Item C20 C.20
i�`
County of Monroe
�y,4 ' ?, "tr, BOARD OF COUNTY COMMISSIONERS
Mayor Michelle Coldiron,District 2
�1 nff `_ll Mayor Pro Tem David Rice,District 4
-Ile Florida.Keys Craig Cates,District 1
Eddie Martinez,District 3
w Mike Forster,District 5
County Commission Meeting
April 21, 2021
Agenda Item Number: C.20
Agenda Item Summary #7987
BULK ITEM: Yes DEPARTMENT: Social Services
TIME APPROXIMATE: STAFF CONTACT: Sheryl Graham (305) 292-4510
None
AGENDA ITEM WORDING: Approval of Land Use Restriction Agreements (LURAs) for the
State Housing Initiatives Partnership (SHIP) Program for the purpose of guaranteeing a 15 year
affordability period for the property referenced at 5530 3rd Avenue, Key West, FL 33040,
otherwise known as "L'Attitudes".
ITEM BACKGROUND: As a condition of receipt of the State Housing Initiatives Partnership
(SHIP) Program award, the eligible recipient of rental rehabilitation assistance must contractually
commit to comply with the affordable housing criteria provided under FS.420.907-420.9079
applicable to the affordable housing objectives of the award. The plan criteria adopted by the
County must prescribe the contractual obligations required to ensure compliance with award
conditions.
PREVIOUS RELEVANT BOCC ACTION: State Housing Initiatives Partnership (SHIP)
Program Local Housing Assistance Plan (LHAP) was approved on 4/15/2020 by the BOCC.
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION: Approval
DOCUMENTATION:
LURA Backup
LAttitudes LURA
FINANCIAL IMPACT:
Effective Date: 04/21/2021
Expiration Date: 04/21/2036
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Total Dollar Value of Contract: 0
Total Cost to County: 0
Current Year Portion: 0
Budgeted: 0
Source of Funds: N/A
CPI: 0
Indirect Costs: 0
Estimated Ongoing Costs Not Included in above dollar amounts: 0
Revenue Producing: 0 If yes, amount: N/A
Grant: N/A
County Match: 0
Insurance Required: No
Additional Details: No
NA
REVIEWED BY:
Sheryl Graham Completed 04/08/2021 10:16 AM
Pedro Mercado Completed 04/08/2021 10:29 AM
Purchasing Completed 04/08/2021 10:35 AM
Budget and Finance Completed 04/08/2021 11:48 AM
Maria Slavik Completed 04/08/2021 11:58 AM
Liz Yongue Completed 04/08/2021 12:03 PM
Board of County Commissioners Pending 04/21/2021 9:00 AM
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F. AFFORDABLE RENTALUNITS—REHABILITATION DISASTERRELIEF o a 176
a. Summary of Strategy: Funds will be provided for the rehabilitation of affordable
rental units affected by a natural disaster as declared by executive order signed by
the President or Governor.
b. Fiscal Years Covered: 2019-2020-2020-2021-2021-2022
c. Income Categories: Very Low, Low and Moderate
d. Maximum award: $35,000 per unit
e. Terms:
1. Deferred loan: Secured by a recorded note and mortgage and Land
Use Agreement(LURA)
2. Interest Rate: 0%
3. Term: Fifteen (15)years N
. Forgiveness:The loan balance will be forgiven at maturity.
5. Repayment: None due if the loan is in good standing.
6. Default: Principal and interest shall be due upon the sale or transfer of
the property. If during the affordability period the property is sold or
transferred to an eligible nonprofit organization approved by the County
that agrees to execute all SHIP loan documents for the affordability
period originally specified, no payment is due on the loan.
f. Recipient Selection Criteria: Tenants will be processed on a "First Qualified, First
Served" basis.
g. Sponsor/Developer Selection Criteria: Priority will be given to non-profit
sponsors who own deed and income restricted properties in need of repair as a
result of a natural disaster for the preservation of assisted housing units and
long term affordability for very low, low and moderate income tenants, ca
h. Additional Information: Eligible costs include all hard and soft costs associated
with the rehabilitation of the property.
MC SHIP LHAP REVISED APRIL 15,2020
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(5)(a) Local governments are encouraged to make the most efficient use of their resources by
cooperating to provide affordable housing assistance.Local governments may enter into an interiocal
agreement for the purpose of establishing a joint local housing assistance plan subject to the requirements
of ss.420.907-420.9079.The local housing distributions for such counties and eligible municipalities shall be
directly disbursed on a monthly basis to each county or eligible municipality to be administered in
conformity with the interiocal agreement providing for a joint local housing assistance plan.
