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Resolution 374-1994 ~ J! E f'i f. f.' P F (' () P i I ~ . ..I . .", v - . RESOLUTION NO. 374-199495 JAN 17 P4 :53 A RESOLUTION OF THE MONROE COUNTY BOARD OF COMMISSIONERS DIRECTING STAFF TO.;\\~PREPARE THE APPLICABLE ADMINISTRATIVE AND CIP'brAcy ; CHANGES REQUIRED TO PERMIT THE ~~et:Ss~t( ~ i I UTILIZATION OF THE COUNTY'S DWELLING UNIT ALLOCATION AFFORDABLE RESIDENTIAL PERMIT ALLOCATION SYSTEM FOR THE VERY LOW TO MODERATE INCOME RESIDENTS OF MONROE COUNTY. WHEREAS, the Board of County Commissioners (BOCC) in accor- dance with Section 163.01 F. S. , executed a Governmental Interlocal Agreement, dated April 14, 1993 approved by Resolution 162-1993 appoints the Monroe County Housing Authority (MCHA) to act as the County's Agent in providing professional services in securing affordable housing programs for the County and its very low to moderate income residentsi and WHEREAS, the Monroe County BOCC approved Ordinance 012-1993 - State Housing Initiatives Partnership (SHIP) on March 24, 1993 i and WHEREAS, the Monroe County BOCC approved the County's SHIP three-year plan for the period 1992 thru 1995 to insure receipt of $250,000 annually for Affordable Housing which includes a first time homeownership component of $175,000 annuallYi and WHEREAS, the Monroe County BOCC approved application competitive HOME Funds by Resolution 255-1993 dated July 6, to the State of Florida Housing Finance AgencYi for 1993 WHEREAS, the Monroe County BOCC approved execution of a HOME Contract with the Florida Housing Finance Agency in an amount of $1,499,750 for first time homeownership in accordance with Resolu- tion 183-1994 dated July 12, 1994i and WHEREAS, the Monroe County BOCC approved application for HOME Disaster Relief First Time Homeownership funds from the Florida Housing Finance Agency in the amount of $1,057,000 in accordance with Resolution 088-1994 dated March 23, 1994i and WHEREAS, the Florida Housing Finance Agency effective October 28, 1994 ranked and approved the Monroe County HOME Disaster Relief Grant Application for fundingi and WHEREAS, the Florida Housing Finance Agency effective August 15, 1994 has made available $466,000 in HAL First Time Homeowner- ship down payment and closing cost assistancei and WHEREAS, the Monroe County BOCC sitting as the Monroe County Land Authority on May 17, 1994 in accordance with Resolution 1-1994 approved the payment of an amount not to exceed $150,000 for Single Family Mortgage Revenue Bond first mortgage financing for first time homeownership; and WHEREAS, a commitment fee (repayable at closing) was paid in an amount of $90,000 to secure $9,000,000 in Single Family Mort- gage Revenue Bond First Mortgage financing at 6.8%, 30 year fixed to leverage the County's SHIP and HOME first time homeownership programs, available August 15, 1994; and WHEREAS, MCHA in conjunction with the County's three Boards of Realtors compiled a one-year housing sales analysis for Monroe County to substantiate the requested increase of the HUD 203-b Mortgage limits and Florida Housing Finance Agency sales price limits from $83,160 for existing homes to $124,875 and $95,400 for new homes to $135,714, approved by HUD on February 4, 1994 and the State of Florida Housing Finance Agency on May 26, 1994; and WHEREAS, the Monroe County BOCC adopted Ordinance 016-1992 amending the Land Development Regulations of Monroe County which regulated the rate at which the County will issue building per- mits for residential dwelling units, effective June 23, 1992; and WHEREAS, the Dwelling Unit Allocation Text Amendment provided for fifty-two Affordable Residential Units annually to be made available quarterly in three geographic areas; and WHEREAS, the Monroe County Planning Department September 1993 Annual Review of the Dwelling Unit Allocation Ordinance reported eleven Affordable Residential Unit awards issued for the report- ing period, 1992-93; and WHEREAS, forty-one Affordable Residential Units unapplied for were transferred to market rate for 1993-94; and WHEREAS, the Monroe County Planning Department has not com- pleted the 1994 Annual Review of the Dwelling Unit allocation and reports twelve Affordable Residential Unit awards issued for the reporting period, 1993-94; and WHEREAS, forty Affordable Residential Units unapplied for will be transferred to market rate for 1994-95; and WHEREAS, the Monroe County year 2010 Comprehensive Plan Tech- nical Document, Housing Element, page 7-1, Table 7-1, indicates that over 33% of the County's housing stock is Mobile Homes/ Trailers/Other; and WHEREAS, the Monroe County First Time Homeownership Programs precludes the acquisition of Mobile Homes; and WHEREAS, the Monroe County Year 2010 Comprehensive Plan Tech- nical Document, Housing Element, page 7-4, indicates the median value of specified owner occupied units in Monroe County accord- ing to the 1990 census was $151,200; and WHEREAS, the second home purchaser from out of County and/or out of State is competing directly with the County's First Time Homeownership Program participants for available limited housing product in this price range; and WHEREAS, the MCHA, Special Programs Office's experience with the SHIP first time homeownership program component is that at least 80% of the homes available for purchase for under $100,000 will require a $4,000 to $7,000 investment in rehabilitation to cure substandard housing conditions