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HomeMy WebLinkAboutJ-1 Resolution: Local Housing Assistance PlanCity of ~l~liami Gardens 1515-200 NW 167' Street Miami Gardens, Florida 33169 ~r A71 ,Tr MOVIORANDUM Mayor Shirley Gibson Vice Mayor Oscar Braynon II Councilman Melvin L. Bratton Councilman Aaron Campbell Councilwoman Sharon Pritchett Councilwoman Barbara Watson Councilman Andre Williams To: The Honorable Mayor and City Council From: Dr. Danny O. Crew, City Manager Thru: Daniel A. Rosemond, Community Development Director Date: April 11, 2007 Re: City of Miami Gardens' Local Housing Assistance Plan Upon being awarded a federal allocation from U.S. HUD, the City of Miami Gardens became eligible to receive funding from the Florida Housing Finance Corporation in the form of State Housing Initiative Partnership (SHIP) Funds. At the last council meeting held on March 14, 2007, an ordinance was approved (first reading) by Council establishing the affordable housing trust fund and an affordable housing advisory committee. At that time, we stated that staff would return with a resolution to approve the City of Miami Gardens' Local Housing Assistance Plan (CHAP). This plan governs the use of the State funds thru various initiatives targeted at generating and preserving affordable housing. The plan will cover a three (3) year period ending in fiscal year 2009/10. Upon Florida Housing Finance Corporation's approval of the City's Local Housing Assistance Plan, staff will return with a resolution appointing the committee members and accepting the specified amount of funding for 2007-2008. The allocation for 2007-08 is estimated at $600,000.00. Recommendation: It is recommended that the City Council approve the attached Resolution approving the Local Housing Assistance Plan. J-1) CONSENT AGENDA RESOLUTION LOCAL HOUSING ASSISTANCE PLAN Resolution No. RESOLUTION No. 2007- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA, APPROVING THE LOCAL HOUSING ASSISTANCE PLAN ATTACHED HERETO AS Exhibit "A"; PROVIDING FOR THE ADOPTION OF REPRESENTATIONS; PROVIDING AN EFFECTIVE DATE. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 WHEREAS, the State of Florida enacted the State Housing Initiatives Partnership Act ("SHIP"), which was incorporated into Chapter 420, Florida Statutes, and WHEREAS, SHIP permits the allocation of a portion of documentary stamp taxes on deeds to local governments for the development and maintenance of affordable housing, and WHEREAS, in order to be eligible for SHIP funding, the City must approve and implement a Local Housing Assistance Plan as defined in Section 420.9071(14), Florida Statutes, and NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA, AS FOLLOWS: Section 1. ADOPTION OF REPRESENTATIONS: The foregoing Whereas paragraphs are hereby ratified and confirmed as being true, and the same are hereby made a specific part of this Resolution. Section 2. APPROVAL: The City Council of the City of Miami Gardens hereby 15 approves the Local Housing Assistance Plan attached hereto as Exhibit "A." 16 Section 4. EFFECTIVE DATE: This Resolution shall take effect nun pro tunc to 17 the execution of the License Agreement. 1 g PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF MIAMI 19 GARDENS AT ITS REGULAR MEETING HELD ON APRIL 11, 2007. Resolution No. 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 SHIRLEY GIBBON, MAYOR ATTEST: RONETTA TAYLOR, CMC, CITY CLERK Prepared by SONJA KNIGHTON DICKENS, ESQ. City Attorney SPONSORED BY: DANNY CREW, CITY MANAGER MOVED BY: SECONDED BY: VOTE: Mayor Shirley Gibson (Yes) (No) Vice Mayor Oscar Braynon, II (Yes) (No) Councilman Melvin L. Bratton (Yes) (No) Councilman Aaron Campbell (Yes) (No) Councilman Andre Williams (Yes) (No) Councilwoman Sharon Pritchett (Yes) (No) Councilwoman Barbara Watson (Yes) (No) SKD 201524 1.DOC 52 ~~`~~ {~ kJ' " ~:~ .r.. G ~',~, ~~ CITY OF MIAMI GARDENS SHIP LOCAL HOUSING ASSISTANCE PLAN (CHAP) FISCAL YEARS COVERED 2007/2008, 2008/2009, 2009/2010 Section I. PROGRAM DESCRIPTION City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan -2- I. PROGRAM DESCRIPTION chapter 6~-3~.oos F.A.c. ana sect;on a2a9o~2, Fs. A. Name of the participating local government and Interlocal if Applicable: Section 420.9072(S),F.S. The City of Miami Gardens Interlocal: Yes _ No / Name of participating local government(s) in the Interlocal Agreement; Not Applicable A copy of the Interlocal Agreement is attached as Exhibit H. (N/A) $. Purpose of the Program: Section 420.9072, F.S. and Chapter 67-37.005(3), F.A.C. Creation of the Plan is for the purpose of meeting the housing needs of the extremely low, very low, low and moderate income households, to expand production of and preserve affordable housing, to further the housing element of the local government comprehensive plan specific to affordable housing. C. Fiscal years covered by the Plan: Chapter 67-37.002, F.A.c. / 2007/2008 / 2008/2009 / 2009/2010 D. Governance: Chapter 67-37.005(3) and (5)(i)F.A.C. and Section 420.9071(14)F.S. The SHIP Program is established in accordance with Section 420.907-9079, Florida Statutes and Chapter 67-37.007 Florida Administrative Code. The SHIP Program does further the housing element of the City of Miami Gardens' Comprehensive Plan. E. Local Housing Partnership section 42a9o72(1)(a), F.s. The City of Miami Gardens' SHIP Program is building partnerships with lenders, builders and developers, real estate professionals, advocates for low-income persons and community groups. Such partnerships include community action agencies and housing counseling agencies. F. Essential Service Personnel section 42o.9o7s(3)(a), F.s. Defined as any person in need of affordable housing, who is a permanent employee of a company or organization located within the City of Miami Gardens and whose service is considered essential. Examples of this include teachers, community college and university employees, police and fire personnel, emergency