O97-21ORDINANCE NO. O97-,,.~'/
AN ORDINANCE OF THE CITY COMMISSION OF THE
CITY OF BOYNTON BEACH, FLORIDA AMENDING
SECTION 8 OF ORDINANCE NO. O97-11 TO PROVIDE
FOR THE ADOPTION OF A HOUSING INCENTIVE
PLAN AS REQUIRED BY FLORIDA STATUTES;
PROVIDING FOR CONFLICTS, SEVERABILITY AND
AN ~EFFECTIVE DATE.
WHEREAS, the State Housing Initiatives Partnership Act ("Act"), Section
420.907 et seq., Florida Statutes, provides for the establishment of local housing
assistance programs; and
WHEREAS, The City Commission of the City of Boynton Beach, Florida
adopted Ordinance No. 097-11 on May 6, 1997, providing for the establishment of a
local assistance program pursuant to the requirements of the State Housing
Initiatives Partnership Act, and providing for the implementation and administration
of the program, and providing for the establishment of an affordable housing
assistance trust fund; and
WHEREAS, City staff has determined that Section 8 of Ordinance No. 097-
11 should be.amended to provide that the City will adopt a Housing Incentive Plan
within one year, to assure the City's eligibility for funding under this program; and
WHEREAS, the City Commission deems it to be in the best interests of the
citizens and residents of the City to amend Section 8 of Ordinance No. O97-11 to
assure that the City is eligible for state funding under the State Housing Initiatives
Partnership Act for the purpose of establishing a local affordable housing
assistance program;
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF
THE CITY OF BOYNTON BEACH, FLORIDA, THAT:
Section 1. Section 8, Adoption of the Affordable Housing Incentive Plan, of
Ordinance No. O97-11 is hereby amended as follows:
Section 8. ADOPTION OF THE AFFORDABLE HOUSING INCENTIVE PLAN.
....... ; ......~ ....... ;*~ *~ ...... ~ ..... *" ~*~" ~"* The City will within one
(1) year of adoption of Ordinance No. O97-11, adopt a Housing Incentive Plan as
required by Florida Statutes.
Section 2. All ordinances or pa~s of ordinances in conflict herewith are
hereby repealed.
~ection 3. Each and eve~ other provision of Chapter 2 not herein
specifically amended shall remain in full force and effect as previously enacted.
Section 4. Should any section or provision of this Ordinance or any portion
thereof be declared by a court of competent jurisdiction to be invalid, such decision
shall not affect the remainder of this Ordinance.
SectionS. This Ordinance shall become effective immediately upon
passage.
FIRST READING this ,~ day of June, 1997.
SECOND, FINAL READING AND PASSAGE this z'Z' day of June, 1997.
CITY OF BOYNTON BEACH, FLORIDA
ATTEST:
Vice Mayor
/
~-~o~~rComr~i~sio ner ~,,,,,,,,.y~._~
CITY OF BOYNTON BEACH
STATE HOUSING INITIATIVES PARTNERSHIP
(SHIP) PROGRAM
LOCAL HOUSING ASSISTANCE PLAN
For State Fiseai Years
199%98, 1998-99, and 1999-2000
To:
From:
Date:
Subject
COMMUNITY REDEVELOPMENT DEPARTMENT
MEMORANDUM #97-009
Honorable Mayor, Vice Mayor and City Commission
Wilfred Hawkins, Assistant to the City Manager ~
April 15, 1997
Local Housing Assistance Plan
RECC
Staff recommends
Partnership (SHIP) Pro
in order to accept funds
the City's Affordable
supports the City of Boynton
the adoption of an ordinance pursuant to the State Housing Initiatives
ordinance is required by the State of Florida Housing Finance Agency
allocated for our jurisdiction for the continued implementation of
Secondly, staff recommends a motion to adopt a resolution that
Housing Assistance Plan
EXPLANATION:
The William E. Sadowski
signed into law on July 7, 1992. This
housing which will in pan, be
Housing Initiatives Program (SHIP).
97/98, $307,000 FY98/99, $307,000 FY
Act, which is now part of Florida Statutes Chapter 420, was
a dedicated revenue source for affordable
the State to various local governments through the State
Beach anticipates receiving $307,000 in FY
Municipalities, in order to qualify for
which contsins certain specific provisions.
ordinance includes the designation
creation of an Affordable Housing Advisory
advisory board, and the establishment of a Local
of funds, must adopt an affordable housing plan
attached contains these provisions. The
depository for funds received, and the
to provide community input on housing needs as the
Partnership as required by the SHIP program.
