Item M1
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: October 20, 2004
Division: Monroe County Housing Authority
Bulk Item: Yes X
No
Department: Special Programs Office
AGENDA ITEM WORDING: A RESOLUTION OF THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA APPROVING AMENDMENT ONE TO
MONROE COUNTY'S STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM
LOCAL HOUSING ASSISTANCE PLAN (LHAP) FOR 2004-2005, 2005-2006 AND 2006-2007
ITEM BACKGROUND: Annually since 1994 the Monroe County's SHIP Program has operated a
First Time Homebuyer/Homebuyer Assistance strategy providing down payment loans to low and
moderate-income homebuyers. The Local Housing Assistance Plan (LHAP) sets forth the terms of
assistance, including the maximum amount of assistance. The most recent LHAP was approved and
effective June 1, 2004.
PREVIOUS RELEVANT BOCC ACTION: May 2004. Adoption of the existing Monroe County
State Housing Initiatives Partnership (SHIP) Local Housing Assistance Plan (LHAP)
CONTRACT/AGREEMENT CHANGES:
Change the existing Local Housing Assistance Plan, Homebuyer Assistance Strategy, Type of
Assistance to provide "Mortgage loans to public entities and non-profit housing providers no to exceed
$45.000. inclusive of cost. Mortgage loans to individuals not to exceed $45.000 inclusive of closing
costs." Current maximums are $35,000 and $25,000 respectively~
STAFF RECOMl\1ENDA TION:
Approval. The proposed increase in the maximum amount of assistance is necessary to successfully
implement the program given the increase in real estate prices.
TOTAL COST:
$-0-
BUDGETED: Yes X
No
COST TO COUNTY:
$-0-
SOURCE OF FUNDS:
REVENUE PRODUCING: Yes No X
APPROVED BY: County Attny.~~OMBIPur
DMSION DIRECTOR APPROVAL:
AMOUNT PER: Month Year
Risk Management_
J. M el Castillo, Sr., Executive Director
oe County Housing Authority
DOCUMENTATION:
Included X
To Follow
Not Required_
AGENDA ITEM # !~ \ - I
DISPOSITION:
Rev. 01103
RESOLUTION
- 2004
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
MONROE COUNTY, FLORIDA ADOPTING AMENDMENT #1 TO THE STATE
HOUSING INITIATIVES PARTNERSmP (SHIP) LOCAL HOUSING
ASSISTANCE PLAN (LHAP) FOR STATE OF FLORIDA FISCAL YEARS 2001-
2002,2002-2003,2003-2004.
WHEREAS, Monroe County has successfully participated in the State Housing Initiatives Partnership
(SlllP) since its creation in 1993, and;
WHEREAS, Florida Statute 420.9075 and State Rule 67-37.005 require participating local governments
to submit to the Florida Housing Finance Corporation a Local Housing Assistance Plan (LHAP) at least
every three years, and;
WHEREAS, in May 2004 the Monroe County Board of County Commissioners adopted the existing
Monroe County State Housing Initiatives Partnership (SHIP) Program, Local Housing Assistance Plan,
and;
WHEREAS, Monroe County desires to amend the existing Monroe County Local Housing Assistance
Plan in order to increase award maximums to provide greater opportunities to potential homebuyers.
NOW, THEREFORE, BE IT RESOLVED, by the Board of County Commissioners of Monroe County,
Florida, that the County hereby:
Approves and adopts an amendment to the Monroe County State Housing Initiative Partnership (SIDP)
Local Housing Assistance Plan, substituting the language within the Homebuyer Assistance Strategy,
Type of Assistance to read, "Mortgage loans to public entities and non-profit housing providers not to
exceed $45.000. inclusive of cost. Mortgage loans to individuals not to exceed $45.000 inclusive of
closing costs." This language replaces that which now reads, "Mortgage loans to public entities and
non-profit housing providers not to exceed $35,000, inclusive of cost. Mortgage loans to individuals not
to exceed $25,000 inclusive of closing costs."
PASSED AND ADOPTED, by the Board of County Commissioners of Monroe County, Florida at a
regular meeting on said Board on the _ day of , A.D., 2004
Mayor Nelson
Commissioner Rice
Mayor Emeritus Neugent
Commissioner McCoy
Commissioner Spehar
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By:
Mayor Nelson
ATTEST:
'_ _.. ...;..../ <.j."" i . ;:\~ l""""... ...... .
SEAL
Approved as to form and leg
s '~ I I
ASSISTANT cC0U~ ~y 'DORNEY
'Ja-'O / () 'S)u f! 7~
...._______ {l
Page 1 of 1
Analysis of SHIP Homebuyer Assistance Program
Real estate pricing has put increasing pressure on the abilty to sucessfully continue to operate the
Homebuyer Assistance portion of Monroe County's SHIP Program. The program provides a second
mortgage loan to moderate income households (family of four = $68,640). The program provides
set aside funding for non-profit entities providing homeownership to low income households.
The difficulty is the growing gap between a families ability to borrow (based on income) and the cost of
real estate. This gap has been traditionally been addressed by the SHIP Program. The issue is that
the amount of SHIP assistance necessary is increased substantially the number that can be assisted is
decreasing.
The chart below outlines the problem. The gap between how much a household can expect to borrow and
the base real estate price is calculated under "Assistance Required" column. Combined with the limited
availability and quality (age, size), of available housing the abilitiy to continue to successfully operate is stressed.
We are proposing to increase the amount of SHIP assistance, set realistic expectations for borrowers and
provide maximum flexibility to help make the SHIP Homebuyer Assistance Program viable.
Your comments are welcome and appreciated.
Purchase Assistance Required for Homeownershlp
by Income Range. MONROE COUNTY
(a)
(b)
Base A vai/able
(c)
Borrowing
(b-c)
Assistance
Income Ranoe Real Estate Capacity Reauired
$ 30,000 to $ 35,000 $ 284,400 $ 114,056 $ 170,344
$ 35,000 to $ 40,000 $ 284,400 $ 137,131 $ 147,269
$ 40,000 to $ 45,000 $ 284,400 $ 160,206 $ 124,194
$ 45,000 to $ 50,000 $ 284,400 $ 183,281 $ 101,119
$ 50,000 to $ 55,000 $ 284,400 $ 206,355 $ 78,045
$ 55,000 to $ 60,000 $ 284,400 $ 229,430 $ 54 970
$ 60,000 to $ 65,000 $ 284,400 $ 252,505 $ 31,895
$ 65,000 to $ 70,000 $ 284,400 $ 275,580 $ 8,820
FINANCIAL ASSUMPTIONS
Debt Ratio 35%
Rate 6.50%
Term 30
REAL ESTATE
Base Real Estate - Search of Monroe County MLS (813104)
Listings (SFR) 14
Average Price $ 284,400
Average Age 59 Yrs
Avg. Size 777 sq. ft.
Listings by PrlcelLocatlon
Upper Middle Lower
2OOk-225k 0 0 0
225k.250k 1 1 0
250k-275k 1 1 2
275k-300k 4 1 1
3OOk-325k 0 2 0