Res 38-95 RESOLUTION NO. 38-95
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, APPROVING THE LOCAL HOUSING
ASSISTANCE PLAN PURSUANT TO THE STATE HOUSING INITIATIVES
PARTNERSHIP (SHIP] PROGRAM, ESTABLISHING AN AVERAGE COST PER
UNIT, THE MAXIMUM COST PER UNIT, THE AVERAGE SHIP FUNDS AND
THE MAXIMUM SHIP FUNDS ALLOWABLE, AND A MAXIMUM FOR
ADMINISTRATIVE EXPENSES. AUTHORIZING THE NECESSARY
CERTIFICATIONS BY THE MAYOR AND AUTHORIZING SUBMISSION OF
THE PLAN TO THE STATE HOUSING FINANCE AGENCY, PROVIDING FOR
AN EFFECTIVE DATE.
WHEREAS, the State of Florida under specific authority
established by State Statute, has 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 average cost per unit and a maximum cost per
unit for eligible housing benefitting from awards made pursuant to the
SHIP Program; 2) an average and maximum award schedule of amounts per
strategy; and 3) a finding that five percent (5%) of the Local Housing
distribution is insufficient to adequately pay the administrative
costs of the SHIP Program, and a provision increasing administrative
expense to not more than ten percent (10%).
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF
THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS:
Section 1. That a maximum cost per unit for eligible
housing benefitting from awards made pursuant to the SHIP Program may
not exceed $90,000 for newly constructed units or $75,000 for existing
structures which will be rehabilitated. Under no circumstances shall
the sales price exceed 90% of the median area purchase price in the
area as established by Revenue Proclamation 94-55, United States
Department of Treasury.
Section 2. That during the three fiscal years the average
award schedule per unit will be for New Construction $9,000,
Homeownership/Rehab, $8,000; Housing Rehab, $15,000. The maximum
award schedule for SHIP funds under the City of Delray Beach program
shall be $15,000 per unit.
Section 3. The City hereby specifically finds that five
percent (5%) of the Local Housing distribution is insufficient to
adequately administer the SHIP Program; therefore, the administrative
expenses shall increase, but shall not exceed ten percent (10%) of the
Local Housing distribution.
Section 4. The City of Delray Beach is authorized to submit
the Local Housing Assistance Plan to the State of Florida Housing
Finance Agency for its review and approval.
Section ,5. That the Mayor is authorized to execute the
certifications required as a part of the Local Housing Assistance Plan
on behalf of the City.
Section 6. That this resolution shall become effective
immediately upon its passage.
PASSED AND ADOPTED in regular session on this 2 nd
May 1995 ~
City Clerk
Res. No. 38-95
MEMORANDUM
TO: MAYOR AND CITY COMMISSIONERS
FROM: CITY bI~NAGER~
SUBJECT: AGENDA ITEM #'" '/~°~' - MEETING OF MAY 2, 1995
RESOLUTION NO. 38-95
DATE: April 28, 1995
This is before the Commission to adopt a resolution approving the
Local Housing Assistance Plan pursuant to the State Housing
Initiative Partnership (SHIP) Program, Chapter 91-37.005(6) (f) (g)
of the Florida Administrative Code.
The State requires a Local Housing Assistance Plan be established
outlining how the City plans to administer the program once SHIP
funds are received. On February 23, 1993, the Commission
established a Local Housing Assistance Program, an Affordable
Housing Assistance Trust Fund, and the Affordable Housing
Advisory Committee.
Community Improvement is submitting a request for continued
funding under a new three year plan. The funds will be used for
new construction, rehabilitation of existing housing for home
ownership, and rehabilitation of existing owner-occupied units.
The anticipated amount expected to be awarded each fiscal year of
the plan is $286,454, providing approximately 76 homeownership
opportunities.
Recommend approval of Resolution No. 38-95 for continued
participation in the SHIP program by approving the Local Housing
Assistance Plan.
