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5410-93 ORDINANCE-NO .' 5410-93 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORYn^ ESTABLISHING THE CLEARWATER STATE HOUSING INIT I PARTNERSHIP (SHIP) PROGRAM; PROVIDING FOR Ar--? f HOUSING ASSISTANCE TRUST FUND; ESTABLISHING THE AND PURPOSE OF THE LOCAL HOUSING ASSISTANCE P PROVIDING FOR A LOCAL HOUSING ASSISTANCE PROGR, THE IMPLEMENTATION AND ADMINISTRATION THEREOF; PRA FOR AN AFFORDABLE HOUSING ADVISORY COMMITTEE; PRI 11 to rMK--s"??" FOR THE TERMS, DUTIES AND RESPONSIBILITIES 0 GUIDELINES TO BE UTILIZED BY, SAID COMMITTEE IN Al OF RECOMMENDATIONS FOR THE AFFORDABLE HOUSING IN( PROGRAM; PROVIDING FOR SEVERABILITY; PROVIDI EFFECTIVE DATE. WHEREAS, the City of Clearwater adopted its Housing Element as part of the Comprehensive Plan of the City on December 15, 1989; and WHEREAS, the City adopted its Comprehensive Housing Affordability Strategy (CHAS) as part of the Pinellas County Consortium; and WHEREAS, the City of Clearwater has prepared a'Local Housing Assistance Program which is consistent with Chapter 420, Florida Statutes; Rule 9I-37, Florida Administrative Code; and the Housing Element and CHAS of the City; now, therefore, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF CLEARWATER, FLORIDA: Section 1. The Clearwater State Housing Initiatives Partnership (SHIP) Program establishing: (1) Housing Trust Fund; (2) Housing Assistance Program; (3) the responsibility for the implementation and administration of the Local }lousing Assistance Program; and (4) the Affordable Housing Advisory Committee, is hereby adopted to read as follows: SECTION I. DEFINITIONS A. "Act" means the, State Housing Initiatives Partnership Act, Sections 420.907 through 420.9079, Florida Statutes. B. "SHIP Program" means the State Housing Initiative Partnership Program. C. "LIHIC Program" means the Low Income Housing Tax Credit Program. D. The definitions set forth in the Act and in Rule 9I-37.002, Florida A. Administrative Code (FAC), are adopted by reference. SECTION II. LOCAL HOUSING ASSISTANCE TRUST FUND A. The Local Housing Assistance Trust Fund is hereby created and established. B. All monies received from the State of Florida pursuant to the Act and any other funds received or budgeted to provide funding for the Local Housing 111o - ¦ `.? 08'fir Assistance Program shall be deposited into the Local Housing Assistance Trust Fund. Administration of the Local Housing Assistance Trust Fund shall comply with Rule 9I-37.007, Florida Administrative Code (FAC). C. 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. D. Amounts on deposit in the Local Housing Assistance Trust Fund shall be invested, until needed for application thereof, in the State Board of Administration's local government surplus funds trust fund established pursuant to Section 218, Part IV, Florida Statutes. All investment earnings shall be retained in the Local Housing Assistance Trust Fund and used for the purposes thereof. E. Until utilized for the purposes thereof, monies in the Local Housing Assistance Trust Fund shall be held in trust by the City solely for use pursuant to the Local Housing Assistance Program. All Local Housing Assistance Program income, including investment earnings, shall be retained in the Local Housing Assistance Trust Fund and used for the purposes thereof. F. The Local Housing Assistance Trust Fund shall 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. INTENT AND PURPOSE OF LOCAL HOUSING ASSISTANCE PROGRAM A. The intent and purpose of the Local Housing Assistance Program is: 1. To make affordable resident units available to persons of very low, ±r low, and moderate income and to persons who have special needs, such as, but not limited to, the elderly, disabled, homeless, and single parents. 2. To increase the availability of affordable housing units by combining local resources and cost-saving measures and using private and public funds to reduce the cost of housing; 3. To promote more compact urban development and assist in achieving the growth management goals contained in the City's Comprehensive Plan, by allowing more efficient use of land so as to provide housing units affordable to persons having special housing needs, very low income, low income, or moderate income; i i 3 S i 4. To promote innovative design of eligible housing that provides cost savings; flexible design options for housing and development such as the combination of architectural styles, building forms, and development requirements; and positive design features such as orientation towards the street and pedestrian access, without compromising the quality of eligible housing; 2 5. To promote mixed income housing in urban, suburban, and rural areas so as to provide increased housing and economic opportunities for persons having special housing needs, very low income, low income, or moderate income; and; 6. To build the organization and technical capacity of community-based organizations so as to optimize the role of community-based organizations in the production of affordable housing. B. The purpose of this Ordinance is to aid in achieving the intent of the Local Housing Assistance Program while providing for: 1. Protection of natural resources; 2. Enhancement of the viability of public transit, pedestrian circulation, and non-motorized modes of transportation; 3. Community development and economic growth; and 4. A strong sense of community through increased social and economic integration. SECTION IV. ESTABLISHMENT OF LOCAL HOUSING ASSISTANCE PROGRAM A. The Local Housing Assistance Program is hereby created and established. The Program will be implemented through a local housing partnership that will involve, to the greatest extent possible, lending institutions, housing developers, non-profit and other" community-based housing and service organizations, providers of professional services relating to affordable housing, and other persons or entities who can assist in providing housing or related support services. 