02-18
,
RESOLUTION NO. 02-18
A RESOLUTION OF THE CITY OF CLEARWATER,
FLORIDA, ACCEPTING THE RECOMMENDATIONS
OF THE CITY OF CLEARWATER NEIGHBORHOOD
AFFORDABLE HOUSING ADVISORY BOARD
MODIFYING THE CITY OF CLEARWATER STATE
HOUSING INITIATIVES PARTNERSHIP (SHIP)
LOCAL HOUSING ASSISTANCE PLANS
COVERING STATE FISCAL YEARS 1997-2000 AND
2000-2003; PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Neighborhood Affordable Housing Advisory Board has
met its statutory and organizational assignments by preparing a set of
recommendations to the City Commission addressing affordable housing
incentives and associated issues; and
WHEREAS, the Neighborhood Affordable Housing Advisory Board has
reviewed and approved the modifications to the State Housing Initiatives
Partnership Local Housing Assistance Plans covering State Fiscal Years
1997 -2000 and 2000-2003 at their September 11, 2001 meeting; and
WHEREAS, the modifications to the Local Housing Assistance Plans
for the fiscal years will assist in expending the funds in a more timely fashion;
and
WHEREAS, the modifications to the Local Housing Assistance Plans
are necessary to be more in keeping with changes in the market since the
original plans were written; and
WHEREAS, the Local Housing Assistance Plans provides that ten
percent (10%) of the total SHIP allocation will be used for administrative
expenses; and
WHEREAS, Section 420.9075(6), Florida Statutes, provides that the
City may use five percent (5%) of its annual SHIP allocations for
administrative expenses. Florida Statutes also provides that if the City
Commission makes a finding, by resolution, that five percent (5%) is not
sufficient to cover the administrative costs, the City may take up to ten
percent (10%) for administration; and
WHEREAS, the City of Clearwater finds that five percent (5%) of the
SHIP funds are insufficient to adequately pay the necessary costs of
administering the City's SHIP program. The City of Clearwater finds it
necessary to increase up to but not to exceed ten percent (10%) of local
Resolution No. 02-18
,
housing distributions deposited in the trust fund to cover administrative costs,
now, therefore,
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF
CLEARWATER, FLORIDA:
Section 1. The City of Clearwater hereby accepts the Neighborhood
Affordable Housing Advisory Board recommendations attached to this
resolution as the modifications to the Local Housing Assistance Plans
covering State Fiscal Years 1997-2000 and 2000-2003.
Section 2. This resolution shall take effect as of the date of the City
Commission Meeting Approval of the modifications on October 18, 2001.
PASSED AND ADOPTED this 7th
day of March
,2002.
Brian J. Aungs
Mayor-Commi
Approved as to form:
~
Pamela K. Akin
City Attorney
Attest:
).b~l.t'-'90d-~ CkL
Cynt a . Goudeau
~ City Cler
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Resolution No. 02-18
NEIGHBORHOOD AFFORDABLE HOUSING ADVISORY BOARD
Summary Of Recommendations To Modify The
State Housing Initiatives Partnerhship (Ship)
Local Housing Assistance Plans
For State Fiscal Years 1997-2000 and 2000-2003
(Approved by City Commission on October 18, 2001)
FY 1997.- 2000 Local Housing Assistance Plan
In the three year Local Housing Assistance Plan prepared 1997, the following
amendment is recommended: Modification of the rental initiatives to require that
rental projects undertaken under the SHIP program be 12 units or more on a
single site, and that the strategy include rehabilitation. Currently, the plan only
addresses new construction.
FY 2000 - 2003 Local Housing Assistance Plan
In the three-year Local Housing Assistance Plan prepared in 2000 governing the
next three successive years, the following changes are proposed:
1. That the projected budgets be amended as follows: The demolition
reconstruction strategy is limited to $80,000, or one unit per year. This
program assists very low -income borrowers who live in severely sub-
standard housing.
2. The down payment and closing cost assistance, acquisition rehabilitation
and the owner occupied rehabilitation strategies be increased for
participants with incomes between 80-120 percent of median income.
3. The maximum purchase price under the SHIP program requires that
participants in the program may not purchase either new or existing
housing using SHIP funds that exceed the maximum purchase price
guideline. The guideline was established since the inception of the
program in 1991 and has not been adjusted since. Staff proposes that the
maximum purchase price for a new home be increased from $88,679 to
$143,585 and the maximum purchase price for existing housing be
increased from $83,491to $108,216. Both limits were calculated by taking
ninety percent of the average purchase prices of new and existing housing
in our area. The Florida New Business Report obtained the data used in
determining maximum purchase price and is accepted by the State of
Florida for this purpose. The report determines the average median
purchase price for the documentary stamps paid on deeds during a
twelve-month period. The latest period was October 1998 to September
1999. This change more accurately reflects our current market conditions.
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4. Pinellas County has issued bonds for the financing of low and moderate
income housing in the county. The bond program is popular with low-
income homebuyers because it provides a lower interest rate and for
home buyers to make use of down payment and closing cost assistance
through the jurisdiction in which the property is purchased. The City has
been asked to participate, along with the other direct recipients of SHIP.
The County has asked for up to $150,000 per year provided in two
installments of up to $75,000 each. Staff is proposing providing two
installments of $35,000 for a total of $70,000 to start with. If there is a
stronger demand for the program in Clearwater, and the SHIP budget
allows, more can be provided up to the total of $150,000. The funds will
be provided to the county at 0% interest and will be combined with the
funding from the County, and other participating jurisdictions. The funds
help create a lower "blended rate". Funds are repaid to the city as the
borrowers pay down their mortgages.
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