Item K1
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Division: Monroe County Housing Authority
Department: Monroe County SHIP Program
Staff Contact Person: Marie Brouillette. 292-1221
Meeting Date: January 28.2009
Bulk Item: Yes X No
AGENDA ITEM WORDING:
Approval of a resolution of the Board of County Commissioners of Monroe County, Florida approving a
revision to the Local Housing Assistance Plan, Homebuyer Assistance Strategy and providing for an effective
date.
PREVIOUS RELEVANT BOCC ACTION:
Approval by Resolution 412-2007 of the amendment to the Monroe County Local Housing Assistance
Program Homebuyer Assistance Strategy for fiscal years 2007-2008,2008-2009 and 2009-2010.
ITEM BACKGROUND:
The State Housing Initiatives Partnership (SHIP) Program for Monroe County, Florida currently provides
financial assistance to the residents of Monroe County with 85% of available funding reserved for affordable
housing permit properties. The substantial decrease in pricing and availability of market rate housing units is
providing a viable alternative to prospective program participants therefore we are reconunending eliminating
the 85% set aside.
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION:
Approval
TOTAL COST: $-0-
BUDGETED: Yes No
COST TO COUNTY: $-0-
SOURCE OF FUNDS: N/A
REVENUE PRODUCING: Yes ~ X AMOUNT PER: Month
APPROVED BY: Connty At~ -:MBlPnrchaSing _ Risk Management
DOCUMENTATION: Included X To Follow Not Required_
Year
DISPOSITION:
AGENDA ITEM #
RESOLUTION NO.
- 2009
A RESOLUTION OF THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA
APPROVING A REVISION TO THE LOCAL HOUSING
ASSISTANCE PLAN, HOMEBUYER ASSISTANCE STRATEGY;
AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the State of Florida enacted the William E. Sadowski Affordable Housing
Act, Chapter 92-317 of Florida Sessions Laws, allocating a portion of documentary 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 67-37, Florida Administrative Code,
required local governments to develop a one to three-year local Housing Assistance Plan
outlining how funds will be used~ and
WHEREAS, the Monroe County Board of County Commissioners approved the Monroe
County three year Local Housing Assistance Plan (LHAP) by Resolution 122-2007 on
3/21/2007~ and
WHEREAS, the Monroe County Board of County Commissioners approved an
amendment to the Homebuyer Assistance Strategy to fairly and equitably distribute
Homebuyer funds by Resolution 412-2007~ and
WHEREAS, the Monroe County Housing Authority, Administrator of the Monroe
County State Housing Initiatives Partnership (SHIP) Program, is recommending approval of
the amendment attached as Exhibit A-2008 in order to more fairly and equitably distribute
Homebuyer Assistance funding; and
WHEREAS, the current LHAP contains a 85% of available funds set-aside for
affordable permit properties; and
WHEREAS, sales prices of market rate properties have declined significantly and some
are currently below the sales price of affordable permit properties; and
WHEREAS, this amendment to the Homebuyer Assistance Strategy eliminates the 85%
set aside for affordable permit properties.
Page 1 of 2 Pages
Resolution LHAP re Homebuyers
Assistance Program
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, 2008-2009 and 2009-2010 Local Housing Assistance Plan (LHAP), Homebuyer
Assistance Strategy, attached hereto as "Exhibit A-2009 >t.
PASSED AND ADOPTED by the Board of County Commissioners of Monroe County,
Florida at a regular meeting of said Board on the 28th day of January, 2009.
Mayor George Neugent
Mayor Pro Tem Sylvia Murphy
commissioner Kim Wigington
Commissioner Heather Carruthers
Commissioner Mario Di Gennaro
(SEAL)
ATTEST: DANNY L. KOLHAGE, Clerk
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
BY:
BY:
Deputy Clerk
Mayor George Neugent
I z/u ~
Page 2 of 2 Pages
Resolution LHAP re Homebuyers
Assistance Program
B. Name of the Strategy: HOMEBUYER ASSISTANCE
a. Summary of the Strategy:
Funding assistance for the purchase of single-family residential property,
including condominiums or townhouses.
b. Fiscal Years Covered:
2008-2009/2009~2010
c. Income Categories to be served:
Very low, low and moderate
d. Maximum award is noted on the Housing Delivery Goals Charts:
Mortgage loan not to exceed $45,000. Inspection costs in excess of the
maximum award will be a program expense, shall not exceed $750.00 and
will be a grant to the borrower.
e. Terms, Recapture and Default:
Mortgage loans will be a deferred payment loan for a period of thirty (30)
years with zero % interest. The loan will be due and payable in full upon
sale or transfer of the property, thirty (30) years and failure to comply with
the terms of the SHIP mortgage or death of the last surviving homeowner.
