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R12-100
9 1 RESOLUTION R12- 100 2 3 4 A RESOLUTION OF THE CITY COMMISSION OF 5 THE CITY OF BOYNTON BEACH, FLORIDA, 6 AMENDING THE STATE HOUSING INITIATIVES 7 PARTNERSHIP (SHIP) PROGRAM LOCAL HOUSING 8 ASSISTANCE PLAN (LHAP) AS CONTAINED IN THE 9 REPORT OF THE AFFORDABLE HOUSING to ADVISORY COMMITTEE; PROVIDING AN 11 EFFECTIVE DATE. 12 13 14 WHEREAS, a public meeting of the Affordable Housing Advisory Committee was 15 conducted on September 5, 2012 to review changes to the State Housing Initiatives 16 Partnership (SHIP) program, Local Housing Assistance Plan (LHAP); and 17 WHEREAS, upon the recommendation of staff, the City Commission deems it to 18 be in the best interests of the citizens and residents of the City of Boynton Beach to amend 19 the City's State Housing Initiatives Partnership Program Local Housing Assistance Plan as 20 contained in the report of the Affordable Housing Advisory Committee. 21 1 1 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF 22' THE CITY OF BOYNTON BEACH, FLORIDA, THAT: 23 Section 1. The foregoing "Whereas" clauses are true and correct and are hereby 24 ratified and confirmed by the City Commission. 25 Section 2. The City Commission of the City of Boynton Beach, Florida, hereby 26 amends the City's State Housing Initiatives Partnership Program Local Housing Assistance 27 Plan by decreasing the amounts of the award for the Purchase Assistance Strategy from 28 $60,000, $50,000 and $25,000 for very low, low and moderate income households to 29 $10,000, $7,000 and $5,000 respectively, decrease the maximum purchase price to Document in Windows Internet Explorer $211,375; and deleting the Shared Equity and Agreement for First Right of Refusal clauses 2 3 4 5 6 8' 9' 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 from the Purchase Assistance strategy, a copy of which is attached hereto as Exhibit "A ". Section 3. This Resolution shall become effective immediately upon passage. PASSED AND ADOPTED this i 0 day of September, 2012. CITY OF BOYNTON BE CH, FLORIDA Mayor — W . tla� yor —�k McGrlty' Commis ' er ��i /� i '0 i t �� tommisdoner -St(ven HaKman Commissioner — Marlene Ross ATTEST: M - PAja..4 � J t M. Prainito, MMC Ity Clerk Document in Windows Internet Explorer I i Kfa- goo CITY OF BOYNTON BEACH SHIP LOCAL HOUSING ASSISTANCE PLAN (LHAP) FISCAL YEARS COVERED 2012/2013, 2013/2014, & 2014/2015 Department of Development — Community Improvement Division Octavia S. Sherrod, Community Improvement Manager Brenda Cornelius, Affordable Housing Administrator 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; NIA B. Purpose of the program: Creation of the Plan is for the purpose of meeting the housing needs of the 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 Housing Assistance Plan was initiated with the adoption of Ordinance No. 97 -11 on May 6, 1997. The program was designed to promote and implement the goals of the State Housing Initiatives Partnership (SHIP) Program and the Housing Element to the City's Comprehensive Plan by producing and preserving affordable housing. It is used citywide to increase affordable housing for extremely -low income, very-low income, low- income, and moderate - income households within the City limits. The program also helps implement the goals of the City's Community Development Block Grant (CDBG) Consolidated Plan. The objectives of the program will be achieved pursuant to the SHIP program through the production, acquisition, and rehabilitation of affordable housing using funds as provided by the SHIP Act. C. Fiscal years covered by the Plan: 2012/2013, 2013/2014, and 2014/2015. 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. spa 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 continues its partnerships with the following agencies: The Boynton Beach Faith -Based CDC, a faith based non — profit organization and sub recipient of Community Development Block Grant funds. This organization acts as a Liaison between the City and its applicants, preparing them for home ownership with counseling and the necessary hand holding that is required to home ownership, to include the assembling of necessary documentation. This agency is a HUD Certified Housing Counseling Agency, which conducts pre- and post - purchase counseling workshops, as well as workshops covering major and minor home maintenance. The Community Caring Center of Boynton Beach, Inc. is a non - profit organization which provides self sufficiencyto extremely low, very low, and low income residents of the City of Boynton Beach. This Agency provides self - sufficiency programs that encourage education, job training, and home ownership as one of its priorities. The Boynton Beach Community Redevelopment Agency (CRA) has purchased and donated land to for profit, and non profit organizations as incentives to buy down the cost of producing Affordable Housing. This effort compliments the City's effort to assist potential homeowners within its Community Development area to achieve the dream of homeownership. And, whenever funding is available they have provided down payment assistance for first time homebuyers. Habitat for Humanity of South Palm Beach County — Continues to partner with the City of Boynton Beach, the City of Boynton Beach Community Redevelopment Agency, and the Boynton Beach Faith Based CDC in the