Loading...
R09-064 (2 Re-adopted) If I I RESOLUTION R09-064 2 3 4 A RESOLUTION OF THE CITY COMMISSION OF 5 THE CITY OF BOYNTON BEACH, FLORIDA, 6 ADOPTING THE ST A TE HOUSING INITIATIVES 7 PARTNERSHIP (SHIP) PROGRAM LOCAL HOUSING 8 ASSIST ANCE PLAN, FOR STATE FISCAL YEARS 9 2009/10, 2010/11, 2011/12, AS WELL AS INSURING 10 THAT SAID CHANGES ARE CONSISTENT WITH II ALL PRIOR YEAR CHANGES; PROVIDING AN 12 EFFECTIVE DATE. 13 14 WHEREAS, in accordance with Florida Statutes Chapter 420, dedicated revenues 15 resulting from the William E. Sadowski Affordable Housing Act are distributed to various 16 municipalities that are "entitled" communities to assist with affordable housing efforts; and 17 WHEREAS, The Plan (attached hereto and made a part hereof) was initially 18 established in 1997 with input from citizens directly involved in the housing industry, and is 19 consistent with the housing element of the City's Comprehensive Plan; and 20 WHEREAS, the City finds pursuant to Chapter 420.3075(6), Florida Statutes, that 21 5% of the Local Housing Distribution is insufficient to adequately pay the necessary costs 22 of administering the Local Housing Assistance Plan, and intends to utilize the maximum 23 allowable distribution of 10%; and 24 WHEREAS, upon the recommendation of staff, the City Commission deems it to 25 be in the best interests of the citizens and residents of the City of Boynton Beach to adopt 26 the City's Local Housing Assistance Plan (LHAP) for State Fiscal Years. 27 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF 28 THE CITY OF BOYNTON BEACH, FLORIDA, THAT: 29 Section 1. The foregoing "Whereas" clauses are true and correct and are hereby S:ICAIRESOIRe-adopt 09-064 SHIP Housing Plan 200910 doc II I I ratified and confirmed by the City Commission. 2 Section 2. The City Commission of the City of Boynton Beach, Florida, hereby 3 adopts the City's Local Housing Assistance Plan (LHAP) for State Fiscal Years 2009/1 0, 4 2010/11, and 2011/12, as well as insuring that said changes are consistent with all prior year 5 changes, subject to receipt of funding. 6 Section 3. This Resolution shall become effective immediately upon passage. ~ 7 PASSED AND ADOPTED this lti day of May, 2009. 8 9 CIT OF BO~A;H, FLORIDA 10 . '/ 11 ~ /V 12 13 , 14 15 ~OWL. Hay 16 17 18 Commis . oner - Ronald Weiland 19 .- 20 21 22 23 24 Commissioner - Marlene Ross 25 26 ATTEST: 27 28 29 'j c-,V /7 " -f' '-~ ,t' ,.' /,l / ' ~ 30 . :-'7~r:( c{{/ .f 7'tjk-; MI'.at: 3 ~PV net M. Prainit~MC fl 3' City Clerk 33 34 35 36 (Corporate Seal) 37 S:ICAIRESOIRe-adopt 09-064 SHIP Housing Plan 200910.doc I R07,D&1 NAME OF LOCAL GOVERNMENT CITY OF BOYNTON BEACH SHIP LOCAL HOUSING ASSISTANCE PLAN (LHAP) FISCAL YEARS COVERED 2009/2010,2010/2011, & 2011/2012 Department of Development - Community Improvement Division Octavia S. Sherrod, Community Improvement Manager Brenda Cornelius, Affordable Housing Administrator - 1 - I. PROGRAM DESCRIPTION: A. Name of the participating local government and Interlocal if Applicable: CITY OF BOYNTON BEACH Interlocal: Yes No X Name of participating local government(s) in the Interlocal Agreement; N/A B. Purpose of the program: Creation ofthe Plan is for the purpose of meeting the housing needs ofthe very low, low and moderate income households, to expand production of and preserve affordable housing, to further the housing element of the local government comprehensive plan specific to affordable housing. The City of Boynton Beach's Local Housinq Assistance Plan was initiated with the adoption of Ordinance No. 97-11 on May 6, 1997. The proqram was designed to promote and implement the qoals of the State Housing Initiatives Partnership (SHIPI Proqram and the Housin~ Element to the City's Comprehensive Plan by producinq and preservinq affordable housinq. It is used citywide to increase affordable housinq for extremely- low income, very-low income, low-income, and moderate-income households within the City limits. The proqram also helps implement the qoals of the City's Community Development Block Grant rCDBG) Consolidated Plan. The obiectives of the proqram will be achieved pursuant to the SHIP proqram throuqh the production, acquisition, and rehabilitation of affordable housinq usinq funds as provided by the SHIP Act. C. Fiscal years covered by the Plan: 2009/2010,2010/2011, and 2011/2012 D. Governance: The SHIP Program is established in accordance with Section 420.907-9079, Florida Statutes and Chapter 67-37.007 Florida Administrative Code. The SHIP Program does further the housing element of the local government Comprehensive Plan. Cities and Counties must be in compliance with these applicable statutes and rules. - 2 - E. Local Housing Partnership: SHIP Program encourages building active partnerships between government, lenders, builders and developers, real estate professionals, advocates for low- income persons and community groups. The City of Boynton Beach has formed stronq partnerships with the followinq aqencies: The Boynton Beach Faith-Based CDC, a faith based non-profit orqanization and sub recipient of Community Development Block Grant funds. This orqanization acts as a Liaison between the City and its applicants, preparinq them for home ownership with counseling and the necessary hand holdinq that is required to home ownership, to include the assemblinq of necessary documentation. This a~ency is a HUD Certified Housinq Counselinq Aqency, which conducts pre- and post-purchase counselinq workshops, as well as workshops coverinq major and minor home maintenance. The Boynton Beach Community Life Care Center, is a non-profit orqanization which provides self sufficiency to extremely low, very low, and low income residents of the City of Boynton Beach. This Aqency provides self-sufficiency proqrams that encouraqe education, iob traininq, and home ownership as one of its priorities. The Boynton Beach Community Redevelopment Aqency rCRAI has implemented an Affordable Housinq Proqram, which compliments the City's effort to assist potential homeowners within its area to achieve the dream of homeownership Life Improvement for Tomorrow (L1FTI is a non-profit orqanization that provides Home Education, Credit Education, and