LOCAL HOUSING ASSISTANCE PLAN
HOUSING FINANCE AUTHORITY, PINELLAS COUNTY, FLORIDA
Local Housing Assistance Plan
1. Name of Participating Jurisdiction: Clearwater, Florida
2. Contact Person: Michael Holmes
Title: Housing Manager
Address: P.O. Box 4748, Clearwater, FL 33758
Telephone: (727) 562-4030
Fax: (727) 562-4037
E-mail: michae1.holmesl@myclearwater.com
3. Fiscal Years Covered by Plan:
2006-2007;2007-2008;2008-2009
(with fiscal year beginning October I and ending on September 30)
4. Narrative describing advertising plan (Rules, Section 3(6)(a)):
In accordance with the referenced Rule, upon approval of this Plan by the Housing Finance
Authority, the City of Clearwater (City) will advertise the availability of the Plan for public viewing
in a newspaper of general circulation. This advertisement will also contain a Notice of Funding
Availability and information about the application process for these funds. In addition, the
advertisement will include the amount of distribution projected to be received for the plan year; the
beginning and end date of the application period and the name of the contact person and other
pertinent information. This advertisement will be published at least 30 days before the beginning of
the application period. Applications for the development of housing units will be considered on an
on-going basis. Advertising will also be displayed on the City's Housing website, through press
releases, and on the City's community access television station.
5. Narrative describing involvement of other public and private sector entities and partners:
The City has established local housing partnerships and resources to increase the affordability of
housing through down payment and closing costs assistance, low interest rate mortgage loans, grants
and other direct subsidies that make market rate housing affordable to lower income households.
Special interest rates, product pricing structures, special programs and other incentives offered by
lenders and real estate professional enhance affordability.
All City housing programs encourage building active partnerships between government, lenders,
builders and developers. Involvement is continually solicited through public hearings and forums,
special housing committees and work groups, and consultations with public, quasi-public, and
nonprofit agencies. The City has ongoing funding relationships with area non-profits and housing
developers through administration of its other grant funds.
6. Narrative describing qualified system and selection criteria for applications for awards to
eligible sponsors:
Eligible Sponsors will be selected using the City's Consolidated Action Plan Application process.
Under this process, the city will review all applications for minimum eligibility. The applications are
then ranked bv the city's Technical Review Committee based upon a ranking system that relates to
the application provided by the sponsor.
Eligible Sponsors, by means of the City of Clearwater Consolidated Action Plan process, are
considered by application and evaluated and rated by either staff or a review committee, depending
on the proposed activity. Such things that are evaluated include: the economic feasibility of a
project, timeliness of completion, past experience, commitment to expand affordable housing
opportunities to very-low, low and moderate income households, to eliminate slum and blighted
areas, to preserve the housing stock, to increase property values and to enhance community image in
a targeted area for housing developers.
Eligible Sponsors must prepare an application which contains such things as but not limited to:
organizational capacity, project proposal, pro-forma, project budget, financial analysis, site
information, zoning information, proof of clear title, and proof of environmental assessment. The
designated participant must plan to complete the project within eighteen (18) months. Larger,
longer-term projects may be proposed outside of the loan pool as funding is available. Incentives to
designated participants will be granted to those organizations to facilitate local housing assistance
strategies.
7. Narrative describing criteria for selection of eligible persons:
Homeowner applications (for both owner-occupied rehabilitation and homebuyer programs) will be
qualified on a first-come, first-served basis by administering agencies. Applicants must be income-
eligible and occupy the property as a primary residence. Tenants applying for vacant program
assisted rental housing units will be qualified on a frrst-come, first-served basis by housing sponsors.
Tenants must be income-eligible and must occupy the rental unit as a primary residence. What
constitutes income-eligibility will be defined in each specific program; however, no homeowner or
tenant will be assisted whose gross annual income exceeds 120% of median family income as
defined in Ordinance 06-28. Income eligibility will be determined by the same HUD established
methodology currently utilized in other City housing programs. The current methodology is annual
income as defined in 24 CFR Part 5.
