HomeMy WebLinkAboutResolution 389-2004
RESOLUTION 389
- 2004
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
MONROE COUNTY, FLORIDA ADOPTING AMENDMENT #1 TO THE STATE
HOUSING INITIATIVES PARTNERSHIP (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
(SHIP) 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 (SHIP)
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 45000 inclusive of cost. Mort a e loans to individuals not to exceed 45000 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 21l.th.. day of October, A.D., 2004 _
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Mayor Nelson ~
Commissioner Rice ~
Commissioner Neugent ~
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-- Comm(""'. \Spehar ~
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BOARD OF COUNTY COMMISSIONERS:. .
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OF MONROE COUNTY, FLORIDA C?'~.
By: /11-", 1 (~:~
Mayor Nel'iin .
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Page 1 of 1
Analysis of SHIP Homebuyer Assistance Program
Real estate pricing has put increasing pressure on the abilty to sucessfuliy 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 01 four = $68.640). The program provides
set aside funding for non.profit entities providing homeownership to low Income households.
The diHlcufty Is the growing gap between a families ability to borrow (based on income) and the COst 01
real estate. This gap has been traditionaliy been addressed by the SHIP Program. The Issue is that
the amount of SHIP assistance necessary is increased SUbstantlaliy 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 estale price is calculated under "Assistance Required" column. Combined with the limited
availability and quality (age. size). of available housing the abilitly to continue to successluliy 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 Homeownership
by Income Range - MONROE COUNTY
(a)
(b)
Base Available
(c)
Borrowing
(b-c)
Assistance
Income Ran.oe Real Estate Capacity R~ouired
$ 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 (8/3/04)
Listings (SFR) 14
Average Price $ 284,400
Average Age 59 Yrs
Avg. Size 777 sq. ft.
Listings by Price/Location
Upper Middle Lower
200k-225k 0 0 0
225k-250k 1 1 0
250k-275k 1 1 2
275k-300k 4 1 1
300k.325k 0 2 0