construction of new affordable housing. The partners are currently working on the project known as "Ocean Breeze ", which is the construction of twenty one single family homes within the city's target area known as The Heart of Boynton. The City has sought and encouraged the participation of local realtors to provide services as agents for its applicants in the purchasing process. The City of Boynton currently provides rent free housing in a City owned building for the local Head Start Program, which accommodates childcare for low- income residents in the target area. -3- 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. Funds from the City of Boynton SHIP may be leveraged with Florida Housing Bond, CDBG, CRA, NSP1, NSP3, and other public funds with private sector financing to help reduce the risk to lenders. Leveraging funds provides homeownership opportunities to extremely -low, very-low, low, and moderate income households. The City of Boynton Beach Community Redevelopment Agency purchased and donated land to the Boynton Beach Faith Based CDC and Habitat for Humanity in the Heart of Boynton. The Ocean Breeze West Development will offer 21 homes to low and moderate first time home buyers. The homes built by Habitat will be in a land trust contract and the CDC's will be land owned by the homebuyer. Construction has begun and should be completed by mid 2013. The CRA has conveyed these properties to Habitat and the Boynton Beach Faith Based CDC as incentives to buy down the cost of producing affordable housing. 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 of the Local Housing Assistance Plan and the Notice of Funding Availability. In addition to the Affordable Housing Board Advisory Committee meeting, other input was solicited from housing partners, lenders, realtors, providers of social services and local neighborhood 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 of the application period. If no 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 target neighborhoods, Title XX Day care centers, the City library, the City's Local Housing Partners and to any person or organization requesting information on the SHIP Program. Information is available in the City of Boynton Beach Department of -4- Development, displayed on the City's website and in the main lobby of the City Hall, as well as the lobbies of participating 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 concerning the pending implementation of the program. I. Discrimination: In accordance with the provisions of ss.760.20- 760.37, 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. The City of Boynton supports The Legal Aid Society of Palm Beach County and their Fair Housing Project in an effort to deter discrimination in housing. J. Support Services and Counseling: Support services are available from various sources. Available support services may include but are not limited to Homeownership Counseling (Pre and Post), Credit Counseling, Tenant Counseling and Transportation. SHIP funding will be allocated during all three (3) fiscal years for providing home ownership training and counseling for first time homebuyers as well as owners of homes assisted through the Local Housing Assistance Program. This will be a part of the ongoing partnership with local lenders, the Boynton Beach Faith -Based CDC, and any other providers of this service that are identified by the City at no charge to the applicants. These funds will defray the costs normally associated with this service. Post purchase training will emphasize budgeting 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 exceed 90% of the median area purchase price established by the U.S. Treasury Department or as described above. The methodology used is: _ Independent Study (copy attached) _ U.S. Treasury Department _ Local HFA Numbers X Palm Beach County maximum purchase price The purchase price limit for new and existing homes is shown on the Housing Delivery Goals Charts. -5- The maximum purchase price for a new and existing home is $211,375. The maximum purchase price limit will be adjusted as needed in response to The Florida Housing Finance Corporation and changes in the local real estate market. L. Income Limits, Rent Limits and Affordability: The Income and Rent Limits used in the SHIP Program are updated annually 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 of that amount which represents 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 housing. If a household devotes more than 30% of its income, it shall be deemed affordable, if the first institutional mortgage lender and the City of Boynton Beach are both satisfied that the household can afford mortgage payments in excess of the 30% benchmark. The City of Boynton Beach does not have a rental strategy. M. Welfare Transition Program: Should an 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 strategy, we are committed to continuing our partnership of leveraging SHIP funds with the local Housing Authorities "Self- Sufficiency Program" located in Palm Beach County, and the Workforce Development Program of 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. -6- 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 City of Boynton Beach does not have a rental strategy. O. Administrative Budget: A detailed listing including line -item budget of proposed Administrative Expenditures is attached as Exhibit A. These are presented on an annual basis for each State fiscal year submitted. 