service providers and health care providers. City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan -3- G. Affordable Housing: Housing which is offered for sale or has an existing property value below the City's State Housing Initiative Program (SHIP) maximum purchase price or value limits. The housing must be occupied by persons or families whose income does not exceed 120% of the area median income adjusted per household size. H. Leveraging: Chapter 67-37.007(I)(b)(c), F.A.C. and Subsection 420.9075(I)(a) and (1)(63), and (I)(c), F.S. As a participating jurisdiction, the City of Miami Gardens receives CDBG funds from the U. S. Department of Housing and Urban Development. The City intends to use these funds to leverage SHIP funds thereby reducing the cost of housing. In addition, the City plans to use SHIP funds for developers to use as local match to leverage additional CDBG or Local Housing Credits from Florida Housing Finance Corporation and participants my be eligible for County Wide and State Down Payment Assistance. I. Public Input: Chapter 67-37.005(3), F.A.C. Public input for the LHAP was solicited through face-to-face meetings with housing providers, social service providers, local lenders and neighborhood associations through Public hearings conducted. Two public hearings were held to gather public comment regarding housing needs. The priorities derived from the public hearings were used to form the basis of the strategies for the plan. The hearings were noticed in a newspaper of general circulation that services ethnic and diverse neighborhoods within the City. J. Advertising and Outreach chapter 67-37.oos(6)(a), F.A.C. The county or eligible municipality or its administrative representative shall advertise the notice of funding availability in a newspaper of general circulation and periodicals serving ethnic and diverse neighborhoods, at least 30 days before the beginning of the application period. If no funding is available due to a waiting list, no notice of funding availability is required. K. Discrimination Section 420.9075(3)(c), F.S. The City of Miami Gardens does 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. City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan -4- L. Support Services and Counseling Chapter 67-37.oos(s)(~,F.A.C. Support services are available from various sources. Available support services may include but are not limited to: • Homeownership Counseling (Pre and Post) • Legal Services M. Purchase Price Limits: Section 420.9075(4)(c), F.S. and Chapter67-37.007(6)F.A.C. The sales price or value of new or existing eligible housing may not exceed 90% of the average area purchase price in the statistical area in which the eligible housing is located. Such average area purchase price may be that calculated for any 12-month period beginning not earlier than the fourth calendar year prior to the year in which the award occurs. The sales price of new and existing units, which can be lower but may not exceed 90% of the median area purchase price established by the U.S. Treasury Department or as described above. The methodology used by City of Miami Gardens is: ~ Bond Study Numbers provided by Florida Housing Finance Corporation l Independent Study (copy attached) U.S. Treasury Department The purchase price limit for: New and Existing Homes: $429.619.00 N. Income Limits, Rent Limits and Affordability: Chapter 67-37.005(5)(e), F.A.C. and Section 420.9071(2), F.S. • The City of Miami Gardens will use Income Limits updated annually from the U.S. Department of Housing and Urban Development and distributed by Florida Housing Finance Corporation. The City will define and use the methodology of determining "Annual Income" as defined in 24 CFR Part 5 of the Federal Regulations. • The City will apply the maximum rent levels as published by the Florida Housing Finance Corporation annually and will ensure that any housing provided through this initiative is affordable. • Affordable in this category is defined as monthly rents or mortgage payments including taxes and insurance that do not exceed 30 percent (30%) of the maximum monthly income allowed for the applicant's income category as indicated in Sections 420.9071 (19), (20) and (28), F.S. However, the City will not limit an individual household's ability to devote more than 30% of its income for housing, if the first mortgage lender is satisfied that the household can afford mortgage payments in excess of the 30% benchmark. In relation to rental housing, the City will ensure that rents do not exceed the rental limits adjusted for bedroom size. City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan -S- O. Wages to WOrlc: Chapter 67-37.005(6)(b)(7)F.A.C. Should an eligible sponsor be used, the City will develop a qualification system and selection criteria for Award applications for eligible sponsors, which includes a description that demonstrates how eligible sponsors that employed personnel from the WAGES and Workforce Development Initiatives programs will be given preference in the selection process. P. Monitoring and First Right of Refusal: Section 420.9075(3)(e)and (4) (~, Fs. In the case of rental housing, the staff or entity that has administrative authority for implementing the local housing assistance plan assisting rental developments shall annually monitor and determine tenant eligibility or, to the extent another governmental entity provides the same monitoring and determination, a municipality, county or local housing financing authority may rely on such monitoring and determination of tenant eligibility. However, any loan or grant in the original amount of $3,000 or less shall not be subject to these annual monitoring and determination of tenant eligibility requirements. Tenant eligibility will be monitored for at least annually for 15 years or the term of assistance which ever is longer unless as specified above. Eligible sponsors that offer rental housing