8. Narrative describing the participating jurisdiction's maximum award schedule or system of
amounts and how it is consistent with the intent and budget of this local housing assistance
plan:
The maximum award schedule under this plan will be based on the amount of subsidy required by a
project to produce units that can be sold or rented for no more than the maximum purchase price or
120% maximum rent allowed under the State of Florida SHIP program. This methodology is
consistent with the intent and budget of this local housing assistance plan in that it relates maximum
awards to the local price of housing and local rents; it further ensures that housing produced under
this plan will be consistent with "community housing" as defined in the Ordinance.
9. Narrative describing the expenditure process (attach timeline for each fiscal year covered
by this plan as Exhibit A):
It is not anticipated that any expenditures will be made under this Plan until April, 2007, which is in
the third quarter of the 2006-2007 Fiscal Year. This Plan must be filed with the HFA by January 15,
2007. After approval, the Rules require an advertising and application period. Exhibit A shows the
anticipated expenditure pattern. If it is determined at the required period reviews, however, that
expenditures under a particular strategy are not being made as anticipated, the City may proceed
with another strategy shown on Exhibits A and B without need for amendment of this Plan.
10. Narrative regarding provision for the application of program income and recaptured funds,
evidencing compliance with the provision of Ordinance 06-28, Section 3(5):
The City will establish a local housing assistance fund with a qualified depository for all monies the
city will receive from its share of the Program funds, recaptured program funds, program income,
and other monies received or budgeted by the city for the local housing assistance plan. These funds
will be placed in a separate account.
The exception shall be any program income resulting from proceeds used to match the Federal
HOME program; such program income shall be deposited to the HOME program fund, as required
by Federal law. All funds distributed out of the local housing assistance fund must be leveraged on a
2:1 basis. The 80% non-forgiven loan requirement and 15% for special needs/extremely low income
requirement do not apply to program income.
Program income is described as proceeds from interest earned on, or investment in the Housing
Trust Fund proceeds and other funds deposited in the local housing assistance fund, proceeds from
repayments, recycled funds, and all other income derived from the use of Housing Trust proceeds.
Recaptured funds are described as those funds that are recouped by the city from eligible persons or
eligible sponsors who default on the terms of a grant award, or loan award, or as corrective action for
failure to comply with conditions of a local housing assistance plan.
11. Narrative regarding equity sharing provisions:
Loans or grants for houses constructed, rehabilitated, or otherwise assisted through this Plan shall be
subject to equity sharing and recapture requirements deemed appropriate at the time the loan is
made. Minimum requirements, however, as required by the Rules are: 90% recapture within two
years from date of purchase; 50% recapture after two years or more from date of purchase. The
intent of programs administered under this Plan is to allow property owners to realize a portion of
the equity if a property is occupied or used for its intended purpose for a specific period of time, but
also to prevent property owners from realizing inordinate gains. The City also intends to perpetuate
affordability of housing units when appropriate. These goals could be realized through equity
sharing provisions, through resale restrictions, or through other types of agreements that fulfill these
intents, but no event shall the requirements be less than those mandated by the Rules of the Housing
Trust Fund.
12. Narrative regarding process followed to assess and prioritize housing needs:
The City of Clearwater has identified priorities for assisting households. The first priority is to
provide decent, adequate and affordable housing in safe and desirable environments for
homeowners, homebuyers and renters. Second priority is to provide housing and supportive services
housing programs of the City. Studies are undertaken for the Housing Element of the City's
Comprehensive Plan and for the Federal Consolidated Planning process. In addition to formal
studies, stakeholder input is sought through public meetings and forums.
13. Strategy 1 - Produce new rental and owner housing
Brief narrative regarding activities to be carried out under this strategy, including (a) the proposed
sales orice of owner housing produced; (b) what resources through oartnershio will be combined to
reduce the cost of housing; (c) any support services provided by the participating jurisdiction to the
residents of the housing; (d) what initiatives will be used to conduct outreach and to attract
applicants for assistance; and (e) a description of how this strategy furthers the housing element,
goals, policies, and objectives of the participating jurisdiction's comprehensive plan:
Both rental and owner housing will be produced through acquisition of real property for future
production and/or construction of units. Although this strategy appears in FYs 1 and 3 of the
attached Exhibit B Summary Chart, this strategy may be carried out at any time during the three-year
period covered by this Plan without amendment to this Plan. The estimated number of households
proposed to be served by income as shown on Exhibit B may be adjusted at any time without
amendment to this Plan. Additional production activities may be added as needs and market
conditions change without amendment to this Plan. (a) The proposed sales price of owner housing
produced may not exceed the purchase price limits under the State of Florida SHIP program in effect
at the time the home is purchased. The current SHIP purchase price limit for the City is $180,000.