(b) If a county or eligible municipality enters into an interiocal agreement with a municipality that
becomes eligible as a result of entering into that interiocal agreement,the county or eligible municipality
that has agreed to transfer the control of funds to a municipality that was not originally eligible must ensure
through its local housing assistance plan and through the interlocal agreement that all program funds are
used in a manner consistent with ss.420.907-420.9079.This must be accomplished by:
1. Providing that the use of the portion of funds transferred to the municipality meets all requirements
of ss.420.907-420.9079,or
2. Providing that the use of the portion of funds transferred to the municipality, when taken in
combination with the use of the local housing distribution from which funds were transferred, meets all
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requirements of ss.420.907-420.9079.
(6) The moneys that otherwise would be distributed pursuant to s.420.9073 to a local government that o
does not meet the program's requirements for receipts of such distributions shall remain in the Local
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Government Housing Trust Fund to be administered by the corporation. W
(7)(a) A county or an eligible municipality must expend its portion of the local housing distribution only y
to implement a local housing assistance plan or as provided in this subsection.
(b) A county or an eligible municipality may not expend its portion of the local housing distribution to
provide ongoing rent subsidies,except for:
1. Security and utility deposit assistance.
2. Eviction prevention not to exceed 6 months'rent.
3. Arent subsidy program for very-low-income households with at least one adult who is a person with
special needs as defined in s.420.0004 or homeless as defined in s.420.621.The period of rental assistance
may not exceed 12 months for any eligible household.
(8) Funds distributed under this program may not be pledged to pay the debt service on any bonds.
(9) The corporation shall adopt rules necessary to implement ss.420.907-420.9079.
1 10) Notwithstanding ss.420.9071(26)and 420.9075(5)and subsection(7),for the 2016-2017 fiscal
year:
(a) The term"rent subsidies"means ongoing monthly rental assistance.
(b) Up to 25 percent of the funds made available in each county and each eligible municipality from the
local housing distribution may be used for rental assistance and rent subsidies as provided in paragraph(c).
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5. Advocates for low-income persons,including,but not limited to, homeless people,the elderly,and
migrant farmworkers.
6. Real estate professionals.
7. Other persons or entities who can assist in providing housing or related support services.
8. Lead agencies of local homeless assistance continuums of care.
(b) The specific participants in partnership activities may vary according to the community's resources
and the nature of the local housing assistance plan.
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(3)(a) Each local housing assistance plan shall include a definition of essential service personnel for the
county or eligible municipality,including,but not limited to,teachers and educators, other school district,
community college,and university employees,police and fire personnel,health care personnel,skilled
building trades personnel,and other job categories.
(b) Each county and each eligible municipality is encouraged to develop a strategy within its local
housing assistance plan that emphasizes the recruitment and retention of essential service personnel.The
local government is encouraged to involve public and private sector employers.Compliance with the �
eligibility criteria established under this strategy shall be verified by the county or eligible municipality.
(c) Each county and each eligible municipality is encouraged to develop a strategy within its local
housing assistance plan that addresses the needs of persons who are deprived of affordable housing due to
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the closure of a mobile home park or the conversion of affordable rental units to condominiums.
(d) Each county and each eligible municipality shall describe initiatives in the local housing assistance
plan to encourage or require innovative design,green building principles,storm-resistant construction,or y
other elements that reduce long-term costs relating to maintenance,utilities,or insurance.
(e) Each county and each eligible municipality is encouraged to develop a strategy within its local
housing assistance plan which provides program funds for the preservation of assisted housing.
(f) Each county and each eligible municipality is encouraged to develop a strategy within its local
housing assistance plan which provides program funds for reducing homelessness.
(g) Local governments may create regional partnerships across jurisdictional boundaries through the
pooling of appropriated funds to address homeless housing needs identified in local housing assistance
plans.
(4) Each local housing assistance plan is governed by the following criteria and administrative
procedures:
(a) Each county,eligible municipality,or entity formed through interlocal agreement to participate in
the State Housing Initiatives Partnership Program must develop a qualification system and selection criteria
for applications for awards by eligible sponsors,adopt criteria for the selection of eligible persons,and adopt
a maximum award schedule or system of amounts consistent with the intent and budget of its local housing
assistance plan,with ss.420.907-420.9079,and with corporation rule.
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(b) 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.
(c) In accordance with the provisions of ss.760,20-760.37,it is unlawful to discriminate on the basis of
race,religion,color,age,sex,marital status,familial status,national origin,or handicap in the award
application process for eligible housing.
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(d) Asa condition of receipt of an award,the eligible sponsor or eligible person must contractually
commit to comply with the affordable housing criteria provided under ss.420.907-420.9079 applicable to
the affordable housing objective of the award.The plan criteria adopted by the county or eligible
municipality must prescribe the contractual obligations required to ensure compliance with award
conditions.
