22-21 DocuSign Envelope ID:553B8A96-1FDA-49AD-BA69-83E01969BAA4
RESOLUTION NO. 22-21
A RESOLUTION OF THE CITY OF CLEARWATER,
FLORIDA, ADOPTING THE CITY OF CLEARWATER
THREE YEAR LOCAL HOUSING ASSISTANCE PLAN IN
ACCORDANCE WITH THE HOUSING TRUST FUND
ESTABLISHED BY PINELLAS COUNTY HOUSING
FINANCE AUTHORITY COVERING FISCAL YEARS 2022-
2023 THROUGH 2024-2025, PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the City of Clearwater has established the FY 2020-2021 Through
FY 2024-2025 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 persons/households; and,
WHEREAS, the City of Clearwater City Council approved the Five-Year
Consolidated Plan covering fiscal years 2021-2022 through 2022-2025 at their July 16,
2020 Meeting, and
WHEREAS, the Consolidated Plan has established affordable housing as the
highest priority; and
WHEREAS, Pinellas County Board of County Commissioners established a
Housing Trust Fund (Ordnance No. 06-28) to implement the Housing Trust Fund
Program for the development and provision of affordable housing, and,
WHEREAS, the City of Clearwater has established a Local Housing Assistance
Plan under an agreement with Pinellas County Housing Finance Authority; and,
WHEREAS, the City of Clearwater has established a Housing Trust Fund from
which funds are allocated, and,
WHEREAS, the Local Housing Assistance Plan provides that ten percent (10%)
of the total housing trust fund program income will be used for administrative expenses;
and,
WHEREAS, the funds distributed through the Local Housing Assistance Plan
must be leveraged at a minimum of 2:11; set aside a minimum of fifteen percent (15%) of
the funds for persons with special needs or persons earning thirty percent (30%) or less
of the area median income (AMI); and maintain that eighty percent (80%) of the funds
will be utilized as non forgiven loans that generate program income; and
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CLEARWAY R, FLORIDA:
Resolution No.22-21
DocuSign Envelope ID:553B8A96-1FDA-49AD-BA69-83E01969BAA4
Section 1. The CityClearwater hereby adepts the attached Local Housing
Assistance Plan in accordance with the Housing Trust Fund established by the Pinellas
County Housing Authority covering fiscal years 2022-23, 2023-24 and 2024- .
Section 2. This resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED this 1st dayof December , 2022.
DocuSigned by:
Frank Hibbard F
Mayor
DS
Approved as to farm: Attest:
DocuSigned by: DocuSigned by: -
Davi argolrs Rosemarie Call
City Attorney City Clerk
2 Resolution No. 22-21
DocuSign Envelope ID:553B8A96-1FDA-49AD-BA69-83E01969BAA4
HOUSING FINANCE AUTHORITY, PINELLAS COUNTY, FLORIDA
City of Clearwater, Florida
Local 1-lousing Assistance Plan
1. Name of Participating Jurisdiction: City of Clearwater
2. Contact Person: Terry Malcolm-Smith
Title: SHIP Administrator
Address: P.O. Box 4748, Clearwater, Florida 33756
Telephone: 727-562-4036
E-mail: terry.malcolm-smith@myclearwater.com
. Program Years Covered by Plan:
FY 2022-2023, 2023-2024 and 2024-2025
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 will advertise the availability of the Plan for public viewing
in a newspaper of general circulation and periodicals servicing ethnic and diverse
neighborhoods at least 30 days before the beginning of the application period. 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 program income 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.Applications for the development of housing units will be considered on an a -
going basis.Advertising will also be displayed on the city's Housing Department website
and through press releases.
. 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 are offered by lenders and real estate professionals
o enhance affordability.
All city housing programs encourage building active partnerships between government,
lenders, builders and developers. Involvement is continually solicited through public
hearings and forams, special housing committees and work groups, and consultations with
public, quasi-public, and non-profit agencies. The city has ongoing funding relationships
with area non-profits and housing developers through the administration of its other grant
funds.
