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LOCAL HOUSING ASSISTANCE PLAN-PROGRAM INFORMATION SHEET I I State Housing Initiatives Partnership (SHIP) Program Local Housing Assistance Plan Program Information Sheet Please complete the following information WCAL GOVERNMENT: City of Clearwater CHIEF ELECTED OFFICIAL: Mayor Rita Garvey ADDRESS: City of Clearwater - P,O. Box 4748 - Clearwater, Florida 34618-4748 (112 South Osceola Avenue - Clearwater, Florida 34616) TELEPHONE: ( 813 ) 462-6700 FAX: (813 ) 462-6720 CONTACT PERSON: Alan 1. Ferri. Director, Economic Development Department ADDRESS: P.O. Box 4748 - Clearwater, Florida 34618-4748 (10 South Missouri Avenue - Cl~ater. Florida 34616) " TELEPIIONE:(813) 462-6882 FAX: ( 813 ) 462-6476 INTERLOCAL AGREEMENT: ~/NO (If yes, list other participants in the interlocal agreement) (!he following information must be furnished to the Agency before any funds can be disbursed) LOCAL GOVERNMENT EMPWYER FEDERAL ID NUMBER: 59-6000289 MAIL DISBURSEMENT TO: City of Clearwater - Finance Department - Att: Came Biarkman ADDRESS: P.O. Box 4748 - Clearwater. Florida 34618-4748 (112 South Osceola Avenue - Clearwater, Florida 34616) (3/95) / 0 ( /} " " l.....' ," ~r ,,,,-/... , , ....." - {>; i _1/, / I I STATE HOUSING INITIATIVES PARTNERSHIP LOCAL HOUSING ASSISTANCE PLAN (LHAP) CITY OF CLEARWATER, FLORIDA STATE FISCAL YEAR 1996/97 (July 1,1996 through June 30,1997) I. LOCAL HOUSING ASSISTANCE PLAN This Local Housing Assistance Plan (LHAP) sets forth the plans for all of the City of Clearwater for State Fiscal Year (FY) 96/97 to increase the supply and delivery of safe, decent and affordable housing to the City of Clearwater. This plan meets the provisions of Chapter 91-37, Florida Administrative Code, State Housing Initiatives Partnership (SHIP) program Florida Statutes Chapter 420.907 through 420.9079. Public input in the development of this Local Housing Assistance Plan was solicited through: The City's Neighborhood and Affordable Housing Advisory Soard (NAHAS) was fonned in 1995. The NAHAS monitors and provides input to the Clearwater City Commission on implementation of the Housing Element of the Comprehensive Plan; supports and advises the Economic Development Department on development of a public constituency for affordable housing and neighborhood improvement; initiates and supports creation of publicJprivate partnerships for affordable housing and facilitates coordination of agencies engaged in affordable housing and neighborhood improvement programs; and serves as affordable housing and neighborhood improvement advocates on critical matters of public policy. No more than a maximum of ten percent (10%) of the City's SHIP allocation will be used to cover administrative expenses. Of the remaining ninety percent (90%) the funds shall be used by Local Housing Partnerships to implement the following locally designed strategies. In all strategies at least thirty percent (30%) of the units shall be occupied by very low income persons; at least thirty percent (30%) of the units shall be occupied by low income persons; and no greater than forty percent (40%) of the units shall be allocated to units occupied by moderate income persons. As required by statute, a minimum of sixty-five percent (65%) of all SHIP funds will be dedicated to home ownership activities. The City has committed the City's Community Development Block Grant funds for housing programs such as homeowner rehabilitation and new construction. This emphasis will be continued under the SHIP program administered by the City of Clearwater. As required by statute, a minimum of seventy-five percent (75%) of SHIP funds will be reserved for construction, rehabilitation, or emergency rehabilitation. Administrative and organizational resources now in place in the City of Clearwater are structured to continue the implementation of