TO: DAVID HARDEN, CITY MANAGER
THRU: LULA BUTLER, DIRECTOR OF COMMUNITY IMPROVEMENT L~
FROM: DOROTHY ELLINGTON, COMMUNITY DEVELOPMENT COORDINATOR
RE: RESOLUTION APPROVING THE LOCAL HOUSING ASSISTANCE PLAN
PURSUANT TO THE STATE HOUSING INITIATIVE PARTNERSHIP
( SHIP ) PROGRAM
DATE: APRIL 19, 1995
ITEM BEFORE THE COMMISSION:
The adoption of a resolution approving the Local Housing
Assistance Plan and the continued participation in the SHIP
Program, pursuant to Chapter 91-37.005(6)(f)(g) of the Florida
Administrative Code.
BACKGROUND:
For the past three (3) years the Department of Community
Improvement has received housing assistance funds from the State
Housing Initiatives Partnership (SHIP) Program. 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. On February 23, 1993, under
Ordinance #2-93, the City Commission established a Local Housing
Assistance Program, created an Affordable Housing Assistance
Trust Fund and created the Affordable Housing Advisory Committee
to comply with various sections of Chapter 91-37, Administrative
Code-SHIP Program of the Florida Housing Finance Agency. Staff
of the Community Improvement Department has administered the
program and under this plan has assisted Delray Beach residents
with homeownership opportunities.
Staff is submitting a request for continued funding under a new
three (3) year plan. The funds will be used for the following
activities: 1) New construction; 2) Rehabilitation of existing
housing for homeownership; and 3) Rehabilitation of existing
owner-occupied units. The anticipated amount expected to be
awarded each fiscal year of the plan is $286,454. Over this three
year period, approximately seventy-six (76) homeownership
opportunities will be afforded to Delray Beach residents.
RESOLUTION NO. 38-95
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, APPROVING THE LOCAL HOUSING
ASSISTANCE PLAN PURSUANT TO THE STATE HOUSING INITIATIVES
PARTNERSHIP (SHIP) PROGRAM, ESTABLISHING AN AVERAGE COST PER
UNIT, THE MAXIMUM COST PER UNIT, THE AVERAGE SHIP FUNDS AND
THE MAXIMUM SHIP FUNDS ALLOWABLE, AND A MAXIMUM FOR
ADMINISTRATIVE EXPENSES. AUTHORIZING TItE NECESSARY
CERTIFICATIONS BY THE MAYOR AND AUTHORIZING SUBMISSION OF
THE PLAN TO THE STATE HOUSING FINANCE AGENCY, PROVIDING FOR
AN EFFECTIVE DATE.
WHEREAS, the State of Florida under specific authority
established by State Statute, has 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 average cost per unit and a maximum cost per
unit for eligible housing benefitting from awards made pursuant to the
SHIP Program; 2) an average and maximum award schedule of amounts per
strategy; and 3) a finding that five percent (5%) of the Local Housing
distribution is insufficient to adequately pay the administrative
costs of the SHIP Program, and a provision increasing administrative
expense to not more than ten percent (10%).
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF
THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS:
SectiQ~ 1. That a maximum cost per unit for ellgible
housing benefitting from awards made pursuant to the SHIP Program may
not exceed $90,000 for newly constructed units or $75,000 for existing
structures which will be rehabilitated. Under no circumstances shall
the sales price exceed 90% of the median area purchase price in the
area as established by Revenue Proclamation 94-55, United States
Department of Treasury.
Section 2. That during the three fiscal years the average
award schedule per unit will be for New Construction $9,000,
Homeownership/Rehab, $8,000; Housing Rehab, $15,000. The maximum
award schedule for SHIP funds under the City of Delray Beach program
shall be $15,000 per unit.
~_9S_$~9/~. The City hereby specifically finds that five
percent (5%) of the Local Housing distribution is insufficient to
adequately administer the SHIP Program; therefore, the administrative
expenses shall increase, but shall not exceed ten percent (10%) of the
Local Housing distribution.