6. Narrative describing qualified system and selection criteria for applications for awards to
eligible sponsors:
1
DocuSign Envelope ID:553B8A96-1FDA-49AD-BA69-83E01969BAA4
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 upon the proposed activity. Areas that are evaluated include:
economic feasibility of a project; timeliness of completion; past experience; commitment to
expanding affordable housing opportunities to very-low, low-and moderate-income
households; preservation of the housing stock to increase property values; and
enhancement of a community's image in targeted areas for housing developers.
Eligible sponsors must prepare an application which contains, but is 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 twenty(2 4) months.
Larger, longer-term projects may be proposed outside of the housing 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:
Applications, for both owner-occupied rehabilitation and purchase assistance programs, will
be funded on a first-come, first-qualified, first-served basis by city or administering
agencies.Applicants must be income eligible; the property must meet the city's established
requirements; and the property must be the occupied as primary residence.
Tenants applying for rental housing units will be qualified on a first-come, first-qualified,
first-served basis by housing sponsors. Tenants must be income-eligible and must occupy
the rental-unit as their primary residence.
What constitutes income eligibility will be defined in each specific program. No homeowner
or tenant will be assisted whose gross income exceeds 120% of AMI as defined in
Ordinance 06-28. income eligibility will be determined by the same HUD-established
methodology currently utilized in other City of Clearwater 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 upon 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 the maximum rent allowed under the City's 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. Further, it
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):
Exhibit A shows the anticipated expenditure pattern. If it is determined, during periodic
reviews, that the expenditures; under a particular strategy are not being made as
2
DocuSign Envelope ID:553B8A96-1FDA-49AD-BA69-83E01969BAA4
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 continue its established Local Housing Assistance Fund with a qualified
depository for all monies the City will receive from its share of 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 to the above paragraph is 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 eighty percent (80%)
non-forgiven loan requirement and twenty percent (20%)for special needs/extremely low-
income requirement do not apply to program income.
—1. Narrative regarding ownership housing affordability period 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:
Ninety percent (9010) recapture within two years from the date of purchase and Fifty (50%)
recapture after two years or more from the date of purchase. The intent of the 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 resale restrictions or through other types of agreements
that fulfill these intents, but in 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 safe, decent, adequate and affordable housing in safe and desirable
environments for homeowners, homebuyers and renters. The second priority is to provide
housing and supportive services housing programs. 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.
—3 Strategy I – Produce new rental and owner housing -Brief narrative regarding activities to
be carried out under this strategy, including (a)the proposed sales price of owner housing
produced; (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 hoysin d what initiatives will be used to conduct outreach and to attract applicants
3
DocuSign Envelope ID:553B8A96-1FDA-49AD-BA69-83E01969BAA4
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 the utilization of various funding sources and in conjunction with partnerships, a
high priority is placed on collaborative efforts and effective use of resources to ensure that
housing costs are minimized and impediments are removed. The City of Clearwater
engages the community in seeking and promoting housing units which, based on surveys
or citizen input, addresses the need of affordability, accessibility and meets the standard of
suitable living environments. Partnerships are established that provide homebuyer
education classes, which is a step that potential homebuyers can take to become informed
on ways to increase their credit score and become a more desirable candidate for the
finance industry to provide a home loan with a low interest rate.
(a) The proposed sales price of owner-housing produced may not exceed the purchase
limits for the city. The city's funding limits will be set forth on the Exhibit B but may
adjust such funding limits on a not to exceed State Housing Initiative Partnership
(SHIP) program purchase price limits without amendments to this Plan.
(b) The City will continue to develop partnerships with non-profits and developers for
construction of new units. The cost of construction can be reduced by utilizing
incentives provided for Affordable Housing Developments. Loans to affordable
housing builders, and eventual homeowner, will provide a below market supplement
to private market financing to further reduce costs.