construction, rehabilitation, and emergency rehabilitations. Page 1 of 6 L:lDATAICOOISJ1JP AJF I I A. SUDDort Services Support services available to eligible persons and sponsors shall consist of the following: Counseling Home ownership counseling for first-time home buyers is currently being provided by Economic Development Department Staff and such non-profits as Clearwater Neighborhood Housing Services and Tampa Bay Community Development Corporation. The City also uses established and accredited First-Time Home-Buyer education courses that are offered through the Community Service Foundation. II. LOCAL HOUSING PARTNERSHIPS The City of Clearwater's public-private partnership is the Challenge 2000 Loan Program. The City, through Challenge 2000, has created partnerships with area banks, local affordable housing non-profits, title companies, local developers, and other organizations that are engaged in the affordable housing business. Through these partnerships, the City has been able to expand the supply of safe, decent, and affordable housing to many of its residents. Without these partnerships, many families would still be living in unsafe and unsanitary houshg, paying for rent, rather than experiencing the American dream of home ownership. III. STRATEGIES STRATEGY #1: Rehabilitation of Existing Homes The City, through its Housing Programs, finances rehabilitations for eligible very-low, low and moderate income persons who own and occupy substandard housing units. The SHIP subsidy will be in the form of a deferred payment loan (DPL) with no interest and no monthly payment due unless the home is sold, rented, or ownership is transferred. In the case of a DPL, a lien is placed against the property only as a recapture mechanism for the loan. STRATEGY #2: New Construction/DeveloDment of Housing Units The City develops affordable housing units for eligible very-low, low, and moderate income persons. The City and eligible sponsors acquire land to provide affordable housing units for eligible persons. Eligible sponsors shall also be awarded funds to construct and/or develop affordable housing for eligible persons. Page 2 of 6 UOA T AICDOISHIP.AJF 1 I The activities performed in this strategy supplement the City's Challenge Fund Program. The assistance may remain in the unit as a deferred payment loans (DPL's) which carry no Interest and low interest loans shall be available for very-low, low, and moderate income persons through this strategy. In the case of a OPL, a lien is placed against the property only as a recapture mechanism for the loan. The DPL loan is not due until the home is sold, rented or ownership is transferred. Payment of the principal amount of the DPL is deferred while the borrower remains the fee simple owner and resides at the noted property, and no default of the terms of the mortgage securing the note has occurred. Default will cause the note to become immediately due and payable. Upon default, the City, at its option may prepare an alternative promissory note requiring monthly payments of principal and interest. All payments on the alternative note shall be applied first to interest to date of receipt, then to principal, then to late charges due. During the deferred term the note will not accrue interest. The owner(s) reserve(s) the right to pre pay the principal in whole or in part at any time without payment of premiums or penalties. The note is secured by a mortgage duly filed for record in Pinellas County, Florida. The City will continue SHIP Funds to provide the local matching funds/credits required for Federal and State affordable housing programs. Federal HOME funds may be used to assist eligible very-low, low, and moderate income first-time home buyers in the form of gap financing. The City may use SHIP funds as the Local Contribution when participating in such programs as the Federal Low