large)
PUBLJS,: ~ ?2,1~
THE NE~
My Commission expires A~