The City anticipates that funding limits will be as set forth on the Exhibit B summary charts, but
may adjust such funding limits not to exceed the SHIP purchase price limits without amendment of
this Plan. (b) The City will continue to develop partnerships with non-profits and developers for
construction of units, as is done in all other housing programs it currently carries out. The cost of
construction can be reduced through utilizing the incentives provided for Affordable Housing
Developments. Loans to affordable housing builders, and to the eventual homeowner, will provide a
below market supplement to private market financing to further reduce costs. (c) Support services
may be provided by the participating jurisdiction to the residents of housing. Necessity for support
services, however, will be determined on a project-by-project basis. If a proposed project is intended
to serve a population that traditionally needs specific support services to sustain housing, the
proposal must clearly demonstrate how those support services will be delivered and maintained by
the developer of the housing project. (d) The City will continue to develop relationships with non-
profits and other agencies that assist applicants in finding suitable rental housing and which offer
services that prepare applicants for homeownership. The City also widely advertises its housing
programs through print media, public access television, and website information. Developers of
housing are required to submit an Affirmative Marketing Plan as part of the application process.
Homeowner and rental applicants will be qualified on a first-come, first served basis by the
developer and/or administering agencies. Applicants must meet the income guidelines applicable to
the strategy and must occupy the purchased or rented property as a primary residence. (e) This
strategy furthers the Housing Element of the comprehensive plan that show deficits in both rental
and owner housing for extremely low to moderate income households through the year 2010.
14. Strategy 2 - Preserve existing rental and owner housing
Brief narrative regarding activities to be carried out under this strategy, including (a) the proposed
sales price of any rehabilitated properties to be sold; (b) proposed caps on the value of any owner
occupied housing to be rehabilitated; (c) what resources through partnership will be combined to
reduce the cost of housing; (d) any support services provided by the participating jurisdiction to the
residents of the housing; (e) what initiatives will be used to conduct outreach and to attract
applicants for assistance; and (f) a description of how this strategy furthers the housing element,
goals, policies, and objectives of the participating jurisdiction's comprehensive plan:
Both rental and owner housing may be preserved through acquisition of existing units and
rehabilitation of units. Although this strategy appears primarily as rental activity in FY2 of the
attached Exhibit B Summary Chart, this strategy may be carried out for both owner and rental
housing at any time during the three-year period covered by this Plan without revision of this Plan.
The estimated number of households proposed to be served by income as shown on Exhibit B may
be adjusted at any time without amendment to this Plan. Additional preservation activities may be
added as needs and market conditions change without amendment to this Plan. (a) The proposed
sales price of any rehabilitated properties to be sold under this strategy may not exceed the purchase
price limits under the State of Florida SHIP program in effect at the time the home is sold. The
current SHIP purchase price limit is $180,000. The City anticipates that funding limits will be as set
forth on the Exhibit B summary charts, but may adjust such funding limits, not to exceed the SHIP
purchase price limits, without amendment of this Plan. (b) The value of owner occupied housing to
be rehabilitated may not exceed the purchase price limits under the State of Florida SHIP program in
effect at the time the home is sold. The current SHIP purchase price limit is $180,000. Value will
be determined using the same methodology utilized in other Pinellas County housing programs at the
time of rehabilitation. Currently, the City housing programs use "Market value" as documented by
the Pinellas County Property Appraiser's Office. (c) The City will continue to develop partnerships
with non-profits and developers for acquisition and rehabilitation of units, as is done in all other
housing programs it currently carries out. The cost of substantial rehabilitation may be reduced
through the use of loans which provide a below market supplement to private market financing. (d)
Support services may not be provided by the participating jurisdiction to the residents of housing.