Money Manaqement classes both in Enqlish and Spanish. The City has also encouraqed its lendinq partners to -fund these classes as well. The City has souqht and encouraqed the participation of local realtors to provide services as aqents for its applicants in the purchasing process. The City of Boynton currently provides rent free housinq in a City owned buildinq for the local Head State Proqram, which accommodates childcare for low-income residents in the tarqet area. F. Leveraging: The Plans are intended to increase the availability of affordable residential units by combining local resources and cost saving measures into a local housing partnership and using public and private funds to reduce the cost of housing. SHIP funds may be leveraged with the local CRA or used to supplement other Florida Housing Finance Corporation programs and to provide local match to obtain federal housing grants or programs. - 3 - Funds from the City of Boynton SHIP may be leveraqed with Florida Housinq Bond, CDBG, CRA, and other public funds with private sector financinq to help reduce the risk to lenders. Leveraginq funds provides homeownership opportunities to extremely-low, very-low, low, and moderate income households. The City of Boynton Beach Community Redevelopment Aqency has purchased property in coniunction with the proiect known as the Heart of Boynton (HOBI. They have conveyed these properties to developers and non-profit orqanizations as incentives to buy down the cost of producinq affordable housinq. The CRA has also offered qrants UP to $50,000 as a match to SHIP and other public funds. G. Public Input: Public input was solicited through face to face meetings with housing providers, social service providers and local lenders and neighborhood associations. Public input was solicited through the local newspaper in the advertising ofthe Local Housing Assistance Plan and the Notice of Funding Availability. In addition to Affordable Housinq Board Advisory Committee meetinqs, other input was solicited from housinq partners, lenders, realtors, providers of social services and local neiqhborhood associations. H. Advertising and Outreach: The county or eligible municipality or its administrative representative shall advertise the notice of funding availability in a newspaper of general circulation and periodicals serving ethnic and diverse neighborhoods, at least 30 days before the beginning ofthe application period. Ifno funding is available due to a waiting list, no notice of funding availability is required. The City of Boynton Beach distributes flyers and brochures to local churches located in the CDBG tarqet neiqhborhoods, Title XX Day care centers, the City library, the City's Local Housinq Partners and to any person or orqanization requestinq information on the SHIP Proqram. Information is available in the City of Boynton Beach Department of Development, displayed on the City's website and in the main lobby of the City Hall, as well as the lobbies of participatinq non-profits. Staff also participates in local homebuyer fairs and workshops. The City of Boynton Beach has been featured in the local newspapers with several articles concerninq the pending implementation of the proqram. I. Discrimination: In accordance with the provisions of ss. 760.20-760.3 7, it is unlawful to discriminate on the basis of race, creed, religion, color, age, sex, marital status, familial status, national origin, or handicap in the award application process for eligible housing. - 4 - The City of Boynton supports the Fair Housino Center of the Greater Palm Beaches in an effort to deter discrimination in housinq. J. Support Services and Counseling: Support services are available [rom various sources. Available support services may include but are not limited to Homeownership Counseling (Pre and Post), Credit Counseling, Tenant Counseling and Transportation. A maximum of three percent 13%1 of the SHIP fundino will be allocated durino all three fiscal years for providino home ownership training and counselino for first time homebuyers as well as owners of homes assisted throuqh the Local Housinq Assistance Proqram. This will be a part of the onooing partnership with local lenders, Life Improvement for Tomorrow, the Boynton Beach Faith-Based CDC, and any other providers of this service that are identified by the City at no charoe to the applicants. These funds will defray the costs normally associated with this service. Post purchase traininq will emphasize budoetino and maintenance. The Boynton Beach Faith-Based CDC is certified as a HUD counselor. K. Purchase Price Limits: Purchase Price Limits: The sales price or value of new or existing eligible housing may not exceed 90% of the average area purchase price in the statistical area in which the eligible housing is located. Such average area purchase price may be that calculated for any 12-month period beginning not earlier than the fourth calendar year prior to the year in which the award occurs. The sales price of new and existing units, which can be lower but may not 90% of the median area purchase price established by the U.S. Treasury Department or as described above. The methodology used is: X Independent Study (copy attached) _ U.S. Treasury Department Local HFA Numbers The purchase price limit for new and existing homes is shown on the Housing Delivery Goals Charts. The maximum purchase price for a new and existinq home is $235,200.The maximum purchase price limit will be adiusted as needed in response to The Florida Housino Finance Corporation and chanoes in the local real estate market. L. Income Limits, Rent Limits and Affordability: The Ll1come and Rent Limits used in the SI-IIP PrOE',lanl are updated alulually from the Department of Housing and Urban Development and distributed by Florida Housing Finance Corporation. Affordable means that monthly rents or mortgage payments including taxes and insurance do not exceed 30 percent ofthat amount which represents - 5 - the percentage of the median annual gross income for the households as indicated in Sections 420.9071 (19), (20) and (28), F.S. However it is not the intent to limit an individual household's ability to devote more than 30% of