~ction 4. The City of Delray Beach is authorized to submit
the Local Housing Assistance Plan to the State of Florida Housing
Finance Agency for its review and approval.
$~tion 5. That the Mayor is authorized to execute the
certifications required as a part of the Local Housing Assistance Plan
on behalf of the City.
Secti0~ 6. That this resolution shall become effective
immediately upon its passage.
PASSED AND ADOPTED in regular session on this 2 nd
,
M A ~O R
City Clerk
Res. No. 38-95
State Housing Initiatives Partnership (SHIP) Program
Local Housing Assistance Plan
Program Information Sheet
Please complete the following information:
LOCAL GOVERNMENT: C±ty of Delray Beach
CIIIEF ELECTED OFFICIAL: Thomas E. Lynch, Mayor
ADDRESS: 100 N.W. 1st Avenue
Delray Beach, FL 33444
TELEPHONE:(407). 243-7010 F~:(407)~ 243-3774
CONTACT PERSON: Dorothy Ellington~ Community Development Coordinator
ADDRESS: 100 N.W. 1st Avenue
Delray Beach, FL 33444
TELEPHONE:(407). 243-7280 FAX:(407). 243-7221
INTERLOCAL AGREEMENT: YES/NO (If yes, list other participants in the interlocal agreement)
(The following information must be furnished to the Agency before any funds can be disbursed)
LOCAL GOVERNMENT EMPLOYER FEDERAL ID NUMBER: 59-6000308
MAIL DISBURSEMENT TO: Ms. Lula Butler. Director of Community Improvement
ADDRESS: 100 N.W. 1st Avenue
Delray Beach, FL 33444
(3/95)
CITY OF DELRA¥ BEACH
STATE HOUSING INITIATIVES PARTNERSHIP (SHIP)
LOCAL HOUSING ASSISTANCE PLAN
FY 95-96, FY 96-97 AND FY 97-98
TABLE OF CONTENTS
Page
I. Program Description 1
II. Local Housing Assistance Partnership 3
III. Program Strategies 3
A. New Construction-Homeownership 3
B. Homeownership-Rehabilitation 4
C. Housing Rehabilitation 5
D. Participant Selection 5
E. Recapture Provisions 6
F. Leveraging 7
IV. Affordability 7
A. Assistance Requirements 8
V. Advertisement and Outreach 9
VI. Administrative Expenses 9
VII. Plan A~end~ent 10
VIII. Timeline Tables 11
IX. Allocation of SHIP Funds by Program Year 14
X. Housing Delivery Goals Charts 16
APPENDIX
A. Certification to Florida Housing Finance Agency 19
B. Resolution 21
STATE HOUSING INITIATIVE PARTNERSHIP {SHIP)
LOCAL HOUSING ASSISTANCE PLAN
CITY OF DELRA¥ BEACH, FLORIDA
F~ 9§-96, F~ 96-97 AND F~ 97-98
I. PROGRAM DESCRIPTION
The City of Delray Beach established a Local Housing Assistance Program
with the adoption of Ordinance No. 2-93 on February 23, 1993. This
program description has been created to promote and implement the
goals of the City's SHIP program which are consistent with goals and
objectives adopted within the Housing Element of the City's
Comprehensive Plan.
The City intends to undertake the activities outlined in this plan for
three (3) fiscal years, FY 95-96, FY 96-97 and FY 97-98. All proposed
program activities are identified in the plan and are on an annual
basis.
The City shall use the funds received from the State pursuant to the
State Housing Initiative Partnership (SHIP) Program in the following
manner:
A. 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,
including assistance with lot acquisitions.
(b) Rehabilitation - Very low-income 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
reduction, and /or low interest loans for down payments and
closing costs.
{d) Acquisition/Rehabilitation - Eligible sponsors may be
awarded funds to acquire existing housing units for
renovation to provide housing for eligible persons.
