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R97-061RESOLUTION R97-~/ A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, SUPPORTING THE 1997 - 2000 LOCAL HOUSING ASSISTANCE PLAN (INCENTIVE PLAN) FOR THE CITY OF BOYNTON BEACH, ESTABLISHED PURSUANT TO THE STATE HOUSING INITIATIVES PARTNERSHIP ACT; AND 'PROVIDING AN EFFECTIVE DATE. WHEREAS, the State Housing Initiative Partnership Act ("Act") provides for the establishment of local housing assistance programs; and WHEREAS, pursuant to the Act, the City Commission of the City of Boynton Beach, Florida ("City") has established a local housing assistance program ("Program"); and WHEREAS, the City Commission deems it to be in the best interests of the citizens and residents of the City of Boynton Beach to support the Loca Housing Assistance Program established pursuant to the State Housing Initiatives Partnership Act; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, THAT: Section t. The foregoing "Whereas" clauses are true and correct and are hereby ratified and confirmed by the City Commission. Section 2. Consistency with the Comprehensive Plan: The City Commission of the City of Boynton Beach, Florida, hereby finds, declares and certifies that the Program is consistent with the City's adopted comprehensive plan, or will be addressed, as necessary or appropriate, by the City's comprehensive plan amendments process as soon as practicable. Section 3. Findings as to Administrative Costs: The City Commission of the City of Boynton Beach, Florida, hereby finds that the costs of administering the Program shall exceed five percent (5%) of program Funds. Accordingly, pursuant to the Act, the City hereby authorizes expenditures of no more than ten percent (10%) of the Program funds for administration and implementation of the Program. Section 4. That a copy of the City of Boynton Beach Local Housing Assistance Plan is attached hereto as Exhibit "A and made a part hereof. Section 5. That the City of Boynton Beach hereby supports the Local Housing Assistance Program established pursuant to the State Housing Initiative Partnership Act. Section 6. upon passage. This Resolution shall become effective immediately PASSED AND ADOPTED this/..~'day of April, 1997. CITY OF BOYNTON Mayor FLORIDA ATTEST: Cit~'Clerk - '~'--~ (core Crommissioner Commissioner CITY OF BOYNTON BEACH STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM LOCAL HOUSING ASSISTANCE PLAN For State Fiscal Years 1997-98, 1998-99, and 1999-2000 City of Boynton Beach State Housing Initiative Partnership (SHIP) Program Local Housing Assistance Plan State Fiscal Years 1997- 1998 -1999 1. PROGRAM DESCRIPTION The City of Boynton Beach Local Housing Assistance Plan is designed to provide increased affordable housing for very low- income, low-income, and moderate income households within the City. This will be achieved through production, acquisition, and rehabilitation of affordable housing using funds as provided by the State Housing Initiatives Partnership Act (SHIP). The City of Boynton Beach will provide GAP financing in the form of no interest deferred loans to eligible, qualified households for the purchase of a new or existing homes which may or may not need additional rehabilitation repairs. Funds are also loaned for rehabilitation repairs of owner-occupied homes. The deferred payment loan is forgivable 10% a year for 10 years. In the event the property is transferred, sold, or refinanced or ceases to be owner occupied within the ten year period, the pro-rated amount of the loan will become due and payable. Both strategies will serve very low, low, and moderate income households. The City of Boynton Beach has targeted the older more depressed area east of Interstate 95, west of the FEC railroad as the area for redevelopment where SHIP funds will be used. However, eligible applicants may be able to use these funds anywhere within the city limits. Mobile homes, condominiums, and rental properties are not eligible for assistance. The Plan covers a three year period covering fiscal years 1998-99, 1999-2000. 1997-98, The three year Housing Assistance Plan was developed from information and suggestions received from publicly noticed meetings inviting lenders, developers, realtors, and non profit developers of affordable housing and support services.. The following organizations were major contributors to the strategy: The Community Financing Consortium Inc., The Boynton Beach Community Development Corp., The TED Center, the Local Initiatives Support Corp. (LISC), and various local lenders and developers. The Plan was refined and developed with the input received on administration, partnerships, funding limits, program strategies and home owner training. Support Services: The Local Partnership has a variety of organizations that provide services to SHIP