its income for housing, and housing for which a household devotes more than 30% of its income shall be deemed Affordable if the first institutional mortgage lender is satisfied that the household can afford mortgage payments in excess of the 30% benchmark and in the case of rental housing does not exceed those rental limits adjusted for bedroom size. It is not the intent of the City of Boynton Beach to limit an individual household's ability to devote more than 30% of its income for housinq. If a household devotes more than 30% of its income, it shall be deemed Affordable, if the first institutional mortoaqe lender and the City of Boynton Beach are both satisfied that the household can afford mortoaoe payments in excess of the 30% benchmark. The City of Boynton Beach does not have a rental strateoy. M. Welfare Transition Program: Should a eligible sponsor be used, the city/county has developed a qualification system and selection criteria for applications for Awards to eligible sponsors, which includes a description that demonstrates how eligible sponsors that employed personnel from the Welfare Transition Program will be given preference in the selection process. Although the City of Boynton Beach does not have a rental strateqy, we are committed to continuino our partnership of leveraoinq SHIP funds with the local Housino Authorities "Self-Sufficiency Proqram" located in Palm Beach County. N. Monitoring and First Right of Refusal: In the case of rental housing, the staff or entity that has administrative authority for implementing the local housing assistance plan assisting rental developments shall annually monitor and determine tenant eligibility or, to the extent another governmental entity provides the same monitoring and determination, a municipality, county or local housing financing authority may rely on such monitoring and determination of tenant eligibility. However, any loan or grant in the original amount of$3,000 or less shall not be subject to these annual monitoring and determination of tenant eligibility requirements. Tenant eligibility will be monitored for at least annually for 15 years or the term of assistance which ever is longer unless as specified above. Eligible sponsors that offer rental housing for sale before 15 years or that have remaining mortgages funded under this program must give a first right of refusal to eligible nonprofit organizations for purchase at the current market value for continued occupancy by eligible persons. The Citv of Bovnton Beach does not hove 0 rental strateov. - 6 - O. Administrative Budget: The City of Boynton Beach finds that the moneys deposited in the local housing assistance trust fund shall be used to administer and implement the local housing assistance plan. In accordance with Section 420.9075 Florida Statute and Chapter 67-37, Florida Administrative Code, a county or an eligible municipality may not exceed the 5 percent limitation on administrative costs, unless its governing body finds, by resolution, that 5 percent of the local housing distribution plus 5 percent of program income is insufficient to adequately pay the necessary costs of administering the local housing assistance plan. The cost of administering the program may not exceed 10 percent ofthe local housing distribution plus 5% of program income deposited into the trust fund, except that small counties, as defined in s. 120.52(17), and eligible municipalities receiving a local housing distribution of up to $350,000 may use up to 10 percent of program income for administrative costs. The City of Boynton Beach has determined that five percent (5%1 of the SHIP allocation and five percent (5%1 of the proqram income is insufficient to adequately pay the necessary costs of administerinq the loco' housing assistance plan. Ten percent ( 1 0%1 of the SHIP allocation plus five percent (5%) of program income is necessary to cover administrative expenses for the SHIP Proqram. Administrative expenses in excess of the maximum ten percent ( 1 0%) SHIP allocation will be supplemented by other fundinq sources. The City of Boynton Beach has adopted the above findinqs in the attached resolution, Exhibit E. P. Program Administration: Administration of the local housing assistance plan is the responsibility of the city. Should a third party entity or consultant contract for all of part of the administrative or other functions of the program provide in detail the duties, qualification and selection criteria. The Community Improvement Division of the City of Boynton Beach 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 and income certifications, work write-ups and inspections, coordination with first mortgage lenders and counselinq services, reviewing and evaluatinq proqram effectiveness, and submittal of plan amendments and annual reports to the Florida Housinq Finance Corporation. Q. Essential Service Personnel: Define in accordance with Rule Chapter 67-37.002(8) F.A.C. and Chapter 67-37.005(8), F.A.C. and Section 420.9075(3)(a) FS. - 7 - The City of Boynton defines Essential Service Personnel as persons in need of affordable housinq who are employed in but are not limited to the followinq areas: Essential service personnel and municipal employees for the City of Boynton Beach, teachers and educators, police and fire services, health care personnel, other public services, child care services, retail and wholesale services, and skilled buildinq trades personnel. II. LHAP HOUSING STRATEGIES: NOTE: Include a seoarate strategv for Disaster Mitigation. NOTE: In the event ore(erence is given to Essential Service Personnel, olan text must so state oursuant to Chaoter 67- 37.005(8). F.A.C NOTE: Stratef!11 titles shall be consistent throughout local f!overnment olans. Acceptable strategy titles include but not limited to: Housing Rehabilitation, Impact Fee Assistance: Purchase Assistance Existing with or without Rehabilitation, Purchase Assistance New Construction, Sweat Equity, Replacement Housing. and Disaster Relief. 