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96-25'"1 RESOWTION NO. 96-25 ..�,, ;; A RE�OLUTION OF THE CITY OF CLEARWATER ACCEPTING THE RECOMMENDATIONS OF THE CITY OF CLEARWATER NEIGHBORHOOD AFFORDABLE HOUSING ADVISORY BOARD AND ADOPTI�lG A LOCAL HOUSING ASSISTANCE PLAN FOR THE CITY OF CLEARWATER IN ACCORDANCE WITH THE ST6lTE OF FLORIDA STATE HOUSING INITIATIVES PARTNERSHIP �SHIP) PROGRAM PRO!/lSIQNS. WHEREAS, the NEIGHBORHOOD AFFORDABLE HOUSING ADVISORY BOARD has met its statutory and organizational assignmen4s by preparing a set of recommendaiions to the CITY GOMlIAISSION addressinc� affordable housing inceratives and associated issues and, WHEREAS, the CITY OF CLEARWe4TER CITY COMMlS$lOiV �as received the recommendations from the �lEIGHBORHOOD AFFORDA�L� HOl1 sINC ADVISORY BO/�EiD, �nd h�s prepared a LOCAL HOIDSING ASSISiANCE PL�lP�! based upon �hose recommendations, now, therefore, ' BE IT I�ESOLVED �Y THE CITY COMMISSION OF THE CITY OF CLEARWATER, FLORID`A: Section 1. The City of Cleaewater hereby accepts the NEOGHBORHOOD AFFORDABLE HOUSING ADVISaRY BOARD recornmendations aitached to this resolution as the LOCAL HOUSING ASSISTANCE PLAN. Section 2. The City of Clearwater hereby adopts the Nousing Delivery Goal for Fiscal Year 1996-97. Section 3. The City of Clearwater hereby accepts the LOCAL HOUSIIUG ASSIS'PANCE PLAN for State fiscal year, Juiy 1, 1996 - June 30, 199T. Sectio� 4. This resolution shall take effect immedistety u�aon ado�tion. PASSED AiVD ADOPTED this.�8th day of Anrtt ,'9996 C/////� NC�� W � Rita Garvey, Mayar-Commis ' ner Attest: ~ � • .�`��'-°�---� _, Cyn ia E. Goudeau, �ii�� Ciark ��lu�i�ra� 3�r�. I�� STATE HOUSING INITIATNES PARTNERSHIP LOCAL HOUSING ASSISTANCE PtAN (LHAP) CITY OF CLEARWATER, FLORIDA STATE FISCALYEAR 1996/97 (July 1, 1996 through June 30, 1997) LOCAL HOUSING ASSI sTAiVCE PLAN :� This Local Fiousing Assistance Plan (LHAP) set§ forth the plans for all of the City of Cleanrtrater for State Fiscal Year (F� 96/97 #g increase the supply and delivery of safe, d�cent and affordable housing to the City of Ciear�vater. This plan m�ets the provisions of Chapter 9l-37, Ftorida Administrafiva Code, State Housing Initiatives 0'artnership (SMIP) program Florida Statu4e§ Chapter 420.907 through 420.9079. Public input in the development of this Local Housing Assistance Pian was soliciied through: The City's hleighborhood and Affordabie Housing Advisory �oard (N�HA�) wa� fo►med in 1995. The NAH�B monitors and provides input to the Clearwater City Commission on implementation af the Housing Element of the Comprehensive Plan; supports and advises the Economic Developmen4 Department on development of a public constituency for atfordable hou§ing and neighborhood improvement; initiates and supports creatao� of publiclprivat� partn�rrships for affordabl� housing and facilitates coordination of agenci�s engaged in affordable housing and neighboottood improvement programs; and seni�s as a�ordable housing and neighborhood improvem�nt advocat�s on aitica! matters of public policy. � No more than a maximum of ten percent (10%) of the City's SHIP allocation ouill be used to cov�r administrativ� expen�es. Of the remaining ninety �err�nt (30°!A) 4he%and� shali be u��d by L�i Housing Pat�tnerships to implement the follow�ing Ioc�Uy desigr�ed strafegies. In all strategies at least thirty percent (30%) ofi ihe units �hall �e oax�pied by very �o�w inc�me persons; ai least thirty percent (30%) of the units shafl be occupi�d by low incorne pers�ru; and no greater than forty percent (40°�) of the units sha10 b� aflacated io units �pied by moderate inc�me persons. As required by statute, a minimum af sixty-five percenfi (65%) of all �HIP funds will be dedicated 4c� home ownership activities. The City has committed the City's Community DeveDopmer�t gloc�c G�ant funds for housing programs such as homeowner re9�abilitafian and nevr con��fruciie�n. ihis emphasis will be continued under fhe SHIP program administsred by the City of CleaEwater. As required by stat�.rte, a minimum of seventy-fivo percent (75%) of SHIP funds will be reserved for construdion, rehabilitation, or emergency reha�ilitatian. Administrative and organizationai resourcgs now in place in the City of Ctearwater �re structured to cantinue the impiAmentation of cansWcfion, rehabilitation, artci emergency rehabilifiations. i�� 1 at 8 r�� : °""`� 'a �. �.: A. Suouort Services .