for sale before 15 years or that have remaining mortgages funded under this program must give a first right of refusal to eligible nonprofit organizations for purchase at the current market value for continued occupancy by eligible persons. Q. Administrative Budget: Chapter 67-37.005(6103, FA.c.. A detailed listing including line-item budget of proposed Administrative Expenditures is attached as Exhibit A. These are presented on an annual basis for each State fiscal year submitted. The City of Miami Gardens finds that the moneys deposited in the local housing assistance trust fund shall be used to administer and implement the local housing assistance plan. The cost of administering the plan may not exceed 5 percent of the local housing distribution moneys and program income deposited into the trust fund. A county or an eligible municipality may not exceed the 5 percent limitation on administrative costs, unless its governing body finds, by resolution, that 5 percent of the local housing distribution plus 5 percent of program income is insufficient to adequately pay the necessary costs of administering the local housing assistance plan. The cost of administering the program may not exceed 10 percent of the local housing distribution plus 5% of program income deposited into the trust fund, except that small counties, as defined in s. 120.52(17), and eligible municipalities receiving a local housing distribution of up to $350,000 may use up to 10 percent of program income for administrative costs. The City of Miami Gardens has adopted the above findings in the attached resolution, Exhibit E. City of Miami Gazdens 2007-2010 SHIP Local Housing Assistance Plan -6- Section II. HOUSING STRATEGIES City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan -7- II. LHAP HOUSING STRATEGIES: Chapter 67-37.005(5), FA.c. 1. Name of the Strategy: Housing Rehabilitation Program Summary of the Strategy: The Housing Rehabilitation Program will provide rehabilitation assistance to very low, low and moderate income residents who live in single-family owner-occupied properties located within the corporate limits of the City of Miami Gardens. The City will provide deferred payment loan assistance to an eligible homeowner to complete needed repairs to meet the decent, safe and sanitary standard conditions. 1.1. Fiscal Years Covered: The strategy identifies in this section will cover the following fiscal years: 2007/2008, 2008/2009, 2009/2010. 1.2. Income Categories to be served: • Extremely Low Income (up to 30% of the MSAMI) • Very Low Income (up to 50% of the MSAMI) • Low Income (up to 80% of the MSAMI) • Moderate Income (up to 120% of the MSAMI) 1.3. Maximum award is noted on the Housing Delivery Goals Charts: Residents meeting the selection criteria will be awarded a maximum of $35,000. 1.4. Terms, Recapture and Default: Financial assistance under the SHIP Housing Rehabilitation Program will be provided to eligible homeowners in the form of a zero percent (0%) five (5) year deferred payment loan. There are no monthly payment requirements associated with this loan. There is no amortization on this loan. Repayment of the full principal balance of the loan is required if the property receiving the financial assistance is rented, leased or sold during the life of the loan. Otherwise the principal balance will be forgiven at maturity. Homeowners that qualify and receive assistance must City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan -g- execute a Mortgage and Note that will be recorded in the public records of Miami- Dade County for compliance with the recapture provisions for the program. In the event of death of all eligible homeowner(s), this loan is assumable by the heirs to the property. In order for the original loan to be assumed, the heirs • must comply with the loan's original terms and conditions • must meet income eligibility requirements adjusted for household size, and • must remain owner occupants of the property for the remaining term of the Mortgage and Note. In the event the heir(s) do not qualify to assume the loan or they do not comply with the requirements for assuming the loan, the outstanding loan amount provided by the City of Miami Gardens must be paid in full. 1.5. Recipient Selection Criteria: All recipients of assistance must meet the eligibility requirements as outlined below. Eligible housing includes single family homes, town houses, twin homes and condominiums only. Manufactured housing and mobile homes are not eligible for assistance under this program. Applications will be processed on a first-ready first-served basis from all applicants meeting the selection criteria, subj ect to funding availability and in such a manner as to comply with the statutory requirements. Other selection criteria will include the following: • The property shall consist of an owner-occupied residential unit. • Preference will be given to eligible handicapped/disabled and elderly (62 years or older) households and homeowners. • The property must be located in the corporate city limits of the City of Miami Gardens. • The market value of the home, as indicated by the Miami-Dade Property Appraiser, may not exceed the maximum sales price allowed under the SHIP Program. • The property must require needed repairs to meet the decent, safe and sanitary standard conditions. + The applicant may not be delinquent on property taxes or any debt owed to the City of Miami Gardens or Miami-Dade County. City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan -9- 1.6. Sponsor Selection Criteria: The City of Miami Gardens intends to administer this program. However, if the need for a sponsor should arise, the City of Miami Gardens will use a Request for Proposals process in accordance with Chapter 67-37.005(6) b (7) of the Florida Administrative Code to select an eligible sponsor. Eligible persons, sponsors or other recipients of assistance under this program will be required to contractually commit and comply with all SHIP Program requirements. 