1. Name of the Strategy: PURCHASE ASSISTANCE Existinq with or without Rehabilitation/New Construction a. Summary of the Strategy: This loan will assist extremely-low, very-low, low, and moderate-income homebuyers with the purchase of a home and will provide "GAP" financinq for first mortqages to insure affordable monthly payments. Eliqible costs under this strateqy may include but are not limited to down payment and c10sinq costs on the first mortqaqe and repairs needed to make the unit habitable. Eliqible properties include newly constructed homes (built within 12 months of c10sinql or existinq homes, which mayor may not need rehabilitation. Rehabilitation is defined as the repairs or improvements needed for safe and sanitary habitation, correction of substantial code violations, or the creation of livinq space due to overcrowdinq. b. Fiscal Years Covered: 2009/2010,2010/2011, and 2011 /2012. c. Income Categories to be served: Extremely Low, Very Low, Low, and Moderate-Income Households. d. Maximum award is noted on the Housing Delivery Goals Charts: - 8 - Extremely Low/Very Low ..........................$60,000/$10,000* Low....... ....................................................... .$50 ,000/$10 ,000* Moderate ..... ........ ........................ ............... ................ $25,000 * An additional $10,000 may be available above the purchase assistance for necessary code-related repairs when applicable. e. Terms, Recapture Program Income and Default. The SHIP funds are provided as a deferred loan. There are no monthly payments requirements associated with this loan. The loan will be concurrent with the first mortqage at a zero percent interest deferred payment loan. The program will provide a deferred payment loan covering the full amount of assistance with a percentaqe of the equity earned to be shared at the time of transfer or c10sinq to qualified, eliqible homebuyer. The deferred payment loan is forqivable at the oriqinal term of mortgage, providing the home remains owner occupied and honors all requirements of the deferred payment loan. A second (subsequent) mortgage will be placed on the home. If the home is sold, transferred , refinanced, or ceases to be owner occupied prior to the original term period, which does not constitute default, the deferred payment loan and the shared equity is recaptured at time of the closing and the funds are returned to the City of Boynton Beach SHIP Program. In case of death of the homeowner, the deferred payment loan would continue as long as the new owner is income eligible under the SHIP quidelines, and resides in the dwellinq. If the new owner is not eligible, the house is sold, transferred, or refinanced, the sum of the loan and the shared equity would be due and payable and the owner must pay a percentaqe of the excess profit to the City of Boynton Beach. All voluntary loan repayments to the proqram will be considered as Proqram Income. Recipients must execute a Promissory Note, Mortgaqe, and Aqreement for First Riqht-of-Refusal. The Mortqaqe and Agreement will be recorded in the public records of Palm Beach County. Include terms of recapture in the event of default (failure to make required payments on a loan secured by a first mortgage which leads to foreclosure and/or loss of property ownership ). f. Recipient Selection Criteria: The applicant will be selected on a first-come, first-served basis, and must be certified as very-low, low, or moderate-income as a result of third party verifications. The potential homebuyer must be credit worthy and - 9 - have sufficient income required to obtain mortqaqe financinq from a participating lender, and must attend a homebuyers education course offered by participatinq lenders and/or community based development orqanizations. The applicant must not own any other residence unless it is beinq replaced with the construction of a new home thouqh the SHIP Proqram. An applicant may submit a completed SHIP application to the City of Boynton Beach for determination of eliqibility at any time. Applicants are required to provide all documentation requested for income, eliqibility, and qualification determination. Applicants must be income eliqible with incomes between zero and 120% of the median income as provided by the State and adiusted to family size. Purchasers must be first time homebuyers, to include displace homeowners due to divorce , purchasinq within incorporated Boynton Beach area, and may not currently have assets exceeding $15,000 (qifts included in the asset calculationl. If the applicant has funds that exceed the $15,000 maximum and is income certified, he/she must commit one third ( 1 /3) of his/her assets to be used in addition to the amount of assistance provided. The exception to this would be if the applicant has funds in a retirement fund that can only be accessed by termination. The LTV's must be adhered to. g. Sponsor Selection Criteria, if applicable: Include qualification system and selection criteria for applications for Awards to eligible sponsors. h. Additional Information: Each applicant will be responsible for a minimum of three percent (3%) towards down payment/c1osinq costs, and/or processinq of their mortqaqe loan, and the purchase of the first year's premium of homeowner's insurance. SHARED EQUITY Should the owner reside in the property for the full term of the oriqinal mortqaqe, the City's mortqaqe is forqiven. If the property is sold, the deed transferred, or the property is rented durinq the first ten ( 101 years of ownership, the owner must repay the entire amount of the City's mortqaqe, and must pay 80% of the excess profit of the equity per the appraised fair market value durinq this time. If the property ceases to be owner occupied due to sale of orooertv. transfer of deed, or rental of property after the ten year period, the owner shall pay to the City of Boynton Beach the principal amount of the oriqinal mortqaqe. - 10 - RIGHT -OF-FIRST -REFUSAL The Riqht of First Refusal shall afford the CITY the riqht to purchase from Borrowers the Mortqaqed Property for the same purchase price as set forth in a written valid offer of a contract for sale and purchase tendered by a third party in an arms lenqth transaction, provided that the purchase price represents the appraised fair market value of the Mortqaqed Property and Borrowers provide written notice to City of their desire to accept said offer of a contract for sale and purchase. CITY aqrees to exercise or waive its Riqht of First Refusal within forty five (45) days of receipt of written notification with COpy of a bona fide offer or proposed contract for purchase from a third party and copy of the appraisal. 