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 57 -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 of the 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 %) of the SHIP allocation and five percent (5 %) of the program income is insufficient to adequately pay the necessary costs of administering the local housing assistance plan. Ten percent (10 %) of the SHIP allocation plus five percent (5 %) of program income is necessary to cover administrative expenses for the SHIP Program. Administrative expenses in excess of the maximum ten percent (10 %) SHIP allocation will be supplemented by other funding sources. The City of Boynton Beach has adopted the above findings 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 today 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 counseling services, reviewing and evaluating program effectiveness, and submittal of plan amendments and annual reports to the Florida Housing Finance Corporation. -7- 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. The City of Boynton defines Essential Service Personnel as persons in need of affordable housing who are employed in but are not limited to the following 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 building trades personnel. 11. LHAP HOUSING STRATEGIES: NOTE: Include a separate strateev for Disaster Mitization. NOTE. In the event preference is eiven to Essential Service Personnel, plan text must so state pursuant to Chapter 67- 37.0050. F.A.C. NOTE: Stratee_v titles shall be consistent throuehout local eovernment plans. Acceptable strateev titles include but not limited to: Housim Rehabilitation. Imoact Fee Assistance. Purchase Assistance Existine with or without Rehabilitation. Purchase Assistance New Construction, Sweat Eouitv, Replacement Housing. and Disaster Relief. 1. Name of the Strategy: PURCHASE ASSISTANCE Existing 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" financing for first mortgages to insure affordable monthly payments. Eligible costs under this strategy may include but are not limited to down payment and closing costs on the first mortgage and repairs needed to make the unit habitable. Eligible properties 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 needed for safe and sanitary habitation, correction of substantial code violations, or the creation of living space due to overcrowding. b. Fiscal Years Covered: 2012/2013, 2013/2014, and 2014/2015. c. Income Categories to be served: Extremely Low, Very Low, Low, and Moderate - Income Households lE d. Maximum award is noted on the Housing Delivery Goals Charts: Extremely Low /Very Low ...................... ............................... $10,000 Low.......................................................... ............................... $7,000 Moderate................................................ ............................... $5,000 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). 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 mortgage at a zero percent interest deferred payment loan. The deferred payment loan is forgivable at the original term of mortgage, providingthe 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 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 an eligible heir is income eligible underthe SHIP guidelines, and resides in the dwelling. If the heir is not income eligible, the house is sold, transferred, or refinanced, the sum of the loan would be due and payable to the City of Boynton Beach. All loan repayments to the program will be considered as Program Income. Recipients must execute a Promissory Note and Mortgage. The Mortgage will be recorded in the public records of Palm Beach County. 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 is required to obtain mortgage financing from a participating lender, and must complete a homebuyer's education course offered by participating lenders and /or community based development organizations. The applicant must not own any other residence unless it is being replaced with the construction of a new home though the SHIP Program. An applicant may submit a completed SHIP application to the Boynton Beach Faith - Based CDC for determination of eligibility at any time. Applicants are required to provide all documentation requested for income, eligibility, and qualification determination. Applicants must be income eligible with incomes up to 120% of the median income as provided by HUD and distributed by Florida Housing Finance Corporation, and adjusted to family size. Purchasers must be first time homebuyers, to include displaced homeowners due to divorce, purchasing within incorporated MIM Boynton Beach area, and may not currently have assets exceeding $15,000 (gifts included in the asset calculation). 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 /herfunds 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. Applicants who are elderly, disabled, or have household members with autism, mental retardation, Down syndrome, cerebral palsy, or spina bifida will receive priority. 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 and a half percent (3.5096) towards down payment /closing costs, and /or the financial institution's processing fee. The purchase of the first year's premium of homeowner's insurance is in addition to the three and one half percent. 