Resolution 105-1995
RESOLUTION NO.
105 - 1995
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A RESOLUTION APPROVING MONROE COUNTY'S .,
STATE HOUSING INITIATIVE P ARTNERSIllP
LOCAL HOUSING ASSISTANCE PLAN FOR FISCAL
YEARS 1995-96, 1996-97, AND 1997-98 AND OTHER
REQUIRED APPROVALS,
WHEREAS, Monroe County is designated to receive funds from the ST ATE HOUSING
INITIATIVE PARTNERSHIP (SHIP) program for the purpose of the development and
implementation of Affordable Housing programs, and
WHEREAS, the program provides for the allowance of up to ten (10) percent of the
funds for administrative expenses, when approved by resolution~ and
WHEREAS, the Monroe County Board of County Commissioners is required to approve
the plan and submit it for approval to the Florida Housing Finance Agency~
NOW THEREFORE BE IT RESOLVED, that the Monroe County Board of County
Commissioners hereby approves:
1, The Monroe County Local Housing Assistance Plan.
2. The maximum award schedule as listed in the Plan,
3. The Chairman of the Board of Commissioners be granted the
authority to execute all documents and certifications required for
submission and approvals to the Florida Housing Finance Agency
on behalf of Monroe County.
4. The continued administration of the Local Housing Assistance
Plan by the Monroe County Housing Special Programs
Office pursuant to Governmental Interlocal Agreement approved
by Resolution 162-1993 on April 14, 1993.
5. The ten (10) percent allowance for administration.
6. The estimated average SHIP cost per unit for eligible housing
outlined below:
1
A VERAGE SHIP COST PER UNIT
FISCAL YEARS 1995-96 & 1996-97 & 1997-98
Acquisition - Existing - Downpayment and Closing Costs
All Qualified Applicants
Average cost per unit
SHIP dollars per unit
Number of units produced
$91,300
11,243
12
Acquisition - New - Downpayment and Closing Costs
All Qualified Applicants
Average cost per unit
SHIP dollars per unit
Number of units produced
$105,000
11,243
12
Rehabilitation and Emergency Repairs
Very-low and low income Qualified Applicants
Average cost per unit
SHIP dollars per unit
Number of units produced
$ 8,000
4,088
12
Loan Guarantee and Repurchase Fund
All Qualified Transactions
Average cost per unit
SHIP dollars per unit
Number of units produced
$ 98,150
4,906
10
2
OTHER ACTIVITIES
Homeownership Counseling
Average cost per unit
SHIP dollars per annum
Number of units produced
N/A
$ 17,171
N/A
RENTAL STRATEGIES
Rehabilitation
All Qualified Applicants
Average cost per unit
SHIP dollars per unit
Number of units produced
$ 5,000
2,821
20
PASSED and ADOPTED, by the Board of County Commissioners of Monroe County, Florida, at
a regular meeting of said Board held on the 15th day of March, AD" 1995,
BOARD OF COU1\TTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
BY:
~
(SEAL)
ATTEST:
Mayor Freeman
Mayor Pro Tern London
Commissioner Douglas
Commissioner Harvey
Commissioner Reich
absent
yes
yes
yes
yes
~t.~~
Danny Kolhage, Clerk 0 the Court
_PI..,
3
MONROE COUNTY STATE HOUSING INITIATIVES PARTNERSIDP
LOCAL HOUSING ASSISTANCE PLAN
1995 THRU 1998
PURPOSE AND INTENT
This plan details the general purpose and intent of Monroe County's
strategies for implementation of the State Housing Initiatives Partnership
(SHIP) Local Housing Assistance Plan as established in Ordinance 012-1993;
pursuant to 420.907-420.9079, Florida Statutes and 91-37.005, Florida
Administrative Code.
The strategies as presented in the Monroe County Housing Assistance
Program were developed to encourage the maintenance of existing and
provide new opportunities for affordable housing for the very-low, low, and
moderate income residents within the County. The need for affordable
housing for the very-low, low, and moderate income households is addressed
in the County's Comprehensive Plan. SIDP funds will provide one of the
financial vehicles for affordable housing and thereby lower the cost of
housing for qualified and eligible applicants,
In compliance with the SHIP Program State Statute and Rule, the Monroe
County Board of County Commissioners have established a Housing
Assistance Trust Fund, a Housing Assistance Partnership, and Ordinance
which creates the Affordable Housing Advisory Committee, and by
Intergovernmental Agreement pursuant to Chapter 163 F.S. designated the
responsibility for administration and implementation of the Local Housing
Assistance Plan to the Monroe County Housing Authority.