2. Name of the Strategy: Emergency Rehabilitation Program Summary of the Strategy: The Emergency Rehabilitation Program will provide emergency repair assistance to extremely low, very low, low and moderate income owner occupied single-family homes located within the corporate limits of the City of Miami Gardens. The City will provide deferred payment loan assistance to eligible homeowners to carry out limited repairs such as roofing, electrical and plumbing to immediately rectify life hazardous and potentially dangerous conditions that threaten the safety and health of the occupants of the home. 2.1. Fiscal Years Covered: The strategy identified in this section will cover the following fiscal years: 2007/2008, 2008/2009, 2009/2010 2.2. Income Categories to be served: • Extremely Low Income (up to 30% of the MSAMI) • Very Low Income (up to 50% of the MSAMI) • Low Income (up to 80% of the MSAMI) 2.3. Maximum award is noted on the Housing Delivery Goals Charts: The maximum award under this strategy will be $15,000. 2.4. Terms, Recapture and Default: Financial assistance under the SHIP Emergency Rehabilitation Program will be provided to eligible homeowners in the form of a zero percent (0%), five (5) year deferred payment loan. There are no monthly payment requirements associated with this loan. There is no amortization on this loan. Repayment of the full principal City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan -10- balance of the loan is required if the property receiving the financial assistance is rented, leased or sold during the life of the loan. Otherwise the principal balance will be forgiven at maturity. Homeowners that qualify and receive assistance must execute a Mortgage and Note that will be recorded in the public records of Miami- Dade County for compliance with the recapture provisions for the program. In the event of death of all eligible homeowner(s), the heirs to the property can assume the obligation based on the original terms and conditions provided to the homeowner as long as the heirs qualify based on income and household size, remain owner occupants of the property and do not sell or rent the property for the remaining term of the Mortgage and Note. An heir or prospective purchaser who does not qualify based on the provisions of this strategy will be required to repay the full loan amount as provided by the City of Miami Gardens. 2.5. Recipient Selection Criteria: All recipients of assistance must meet the eligibility requirements as outlined below. Eligible housing includes single family homes, town houses, twin homes and condominiums only. Manufactured housing and mobile homes are not eligible for assistance under this program. Applications will be processed on a first-ready first-served basis from all applicants meeting the selection criteria, subject to funding availability and in such a manner as to comply with the statutory requirements. Other selection criteria will include the following: • The property shall consist of an owner-occupied residential unit. • Preference will begiven toeligible handicapped/disabled and elderly (62 years or older) households and homeowners. • The property must be located in the corporate city limits of the City of Miami Gardens. • The market value of the home, as indicated by the Miami-Dade Property Appraiser, may not exceed the maximum sales price allowed under the SHIP Program. • The property must have condition that proves to be of a hazardous nature or potentially dangerous condition and that requires needed repairs such as roofing, electrical and plumbing to meet the decent, safe and sanitary standard. City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan -11- • The applicant may not be delinquent on property taxes or on any debt owed to the City of Miami Gardens and Miami-Dade County. 2.6. Sponsor Selection Criteria: The City of Miami Gardens intends to administer this program. However, if the need for a sponsor should arise, the City of Miami Gardens will use a Request for Proposals process in accordance with Chapter 67-37.005(6)(b)7 of the Florida Administrative Code to select an eligible sponsor. Eligible persons, sponsors or other recipients of assistance under this program will be required to contractually commit and comply with all SHIP Program requirements. 3. Name of the Strategy: Replacement Homes Program Summary of the Strategy: The Replacement Homes Program is designed to address substandard and dilapidated housing units that the cost of repairs or poor housing conditions cannot be addressed through the SHIP and CDBG assisted Housing Rehabilitation Program. Under this strategy, only single-family independent residential properties that are beyond repair and unsafe for human habitation will be provided assistance. An independent builder inspection will determine the economic feasibility (cost) of the rehabilitation and soundness of the structure. This strategy will be used primarily to assist existing single-family homeowners where the most appropriate solution to their housing problem would be to demolish the existing structure and replace it with a newly constructed housing unit on the existing lot. 3.1. Fiscal Years Covered: The strategy identifies in this section will cover the following fiscal years: 2007/2008, 2008/2009, 2009/2010. 3.2 Income Categories to be served: • Extremely Low Income (up to 30% of the MSAMI) • Very Low Income (up to 50% of the MSAMI) • Low Income (up to 80% of the MSAMI) • Moderate Income (up to 120% of the MSAMI) City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan -12- 3.3. Maximum award is noted on the Housing Delivery Goals Charts: Residents meeting the selection criteria will be awarded a maximum of $150,000. 