Loading...
09-21 RESOLUTION NO. 09-21 A RESOLUTION OF THE CITY OF CLEARWATER, FLORIDA, ADOPTING THE CITY OF CLEARWATER STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) LOCAL HOUSING ASSISTANCE PLAN COVERING STATE FISCAL YEARS 2009-2012; AMENDING STATE FISCAL YEARS 2006-2009 FOR CONSISTENCY; PROVIDING AN EFFECTIVE DATE. WHEREAS, the State of Florida enacted the William E. Sadowski Affordable Housing Act, Chapter 92-317 of Florida Sessions Law, allocating a portion of documentary stamp taxes on deeds to local governments for the development and maintenance of affordable housing; and WHEREAS, the State Housing Initiatives Partnership (SHIP) Act, ss.420.907-9079, Florida Statutes (1992), and Rule Chapter 67-37, Florida Administrative Code, requires local governments to develop a one to three year Local Housing Assistance Plan outlining how funds will be used, and WHEREAS, the AFFORDABLE HOUSING ADVISORY COMMITTEE has met its statutory and organizational assignments by preparing a set of recommendations to the City Council addressing affordable housing incentives and associated issues; and WHEREAS, the City wishes to make any and all changes within the 2009-2012 Local Housing Assistance Plan retroactive to the 2006-2009 Local Housing Assistance Plan for administrative consistency; and WHEREAS, Section 420.9075(7), 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 Council 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%) of its annual allocation for administration plus five percent (5%) of program income; 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 housing distributions deposited in the trust fund to cover administrative costs; and WHEREAS, the maximum sales prices and values for new and existing homes associated with the LOCAL HOUSING ASSISTANCE PLAN covering Fiscal Years 2009-2012, shall be those as utilized by the U.S. Treasury, as amended and updated, now, therefore, Resolution No. 09-21 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA: Section 1. The City of Clearwater hereby approves the Local Housing Assistance Plan, as attached hereto and incorporated herein (Exhibit "A") for submission to the Florida Housing Finance Corporation as required by ss. 420.907- 420.9079, Florida Statutes, for state fiscal years 2009-10,2010-11 and 2011-12. Section 2. This resolution shall take effect immediately upon adoption. PASSED AND ADOPTED this 15th day of April ,2009. '-~ y ~ Frank V. Hibbard Mayor Approved as to form: Attest: ~~ Assistant City Attorney 2 Resolution No. 09-21 Exhibit "A" CITY OF CLEARWATER ; Clearwater o SHIP LOCAL HOUSING ASSISTANCE PLAN (LHAP) FISCAL YEARS COVERED 2009-2012 I. PROGRAM DESCRIPTION: A. Name of the participating local government and Interlocal if Applicable: City of Clearwater Interlocal: Yes No X Name of participating local government(s) in the Interlocal Agreement: Not Applicable B. Purpose of the program: Creation of the Plan is for the purpose of meeting the housing needs of the very low, low and moderate-income households, to expand production of and preserve affordable housing, to further the housing element of the City of Clearwater comprehensive plan specific to affordable housing. The City's LHAP has the following goals: · Increase homeownership in the City of Clearwater · Preserve, increase and rehabilitate the City's housing stock, especially what is available for very-low, low and moderate-income families · Promote better livable opportunities in the targeted areas · Promote affordable housing for renters and homebuyers · Provide opportunities for households to obtain or remain in their homes/ rental units · Provide housing opportunities for the City's homeless population or those at risk of becoming homeless · Provide a match required by federal programs C. Fiscal years covered by the Plan: 2009-2010 2010-2011 2011-2012 D. Governance: The SHIP Program is established in accordance with Section 420.907-9079, Florida Statutes and Chapter 67-37.007 Florida Administrative Code. The SHIP Program does further the housing element of the local government Comprehensive Plan. Cities and Counties must be in compliance with these applicable statutes and 1 rules. E. Local Housing Partnership: SHIP Program encourages building active partnerships between government, lenders, builders and developers, real estate professionals, advocates for low- income persons and community groups. The City of Clearwater's local housing partnerships consists of organizations and individuals that are involved in the development of affordable housing or resources related to affordable housing. Some of our key partners include: nonprofits, lenders, realtors, builders/contractors, professional services providers, and other government agencies. F. Leveraging: The Plans are intended to increase the availability of affordable residential units by combining local resources and cost saving measures into a local housing partnership and using public and private funds to reduce the cost of housing. SHIP funds may be leveraged with or used to supplement other Florida Housing Finance Corporation programs and to provide local match to obtain federal housing grants or programs. G. Public Input: Public input was solicited through face-to-face meetings with housing providers, social service providers and local lenders and the City's Neighborhood Affordable Advisory Board. Additionally public input was solicited through the St. Petersburg Times for the Notice of Funding Availability. Information and records, relating to our proposed use of funds, is made accessible for the public to view. H. Advertising and Outreach: The county or eligible municipality or its administrative representative shall advertise the notice of funding availability in a newspaper of general circulation and periodicals serving ethnic and diverse neighborhoods, at least 30 days before the beginning of the application period. If no funding is available due to a waiting list, no notice of funding availability is required. I. Discrimination: In accordance with the provisions of ss. 760.20-760.37, the City of Clearwater finds it is unlawful to discriminate on the basis of race, creed, religion, color, age, sex, marital status, familial status, national origin, or handicap in the award application process for eligible housing. 