Necessity for support services, however, will be determined on a project-by-project basis. If a
proposed project is intended to serve a population that traditionally needs specific support services to
sustain housing, the proposal must clearly demonstrate how those support services will be delivered
and maintained by the developer of the project. (e) The City will continue to develop relationships
with non-profits and other agencies that assist applicants in finding suitable rental housing and which
offer services that prepare applicants for homeownership. The City also widely advertises its
housing programs through print media, public access television, and website information.
Developers of housing undertaking substantial rehabilitation or conversion of non-residential
properties to rental housing are required to submit an Affirmative Marketing Plan as part of the
application process. Homeowner and rental applicants will be qualified on a first-come, first served
basis by the developer and/or administering agencies. Applicants must meet the income guidelines
applicable to the strategy and must occupy the purchased or rented property as a primary residence.
(f) This strategy furthers the Housing Element of the comprehensive plan in that the City's
Comprehensive Plan. In addition, preservation may include acquisition of existing units by non-
profits or a community land trust to preserve these units as affordable housing by taking them out of
the market rate housing pool. These units will then help fill the deficit of affordable housing units
described in Strategy 1.
15. Strategy 3 - Promote Housing Opportunities
Brief narrative regarding activities to be carried out under this strategy, including (a) proposed caps
on the value of homes to be purchased under this strategy; (b) what resources through partnership
will be combined to reduce the cost of housing; (c) any support services provided by the participating
jurisdiction to the residents of the housing; (d) what initiatives will be used to conduct outreach and
to attract applicants for assistance; and (e) a description of how this strategy furthers the housing
element, goals, policies, and objectives of the participating jurisdiction's comprehensive plan:
Through this strategy, down payment and closing cost assistance will be provided to income-
qualified households. This strategy may be carried out at any time during the three-year period
covered by this Plan. While this strategy is primarily intended to assist with the promotion of
homeownership opportunities, it may also be utilized to assist with the promotion of rental
opportunities through rental assistance type activities without revision of this Plan. The estimated
number of households proposed to be served by income as shown on Exhibit B may be adjusted at
any time without amendment to this Plan. Additional activities to promote housing opportunities
may be added as needs and market conditions change without amendment to this Plan. (a) The
purchase price of homes purchased under this strategy may not exceed the purchase price limits
under the State of Florida SHIP program in effect at the time the home is sold. The current SHIP
purchase orice limit is $180,000. The City anticipates that funding limits will be as set forth on the
Exhibit B summary charts, but may adjust such funding limits, not to exceed the SHIP purchase
price limits, without amendment of this Plan. The monthly rent for tenants assisted under this
strategy may not exceed the 120% rent limits under the State of Florida SHIP program in effect at
the time the unit is rented. (b) The City will continue to develop partnerships with non-profits which
prepare applicants for homeownership and with lenders that make primary loans, as is currently
taking place in other promotion of housing opportunity programs done through the City.
Homebuyer education may reduce the cost of housing by helping the homeowner obtain better rates
on private mortgage insurance (if required) and the services required for a real estate transaction.
Partnerships with lender may reduce the price of housing by allowing homebuyers to obtain more
favorable interest rates on primary loans. (c) Support services will not be provided by the
participating jurisdiction to the residents of housing. Necessity for support services, however, will
be determined on a case-by-case basis by the agencies administering the assistance programs. If
needed, support services for credit counseling, pre-purchase, post-purchase, and foreclosure
prevention counseling will be provided through these non-profit agencies. (d) The City will
continue to develop relationships with non-profits and other agencies which offer services that
prepare applicants for homeownership or which assist applicants in need of rental housing. The City
also widely advertises its housing programs through print media, public access television, and
web site information. Developers of housing are required to submit an Affirmative Marketing Plan
as part of the application process. Applicants will be qualified on a first-come, first served basis by
eligible sponsors and administering agencies. Applicants must meet the income guidelines
applicable to the strategy and must occupy the property as a primary residence. (e) This strategy
furthers the Housing Element of the comprehensive plan in that the City Comprehensive Plan
projects deficits in housing for extremely low to moderate-income households through the year
2010. The subsidy provided to a household through this strategy can close the affordability gap and
ease the deficit.