2. Name of the Strategy: HOUSING REHABILITATION Single family, detached housing rehabilitation and /or emergency 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, orthe creation of additional living space to correct overcrowding. This program will address repairs for single family, owner - occupied detached houses within the city limits of Boynton Beach. Applicants can not own another residence. Repairs of an emergency nature, as determined by the City of Boynton Beach's Construction Coordinator, are given priority. Mobile homes and rental units are not eligible for assistance in this strategy. b. Fiscal Years Covered: 2012/2013, 2013/2014, and 2014/2015. 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 emergency repairs. -10- Maximum award is noted on the Housing Delivery Goals Charts: Extremely Low Income Households ...... ............................... $50,000 Very Low and Low Income Households ............................... $50,000 Moderate - income Households ........... ............................... *$20,000 d. 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 forgiven 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 (10) 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 remaining balance of the loan. In case of death of the homeowner, the deferred payment loan would continue as long as the heirs of the deceased reside in the property. If the house is sold, transferred, or refinanced, the balance of the loan would be due and payable to the City of Boynton Beach. All loan repayments to the program will be considered as Program Income. Recipients must execute a Promissory Note and Mortgage. The Mortgage will be recorded in the public records of Palm Beach County. e. 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, eligibility, and qualification determination. Applicants must be income eligible with incomes up to 120% of the median income as provided by HUD and distributed by Florida Housing Finance Corporation, and adjusted to family size. 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 funds 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. Applications are processed on a first -come, first -served basis. Applicants may not own any other residence; and must own and occupy the home being rehabilitated for the duration of the deferred payment loan. All property taxes and mortgage payments must be current. Applicants are required to have property insurance. Applicants who are elderly, disabled, or have household members with autism, mental retardation, Down syndrome, cerebral palsy, or spina bifida will receive priority. f. Sponsor Selection Criteria, if applicable: Include qualification system and selection criteria for applications for Awards to - 11 - eligible sponsors. g. Additional Information: Eligible repairs may include, but are not limited to cost of labor and materials for: L Installation and /or repairs of sanitary water and waste, disposal systems, together with related plumbing and fixtures, which meet local health department requirements ii. Energy conservation measures such as installation of energy efficiency door and windows iii. Repair or replacement of heating and /or cooling systems with high energy efficient 14 SEER or higher iv. Electrical upgrading v. Repair or provision for structural support and foundation vi. Replacement of seriously deteriorated siding, porches, or stoops vii. Alteration of the unit's interior or exterior to provide greater accessibility for any family member that may be physically impaired or have mobility problems viii. Repair or replacement of roofing system ix. Replacement housing to provide GAP financing to the following households of extremely low, very low, and low incomes; with priority given to the elderly (62 +), and /or medically /physically impaired homeowners in these income categories, residing in homes deemed not viable for rehabilitation. Demolition of existing 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 existing home. 3. Name of the Strategy: DISASTER RELIEF a. Summary of the Strategy: In the event of a natural disaster declared by Executive Order, SHIP funds that have not been encumbered will be used to leverage available federal and state funds to provide assistance to income eligible households forthe purpose of repairing eligible housing, providing assistance with insurance deductibles, and obtaining short term temporary housing. Although mobile homes and rental units are not eligible for repair assistance in this strategy, the residents of these units may be eligible for assistance for emergency housing. b. Fiscal Years Covered: 2012/2013, 2013/2014, and 2014/2015. C. Income Categories to be served: Extremely -Low, Very-Low, Low, and Moderate Income Households. -12- d. Maximum award is noted on the Housing Delivery Goals Charts: $10,000. 