3.4. Terms, Recapture and Default: Financial assistance under the Replacement Housing Program will be provided to eligible homeowners based on incomes adjusted for household size. The terms will be a zero (0%) to three (3%) percent loan that will be repaid in thirty (30) years based on income levels at the time the assistance is provided. The following are the repayment schedules based on income: Applicants with incomes less than 50% of median income will receive a zero percent (0%) amortizing loan with a term of thirty (30) years. Payment of principal at sale or rental of the property. Applicants with incomes at fifty percent (50%) or higher but less than sixty percent (60%) of median income will receive a one percent (1%) fully amortizing loan with a term of thirty (30) years. Payment of principal and accrued interest at sale or rental of the property. Applicants with incomes at sixty percent (60%) or higher but less than seventy percent (70%) of median income will receive a two percent (2%) fully amortizing loan with a term of thirty (30) years. Payment of principal and accrued interest at sale or rental of the property. Applicants with incomes at sixty percent (70%) or higher but less than seventy percent (80%) of median income will receive a two percent (3%) fully amortizing loan with a term of thirty (30) years. Payment of principal and accrued interest at sale or rental of the property. Applicants with incomes at eighty percent (80%) or higher but less or equal to one hundred and twenty percent (120%) of median income will receive a three percent (3%) fully amortizing loan with a term of thirty (30) years. Payments of the loan will begin six (6) months from the issuance of a certificate of completion and occupancy of the home. Persons or households that qualify and receive financial assistance must execute a Mortgage and Note that will be filed in the public records ofMiami-Dade County for compliance with the recapture provisions for this strategy. This mortgage will remain against the property for thirty (30) years. If the property is rented, leased or sold during the thirty (30) year period, then the loan and accrued interest will become due and payable to the City of Miami Gardens City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan -13- at that time. In the event of death of all eligible homeowner(s), the heir to the property can assume the obligation of the original owner as long as the heirs are income eligible, remain owner-occupants of the property and do not sell or rent the property for the remaining term of the Mortgage and Note. In the case of sale or transfer of the unit, the City will be repaid by the borrower as per the following schedule: 0 to 3 years - 100% of the City's assistance and the pro rata share of the shared appreciation (gain). 3 to 30 years - On the 3rd year, 100% of the City's assistance and 85% of the City's pro rata share of the shared appreciation, and the borrower receives 15%. Thereafter, the borrower receives additional 5% of the City's pro rata share annually, reducing the City's share by the same percentage The above gain sharing proposal will terminate in foreclosure; however, the City will require lenders to provide us a right of first refusal to purchase the loan at a negotiated price. 3.5. Recipient Selection Criteria: All recipients of financial assistance must meet the eligibility requirements as provided in the Florida Statutes, Florida Administrative Code, the SHIP Program Ordinance, Resolution, the Plan and this Strategy. Eligible housing includes single family owner-occupied homes that have been determined by the City's Building Department Inspection Unit to be beyond repair, unsafe for human habilitation and suitable for demolition. Mobile homes, manufactured homes, town homes, twin homes and condominiums will not be eligible under this strategy. The properties to be assisted must be a single family independent residence occupied by the owner and the property must be located within the corporate limits of the City of Miami Gardens. Applicants will be selected from a waiting list, on a first-come first-serve basis, subject to funding availability and in such a manner as to comply with the statutory requirements: • The amount of the financial assistance provided will be the full cost of demolition, and reconstruction of the property, to include hard and soft costs, not to exceed $150,000. 3.6. Sponsor Selection Criteria: The City of Miami Gardens intends to administer this program. However, if the need for a sponsor should arise, the City of Miami Gardens will use a Request for Proposals process in accordance with Chapter 67-37.005(6)b7. Florida City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan -14- Administrative Code to select an eligible sponsor. Eligible persons, sponsors or other recipients of assistance under this program will be required to contractually commit and comply with all SHIP Program requirements. 4. Name of the Strategy: Homeownership Assistance Program Summary of the Strategy: The City of Miami Gardens through the Homeownership Assistance Program will provide down payment and closing cost assistance to eligible persons and households who are first time homebuyers, defined as persons not owning a home within the last 3 years, to purchase a newly constructed or existing residential property within the City of Miami Gardens. The strategy will be available to assist extremely low, very low, low and moderate income residents to purchase a single family home, town home, twin home or condominium. 4.1. Fiscal Years Covered: The strategy identifies in this section will cover the following fiscal years: 2007/2008, 2008/2009, 2009/2010. 4.2. Income Categories to be served: • Extremely Low Income (up to 30% of the MSAMI) • Very Low Income (up to 50% of the MSAMI) • Low Income (up to 80% of the MSAMI) • Moderate Income (up to 120% of the MSAMI) 4.3. Maximum award is noted on the Housing Delivery Goals Charts: Residents meeting the selection criteria will be awarded a maximum amount of $20,000 to be used towards down payment and closing costs. 