Item O2
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: May 18, 2005
Division: Monroe County Housing Authority
Bulk Item: Yes XX
No
Department: Special Programs Office
AGENDA ITEM WORDING: A resolution of the Board of County Commissioners of Monroe
County, Florida approving the waiver of certain SHIP Rental Strategy Program requirements not
permitted under existing United States Department of housing and Urban Development
contractual agreements with the Housing Authority of the City of key west, Florida.
ITEM BACKGROUND: The Monroe County Board Of County Commissioners approved by
Resolution 016-2005, the SHIP Rental Strategy Program. The program is designed to create new
rental units principally for the very low-and low-income households, The Rental Strategy terms
and conditions require a note and a mortgage against the newly created units. This is not
permitted under existing contractual agreements between the KWHA and HUD, Because
KWHA's primary mission and statutory requirement as a government agency to provide
affordable housing to the very low- and low-income residents in its service area, in perpetuity
and has the same set aside requirements, the KWHA is requesting approval of a waiver to this
proVIsIOn,
PREVIOUS RELEVANT BOCC ACTION: Adoption of Resolution 016-2005, January 19,
2005, approving a SHIP rental Strategy Program,
CONTRACT/AGREEMENT CHANGES: None,
STAFF RECOMMENDATION: Approval of this resolution for waiver of the SHIP Rental
Strategy terms and conditions that require a note and mortgage against the newly created rental
units,
TOT ALS COST:
$0,00
BUDGETED: Yes X
No
COST TO COUNTY:
$0,00
SOURCE OF FUNDS:
N/A
REVENUE PRODUCING: Yes
No X
AMOUNT PER: Month
Year
APPROVED BY:
en ing _ Risk Management _
DEPARTMENT APPROVAL:
J, Ma stillo, Sr" Executive Director
Mo e County Housing Authority
DOCUMENTATION:
Included XX To Follow
Not Required_
DISPOSITION:
AGENDA ITEM #
RESOLUTION NO. _-2005
A RESOLUTION OF THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA
APPROVING THE WAIVER OF CERTAIN SHIP RENTAL
STRA TEGY PROGRAM REQUIREMENTS NOT
PERMITTED UNDER EXISTING UNITED STATES
DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT CONTRACTUAL AGREEMENTS WITH
THE HOUSING AUTHORITY OF THE CITY OF KEY
WEST, FLORIDA
WHEREAS, the Monroe County Board of County Commissioners (BOCC) approved the
attached SHIP Rental Program Strategy by Resolution 016-2005, January 19,2005; and,
WHEREAS, the Monroe County Special Programs Office (SPO) advertised the availability of
SHIP Rental Program Strategy funding in the form of a Request for Proposal (RFP) from
February 12,2005 to March 15,2005; and,
WHEREAS, the Housing Authority of the City of Key West, Florida (KWHA) was the only
applicant to respond to the RFP; and,
WHEREAS, KWHA was established pursuant to Federal Housing Regulations and Florida
Statute Chapter 421 and is a body politic, and,
WHEREAS, KWHA has determined that the Rental Strategies terms and conditions requiring a
note and mortgage, which is forgiven at maturity is not permitted under existing contractual
agreements with the United States Department of Housing and Urban Development (RUD); and,
WHEREAS, the RUD ACC is in perpetuity and places the same set aside requirements for very
low and low-income households on the Authority as SHIP; and,
WHEREAS, KWHA's primary mission and Statutory Requirement as a governmental agency is
to provide affordable housing to the very low and low-income residents in its service area,
NOW, THEREFORE, BE IT RESOLVED, by the Board of County Commissioners of
Monroe County, Florida that the County hereby:
Approves waiving the SHIP Rental Strategies Program requirement of a note and recordation of
a mortgage against KWHA property and accepts in lieu of the note and mortgage, an affidavit to
be submitted annually to the County detailing compliance with SHIP Rental Strategies Program
requirements,
PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida
at a regular meeting of said board held on day of , A.D., 2005,
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By:
Mayor Spehar
Mayor Pro Tern McCoy
Commissioner Nelson
Commissioner Neugent
Commissioner Rice
MAYOR
(SEAL)
ATTEST:
DANNY KOLHAGE, CLERK
By:
Deputy Clerk
Approved as tofonn ..~. n · ~are: f) ~S
RESOLUTION NO.
016 _ 2005
~)
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY,
FLORIDA, APPROVING AN AMENDMENT TO MONROE COUNTY'S STATE HOUSING INITIATIVE
PARTNERSIDP (SHIP) PROGRAM, LOCAL HOUSING ASSISTANCE PLAN (LHAP) FOR STATE OF
FLORIDA FISCAL YEARS 2004-2005, 2005-2006, 2006-2007.
WHEREAS, the State Housing Initiatives Partnership (SHIP) Act, ss, 420,907 - 420,9079, Florida Statues (1992) and Rule
Chapter 67-37, Florida Administrative Code, requires local governments to develop a Local Housing Assistance Plan (LHAP)
outlining how funds will be used; and,
WHEREAS, the Monroe County's Local Housing Assistance Plan for the State of Florida fiscal years 2004-2005, 2005-2006,
2006-2007 was previously adopted by the Monroe County Board of County Commissioners and approved by the Florida
Housing Finance Corporation; and,
WHEREAS, the Monroe County Housing Authority, Administrator of the Monroe County's State Housing Initiative
Partnership Program. is recommending approval of the attached amendment in order to equitably provide for the funding of
rental projects, maximizing the public purpose use of said funds and meet expenditure requirements within F.S, 420.907 -
420.9079.
