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Item C32County of Monroe A BOARD OF COUNTY COMMISSIONERS Mayor George Neugent, District 2 The Florida. Key y w) Mayor Pro Tem David Rice, District 4 �r Danny L. Kolhage, District I Heather Carruthers, District 3 Sylvia J. Murphy, District 5 County Commission Meeting January 18, 2017 Agenda Item Number: C.32 Agenda Item Summary #2568 BULK ITEM: Yes DEPARTMENT: Social Services TIME APPROXIMATE: STAFF CONTACT: Sheryl Graham (305) 292 -4510 N/A AGENDA ITEM WORDING: Approval of a resolution of the Monroe County Board of County Commissioners to revise the Monroe County State Housing Initiative Partnership Program (SHIP) /Weatherization Assistance Program (WAP) SHIP /WAP REHABILITATION Strategy mortgage documents to remove Hazard Insurance requirements. ITEM BACKGROUND: SHIP currently provides up to $20,000.00 as a grant for the SHIP /WAP strategy in addition to an additional $15,000.00 as a forgivable loan. Presently, SHIP Note and Mortgage documentation require SHIP loan recipients to provide proof of hazard insurance. The SHIP Program, Florida Statute and Rule do not require any form of insurance be provided by the homeowner. MCHA recommends the hazard insurance provision be deleted since these properties are free and clear of any liens. PREVIOUS RELEVANT BOCC ACTION: BOCC Approval of Resolution 191 -2016 and MCHA LHAP 2017 - 2018 -2019 CONTRACT /AGREEMENT CHANGES: Resolution to remove Hazard Insurance STAFF RECOMMENDATION: Approval DOCUMENTATION: SHIP Resolution 1 -03 -17 SHIP Resolution BACKUP 1 -03 -17 FINANCIAL IMPACT: Effective Date: 01/18/2017 Expiration Date: Total Dollar Value of Contract: N/A Total Cost to County: N/A Current Year Portion: Budgeted: Source of Funds: MC SHIP CPI: Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: No Grant: No County Match: Insurance Required: Additional Details: If yes, amount: REVIEWED BY: Sheryl Graham Completed 01/03/2017 3:23 PM Pedro Mercado Completed 01/03/2017 3:27 PM Budget and Finance Completed 01/03/2017 3:58 PM Maria Slavik Completed 01/03/2017 4:10 PM Kathy Peters Completed 01/03/2017 5:04 PM Board of County Commissioners Completed 01/18/2017 9:00 AM WHEREAS, the State of Florida enacted the William E. Sadowski Affordable Housing Act, Chapter 92-317 • Florida Sessions Laws, allocating a portion of 1ocumentary stamp taxes on deeds to local government for the development and maintenance of affordable housing; and WHEREAS, the State Housing Initiatives Partnership (SHIP) Act, SS. 420.907- 420.9079, Florida Statutes (1992), and Rule Chapter 67-3 7, Florida Administrative Code, required local governments to develop a one to thrce-year local Housing Assistance Plan outlining how funds will be used; and WHEREAS, the Monroe County Board of County Commissioners approved the Assistance Plan (1,U_AP). by Resolution 191-2016 on August 17, 2016; and WHEREAS, the State Housing Initiative Partnership Program, Rule or Statute does not require eligible homeowners to procure hazard insurance and the current SHIP/WAP REHABILITATION mortgage template, Item #3 Hazard Insurance, being utilized contains language to this effect; and WHEREAS, the majority of SHIP/WAP clients do not have first mortgages on their properties and are very low and low income residents; and WHEREAS, the SHIP/WAP Rehabilitation notes are forgivable at maturity and do not exceed $15,000 per household; and I - : 6 . I a wdkyj�� a F w TI3 M sillily AINNO _A1161(mg, Approves the deletion offtem #3 Hazard Insurancefrom the Monroe ounty z . . RD I I I . .- it 1 « > x. < . < « —©? V.1 its I to 151 iln#T41 VW n7 I2FIRIF-1 Mayor George Neugent Mayor Pro Tem David Rice Commissioner Danny Kolhage Commissioner Heather Carruthers Commissioner Sylvia Murphy ATrEST: MONROE COUNTY CLERK BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA L'. "' AC)E ('"3C)L 1—D D R 0 AS9 STAN CA6 ki The U.S. Department of Energy created the Weatherization Assistance Program (WAP) to assist homeowners by providing repairs/improvements to their homes to reduce energy consumption. The maximum grant award was $6,500, and the initial income eligibility was 150% of the poverty level, which was subsequently increased to 200% of the poverty level and is now $7105. In 2010, WAP funding was dramatically increased as a part of our Federal government's "stimulus" recovery program. Monroe County Social Services was responsible for the program and was able to assist over 97 households. The most surprising aspect of the community response to the program was the people who were applying. The vast majority were born, raised, and retired in Monroe County. Additionally, another market emerged which were retired military who had been stationed in the Florida Keys and had returned to work and retire here. It was recently discovered that the current SHIP Note and Mortgage requires SHIP loan recipients to provide proof of hazard insurance. Based on the age of our typical SHIP/WAP recipient and the length of time they have owned their home, they have almost exclusively paid off their mortgage and most have chosen not to pay the astronomical insurance premiums required in Monroe County. The SHIP Program, Florida Statute and Rule do not require any form of insurance be provided by the owner. This is typically a first mortgagee requirement. The reason this requirement is reflected at all is because when the current Monroe County SHIP/WAP note and mortgage was developed, it was done so using the template from the Community Development Block Grant Note and Mortgage (CDBG), and that particular program does require insurance. We recommend that the SHIP/WAP note and mortgage insurance provision be deleted since virtually all of these properties are free and clear of any liens. This will be in line with the SHIP Program, Florida Statute and Rule which do not require that any form of insurance be provided by the home owner. Further, the County will recover SHIP funding upon the settlement of any estate or sale of property.