(c) The City of Clearwater partners with organizations that provide support services in
many areas 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 which offer services that
prepare applicants for homeownership. The city advertises its housing program
through print media and its website. 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
acknowledges deficits in both rental and owner-occupied housing for extremely low-
to moderate-income households through the year 2020, addressing the factors
which prevent homeownership due to excessive cost burdens and barriers that are
prevalent in the pursuit of purchasing decent and affordable housing.
14 Strategy 2—Preserve existing rental and owner housing - Brief narrative regarding
activities
s t(�!
ctivities to be carried out under this strategy, the proposed sales price of any
4
DocuSign Envelope ID:553B8A96-1FDA-49AD-BA69-83E01969BAA4
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 (0 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 a rental strategy on the
attached Exhibit B, 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 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
preservation activities may be added as need and market conditions change without
amendment to this Plan.
(a) The proposed sales price of any rehabilitated property to be sold under this strategy
may not exceed the purchase price limits under the City's program in effect at the
time the home is sold. The current SHIP purchase price limit is $349,525.80. The
City anticipates that funding limits will be set forth on Exhibit B, but may adjust such
funding limits, not to exceed SHIP purchase price limits, without amendment to this
Plan.
(b) The value of the owner-occupied housing to be rehabilitated may not exceed the
purchase price limit under the City's program in effect at the time the home is sold.
Value will be determined using the same methodology utilized in other city Housing
programs at the time of rehabilitation. Currently, the city utilizes the "Sales
Comparable 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 the
city 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 are available from various sources which include, but are not
limited to: Homeownership Counseling (Pre and Post), Credit Counseling, Tenant
Counseling and Transportation.
(e) The cfty will continue to develop relationships with non-profits and other agencies
that assist applicants in finding suitable rental housing and which over services that
prepare applicants for homeownership. The city also widely advertises its housing
programs through print media and its website. 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 developfe�r�andd//o�rtthhe administratj!jga encies.
5
DocuSign Envelope ID:553B8A96-1FDA-49AD-BA69-83E01969BAA4
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 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 assist the deficit of affordable housing units
described in Strategy 1. The preservation of existing housing stock is the first
objective under the current Consolidated Action Plan and furthers the goals, policies
and objectives by ensuring there are provisions available for preservation through
the use of state and federal funds for rehabilitation, code compliance and
adherence to building standards, and elimination of blight.
The city also focuses on the removal of architectural barriers, thus allowing for
homeowners to maintain their units while making necessary modifications. Internal
guidelines and procedures are established to ensure that costs related to
preservation are limited to a standard of reasonableness,
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 costs assistance will be provided to
income-qualed 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 be utilized to assist with the
promotion of rental opportunities through rental assistance activities without amendment to
the Plan. The estimated number of households proposed to be served by income as
shown on Exhibit B, may be adjusted ata 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
city's maximum purchase price for new or existing homes. The current maximum
purchase price for newly constructed and for existing homes is $349,525,80. The
city's funding limits will be set forth in Exhibit A or B, but may adjust such funding
limits from time to time, 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 SHIP program in effect at the time
the unit is rented.
(b) The city will continue to develop partnerships with non-profits who prepare
applicants for homeownership and with lenders that make primary loans.
Homebuyer education may reduce the cost of housing by helping the homebuyers
to obtain better their real estate transaction.
6
DocuSign Envelope ID:553B8A96-1FDA-49AD-BA69-83E01969BAA4
Partnership with lenders may reduce the price of housing by allowing homebuyers
to obtain a more favorable interest rate on primary loans.
(c) Support services will not be provided by the city to the residents of housing.
Necessity for support services, however, will be determined on a case-by-case
basis by 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 agencies.
(d) The city will continue to develop relationships with non-profits and other agencies
that offer services that prepare applicants for homeownership or which assist
applicants in need of rental housing.The city advertises its housing programs
through the print media and website. 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 primary residence.