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 Housing 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, eligibility, and qualification determination. Applicants must be income eligible with incomes up to 120% of the median income as provided by the State and adjusted 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 being rehabilitated. The property must be located within incorporated Boynton Beach. Applicants who are elderly, disabled, or have household members with autism, mental retardation, Down syndrome, cerebral palsy, or spina bifida will receive priority. g. Sponsor Selection Criteria, if applicable: Include qualification system and selection criteria for applications for Awards to eligible sponsors. h. Additional Information: Purchase of emergency supplies for eligible households to weatherproof damaged homes, interim repair to avoid further damage, tree and debris removal required to make individual housing unit habitable, and post disaster assistance with non - insured repairs, as well as assistance with insurance deductibles. 4. Name of the Strategy: FORECLOSURE PREVENTION a. Summary of the Strategy: The foreclosure prevention program provides financial assistance to income eligible homeowners who are facing foreclosure. This program will assist homeowners within the incorporated Boynton Beach area avoid foreclosure. Funds will be provided to pay either up to six (6) months of delinquent mortgage payments (PIT]) or the maximum award amount to assist with bringing the mortgage current. The funds are for owner- -13- occupied units only. b. Fiscal Years Covered: 2012/2013, 2013/2014, and 2014/2015. 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 mortgage at a zero percent interest deferred payment loan as long as the home remains the primary residence of the applicant. The program will provide a deferred payment loan covering the full amount of assistance. The deferred payment loan is forgivable at the term of the original 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 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 an eligible heir is income eligible under the SHIP guidelines, and resides in the dwelling. If the heir is not income eligible, the house is sold, transferred, or refinanced; the sum of the loan would be due and payable to the City of Boynton Beach. All loan repayments to the program will be considered as Program Income. Recipients must execute a Promissory Note and Mortgage. The mortgage 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 eligibility at any time. Applicants are required to provide all documentation requested for income, eligibility, and qualification determination. Applicants must be income eligible with incomes up to 120% of the median income as provided by HUD and distributed by Florida Housing Finance Corporation and adjusted to family size. If the applicant has funds that exceed the $15,000 maximum and is -14- income certified, he /she must commit one third (1/3) of his /her funds 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 homeowner must demonstrate their ability to continue to maintain their mortgage payments after assistance is received. The applicant must prove that the delinquency is due to a significant loss of income such as loss of employment, sudden medical illness or expenses, divorce or separation, death in the family and /or unforeseen /unexpected/ unanticipated 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 incorporated Boynton Beach. Applicants who are elderly, disabled, or have household members with autism, mental retardation, Down syndrome, cerebral palsy, or spina bifida will receive priority. g. Sponsor Selection Criteria, if applicable: Include qualification system and selection criteria for applications for Awards to eligible sponsors. h. Additional Information: Eligible Expenses include delinquent mortgage 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 program is designed to assist homeowners secure and protect their property against 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: 2012/2013, 2013/2014, and 2014/2015. 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: l -'e 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 payment requirements associated with this loan. The deferred loan will be partially forgiven 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 remaining balance of the loan. All loan repayments to the program will be considered as Program Income. Recipients must execute a Promissory Note and Mortgage. The Mortgage 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 eligibility at any time. Applicants are required to provide all documentation requested for income, eligibility, and qualification determination. Applicants must be income eligible with incomes up to 120%ofthe median income as provided by HUD and distributed by Florida Housing Finance Corporation and adjusted to family size. 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 funds 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. Applications are processed on a first -come, first - served basis. Applicants may not own any other residence and must own and occupy the home being assisted. The property must be located in incorporated Boynton Beach. Applicants who are elderly, disabled, or have household members with autism, mental retardation, Down syndrome, cerebral palsy, or spina bifida will receive priority. 