{e) Impact Fee Assistance - Eligible sponsors may be
awarded funds for the payment of impact fees for eligible
housing for eligible persons.
(f) Match Requirements - In order to obtain and use Federal
housing grants with mandatory match requirements.
Page 2
Local Housing Assistance Plan
City of Delray Beach, FL
Ail units constructed, rehabilitated or otherwise assisted with SHIP
funds will be occupied by very-low (50% of median), low-income (80% of
median), and moderate income (120% of median) persons and those who
have special housing needs. A minimum of 30% of the units will be
occupied by very low-income persons and an additional 30% will be
occupied by low-income persons. The remaining 40% will be occupied by
moderate income, low income or very low income persons. Special needs
category is included within these percentages.
Not less than 65% of the funds will be used for homeownership and not
less than 75% of the funds will be reserved for construction,
rehabilitation, or emergency repair of eligible housing.
The sales prices for newly constructed or existing structures which
will be rehabilitated may not exceed $90,000 or $75,000 respectively.
However, the sales price shall not exceed 90% of median area purchase
price as established under Revenue Proclamation 94-55, United States
Department of Treasury.
The Local Housing Assistance Plan does not involve an inter-local
agreement. All activities are carried out within the geographic
boundaries of the city limits of the City of Delray Beach.
Annually the City conducts a Needs Assessment Community Meeting
whereby the public is invited to attend and provide input on how
program funds should be allocated. On April 5, 1995, the Needs
Assessment Meeting was held and from the participants involved, it was
the general consensus that Housing Rehabilitation for Owner-Occupied
units and Homeownership opportunities for the very low and low income
persons should continue.
Based on the dollars anticipated being awarded to the City of Delray
Beach and given the planning and work with local non-profit
organizations that have already taken place, this plan does not
propose to use funds for other eligible activities during the three
(3) year period. Supportive housing activities such as housing and
credit counseling, tenant counseling and other supportive services
needed to facilitate affordable programs will be funded by other
sources currently available to the City.
Several local banks and one bank consortium have agreed to provide
homebuyer training and credit counseling. Habitat for Humanity has
agreed to provide a training program for the new homeowner to assist
in making the transition from renter to homeowner.
Page 3
Local Housing Assistance Plan
City of Delray Beach, FL
II. LOCAL HOUSING ASSISTANCE PARTNERSHIP
The City of Delray Beach Community Improvement Department has been
relentless in it's efforts to facilitate the development of a Local
Housing Partnership. As a result of these efforts, the City of Delray
Beach has formed a partnership that involves local government, lending
institutions, housing developers, community based housing and service
organizations and providers of professional servers relating to
affordable housing.
The partnership includes the City of Delray Beach Community
Improvement Department, the Delray Beach Community Redevelopment
Agency, the Consortium for Affordable Home Financing, Inc., the Delray
Beach Housing Authority, the Delray Beach TED Center, the Delray Beach
CDC and several local contractors. This partnership was develop to
implement a comprehensive homebuilding and community revitalization
project. Resources from each participant in the Local Housing
Partnership will be leveraged to reduce the cost of housing to the low
income homebuyers. The City al~o has other Federal program funds that
will be used to compliment the SHIP program and needs identified to
assist eligible persons with homeownership opportunities.
The City's emphasis on "Neighborhood Stabilization" and support of the
same from the City Commission level provides a unique opportunity to
increase the number of affordable units made available to our very
low, low and moderate income households. Developers and community
based non-profit groups will be encouraged to develop vacant lots
located in the established CDBG target area.
The City will continue its current efforts directed at eliminating
slum and blighted conditions in the target area through the
preservation of existing single family owner-occupied units,
investor-owned properties with very low-income tenants and other
conditions contributing to the decline of such neighborhoods. The
City believes such efforts will assist in making these areas more
attractive for infill housing development.