� Support services available to eligible persons and sponsors shall consist of ihe following: Counseling Home ownership counseling for first-time home buyers is currently being provided by Econornic Development Department Staff and such non-profits as Clearwater N�ighborhood Housing Services and Tampa Bay Community Development Corporation. The City also uses established and accredited First-Time Home-�uyer education courses that are offered through the rommunity Service Foundation. 11. Li)GAL HOUSIlYG PARTNEfiSHlPS The City o� Clearwater's public-priva�e partnership is the Cha�lenge 2000 Loan Program. The �City, through Challenge 2000, has created partnerships with area baniss, locai affordable hou�ing non-profits, title companies, local develop�rs, and other organizations that are engaged in the affordable housing business. Through these partnerships, the Giiy has been able to expand the supply of safe, decent, and affordable housing to many of its residenis. Without these partnerships, many families would still be living in unsafe and unsanitary housing, paying for rent, rather than experiencing the American dream of home ownership. lit. �iRATEGIE� �TRF�TEGY #1: Reha ilit�tion of Existing Homes '�he Ci2y, through its Housing Programs, fireances rrhabilitati�ns for eligible very-low, law and maderate income persons who own and occupy �ubstandard hcausing units. "�he SHBP s�bsidy will be in the form of a deferred payment loan (DPL) with no int�rest and n� monthly payment due unl�ss the home is sold, rented, or ownership is transferr�d. In the case of a DPL, a lien is placed against the pruperty only as a �ecapture mechanism for the loan. ; T_F�kATEGY #2: i�,�+�• �anstruction/Devel4nm9nt of Housina Unit� The City develops affordable housing units for eligible very-iavv, fow, and moderate income persons. The City and eli�ible sponsors acquire land to provide affordable hausing unit� for eligible persons. Eligible sponsurs shal( also be awarded funds to construot and/or develop affordabls housing far eligible persons. Paye 2 of 8 �+�.r��..w,F � � � � , The activities performed in this strategy supplement the City's Challenge Fund Program. The assistance may remain in th� unit as a deferred payment loans (DPL's) which carry no interest and low interest loans shall be available for very-low, low, and moderate income persons through this strategy. In the case of a DPL, a lien is placed against the property only as a recapture mechanism far the loan. The DPL loan is not due until the home is soid, rented or ownership is transferred. Payment of the principal amount of the DPL is deferred while the borrower remains the fee simple owner and resides at the noted property, and no default of the terms of the mortgage securing the note has occurred. Default wiil cause the note to become immediately due and pa�rabte. Upon default, the Cit�r, at its option may prepare an aiternative p�omissory note requiring monthly payments of principa! and interesi. All payments on the alternative note shall be appiied first to interest to date of receipt, then to principal, then to late charges due. During the deferred term the note will not accrue interest. Th� owner(s) reserve(s) the right to pre pay the p�incipal in whole or in part at any time witho�t payment of premiums or penalties. ihe note is secured by a mortgage duly filed for record in Pinellas County, Florida. The City will continue SHIP Funds to provide the local matching funds/credits required for Federal and State affordable ho�sing programs. Federal HOME funds may be used to assist eligible very-low, low, and moderate income first-time home buyers in the form of gap financing. The City may use SHIP funds as the Local Contribution when participating in such programs as the Federal Low lncome Housing Tax Credit or the Florida State Apartment Incentive Loan {,AIL) Programs. Is� most casss the City will use F90ME and SHIi' funds to rneet the required local contribuiion of the totai project funding fior these types of projects. 