2 J. Support Services and Counseling: Support services are available from various sources. Available support services may include but are not limited to: Homebuyers Education/Credit Counseling - Through Tampa Bay Community Development Corporation, Clearwater Neighborhood Housing Services, Community Service Foundation and Consumer Credit Counseling Services, the homebuyer counseling and credit counseling programs are made available to all prospective home buyers of all income levels with a special effort to include the disabled, elderly, those with special needs and those of very-low to moderate income. A homebuyer's counseling and education certificate is awarded to each prospective home buyer whether or not that prospective buyer obtains financial assistance. Elderly Services - Pinellas Opportunity Council (POC) assists elderly persons with maintaining their homes in a safe and sanitary condition, allowing the elderly to remain independent and to avoid pre-mature institutionalization. POC services include the removal of accumulated debris including old appliances, tires, building material, furniture and other trash. The goal of POC is to assist the low- income elderly Clearwater population in maintaining a decent, independent living environment. Fair Housing - Gulfcoast Legal Services Housing Preservation project seeks to provide legal assistance for low to moderate income residents of Clearwater who are victims of predatory lending practices, persons who are experiencing or who have experienced discrimination and/or fraud in housing and to remedy these matters through negotiation, mediation or litigation and to assist residents in filling out complaints regarding violations of fair housing laws. Homeless Services - Homeless Emergency Project and Clearwater Homeless Intervention Project provide many services for the homeless population in Clearwater. These services include assisting individuals into independent living on a permanent basis. They also provide educational programs and large group workshops that address the needs of the homeless and financially disadvantaged, leading to greater chances of self-sufficiency and maintaining family continuity. K. Purchase Price Limits: Purchase Price Limits: The sales price or value of new or existing eligible housing may not exceed 90% of the average area purchase price in the statistical area in which the eligible housing is located. Such average area purchase price may be that calculated for any 12-month period beginning not earlier than the fourth calendar year prior to the year in which the award occurs. The sales price of new and existing units, which can be lower but may not exceed 90% of the median area purchase price established by the U.S. Treasury Department or as 3 described above. The methodology used is: _ Independent Study (copy attached) -LU.S. Treasury Department Local HFA Numbers The purchase price limit for new and existing homes is shown on the Housing Delivery Goals Charts. L. Income Limits, Rent Limits and Affordability: The Income and Rent Limits used in the SHIP Program are updated annually from the Department of Housing and Urban Development and distributed by Florida Housing Finance Corporation. Affordable means that monthly rents or mortgage payments including taxes and insurance do not exceed 30 percent of that amount which represents the percentage of the median annual gross income for the households as indicated in Sections 420.9071 (19), (20) and (28), F.S. However it is not the intent to limit an individual household's ability to devote more than 30% of its income for housing, and housing for which a household devotes more than 30% of its income shall be deemed Affordable if the first institutional mortgage lender is satisfied that the household can afford mortgage payments in excess of the 30% benchmark and in the case of rental housing does not exceed those rental limits adjusted for bedroom size. M. Welfare Transition Program: Should a eligible sponsor be used, the city/county has developed a qualification system and selection criteria for applications for Awards to eligible sponsors, which includes a description that demonstrates how eligible sponsors that employed personnel from the Welfare Transition Program will be given preference in the selection process. N. Monitoring and First Right of Refusal: In the case of rental housing, the staff or entity that has administrative authority for implementing the local housing assistance plan assisting rental developments shall annually monitor and determine tenant eligibility or, to the extent another governmental entity provides the same monitoring and determination, a municipality, county or local housing financing authority may rely on such monitoring and determination of tenant eligibility. However, any loan or grant in the original amount of $3,000 or less shall not be subject to these annual monitoring and determination of tenant eligibility requirements. Tenant eligibility will be monitored for at least annually for 15 years or the term of assistance whichever is longer unless as specified above. 4 Eligible sponsors that offer rental housing for sale before 15 years or that have remaining mortgages funded under this program must give a first right of refusal to eligible nonprofit organizations for purchase at the current market value for continued occupancy by eligible persons. o. Administrative Budget: A detailed listing including line-item budget of proposed Administrative Expenditures is attached as Exhibit A. These are presented on an annual basis for each State fiscal year submitted. The City of Clearwater finds that the moneys deposited in the local housing assistance trust fund shall be used to administer and implement the local housing assistance plan. In accordance with Section 420.9075 Florida Statute and Chapter 67-37, Florida Administrative Code, a county or an eligible municipality may not exceed the 5 percent limitation on administrative costs, unless its governing body finds, by resolution, that 5 percent of the local housing distribution plus 5 percent of program income is insufficient to adequately pay the necessary costs of administering the local housing assistance plan. The cost of administering the program may not exceed 10 percent of the local housing distribution plus 5% of program income deposited into the trust fund, except that small counties, as defined in s. 120.52(17), and eligible municipalities receiving a local housing distribution of up to $350,000 may use up to 10 percent of program income for administrative costs. The City of Clearwater City Council finds, by resolution, that five (5) percent of the local housing distribution plus five (5) percent of program income is insufficient to adequately pay the necessary costs of administrating the local housing assistance plan. The Council has adopted a resolution that states that the cost of administering the program may not exceed ten (10) percent of the local housing distribution plus five (5) percent of program income deposited into the trust fund. The city has adopted the above findings in the attached resolution, Exhibit E. P. Program Administration: Administration of the local housing assistance plan is the responsibility of the citv. Should a third party entity or consultant contract for all of part of the administrative or other functions of the program provide in detail the duties, qualification and selection criteria. Q. Essential Service Personnel: Define in accordance with Rule Chapter 67-37.002(8) FA.C. and Chapter 67- 37.005(8), F.A.C. and Section 420.9075(3)(a) FS. 5 Essential Services Personnel means persons whose household income do not exceed 120% of AMI, as updated annually from the Department of Housing and Urban Development and distributed annually by the Florida Housing Finance Corporation and adjusted for family size, including: teachers and educators; other school district and university employees; police and fire personnel; health care personnel; construction industry personnel; Federal, State, County, and local government personnel; utility system (water/sewer, electrical, communication, etc.) personnel; information technology industry personnel; child care personnel; retail workers; tourism industry personnel; food service personnel; the occupations in demand with the most employees; the occupations in demand gaining the most new jobs according to the Agency for Workforce Innovation (A WI); and personnel in other industries deemed essential by the City of Clearwater based on the local economy. II. LHAP HOUSING STRATEGIES: A. Name of the Strate2V: DOWN PAYMENT & CLOSING COST ASSISTANCE FOR NEWLY CONSTRUCTED HOMES. a. Summary of the Strategy: The City of Clearwater, through its housing programs and through eligible developers and sub-recipients, will use SHIP funds for the development of new housing units. These costs may include acquisition, site improvements, building costs and down payment and closing cost assistance to eligible very-low, low and moderate-income homebuyers. The City may loan funds to eligible developers for the construction of new housing units, and in some cases, acquisition of vacant properties and the associated infrastructure and costs for new housing development. It may be necessary to grant all, or portion of, the SHIP funds associated with infrastructure costs in any development. At no time shall the amount of assistance that is "left-behind" to the eligible household exceed the maximum subsidy levels established in this plan for this strategy. The City may also provide funding for assistance to homebuyers for down payment and/or closing costs, including, but not limited to, prepaid items and construction interest. Interest rate buy-downs will also be an eligible activity under this strategy. b. Fiscal Years Covered: 2009-2010, 2010-2011 and 2011-2012 c. Income Categories to be served: This strategy will serve all eligible homebuyers with incomes at or below 120% of area median income, adjusted for family size as published annually by United States Department of Housing and Urban Development (HUD) and distributed by Florida Housing Finance Corporation. d. Maximum award is noted on the Housing Delivery Goals Charts: The maximum award is not automatically provided. It is not the intent of the City to over subsidize a household, where in the absence of the subsidy, a household would be able to afford 6 the level of debt associated with the home that they are seeking to obtain, based on normal underwriting practices. The amount of subsidy should be the difference of what a household can afford in terms of a first mortgage and the purchase price, less any borrower contribution, plus up to 3% of the purchase price for closing costs. e. Terms, Recapture and Default. Include terms of recapture in the event of default (failure to make required payments on a loan secured by a first mortgage which leads to foreclosure and/or loss of property ownership). Deferred payment, grant, low-interest second or third mortgages will be available to eligible home buyers for down payment and closing cost assistance with the following stipulations: · City loan term is not to exceed 30 years . Loans will be secured by a mortgage and note with the mortgage recorded in the public records of Pin ell as County, Florida until satisfied . Repayment of the entire principal balance of the loan is due and payable: -Upon sale or transfer of title -Property is vacated and no longer the primary residence of the borrower -Property is converted into a rental unit -Any refinancing with cash out or debt consolidation The City has determined the following terms and provisions for program income versus recaptured funds: · Program Income is a source of SHIP revenue, received from the following sources: bank interest, amortized loan payments and any associated interest and penalties, loan proceeds due to repayment of a loan under the condition of refinancing, death of recipient, sale or transfer of title, property is no longer the client's primary residence, and property that is not maintained to housing standards. · Recaptured Funds is a source of SHIP revenue, received when a SHIP recipient loses his or her house to foreclosure or the City repays funds that assisted an ineligible client. All funds are deposited into the Local Housing Trust Fund and reported as Program Income or Recaptured in the State Fiscal Year they are received as appropriate for Annual Reporting purposes. f. Recipient Selection Criteria: Assistance is provided on a first-come, first-served basis. All recipients will be income eligible and will be selected using the City's Housing Pool underwriting guidelines, policies and procedures. 1. To qualify for assistance, the eligible program participant must meet the City's definition of a first time homebuyer: · A first time home buyer is an applicant who has not owned a home in the last three (3) years, except in the case of a person who has experienced some form of hardship. 2. The property is located within the city limits of Clearwater. 7 3. The applicant must have completed a Homebuyers Education class approved by the City. 4. The purchased property must meet all applicable building codes and a "Certificate of Occupancy" is issued prior to occupancy. g. Sponsor Selection Criteria, if applicable: Include qualification system and selection criteria for applications for Awards to eligible sponsors. All program sponsors or sub-recipients will be selected using the City's Consolidated Action Plan Application. Eligible sub-recipients or sponsors that provide assistance under this program will be required to contractually commit and comply with all SHIP program requirements. Criteria include: · The not-for-profit corporation must have received a tax-exempt ruling from the Internal Revenue Service (IRS) under section 501c(3) of the Internal Revenue code. · The for-profit corporation must be organized and established under the laws of the State of Florida. · The not-for-profit or for-profit corporation must have financial accountability standards that permit the Economic Development & Housing Department to verify organizational capacity for project implementation. h. Additional Information: Other state, federal, county, private and homeowners contributions may be leveraged with SHIP funds. B. Name of the Strate!!V: DOWN PAYMENT & CLOSING COSTS ASSISTANCE FOR EXISTING HOMES WITH OR WITHOUT REHABILITATION a. Summary of the Strategy: The City of Clearwater, through its housing programs and through its sub-recipients, will use SHIP funds to provide down payment and closing costs assistance (including prepaid items) to eligible very-low, low and moderate-income homebuyers. b. Fiscal Years Covered: 2009-2010, 2010-2011 and 2011-2012 c. Income Categories to be served: This strategy will serve all eligible homebuyers with incomes at or below 120% of area median income, adjusted for family size as published annually by United States Department of Housing and Urban Development (HUD) and distributed by Florida Housing Finance Corporation. d. Maximum award is noted on the Housing Delivery Goals Charts: The maximum award is not automatically provided. It is not the intent of the City to over subsidize a household where in the absence of the subsidy, a household would be able to afford the