(e) The staff or entity that has administrative authority for implementing a local housing assistance plan
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assisting rental developments shall annually monitor and determine tenant eligibility or,to the extent
another governmental entity or corporation program provides periodic monitoring and determination,a
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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$10,000 or less is not subject to these 0
annual monitoring and determination of tenant eligibility requirements.
(5) The following criteria apply to awards made to eligible sponsors or eligible persons for the purpose
of providing eligible housing:
(a) At least 65 percent of the funds made available in each county and eligible municipality from the
local housing distribution must be reserved for home ownership for eligible persons.
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(b) Up to 25 percent of the funds made available in each county and eligible municipality from the local
housing distribution may be reserved for rental housing for eligible persons or for the purposes enumerated
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in s.420.9072(7)(b).
(c) At least 75 percent of the funds made available in each county and eligible municipality from the
local housing distribution must be reserved for construction,rehabilitation,or emergency repair of
affordable,eligible housing.
(d) Each local government must use a minimum of 20 percent of its local housing distribution to serve
persons with special needs as defined in s.420.0004.A local government must certify that It will meet this
requirement through existing approved strategies in the local housing assistance plan or submit a new local
housing assistance plan strategy for this purpose to the corporation for approval to ensure that the plan
meets this requirement.The first priority of these special needs funds must be to serve persons with
developmental disabilities as defined in s.393.063,with an emphasis on home modifications,including
technological enhancements and devices,which will allow homeowners to rernain independent in their own
homes and maintain their homeownership.
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(e) Not more than 20 percent of the funds made available in each county and eligible municipality from
the local housing distribution may be used for manufactured housing.
(f) The sales price or value of new or existing eligible housing may not exceed 90 percent 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 or as otherwise established by the United States
Department of the Treasury.
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(g)1. All units constructed,rehabilitated,or otherwise assisted with the funds provided from the local
housing assistance trust fund must be occupied by very-low-income persons, low-income persons,and
moderate-income persons except as otherwise provided in this section.
2. At least 30 percent of the funds deposited into the local housing assistance trust fund must be
reserved for awards to very-low-income persons or eligible sponsors who will serve very-low-income
persons and at least an additional 30 percent of the funds deposited into the local housing assistance trust
fund must be reserved for awards to low-income persons or eligible sponsors who will serve low-income m
persons.This subparagraph does not apply to a county or an eligible municipality that includes,or has
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included within the previous 5 years,an area of critical state concern designated or ratified by the
Legislature for which the Legislature has declared its intent to provide affordable housing.The exemption o
created by this act expires on July 1,2013,and shall apply retroactively
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(h) Loans shall be provided for periods not exceeding 30 years,except for deferred payment Loans or W
loans that extend beyond 30 years which continue to serve eligible persons.
(i) Loans or grants for eligible rental housing constructed,rehabilitated,or otherwise assisted from the
local housing assistance trust fund must be subject to recapture requirements as provided by the county or W
eligible municipality in its local housing assistance plan unless reserved for eligible persons for 15 years or
the term of the assistance,whichever period is longer.Eligible sponsors that offer rental housing for sale
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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.
(j} Loans or grants for eligible owner-occupied housing constructed,rehabilitated,or otherwise assisted
from proceeds provided from the local housing assistance trust fund shall be subject to recapture
requirements as provided by the county or eligible municipality in its local housing assistance plan,
(k) The total amount of monthly mortgage payments or the amount of monthly rent charged by the
eligible sponsor or her or his designee must be made affordable.
(1) The maximum sales price or value per unit and the maximum award per unit for eligible housing
benefiting from awards made pursuant to this section must be established in the local housing assistance
plan.
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(m) The benefit of assistance provided through the State Housing Initiatives Partnership Program must
accrue to eligible persons occupying eligible housing.This provision shall not be construed to prohibit use of
the local housing distribution funds for a mixed income rental development.
(n) Funds from the local housing distribution not used to meet the criteria established in paragraph(a)
or paragraph(c)or not used for the administration of a local housing assistance plan must be used for
housing production and finance activities,including,but not limited to,financing preconstruction activities
or the purchase of existing units,providing rental housing,and providing home ownership training to
prospective home buyers and owners of homes assisted through the local housing assistance plan.
1. Notwithstanding the provisions of paragraphs(a)and(c),program income as defined ins.
420.9071(24) may also be used to fund activities described in this paragraph.
2. When preconstruction due-diligence activities conducted as part of a preservation strategy show that
preservation of the units is not feasible and will not result in the production of an eligible unit,such costs
shall be deemed a program expense rather than an administrative expense if such program expenses do not
exceed 3 percent of the annual local housing distribution.
3. If both an award under the local housing assistance plan and federal low-income housing tax credits
are used to assist a project and there is a conflict between the criteria prescribed in this subsection and the
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enue Code of 1986,as amended,the county or eligible municipality 0
requirements of s.42 of the Internal Rev
may resolve the conflict by giving precedence to the requirements of s.42 of the Internal Revenue Code of
1986,as amended,in lieu of following the criteria prescribed in this subsection with the exception of
paragraphs(a)and(g)of this subsection.