'ihe SHIP fiunds that are used in th�se types of projects will either be in the form of a Deferred Payment Loan or Low Interest Loan. STRATEGY #3 Down��onent Financina Assistance The City, through its Affordable Housing Programs and thraugh eligible sponsors, shall provide funds for downpayment, closing costs and gap #inancing for vsry-low, low, and moderate income persons being assisted through the �ity of Clearwater's Challenge 2Q00 F'rogram. The Challenge 2000 Program pravides reduced raie mortgages to very-Ic�w, law, and moderate income residents of the City of Ciearwat�r. The pragrarr� pravides downpayment assistance for eligible persons ,purchasing a home. The maximum gap financing shali be 52,750. The maximum combined downpaymeni, ciosing costs, and gap financing shai) not be greater than $2,750. This assistance shall be in the form of a Deferred Payment Loan {DPL) with no interest and no payment due uniess the home is sold, rented, or ownership is transferred. In the case of a f3F'L, a lien is piaced against the praperty o�ly as a recapture mechanism for the loan. Pape 3 nf 6 �,o�r�,eoow...u� ��' � � �`�, Program Income � Program income that will be derived �� the City from loan repayments, r�imbursements, or other repayments and interest earned "on SMIP activities, shali be used exclusively for SHIP eligible program activities other than sala�ies or administrative expenses. Reca�ture Provisions Eligible affordable housing units assisted with SHIP doltars may be subject to long-2erm recapture provisions similar to those used under the Federal HOME Program. The terms of the recapture provisions will depenc� on the type of assistance provided. The majority of the OPL and Gap tiens issued under the Challenge 2000 Program will carry recapture and affordabil6ty terms consistent with the HOME Program. Complianc� "fhe City will promptly notify the Florida Housing Finance Agency if at any time during the term of this pian they will be unable to comply with the prodisions of our LHAP. IV. TIMELINE �OR EXPENDITURES (See Attachment B) V. AFF�RDABBLITY The following chart, Exhi i 1, based on Median Family Income, may be used to det�rmine qualifiication for an activity offered under on� �f th� strategie� within thi5 plan. The chart describesthe Income Limits and Rental Rates adjuste� for family sizes. "F►ffordable" means that monthly mortgage payments, includinfl t�xes and insur�n�e, do n�t exceed 30% of an amc►unt represeniing the percentage of the area m��ian incorne limits for 7he family size for that household, (+.e., very-low, low, or moderate income►. It is not the int�nt �o limit a household's ability to devote more than 30°!0 of its income for housing as long as the amount does not exceed 30% of the area median incmrre� limits adjust�d fo�� amily soze for the income category. V6. A�\l�RiI�EMENT AND OUTREA�Bi �� The Outreach Strategy to identify potential eligible recipients is to work closely with our local non-profit corporations who specialize in f��me ovvn$rship couns�ling, credit aounseling and homeowner rehabilitation programs, as well as existing Ci4y programs which target neighborhoods and code compliance activities. Outreach will be conducted v(a printed materials, newspaper ads and video tapss �ir�d on the local Govemment Access Television CGATVI ta advertise availability of housing programs PBp� 4 of $ �,wrNCOOU�r.ius ��- � 5� � � and funding sources. Strategies designed to select recipients of housing units to be built or rehabilitated include: 1. �eferrals to/from non-profits/for-profits, and 2. periodic "Open House" sessions wherein the City and many affordabl� housing related organizations advertise for recipients and coilect family size, income data and credii histories to determine eligibility for various forms of housing and related services. I i n The City will contir�ue to publish annualiy a"Notice of Fund Availability (NOFA)" while SHIP funds are available, in local newspapers serving general circulation and ethnic diverse neighborhoods. Selection of eligible sponsors is done by a"Request for Appiication" process in which Yhe applications are competitively ranked. Applications will be scored and ranked no earlier than thirty (30) days after advertisement of the application period. � A minimum low score has been established and the main weighted categories are: 1. Does the activity benefit very-low and low income individuals? 2. If ihe activity to be performed in one of the City's CDBG Target Areas7 3. Does ihe activity result in home ownership? 