2. Name of the Strategy: HOUSING REHABILITATION Sinqle family, detached housinq rehabilitation and/or emerqency repairs. a. Summary of the Strategy: This loan will assist homeowners with needed repairs as defined by Chapter 67-37, Florida Administrative Code. The City of Boynton Beach passed a Community appearance Code Ordinance in 1996. The result of stepped-up code enforcement has made rehabilitation a cost burden for many extremely low, very low, and low Income residents. Rehabilitation is defined as repairs or improvements which are needed for safe or sanitary habitation, correction of substantial code violations, or the creation of additional Iivinq space to correct overcrowdinq. This proqram will address repairs for sinqle family, owner-occupied detached houses within the city limits of Boynton Beach. Applicants can not own another residence. Repairs of an emerqency nature, as determined by the City of Boynton Beach's Construction Coordinator, are given priority. Mobile homes and rental units are not eljqible for assistance in this strateqy. b. Fiscal Years Covered: 2009/2010,2010/2011, and 2011/2012. c. Income Categories to be served: Extremely-Low, Very-Low, Low, and *Moderate-income Households. *Moderate income residents will be considered only for life threatening emerqencv repairs. d. Maximum award is noted on the Housing Delivery Goals Charts: - 11 - Extremely Low Income Households ........................ $50,000 Very Low and Low Income Households ................ $50,000 Moderate-income Households ............................. *$20,000 e. Terms, Recapture, Program Income and Default: Include terms of recapture in the event of default (failure to make required payments on a loan secured by a first mortgage which leads to foreclosure and/or loss of property ownership). SHIP funds are provided as a deferred loan. There are no monthly payments requirements associated with this loan. The deferred loan will be partially forqiven each year over a ten-year (101 period, at the conclusion of which the debt will be considered satisfied. If at any time durinq the ten-year (101 period the property is sold, refinanced, rented or ceases to be owner-occupied, which does not constitute default, the loan recipient shall pay to the City the remaininq balance of the loan. All voluntary loan repayments to the proqram will be considered as Proqram Income. Recipients must execute an aqreement, Promissory Note, and Mortqaqe. The Mortqage will be recorded in the public records of Palm Beach County. f. Recipient Selection Criteria: An applicant may submit a completed SHIP application to the City of Boynton Beach for determination of eliqibility at any time. Applicants are required to provide all documentation requested for income, eliqibility, and qualification determination. Applicants must be income eliqible with incomes between zero and 120% of the median income as provided by the State and adiusted to family size. Applications are processed on a first-come, first-served basis. Applicants may not own any other residence; and must own and occupy the home beinq rehabilitated for the duration of the deferred payment loan. All property taxes and mortqaqe payments must be current. Applicants are required to have property insurance. a Sponsor Selection Criteria, if applicable: b' Include qualification system and selection criteria for applications for Awards to eligible sponsors. h. Additional Information: Eliqible repairs may include, but are not limited to cost of labor and materials for: I. Installation and/or repairs of sanitary water and waste, disposal systems, toqether with related plumbinq and fixtures, which meet local health department requirements - 12 - II. Enerqy conservation measures such as installation of energy efficiency door and windows iii. Repair or replacement of heatinq and/or coolinq systems with hiqh enerQy efficient 14 SEER or hiqher iv. Electrical upgradinq v. Repair or provision for structural support and foundation vi. Replacement of seriously deteriorated sidinq, porches, or stoops vii. Alteration of the unit's interior or exterior to provide greater accessibility for any family member that may be physicallv impaired or have mobility problems viii. Replacement housinq to provide GAP financinq to the followinq households of extremely low, very low, and low incomes; with priority qlven to the elderly (62+),and/or medically /physically impaired homeowners in these income cateqories, residinq In homes deemed not viable for rehabilitation. Demolition of existinq property, construction cost of replacement home on the same lot or new location selected by the City of Boynton Beach, and/or the purchase of an existinq home. 3. Name of the Strategy: DISASTER RELIEF a. Summary of the Strategy: In the event of a declared natural disaster, SHIP funds that have not been encumbered, will be used to leverage available federal and state funds to provide assistance to income eliqible households for the purpose of repairinq eliqible housinq, providing assistance with insurance deductibles, and obtaininq short term temporary housinq. Althouqh mobile homes and rental units are not eliqible for repair assistance in this strateqy, the residents of these units may be eligible for assistance with emerqency housinq. b. Fiscal Years Covered: 2009 /2010, 2010/2011 , and 2011 /2012. c. Income Categories to be served: Extremely-Low, Very-Low, Low, and Moderate Income Households. d. Maximum award is noted on the Housing Delivery Goals Charts: $10,000. -13 - e. Terms, Recapture and Default. Include terms of recapture in the event of default (failure to make required payments on a loan secured by a first mortgage which leads to foreclosure and/or loss of property ownership). The SHIP funds are provided in the form of a grant, not requiring households to repay funds used for disaster relief. In the event the City Of Boynton Beach Receives reimbursement