(e) This strategy furthers the Housing Element of the comprehensive plan that
acknowledges deficits in housing for the extremely low-to moderate-income
households through the year 2020. 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 are not 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 amendments to this Plan.
(a) The city will continue to develop partnerships with non-profits that prepare
applicants for homeownership and with lenders that make primary loans, as is
currently taking place in other promotion of housing opportunity programs one
through the city.
(b) The support services available under this strategy will be provided through non-
profits 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 widely
advertises its housing programs through print media and website information.
7
DocuSign Envelope ID:553B8A96-1FDA-49AD-BA69-83E01969BAA4
(d) This strategy furthers the Housing Element of the comprehensive plan by which the
city's Comprehensive Plan assists homeowners and renters find and sustain 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 is not limited to: 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-fbrgiven loans:
The city will meet this requirement by using both amortized loans and deferred pa ym ent
loans. No loan 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. This
requirement does not apply to the expenditure of program income.
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%AMI:
The city will meet this requirement by producing or preserving units specifically for this
targeted population or by working with other Participating Jurisdictions on a collaborative
basis. Additional activities to utilize the fifteen percent(15%) set-aside may be carried out
by one of the four strategies as needs and market conditions change without amendment to
this Plan.This requirement does not apply to the expenditure of program income.
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 HUD 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 minimum, once a year for fifteen
(115)years, or the term of the assistance, whichever period is longer.
Loans for rental housing development made under this Plan shall be secured by a
mortgage recorded against real property and a promissory note. The continued use of the
real property for affordable rental shall be ensured by recording a Land Use Restriction
Agreement(LURA) attached to the land. Developers and sponsors that offer rental
housing fors prior to the expiration of a LURA, must ensure continued occupancy by
eligible person(s)for the remainder of the affordability period required under the LURA.
Checklist of required documents (will satisfy the table of contents or checklist requirement):
8
DocuSign Envelope ID:553B8A96-1FDA-49AD-BA69-83E01969BAA4
M This Local Housing Assistance Plan
C3 Exhibit A-Timeline for each fiscal year covered by this plan
13 Exhibit B - Local Housing Assistance Plan Summary Chart for each fiscal year covered
by this plan
13 Exhibit C -Copy of policy of participating jurisdiction regarding sub-prime loans
[Ordinance Section 3(l)(b)]
0 Exhibit D -Copy of policy of participating jurisdiction regarding subordination of loans
[Ordinance Section 3(1)(c)]
Exhibit E -Copy of sample Land Use Restriction agreement[Ordinance Section 3(4)(f)]
D Exhibit F -Certifications and Required Statements with original signature
O Exhibit G -Adopting Resolution
9
O
co
O
{a O OCI O O
O 0 0 0 O O O O C7
6
3 N3 CD GH 0�, �A to G9 00, to b9
Si'� 1 LL'S O W Ids lt) Pi c
187 +Y V' U9 Qf fS
fiq
' w
ter
64
Ma
to
co eq
O
v
� s
\a
O
r
EEE
Sto
J w 04
N
64
a a a. i s
O
x
LU
ilk I
cD CL P �
LU
W
oc)
cm m
m
C
rn d C ji:.
Q O d °'
M k' CUP c
co 0 CD
L v e 'm a .