4. What is percentage of other funcis that will be used in the project? SHIP funds wi{I be advertised in a publication of general circulation at leasi thirty (30) days prior to accepting applications. Reci�ients Th� selection of recipients shall be on a first-come/first=served preference for all income eligible persons, exceptwhere certain hardship cases exist, which sV�ali be determined by �he City. All possible efforts will be made to accommodate very-low and low incame families in order to exceed the minimum percentages required. Selection and the Expenditure of Funds will be done in a manner which will insure that there will be na discrimination on the basis of race, creed, color, age, sex, familial status, handicap, religion, or natir�nal origin. Eligible persons and sponsors who are recipients of SHIP funds will be required to contractually commit to the City of Clearwater and State of Florida SMIP Prograrn and �ederal HOME Program rules and regulations. Th� City will strongly encourage ail eligible sponsors to attend all applicable SHIP/HOME workshaps. �les Prices The maximum �ales prices of new or existing homes shall not exceed ninety percent (90%) Page 5 of 6 ��T•�� ,"'"`, � of inedian purchase price as estabiished by the U.S. Department of Treasury as amended from time to time. (Exhibit 111 ., :ii :�� The P�ogram Strategie� described in our three strategtes will result in a reductiort of housing costs to eligible recipients by: 1. relaxed lending requirements as a result of impiementation of the Chatienge Fund. 2, below market interest rates. 3. create the opportunity for home ownership to many more very-low and low income residents, and _ 4. to expand the supply of safe, decent, and affordable housing to the residents of the City of Clearwater that woutd be unavailable without the implemen4a�tion of our Local Housing Assistance Pragram. In �erms of our Partnerships, as we move further along in our Programs, the Partnerships that have be�n developed will continue to strengthen and we will also work to build new and lasting partnershBps. VII. �DMINISTRATION The SHIP adminisiration allocation of not-to-exceed 1�% will l�e speni the following way: VIII. CERTIFICATION PAGES (See Attachment C) � Pape 6 of 6 im"r��c°°u�'u."'F 9�� as' �� f ` EXHIBIT I �.996 MEDTAN I*dCOME- PI�d�LL�AB CO�Y City of ClearwTater Econoffifc D�vcaA�pn��a� �c��+a�ic��a� IAICOME ELIGIBTI,ITY LIMITS by us Dept of xcr� Effective 12-0'Y-95 Household Median 50� Median 80� Median 120� �ize Income (very �ow) (Low) Median Income �noome Income 1 Person $ 27,t00 $ i3,800 $ 22,050 $ 33,7.00 2 Persons 31,500 15,75D 25,200 37,850 3 Persons 35,500 17,750 28,350 42,550 4 Persons 39,400 �9,700 31,500 47,330 5 PersOns 42,600 21,300 34,050 51,100 6��rsons 45,700 22,850 36,550 54,850 7 Persons 48,900 24,450 39,100 58,f50 8 Persons 52,000 26,000 41,600 62,450 GROSS (UNADJUSTED) MEDIAN iiOUSEHOLD YNCC?ME -$ 39,400 uw�Tnuoacoro+su+cawcuxn,� n.a»e ox�orAe g�� r ��I 1 �� STAT� alOIISIRIG Itd111ATiVES 6�6�Tt�E�Slil� PROCRAM "�0°i6 O� AflED1AN �4EtEA PUIZC{iASE PRICE LOCAI� �09/ERNM�NT NEiPV EXISTIh9G Daytona �each f�iSA 106,?�5 71,68G Fort Lauderdale PMSA 124,187 108,726 �ort Niy�rs - Cap� Cor�i FU9SA 1�1,5� 102,242 fo�t Pieroe - F'ort �t. Lucie fVISA 92,644 95,6�2 Jadcsonvill� MSA 1 Q6,017 92,490 �akeland - �nter F9aven MSA 87,121 57,535 M�Ib�u�e - Titusyiile - Pafm �ay MSA 910,743 90,846 tVfiami f�I1��A 119,439 113,418 Naples MSA 1QS,3S5 118,264 Orlando MSA 95,�38 101,707 PuntaGorda!lASA 'i06,365 79,463 Sarasota - Braclen8or� MSA 1 �6,71'! �4,995 Taliahassee MSA 1Q6,365 9Q,055 Tarnpa - St. Petersburg - ��nrater �ASA 88,679 �3,491 Vllest Palm Bea�r� -Boca Raton Ftato� �i��4 934,ff�440 °907,949 Monroe County 'i3�,714 1�4,87a Other Areas 10f,3�5 9�,523 "Sotuce: Revenue Proclamation 94-55, U.S. Depaitment of Treasury �a.� 9� y��" '"�� { ��O�I� II� 9996-199T I�V��iAGE/M�1J(6iNlDM AIPdAFtD� ,��T6�ATECY #9 R�H�4�1�.lTr�iTiON OF �J(ISTIIVG iiOWl�S � Proposed average co�t per unit .................................................................................... $15,000 Propos�l ma�simurn cost per unit ................................................................................... 20,000 d�roposed 1996-�9997 �axir��am cosf par �nit ................................................................. 20,0� d'roposed 1�9�-1937 average SHIP cost per unit ...................................................<..... 15,000 i�umbpc ofi households assisted .............................................................................................18 :..=: ,. :�� • -� � � _ , a - � � �: _ . ;� � Proposed avecage c;ast �r unit .................................................................................... $15,0� Pro�s�d rr��irr�um co�t per ur�it ................................................... ............................. 