16. Strategy 4 - Provide Housing Services
Brief narrative regarding activities to be carried out under this strategy, including: (a) what resources
through partnership will be combined to reduce the cost of housing; (b) any support services
provided by the participating jurisdiction to the residents of the housing; (c) what initiatives will be
used to conduct outreach and to attract applicants for assistance; and (d) a description of how this
strategy furthers the housing element, goals, policies, and objectives of the participating jurisdiction's
comprehensive plan:
Through this strategy, available support services may include, but not be limited to, fair housing
services, housing placement services, pre- and post-purchase homeownership counseling, credit
counseling, and foreclosure prevention counseling. The estimated number of households proposed to
be served by income as shown on Exhibit B may be adjusted at any time without amendment to this
Plan. Additional housing services activities may be added as needs and market conditions change
without amendment to this Plan. (a) The City will continue to develop partnerships with non-profits
which prepare applicants for homeownership and with lenders that make primary loans, as is
currently taking place in other promotion of housing opportunity programs done through the City.
(b) The support services available under this strategy will be provided through non-profit and other
qualified agencies. (c) The City will continue to develop relationships with non-profits and other
agencies that offer the services to be carried out under this strategy. The City also widely advertises
its housing programs through print media, public access television, and website information. (d)
This strategy furthers the Housing Element of the comprehensive plan in that the City
Comprehensive Plan in that it assists owners and renters caught in the housing deficit in finding and
sustaininj:t decent and safe housing.
17. Narrative explaining how the activities carried out under these Strategies will meet the
requirements of Ordinance 06-28, Section 3(4 )(a) - Leveraging 2: 1
The City will meet this requirement on a program year allocation basis and not on an individual
project basis. The City will track its portion of the Housing Trust Funds used in each project for
leveraging. Leveraging may come from, but not be limited to, the following sources: loans made to
projects by other lenders, grants made to projects, donated land, developer and sponsor owner
equity, and donated materials, supplies, labor, and services.
18. Narrative explaining how the activities carried out under these Strategies will meet the
requirements of Ordinance 06-28, Section 3(4)(b) - 80% non-forgiven loans
The City will meet this requirement through using both amortizing loans and deferred loans. No
loans will be forgiven. The type of loan made will be determined on a project by project basis, as
the debt service capability of each project is underwritten.
19. Narrative explaining how the activities carried out under these Strategies will meet the
requirements of Ordinance 06-28, Section 3(4)(c) -15% special needs or <30% MFI
The City will meet this requirement either by producing or preserving units specifically for this
targeted population or by working with the other Participating Jurisdictions to do so on a
collaborative basis. Additional activities to utilize this 15% set-aside may be carried out under one
of the four strategies as needs and market conditions change without amendment to this Plan.
20. Narrative explaining how rental developments assisted under this plan will be monitored
annually and how tenant eligibility shall be determined throughout the compliance period:
For rental housing assisted under this Plan, the City, or its agent, shall annually monitor and
determine tenant eligibility and subsidy amounts using the HOD established methodology utilized in
other City housing programs. The current methodology is annual income as defined in 24 CFR Part
5. However, to the extent another governmental entity provides the same monitoring and
determination, the City may rely on such monitoring and determination of tenant eligibility. Tenant
eligibility will be monitored at least annually for thirty (30) years, or the term of assistance,
whichever period is longer.
Loans for rental housing development made under this Plan shall be secured by a mortgage recorded
against the real property and a non-recourse promissory note. The continued use of the real property
for affordable rental housing shall be ensured by recording of a Land Use Restriction Agreement
(LURA) running with the land. Developers and sponsors that offer rental housing for sale prior to
the expiration of a LURA, must ensure continued occupancy by eligible persons for the remainder of
the affordability period required under the LURA.