In the event of the death of the last surviving homeowner, any income
eligible heir residing in the home may assume the SHIP Loan as long as
they can obtain title to the entire property within one (1) year of the death
of the last surviving homeowner and the first mortgagee consents to the
assumption of their loan.
f. Recipient Selection Criteria:
Applications for Homebuyer Assistance must include:
1. A contract for purchase of an existing housing unit or one under
construction. An "under construction" housing unit shall be defined as
having a building permit and pilings/foundation complete and
inspected.
2. A lending institution pre-qualification letter for the amount to be
financed which may assume a $45,000 SHIP loan.
3. An affidavit from the Seller in the event this is a unit under
construction, indicating the delivery date of the housing unit [cannot
be more than five months from the date of the SHIP Notice of Pun ding
Availability (NOFA)].
EXHIBIT A-2009
January 28,2009
1
In the event there are more applicants than funds available, upon
completion of the initial advertising, lotteries will be utilized to determine
the order offunding.
Applicants who fail to submit complete applications, who do not meet
SHIP threshold requirements or cannot close due to financing or any other
reason, may not reapply for SIllP assistance until the following
application cycle.
No new applications will be accepted for this strategy until all previous
applicants ranked by lottery have had an opportunity to participate. In the
event additional funding slots become available, the program will re-
advertise the availability offunds and if need be, conduct a new lottery.
g. Sponsor Selection Criteria:
N/A
h. Additional Information:
Buyer(s) must contribute a minimum three percent (3%) down payment.
Property must meet minimum health and safety standards as defined under
the U.S Department of Housing and Urban Development's, Housing
Quality Standards (HQS). Any HQS deficiencies must be corrected prior
to or as part of the purchase transaction. In the case of new construction, a
Certificate of Occupancy (CO) may be substituted for the HQS inspection.
Mortgage loans to public entities, which retain ownership of the land
under the terms of a ground lease, shall extend to the improvements.
Public agencies and/or non-profit affordable housing development
organization may request the SHIP loan be re-Ioaned to subsequent buyers
if the following conditions are determined to exist at the time of sale:
1. Prospective buyer meets SHIP income eligibility guidelines for
very low, low or moderate income limits.
2. The transaction maintains the properties affordability to the
prospective buyer.
3. Long term affordability criteria are recorded, enforced and for a
period not less than the term of the SHIP mortgage and the
transaction is consistent with such affordability criteria.
i. Shared Appreciation Provision:
All SHIP funds under this strategy are subject to a mortgage that shall
contain recapture provisions which provides for shared appreciation
between the buyer(s) and the Monroe County SHIP Program. The amount
due Monroe County upon sale, transfer or refinancing of the property shall
be calculated by adding the sum of the principal balance of the SHIP loan
and 50% of the appreciated value.
EXHIBIT A-2009
January 28, 2009
2
The appreciated value shall be the difference between the original
purchase price and the sales price or appraised value less any real estate
commission, less the value of any permitted improvements.
Housing units constructed utilizing Mfordable Housing Permits which
restrict appreciation in the housing unit's value, shall not be subject to the
Shared Appreciation Provision.
ExmBIT A-2009
January 28, 2009
3
RESOLUTION NO.
412
, 2007
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE
COUNTY, FLORIDA APPROVING AN AMENDMENT TO THE MONROE COUNTY
LOCAL HOUSING ASSISTANCE PLAN (LHAP) 'FOR FLORIDA FISCAL YEARS 2007-
2008,2008-2009 AND 2009-2010.
WHEREAS, the State Housing Initiatives Partnership (SffiP) Act, SS. 420.907-420.9079,
Florida Statutes (1992). and Rule Chapter 67-37, Florida Administrative Code, required local
governments to develop a one Or three-year Local Housing Assistance Plans outlining how funds will
be used; and,
WHEREAS, the Monroe County LHAP for the State of Florida fiscal years 2007-2008, 2008-
2009 and 2009-2010 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 State
Housing Initiatives Partnership (SHIP) Program, is recommending approval of the amendment
attached as Exhibit A in order to fairly and equitably distribute Homebuyer Assistance funding due to
the demand for funding exceeding the supply; and.