from federal or state sources, such repaid funds will be utilized in accordance with the approved Housinq Assistance Plan in effect at the time funds are disbursed. f. Recipient Selection Criteria: 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, eliqibility, and qualification determination. Applicants must be income eliqible with incomes between zero and 120% of the median income as provided by the State and adiusted to family size. Applications are processed will on a first-come, first-served basis. Applicants may not own any other residence; and must own and OCCUpy the home beinq rehabilitated. The property must be located in incorporated Boynton Beach. g. Sponsor Selection Criteria, if applicable: Include qualification system and selection criteria for applications for Awards to eligible sponsors. h. Additional Information: Purchase of emerqency supplies for eliqible households to weatherproof damaged homes, interim repair to avoid further damaqe, tree and debris removal required to make individual housing unit habitable, and post disaster assistance with non-insured repairs. 4. Name ofthe Strategy: FORECLOSURE PREVENTION a. Summary of the Strategy: The foreclosure prevention program provides financial assistance to income eliqible homeowners who are facinq foreclosure. This proqram will assist homeowners within the incorporated Boynton Beach area avoid foreclosure. Funds will be provided to pay either up to six (61 months of delinquent mortQaqe payments IPITll or the maximum award nmn( mt tn n<:;<:;id \Mith brinrtjnrt the l"Y'Ir.drtrtqo ,..., ,rronf n"'e funrJs a~e +O~ ___.,._........_ ...................., ,."" ''''~I':-:1"I'''''''' 111'-"'11~-......,.4 ........ \"....Vllvlll. III I I U I I I owner-occupied units only. - 14 - b. Fiscal Years Covered: 2009/2010,2010/2011, and 2011/2012. c. Income Categories to be served: Extremely-Low, Very-Low, Low, and Moderate Income Households. d. Maximum award is noted on the Housing Delivery Goals Charts: $7,500. e. Terms, Recapture, Program Income and Default. Include terms of recapture in the event of default (failure to make required payments on a loan secured by a first mortgage which leads to foreclosure and/or loss of property ownership). The SHIP funds are provided as a deferred loan. There are no monthly payments requirements associated with this loan. The loan will be concurrent with the first mortqaqe at a zero percent interest deferred payment loan as lonq as the home remains the primary residence of the applicant. The proqram will provide a deferred payment loan covering the full amount of assistance. The deferred payment loan is forqivable at the term of the oriqinal mortgage, providinq the home remains owner occupied and honors all requirements of the deferred payment loan. A second (subsequent) mortqaqe will be placed on the home. If the home is sold, transferred , refinanced or ceases to be owner occupied prior to the original term period, which does not constitute default, the deferred payment loan is recaptured at time of the closinq and the funds are returned to the City of Boynton Beach SHIP Proqram. In case of the death of the homeowner, the deferred payment loan would continue as lon9 as the new owner is income eliqible under the SHIP quidelines, and resides in the dwellinq. If the new owner is not eliqible, the house is sold, transferred, or refinanced; the sum of the loan would be due and payable to the City of Boynton Beach. All voluntary loan repayments to the program will be considered as Program Income. Recipients must execute an aqreement, Promissory Note, and Mortqage. The mortqaqe will be recorded in the public records of Palm Beach County. f. Recipient Selection Criteria: An applicant may submit a completed SHIP application to the City of Boynton Beach for determination of eliqibility at any time. Applicants are required to provide 011 documentation requested for income, eliqibiiity, and qualification determination. Applicants must be income eligible with incomes between zero and 120% of the median income as provided by the State and adiusted to family size. The homeowner must demonstrate - 15 - their ability to continue to maintain their mortqaqe payments after assistance is received. The applicant must prove that the delinquency is due to a siqnificant loss of income such as loss of employment, sudden medical illness or expenses, divorce or separation, death in the family:: and/or u nforeseen/u nexpected/ una ntici pated home repairs. Applications will be processed on a first-come, first-served basis. Applicants may not own any other residence; and must own and occupy the assisted unit. The property must be located in the incorporated Boynton Beach area. g. Sponsor Selection Criteria, if applicable: Include qualification system and selection criteria for applications for A wards to eligible sponsors. h. Additional Information: Eliqible Expenses include delinquent mortqaqe payments, late fees, attorney's fees, association fees, and other associated costs. 5. Name of the Strategy: DISASTER MITIGATION a. Summary of the Strategy: This proqram is desiqned to assist homeowners secure and protect their property aqainst hurricane force winds. The funds will assist the home owner with and or the purchase of hurricane shutters. Aluminum storm panels will be supplied, unless the applicant is elderly or physically impaired. In this case, accordion shutters will be installed on the property. b. Fiscal Years Covered: 2009 /2010, 2010/201 Land 2011 /2012. c. Income Categories to be served: Extremely-Low, Very-Low, Low, and Moderate Income Households. d. Maximum award is noted on the Housing Delivery Goals Charts: $10,000. e. Terms, Recapture, Program Income and Default: Include terms of recapture in the event of default (failure to make required payments on a loan secured hy a first mortgage which leads to foreclosure and/or loss of property ownership). - 16 - This SHIP funds are provided as a deferred loan. There are no monthly payment requirements associated with this loan. The deferred loan will be partially forqiven each year over a ten year ( 10) period, at the conclusion of which the debt will be considered satisfied. If at any time during