PLAN DURATION AND EFFECTIVE DATE
The Monroe County Local Housing Assistance Plan (HAP) will become
effective immediately upon adoption by the Monroe County Board of County
Commissioners and subsequent approval by the Florida Housing Finance
Agency. The plan is for FY's 1995-96, 1996-97, and 1997-98. The HAP
Plan may be amended annually based on changes in strategy and other
4
requirements of the Partnership and approval by the Monroe County's Board
of County Commissioners,
IMPLEMENTATION
The Monroe County Local Housing Assistance Program and Plan will be
implemented by the Monroe County Housing Authority pursuant to an
Intergovernmental Agreement approved by Resolution 162-1993.
PROPOSED ACTIVITIES AND STRATEGIES
Monroe County, a political subdivision of the State of Florida, is submitting
its State Housing Initiatives Partnership Plan (SHIP) which specifically
addresses providing affordable housing to the very-low, low, and moderate
income eligible participants within the County's jurisdiction. The following
strategies are proposed for the three (3) year plan,
STRATEGY 1: Purchase assistance for downpayment and closing
costs of existing homes for very-low, low and
moderate income qualified applicants.
This strategy involves existing homes. Homebuyers will be eligible for
Deferred Payment Loans (DPL) for up to $14,000 for the life of the first
mortgage. Should the property be sold, loans provided by the SHIP program
will be repaid in full. Repayment is also required if the property is no longer
the principal and primary residence of the borrower. Eligible
applicants/recipients will be required to provide a minimum 3%
downpayment and obtain a first mortgage. SHIP funds, when leveraged with
other programs and in an amount of less than $5,000, will be a grant.
STRATEGY 2: Purchase assistance for downpayment and closing
costs of new homes for very low, low and
moderate income qualified applicants.
This strategy involves new homes. Homebuyers will be eligible for Deferred
Payment Loans (DPL) for up to $14,000 for the life of the first mortgage.
Should the property be sold, loans provided by the SHIP program will be
5
repaid in full. Repayment is also required if the property is no longer the
principal and primary residence of the borrower. Eligible
applicants/recipients will be required to provide a minimum 3 %
downpayment and obtain a first mortgage. SHIP funds, when leveraged with
other programs and in an amount of less than $5,000, will be a grant.
STRA TEG Y 3: Housing rehabilitation and emergency repairs for
very low and low income eligible homoowners.
This strategy is necessary to reduce housing deficiencies associated with
substandard living conditions of the very low and low income eligible
homeowners and provide residents with safe and decent living conditions.
There will be a ten (10) year Deferred Payment, self amortizing loan for all
expenditures on a property that exceed $5,000.
STRATEGY 4: Loan Guarantee and Repurchase Fund.
The purpose of this strategy is to preserve our already limited supply of
affordable housing priced under $124,875 through either the County's right of
purchase in the first three years of ownership and/or purchase from a lending
institution if required. The loan guarantee and repurchase fund shall be a
separate and distinct fund from the SHIP Housing Investment Trust Fund.
SHIP disbursements to the loan guarantee and repurchase fund must be
directly linked to a FTHO participant loan funding.
STRATEGY 5: First time homeownership counseling and
education.
First Time Homeownership counseling and educational seminars (25) will be
conducted annually by the Monroe County Housing Authority Special
Programs Office, Attendance for qualified applicants is mandatory to comply
with first mortgage underwriting criteria.
STRATEGY 6: Rehabilitation of Existing Units - Rental.
This strategy involves the rehabilitation of existing or proposed housing to be
dedicated for annual rental housing for the very low and low income eligible
6
loan for all expenditures on a unit over $5,000. Occupancy must first be
offered to qualified families participating in the County's Section 8 Housing
Assistance Program. The rental rates attached are based on unit size and
meet the affordability requirements. All rental units constructed or
rehabilitated shall be monitored at least annually for fifteen (15) years for
compliance with tenant income and affordability requirements.
ADMINISTRATION
The SHIP program will be administered Countywide by the Monroe County
Housing Authority pursuant to an Intergovernmental Agreement approved by
Resolution 162-1993. Monroe County, by resolution, has approved the
allowance of ten (10) percent of SHIP funds for administration of this
program, and desire its continuation.
ESTABLISHMENT OF THE PARTNERSHIP
The Homeownership Opportunities Partnership has been developed by
including the business community, service providers, social service agencies
and affordable housing providers. The core of the partnership are the real
estate brokers, bankers and builders located in Monroe County.