PROGRAM STRATEGIES
This Plan provides for increasing the availability of affordable
housing under the following strategies:
A. STRATE~..~ NO. ;: NEW CONSTRUCTION - HOMEOWNERSHIP
SHIP funds will be used in FY 95-96, FY 96-97 and FY 97-98
to provide incentives for the construction of affordable
housing for occupancy by very low, low and moderate income
households through the followinq provisions:
Page 4
Local Housing Assistance Plan
City of Delray Beach, FL
1. Assistance with Construction Financing - Low or
no-interest loans up to $15,000, with the average being
in the area of $9,000, may be made for down payment to
reduce the purchase price of units; the payment of closing
costs and the payment of impact fees (ordinances adopted by
Palm Beach County and the City of Delray Beach do not allow
impact fees to be waived). Down payment assistance will be
secured as a second mortgage on property and may run for a
period of up to 30 years with deferred loan payments.
Assistance provided will serve as a principal reduction of
the amount borrowed from the private lender, the City
assures that all eligible households assisted will pay no
more than 30% of the area median income limits adjusted for
family size for the category as defined in Florida
Administrative Code, Chapter 91-37.002(26)(27)(36).
2. Lot Acquisition for New Construction - Assistance with
the purchase of vacant, single family lots within the
boundaries of the City's Community Development Block Grant
(CDBG) target area may be given to eligible sponsors or the
very low and low income households needing to subsidize a
portion of the cost of the home or mortgage to lower the end
price.
B. STRATEGY NO. 2 - HOMEOWNERSHIP/REHABILITATION
SHIP funds will be used in FY 95-96, FY 96-97 and FY 97-98
to provide incentives in the form of purchase assistance
and/or rehabilitation assistance to very iow, iow and
moderate income households to acquire existing units which
may be in need of some rehabilitation.
1. Home Purchase Assistance/Rehabilitation - The
assistance to very Iow, iow income households to purchase
existing homes which may need repair and will be used as
their principal home. Assistance provided will be in the
form of a deferred loan up to $15,000, with the average
assistance per unit being approximately $8,000. This
assistance will be secured as a second mortgage on the
property and will run for 15 years and carry a 0% interest
rate. For each year the household lives in the property as
their principal residence 1/15 of the SHIP assistance amount
Page 5
Local Housing Assistance Plan
City of Delray Beach, FL
will be forgiven. Should the property be sold or the
household fails to maintain the unit as their principal
residence during the 15 year period, the amount remaining
becomes due and payable to the SHIP Housing Trust Fund. The
deferred payment loan will serve to reduce the principal
amount to be borrowed from the private lending institution.
The City will ensure that eligible households will not
devote more than 30% of the area median income limits for
adjusted family size for the category for PITI.
C. STRATEGY NO. 3 - HOUSING REHABILITATION/EXISTING
OWNER-OCCUPIEDUNITS
SHIP funds in all three (3) fiscal years will be used to
provide grant assistance up to $15,000 to very low income
households to rehabilitate existing owner-occupied single
family units. The average assistance per unit will be
approximately $15,000. It is assumed that no private lender
monies will be involved in these rehabilitation activities.
However, monies from the City's general revenue funded
"Bootstrap Program" may be combined with SHIP funds to fund
total cost of rehabilitative project.
D. PARTICIPANT SELECTION
1. Applications for participation may be taken on
specified dates if demand warrants. The initial advertised
application period does not restrict individuals from making
application at any time. All applications will be on a
first come, first served basis within the income groups to
be served.
2. Eligibility of households will be determined in the
same manner as eligibility for the City's Housing
Rehabilitation Grant award program, which is modeled after
the Section 8 Rental Assistance Program. The guidelines
will be used to verify income, assets and other information
required.
3. The City staff will select applicants based on the
following:
(a) Income - Household income will be verified to determine
if the household meets SHIP income guidelines. Households
not meeting these guidelines will not be processed further
and will be notified of their ineligibility.