Income Housing Tax Credit or the Florida State Apartment Incentive Loan (SAIL) Programs. In most cases the City will use HOME and SHIP funds to meet the required local contribution of the total project funding for these types of projects. The SHIP funds that are used in these types of projects will either be in the form of a Deferred Payment Loan or Low Interest Loan. STRA TEGY #3 Oownpavrnent Financing Assistance The City, through its Affordable Housing Programs and through eligible sponsors, shall provide funds for down payment, closing costs and gap financing for very-low, low, and moderate income persons being assisted through the City of Clearwater's Challenge 2000 Program. The Challenge 2000 Program provides reduced rate mortgages to very-low, low, and moderate income residents of the City of Clearwater. The program provides downpayment assistance for eligible persons purchasing a home. The maximum gap financing shall be $2,750. The maximum combined downpayment, closing costs, and gap financing shall not be greater than $2,750. This assistance shall be in the form of a Deferred Payment Loan (DPL) with no interest and no payment due unless the home is sold, rented, or ownership is transferred. In the case of a OPL, a lien is placed against the property only as a recapture mechanism for the loan. Page 3 of 6 L:\DA r A\CDO\SHIP.AJf I I Program Income Program income that will be derived by the City from loan repayments, reimbursements, or other repayments and interest earned on SHIP activities, shall be used exclusively for SHIP eligible program activities other than salaries or administrative expenses. Recapture Provisions Eligible affordable housing units assisted with SHIP dollars may be subject to long-term recapture provisions similar to those used under the Federal HOME Program. The terms of the recapture provisions will depend on the type of assistance provided. The majority of the DPL and Gap Liens issued under the Challenge 2000 Program will carry recapture and affordability terms consistent with the HOME Program. Compliance The City will promptly notify the Florida Housing Finance Agency if at any time during the term of this plan they will be unable to comply with the provisions of our LHAP. IV. TIMElINE FOR EXPENDITURES (See Attachment B) V. AFFORDABllITY The following chart, Exhibit I, based on Median Family Income, may be used to determine qualification for an activity offered under one of the strategies within this plan. The chart describes the Income Limits and Rental Rates adjusted for family sizes. "Affordable" means that monthly mortgage payments, including taxes and insurance, do not exceed 30% of an amount representing the percentage of the area median income limits for the family size for that household, (i.e., very-low, low, or moderate income). It is not the intent to limit a household's ability to devote more than 30% of its income for housing as long as the amount does not exceed 30% of the area median income limits adjusted for family size for the income category. VI. ADVERTISEMENT AND OUTREACH Outreach The Outreach Strategy to identify potential eligible recipients is to work closely with our local non-profit corporations who specialize in home ownership counseling, credit counseling and homeowner rehabilitation programs, as well as existing City programs which target neighborhoods and code compliance activities. Outreach will be conducted via printed materials, newspaper ads and video tapes aired on the local Government Access Television (GATV) to advertise availability of housing programs Page 4 of 6 l:\DA T A\COO\SHIP.AJF I I and funding sources. Strategies designed to select recipients of housing units to be built or rehabilitated include: 1 . referrals to/from non-profits/for-profits, and 2. periodic "Open House" sessions wherein the City and many affordable housing related organizations