The responsibilities of the Partnership includes the design, development and
implementation of the Housing Assistance Plan. The Monroe County
Housing Authority Special Programs Office will provide marketing outreach,
applicant's eligibility and credit review, homeownership education first
mortgage prequalification, Housing Quality Standards inspections, first
mortgage application assistance and closing assistance. The Partnership,
where feasible, without the use of SHIP funds will help provide support
services to qualified eligible participants in the SHIP program.
7
PUBLIC INPUT
Public input to the SHIP plan was and is solicited through public workshops,
public forums, homeownership seminars, media advertisement, and the
members of the Partnership itself.
AFFORDABILITY REQUIREMENTS
The SHIP Program requires that all applicants for homeownership strategies
and tenants of rental strategies meet the very low, low and moderate income
levels by family size,
Homeownership strategies require that the home be the principal and primary
residence, the applicant have a 3% minimum down payment and is able to
qualify for first mortgage financing. Specific affordability requirements for
homeownership is a buy back provision whereby the applicant who becomes
a homeowner agrees to sell the property at their cost if they desire to sell in
the first three years of ownership.
DISTRffiUTION PERCENTAGES
Florida State Statute and SHIP rule require the following distribution matrix:
Seventy five (75) percent or more of funds received must be used in
homeownership strategies,
Thirty (30) percent or more of housing units assisted must be for
occupancy of very-low income persons. Thirty (30) percent or more of
housing units assisted must be for occupancy of low income persons. Forty
(40) percent or less of the housing units assisted may be for occupancy of
moderate income persons.
Ten (10) percent of the funds received are available for administrative
expenses upon approval by the Monroe County Board of Commissioners.
8
COST A VERAGE/UNITS
FISCAL YEARS 1995-96 & 1996-97 & 1997-98
HOMEOWNERSHIP STRATEGIES
Acquisition - Existing - Downpayment and Closing Costs
All Qualified Applicants
Average cost per unit
SHIP dollars per unit
Number of units produced
$91,300
11,243
12
Acquisition - New - Downpayment and Closing Costs
All Qualified Applicants
Average cost per unit
SHIP dollars per unit
Number of units produced
$ 105,000
11,243
12
Rehabilitation and Emergency Repairs
Very-low and low income Qualified Applicants
Average cost per unit
SHIP dollars per unit
Number of units produced
$ 8,000
4,088
12
Loan Guarantee and Repurchase Fund
All Qualified Transactions
Average cost per unit
SHIP dollars per unit
Number of units produced
$ 98,150
4,906
10
9
OTHER ACTIVITIES
Homeownership Counseling
Average cost per unit
SHIP dollars per annum
Number of units produced
N/A
$ 17,171
N/A
RENTAL STRATEGIES
Rehabilitation
All Very-low and Low Income
Qualified Applicants
Average cost per unit
SHIP dollars per unit
Number of units produced
$ 5,000
2,821
20
HOMEOWNERSHIP HOUSING COSTS
SHIP Average
NEW
$105,000
EXISTING
$91,300
These costs are well within the 90% Median Area Purchase Price Range.
10
INCOME LIMITS - Monroe County
Oualifvio2 Income Level Maximum and Familv Size
(Effective February 10, 1995 and Updated Annually)
Household Very Low Low Moderate
Size Income Income Income
One Person $15,800 $25,300 $37,920
Two Persons $18,100 $28,950 $43,440
Three Persons $20,350 $32,550 $48,840
Four Persons $22,000 $36,150 $54,240
Five Persons $24,400 $39,050 $58,560
Six Persons $26,200 $41,950 $62,880
Seven Persons $28,000 $44,850 $67,200
Ei~ Persons $29,850 $47,750 $71,640
MAXIMUM SCHEDULE AWARD
Fiscal Years 1995-96 & 1996-97 & 1997-98
All Applicants
$1 7,000
Homeownership Education and
Credit Counseling
$17,171
Administration
$49,062
OUTREACH AND SELECTION
Advertisements and Notice of Funds Availability will be published in the
newspaper of general circulation within the County thirty (30) days prior to
the beginning of each fiscal year, Applications will be printed and
distributed to public libraries on a year round basis to remind and inform the
general public of their potentially eligiblility. All advertisements and notices
to promote the public's awareness of the affordable housing programs shall
be provided through the use of those funds dedicated for administration.
11
APPLICANT QUALIFICATION AND SELECTION
All income eligible first time homeownership applicants are permitted an
opportunity to participate. Eligible applicants are required to have a 3%
down payment, qualify for a first mortgage and find a home to purchase
within their borrowing capacity, The Special Programs Office continues to
use a lottery system for establishing a priority for applicants to participate.
All rental activities are on a first come first serve basis with adequate
demand. A lottery system will be established if and when the demand for
funds exceeds the supply.