3 B. The specific participants in partnership activities may vary according to the City's resources and the nature of the local housing assistance program. The participants in the partnership will be more fully delineated in each Local Housing Assistance Program to be developed and adopted by resolution every one to three years pursuant to Rule 91-37.005, F . A. C. , except that the first Plan covering State Fiscal Years 1992-93 and 1993-94 is attached to this ordinance as Attachment A and adopted by reference. C. The City shall use the funds received from the State pursuant to the. State Housing Initiatives Partnership Act to implement the Local Housing Assistance Program. Specific activities implementing the Program, including percentage of funds allocated, will be more fully delineated in each Local Housing Assistance Program. The following criteria apply to allocation of SHIP funds: 1. No more than 10 percent of all monies will be allocated annually to administrative costs. 2. The remainder of the funds will be allocated to meet the following 3 purpos es: (a) Implement locally designed strategies that create or preserve both affordable rental and homeownership housing utilizing local, State or Federal assistance through loans or grants that result in new construction, acquisition, acquisition with rehabilitation, or rehabilitation, or (b) Supplement existing and future local, State or federal housing programs, such as the State Apartment Incentive Loan Program or State and local Homeownership Assistance Programs, with SHIP funds directed to uses within the City of Clearwater; or (c) Provide local matches to obtain federal housing grants or programs such as HOME; or (d) Fund emergency repairs, including but not limited to repairs performed by existing service providers under weatherization assistance programs pursuant to sections 409.509 through 409.5093, Florida Statutes; or (e) Fund other eligible SHIP activities and projects as may later be provided for under State law without amendment to this ordinance so long as such activities and projects are compatible with the locally developed strategy, 3. Notwithstanding the allocation of funds for the purposes stated above, the following criteria for the use of SHIP funds also apply: (a) At least 65 percent of the funds will be used for homeownership for eligible persons. !t b At least 75 percent of the..funds will be used for construction, rehabilitation, or? emergency repair of affordable housing. (c) Funds not used to meet the criteria set forth in subparagraphs 3(a)&(b) above, nor used in administration of the housing assistance program, will be used for housing production and '.. finance activities, including but not limited to financing the purchase of existing units, providing rental housing, and providing homeownership training to prospective homebuyers and owners of homes assisted through the City's local housing assistance program. D. The followi ng criteria apply to awards made to eligible sponsors or eligible persons for the purpose of providing affordable housing: 1. Homes which are sold under the SHIP Program will not have a sales price which exceeds 90 percent of the median area purchase price. 2. All u nits constructed, rehabilitated, or otherwise assisted with 4 r.•. t•>•?°it't :F?J yY s/°T+t'F.r,t i ? •? ? y.. ?-? ?a ., g?. r:f?'- -. .-?'...?...i.?? + .r ? . '.a???SY.t it 4? .l li. • 4't•{+??, ?.?.. i. ?..,.. ?..im • ?' a`'?` ?: ?; ??"r a ?? ?? '?4?1' r ` ? ; s: ^?': ; v. '."1: ^'V ??.; r.,f i? f,2 ?iYryg•r?.K; ?r toe r SHIP Program funds must be occupied by very-low-income, low-income, or moderate-income persons, including persons with special needs. At least 30 percent of the units must be occupied by very-low-income persons and at least an additional 30 percent by low-income persons. The remainder may be occupied by very-tow-income, low-income, or moderate-income persons. 3. Loans issued using SHIP funds will have terms not exceeding thirty 30 years, except for deferred payment loans or loans that extend beyond 30 years which continue to serve eligible persons. 4. Rental housing constructed or rehabilitated using SHIP funds must provide the minimum set-aside of units for very-low-income, low- income, and moderate-income persons for at least 13 years; otherwise, first right of refusal must be given to eligible nonprofit organizations for purchase at the current market value for continued occupancy by eligible recipients. 5. Eligible owner-Occupied housing constructed, rehabilitated, or otherwise assisted from proceeds provided from the housing assistance program shall be subject to the long-term affordability and recapture requirements as provided by the City. 6. The total amount of monthly payments or the amount of monthly rent charged by the eligible sponsor or his designee must be made affordable to eligible persons. 7. The cost per unit and the maximum cost per unit for eligible housing benefiting from awards made pursuant to the housing assistance program will be established by resolution. 8. The benefit of assistance provided through the SHIP Program must accrue to eligible persons occupying eligible housing. SECTION V. DESIGNATION OF RESPONSIBILITY FOR ADMINISTRATION AND IMPLEMENTATION OF THE LOCAL HOUSING ASSISTANCE PROGRAM A. The City Manager shall be responsible for the implementation and administration of the Local Housing Assistance Program, including coordination with the housing partnership. B. 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 Local Housing Assistance Program is submitted. C. The total amount paid for any administrative expenses in connection with the Local Housing Assistance Program shall not exceed ten percent of the proceeds of the local housing distribution per year. D. In implementing the Local Housing Assistance Program, the City shall: 5 i I. Develop a qualification system for applications, for awards, and adopt criteria for the selection of eligible persons and eligible sponsors and a maximum award schedule or system of amounts consistent with the intent of the City's local housing assistance program and the Act. 2. Advertise the availability of a housing assistance program in a newspaper of general circulation and in periodicals serving ethnic and diverse neighborhoods, if they exist, at least 30 days before the beginning of any application period. 