level of debt associated with the home that they are seeking to obtain, based on normal 8 underwriting practices. The amount of subsidy should be the difference of what a household can afford in terms of first mortgage and the purchase price, less any borrower contribution, plus up to 3% of the purchase price for closing costs. e. Terms, Recapture and Default. Include terms of recapture in the event of default (failure to make required payments on a loan secured by a first mortgage which leads to foreclosure and/or loss of property ownership). Deferred payment and low-interest second or third mortgages will be available to eligible homebuyers for down payment and closing costs assistance with the following stipulations: · City loan term is not to exceed 30 years · Loans will be secured by a mortgage and note with the mortgage recorded in the public records of Pinellas County, Florida until satisfied · Repayment of the entire principal balance of the loan is due and payable: -Upon sale or transfer of title -Property is vacated and no longer the primary residence of the borrower -Property is converted into a rental unit -Any refinancing with cash out or debt consolidation The City has determined the following terms and provisions for program income versus recaptured funds: · Program Income is a source of SHIP revenue, received from the following sources: bank interest, amortized loan payments and any associated interest and penalties, loan proceeds due to repayment of a loan under the condition of refinancing, death of recipient, sale or transfer of title, property is no longer the client's primary residence, and property that is not maintained to housing standards. · Recaptured Funds is a source of SHIP revenue, received when a SHIP recipient loses his or her house to foreclosure or the City repays funds that assisted an ineligible client. All funds are deposited into the Local Housing Trust Fund and reported as Program Income or Recaptured in the State Fiscal Year they are received as appropriate for Annual Reporting purposes. f. Recipient Selection Criteria: Assistance is provided on a first-come, first-served basis. All recipients will be income eligible and will be selected using the City's Housing Pool underwriting guidelines, policies and procedures. 1. To qualify for assistance, the eligible program participant must meet the City's definition of a first time homebuyer: · A first time home buyer is an applicant who has not owned a home in the last three (3) years, except in the case of a person who has experienced some form of hardship. 2. Property must be located within the city limits of Clearwater. 3. The applicant must have completed a Homebuyers Education class approved by 9 the City. 4. The purchased property must meet all applicable building codes. Any deficiencies must be corrected prior to, or as part of, the purchase transaction. g. Sponsor Selection Criteria, if applicable: Include qualification system and selection criteria for applications for A wards to eligible sponsors. All program sponsors or sub-recipients will be selected using the City's Consolidated Action Plan Application. Eligible sub-recipients or sponsors that provide assistance under this program will be required to contractually commit and comply with all SHIP program requirements. Criteria include: · The not-for-profit corporation must have received a tax-exempt ruling from the Internal Revenue Service (IRS) under section 501c(3) of the Internal Revenue code. · The for-profit corporation must be organized and established under the laws of the State of Florida. · The not-for-profit or for-profit corporation must have financial accountability standards that permit the Economic Development & Housing Department to verify organizational capacity for project implementation. h. Additional Information: Other state, federal, county, private and homeowners contributions may be leveraged with SHIP funds. C. Name of the Stratel!V: REPLACEMENT HOUSING a. Summary of the Strategy: Due to the aging housing stock of very-low to moderate-income households, a portion of SHIP funds will be used for the replacement of dilapidated single-family structures. Funds may also be used to assist with acquisition, demolition and construction. The City will provide for the replacement of housing units for eligible very-low, low and moderate-income persons. The City of Clearwater shall award funds to demolish and reconstruct and/or develop owner-occupied housing that is found to be code deficient to the point that rehabilitation is not economically feasible and/or meets one or more of the following: · Poses threat of the health, safety and welfare of the occupants · Cost of the repairs exceed 50% of the property value · Is declared "unsafe" by the code enforcement official b. Fiscal Years Covered: 2009-2010, 2010-2011 and 2011-2012 c. Income Categories to be served: This strategy will serve all eligible recipients with incomes at or below 120% of area median 10 income, adjusted for family size as published annually by United States Department of Housing and Urban Development (HUD) and distributed by Florida Housing Finance Corporation. d. Maximum award is noted on the Housing Delivery Goals Charts: e. Terms, Recapture and Default. Include terms of recapture in the event of default (failure to make required payments on a loan secured by a first mortgage which leads to foreclosure and/or loss of property ownership) Direct loan, grant, deferred payment or low-interest first or second mortgage will be available to eligible recipients. Deferred payment loans may be available to those individuals who cannot qualify for a conventional first mortgage loan upon making an application to at least two (2) lenders. Deferred payment loans will be offered in the form of zero (0%) percent with provisions for the recipient to make monthly payments to cover annual property taxes and homeowners insurance. Partial grants will be typically used when a hardship exist, or for households who are considered Special Needs. In the event of sale, transfer or lease of property, the recipient must abide by the City's loan and/or grant documents, which dictate conditions that will constitute repayment. The City has determined the following terms and provisions for program income versus recaptured funds: · Program Income is a source of SHIP revenue, received from the following sources: bank interest, amortized loan payments and any associated interest and penalties, loan proceeds due to repayment of a loan under the condition of refinancing, death of recipient, sale or transfer of title, property is no longer the client's primary residence, and property that is not maintained to housing standards. · Recaptured Funds is a source of SHIP revenue, received when a SHIP recipient loses his or her house to foreclosure or the City repays funds that assisted an ineligible client. All funds are deposited into the Local Housing Trust Fund and reported as Program Income or Recaptured in the State Fiscal Year they are received as appropriate for Annual Reporting purposes. f. Recipient Selection Criteria: Assistance is provided on a first-come, first-served basis. All recipients will be income