Checklist of required documents (will satisfy the table of contents or checklist
requirement):
1 This local Housing Assistance Plan
2 Exhibit A - Timeline for each fiscal year covered by this plan
3 Exhibit B - local Housing Assistance Plan Summary Chart for each fiscal year
covered by this plan
4 Exhibit C - Copy of policy of participating jurisdiction regarding sub-prime loans
[Ordinance Section 3( 1 )(b)]
5 Exhibit D - Copy of policy of participating jurisdiction regarding subordination of
loans [Ordinance Section 3(1 )(c)]
6 Exhibit E - Copy of sample land Use Restriction agreement [Ordinance Section
3(4 )(f)]
7 Exhibit F - Certifications and Required Statements with original signature
8 Exhibit G - Adopting Resolution
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Exhibit C
CITY OF CLEARWATER
HOUSING POLICY
Sub-Prime Lendine Policy
The City will not assist Borrowers who are being charged more than combined 2% for
loan discount origination fees by the first mortgage provider. The city will also not assist
Borrowers who are obtaining adjustable rate first mortgages, mortgages financed by the
owner/seller, or mortgages with above-market interest rates or excessive fees.
In addition, the city will not assist Barrowers with loans that require high up-front and out
of pocket fees, prepayment penalties, loans for more than the property value, unfavorable
balloon payments, loans that require credit life or credit disability insurance,
unreasonable penalties for late fees, having a mandatory arbitration clause (give of right
to sue in court), negative amortizing loans, or open ended mortgages.
Exhibit D
City of Clearwater
Loan Subordination Policy
Revised - November 2005
In general, the City of Clearwater does not subordinate mortgages made using CDBG, HOME
and SHIP funds. However, under the following circumstances, the City will consider taking a
subordinate position:
1. The original borrower continues to own and occupy the home as its primary
residence, and
2. The original borrower is experiencing financial hardship which would be benefited by
securing a lower interest rate on his or her first mortgage accompanied by lower
monthly payments, and
3. The new monthly payment includes escrows for taxes, and insurance, and represents
between 30% - 35% ofa borrower's gross monthly income.
4. The new first mortgage interest rate is at least two percentage points below the
original first mortgage, and/or as a result of the monthly savings, the borrower should
be able to recoup (break-even) the loan closing costs within 3-5 years.
5. The new loan's origination fee, points, commitment fees, buy down fees and other
lender charges do not exceed 2% of the loan amount, and
6. The new first mortgage is a permanently fixed rate mortgage with no balloon
payments and no pre-payment penalty. Terms may be made for as few as ten years,
and may go up to thirty years as applicable based on the original loan balance and the
term remaining on the original note.
7. The borrower does not receive any cash out for any purpose, including but not limited
to, home improvement loans, bill consolidation loans, lines of credit, future advances,
personal loans, medical collections, other mortgages or encumbrances or liens.
8. The borrower must have sufficient equity in the home so as not to displace the City
beyond a 95% loan to value ratio.
9. If the borrower has a payment type loan, the account must be current.
10. Property Taxes must not be delinquent.
11. Borrower must submit proof of homeowner's insurance.
Borrowers interested in seeking approval from the City's Housing Division to subordinate a
first mortgage must:
1. Write the City of Clearwater's Housing Division requesting the City subordinate to their
lender and authorize the lender to receive information regarding their loan for the
purposes of the refinance.
2. The Lender must provide the details of the loan being requested such as a copy of the
truth in lending statement, a copy of the appraisal and a copy of the projected settlement
costs.
Last Updated: November 2005
3. Provide additional information as need to establish that the loan is strictly for a reduction
in payment/interest rate and that the lender is not charging rates or providing terms that
will in some way fall under the category of predatory lending practices.
4. The City must review a copy of the HUD-l Closing Statement prior to release of the
City's executed Subordination Agreement. If a title company faxes the HUD-l to the
City when completed, and supplies their FedEx (or any overnight carrier) account
number, the City will overnight, or fax, if acceptable, the executed Subordination
Agreement, if in agreement with the figures on the HUD-l.
5. All request for subordination must be made at least ten (10) days prior to closing.
This Loan Subordination Policy may be amended from time to time. For the most up to date
version please contact the City of Clearwater - Economic Development & Housing Department
at 727.562.4030.
I have read the above City of Clearwater - Subordination Policy and understand the terms and
conditions of the policy.