NOW, THEREFORE, BE IT RESOLVED, by the Board of County Commissioners of Monroe County, Florida, that the
County hereby:
Approves the Amendment to the Monroe County State Housing Initiatives Partnership (SHIP) Program,
Local Housing Assistance Plan (LHAP), attached hereto as "Exhibit A ", describing the type of assistance
, selection criteria, income levels and other conditions necessary to apply and qualify for Monroe County
SHIP Program funding under the UlAP's Rental Strategy.
PASSED AND ADOPTED, by the Board of County Commissioners of Monroe County, Florida, at a regular meeting on said
Board on the 19th day of January, A.D., 2005.
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
Mayor Spehar Yes
Mayor Pro TemMcCoy YeA
Commissioner Nelson YII'!A
<;~ssiOflCl' .~eugent v,.. a
./CodlMissioner Rice Y91l
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;~.'~TII!:S!; D~F KOHLAGE
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Deputy Clerk .
By:
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Mayor Dixie Spehar
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Approved as to form and legal sufficie
TANT ~N~TTORNEY
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EXHIBIT A
B. RENTAL STRATEGIES
Name: CONSTRUCTION/REHABILIT A TION
Description:
Funds provided for the construction or rehabilitation of affordable
housing rental units. .
Fiscal Years:
2004-2005,2005-2006 and 2006-2001
Income Level:
. Very low, low and moderate (tenants)
Selection Criteria:
Priority shall be given to applicants in the following order until all
available funding is committed/expended:
Priority # 1. Applications proposing the creation of new rental
units by construction or rehabilitation, ranked in the following
order:
la. Proposing the longest period of atfordability
1 b. Units serving very low-income tenants
Ie. Units serving substantially (%) very low-income
tenants
Id. Serving low-income tenants
Ie. Serving substantially (%) low-income tenants
1 f. Serving moderate-income tenants
The tiebreaker within priority # 1 shall be the lowest SHIP per unit
cost.
Priority #2 Applications proposing the rehabilitation of existing
affordable rental units, ranked in the following order:
2a. Proposing the longest period of atfordability
2b. Serving very low-income tenants
2c. Serving substantially (%) very low-income tenants
2d. Serving low-4tcome tenants
2e. Serving substantially (%) low-income tenants
2f. Serving moderate-income tenants
The tiebreaker within priority #2 shall be the lowest SHIP per unit
cost.
Type of Assistance:
FOR PROFIT ENTITIES
For profit entities proposing construction/rehabilitation in
conjunction with Florida Housing Finance Corporation (FHFC)
funding are eligible for loans secured by a mortgage up to $40,000
or that amount sufficient to satisfy the FHFC local contribution
portion of the FHFC program, whichever is less. The loan is at an
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Monroe County LHAP
Revision 1 (01/05)
C'
)
interest rate of 3% with a minimum term of fifteen (15) years.
Principal and interest is due upon maturity.
For profit entities proposing construction/rehabilitation are eligible
for mortgages up to $40,000 per unit. The loan is at an interest rate
of 3% with a minimum term of fifteen (15) years. Principal and
interest is due upon maturity. The loan may be extended in
conjunction with an extension of the SHIP Rental Monitoring
Agreement.
NON PROFIT ENTITIES
Non-profit entities proposing construction/rehabilitation in
conjunction with Florida Housing Finance Corporation (FHFC)
funding are eligible for loans secured by a mortgage up to $40,000
The loan is at an interest rate of 0% with a minimum term of
fifteen (15) years. PrinCipal balance is forgiven at maturity.
Non-profit entities proposing construction/rehabilitation are
eligible for mortgages up to $40,000 per unit or that amount
sufficient to satisfy the FHFC local contribution portion of the
"FHFC program, whichever is less. The loan is at an interest rate of
0% with a minimum term of fifteen (15) years. Principal balance
is forgiven at maturity. The loan may be extended in conjunction
with an extension of the SHIP Rental Monitoring Agreement.
Recapture:
Due and payable upon sale or transfer of the property, termination
of the long term lease (greater than 15 years), failure to comply
with the terms of the SHIP Rental Monitoring Agreement or Land
Use Restriction Agreement (LURA) as specified above.
Other:
All entities funded under this strategy will be required to execute a
SHIP Rental Monitoring Agreement and Land Use Restriction
Agreement (LURA) for a minimum term of fifteen (15) years.
SHIP set aside units assisted under this strategy must maintain
rents that do not exceed the rent maximums published annually by
the Florida Housing Finance Corporation. SHIP recipients that
offer rental housing for sale within fifteen years of the SHIP award
must give a right of first refusal to eligible non-profit organizations
for purchase at the current market value for continued occupancy
by eligible persons.
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Monroe County LHAP
Revision 1 (01105)