eligible and will be selected using the City's Housing Pool guidelines, policies and procedures. · Single-family detached unit · Property must be located within the city limits of Clearwater · Structure shall comply with the definition of an affordable unit · Structure or property poses threat to the public's health, safety and welfare · The amount of mortgages and liens, including SHIP funding assistance shall not exceed 110% of the after loan-to-value ratio · Applicant must make an attempt to obtain the maximum loan financing through private lenders. Proof of applicant's attempts to obtain such 11 financing must be evidenced by either: . Lender approval letter for maximum qualifying loan amount . Lender denial letters from two lending sources . Priority may be given to properties located within the target areas of the City of Clearwater . At a minimum, the homeowner should afford the monthly escrow for property taxes and hazard insurance. g. Sponsor Selection Criteria, if applicable: Include qualification system and selection criteria for applications for Awards to eligible sponsors. Sponsor selection criteria are not applicable. The City of Clearwater processes all requests internally. h. Additional Information: SHIP funds expended may be used as gap financing with private funds and/or match for HOME funds. Temporary relocation benefits may be made available to eligible households according to the City's Relocation Policy. D. Name of the Strateev: OWNER-OCCUPIED REHABILITATION a. Summary of the Strategy: The City of Clearwater, through its affordable housing programs and through its housing pool providers, will provide funds for the rehabilitation of existing owner-occupied single-family residences located within the City limits of Clearwater. The City will award funds for rehabilitation to owner-occupied, income eligible households on a first-come, first-served preference. Funds for assistance may be used by the homeowner for housing rehabilitation such as, but not limited to, the following: . Correct housing code deficiencies · Eliminate incipient housing code violations · Eliminate conditions having a demonstrative blighting influence · Replace housing elements which are nearing end of their useful life · Adapt the residence to meet accessibility needs of a handicapped family member . Alleviate an overcrowded situation In certain cases, the work may be done as emergency repairs. In those cases where the health, safety and welfare of the household are in jeopardy, they shall receive priority. Such things that are considered "emergency repairs" are: · Structural components that show signs of imminent collapse . Inoperable heating systems during the winter months . Water leaks in walls or foundation 12 . Inoperable toilet or hot water heater . Roof leaks causing electrical hazards, ceiling collapse or structural damage . Inoperable exterior doors and/or windows, preventing emergency egress . Exposed bare wires or other imminent fire hazard . Collapsed or inoperable chimney or flue . Falling ceiling . Lead-based paint . ADA modifications of an immediate nature . Other conditions as deemed an emergency by the City Funding will also be available to modify elderly or special needs household homes that need renovations to allow them to remain independent in their homes, and prevent them from having to move into an assisted living type arrangement. Improvements may include such things as: . Wheel chair ramps . Widening of doorways . Lowering of cabinets . Installation of grab-bars . Visual guiding systems for the hearing impaired b. Fiscal Years Covered: 2009-2010, 2010-2011 and 2011-2012 b. Income Categories to be served: This strategy will serve all eligible recipients with incomes at or below 120% of area median income, adjusted for family size as published annually by United States Department of Housing and Urban Development (HUD) and distributed by Florida Housing Finance Corporation. d. Maximum award is noted on the Housing Delivery Goals Charts: e. Terms, Recapture and Default. Include terms of recapture in the event of default (failure to make required payments on a loan secured by a first mortgage which leads to foreclosure and/or loss of property ownership) Low-interest loan, grant or deferred payment first, second or third mortgages will be available to eligible recipients. Deferred payment loans will be offered in the form of zero (0%) percent loan to households who are eighty percent (80%) or less of the Area Median Income (AMI). For moderate-income households, low-interest loans will be available with the repayment period not exceeding thirty (30) years. As stipulated in the City's mortgage documents, if a borrower does not remain as the owner occupant, or if all or any part of the property or an interest therein is rented, sold, transferred or leased, the recipient will be required to payoff the loan in accordance with the terms and conditions specified in the mortgage and note. A grant may be given on an individual case basis where there is an extreme hardship, but not limited to, emergency repairs/retrofit, handicap accessibility modifications and cases of need. Recipients must also abide by the City's loan and/or grant documents, which dictate conditions that will constitute 13 repayment. The City has determined the following terms and provisions for program income versus recaptured funds: · Program Income is a source of SHIP revenue, received from the following sources: bank interest, amortized loan payments and any associated interest and penalties, loan proceeds due to repayment of a loan under the condition of refinancing, death of recipient, sale or transfer of title, property is not longer the client's primary residence, and property that is not maintained to housing standards. · Recaptured Funds is a source of SHIP revenue, received when a SHIP recipient loses his or her house to foreclosure or the City repays funds that assisted an ineligible client. All funds are deposited into the Local Housing Trust Fund and reported as Program Income or Recaptured in the state fiscal year they are received as appropriate for Annual Reporting purposes. f. Recipient Selection Criteria: Assistance will be on a first-come, first-served basis while funds remain available and based on the level of need for each client (or project) and the maximum allowable funds as per the program guidelines. Should funds not be available at any time, a City created "Waiting List" will be utilized and eligible clients will be assisted when funds are available. Priority will be placed on correcting deficiencies that impair the health and safety of the household and for very-low and low-income households and for activities occurring in our Target Areas. Clients that have been assisted with an emergency grant are still eligible to participate in the rehabilitation program. g. Sponsor Selection Criteria, if applicable: Include qualification system and selection criteria for applications for Awards to eligible sponsors. All program sponsors or sub-recipients will be selected using the City's Consolidated Action Plan Application. Eligible sub-recipients or sponsors that provide assistance under this program will be required to contractually commit and comply with all SHIP program requirements. Criteria include: · The not-for-profit corporation must have received a tax-exempt ruling from the Internal Revenue Service (IRS) under section 501c(3) of the Internal Revenue code. · The for-profit corporation must be organized and established under the laws of the State of Florida. · The not-for-profit or for-profit corporation must have financial accountability standards that permit the Economic Development & Housing Department to verify organizational capacity for project implementation. h. Additional Information: ADA modifications and emergency repairs that do not exceed $10,000.00 may be provided as a grant. 