4.4. Terms, Recapture and Default: Financial assistance to be provided under the Homeownership Assistance Program will be provided to eligible homeowners in the form of a zero percent, thirty (30) year loan. The amount of assistance will be determined by the lender qualifying the applicant. The initial $10,000.00 will be provided in form of a 30 year, 0% interest loan with the payment due at maturity. If the homeowner has continued living in the residence through maturity, the balance will be forgiven and the Note considered satisfied. City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan -15- Any additional funding after the initial $10,000.00 will be provided in form of a 30 year 0% repayable loan. There will be 360 equal monthly payments. Repayment of the full principal balance of the loan is required if the property receiving the financial assistance is rented, transferred or sold during the life of the loan. Homeowners that qualify and receive assistance must execute a Mortgage and Note that will be recorded in the public records of Miami-Dade County for compliance with the recapture provisions for the program. In the case of sale or transfer of the unit, the City will be repaid by the borrower as per the following schedule: 0 to 3 years - 100% of the City's assistance and the pro rata share of the shared appreciation (gain). 3 to 30 years - On the 3`d year, 100% of the City's assistance and 85% of the City's pro rata share of the shared appreciation, and the borrower receives 15%. Thereafter, the borrower receives additional 5% of the City's pro rata share annually, reducing the City's share by the same percentage The above appreciation sharing proposal will terminate in foreclosure; however, the city will require lenders to provide us a right of first refusal to purchase the loan at a negotiated price. In the event of death of all eligible homeowner(s), the heirs to the property can assume the obligation based on the original terms and conditions provided to the homeowner as long as the heirs qualify based on the original terms and conditions provided to the homeowner as long as the heirs qualify based on age, income and household size, remain owner occupants of the property and do not sell or rent the property for the remaining term of the mortgage and note. An heir or prospective purchaser who does not qualify based on the provisions of this strategy will be required to repay the balance of the outstanding loan amount provided by the City of Miami Gardens. 4.5. Recipient Selection Criteria: Applications will be processed from an established waiting list on afirst-come, first- ready, first-serve basis from applicants meeting the selection criteria, subject to funding availability and in such a manner as to comply with the statutory requirements. City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan -16 Other selection criteria will include the following: • The property must be located in the corporate city limits of the City of Miami Gardens. • The purchase price of the home may not exceed the maximum sales price allowed under the SHIP Program. • The property must meet safe and sanitary standard conditions at closing or funds must be held in escrow to bring it to safe and sanitary standards after the closing. • The applicant may not be delinquent on any debt owed to the City of Miami Gardens or Miami-Dade County. • Applicants purchasing Manufactured or Mobile homes are not eligible for funding under this strategy. 4.6. Sponsor Selection Criteria: The City of Miami Gardens intends to administer this program. However, if the need for a sponsor should arise, the City of Miami Gardens will use a Request for Proposals process in accordance with Chapter 67-37.005(6)b(7) Florida Administrative Code to select an eligible sponsor. Eligible persons, sponsors or other recipients of assistance under this program will be required to contractually commit and comply with all SHIP Program requirements. City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan -17- Section III. INCENTIVE STRATEGIES City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan -18- III. LHAP INCENTIVE STRATEGIES section 420.9071(16), Fs. Expedited Permitting Process The processing of approvals for Development Orders or Permits as defined in s. 163.3164(7) and (8) for affordable housing projects are expedited to a greater degree than other projects. Established Policyand Procedures: The City of Miami Gardens has implemented a process that will eliminate any delay in the review of affordable housing development proj ects permit applications. These applications will be prioritized from other type of project applications in order to ensure expediting the projects. 2. Development Impact Fee Waiver /Exemption The modification of impact fee requirements, including reduction or waiver of fees and alternative methods of fee payment for affordable housing. Established Policy and Procedures Housing projects will receive a waiver or reduction of impact fees when developing affordable housing units. For the developer to secure the waiver or reduction of the impact fees, the Department of Community Development must be able to certify that the proposed housing project/unit(s) are affordable to either very-low, low and median income families and individuals. Such waivers or reductions must be approved by the City Council. 3. Density Bonus The allowance of increase density levels for affordable housing. Established Policy and Procedures Affordable housing residential and planned development projects may receive a density bonus based on an analysis of affordability, site characteristics and proposed project specifics. This analysis will be conducted in coordination with the Department of Community Development and the Department of Planning and Zoning. 