Page 6
Local Housing Assistance Plan
City of Delray Beach, FL
(b) Credit Worthiness - A credit report will be requested
and reviewed with the participating lender. Only those
households meeting the lenders credit standards will be
processed further. Mouseholds with credit problems will be
informed and referred for counseling assistance with the
opportunity to be reconsidered at a later date.
(c) Debt Ratio (Affordabilit¥) - Applicants will be
screened on the lenders income to housing debt ratios.
Housing expenses (PITI) may exceed 30% of the households
income; however this amount shall not exceed 30% of the area
median income limits adjusted for family size for the income
category.
(d) Unit Sale Price/Purchase/Rehab Costs - The purchase
price of the unit will be compared against program
guidelines. Only units meeting these guidelines will be
eligible for assistance.
4. Eligible applicants selected to participate will be
awarded iow or no-interest loans for purchase assistance
and/or rehabilitation, to the extent necessary, within
program guidelines, to make the eligible unit affordable to
the eligible family.
5. In conjunction with the Local Housing Partnership, the
Department of Community Improvement staff will seek lending
institutions to provide favorable financing for the selected
applicants.
E. RECAPTURE PROVISIONS
1. Ail individuals assisted with SHIP funds will be
contractually subject to recapture as per the City's
recapture requirements. These recapture provisions will be
enforced by a note and mortgage on the property for those
purchasing homes and an executed agreement between the City
and property owner for those receiving rehabilitation
assistance for existing homeowners.
2. 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
applicable sections of the Florida State Statutes and this
plan. Ail 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
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Local Housing Assistance Plan
City of Delray Beach, FL
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 insuring to the
benefit of the City.
3. An award of $4,000 or more shall be secured as a second
mortgage on the property and may run up to 15 years and
shall carry a 0% interest rate.
F. LEVERAGING
The use of SHIP funds along with CDBG funds, General Revenue
contributions awarded by the City, participation in the Palm
Beach County HOME Consortium, leverages with private sector
financing and technical support will provide the basis for
increasing the supply of affordable housing for Delray Beach
residents. The experience of City staff provides the
opportunity to implement affordable housing programs on a
timely basis.
IV. AFFORDABILITY
For the purpose of determining eligibility and affordability under the
SHIP Program, the following Florida Housing Finance Agency 1995 area
income limits adjusted to family size for the City Delray will be
used:
Number of Persons in Household
Set
Aside 1 2 3 4 5 6 7 8
50% 15,600 17,800 20,000 22,250 24,050 25,800 27,600 29,350
80% 24,900 28,500 32,050.35,600 38,450 41,300 44,150 47,000
120% 37,440 42,720 48,000 53,400 57,720 61,920 66,240170,440
Page 8
Local Housing Assistance Plan
City of Delray Beach, FL
The affordability for the maximum amount per month for PITI for each
group and family size for the City of Delray shall not exceed 30% of
the income limits adjusted to family size and outlined as follows:
Number of Persons in Household
Set
Aside 1 2 3 4 5 6 7 8
50% 390 445 500 556 601 645 690 734
80% 623 713 801 890 961 1033 1104 1175
120% 936 1068 1200 1335 1443 1548 1656 1761
A. Assistance Requirements
1. Homes which are purchased under the SHIP Program may
not have a sales price that exceeds $90,000 for newly
constructed units or $75,000 for existing structures which
will be rehabilitated. Under no circumstances shall the
sales price exceed 90% of median area purchase price as
established under Revenue Proclamation 94-55, United States
Department of Treasury.
2. The maximum award of SHIP funds may not exceed $15,000
per unit. The maximum ceiling includes the aggregate of
SHIP awards for purchase assistance and/or rehabilitation
assistance which may be used in combination to provide
housing to an eligible household. All loans issued from
SHIP funds may not have terms exceeding 30 years, except for
deferred payment loans.