advertise for recipients and collect family size, income data and credit histories to determine eligibility for various forms of housing and related services. Selection The City will continue to publish annually a "Notice of Fund Availability (NOFA)" while SHIP funds are available, in local newspapers serving general circulation and ethnic diverse neighborhoods. Selection of eligible sponsors is done by a "Request for Application" process in which the applications are competitively ranked. Applications will be scored and ranked no earlier than thirty (30) days after advertisement of the application period. A minimum low score has been established and the main weighted categories are: 1. Does the activity benefit very-low and low income individuals? 2. If the activity to be performed in one of the City's CDBG Target Areas? 3. Does the activity result in home ownership? 4. What is percentage of other funds that will be used in the project? SHIP funds will be advertised in a publication of general circulation at least thirty (30) days prior to accepting applications. Recioients The selection of recipients shall be on a first-come/first-served preference for all income eligible persons, except where certain hardship cases exist, which shall be determined by the City. All possible efforts will be made to accommodate very-low and low income families in order to exceed the minimum percentages required. Selection and the Expenditure of Funds will be done 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. Eligible persons and sponsors who are recipients of SHIP funds will be required to contractually commit to the City of Clearwater and State of Florida SHIP Program and Federal HOME Program rules and regulations. The City will strongly encourage all eligible sponsors to attend all applicable SHIP/HOME workshops. Sales Prices The maximum sales prices of new or existing homes shall not exceed ninety percent (90%) Page 5 of 6 L\OA '!" A\COO\SHIP.A.JF ) I of median purchase price as established by the U.S. Department of Treasury as amended from time to time. (Exhibit II) Program Strategies: The Program Strategies described in our three strategies will result in a reduction of housing costs to eligible recipients by: 1. relaxed lending requirements as a result of implementation of the Challenge Fund. 2. below market interest rates. 3. create the opportunity for home ownership to many more very-low and low income residents, and 4. to expand the supply of safe, decent, and affordable housing to the residents of the City of Clearwater that would be unavailable without the implementation of our Local Housing Assistance Program. In terms of our Partnerships, as we move further along in our Programs, the Partnerships that have been developed will continue to strengthen and we will also work to build new and lastir.g partnerships. VII. ADMINISTRATION The SHIP administration allocation of not-to-exceed 10% will be spent the following way: SHIP Administrative Expenses (10% of Allocation) I FY 95/96 Salaries & Benefits Operating Equipment TravelfTraining Supplies Memberships & Dues $55,884.00 .00 .00 .00 .00 $55,884.00 TOTAL VIII. CERTIFICATION PAGES (See Attachment C) Page 6 of 6 L;\OA T AICDOISHIP.AJF I I EXHIBIT I 1996 MEDIAN INCOME- PINELLAS COUNTY City of Clearwater Economic Development Department INCOME ELIGIBILITY LIMITS by US Dept of HUD Effective 12-07-95 Household Median 50% Median 80% Median 120% Size Income (Very Low) (Low) Median Income Income Income 1 Person $ 27,600 $ 13,800 $ 22,050 $ 33,100 2 Persons 31,500 15,750 25,200 37,850 3 Persons 35,500 17,750 28,350 42,550 4 Persons 39,400 19,700 31,500 47,330 5 Persons 42,600 21,300 34,050 51,100 6 Persons 45,700 22,850 36,550 54,850 7 Persons 48,900 24,450 39,100 58,650 8 Persons 52,000 26,000 41,600 62,450 GROSS (UNADJUSTED) MEDIAN HOUSEHOLD INCOME - $ 39,400 L:\OA T