20,000 �roposed 1996-1997 m�cimum cost per uni# ................................................................. 20,000 ; Proposed 1996-'{996 average SHIP cost per ur�it ......................................................... 15,ODa N�mber of households assisted ............................................................................................11 STRATE�GY #3 DOWNP14YMEIdT �IN�lN�IN� �S�iSiSe4NCE E%ISTIfVG Hl'��AE Pl1RCFiASE Proposed average cost per unit ...................................................................................... �2,583 Prapo§ed maximum cost per unit :.....................................................................................2.750 Proposed 1996-1997 maximum cost per unit ..... ...... .............. ......................... .....2,750 . .. ...... ... . Proposed 1996-1J97 average SHIP cost par unit ............................................................2,5�3 Number of households assisted ............................................................ ...... .................22 �� . , ,�.� �^, o' �, � �11"f/ACHi9AE9VT A FiOUSING �ELiVER�' G0�4LS �� ^"'1 ':0 ' , : � � � � U � � W a h � _ �Q � W J ��.1 � 2 � �� a � '�' o � � � g y 0 � �a � W � J WT F� � h W � h � �R S J a � ��'� � A�T'TACHIIIIENT' � 'fIMELINE FOR �JGP��9i�8TURES � ��-�s � r�>� ti � r � � � m � � � � w � � � � < °� � Q � � � U � � W F � .�. � ` ��" � �Vr � AT"i"faCFli�liEi�l'T � r � �I� r�� -� � CERTIFlCATION TO FLORIDA HOUSINO FINANCE AGENCY Local Government: City of Clearwater, Florida (1) The local government will advertise the availability of SHIP funds pursuant to Florida Statutes. (2) All SHIP funds will be expended in a manner which will insure that there will be no discrimination on the basis of eace, creed, color, age, sex, familial status, handicap, religion, or national origin. (3) A process for selection of recipients for funds has been developed. f4) Th� eiigible municipality or county has developed a qualification system for a�plications for awards. (5) Recipients of funds wiU be required to contractually commit io program guidelines. (61 The Florida Housing Finance Agency will be notified promptly if the local govern- ment (or interlocal entity) will be unable to comply with the provisions of the plan t7D The Local Housing Etssistance Plan shall provide for the expenditure of SHIP funds within 24 months following the end of tS�e �taie fiscal year in which they are receiv�tl. (8) The plan conforms to the Local Government Comprehensove Plan, or that an amendment to the Zocal Governmeni Comprehensive Plan will be initiated at tha next available opport�nity to ic�sure conformance with the Local A�sisiance P1an. (9) Amendments to the approved Local Flousing Assistance Plan shall be provided to the Agency within 21 days after adoption. (10) The trust fund shall be established with � qualified deposi�ory for all SHIP funds as well as moneys generated from activitiss such as interest �arned on laans. (91) Amounts on deposit in the local housing mssistance trust fund shall be invested as p�rmitted by law. (12) The local housing assistance trust fund shali be separately stated as a special revenus fund in the local governmen4s audited financiai statements, cop'res of the audi4 will be forwarded to the ,A�ena� as �oor+ as avaiinblp. (13) An interlocal entity shall hav� its local housing assistance trust fund separ�tely audited for each state fiscal year, and the audit forwarded to the AQency as soon as availaBfe. �� , . �,,,,� ,--� Page -2- CERTIFICATION (14) SHIP funds will not be pledged for debt service on bonds or as rent subsidies. (15) Developers`receiving assistance from both SH16' and the Low Income Flousing Tax Credit (LIHTC) Program shall comply with the income, affordability and other LIHTC requirements, Similarly, any units rec�iving assistance from other federal programs shall comply with ail Federai and SHIP program requirements. (161 Loans shall be provided for periods not exceeding 30 years, except for deferred pay- ment losns or toans that extend beyond 30 years which continue to service eligible persons. (17) Rental Units constructed or rehabilitated with SHIP funds shall be monitored at least annually for 15 years for compliance with tonant income requirements and affrordability r�quirements. r r�� Wimess � Kathy S. Rice Deputy City Manager 9Nitness Date (SEAL) �l�-�s"