WHEREAS, the Monroe County Housing Authority conducted an advertised Workshop to
solicit inputs from the various stakeholders on September] 2, 2007 to address the issues raised in the
attached Status Report, and,
WHEREAS, the proposed amended Homebuyer Strategy addresses many of the stakeholders
concerns.
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 lnitiatives Partnership (SHIP)
Program, 2007-2008, 2008-2009 and 2009-2010 Local Housing Assistance Plan (LHAP),
Homebuyer Assistance Strategy, allached hereto as "Exhibit A ".
PASSED AND ADOPTED THIS 17th
DA Y OF OCTOBER, 2007.
rSEAL)
~ KOlHAGE, arRlC
8 C.
DEPUTY CLERK
BOARD OF CONTY COMMISSIONERS
OF ~U1)Y'o-ORIDA
By: 0Y/~
Mayor Mario Di Gennaro
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Commissioner McCoy ..YIi:.5....
Commissioner Murphy Yes
Commissioner Nugent Yes
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Date:
B. Name of the Strategy: HOMEBUYER ASSISTANCE
a. Summary ofthe Strategy:
Funding assistance for the purchase of single-family residential property,
including condominiums or townhouses.
b. Fiscal Years Covered:
2007-200812008-200912009-2010
c. Income Categories to be served:
Very low, low and moderate
d. Maximum award is noted on the Housing Delivery Goals Charts:
Mortgage loan not to exceed $45,000. Inspection costs in excess of the
maximum award will be a program expense, shall not exceed $750.00 and
will be a grant to the bOlTower,
e. Terms, Recapture and Default:
Mortgage loans will be a defen-ed payment loan for a period of thirty (30)
years with zero % interest. The loan will be due and payable in full upon
sale, transfer or refinancing of the property, thirty (30) years or failure to
comply with the terms of the SHIP mortgage or death of the last surviving
homeowner. In the event of the death of the last surviving homeowner,
any income eligible heir residing in the home may assume the SHIP Loan
as long as they can obtain title to the entire property within one (1) year of
the death of the last surviving homeowner and the first mortgagee
consents to the assumption of their loan.
f. Recipient Selection Criteria:
Applications for Homebuyer Assistance may only be made by individual
purchasers and must include:
1. A contract for purchase of an existing housing unit or one under
construction. An "under construction" housing unit shall be defined as
having a building permit and pilings/foundation complete and
inspected.
2. A lending institution pre-qualification letter for the amount to be
financed which may assume a $45,000 SHIP loan.
3. An affidavit from the Seller in the event this is a unit under
construction, indicating the delivery date of the housing unit [cannot
be more than five months from the date of the SHIP Notice of Funding
A vai lability (NOFA)].
Annually, 85% of funds budgeted under this strategy will be allocated to
individual purchasers for housing units built by public entities and non-
EXHIBIT A
profit affordable housing providers. In the event there are more applicants
than funds available upon completion of the initial advertising, lotteries
will be utilized to determine the order of funding for the market rate
housing units and public entities and non-profit affordable hosing units.
Applicants who fail to submit complete applicatlons, who do not meet
SHIP threshold requirements or can't close due to financing or any other
reason, may not reapply for SHIP assistance until October 2008,
No new applications will be accepted for this strategy until all previous
applicants ranked by louery have had an opportunity to participate. In the
event additional funding slots become available and all previous
applicants have had an opportunity to participate, the program will re-
advertise the availability of funds and conduct additional lotteries.
g. Sponsor Selection Criteria:
N/A
h. Additional Information:
Buyer(s) must contribute a minimum three percent (3%) down payment.
Property must meet minimum health and safety standards as defined under
the US Department of Housing and Urban Development's, Housing
Quality Standards (HQS). Any HQS deficiencies must be corrected prior
to or as part of the purchase transaction. In the case of new construction, a
Certificate of Occupancy (CO) may be substituted for the HQS inspection.
Mortgage loans to public entities, which retain ownership of the land
under the terms of a ground lease, shall extend to the improvements.
Public agencies andior non-profit affordable housing development
organization may request the SHIP loan be re-Ioaned to subsequent buyers
if the following conditions are determined to exist at the time of sale:
1. Prospective buyer meets SHIP income eligibility guidelines for
very low or Jow income.
2. The transaction maintains the properties affordability to the
prospective buyer.
3. Long term affordability criteria are recorded, enforced and for a
period not less than the term of the SHIP mortgage and the
transaction is consistent with such affordability criteria.
i. Shared Appreciation Provision:
All SHIP funds under this strategy are subject to a mortgage that shall
contain recapture proviSions which provides fOf shared appreciation
between the buyer(s) and the Monroe County SHIP Program. The amount
due Monroe County upon sale, transfer or refinancing of the property shall
be calculated by adding the sum of the principal balance of the SHIP loan
EXHIBIT A
and 50% of the appreciated value.