not in compliance with Feder- al HUD Housing Quality Standards Inspection guidelines; and WHEREAS, the County's first time homeownership program will assist in reducing the County's substandard housing (excluding mobile homes) and requires cess pit replacement with septic sys- tem; and WHEREAS, there is presently a severe shortage of safe, sani- tary and decent housing for program participants to purchase for under $100,000; and WHEREAS, the Monroe County Growth Management Division Afford- able Housing Program Design and County Code is inconsistent with existing State and Federal Rental Affordable Housing, First Time Homeownership and residential first mortgage lending programs; and WHEREAS, the present Monroe County Affordable Housing Land Development Regulations appears to have been designed for rental affordable housing programs since First Time Homeownership Pro- grams were not available to Monroe County residents at the time the Land Development Regulations were written; and WHEREAS, the Monroe County Growth Management Affordable Hous- ing Program Design requires a very low to moderate income resi- dent of the County to be the owner of a parcel of land and expend significant additional funds for HRS septic approval, survey, plans and specifications, percolation tests, engineering, environ- mental studies, county fees, etc., prior to applying for a permit with no assurances that they will receive an affordable housing allocation award; and WHEREAS, the investment required from the County's very low to moderate residents who are the least able to afford it and for whom the Affordable Housing allocation was designed could range from a low of $6,000 to a high of $20,000; and WHEREAS, the Monroe County Growth Management Affordable Hous- ing Deed Restriction precludes the recipients of affordable hous- ing dwelling allocation awards from obtaining conventional first mortgage financing; and WHEREAS, the Monroe County Growth Management Division Afford- able Housing Program design and Deed Restriction limits the house- holds' income from ever exceeding 120% of the median for the 20 year affordability period and provides no remedy other than to move out of their house if they are determined to have exceeded the 120% of the median income limit; and WHEREAS, MCHA has successfully implemented numerous goals, objectives, and/or policies as detailed in the Monroe County Year 2010 Comprehensive Plan Policy Document, 2.6 Housing, by expand- ing the County's participation in Federal and State Housing Assis- tance Programs (Policy 601.1.5), prepared the state's SHIP Ordi- nance and Plan (Policy 601.1.10), adopted programs and policies for public-private partnerships (Policy 601.2.1), obtained Commu- nity Development Block Grant Funds in the amount of $650,000 and Elderly Rehabilitation Grant in the amount of $262,000 to elimi- nate substandard housing (Objective 601.3), continued to make available HUD rental rehabilitation programs (Policy 601.3.3), and assisted the Monroe County Land Authority in defining their role in Affordable Housing; and WHEREAS, MCHA is precluded from achieving the County's goal 601 lito facilitate access by all current and future residents to adequate and affordable housing that is safe, decent, and structurally sound II by the inability of first time homeownership program participants to acquire affordable dwelling unit awards, because of the investment required, availability of first mort- gage financing and a reasonable expectation that they can pursue enhanced compensation levels for themselves and their families without the fear of required economic servitude or loss of their homes by County regulations; NOW, THEREFORE, BE IT RESOLVED THAT THE MONROE COUNTY BOARD OF COUNTY COMMISSIONERS hereby directs staff to prepare the appli- cable administrative and policy changes required to permit and facilitate the successful utilization of the County's Dwelling Unit Allocation for Affordable Residential Permits by the very low to moderate income residents of Monroe County as follows: 1) On an interim basis, the County will subordinate its Af- fordable Housing Restrictive Covenants to an Institutional First Mortgage Lender for First Time Ownership; and 2) Directs Growth Management Staff to develop with the Monroe County Housing Authority the permanent basis for changes to the Land Development Regulation Text to facilitate utilization of Affordable Housing Rate of Growth award allocations; and NOW, THEREFORE BE IT FURTHER RSOLVED THAT THE MONROE COUNTY BOARD OF COUNTY COMMISSIONERS hereby recognizes the unique impor- tance of providing affordable housing opportunities to the very low to moderate income residents of the County and hereby directs Growth Management staff to treat the Affordable Housing Land Development Text Changes as a single issue process requiring immediate attention and action by Monroe County and the Florida Department of Community Affairs. This resolution shall become effective immediately upon adoption by the Board of County Commissioners. PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida, at a regular meeting of said Board held on the 22ND day of November, A. D., 1994. Mayor Freeman YES Mayor Pro Tern London YES Commissioner Douglass YES Commissioner Harvey YES Commissioner Reich YES BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA By cSL~/~~4~ MAYOR/C~RMAN (SEAL) ATTEST: DANNY L. KOLHAGE, CLERK BY: /P~~cf"'~) DEP Y C RK