A\CDO\FORMS\INCOMEll.FRM Revised 02107/96 I I EXHIBIT II STATE HOUSING INITIATIVES PARTNERSHIP PROGRAM * 90% OF MEDIAN AREA PURCHASE PRICE LOCAL GOVERNMENT NEW EXISTING Daytona Beach MSA 106,365 71,686 Fort Lauderdale PMSA 124,187 108,726 Fort Myers - Cape Coral MSA 121,536 102,242 Fort Pierce - Port St. Lucie MSA 92,644 95,682 Jacksonville MSA 106,017 92,490 Lakeland - Winter Haven MSA 87,121 57,535 Melbourne - Titusville - Palm Bay MSA 110,749 90,846 Miami PMSA 119,439 113,418 Naples MSA 106,365 118,264 Orlando MSA 95,838 101,707 Punta Gorda MSA 106,365 79,463 Sarasota - Bradenton MSA 106,711 94,995 Tallahassee MSA 106,365 90,055 Tampa - St. Petersburg - Clearwater MSA 88,679 83,491 West Palm Beach -Boca Raton Raton MSA 134,040 107,949 Monroe County 135,714 124,875 Other Areas 106,365 98,523 *Source: Revenue Proclamation 94-55, U.S. Department of Treasury ~..... I I EXHIBIT III 1996-1997 AVERAGE/MAXIMUM AWARDS STRATEGY #1 REHABILITATION OF EXISTING HOMES Proposed average cost per unit.................. ........ ....... ................................................... $15,000 Proposed maximum cost per unit........ ......... ...... ............................. ......................... ...... 20,000 Proposed 1996-1997 maximum cost per unit..... ............ ........................ ........................ 20,000 Proposed 1996-1997 average SHIP cost per unit .......... .......... ..... ......... ....................... 15,000 Number of households assisted.. ................... ...... .................................................. ...... ......... .18 STRATEGY #2 NEW CONSTRUCTION/DEVELOPMENT OF HOUSING UNITS Proposed average cost per unit.................................................................................... $15,000 Proposed maximum cost per unit................................................................................... 20,000 Proposed 1996-1997 maximum cost per unit................................................................. 20,000 Proposed 1996-1996 average SHIP cost per unit......................................................... 15,000 Number of households assisted ............................................................................................ 11 STRATEGY #3 DOWNPAYMENT FINANCING ASSISTSANCE EXISTING HOME PURCHASE Proposed average cost per unit...................................................................................... $2,583 Proposed maximum cost per unit ............. ............................. ................... ................... ......2.750 Proposed 1996-1997 maximum cost per unit...... ................ .................. ............... ...... .......2, 750 Proposed 1996-1997 average SHIP cost per unit............................................................2,583 Number of households assisted ....... ........ .......... .................................... ..................... ...........22 MAXAWDS.FRM I I ATTACHMENT A HOUSING DELIVERY GOALS FY 96-97 FLORIDA HOUSING FINANCE AGENCY HOUSING DELIVERY GOALS CHART STRATEGIES FOR THE LOCAL HOUSING ASSISTANCE PLAN FOR STATE FISCAL YEAR: 1996-97 _ PIon: x ~ Yr. c::loMcU: -- Name of Local Government: City of Clearwater ArruIII__ $ 572 384 IA B _ :::))'::;:!itP~~~H1~,~""",~,) ":"""':':':";';:;';'::;:;':"""":"';} .... }};~~..::l~,IM,~,SHllil,AwaidS',;:',"';:"";,:":;,,,,,;,;;,"",:"",,:,::',::~',~'i':'::~: ;,i,'NiiW:COOSlroctlOif} ...... .. ... .. .::~,~~ i:.. ....:.. i:;>: ~ ~(((~\~(($#.fA~lE$.\~((((~\' Urils Mllldnun SHIP Urils Mllldnun SHIP Urils Mllldnun SHIP T..... "01 SHIP "01 SHIP "or SHIP ~~~.!!WII -'-" ";;'000 '"" 5 ';:'000 -, ~ 000 ~ 18 ~ - "';.. ::'-000 ~ - 's 315 000 18 2. NewConl1Nc1lonHome Pu"d1ese 1 20000 5 15000 5 10000 11 11 $ 145,000 ~ . - $ 145000 11 3. E>dI1Ino Home Pu"d1e.. 6 2 750 11 2 500 5 2 500 22. . ~ 22 $ 56 SOO $ 56.l5OO 22 ===~;;;~~:~:;:~::,~",:,',:,;"';,;:,"',:;;:::,';.;;,.;;;:;;:;':;;'::':~.I~.::i::::~~:l::::':.:::::;::.:::::::i~:.;:;:;",;:"",:"::,::,,::!::,.',,,,:,~:::::;,..;:,:::;,,~1.