14 E. Name ofthe Strateev: FORECLOSURE PREVENTION a. Summary of the Strategy: Funds will be provided to assist households who have been previously assisted with City of Clearwater funds in order to prevent foreclosure. The City will provide funds on a one-time basis to bring a household current with their existing first mortgage, up to a maximum of six payments or the maximum allowable subsidy under this strategy. b. Fiscal Years Covered: 2009-2010, 2010-2011 and 2011-2012 c. Income categories to be served: This strategy will serve all eligible recipients with incomes at or below 120% of area median income, adjusted for family size as published annually by United States Department of Housing and Urban Development (HUD) and distributed by Florida Housing Finance Corporation. d. Maximum award is noted on the Housing Delivery Goals Charts: e. Terms, Recapture and Default. Include terms of recapture in the event of default (failure to make required payments on a loan secured by a first mortgage which leads to foreclosure and/or loss of property ownership). Deferred payment and low-interest second or third mortgages will be available to income eligible previously assisted City of Clearwater clients. Properties must be used for principal/homestead residence of the recipient. Recipients must also abide by the City's loan documents, which dictate conditions that will constitute repayment. The City has determined the following terms and provisions for program income versus recaptured funds: · Program Income is a source of SHIP revenue, received from the following sources: bank interest, amortized loan payments and any associated interest and penalties, loan proceeds due to repayment of a loan under the condition of refinancing, death of recipient, sale or transfer of title, property is not longer the client's primary residence, and property that is not maintained to housing standards. · Recaptured Funds is a source of SHIP revenue, received when a SHIP recipient loses his or her house to foreclosure or the City repays funds that assisted an ineligible client. All funds are deposited into the Local Housing Trust Fund and reported as Program Income or Recaptured in the state fiscal year they are received as appropriate for Annual Reporting purposes. e. Recipient Selection Criteria: Assistance will be provided on a first-come, first- served basis. The recipient must have previously been assisted with City of Clearwater SHIP, Community Development Block Grant and/or HOME Investment Partnership funds. Assistance will only be provided where a valid hardship exists that is the cause for the delinquency on the first mortgage payments. Such examples of hardship include, but are not limited to: Loss of employment, death of a spouse, disability, recent divorce or natural disaster. 15 f. Sponsor Selection Criteria, if applicable: Include qualification system and selection criteria for applications for awards to eligible sponsors. Not applicable. The City of Clearwater processes all requests internally. g. Additional Information: N/ A F. Name of the Strate2V: MULTI-FAMILY HOUSING a. Summary of the Strategy: Funds may be provided as loans to support the acquisition, rehabilitation and or the new construction of multi-family housing, including single- room occupancy, transitional housing, or the housing portion of a mixed-use facility and or mixed-income projects. Funds may be used as a match for U.S. Department of Housing and Urban Development's HOME program and various other programs offered by the federal government and the State of Florida to produce and preserve multifamily housing. b. Fiscal Years Covered: 2009-20 I 0, 2010-2011 and 2011-2012 c. Income Categories to be served: This strategy will serve all eligible recipients with incomes at or below 120% of area median income, adjusted for family size as published annually by United States Department of Housing and Urban Development (HUD) and distributed by Florida Housing Finance Corporation. d. Maximum award is noted on the Housing Delivery Goals Charts: e. Terms, Recapture and Default. Include terms of recapture in the event of default (failure to make required payments on a loan secured by a first mortgage which leads to foreclosure and/or loss of property ownership). Recapture will be in compliance with the SHIP program requirements to ensure affordability. When HOME funds are used with SHIP, the most restrictive rules and regulations will apply. In accordance with the City's policy, the terms of the City's funding for multi-family acquisition, rehabilitation or new construction developments will vary from project to project, depending on the economics of the development. Loans or grants for eligible rental housing constructed, rehabilitated or otherwise assisted under this strategy must be reserved for eligible persons for at least 15 years or the term of the assistance, whichever period is longer. A restrictive covenant will be recorded to ensure that the units remain affordable for the prescribed period of time. The City, eligible sponsor or appointed designee, shall annually monitor and determine tenant eligibility throughout the compliance period. For those developments that the Florida Housing Finance Corporation provides the same monitoring and determination, the City may rely on such monitoring and determination of tenant eligibility. Eligible sponsors that offer rental housing for sale before the end of the compliance period or that have remaining mortgages funded under this strategy must give a right of refusal to the City or eligible nonprofit organizations for purchase at the current market value for continued occupancy 16 of eligible persons. The City has determined the following terms and provisions for program income versus recaptured funds: . Program Income is a source of SHIP revenue, received from the following sources: bank interest, amortized loan payments and any associated interest and penalties, loan proceeds due to repayment of a loan under the condition of refinancing, death of recipient, sale or transfer of title, property is not longer the client's primary residence, and property that is not maintained to housing standards. . Recaptured Funds is a source of SHIP revenue, received when a SHIP recipient loses his or her house to foreclosure or the City repays funds that assisted an ineligible client. All funds are deposited into the Local Housing Trust Fund and reported as Program Income or Recaptured in the state fiscal year they are received as appropriate for