the ten year period the property is sold, refinanced, rented or ceases to be owner-occupied, which does not constitute default, the loan recipient shall pay to the City the remaininq balance of the loan,. All voluntary loan repayments to the proqram will be considered as Proqram Income. Recipients must execute an aqreement, Promissory Note, and Mortqaqe. The Mortqaqe will be recorded in the public records of Palm Beach County. f. Recipient Selection Criteria: An applicant may submit a completed SHIP application to the City of Boynton Beach for determination of eliqibility at any time. Applicants are required to provide all documentation requested for income, eliqibility, and qualification determination. Applicants must be income eliqible with incomes between zero and 120% of the median income as provided by the State and adiusted to family size. Applications are processed on a first -come , first -served basis. Applicants may not own any other residence; and must own and OCCUPy the home beinq assisted. The property must be located within the City of Boynton Beach incorporated area. g. Sponsor Selection Criteria, if applicable: Include qualification system and selection criteria for applications for Awards to eligible sponsors. h. Additional Information: Moderate income applicants must match dollar for dollar of all funds needed to protect the residence from hurricane damaqe. The funds will be collected at closinq from the applicant and placed in an escrow account to be held and disbursed upon completion of installation. Ill. LHAP INCENTWE STRATEGIES In addition to Strategy A and Strategy B listed below, list all incentives as provided in 420.9076(4) FS. A. Name of the Strategy: Expedited Permitting Permits as defined in s. 163.3164(7) and (8) for affordable housing projects are expedited to a greater degree than other projects. 1. Established policy and procedures: Provide Description: - 17 - B. Name of the Strategy: Ongoing Review Process An ongoing process for review of local policies, ordinances, regulations and plan provisions that increase the cost of housing prior to their adoption. 1. Established policy and procedures: Provide Description The following incentive strategies are extracted from the City of Bovnton Beach's Affordable Incentive Plan adopted April 7, 1998. Thev were reviewed bv the City's Affordable Housing Advisory Committee in 2008; per Citv Resolution R08-070, the City Commission approved the Committee's recommendation of no changes needed. . The Expedited process of permits for Affordable Housina Proiects. The Department of Development has been responsible for processinq and facilitating affordable housinq proiects. The Communitv Improvement and Plan Review staff will oversee the proiects certified as "affordable" throuqh the review process in an effort to make sure that thev are processed with three to five 13-5) davs. This division will be the developer's point of contact for all questions concerninq the review process. The Plan Review Administrator will be responsible for expeditinq the building permitting process for affordable housinq proiects. He has desiqnated individuals who have successfully guided and qiven these proiects top priority. Staff will continue to obtain traininq in affordable housing development. . The modification of impact fee reauirements includina reduction of waiver of fees and other methods of fee payment for affordable housina. There is currentlv no provision for waivinq impact fees. However, the Citv of Bovnton Beach has in the past funded the Infill Construction Program from the qeneral fund. These funds subsidized the cost of new construction for affordable units bv paving permit and impact fees for new construction for very low and low-income families buildinq new affordable home within the CDBG target area. Palm Beach Countv allows existinq use credit for residential construction on vacant lots that had prior residential use. This credit applies to the residential and road impact fees, and can vield savings for UP to two thousand dollars per home. Participating builders of affordable housing will be encouraqed to applv for this credit and pass it on to the homebuver. The City Manager will be petitioned to waive pavment of development application, plan check and permit fees for all eliqible proiects certified affordable housinq proiects. . The allowance of increased density levels for affordable housina. (Comprehensive Plan, Housina Element, Policy 6.1.3) The housing element provides for review of zoninq requlations for the purpose of allowinq increased densitv to encourage in provision of affordable housinq. The Citv's Planning and Zoning Department continues its effort to provide for an increase in residential density for the purpose of providinq for affordable housinq. This densitv bonus will be subiect to compatibilitv with the surroundinq natural and phvsical environment, site constraints, and concurrencv manaqement requirements. - 18 - . The reservation of infrastructure capacity for housina for very-low income and low-income persons. A reservation mechanism is not necessary, as adequate capacity exists to serve any Infill proiect initiated within the CDBG tarqet area. This assumption regardinq roads, utilities and recreation is based on available acreage and density limits of the Future Land Use Map of the Comprehensive Plan. state concurrency laws require us to maintain adequate public facilities for everyone and build new facilities once we reach 90% capacity. . The allowance of affordable accessory residential units in residential districts. Zoninq regulations allow accessory buildinqs in districts as long as they conform to the minimum buildinq site regulations that are qenerally applicable in the district where the building is to be located. The City of Boynton Beach will maintain its flexible existing practice in dealing with this issue on a case-by-case basis as needed. . The reduction of parkinQ and setback reauirements for affordable housinQ. Current regulations require off street parkinq for two (2) vehicles. In an effort to maintain the value of property, while at the same time not causing any adverse effect on affordable housing, there