applicants. The City of Boynton Beach has added The Boynton Beach Life Care Center, a non profit organization which provides a self sufficiency program which encourages among other things education, training, and home ownership to its priorities in its CDBG'application. The City of Boynton currently provides rent free housing in a City owned building for the local headstart program which accommodates child care for low income residents in the target area. The City also provides the Dick Webber Center for the Prevention of Child Abuse and it's Targeting Teen Center free accommodations. This non profit agency provides counseling in the form of referral to agencies to meet the needs that are necessary for the achievement of self sufficiency for it's clients. II.. There is no interlocal agreement applicable. III. Local Housing Partnerships The City of Boynton Beach currently enjoys a successful Partnership with local lenders, developers, Community based organizations and non profits in the pursuit of affordable housing opportunities. Efforts to expand this arena have included the invitation to real estate brokers as well. Staff has met on several occasions to solicit input from these organizations to broaden opportunities for decent affordable housing. The Partnership will continue to meet on a regular basis to evaluate Bo the overall effectiveness of the housing program to make suggestions for improvement as needed. The City of Boynton Beach currently has a parmership with five local lenders whereby it has allocated ad valorem tax dollars to leverage loans from these lenders to provide housing rehabilitation. These dollars help reduce the risk that may be involved to lenders and helps add to the equity needed to supply large dollars required to bring substandard houses up to code. Home buyer training is also available through local lenders. The Local Initiatives Support Corporation (LISC) and the Community Financing Consortium, and Centro Camposino have formed a partnership to provide home buyer counseling in the form of a "training institute". This collaborative will provide counseling to potential home buyers to inform them of their duties and responsibilities as homeowners and create a form of micro lending for small industries for potential low income homebuyers with skills that they can perform at home. Ad valorem tax dollars are currently used to provide landscape grants, pay permit fees that cannot be waived, rehabilitation to substandard units, and acquire land for new construction. SHIP funds will free up those ad valorem dollars that are currently being used for rehabilitation, to enable the City to use more ad valorem dollars for land acquisition. The recent entitlement status CDBG dollars that will be provided can be used for a broader range of capital improvements and economic development to further enhance the housing stock of the City. IV. Strategies Purchase Assistance Loan Program - SFY 97/98, 98/99, and 99-2000 Assist very low, Iow and moderate home buyers with the purchase of a home. This loan will provide "GAP" financing in the form of a deferred loan for first mortgage assistance to insure affordable monthly payments. Homes needing repairs must meet the guidelines in the definition referenced in Rule 91-37.00(31), F.A. Code and Chapter 553,F.S. "Building Construction Standards." Eligible costs under this strategy include down payment and closing costs on first mortgage and repairs needed to make the unit habitable. Eligible property include newly constructed homes (built within 12 months of closing), or existing homes which may or may .not need rehabilitation. Rehabilitation is defined as the repairs or improvements which are needed for safe and sanitary habitation, correction of substantial code violations or the creation of living space because of overcrowding.. The maximum per unit award amount is limited to $20,000. Each applicant will be responsible for a minimum of $1,500.00 towards their down payment/closing costs and/or processing of their mortgage loan. The program will provide an interest free deferred payment loan covering the full amount of assistance to qualified, eligible home buyers. The deferred payment loan is forgivable at 10% per year for 10 years providing the home remains owner occupied and honors all requirements of the deferred payment loan and the second (subsequent) mortgage is placed on the home. If the home is sold, transferred or refinanced prior to the 10 year period, the deferred payment loan is recaptured at time of closing at a pro-rated sum and returned to the City of Boynton Beach SHIP Program. In case of death of the home owner, the deferred payment loan would continue as long as the new owner is income eligible under the SHIP guidelines, and resides in the dwelling. If the new owner is not eligible, then