Annual Reporting purposes. f. Recipient Selection Criteria: The SHIP assisted units in a rental housing project will be occupied only by households that are eligible as very-low to moderate-income families. Maximum monthly rent limits will be those established annually by the HUD. g. Sponsor Selection Criteria, if applicable: Include qualification system and selection criteria for applications for Awards to eligible sponsors Eligible sponsors will be selected using the City's Consolidated Action Plan Application and may apply for funding while funds are available. Eligible person, sub-recipients or sponsors that provide assistance under this program will be required to contractually commit and comply with all SHIP program requirements. Criteria include: . The not-for-profit corporation must have received a tax-exempt ruling from the Internal Revenue Service (IRS) under section 50Ic(3) of the Internal Revenue code. · The for-profit corporation must be organized and established under the laws of the State of Florida. · The not-for-profit or for-profit corporation must have financial accountability standards that permit the Economic Development & Housing Department to verify organizational capacity for project implementation. h. Additional Information: NI A G. Name of the Strate2V: DISASTER MITIGATION STRATEGY a. Summary of the Strategy: In the case of natural or man-made disasters, priorities will need to be changed to meet emergency conditions. This strategy will only be used if a disaster, or a declaration by the local authorities, State of Florida and lor federal government of a disaster. These funds will be used for the following activities: 17 . Purchase of emergency supplies to waterproof damaged homes . Interim repairs to avoid further damage, such as tree and debris removal . Payment of insurance deductibles for rehabilitation of homes covered under homeowners' insurance policies b. Fiscal Years Covered: 2009-2010, 2010-2011 and 2011-2012 c. Income Categories to be served: This strategy will serve all eligible recipients with incomes at or below 120% of area median income, adjusted for family size as published annually by United States Department of Housing and Urban Development (HUD) and distributed by Florida Housing Finance Corporation. d. Maximum award is noted on the Housing Delivery Goals Charts: e. Terms, Recapture and Default. Include terms of recapture in the event of default (failure to make required payments on a loan secured by a first mortgage which leads to foreclosure and/or loss of property ownership) Assistance provided under this strategy will be in the form of deferred payment or low-interest loan. Recipients must also abide by the City's loan documents, which dictate conditions that constitute repayment. The City has determined the following terms and provisions for program income versus recaptured funds: · Program Income is a source of SHIP revenue, received from the following sources: bank interest, amortized loan payments and any associated interest and penalties, loan proceeds due to repayment of a loan under the condition of refinancing, death of recipient, sale or transfer of title, property is not longer the client's primary residence, and property that is not maintained to housing standards. · Recaptured Funds is a source of SHIP revenue, received when a SHIP recipient loses his or her house to foreclosure or the City repays funds that assisted an ineligible client. All funds are deposited into the Local Housing Trust Fund and reported as Program Income or Recaptured in the state fiscal year they are received as appropriate for Annual Reporting purposes. f. Recipient Selection Criteria: Applicants must be income eligible, and will be served on a first-come, first-served basis, pending funds availability. The property must be located within the city limits of Clearwater. Applicants must be current on mortgages secured by the property, property taxes, and homeowners insurance. g. Sponsor Selection Criteria, if applicable: Include qualification system and selection criteria for applications for Awards to eligible sponsors Eligible Sponsors will be selected using the City's Consolidated Plan Application, or any other methodes) that the City may develop to expedite the Selection of Eligible Sponsors during a disaster. 18 h. Additional Information: This strategy will be implemented only in the event of a natural or man-made disaster declaration using any SHIP funds that have not been encumbered. The City will use the Florida Housing Finance Corporation's DISASTER SELF-CERTIFICATION OF INCOME FORM, attached as "Exhibit I". III. LHAP INCENTIVE STRATEGIES In addition to Strategy A and Strategy B listed below, list all incentives as provided in 420.9076(4) FS. A. Name of the Strategy: Expedited Permitting Permits as defined in s. 163.3164(7) and (8) for affordable housing projects are expedited to a greater degree than other projects. The Planning expedites the review process of any site plan, land use amendment, rezoning, or annexation application for an affordable housing project within the City of Clearwater. Some affordable housing projects (rehabilitation or new construction), are approved administratively, otherwise the project goes to the immediate next session of the Community Development Board (CDB). a. Established policy and procedures: Expedited Permitting For Building Permit Applications, the City has a "Request for Expedited Permit Processing for Affordable Housing Activity" available through the Economic Development and Housing Department. This form allows the application to be expedited through the review process. B. Name of the Strategy: Ongoing Review Process An ongoing process for review of local policies, ordinances, regulations and plan provisions that increase the cost of housing prior to their adoption. The City has a process in place by which it considers, before adoption, policies, procedures, ordinances, regulations, or plan provisions that increase the cost of housing. a. Established policy and procedures: Provide Description The Senior Executive Team of the City of Clearwater meets every two weeks to discuss and review upcoming agenda items on the City Council's meeting schedule. As part of this meeting, the City Clerk reviews with each Department Director proposed items to the agenda, which includes policies, procedures, ordinances, resolutions and plan provisions for action by the City Council. Any actions that have the potential to affect the cost of housing are addressed as part of this process. Any determinations made by the Economic Development and Housing Department and the affected Department will be included as part of the agenda summary to the City Council on that particular item. The City Council agenda summary and all supporting materials are available on the city's website at www.myclearwater.com 19 c. housing. Name of the Strategy: The allowance of flexibility densities for affordable The City encourages flexible densities for affordable housing developments in both the Future Land Use Element and the Housing Element of the City's Comprehensive Plan. a. Established policy and procedures: Provide Description: The following policy in the Future