4. Each county and each eligible municipality may award funds as a grant for construction,
rehabilitation,or repair as part of disaster recovery or emergency repairs or to remedy accessibility or health W
and safety deficiencies.Any other grants must be approved as part of the local housing assistance plan.
(6) Each county or eligible municipality receiving local housing distribution moneys shall establish and U
maintain a local housing assistance trust fund.All moneys of a county or an eligible municipality received
from its share of the local housing distribution,program income,recaptured funds, and other funds received
sing assistance plan shall be deposited into the trust fund;however,
or budgeted to implement the local hou
local housing distribution moneys used to match federal DOME program moneys may be repaid to the m
HOME program fund if required by federal law or regulations.Expenditures other than for the
administration and implementation of the local housing assistance plan may not be made from the fund.
(7) 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
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terminates,and any uncommitted local housing distribution funds held by the affected county or eligible
municipality in its local housing assistance trust fund shall be transferred to the Local Government Mousing
Trust Fund to the credit of the corporation to administer,
4.a. if the affected local government fails to meet the timeframes specified in the agreement,the
corporation shall terminate funds.The corporation shall send a notice of termination of the local
government's share of the local housing distribution by certified mail to the affected local government.The
notice shall specify the termination date,and any uncommitted funds held by the affected local government y
shall be transferred to the Local Government Mousing Trust Fund to the credit of the corporation to
administer.
b. if the corporation terminates funds to a county,but an eligible municipality receiving a local housing
distribution pursuant to an interlacal agreement maintains compliance with program requirements,the
rectly to the participating eligible municipality its share calculated in
corporation shall thereafter distribute di
the manner provided in ss.420.9072 and 420.9073.
c. Any county or eligible municipality whose local distribution share has been terminated may m
subsequently elect to receive directly its local distribution share by adopting the ordinance,resolution,and
local housing assistance plan in the manner and according to the procedures provided in ss.420.907
420.9079.
(14) if the corporation determines that a county or eligible municipality has expended program funds .2
for an ineligible activity,the corporation shall require such funds to be repaid to the loco{housing assistance
trust fund.Such repayment may not be made with funds from the State Housing Initiatives Partnership y
Program.
History.—s-32,ch.92-317;s.14,Ch.93-181;s.5,ch,95-153;s.9,dt.95-396;s.81,eh.97-103;s.37,Ch.97-167;s.15,c W
69;S.20,ch.2008-104;s.29,ch.2009
2000-353;s.14,ch.2001-98;s,7,ch,2002-160;s.24,ch.2004-243;s.23,ch.2006 ;s•
15,ch.2011-15;s.10,ch.2016-210. c8
420.9076 Adoption of affordable housing incentive strategies;committees.—
(1) Each county or eligible municipality participating in the State Housing Initiatives Partnership
Program,including a municipality receiving program funds through the county,or an eligible municipality
must,within 12 months after the original adoption of the local housing assistance plan,amend the plan to
include local housing incentive strategies as defined in s.420.9071(16).
(2) The governing board of a county or municipality shall appoint the members of the affordable
housing advisory committee.Pursuant to the terms of any interlocal agreement,a county and municipality
may create and jointly appoint an advisory committee.The local action adopted pursuant to s.420.9072
which creates the advisory committee and appoints the advisory committee members must name at least 8
but not more than 11 committee members and specify their terms.The committee must consist of one
representative from at least six of the categories below:
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system.The SHIP Annual Report system can be accessed at
(6)Local governments that have had an audit,review or investigation involving SHIP funds shall send the
Corporation a copy of any related report within 10 days of the issuance of such report.
Rulemaking Authority 420.9072(9)FS.Law Implemented 420.9075(5)FS.History—New 11-26-92,Amended 2-9-94,1-6-98,
Formerly 91-37.008,Repromulgoted 12-26-99,Amended 9-22-03,1-30-05,11-5-06,2-24-08,11-22-09 5-23-17.
Interfocal Entities.
(1)The interlocal agreement shall specify whether a single report for all jurisdictions or individual reports
for each participating local government shall be submitted pursuant to Section 420.9075(10),F.S.
l entity must:
(2)Eligible municipalities that intend to become a member of an established interloca
(a)Adopt an ordinance that creates the affordable housing advisory committee,establishes responsibility
for plan administration and,if applicable,establishes the local affordable housing trust fund.
(b)Adopt by resolution one local housing assistance plan and adopt by resolution the appointments to
the advisory committee. .�
(3) All members of the existing interlocal entity must adopt by resolution an amendment to the local
housing assistance plan to include the new eligible municipality.