4. Infrastructure Capacity The reservation of infrastructure capacity for housing for very-low-income persons and low-income persons. City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan -19- Established Policy and Procedures The City of Miami Gardens has a Concurrency Management System that tracks potable water, sanitary sewer, solid waste, traffic, and park and drainage capacities. This System will ensure that there is always infrastructure capacity available for affordable housing projects. 5. Accessory Single Family Dwelling Units The allowance of affordable accessory residential units in the residential zoning districts. Established Policy and Procedures The construction of an accessory dwelling unit on a residentially zoned lot is permitted subject to the provisions established by the City of Miami Gardens Land Development Regulations. This makes available inexpensive dwelling units to meet the needs of elderly and single very-low and low income individuals. 6. Reduction of Parking and Setback Requirements The reduction of parking and setback requirements for affordable housing. Established Policy and Procedures Affordable housing projects are afforded an opportunity to receive a reduction in parking and setback requirements by the City of Miami Gardens. Requests for reduction of parking and setback requirements in relation to the development of affordable housing must be developed following the standards established in the Land Development Regulations. 7. Zero-Lot-Line and Street Requirement Allowance The allowance of zero-lot-line configurations for affordable housing. Established Policy and Procedures The City of Miami Gardens has in its Land Development Regulations a plan for zero- lot-line development and allowances toward street requirements for affordable housing projects. The proposed project applications are reviewed by the Department of Planning and Zoning. The Department of Community Development will be responsible for certifying the extent to which the project is affordable. 8. Ongoing Review Process The establishment of a process by which local government considers, before adoption, policies, procedures, ordinances, regulations, or plan provisions that increase the cost of housing. City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan -20- Established Policy and Procedures The City of Miami Gardens has adopted policies which state that any regulation being proposed that could potentially increase the estimated housing cost per unit, will be reviewed by the Department of Planning and Zoning and the Department of Code Enforcement. These groups will consider the effect of the proposed activity and its effects on the cost of housing prior to their recommendation to the City Council. City Council will consider the financial impact before making its decision on adopting the proposed regulation. 9. Surplus City Owned Land Inventory The preparation of a printed inventory of locally owned public lands suitable for affordable housing. Established Policy and Procedure The City of Miami Gardens Department of Community Development will maintain an inventory of all surplus City-owned land and foreclosed properties that could be used for affordable housing. The City will make this list available to all for-profit and not-for-profit affordable housing developers. 10. Affordable Housing Advisory Committee The City of Miami Gardens has established an Affordable Housing Advisory Committee to review its housing policies and procedures, ordinances, land development regulations, and adopted local government comprehensive plan of the appointing local government. They will be asked to recommend specific initiatives to encourage or facilitate affordable housing while protecting the ability of the property to appreciate in value. The composition of this committee will be in accordance with the F.S. 420.9072 and appointed by the City's Council Members, the committee members and their terms will be adopted by way of Resolution. If the City is unable to appoint a citizen actively engaged in these activities in connection with affordable housing either because of the presence of a conflict of interest by prospective appointees, or any other reasonable factor, the City will appoint a citizen engaged in the activity without regard to affordable housing, as allowed by statute. City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan -21- EXHIBITS: A. Administrative Budget for each fiscal year covered in the Plan. Exhibit A. B. Timeline for Encumbrance and Expenditure: Chapter 67-37.005(6)(d) and (~ F.A.C. A separate timeline for each fiscal year covered in this plan is attached as Exhibit B. Program funds will be encumbered by June 30t", one year following the end of the applicable state fiscal year. Program funds will be fully expended within 24 months of the end of the applicable State fiscal year. C. Housing Delivery Goals Chart (HDGC) For Each Fiscal Year Covered in the Plan: Chapter 67-37.005), F.A.C. Completed HDGC for each fiscal year is attached as Exhibit C. D. Certification Page: Chapter 67-37.005(7), F.A.C. Signed Certification is attached as Exhibit D. E. Adopting Resolution: Section 420.9072(2)(b)2, Fs. Original signed, dated, witnessed or attested adopting resolution is attached as Exhibit E. F. Program Information Sheet: Completed program information sheet is attached as Exhibit F. G. Ordinance: Section 420.9072(3)(a), Fs. Exhibit G. H. Ordinance: Section 420.9076 F.S. Exhibit H. I. Interlocal Agreement: Section 420.9072, Fs. N/A City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan -22- City of Miami Gardens Administrative Budget for Each Fiscal Year 2007/2008, 2008/2009, 2009/2010 Fiscal Year 2007-2008 Salaries and Benefits $ 50,000.00 .Office Supplies and Equipment $ 6,674.40 Travel Perdiem Workshops, etc $ 2,500.00 Advertising $ 2,500.00 $ 61,674.40 Fiscal Year 2008-2009 Salaries and Benefits $ 50,000.00 Office Supplies and Equipment $ 6,674.40 Travel Perdiem Workshops, etc $ 2,500.00 Advertising $ 2,500.00 $ 61,674.40 Fiscal Year 2009-2010 Salaries and Benefits $ 50,000.00 Office Supplies and Equipment $ 6,674.40 Travel Perdiem Workshops, etc $ 2,500.00 Advertising $ 2,500.00 $ 61,674.40 Based on a distribution of $616,744.00 Exhibit A City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan O O N Of O O N Of 0 0 N N O O N n 0 0 N Q V LL W Q H N O LL W J m W H N~ O m K r e x x x V O X X x O X x x X r X X .o X X a S N g N N x x X X P x x X r X X X P Y 8 N 5 Ki ~ x X X ° X P X ~ x r x x A ~ C ~ ~ m ~° .'