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 damage. The funds will be collected at closing from the applicant and placed in an escrow account to be held and disbursed upon completion of installation. -16- III. LHAP INCENTIVE 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. Established policy and procedures: Provide Description: 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. Established policy and procedures: Provide Description The following incentive strategies are extracted from the City of Boynton Beach's Affordable Incentive Plan adopted April 7, 1998. They were reviewed by the City's Affordable Housing Advisory Committee in 2008; per City Resolution R08 -070, the City Commission approved the Committee's recommendation of no changes needed. The Expedited process of permits for Affordable Housing Projects. The Department of Development has been responsible for processing and facilitating affordable housing projects. The Community Improvement and Plan Review staff will oversee the projects certified as "affordable" through the review process in an effort to make sure that they are processed with three to five (3 -5) days. This division will be the developer's point of contact for all questions concerning the review process. The Plan Review Administrator will be responsible for expediting the building permitting process for affordable housing projects. He has designated individuals who have successfully guided and given these projects top priority. Staff will continue to obtain training in affordable housing development. The modification of impact fee requirements including reduction of waiver of fees and other methods of fee payment for affordable housing. There is currently no provision for waiving impact fees. However, the City of Boynton Beach has in the past funded the Infill Construction Program from the general fund. These funds subsidized the cost of new construction for affordable units by paying permit and impact fees for new construction for very low and low- income families building new affordable home within the CDBG target area. Palm Beach County allows existing 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 yield savings for up to two thousand dollars per home. Participating builders of affordable housing will be encouraged to apply for this credit and pass it on to the homebuyer. The City Manager will be petitioned to waive payment of development application, plan check and permit fees for all eligible projects certified affordable housing projects. The allowance of increased density levels for affordable housing. (Comprehensive Plan, Housing Element, Policy 6.1.3) -17- The housing element provides for review of zoning regulations for the purpose of allowing increased density to encourage the provision of affordable housing. The City's Planning and Zoning Department continues its effort to provide for an increase in residential density for the purpose of providing for affordable housing. This density bonus will be subject to compatibility with the surrounding natural and physical environment, site constraints, and concurrency management requirements. The reservation of infrastructure capacity for housing for very-low income and low- income persons. A reservation mechanism is not necessary, as adequate capacity exists to serve any Infill project initiated within the CDBG target area. This assumption regarding 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. Zoning regulations allow accessory buildings in districts as long as they conform to the minimum building site regulations that are generally applicable in the districtwhere 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 parking and setback requirements for affordable housing. Current regulations require off street parking 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 governing this issue. Setback requirements in the targeted 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 causing any adverse effect on affordable housing. 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 configurations for affordable housing. 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 target area of 5,000 square feet, it is felt that this size lot is sufficient enough to accommodate desired development of affordable housing. The modification of street requirements for affordable housing. 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 granted in areas that are generally consistent with the surrounding area. Consideration may be made in instances where costs involved will hinder producing affordable units. CDBG dollars will be expended on many streets within the target 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 the Department of Development will expedite this certification process for affordable housing projects. -18- • The establishment of a process, which the City of Boynton Beach considers, before the adoption of any new legislation that may increase the cost of housing. The Department of Development's various divisions, particularly the Community Improvement Division, 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 Manager will disperse all information concerning ordinances in sufficient time needed to evaluate and comment on any impact it may have on affordable housing. The preparation of printed inventory of locally owned public lands suitable for affordable housing. The Community Improvement Division 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 target 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. W. EXHIBITS: A. Administrative Budget for each fiscal year covered in the Plan. Exhibit "A ". B. Timeline for Encumbrance and Expenditure: Chapter 67- 37.005(6)(d) and 09 F.A.C. A separate timeline for each fiscal year covered in this plan is attached as Exhibit "B" Program funds will be encumbered by June 30 one year following the