FUND COMMITMENT
Monroe County will insure that at least fifty (50) percent of the SHIP funds
are encumbered during the fiscal year received. In the event this does not
occur, an amendment to the plan will be submitted to the Florida Housing
Finance Agency at least twenty-one (21) days after the adoption by the Board
of County Commissioners.
PROGRAM GENERATED FUND USE
Any and all funds generated by use of SHIP funds will be placed in the local
government Trust Fund Account to be utilized for those affordable housing
activities that benefit the very low, low, and moderate income recipients.
These SHIP funds will be redistributed in the same manner as the original
funds were allocated.
NON-DISCRIMINATION POLICY STATEMENT
The Monroe County Local Affordable Housing Assistance program shall not
discriminate in the application and award process in any manner whatsoever,
based on race, creed, religion, color, age, sex, marital status, familial status,
national origin, or handicap.
12
.' -'''-'-~--~--'-~''~M''''''''-'""-'''''''''-'-'''''l ...
CONTRACTUAL OBLIGATIONS
All eligible loan and grant recipients shall be required to adhere to the
affordability/contractual obligations and agreements as required by Florida
Statute, SHIP Rule and Monroe County Program Design, Such
contracts/agreements shall include or infer by clause their binding conditions
and requirements,
INELIGIBLE ACTIVITIES
No SHIP funds may be utilized to purchase, rehabilitate or repair mobile
homes. SHIP funds will not be pledged for debt service on bonds or as rent
subsidies.
TRUST FUND AND OTHER COMMITMENTS
Amounts on deposit in the local housing assistance trust fund shall be
invested as permitted by law. The trust fund shall be separately stated as a
special revenue fund in Monroe County's audited financial statements, and
copies of the audit forwarded to the Florida Housing Finance Agency as soon
as they are available.
No loans shall exceed thirty (30) years.
13
BUDGET
Administrative Expenses
FY1995-96 Salaries/professional sources $ 32,500
Employee benefits 8,400
Advertising/printing 3,500
General Operating Expenses 4,662
FY1996-97 Salaries/professional sources $ 32,500
Employee benefits 8,400
Advertising/printing 3,500
General Operating Expenses 4,662
FY 1997 -98 Salaries/professional sources $ 32,500
Employee benefits 8,400
Advertising/printing 3,500
General Operating Expenses 4,662
HOMEOWNERSHIP STRATEGIES
FY1995-96 Down Payment and Closing Cost-Existing $ 134,921
FY1996-97 Down Payment and Closing Cost-Existing $ 134,921
FY1997-98 Down Payment and Closing Cost-Existing $ 134,921
FY1995-96 Down Payment and Closing Cost-New $ 134,921
FY 1996-97 Down Payment and Closing Cost-New $ 134,921
FY1997-98 Down Payment and Closing Cost-New $ 134,921
FY1995-96 Rehabilitation and Emergency Repairs $ 49,062
FY 1996-97 Rehabilitation and Emergency Repairs $ 49,062
FY1997-98 Rehabilitation and Emergency Repairs $ 49,062
FY1995-96 Loan Guarantee and Repurchase Fund $ 49,062
FY1996-97 Loan Guarantee and Repurchase Fund $ 49,062
FY1997-98 Loan Guarantee and Repurchase Fund $ 49,062
OTHER ACTMTIES
FY1995-96 Homeowner Counseling $ 17,171
FY 1996-97 Homeowner Counseling $ 17,171
FY1997-98 Homeowner Counseling $ 17, 171
14
RENTAL STRATEGIES
FY 1995-96
FY 1996-97
FY 1997 -98
Rehabilitation - Rental
Rehabilitation - Rental
Rehabilitation - Rental
$ 56,421
$ 56,421
$ 56,421
BUDGET TOTALS
Totals FY1995-96
FY1996-97
FY1997-98
$ 490,620
$ 490,620
$ 490,620
15
SHIP WORK PLAN FYI 995-96
1 . Advertise draft SHIP plan availability at
public libraries for comment and conduct a
public workshop
2. Submit 3 year plan and resolution FYI 995-98
3. Advertise funding availability
FY1995-96
4. Receive/process applications
5. Commit Funds
6. Audit and closeout
SHIP WORK PLAN FYI 996-97
I. Advertise draft SHIP plan availability at
public libraries for comment and conduct a
public workshop
2, Submit 3 year plan and resolution FY1995-98
3. Advertise funding availability FYI 996-97
4. Receive/process applications
5. Commit Funds
6. Audit and closeout
16
3/95
3/17/95
3/20/95
4/20/95
7/1/95- 9/30/96
Open
3/95
3/17/95
3/20/96
4/20/96
7/1/96 - 9/30/97
Open