Specific Authority 420.9072(9)FS. Law implemented 420.9072(5) FS. History—New 11-26-92,Amended 2 9 94, 1 6-98, N
Formerly 91-37.011,Amended 12-26-99,9-22-03,2-24-08 5-23-17.
compliance Monitoring for Housing Developed With SHIP Local Housing Distribution Funds. m
(1)The local government staff or entity with administrative authority for a local housing assistance plan
shall maintain a financial tracking system that ensures that the local housing distribution funds disbursed from
the local housing trust fund are expended in accordance with the set-aside requirements in Rule 67-37.007,
F.A.C., within deadlines established in subsection 67-37.005(5) (b) and (c), F.A.C. and in compliance with
Section 420.9075,F.S.Failure by the local government staff or entity with administrative authority to properly
track SHIP funds or reconcile the funds to the general ledger shall result in the local government being deemed
in non-compliance with the SHIP program.In this circumstance,the local government or administrative entity
shall be required to receive technical assistance through the Catalyst program, as an owner/occupant
(2)The combined household Annual Gross income of an applicant who is applying
of a residence shall be verified and certified by the SHIP program administrator or designee using one of the
following methods:
(a)Section 8 housing assistance payments programs in 24 C.F.R.part 5;or
(b)Adjusted gross income as defined for purposes of reporting under Internal Revenue Service Form 104
for individual federal annual income tax purposes.
(3)income shall be calculated by annualizing verified sources of income for the household as the amount
of income to e received in a household during the 12 months following the effective date ci the
nual Grass income,as
determination.Whichever income verification and certification method is used,the An
defined in Section 420.9071(4), F.S.,must be used and the SHIP Program income limits cannot be exceeded.
SHIP funds Expended on households that are determined to not be income qualified through a compliance
monitoring or audit shall be repaid in full to the local housing trust fund from non-SHIP funds to be reallocated
entity may be required
to an eligible SHIP activity.In this circumstance,the local government or administrative
to receive technical assistance through the Affordable Housing Catalyst Program.
(4)The local government staff or entity with authority for administering a local housing assistance plan
assisting rental developments shall monitor annually, or to the extent another government entity or
Corporation program provides periodic monitoring,the local government may rely on that entity's monitoring
to determine tenant eligibility and the amount of subsidy using the same guidelines as specified at subsection
(2)above,at least annually for 15 years or the term of assistance,whichever is longer.The Corporation shall
monitor the activities of the local governments to determine compliance with program requirements as
defined in Section 420.9075(4)(e),F.S.
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Appendix F
Program ii i ill and Feasibility
A. Homeownership nits
1. Concurrent to the income qualification process is the determination of unit eligibility.For
assistance using SNIP funds,the unit must conform to the definition of"eligible housing"
as defined in Chapter 420.9071(8)of the Florida Statutes.All SHIP-assisted units must
comply with all Florida Building Code provisions outlined in Chapter 553 of the Florida
Statutes. For this reason,SHIP funds cannot be used to purchase or rehabilitate mobile
homes which are constructed to the HUD code.
2. Unit eligibility considers the value of the unit.Section 420.9075( )(c) of the Florida
Statutes indicates that"the sales price or value of new or existing eligible housing may not
exceed 90 percent of the average area purchase price in the statistical area in which the
eligible housing is located. Average area purchase price may be calculated for any 12-
month period beginning not earlier than the fourth calendar year prior to the year in
which the award occurs or as otherwise established by the United States Department of
the Treasury." The definitions section of the SHIP Statute outlines exactly how to N
determine the"sales price or value" of several types of units:
a. When a new or existing horse is purchased,the value is the amount on the m
executed sales contract.
b. For households building a unit on land they own,the sales price is determined by
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an appraisal performed by a state-certified appraiser. The appraisal must include
the value of the land and the improvements using the after-construction value of
the property and must be dated within 12 months of the date construction is to
commence.
c. For existing units being rehabilitated without the creation of additional living
space,the value is determined by a recent appraisal performed by a state-certified
appraiser or the assessed value of the real property as determined by the county
property appraiser.
d. For rehabilitated units that include the addition of new living space,value means
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the value of the real property plus the cost of the improvements.
3. There are unit eligibility criteria that are specific to rehabilitation activities. First,consider
whether the unit can be repaired up to the jurisdiction's locally adopted standard at a cost
that does not exceed the maximum per unit award that is stated in the Local Housing
Assistance Plan.Also,if SHIP funds are used on a unit along with CDI3C,HOME or other
federal funds,adherence to all applicable federal requirements,including but not limited
to federal lead based paint standards is also required. When combining different funding
sources,the strictest rule will apply.
B. Rental Units
1. There are also unit eligibility criteria specific to using SHIP funds on rental units.The
amount of monthly rent charged on the unit cannot exceed the rental limits for the
community,as published annually by the Florida Housing Finance Corporation.