end of the applicable state fiscal year. Program funds will be fully expended within 24 months of the end of the applicable State fiscal year. C. Housing Delivery Goals Chart (HDGC) For Each Fiscal Year Covered in the Plan: Completed HDGC for each fiscal year is attached as Exhibit "C" D. Certification Page: Signed Certification is attached as Exhibit "D ". E. Adopting Resolution: Original signed, dated, witnessed or attested adopting resolution is attached as Exhibit "E ". F. Program Information Sheet: Completed program information sheet is attached as Exhibit 'T' Im-z ADMINISTRATIVE BUDGET FOR EACH FISCAL YEAR Fiscal Year 2012/2013 Salaries and Benefits $ 52,000.00 Office Supplies and Equipment $ 687.00 Travel Perdiem Workshops, etc $ 1,000.00 Advertising $ 1,000.00 TOTAL $ 54,687.00 Fiscal Year 2013/2014 Salaries and Benefits $ 52,000.00 Office Supplies and Equipment $ 687.00 Travel Perdiem Workshops, etc $ 1,000.00 Advertising $ 1 EXHIBIT "A" TOTAL $ 54,687.00 Fiscal Year 2014/2015 Salaries and Benefits $ 52,000.00 Office Supplies and Equipment $ 687.00 Travel Perdiem Workshops, etc $ 1 Advertising $ 2 TOTAL $ 54,687.00 Based on a distribution of $ 54,687.00 t r 8 k S i i s I e r i E 7i 1 S R Ln { li a a M T 4 8 I ME i f t Eq i s lz !] B g' C) 0 0 o a o �a = dt m a c a o 0 0 a o 0 Q lAL e io `. - ---� -- o y a U lu ' n ~ O N Le C= 1 y� ,aR ` �g I a C . I Rio r N O 0 0 0 0 - q - - Illic d o a �$ �w � 0 0 0 0 00 a h . I &gas Sig o ti I ' i w i � iE —,�j�I _ a z U. N lye Z . I0 Q I N N - O IN I { � I 1 I • z ^1 1 1 , • r al I i 44 — iti I �i a �� i Y N .- N 0 a 0 0 0 0 1 0 0 0 0 0 0 �O �c x LR oocioa 00 cm0 � 40 4* ail � N K ~ I LL IC I� � � N � V i cd K IL dc I � $ i = O 5 �i Q"!I I I � w Z .... 4 i � IL it �I S M o3 3� to Cpl O 0 ! 0 i i i i �I ! I �O O iN � � f i ! I I � aid , 8'0 m Ott _6 a j IL � j m. 1H- Exhibit "'W 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. (2) 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 (or interlocal entity) 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 SHIPfunds 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. Page 2 Certification (13) An interlocai 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. (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 (LIHTC) Program shall comply with the income, affordability and other UHTC 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 X has not been implemented. (note: Maori Dads rowdy wiu check "bail Witness Chief Elected Official or designee Lori LaVerriere. Interim City Manager Witness Type Name and Title Date El Attest: (Seal) Approved As to Form. City Attorney CERTIFIED COPY OF ADOPTING RESOLUTION EXHIBIT "E" EXHIBIT "F" STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM INFORMATION SHEET LOCAL GOVERNMENT: City Of Boynton Beach CHIEF ELECTED OFFICIAL: Woodrow Hay, Mayor ADDRESS: 100 E. Boynton Beach Blvd., Boynton Beach, Florida 33435 SHIP ADMINISTRATOR: Brenda Cornelius, Affordable Housing Administrator ADDRESS: 100 E. Boynton Beach Blvd., Boynton Beach, Florida 33435 TELEPHONE: (561 ) 742 -6066 FAx: (561 ) 742 -6089 EMAIL ADDRESS: comeliu Sb@bbfl.us ADDITIONAL SHIP CONTACT. Octavia S. Sherrod, Community Improvement Manager ADDRESS: 100 E. Boynton Beach Blvd., Boynton Beach, Florida 33435 EMAIL ADDRESS: sherrodo@bbfl.us INTERLOCAL AGREEMENT: NO THE FOLLOWING INFORMATION MUST BE FURNISHED TO THE CORPORATION BEFORE ANY FUNDS CAN BE DISBURSED. LOCAL GOVERNMENT EMPLOYER FEDERAL I.D. NUMBER: 59- 6000-282 MAIL DISBURSEMENT TO: City Of Boynton Beach, Community Improvement Division ADDRESS: 100 E. Boynton Beach Blvd., Boynton Beach, Florida 33435 OR: IF YOUR FUNDS ARE ELECTRONICALLY TRANSFERRED PLEASE COMPLETE THE ATTACHED FORM: ® NO CHANGE FROM PREvIOUs ELECTRONIC FORM SUBMITTED. PLEASE RETURN THIS FORM TO: SHIP PROGRAM MANAGER, FHFC 227 N. BRONOUGH STREET, SUITE 5000 TALLAHASSEE, FL 32301 FAX: [850] 922 -7253 \ \ I A" R., (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 Developers receiving a from both HIP and the Low In « < Ho Tax Credit (UHTC) Program shall comply With the Income, aftrdabirity and other UHTC requirements. Similarly, any units'receiving assistance from other federal programs shall comply with all Federal and SHIP program requirements. R R I M 6<« « : » wv w© <I ; 1111111 «2 ' TMTM�� 17-77124-1 e v The provisions of Chapter 83-220 Laws of Flor » or » as not be » � >: 2 Type Name and"ntle? D t M § I M CERTIFICATION i FLORIDA HOUSING, i i i Name of • • aty of Boynton Beach (1) The local govdmment will advertise the availability of SHIP funds pursuant to Florida Statut] (2) All SHIP funds will be expended in a manner which will Insure that there will be rc. discrimination on the basis of race, creed, religion, color,'age, sex, familial or marital staturl handicap, • • origin. !' • • • .• I M ! M M • ! a • 1 V (4) The eligible municipality or county has developed a qualification system for applications • • • f - • - • • • IUM - 1171 7 11JR4 •. # • 1 plan confbrms t L ocal Government Comprehensive Plan, or # the Local Government Comprehensive Plan will be Initiated at the next available opportunity to insure confiDrmance Housing Assistance (9) Amendments to the approved L=I Housing Assistance Plan shall be provided to t Corporation days after adoption. moneys (10) The trust fund shall be established with a qualified depository for all SHIPfunds as well • from !: on loans.