3. All units constructed, rehabilitated or otherwise
assisted with SHIP Program funds must be occupied by persons
who are very low, low and moderate income households or
persons with special housing needs.
4. Units constructed or rehabilitated with SHIP funds and
sold to homebuyers will be subject to the City's subsidy
recapture provisions.
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Local Housing Assistance Plan
City of Delray Beach, FL
5. The City ensures that the Local Housing Partnership,
eligible sponsors and the City 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, national origin, or handicap in the
loan application process for eligible housing.
6. SHIP funds may not be used as a pledge of the debt
services on bonds or as rent subsidies.
V. ADVERTISEMENT AND OUTREACH
The Community Improvement Department will advertise the availability
of the Local Housing Assistance Program at least thirty (30) days
prior to the beginning of the application period. The availability of
funds will be advertised in a local newspaper including the free
throw-a-ways available to most residents, established homeowner
associations newsletters, churches located in the CDBG target area,
and other organized methods that may be available. Additionally,
staff will be responsible for the development of flyers describing the
program to disseminate to various organizations and agencies including
the Delray Beach Housing Authority, Habitat for Humanities and the
non-profit local based Community Development Corporations.
VI. ADMINISTRATIVE EXPENSES
The Community Improvement Department's Community Development Division
will be responsible for the administration of the Local Housing
Assistance Plan. The City of Delray Beach has determined that it is
necessary to use 10% of the SHIP allocation during the three (3) year
period for administration. The funds will be used to fund a position
which will be directly responsible for the administration of the SHIP
Program. This position will function as a planner to develop and
coordinate the specific programs, and policies approved under the
Housing Element of the City's Comprehensive Plan.
Administrative Costs
FY 95-96 FY 96-97 FY 97-98
Salary $ 28,645 $ 28,645 $ 28,645
Page 10
Local Housing Assistance Plan
City of Delray Beach, FL
VII. PLAN~MElq?
SHIP funds will be encumbered during the fiscal year in which they are
received. An amended plan will be submitted if 50% or more of the
distribution funds have not been encumbered by the mid-point of each
fiscal year.
The plan may be amended by resolution at any time. Plan amendments
will be submitted to the State Review Committee within 21 days after
adoption. Amendments will not take effect until approved by the
State.
The City shall notify the Florida Housing Finance Agency promptly if
the City will be unable to comply with the provisions of the Plan.
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Page 14
Local Housing Assistance Plan
City of Delray Beach, FL
IX. ALLOCATION OF S.H.I.P FUNDS BY PROGRAM YEAR
FISCAL YEAR 1995/96
ANNUAL ALLOCATION $286.454
NEW CONSTRUCTION FINANCING ** $ 82,319
Avg. Amount of Assistance per Unit ($4,573)
Avg. Cost per Unit ($80,000)
Number of Units Assisted 18
Lot Acquisition Cost (appraisal, title $ 45,000
searches, closing fees)
Avg. Amount of Assistance per Unit ($9,000)
Avg. Cost per Lot ($9,000)
Number of Lots Acquiring 5
HOMEOWNERSHIP/REHABILITATION ** $ 40,490
Avg. Amount of Assistance per Unit ($8098)
Avg. Cost per Unit ($60,000)
Number of Units Assisted 5
HOUSING REHABILITATION $ 90,000
Avg. Amount of Assistance per Unit ($15,000)
Avg. Cost per Unit ($20,000)
Number of Units Assisted 6
ADMINISTRATION $ 28,645
NOTE: Averages projected reflect amount per year/per each individual
strategy. The averages projected in the narrative is a collective
average for the three fiscal years by strategy.