Lo
m N I iI f C c = m
a W
co m }}4)Q4 s 4 Y
V O 4! `i'{l�jfa',, "e d w
c m O In O C O UI W
Q u, _ a` oo
®s `o at ,I > > � a x
a7c v y. Q a
W ® ® rb
> `
<
67 H l ` O f� to I O tis ® <t d ¢ US <C <t t CJ co
L)
U
O
Q
N �
N py
a
x
fr y ^ 888 a A w
ry
o
A
q � 79
Za
a : 4
° L $�
t
�w
ass
a
co
rn m
rn
LU t
co
OD
co t
CO _ •- a
U
ro
7 ro E
LL CL
A � o
co
m00
SwmeN
mq LO
CCL
pm 9 c o msP q
'oma � C g ®
W tai � m � a� �E� m� m �_ m �•,a'^ .� e O
d
x J yr a (3 nim:' as u�4i r ag w of a> y27)
�-
CO
L)
U
O
Q
m
a`e g •
m
b
a e
s
31
mw
n
a
rn J
co m >
rn
o n a o
W t g
oMoco
W a°
m98
Q v � q
v � E
Q E ~
o c 4
LL
- c o
R z a °o
rn
OR
t
00
sc$ c
LO
m M y fl n �W
in
uCL
CL
rocLUIF
W
p> J CL
CO
L)
U
O
Q
p 4M
N
m �g
m
a _
a
a �
SURE h saga sag
W
co
LU q
co
m
_
Q _
o 'cam
rn aro � a
00 = C > €gLO c
co
m
m � ,
� Gad a9 �� � �r • 6
CL
c ®m g
C _ a
M-1off
LU
1 It
Vi C7 F- Q W O8 M tl9 h fN h-
7
U
O
Q
DocuSign Envelope ID:553B8A96-1FDA-49AD-BA69-83E01969BAA4
Exhibit C
Cityof' Clearwater
Housing Policy
Sub-Prime Lending Policy
The city will not assist borrowers who are being charged more than a combined 4%for loan discount
and origination fees by the first mortgage provider, The city will also not assist borrowers who are
obtaining adjustable rate first mortgages, interest only mortgages, mortgages financed by the
owner/seller,or mortgages with above-market interest rates or excessive fees. Interest rate expressed
as Annual Percentage Rate(APR)may not exceed 2%above the Market Rate(a rate that is no more than
25 basis points greater than the most recent Freddie Mac Weekly Primary Mortgage Market Survey
(PMMS) Rate for 30-year fixed-rate conforming mortgage.
In addition,the city will not assist borrowers with loans that require high up-front and out-of-pocket
fees, prepayment penalties, loans for more that the property is valued, 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.
DocuSign Envelope ID:553B8A96-1FDA-49AD-BA69-83E01969BAA4
Exhibit D
City of Clearwater
Housing Division
Loan Subordination Policy
Revised — October 2022
In general, the City of Clearwater does not subordinate mortgages made using CDBG,
HTF, 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.
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.
3. The new monthly payment includes escrows for taxes and insurance, and
represents between 30% - 35% of a 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 4% of the loan amount.
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.
® 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 100% 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.
12. Processing fee of$100 will be charged for subordination review and
processing.
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.
DocuSign Envelope ID:553B8A96-1FDA-49AD-BA69-83E01969BAA4
2. The Lender must provide the details of the loan being requested by supplying
copies of the Loan Estimate, Itemization of Fees, Title Commitment, Appraisal,
Application (1003 for the Lender) and the projected settlement costs.
3. Provide additional information as needed 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 Closing Disclosure prior to release of the
City's executed Subordination Agreement. If a title company faxes the Closing
Disclosure to the City when completed, and supplies their FedEx account
number, the City will overnight, or fax, if acceptable, the executed Subordination
Agreement, if in agreement with the figures on the Closing Disclosure.
5. All requests for subordination must be made at least thirty (30)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 727.562.4036.
1 have read the above City of Clearwater— Subordination Policy and understand the
terms and conditions of the policy.