shall not be modifications to current regulations qoverninq this issue. Setback requirements in the tarqeted area require a frontage of 25 feet. The city has in the past worked effectively with developers in an effort to design and produce units that have dealt with this effort without causinq any adverse effect on affordable housinq. The City will maintain this flexible practice with dealing with this issue on a case-by-case basis as needed. . The allowance of zero lot-line confiaurations for affordable housina. The City of Boynton Beach's current zoning does not permit zero lot-lines in districts that are not Planned Unit Developments, as it violates the City's set back requirements. However, with the existing minimum lot size requirements in the CDBG tarqet area of 5,000 square feet, it is felt that this size lot is sufficient enouqh to accommodate desired development of affordable housing. . The modification of street reauirements for affordable housina. Due to concerns for safety and aesthetics, there will be no modifications to current regulations governing streets. In the older platted sections, waivers of sidewalk requirements have been granted for developers on a case-by-case basis. These variances are usually qranted in areas that are qenerally consistent with the surrounding area. Consideration may be made in instances where costs involved will hinder producing affordable units. CDBG dollars wi!! be expended on many streets within the tarqet areas to install sidewalks and curbing. Efforts to avoid the variance process with certification of those areas consistent with no sidewalks by the developer will be ongoing. The liaison from - 19 - the Department of Development will expedite this certification process for affordable housing proiects. . The establishment of a process. which the City of Boynton Beach considers. before the adoption of any new leaislation that may increase the cost of housina. The Department of Development's various divisions, particularly the Division of Community Redevelopment, will review any and all policies, procedures, ordinances, regulations, and plan provisions to determine what effects if any they may have on the cost of producing affordable units prior to their passage. The City Manaqer will disperse all information concerning ordinances in sufficient time needed to evaluate and comment on any impact it may have on affordable housinq. . The preparation of printed inventory of locally owned public lands suitable for affordable housina. The Division of Community Redevelopment maintains maps of the current inventory of all vacant land including those properties owned by the City of Boynton Beach and Palm Beach County within the tarqet area. The City funds land acquisition in an effort to acquire land for potential pre qualified homebuyers. This effort has resulted in considerable cost saving in the production of affordable units. - 20- Exhibit "0" CERTIFICATION TO FLORIDA HOUSING FINANCE CORPORATION Name of Local Government: City of Boynton Beach (1 ) The local government will advertise the availability of SHIP funds pursuant to Florida Statutes. (21 All SHIP funds will be expended in a manner which will insure that there will be no discrimination on the basis of race, creed, religion, color, age, sex, familial or marital status, handicap, or national origin. (3) A process for selection of recipients for funds has been developed. (4) The eligible municipality or county has developed a qualification system for applications for awards. (5) Recipients of funds will be required to contractually commit to program guidelines. (6) The Florida Housing Finance Corporation will be notified promptly if the local government will be unable to comply with the provisions the plan. (7) The Local Housing Assistance Plan shall provide for the expenditure of SHIP funds within 24 months following the end of the State fiscal year in which they are received. (8) The plan conforms to the Local Government Comprehensive Plan, or that an amendment to the Local Government Comprehensive Plan will be initiated at the next available opportunity to insure conformance with the Local Housing Assistance Plan. (9) Amendments to the approved Local Housing Assistance Plan shall be provided to the Corporation with in 21 days after adoption. (10) The trust fund shall be established with a qualified depository for all SHIP funds as well as moneys generated from activities such as interest earned on loans. (11 ) Amounts on deposit in the local housing assistance trust fund shall be invested as permitted by law. (12) The local housing assistance trust fund shall be separately stated as a special revenue fund in the local governments audited financial statements, copies of the audits will be forwarded to the Corporation as soon as available. 13) An interlocal entity shall have its local housing assistance trust fund separately audited for each state fiscal year, and the audit forwarded to the Corporation as soon as possible. 1 Exhibit "0" Page 2 Certification (14) SHIP funds will not be pledged for debt service on bonds or as rent subsidies. (15) Developers receiving assistance from both SHIP and the Low Income Housing Tax Credit (L1HTC) Program shall comply with the income, affordability and other L1HTC requirements, Similarly, any units receiving assistance from other federal programs shall comply with all Federal and SHIP program requirements. (16) Loans shall be provided for periods not exceeding 30 years, except for deferred payment loans or loans that extend beyond 30 years which continue to service eligible persons. (17) Rental Units constructed or rehabilitated with SHIP funds shall be monitored at least annually for 15 years for compliance with tenant income requirements and affordability requirements or as required in Section 420.9075 (3)[e). (18) The Plan meets the requirements of Section 420-907-9079 FS, and Rule Chapter 67-37 FAC, and how each of those requirements shall be met. (19) The provisions of Chapter 83-220, Laws of Florida _ has or K has not been implemented. ~~~~~ Chief Ei~~~Signee ~ dI~ufl KURT BRESSNER, CITY MANAGER Witness Type Name and Title ~d~} dOC 9 Do e ~ Approved as to Form: City A Horney 2