3. The City and all eligible sponsors shall not discriminate in the award 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. 4. Comply with all rules and regulations of the Florida Housing Finance Agency in connection with required reporting by the City of compliance and its Local Mousing Assistance Program. 5. Require that, prior to receiving an award, all eligible persons or eligible sponsors shall enter into an agreement with the City to comply with the affordable housing criteria provided under the Act. Contractual obligations required to ensure compliance with award conditions as delineated in this ordinance and in the Act will be specified in the contract documents submitted to the State as part of the Local Housing-Assistance Program. 6. Ensure that staff or the entity that has administrative authority for the local housing assistance program assisting rental developments shall annually monitor and determine tenant eligibility. 7. Require eligible sponsors receiving assistance from both the SNIP Program and the LIHIC Program to comply with the income, 'affordability, and other LIHIC requirements. Similarly, any eligible housing receiving assistance from SHIP and other Federal programs shall be required to comply with any requirements specified by the Federal program in addition to SHIP requirements. 4 SECTION VI. 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 Clearwater 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 City's Comprehensive Plan. C. The Affordable Mousing Advisory Committee shall consist of nine members. Five members shall constitute a quorum, The committee may not take formal 6 actions unless a quorum is present, but may meet to hear presentations if duly noticed. The Affordab le 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 de signated as an advocate for low income persons. 5. One citizen who is a provider of affordable housing. 5. One citizen who is a real estate professional. D. Members shall serve for six-month terms initially and may be reappointed for subsequent terms for a time period to be designated by the city commission. E. Meetings shall be held at least monthly for the first nine months of committee existence and quarterly or more frequently thereafter. F. The Affordable Housing Advisory Committee shall comply with the Government in the Sunshine Law, the public records law, and the special provisions regarding notice of Affordable Housing Incentive Program considerations found in Section 420.9076, F.S. (1992 Supp.). Minutes of the meeting shall be kept. G. The Affordable Housing Advisory Committee shall annually elect a Chairperson, Vice-Chairperson, and such other officers as it deems necessary. The Chairperson is charged with the duty of conducting meetings in a manner consistent with law. H. Staff, administrative and facility support of the Affordable Housing Advisory Committee shall be provided by the City Manager. I. The Affordable Housing Advisory Committee shall review the established policies and procedures, ordinances, land development regulations, and the City's Comprehensive Plan and shall recommend to the City Commission specific initiatives to encourage or facilitate affordable housing while protecting the ability of the property to appreciate in value. J. Recommendations may include the modification or repeal of existing policies, procedures, ordinances, regulations, or land provisions. At a minimum, the Affordable Housing Advisory Committee shall make recommendations on affordable housing incentives in the following areas: 1. The affordable housing definition in the appointing resolution. 2. The expedited processing of permits for affordable housing projects. 3. The modification of impact fee requirements, including reduction or waiver of fees and alternative methods of fee payment. 4. The allowance of increased density levels. 5. The reservation of infrastructure capacity for,housing for very low 7 income persons and low income persons. 6. The transfer of development rights as a financing mechanism for housing for very low income persons and low income persons. 7. The reduction of parking and setback requirements. 8. The allowance of zero-lot-line configurations. 9. The modification of sidewalk and street requirements. 10. The establishment of a process by which the City considers, before adoption, procedures and policies that have a significant impact on the cost of housing. 11. The preparation of a printed inventory of locally owned public lands suitable for affordable housing. K. The Affordable Housing Advisory Committee recommendations may also include other affordable housing incentives identified by the Committee. L. To the maximum extent feasible, the recommendations submitted to the City Commission shall quantify the affordable housing cost reduction anticipated from implementing the specific recommendation. M. Within nine months from the adoption of this Ordinance, the Affordable Housing Advisory Committee shall make to the City Commission recommendations approved by a majority of its membership following a public hearing. Notice of the time, date, and place of the public hearing 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 copies of the tentative Affordable Housing Advisory Committee recommendations can be obtained by interested persons. Section 2. It is the intention of the City Commission that the provisions hereof shall be considered severable and that the invalidity of any provision of this ordinance shall not affect the validity of any other provisions of this ordinance. Section 3. This ordinance shall take effect 30 days after adoption. ti PASSED ON FIRST READING AS AMENDED PASSED ON SECOND AND FINAL READING AND ADOPTED AS AMENDED June 17, 1993 July. 1, 1993 th Garvey, Mayor-CommissXVer Attest: Cyn hia E. Goudeau; A. ky C erc Approved as to form and correctness: M. A. Ga rait , r., City Attorney 8