Borrower Date
Borrower Date
DocuSign Envelope ID:553B8A96-lFDA-49AD-BA69-83E01969BAA4
Prepared by:Terry hlalcolm-Smith
City of Clearwater
Dept.of Economic Development&Housing
P.O.Box 4748
Clearwater,FL 33758
Exhibit E-1
LAND USE RESTRICTION AGREEMENT
HOME INVESTMENT PARTNERSHIP PROGRAM
HOME BUYER
THIS DECLARATION is entered into this —day of 2022
between
i;�
his/her successors, assigns and transferees regarding the real property described below, hereinafter cal (' Borrower")
and the City of Clearwater, Florida, unit of local government organized and existing under the laws of the State of Florida
hereinafter called ("City"), whose address is 600 Cleveland Street, Suite 600, Clearwater, Florida 33755(Lender).
WHEREAS,the Borrower shall purchase certain real property described herein and agrees to the City that the real
property which is the subject of a Mortgage and Note executed by Borrower of even date herewith, shall contain the
restrictive covenants set forth herein,
WHEREAS, Borrower agrees that the hereafter described restrictive covenants shall remain in full force and effect
against the real property until the end of the Period of Affordability,
WHEREAS, these covenants 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, and
IN CONSIDERATION of funds the City has provided to the Borrower for a loan to finance the down payment and
closing costs on real property located in the City of Clearwater, Pinellas County Florida described as: (LEGAL
DESCRIPTION)
which has the address of:
(herein "Property Address") and which real property is described in the mortgage between the City and the Borrower, the
Borrower acknowledges that these Restrictive Covenants are necessary to comply with the program requirements of the
HOME program stated at 24 CFR§92254,from which funds were obtained to finance such loan and covenants and agrees
with the following:
1. Covenants and Restrictions on Use of HOME Funds. HOME funds provided to this project will be used for down payment
and closing costs for the acquisition of the real property. At the time of the application,the Borrower's annual income should
not exceed 80 percent of the area median income, as determined and made available by the U.S. Department of Housing
and Urban Development with adjustments for smaller and larger families at the time of purchase of the new home. The
home must be the principal residence of the family.
a. The value of the HOME assisted unit shall not exceed 95 percent of the median purchase price for that type of
single-family housing for the area(FHA 203(b)limits). The maximum per unit subsidy amount shall not exceed the
per dollar limits established under section 221(d)(3)(ii)of the National Housing Act.
b. The Borrower shall have fee simple title to the property.
c. For the purpose of these Covenants, the Period of Affordability shall be a period beginning when the HOME funds
are invested and ending at the end of the years thereafter.
DocuSign Envelope ID:553B8A96-1FDA-49AD-BA69-83E01969BAA4
d. During the Period of Affordability, the single-family unit must be occupied by the Borrower. Should the Borrower
sell the property to any willing buyer at whatever price the market will bear, the sale will trigger repayment of the
HOME assistance. In addition, if the Borrower should rent and/or transfer the property, or if the home shall cease
to be the principal/homestead residence of the Borrower, it will trigger repayment of the HOME assistance.
a. The City will use the recapture provision for repayment of the loan should the Borrower not abide with the
affordability period or any other default provision in the mortgage, note or covenant In the event of default, the
Borrower shall repay the City in accordance with the following:
(1) The 'Net Proceeds" from the sale shall be determined by subtracting the amount of the settees closing costs
and repayments of the outstanding loans on the property, including the repayments of any loans of HOME or
other funds provided by the City;
(2) The Borrower may recover his or her initial investment from the Net Proceeds. The initial investment included
the amounts he or she contributed to the down payment when the property was originally purchased, to any
permanent improvements to the property and to payment of principal on the permanent financing.
(3) Any balance remaining from the initial investment shall be divided proportionally between the Borrower and the
City according to their investments and formulas. The City's investment shall include all grant's and loans of
HOME or other City funds provided to the Borrower, minus any repayments previously made to the City.