Land Use Element allows for flexible densities: "Policy A.2.2.7 - The city will provide for density bonuses for affordable housing developments that demonstrate that a minimum of 15% of the total units are reserved as affordable housing units. Such bonuses shall not exceed 50% of the density permitted by the Future Land Use Map and shall not include properties located in the Coastal Strom Area. The density bonus shall be established by ordinance in the Community Development Code". The same policy applies to Housing Element as policy C.9.1: Policy C.l.9.1 - The City will provide density bonuses for affordable housing developments that demonstrate that a minimum of 15% of the total units are reserved as affordable housing units Such bonuses shall not exceed 50% of the density permitted by the Future Land Use Map and shall not include properties located in the Coastal Storm Area. The density bonus shall be established by ordinance in the Community Development Code." The City grants flexibility in densities to developers through the City's Community Development Code, which establishes flexibility criteria for specific uses requiring additional development review. Such uses fall into two categories: flexible standard development and flexible development. D. Name of the Strategy: The reduction of parking setback requirements for affordable housing The City encourages the reduction of parking and setback requirements for affordable housing in the Housing Element of the City's Comprehensive Plan. b. Established Policy and Procedures: Provide Description The following policy in the Housing Element supports the reduction of parking and setback requirements for affordable housing. "Policy C.l.9.2 - Allow flexibility with regard to off-street parking to accommodate density bonuses associated with affordable housing developments provided the project design does not detract from the established or emerging character of immediate vicinity." "Policy C.l.9.3 - Allow flexibility with regard to off-street parking for projects containing 20 affordable housing units located within 1,000 feet of a transit stop." The City currently allows flexibility in parking and setback requirements for affordable housing though the City's Community Development Code, which establishes flexibility criteria for specific uses requiring additional development review. E. Name of the Strategy: The allowance of flexible lot configurations, including zero-lot-line configuration for affordable housing. The City currently allows for site plan flexibility through the development review process, as supported by the City's Community Development Code, which establishes flexibility criteria for specific uses requiring additional development review. Such criteria may allow for more flexible site plan configurations, but may also require an improved site plan to document how the flexibility will result in better design and lor appearance. For example, the flexibility criteria tied to residential infill projects within the High Density Residential (HDR") District include: a. Established policy and procedures: Provide Description "Article 2, Section 2-504 (F .6) The design of the proposed residential infill project creates a form and function which enhances the community character of the immediate vicinity of the parcel proposed for development and the City of Clearwater as a whole; (F. 7) Flexibility in regard to lot width, required setbacks, height and off-street parking are justified by the benefits to community character and the immediate vicinity of the parcel proposed for development and the City of Clearwater as a whole. F. Name of the Strategy: The preparation of a printed inventory of locally- owned public lands suitable for affordable housing. The City maintains an inventory of inventory of locally-owned public lands suitable for affordable housing. a. Established policy and procedures: Provide Description The City of Clearwater on February 21,2008 adopted Resolution 08-01, which establishes the affordable housing inventory list per statutory requirements. A copy of the inventory list may be obtained by contacting city staff in Economic Development and Housing Department. The list will be posted on the City's web page. G. Name of the Strategy: The support of development near transportation hubs, and major employment centers and mixed-used developments. The Future Land Use Element of the of the City's Comprehensive Plan supports the location of residential uses within "mass transit and neighborhood-serving land uses" and near transit lines. 21 a. Established policy and procedures: Provide Description Policy A.2.2.2 - Residential land uses shall be appropriately located on local and minor collector streets; if appropriately buffered; they may be located on major collector and arterial streets. Residential land uses shall be sited on well-drained soils, in proximity to parks, schools, mass transit and other neighborhood-serving land uses." Policy A.6.8.7 - Create mixed-use, higher density and livable communities through design and layout, near existing transit lines as well as proposed TBARTA lines and stations. Also support walkability concepts near projected TBAR T A stations. In addition, the Housing Element of the Comprehensive Plan states: "Policy C.l.4.2 - Assisted housing should be located in close proximity to employment centers, mass transit services, parks, and commercial centers." IV. EXHffiITS: A. Administrative Budget for each fiscal year covered in the Plan. Exhibit A. B. Timeline for Encumbrance and Expenditure: Chapter 67-37.005(6)(d) and (f) F.A.C. A separate time line for each fiscal year covered in this plan is attached as Exhibit R. Program funds will be encumbered by June 30 one year following the end of the applicable state fiscal year. Program funds will be fully expended within 24 months of the end of the applicable State fiscal year. C. Housing Delivery Goals Chart (HDGC) For Each Fiscal Year Covered in the Plan: Completed HDGC for each fiscal year is attached as Exhibit C. D. Certification Page: . Signed Certification is attached as Exhibit D. E. Adopting Resolution: Original signed, dated, witnessed or attested adopting resolution is attached as Exhibit E. F. Program Information Sheet: Completed program information sheet is attached as Exhibit F. G. Ordinance: N/A If changed from the original ordinance, a copy is attached as Exhibit G. H. Interlocal Agreement: N/ A A copy of the Interlocal Agreement if applicable is attached as Exhibit H. 22 I. Disaster Self Certification Form Exhibit I. 23 EXHIBIT "A" ADMIN BUDGET LHAP Template 6/06 Exhibit A Admin Bud et 67-37.005 FAC. Fiscal Year 2009-2010 Salaries and Benefits Office Supplies and Equipment Travel Per diem Workshops, etc dvertising $ 88,384 $17,022 $ 2,044 $ 119 $ $ 107,569.00 Fiscal Year 2010-2011 Salaries and Benefits Office Supplies and Equipment Travel Per diem Workshops, etc Advertising $ 88,384 $ 17,022 $ 2,044 $ 119 $ 107,569.00 Fiscal Year 2011-2012 Salaries and Benefits Office Supplies and Equipment Travel Per diem Workshops, etc ~dvertising $ 88,384 $ 17,022 $ 2,044 $ 119 $ 107,569.00 Based on a distribution of Projected Program Income $ 975,692.00 $ 200,000.00 24