Furthermore,the affordability of the rental unit must be maintained for at least 15 years
(Source;SHIP Rule Chapter 7-37. 07 (10)F.A.C.). However,any loan or grant in the
original amount of$10,000 or less shall not be subject to these annual monitoring and
determination of tenant eligibility requirements.
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C.Special Needs Housing
1. Some uncommon unit eligibility criteria apply to certain types of special needs housing.
Typically when SHIP funds are used on group homes,temporary housing,or transitional
housing,count each bed in the facility as a separate unit.These facilities are not
considered home ownership units. They must comply with all the provisions in the SHIP
Rule relating to rental housing(Chapter 7- 7. 0 (1 ) F.A. .). However, like all rental
property,the sales price or value of group homes,temporary housing, or transitional
housing may exceed the maximum sales price or value outlined in the Local Housing
Assistance Plan.
D.Program Eligibility
1. Determination of"program eligibility"must also occur concurrent to the income <
qualification process. Program eligibility considers if the assistance requested by the
applicant is an eligible activity under both the state's guidelines and the Local Housing
Assistance Plan.Some local jurisdictions impose additional eligibility criteria on SHIP
recipients that are not outlined in the SHIP Rule or Statute. For example,some local SHIP N
programs deny assistance to applicants who are not current on payment®fall municipal
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taxes and fees.
2. Consideration of program eligibility must also account for the Income,Homeownership m
and Construction/Rehabilitation "Set Asides"outlined in Chapter 420.9075( ) (a-d)of the
Florida Statutes.The SHIP Rule and Statute include set aside requirements that dictate
how SHIP funds must be spent. A minimum of 30 percent of the funds deposited into the
local housing assistance trust fund must assist very low-income persons. At the same
time,60 percent of all funds deposited in the housing trust fund must assist very low-or
low-income persons.This must be considered when screening new applicants. The SHIP
program could not currently help a moderate income applicant,for example,if the local y
jurisdiction's funds are nearly depleted and if the jurisdiction had not yet complied with
the Income Set Aside y expending t least 60 percent of FLIP funds on very low-and low-
income households.
3. The same consideration applies to the Home Ownership and Construction/Rehabilitation
Set Asides.At least 65 percent of the annual SHIP distribution and funds recaptured during
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the fiscal year must be devoted to homeownership(as opposed to rental)activities,while
at the same time at least 75 percent of the distribution "and recaptured funds" must be
devoted to either new construction or rehabilitation activities.Therefore,if a SHIP
program has already spent 10 percent of funds on administration and 25 percent of a
certain year's allocation on non-home ownership activities,it could not provide assistance
m
under a rental strategy from that particular year, Homeownership activities include
assistance to existing owner occupants as well as purchase assistance to new homebuyers.
E.Affordability Test
1. The program administrator must also perform an "affordability test"on recipients of SHIP
purchase assistance, as well as those living in SHIP-assisted rental units.
a. For SHIP-assisted rental units,the Florida Housing Finance Corporation annually
publishes maximum levels of rent that can be charged. This establishes a standard
of affordability for all SHIP-assisted renters.
100
Packet Pg. 1181
C.20.b
MONROE COUNTY STATE HOUSING INITIATIVES
PARTNERHIP PROGRAM ( 1
LAND USE ST CTIAGREEMENTILERAI
' ATTITUDES
This LAND USERESTRICTION N (L ) (hereinafter called the
"Agreement") is made and entered into as of this 21 St day of April,2021 between HABITAT FOR
HUMANITY OF KEY WEST AND LOWERFLORIDA KEYS, (hereinafter called the
"Owner") and MONROE COUNTY, a political subdivision of the State of Florida (hereinafter
called the "County").
WITNESETH
WHEREAS the County approved funding for HABITAT FOR HUMANITY OF KEY WEST
AND LOWER FLORIDA KEYS, through the County's State Housing Initiatives Partnership
Program (SHIP) for the purpose of rehabilitating LIATTITUDES, located on Stock Island in
Monroe County, Florida at: 5530 3rd Avenue, Key West, in the City of Key West,Florida, and the W
legal description as follows:
Lots 16 and 17, Block 54, according to McDonald's Plat of a part of Stock Island as recorded in
Plat Book 1,page SS, Public Records of Monroe County, Florida.
The Real Property or its address is commonly known as 5530 3rd Avenue, Key West, FL 33040.
The Real Property tax identification number is 1161179.
.2
WHEREAS, the County has agreed under certain conditions to issue a deferred forgivable loan
using SHIP funds to provide financing for preservation of affordable rental housing for very low y
and low-income persons located at 5530 3rd Ave, Stock Island, Florida, 33040, in Monroe
County, Florida,to be occupied by eligible persons as described Article 1.1 of the Agreement.