the remaining pro-rated sum of the loan would be due and payable. RECIPIENT SELECTION - GAP FINANCING The applicants will be selected on a first come, first serve basis, must be certified as very low, low or moderate income. The potential homebuyer must be credit worthy and have sufficient income required to obtain mortgage financing from a participating lender, and must attend a homebuyer education course offered by participating lenders and community based development organizations. The 4 applicant must not own any other residence unless it is being replaced with the construction of a new home through the SHIP Program. Applicants may only receive assistance once under the SHIP Program. Bo REHABILITATION DEFERRED LOAN-SFY 97-98, 98-99.99-2000 The City of Boynton Beach passed in 1996 a Community Appearance Code Ordinance. The result of stepped up code enforcement has made rehabilitation a cost burden for many very low, low and moderate income residents. This program is designed to assist very low, low or moderate-income homeowners with needed repairs as defined by Rule 91-37.001(31), Florida Administrative Code. Rehabilitation is defined as the repairs or improvements which are needed for safe, or sanitary habitation, correction of substantial code violations, or the creation of additional living space to correct overcrowding. Deferred Payment Loans are provided to eligible households for the repair of owner-occupied units. Repairs of an emergency nature are given priority. Mobile homes, condominiums, and rental units are not eligible for assistance. A dollar for dollar match is mandatory for moderate income home owners who wish to receive rehabilitation repair funds through the SHIP Program. Ship funds maybe matched with private funds, bank loans, credit union loans, and Community Development Block Grants (CDBG) funds. The SHIP Administrator will waive the match requirement for very low and low income home owners if it is determined that the home owner can not afford to provide a match, or if a subsidized match is not available. Applicants will be selected on a first come, first serve basis. The unit assisted must be owner occupied and located within the City of Boynton Beach. Applicants may not own another residence' and must own and occupy the home being rehabilitated for the duration of the deferred payment loan. All property taxes and/or assessments must be current, there may not be any judgments or liens against the property, and any first mortgage must be current. A housing unit may only receive assistance once under the SHIP program. Mobile homes, rentals, and condominiums are not eligible for assistance. An interest free deferred payment loan will be provided for qualified applicants..The deferred loan is forgivable at 10% per year for ten years. The City will place a mortgage on the unit in the amount of the assistance provided. In the event the home is sold, transferred, or refinanced, the pro rated amount remaining on the loan will be due and payable. In case of death of the home owner, the deferred payment loan would continue as long as the new owner is income eligible under SHIP guidelines, and resides in the dwelling. In the event the new owner is not eligible, then the remaining pro rated sum would be due and payable. ELIGIBLE REPAIRS: Eligible repairs may include, but are not limited to cost of labor and materials for: ae Installation and/or repairs of sanitary water and waste, disposal systems, together with related plumbing, and fixtures, which will meet local health department requirements. be Energy conservation measures such as installation and combination screen-storm windOws. Repair or replacement of heating and/or cooling system. Electrical wiring. Repair or provision for structural supports and foundation Repair or replacement of the roof. Replacement of seriously deteriorated siding, porches, stoops. or i hJ Alterations of the unit's interior or exterior to provide greater accessibility for any family members that may be handicapped or have mobility problems. Additions to any dwelling when it is clearly necessary to alleviate overcrowding or to remove any health hazards to the occupants. Other repairs deemed necessary Coordinator and Ship Administrator. RECIPIENT SELECTION-REHABILITATION by the Construction An applicant may submit a completed SHIP Application to the City of Boynton Beach for determination of eligibility at any time. Applicants are required to provide all documentation requested for income, eligibility, and qualification determination. Applications are processed on a first come, first serve basis by income category. A credit check may be provided by participating lenders for each applicant and .title search of the applicants property may be conducted depending on the circumstance. Applicants with excessive liens or