Borrower
Date
Date
Borrower
Last Updated: November 2005
EXHIBIT E
DECLARATION OF RESTRICTIVE COVENANTS
CITY OF CLEARWATER
Community Land Trust
THIS DECLARATION, made this _ day of
by
, her
successors, assigns and transferees of the project described below, whose mailing address is
and hereinafter called ("Home
Buyer") and the City of Clearwater, Florida, unit of local government organized and existing
under the laws of the State of Florida hereinafter called ("City").
WHEREAS, the Home Buyer shall purchase certain real property described herein and
agrees to the City that the real property executed Mortgage and Note shall contain the restrictive
covenants set forth herein.
WHEREAS, the Home Buyer agrees that the restrictive covenants shall remain in full
force and effect against the real property until the end of the affordability period.
This Agreement shall be properly filed and recorded by City in the Official Public
Records of Pinellas. County, Florida and shall constitute a restriction upon the use of the property
subject to and in accordance with the terms contained herein.
IN CONSIDERATION of funds form the City through the Community Land Trust will
provide to the Home Buyer a loan to finance down payment ant closing cost assistance to
purchase real property in the City of Clearwater, Pinellas County, Florida as described:
Legal Description
- 1 -
This acquisition, or a portion thereof, which has the address of
and which is described in the mortgage
between the City and the Home Buyer. The Home Buyer acknowledges that this agreement is
necessary to comply with the affordability requirements of the Community Land Trust, from
which funds were obtained to finance such loan, covenants and will comply with the following:
The Home Buyer will maintain the affordability of the real property for the affordability
period of twenty (20) years beginning on the date of the mortgage. Should the Home Buyer sell
the property to any willing buyer at whatever price the market will bear, the sale will trigger
repayment of the Community Land Trust assistance.
The City will use the recapture provision for repayment ofthe loan should the home buyer
not abide with the affordability period. The repayment amount due and payable at sale, transfer
of ownership, or when the property is not being used as the original homebuyer's principal
residence shall be the balance due at the time ofthe actions listed above plus any interest,
penalties, or any payments due thereof.
The Home Buyer shall maintain that the property will remain in standard condition and
keep the fee simple title to the property. The Community Land Trust assisted units must meet all
applicable State and local housing quality standards, code requirements and accessibility
requirements at 24 CFR Part 8, which implements Section 504 of the Rehabilitation Act of 1973
and covered multifamily dwellings as defined at 24 CFR 100.20, and must also meet the design
and renovation requirements at 24 CFR 100.205, which implement the Fair Housing Act.
Construction of house must meet the Model Energy Code.
The Home Buyer shall permit the City or its designee to inspect all records pertaining to
Community Land Trust assisted units upon reasonable notice and within normal working hours
and shall submit to the City such documentation as required by the City to document compliance
with this Agreement and Community Land Trust Program rules.
-2-
This Agreement and the covenants contained herein shall run with the land and shall
bind, and the benefits shall inure to, respectively, the Homebuyer her successors and assigns and
all subsequent owners of the project or any interest therein, and to the City for the Period of
Affordability set forth in this Agreement.
The benefits of this Agreement shall inure to, and may be enforced by the City for the
Period of Affordability, whether or not the City shall continue to be the holder of the Mortgage,
whether or not the project loan may be paid in full, and whether or not any bonds issued for the
purpose of providing funds for the project are outstanding.
The Home buyer maintains that they will not execute any other agreement with provisions
contradictory to, or in opposition to, these provisions hereof, and that, in any event, the
requirements of this agreement are paramount and controlling as to the rights and obligations
herein set forth and supercede any other requirements in conflict herewith.
This agreement and the covenants contained herein shall run with the land and shall bind,
and the benefits shall inure to, respectively, the Home Buyer and its successors and assigns and
all subsequent owners of the property or any interest therein, and to the city for the period of
affordability set forth in this agreement.
IN WITNESS WHEREOF, the Home Buyer has executed this agreement the day and year first
above written:
BY
- 3-
HOUSING FINANCE AUTHORITY, PINELLAS COUNTY, FLORIDA
Local Housing Assistance Plan - Exhibit F
Certifications and Required Statements:
In implementing the strategies and activities outlined in this plan, housing for which a household
devotes more than 30 percent 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
percent benchmark or, in the case of rental housing, does not exceed those rental limits adjusted
for bedroom size established by the Florida Housing Finance Corporation.