$ m > Q ~ a ¢ ~ LL ~ ¢ ~ ~ m ~ $ ~ a m o n ¢° E ~' a y~y 41 ~ ~ ~ d` !3 mm L ~ S ~ ~ y y E ~ E ^ s ~ ~ i c w` C m ~ c n ~ W ~ O m ~ ° $ u'f . ; ~ E g' m i~ 01 j. c_ H a ai ~ 9 m y C O L m m C N O ~. ~ m m a A ~ V a a a £ R m ~ o c 'd a a w T .~ F J 9 d 9 7 u C .~ a s 0 r N ~.t~ A A 3 0 E E c_ E A Q O ._ a C O a u .a a v c m N O a A .~ A m Q ~i.' a E a V1 LL 2 LL C a A c a r E a N ~- N M a . .. -. . ... _ __ . ... .. 0 N .- ~ 0 O O O M O O 0 0 O O (O X LL a C O ~ C ' K ~ O ~ ~ I ~ 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o r m ~ O co M o N M c~ O 0 O 0 O 0 O 0 O 0 d 3 O 0 O 0 O 0 0 0 0 0 0 0 0 0 0 0 0 0 O 0 o o I i 0 n W C m ~ ~ N c0 O O O O ~ C y O O O 0 0 0 0 0 0 00 ~ ~ ( . 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L c O = ` E a r c E ~ ` d ~ a ~ rn m d ' W O ~ c ~ ~ y ~ ~ ~ ~ W ~ ~ a c o ~ ~ m c J m ~ $ c ; ~ y : o ~ ' ° ~ w H O FQ-W a a a a a o E c o V C S m m m U' 3 ` °-; 1 a E ¢ a W ~~ Z Z Z Z Z x aqi ~ a ~ m Q a c E E i6 O v , :. - 10 o a E a~ c 1i o Q ~ E d O O O O W y te t 2 Z o a L ~ a C ~ R V C £ C ~ r a ' i~ ~ N a' V d C ~ I N ` O c h e V K ` ~ 3 0 r V. O = W F' m m y m 3 ~ I ~ w LL ~ ~ ' d ~ 7 Q J C ~ J d ~ E 5 rn A m O I p c c y ~ ~ d i d ~ 3 ~ ~, ~ N a ~ 'o E m o > > ~ ~ o J O ~ O Z S W R Z fA fA Q a 2 ~ ~ ~ ' _ m° Exhibit D CERTIFICATION TO FLORIDA HOUSING FINANCE CORPORATION Name of Local Government: Cit of Miami Gardens (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 race, creed, religion, color, age, sex, familial or marital status, handicap, or national origin. (3) A process for selection of recipients for funds has been developed. (4) The eligible municipality or county has developed a qualification system for applications for awards. (5) Recipients of funds will be required to contractually commit to program guidelines. (6) The Florida Housing Finance Corporation will be notified promptly if the local government (or interlocal entity) will be unable to comply with the provisions the plan. (7) The Local Housing Assistance Plan shall provide for the expenditure of SHIP funds within 24 months following the end of the State fiscal year in which they are received. (8) The plan conforms to the Local Government Comprehensive Plan, or that an amendment to the Local Government Comprehensive Plan will be initiated at the next available opportunity to insure conformance with the Local Housing Assistance Plan. (9) Amendments to the approved Local Housing Assistance Plan shall be provided to the Corporation with in 21 days after adoption. (10) The trust fund shall be established with a qualified depository for all SHIP funds as well as moneys generated from activities such as interest earned on loans. (11) Amounts on deposit in the local housing assistance trust fund shall be invested as permitted by law. (12) The local housing assistance trust fund shall be separately stated as a special revenue fund in the local governments audited financial statements, copies of the audits will be forwarded to the Corporation as soon as available. 13) An interlocal entity shall have its local housing assistance trust fund separately audited for each state fiscal year, and the audit forwarded to the Corporation as soon as possible. City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan 1 Exhibit D 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 SHIP and the Low Income Housing Tax Credit (LIHTC) Program shall comply with the income, affordability and other LIHTC requirements, Similarly, any units receiving assistance from other federal programs shall comply with all Federal and SHIP program requirements. (16) Loans shall be provided for periods not exceeding 30 years, except for deferred payment loans or loans 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 tenant income requirements and affordability requirements or as required in Section 420.9075 (3)(e) (18) The Plan meets the requirements of Section 420-907-9079 FS, and Rule Chapter 67-37 FAC, and how each of those requirements shall be met. (19) The provisions of Chapter 83-220, Laws of Florida has or has not been implemented. Witness Witness Date OR Attest: (Seal) Chief Elected Official or designee Mayor Shirley Gibson Type Name and Title City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan 2 Exhibit F STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM INFORMATION SHEET LOCAL GOVERNMENT: CITY OF MIAMI GARDENS CHIEF ELECTED OFFICIAL (Mayor, Chairman, etc.): MAYOR SHIRLEY GIBBON ADDRESS: 1515 N.W. 167 Street Bld . 5 Suite 200 Miami Gardens FL 33169 SHIP ADMINISTRATOR: ELIZABETH VALERA ADDRESS: 1515 N.W. 167 Street Bld . 5 Suite 200 Miami Gardens FL 33169 TELEPHONE:(305) 622-8041 FAX:( 305) 622-8046 EMAIL ADDRESS: Evalera miami ardens-fl. ov ADDITIONAL SHIP CONTACTS: DANIEL ROSEMOND ADDRESS: 1515 N.W. 167 Street Bld . 5 Suite 200 Miami Gardens FL 33169 EMAIL ADDRESS: Drosemond miami ardens-fl. ov 1NTERLOCAL AGREEMENT: YES/NO~IF yes, list other participants in the inter-local agreement): The following information must be furnished to the Corporation before any funds can be disbursed. LOCAL GOVERNMENT EMPLOYER FEDERAL ID NUMBER: 11-3695944 MAIL DISBURSEMENT TO: ADDRESS: OR:IF YOUR FUNDS ARE ELECTRONICALLY TRANSFERRED PLEASE COMPLETE THE ATTACHED FORM: ^ NO CHANGE FROM PREVIOUS ELECTRONIC FORM SUBMITTED. Provide any additional updates the Corporation should be aware of in the space below: Please return this form to: SHIP PROGRAM MANAGER, FHFC 227 N. BRONOUGH ST, STE 5000 TALLAHASSEE, FL 32301 Fax: (850) 922-7253 City of Miami Gardens 2007-2010 SHIP Local Housing Assistance Plan