(4) In the event the proceeds from the sale of the property are insufficient to permit the Borrower to recover any of
the amounts indicated in (1), (2) or(3) above, neither the City nor any previous owner shall be liable for such
insufficiency.
f. In the event the housing is conveyed pursuant to a foreclosure sale, the provisions of Section 92.254(a)(5)(ii) of
the HOME Program shall apply. The recapture provision provides for shared net proceeds (if any) from the
foreclosure sale. If there are no net proceeds from the foreclosure, repayment by the City or the Borrower is not
required and HOME Program requirements are considered to be satisfied.
g. Enforcement. Violation or breach of any restrictions or covenant herein contained shall give the City the right to
institute any proceeding at law or in equity necessary to recover the applicable sum set forth in this agreement. If
action is instituted by the City to recover the sum, Borrower or its successors in the title agree to pay all costs to
collection, including court costs and reasonable attorney's fees.
IN WITNESS WHEREOF, this document has been duly signed by the Borrower on or as of the day and year first above
written.
In the presence of.
Witness lmow
er
Witness arrower
STATE OF FLORIDA
COUNTY OF PINELLAS
The foregoing instrument was acknowledged before me this day of � 2022 by and
husband and wife, personally known to me or W o have prcUu—c—eU—a7r—tv—er—s7ic—en,,;e as
id—en—tikation.
My Commission expires: —No_tary_NbTic_
2
DocuSign Envelope ID:553B8A96-1FDA-49AD-BA69-83E01969BAA4
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
pIan 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 fora 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 and as amended in Ordinance 09-44.
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.
Authorized Official Title Date
DocuSign Envelope ID:553B8A96-1FDA-49AD-BA69-83E01969BAA4
RESOLUTION NO. 22-21
A RESOLUTION OF THE CITY OF CLEARWATER,
FLORIDA, ADOPTING THE CITY OF CLEARWATER
THREE YEAR LOCAL HOUSING ASSISTANCE PLAN IN
ACCORDANCE WITH THE HOUSING TRUST FUND
ESTABLISHED BY PINELLAS COUNTY HOUSING
FINANCE AUTHORITY COVERING FISCAL YEARS 2022-
2023 THROUGH 2024-2025, PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the City of Clearwater has established the FY 2020-2021 Through
FY 2024-2025 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 persons/households; and,
WHEREAS, the City of Clearwater City Council approved the Five-Year
Consolidated Plan covering fiscal years 2021-2022 through 2022-2025 at their July 16,
2020 Meeting, and
WHEREAS, the Consolidated Plan has established affordable housing as the
highest priority; and
WHEREAS, Pinellas County Board of County Commissioners established a
Housing Trust Fund (Ordnance No. 06-28) to implement the Housing Trust Fund
Program for the development and provision of affordable housing; and,
WHEREAS, the City of Clearwater has established a Local Housing Assistance
Plan under an agreement with Pinellas County Housing Finance Authority; and,
WHEREAS, the City of Clearwater has established a Housing Trust Fund from
which funds are allocated, and,
WHEREAS, the Local Housing Assistance Plan provides that ten percent (10%)
of the total housing trust fund program income will be used for administrative expenses;
and,
WHEREAS, the funds distributed through the Local Housing Assistance Plan
must be leveraged at a minimum of 2:1, set aside a minimum of fifteen percent(15%) of
the funds for persons with special needs or persons earning thirty percent (30%) or less
of the area median income (AMI); and maintain that eighty percent (80%) of the funds
will be utilized as non-forgiven loans that generate program income', and
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CLEARWATER, FLORIDA:
Resolution No.22-21
DocuSign Envelope ID:553B8A96-1FDA-49AD-BA69-83E01969BAA4
Section 1. The City of Clearwater hereby adopts the attached Local Housing
Assistance Plan in accordance with the Housing Trust Fund established by the Pinellas
County Housing Authority covering fiscal years 2022-23, 2023-24 and 2024-25.
Section 2. This resolution shall take effect immediately on adoption.
PASSED AND ADOPTED this day of 2022.
Frank Hibbard
Mayor
Approved as to form: Attest:
David Margolis Rosemarie Call
City Attorney City Clerk
2 Resolufion No.22-21