The appreciated value shall be the difference between the original
purchase price and the sales price or appraised value less any real estate
commission, less the value of any permitted improvements. Housing units
constructed utilizing Affordable Housing Permits which restrict
appreciation in the housing unit's value, shall not be subject to the Shared
Appreciation Provision.
EXHI:BJ:T A
MONROE COUNTY SHIP PROGRAM
HOMEOWNERSHIP STRATEGY
STATUS REPORT
STATUS:
1. The SHIP County FY 2008 budget has $1,595,000 budgeted for
Homeownership down-payment and closing cost assistance. Of this amount,
$315,000 has been committed to the Middle Keys Community Land Trust
leaving $1,280,000 available or enough money to fund 28 homebuyer
transactions at $45,000 per transaction.
2. Four affordable housing permit developments containing 179 units have or
will shortly break ground. All have started accepting reservations andlor
contracts on units.
3. FY 2008 SHIP State funding will be funded quarterly starting in July 2007
due to a projected revenue shortfall (see attached) at the State level.
Approximately $900,000 of the $1,280,000 available for homeowners hip will
be funded from FY 08 interest, repayments and receipts from the State.
4. We estimate that 65 to 75% of the purchasers of the 179 units will need some
fonn of down-payment and closing cost assistance to be able to purchase a
lIni 1.
5. The SHIP Rule requires the county to advertise the availability of funds which
is scheduled for 10/01/2007 thru 10/31/2007. The SHIP Program could
receive as many as 75 applications from households having a contract to
purchase an affordable unit by 10/31/2007.
ISSUES:.
1. The current SHIP Local Housing Assistance Plan (LHAP) was not written to
address the current demand for SHIP Homeownership funds and availability of
affordable housing units,
GOAL:
1. Develop a fair and equitable method of distributing SHIP Homeownership Funds
prior to advertising the Notice of Funding Available.
, 1
RECOMME:N"DATIONS:
1. Advertise a SHIP Homeownership workshop and invite all of the stakeholders
and public to obtain their inputs on revising the current LHAP Homeownership
Strategy.
2. Advise the County Mayor, Commissioners and County Administrator on the
status of Homeownership Strategy funding.
3. Modify the LHAP Homeownership Strategy to ensure the award to eligible
purchasers is fair and equitable.
mb/LHAP
MONROE COUNTY
STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM
HOMEOWNERSHIP SET ASIDE SUMMARY
The SHIP Program 85% set aside of funding for affordable housing permit developments
was predicated on the sales prices local governments required for the issuance of
affordable housing permits. A three bedroom affordable housing permit home pricing is
currently $289,750. This pricing permitted SHIP income eligible applicants to purchase
these homes. A typical three bedroom market rate home was then priced in the high
$400,000 range. The affordable housing permit home pricing advantage which existed
through 2007 and early 2008 starting eroding in the 2" quarter of2008.
Today, pricing for a three bedroom market rate home has decreased significantly and
there are homes priced under the affordable housing permit sales prices. The
recommendation to eliminate the 85% affordable housing permit set aside was based on
the following:
I. The significant reduction in sales prices of market homes is now competitive with
or less than affordable housing permit homes.
2. SHIP applicants have indicated a preference to own their own land versus a land
lease.
3. The vast majority of affordable units sold (78%) and planned are located in the
Lower Keys. (see attached geographic distribution)
4. To provide residents of the Middle and Upper Keys who do not have affordable
housing permit developments to participate in the Program which the present set-
aside would prevent.
1/2 frio"
1<./
MONROE COUNTY
STATE HOUSING INITIATIVES PARTNERSHIP (SHIP)
HOMEOWNERSHIP CLOSINGS
01-01-07 thru 01-01-09
GEOGRAPHIC DISTRIBUTION
Affordable Housing Permit Developments
HOUSING
UNITS
_ Key West - Railways - Land Lease
_ Stock Island - Park Village - Land Lease
_ Stock Island - Islander Village - Land Lease
_ Summerland - Starfish Cove - Fee Simple
_ Habitat - Marathon - Land Lease
_ Habitat - Marathon - Fee simple
_ Islamorada - Woods Corner - Land Lease
19
29
3
3
4
1
12
71
Open Market
- Key West - Fee Simple
- Big Pine Key - Fee Simple
4
3
7
78
91%
9%