WHEREAS, in addition to any other requirements the County may impose incident to its W
mortgage,the Owner has agreed that all housing units shall be leased,rented or made available on
a continuous basis for rental to very low and low-income persons as described in Article 1.2 of the
Agreement.
WHEREAS, this Land Use Restriction is intended to ensure that the property be used in
accordance with the SHIP program.
W, THEREFORE, in consideration of the mutual covenants set forth herein and other good 03
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
County and the Owner do hereby contract and agree as follows:
AGREEMENT
ARTICLE 1. RENTAL HOUSING RESTRICTIONS
1.1 Occu a c
One hundred percent(100%) of the housing units must be set-aside for occupants who
upon initial occupancy of both units must have annual gross incomes equal to or below
eighty percent (80%) for the Monroe County, Metropolitan Statistical Area ( SA), as
determined by the US Department of Housing and Urban Development(HUD) on ail
annual basis.
Packet Pg. 1182
C.20.b
1.2 Income/Eligibility
The Owner shall determine and verify the income eligibility of tenants in accordance
with HUD Section 8 housing assistance programs in 24 CFR Part 5 for the Project.
Income shall be calculated by annualizing verified sources of income for the household
as the amount of income to be received by a household, during the 12 months, following
the effective date of the determination. The Annual Gross Income, as defined in Section
420.9071(4), F.S., must be used and the SHIP Program income limits cannot be
exceeded. The Owner shall maintain complete and accurate income records pertaining to
each tenant occupying a SHIP assisted unit. Onsite inspection as will be conducted
annually upon reasonable prior written notice to verify compliance with tenant income,
rents, and the minimum property standards as stated in Section 420.907-420.9079,
Florida Statutes and Rule 67-37, Florida Administrative Code, as they may be amended
from time to time.
1.3 SHIP Affordability
All housing units are subject to affordability limits established for SHIP assisted rental
units on an annual basis. W
N
1.4
Long-term Affordability E
The SHIP funds are subject to recapture during the affordability period if the property is
sold, transferred, etc. If the property is offered for sale prior to the end of the
affordability period,the Property shall be subject to the right of first refusal for purchase
at the current market value minus the grant award by eligible nonprofit organizations that
would provide continued occupancy by 80% and below AI tenants. The County shall
have ninety (90) days from the date of notification of intent to sell by the Owner to
identify an eligible non-profit. y
1.5 Housing Standards
Rental Units assisted with SHIP funds shall be maintained in compliance with local
building code requirements for the duration of the affordability period. The Owner shall
cooperate with the County by allowing on-site inspection of SHIP assisted units for
compliance with local code requirements.
ARTICLE CONSIDERATION
The County has authorized and issued a deferred forgivable loan to the Owner as an inducement
to the Owner to operate the units in the Project for the benefit of low-income households whose
incomes are equal to or less than eighty (80%)percent of median annual gross income for the 03
Monroe County, Metropolitan Statistical Area(MSA), as determined by the US Department of
Housing and Urban Development(HUD) on an annual basis, for a period of fifteen(15) years
following completion of the Project. In consideration of the issuance of the loan by the County
for the foregoing purposes,the County and Owner have entered into this Agreement.
ARTICLE III. RELIANCE
In performing its duties hereunder, the County may rely upon statements and certifications of the
Owner, believed to be genuine and to have been executed by the proper person or persons, and
upon audits of the books and records of the Owner pertaining to occupancy of the Project. In
addition, the Florida Housing Finance Corporation may consult with counsel, and the opinion of
such counsel shall be full and complete authorization and protection with respect to any action
taken or suffered by the County in good faith and in conformity with the opinion of such counsel.
Packet Pg. 1183
C.20.b
The Owner may rely upon certification of low-income households reasonably believed to be
genuine and to have been executed by the proper person or persons.
ARTICLE IV. TERM
This Agreement shall become effective upon its execution and shall remain in full force and effect
for a period of fifteen(15)years from the date of the completion of the rehabilitation of the Project
as confirmed by final inspection by the building department and/or issuance of a final certification
of occupancy.
ARTICLE V. INSURANCE
The Owner shall insure the property for the full replacement cost for the duration of the Land Use
Restriction Agreement. Any such policy must be issued by a company acceptable to the County,
include the County as an additional insured and provide for at least thirty (30) days' notice prior
to cancellation.
ARTICLE VI. DAMAGE, DESTRUCTION OF THE PROJECT
Subject to the superior rights of the holder of any first mortgage, in the event that the Project is
damaged or destroyed, the Owner shall deposit with the County any insurance proceeds and shall W
promptly commence to rebuild,replace,repair or restore the Project in such manner as is consistent
with the Loan Documents. The County shall make any such insurance proceeds available to E
provide funds for such restoration work. In the event the Owner fails to commence or to complete
the rebuilding, repair, replacement or restoration of the Project after notice from the County, the
County shall have the right, in addition to any other remedies granted in the Loan Documents or
at law or in equity,to repair, restore,rebuild or replace the Project so as to prevent the occurrence
of a default hereunder.