Page 15
Local Housing Assistance Plan
City of Delray Beach, FL
FISCAL YEAR 1996-97
ANNUAL ALLOCATION $286.454
NEW CONSTRUCTION FINANCING ** $142,319
Avg. Amount of Assistance per Unit ($12,000)
Avg. Cost per Unit ($80,000)
Number of Units Assisted 12
HOMEOWNERSHIP/REHABILITATION ** $ 40,490
Avg. Amount of Assistance per Unit ($8098)
Avg. Cost per Unit ($60,000)
Number of Units Assisted 5
HOUSING REHABILITATION $ 75,000
Avg. Amount of Assistance per Unit ($15,000)
Avg. Cost per Unit ($20,000)
Number of Units Assisted 5
Administration $ 28,645
FISCAL YEAR 1997/98
ANNUAL ALLOCATION $286,454
NEW CONSTRUCTION FINANCING $ 182,809
Avg. Amount of Assistance per Unit ($12,000)
Avg. Cost per Unit ($80,000)
Number of Units Assisted 15
HOUSING REHABILITATION $ 75,000
Avg. Amount of Assistance ($15,000)
Avg. Cost per Unit ($20,000)
Number of Units Assisted 5
ADMINISTRATION $ 28,645
shipplan.doc
3/1/95
Page 19
Local Housing Assistance Plan
City of Delray Beach, FL
;kPPENDIX
A
CERTIFICATION TO
FLORIDA HOUSING FINANCE AGENCY
Local Government: Delray Beach ~oon~City
(1) The local government will advertise the availability of SHIP funds pursuant to Florida Statutes.
(2) All SHIP funds will be expended in a manner which will insure that there will be no
discrimination on the basis of race, creed, color, age, sex, familial status, handicap, religion, or
national origin.
(3) A process for selection of recipients for funds has been developed.
(4) The eligible municipality or county has developed a qualification system for applications for
awards. '
(5) Recipients of funds will be required to contractually commit to program guidelines.
(6) The Florida Housing Finance Agency will be notified promptly if the local government (or
interlocal entity) will be unable to comply with the provisions the plan.
(7) The Local Housing Assistance Plan shall provide for the expenditure of SI-rfP funds within 24
months following the end of the State fiscal year in which they are received.
(8) The plan conforms to the Local Government Comprehensive Plan, or that an amendment to the
Local Government Comprehensive Plan will be initiated at the next available opportunity to
insure conformance with the Local Housing Assistance Plan.
(9) Amendments to the approved Local Housing Assistance Plan shall be provided to the Agency
with in 21 days at, er adoption.
(10) The trust fund shall be established with a qualified depository for all SHIP funds as well as
moneys generated from activities such as interest earned on loans.
(11) Amounts on deposit in the local housing assistance trust fund shall be invested as permitted by
law.
(12) The local housing assistance trust fund shall be separately stated as a special revenue fund in the
local governments audited financial statements, copies of the audits will be forwarded to the
Agency as soon as available.
(13) An interl0cal entity shall have its local housing assistance trust fund separately audited for each
state fiscal year, and the audit forwarded to the Agency as soon as possible.
Page 2
Certification
(14) SHIP funds will not be pledged for debt service on bonds or as rent subsidies.
(15) Developers receiving assistance from both SHIP and the Low Income Housing Tax Credit
(LIHTC) Program shall comply with the income, affordability and other LIHTC requirements,
Similarly, any units receiving assistance from other federal programs shall comply with all
Federal and SHIP program requirements.
(16) Loans shall be provided for periods not exceeding 30 years, except for deferred payment loans or
loans that emend beyond 30 years which continue to service eligible persons.
(17) Rental Units constructed or rehabilitated with SHIP funds shall be monitored at least annually for
1 $ years for compliance with tenant income requirements and affordability requirements.
Witness Chief Elected Official
Thomas E. Lyll¢h, Mayor
Witness Type Name and Title
Date
OR
Attest:
(Seal)
Page 21
Local Housing Assistance Plan
City of Delray Beach, FL
APPENDIX
B
RECOMMENDATION:
Staff recommends the city Commission approve the continued
participation in the SHIP Program by approving the Local Housing
Assistance Plan and adopting the proposed resolution.
DE/rhs
Attachments
shipplan.res