back taxes will be denied assistance until such time liens are satisfied and back taxes are paid.. If it is determined by the City of Boynton Beach SHIP Administrator that the applicant qualifies for assistance, a home Inspection and work write-up will be performed by the SHIP Construction Coordinator. The inspection report will specify what eligible repairs are necessary for the home. Funds will be encumbered for eligible applicants whose homes are determined to be repairable according to Program Guidelines and Building Construction Standards of the Standard Housing Code, Chapter 553, Florida Statutes.. All SHIP funds will be expended in a manner that will insure that there will be no discrimination on the basis of race, creed, color, religion, age, sex, familial status, handicap, or national origin. Persons selected for SHIP assistance will be required to contractually agree to all SHIP program guidelines, and certify that the unit assisted will be their only residence. A housing unit can not be assisted more than once with SHIP funds. Applicants determined to be ineligible may reapply for SHIP assistance with The City of Boynton Beach after six (6) months from the date of the last application. V. TIME TABLE FOR EXPENDITURE FY 97-98 Submit Plan for Approval May Advertise funds AvailabilitySept Begin taking Applications Oct. Encumber Funds Dec. Expend. All Funds June Submit Annual Reports Nov. Submit Housing Incentive June Plan for Approval FY 98-99 2,1997 1997 1997 1998 2000 '97,98,99,2000 '98 Advertise Begin Taking Applications Encumber Funds Expend all Funds Annual Reports FY99-2000 Sept1998 Oct. 1998 Dec. 1999 June 2001 Nov'98,'99,2000,2001 Advertise Sept. 1999 Begin Taking Applications Encumber Funds Expend All Funds Annual Reports due Oct.. 1999 Dec. 2000 June 2002 Nov.'99, 2000 2001, 2002 VI. AFFORDABILITY A. Homeownership Household Size Very Low-Income Low-Income Moderate-Income # of Persons 50% of Median 80% of Median 120% of Median 1 $17,100.00 $27,350.00 $41,040.00 2 $19,500.00 $31,250.00 $46,800.00 3 $21,950.00 $35,150.00 $52,680.00 4 $24,400.00 $39,050.00 $58,560.00 5 $26,350.00 $42,150.00 $63,240.00 6 $28,300.00 $45,300.00 $67,920.00 7 $30,250.00 $48,400.00 $72,600.00 8 $32,200.00 $51,550.00 $77,280.00 *Subject to changes made annually by U..S. HUD. "Affordable means that monthly rents or monthly mortgage payments including takes and insurance do not exceed 30 percent of that amount which represents the percentage of the median adjusted gross annual income for households. It is not the intent to limit an individual's ability to devote more than 30 percent of his income for housing, if30 percent of its income shall be deemed affordable. If the first mortgage lender is satisfied that the household can afford mortgage payments in excess of the 30 percent benchmark. The maximum purchase price for a new home is $134,040.00 The maximum purchase price for an existing home is $I07,747.00. B. Rental - Not Applicable. VI. ADVERTISEMENT AND OUTREACH The City of Boynton Beach distributes flyers and brochures to any person organization requesting information on the SHIP Program. Information will be available in the City of Boynton Beach Building Department, and displayed in the main lobby of City Hall, and the lobbies of participating lending institutions.. The City of Boynton Beach has been featured in the local newspapers with several articles concerning the pending implementation of the program. VII. Availability of SHIP funds will be advertised at least 30 days prior to the beginning of an application period. For those strategies which allow applications to be submitted on a continuing basis, the availability of funds will be advertised annually. ADMINISTRATIVE EXPENSES The Community Redevelopment Department will be responsible for the day to day operations of the SHIP program. Administrative functions include: advertising availability of funds and community outreach, applicant intake & income certifications, work write ups and inspections, coordination with first mortgage lenders and counseling services, reviewing and evaluating program effectiveness, and submittal of plan amendments and annual reports to the Florida Housing Finance Agency. The maximum of ten percent (10%) of all the monies received as the local housing distribution of $307,068.00 from fiscal year 1997-98 Shall be used to cover salary and administrative expenses for the SHIP Program. Administrative expenses in excess of the maximum ten percent (10%) SHIP allocation will be supplemented by city general funds. The total administrative budget is estimated at $30,700.00 for 1997-98, $30,700.00 for 1998-99, and $30,700.00 for 1999-2000 fiscal years. 10 ADMINISTRATIVE BUDGET Salary & Benefits Advertising Training Travel OffiCe Supplies Total $29,000,00 500.00 250.00 250.00 700.00 $3O,7O0.OO 11