~..:D;:'}.~;: :~= .;. : SOO~:.~ 51:O~ 51 :::;:.::::::::::'::::::::::rI~III::::::::::::::::::::::if:; V:::~ M7"':IP:: ~:HIP = M~IP = ~ =: ~ :: := =. 1. 2. 3. SUltotal 2 . ",:,,:;:;;,:::::,":::;;::;:::,:,:::,:: . .:,:,:,:,:;:,:::,:::;:;:::,:::,:,:,:,:;:,: . :;:;:;:,:::::::;:;:;:::,:::;:,:;:;:::::::;. . . $ . . $ _ . $ _ $ . Aaninil1r1l1lon F..... .,. ... ."""IWO:,'joji!i!i(.... .",:... .,... ........ ;;~l:I~;:tif;._.... . ;:,:::::,:::,;::::::;:,,;:,:,:,:,';::~:::,i',:::::,'::;::':::';i::',:,i'::,i:,i:;:::,:~:,i::i::i:;~ii:,:;:;iii':~~~,::;M::::i~,'~,:",:~~~,:i~~:::.,,-::::~:;~,*;.. ~... .. ~$ 55 884 Home OwnershlD Ccu1seIno ;;:;:;:;:;:::;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:::;:::;:;:;:::::::::;:::::::::::::::::::::::;:::;:::::::::::~:::::::::::::::::::::::::::::;:::::::::::::::::::::::::::::::::::::;:::::::::;::::::::::::~:::::;::::::::::::::::::::;:::::::::::::::~:::::::::::::::::::::::::~::::::::::;:::::::::::::::::::::::::::::::::::::::~~::::::::~~:::::::::::::::::::::~::~:~:::::::::~:::::~~:::::::~::::::::'t.~::$::~:~:::~~:;:~::::::::::~~"*':::.::::'::~~~S- GRAND TOTAL 18 ::"::.,,.:::,;,::,:;::::.:::,::,:,1 21~.::::.:::::::::::'..;:'::.:.'::..:.:'::. 121::.:::::::.::::.,.:::..::::.:.':..:::'1 51 11 $ 145000 I 181$ 315000 I 221$ 56500 $ 5n384 =-= ~=; Very L~ 35% .:::.:!::'::\!;:!i::::::;:::;:::::::: ~'7 % ~4% :::::)::::;:::::;:;:::::;::::~::::::t:~:::::~;::::iiili1:::ili1@:;~i::~:m:;:\;.:;::.;::;::;.::;;/:. .::::::i;I;~m~l~jilll)lli1a)"-''1 PeIl:en_Con.It1Jc_fllr.b.f7~+ (;i6ililf~litliS/'iit..... .. ~twi~.A::ac'j~~WIiill~~iiit;rijIMII"liIUlt:~~,~@~:&~".:;,@):~~~~\ii:~~~x '~~ 80.4~ ~:~aU= ~::,ble :::::::::::::::::::::::::::::::::::::::::::::::::::~~::::::~:;:::::::::::::::::::::~:::~:::~:~:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::':::t::::::::::::::::::~::~~:~::I:::::::::::~:::~::::::::,:::;::::~;::::::::::::::::::::~:::::::::::::~:::::::::::::~:::::::I:::::I:::I:::::::::I:::::::::::~:::::~::::::::::::::::::::::::::~::::::::::::::::::::::::::::::::::::~::::::::::~l::~::~:::::::::::::::::::::::::::::~:::l:::~ =.r. :: :: :~ 51 - I I ATTACHMENT B TIMELlNE FOR EXPENDITURES - ATTACHMENT B TIMELlNE TABLE FOR FISCAL YEAR 1996-1997 CITY OF CLEARWATER 1996 1997 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X -, I ATTACHMENT C CERTIFICATIONS I I I CERTIFICATION TO FLORIDA HOUSING FINANCE AGENCY Local Government: City of Clearwater, Florida (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 govern- ment (or interlocal entity) will be unable to comply with the provisions of the plan (7) The Local Housing Assistance Plan shall provide for the expenditure of SHIP 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 Assistance Plan. (9) Amendments to the approved Local Housing Assistance Plan shall be provided to the Agency within 21 days after 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. (1 2) 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 audit will be forwarded to the Agency as soon as available. (13) An interlocal 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 available. I I Page -2- CERTIFICA TION (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 (L1HTC) Program shall comply with the income, affordability and other L1HTC requirements, Similarly, any units receiving assistance from other federal programs shall comply with all Federal and SHIP program requirements. (1 6) Loans shall be provided for periods not exceeding 30 years, except for deferred pay- ment loans or loans that extend 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 15 years for compliance with tenant income requirements and affordability requirements. Witness / /' . 1~ cd-- Lv\:) I~~ Kathy S. Rice \ " Deputy City Manager Witness Date '1/.,J~/c;<r Attest: (SEAL) hia E. Goudeau Clerk