ARTICLE V . SALE, TRANSFER OR REFINANCINGC y
DISSOLUTION OF CORPORATION
The loan for the Project hereunder as to both principal and interest shall be assumable upon project W
sale, transfer or refinancing or dissolution of the Owner's Corporation if the proposed Owner of
the Project is an eligible nonprofit organization (approved by the County) and agrees to maintain
all set asides and other requirements of the SHIP Loan Documents for the period originally
specified.
In the event the above-stated conditions are not met, the loan for the Project hereunder as to both
principal and interest shall be due in full upon the sale, transfer or refinancing of the Project.
Notwithstanding, payment of principal and interest in full, these restrictions shall remain in full
force and effect for the term of this Agreement.
ARTICLE VIII. ENFORCEMENT/DEFAULT
The benefits of this Agreement shall inure to, and may be enforced by the COUNTY for the
duration of the Agreement, whether or not the COUNTY shall continue to be the holder of the
Mortgage,whether or not the Project loan may be paid in full,and whether or not any bonds issued
for the purpose of providing funds for the project are outstanding. The SPONSOR warrants that
it has not, and will not, execute any other agreement with provisions contradictory to, or in
opposition to,the provisions hereof, and that,in any event,the requirements of this Agreement are
paramount and controlling as to the rights and obligations herein set forth and supersede any other
requirements in conflict herewith. However, this shall not preclude the COUNTY from
subordinating its loan to construction financing.
Packet Pg. 1184
C.20.b
If the Owner defaults in the performance of its obligations under this Agreement or breaches any
covenant, agreement or warranty of the Owner set forth in this Agreement, and if such default
remains uncured for a period of thirty (30) days after notice thereof shall have been given by the
County to the Owner (or for an extended period approved by the County if such default stated in
such notice can be corrected, but not within such thirty (30) day period, and if the Owner
commences such correction within such thirty (30) day period, and thereafter diligently pursues
the same to completion within such extended period),then the County may take any lawful action,
whether for specific performance of any covenant in this Agreement or such other remedy as may
be deemed most effective by the County to enforce the obligations of the Owner with respect to
the Project. If a default by the Owner under this Agreement is not timely cured, the County may
institute foreclosure proceedings against the Project, but only as provided in the Mortgage.
Notwithstanding any of the foregoing,the County will have the right to seek specific performance
of any of the covenants and requirements of this Agreement concerning the rehabilitation and
operation of the Project.
ARTICLE IX. RECORDING ANDI W
Upon execution and delivery by the parties hereto, the County shall cause this Agreement and all
amendments and supplements hereto to be recorded and filed in the official public records of E
Monroe County.
ARTICLE X. COVENANTS LAN
This Agreement and the covenants contained herein shall run with the land and shall bind, and the
benefits shall inure to,respectively,the Owner and the County and their respective successors and
assigns during the Term of this Agreement.
ARTICLE XI. GOVERNING LA
This Agreement shall be governed by and construed in accordance with the laws of the State of
Florida,with respect to both substantive rights and with respect to procedures and remedies. W
ARTICLE XII. ATTORNEY'S FEES AND COSTS
In the event of any legal action to enforce the terms of this Agreement, each party shall bear its
own attorney's fees and costs.
ARTICLE I . NOTICE AND EFFECT
Any notice required to be given hereunder shall be given by personal delivery, by registered mail
or by registered expedited service at the addresses specified below or at such other addresses as 03
may be specified in writing by the parties hereto, and any such notice shall be deemed received on
the date of delivery if by personal delivery or expedited delivery service, or upon actual receipt if
sent by registered mail.
FOR THE COUNTY FOR THE OWNER
Robert Shillinger, Esq. HABITAT FOR HUMANITY OF KEY
County Attorney WEST AND LOWER KEYS
1111 121h Street, Suite 408 471 Overseas Highway, #102
Key West, FL 33040 Key West, FL 33040
(305)292-3470 P.O. Box 573 Key West, FL 33045
(305) 294-9006
Packet Pg. 1185
C.20.b
IN WITNESS WHEREOF, the Parties have caused their respective duly authorized
representatives to execute this Agreement on the date first written above.
ATTEST:
KEVIN MADOK, CPA, CLERK BOARD OF COUNTY COMMISSIONERS OF
MONROE COUNTY, FLORIDA
By:
(SEAL)
m
Date
A o ed as to f
w
Pedro Merc W
Assistant C my Attorney
HABITAT FOR HUMANITY OF KEY WEST
AND OWE KEYS
By: Kristina Welburn, Executive Director v,
Date: y
wa
Packet Pg. 1186