This participating jurisdiction has a plan to advertise the availability of the housing assistance plan
at least 30 days before the beginning of the application period in a newspaper of general
circulation.
This participating jurisdiction has developed a qualification system and selection criteria for
applications for awards to eligible sponsors, adopted criteria for selection of eligible persons, and
adopted a maximum award schedule or system of amounts consistent with the intent and budget
of its local housing assistance plan.
This participating jurisdiction has developed a time line for the expenditure of Program distribution
funds in sufficient detail to allow for a comparison of such plan with actual expenditures.
This participating jurisdiction has a provision for the application of program income and
recaptured funds from loan repayments, reimbursements or other repayments, and interest
earnings on the local housing distribution funds.
This participating jurisdiction shall establish and maintain a local housing assistance fund with a
qualified depository, as defined in Chapter 280, F.S. Amounts on deposit shall be invested, as
permitted by law, for the program funds of this participating jurisdiction. This fund shall be
separately stated as a special revenue fund in this participating jurisdiction's audited financial
statements.
In accordance with the provisions of ss.760.20-760.37, it is hereby certified that this participating
jurisdiction will not 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.
It is hereby certified that the staff or entity that has administrative authority for implementing a
local housing assistance plan assisting rental developments shall annually monitor and determine
tenant eligibility through the compliance period as described in Pinellas County Ordinance 06-28,
Section 3.
It is hereby certified that this document is the eligible entity's local housing assistance plan and all
provisions of the plan conform to the requirements of Pinellas County Ordinance 06-28 and the
Rules. .
A rized Official: FranK Hibbard, Mayor
City Council
Date:
--:'>
r ./':'. ";.. ' .'
~.[_..-
ia E. Goudeau
Clerk
RESOLUTION NO. 06-56
A RESOLUTION OF THE CITY OF CLEARWATER,
FLORIDA, ADOPTING THE CITY OF CLEARWATER
COMMUNITY LAND TRUST PROGRAM LOCAL
HOUSING ASSISTANCE PLAN COVERING FISCAL
YEARS 2007-2009; PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the City of Clearwater has established the FY
2006 through FY 2010 Consolidated Plan which identifies goals,
objectives and strategies to develop viable urban communities by
providing decent housing and suitable living environment and to
expand economic opportunities principally for very low to moderate
income person/households; and
WHEREAS, the Clearwater City Council approved the Five
Year Consolidated Plan covering Fiscal Years 2006-2010 at their
August 4, 2005 meeting; and
WHEREAS, the Consolidated Plan has established
affordable housing as its highest priority; and
WHEREAS, Pinellas County Board of County
Commissioners established a Housing Trust Fund (Ordinance No.
06-28) to implement the Community Housing Trust Fund Program
for the development and provision of affordable housing; and
WHEREAS, the City of Clearwater has established a
Community Land Trust Program Local Housing Assistance Plan
under an agreement with Pinellas County Housing Finance
Authority to obtain funding; and
WHEREAS, the City will establish a local housing trust fund
to receive funds from the program; and
WHEREAS, the Local Housing Assistance Plan provides
that ten percent (10%) of the total housing trust program allocation
will be used for administrative expenses, and
WHEREAS, the funds distributed through the local housing
assistance plan must be leveraged at a minimum ration of 2:1, set
aside a minimum of 15% of the funds for persons with special
needs or persons earning thirty percent (30%) or less of the area
median income, maintain that eighty percent (80%) of the funds will
EXHIBIT "G"
Resolution No. 06-56
be utilized as non-forgiven loans that generate program income;
now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF CLEARWATER, FLORIDA:
Section 1. The City of Clearwater hereby adopts the
attached Community Housing Trust Program Local Housing
Assistance Plan covering Fiscal Years 2007-2009.
Section 2. This resolution shall take effect immediately upon
adoption.
PASSED AND ADOPTED this
day of
,2006.
Frank V. Hibbard
Mayor
Approved as to form:
Attest:
Cynthia E. Goudeau
City Clerk
Carlos F. Colon
Assistant City Attorney
2
Resolution No. 06-56