PROGRAM IMPA~
: i~se
SHIP funds will play an major p~rt in continuing the C frrts in improving the housing stock the
older, more depressed neighborhood. At this time the curr~nt allocation is $307,068.00, of which staffhas
recommended that the maximum often percent of these fun~s be used for administering this program,
which equ~m m ~30,700.00 annually.
Not to receive the funds and continue to fund the programs from ~e general fund.
\
CERTIFICATE TO FLORIDA HOUSING FINANCE AGENCY
CITY OF BOYNTON BEACH FLORIDA
1) The local government will advertise the availability of SHIP funds
pursuant to Florida Statutes.
2)
3)
4)
5)
O)
8~
9)
10)
ll)
All SHIP funds will be expended in a manner which will insure that there
will be no discrimination on the basis of race, creed, color, age, sex,
familial status, handicap, religion or national origin.
A process for selection of recipients for funds has been developed.
The eligible municipality or county has developed a qualification system
for applications or awards.
Recipients of funds will be required to contractually commit to program
guidelines.
The Florida Homing Finance Agency will be notified promptly if the
Iix:al government (or intefloeal entity) will be unable to. comply with the
provisions of the plan.
The local Housing Assistance Plan shall provide eor the expen tu of
SttlP funds within 24 months following the end of the State fiscal year in
which they are received.
The plan conform.s to the Local Government Comprehensive Plan, or that
an amendment to the Local Government Comprehensive Plan will be
initiated at th~ next available opportunity to insure conformance with the
Local Houa/ng Assistance Plau.
Amendments to the approved Local Housing Assistance Plan shall be
provided to tl~ Agency withi~ 21 days after adoptiom
SHIP fimds as well as moneys generated from activities such as interest
earned on loans.
Amounls on deposit in the local housing assistance trust fund shall be
invested as permitted by law.
Pa~o 2
Certification
12) The local housing assistance trust fund Shall be separately stated as a
. special revenue fund in the local governments audited financial statement,
copies of the audits will be forWarded to the Agency as soon as available.
An interlocal entity shall have its local housing assistance trust fund
separately audited for each state fiscal year, and the audit forWarded to
the Agency as soon as possible.
14)
SHIP funds will not be pledged for debt service on bonds or as rem
subsidies.
15)
Developers receiving assistance from both SHIP and the Low Income
Housing Tax Credit (LIItTC) Program shall comply with the income,
affordability and other LIHTC 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.
Witness
Witness
Chief Elected Official
Mayor Gerald Taylor
city C~erk
City Attorney
ADMINISTRATIVE BUDGET
Salary & Benefits
Advertising
Training
Travel
Office Supplies
Total
$29,000.00
500.00
250.00
250.00
700.00
$30,700.00
11
[-
Begin Taking Applications
Encumber Funds
Expend All Funds
Annual Reports due
Oct.. 1999
Dec. 2000
June 2002
Nov.'99, 2000 2001, 2002
VI. AFFORDABILITY
A. Homeownership
Household Size Very Low-Income Low-Income Moderate-Income
# of Persons 50% of Median 80% of Median 120% of Median
1 $17,100.00 $27,350.00 $41,040.00
2 $19,500.00 $31,250.00 $46,800.00
3 $21,950.00 $35,150.00 $52,680.00
4 $24,400.00 $39,050.00 $58,560.00
5 $26,350.00 $42,150.00 $63,240.00
6 $28,300.00 $45,300.00 $67,920.00
7 $30,250.00 $48,400.00 $72,600.00
8 $32,200.00 $51,550.00 $77,280.00
*Subject to changes made annually by U..S. HUD.
"Affordable means that monthly rents or monthly mortgage payments including
takes and insurance do not exceed 30 percent of that amount which represents the
percentage of the median adjusted gross annual income' for households. It is not
the intent to limit an individual's ability to devote more than 30 percent of his
income for housing, if 30 percent of its income shall be deemed affordable. If the
first morts!~ lander ia satisfied that the household can afford mortgage payments
in exce~a: ofltlz 30 percent benchmark.
The maximum purchase price for a new home is $134,040.00
The maximum purchaae price for an existing home is $107,747.00.
B. Rental - Not Applicable.
VI. ADVERTISEMENT AND OUTREACH
The City of Boynton Beach distributes flyers and brochures to an~
person organization requesting information on the SHIP Program.
Information will be available in the City of Boynton Beach Building
Department, and displayed in the main lobby of City Hall, and the
lobbies of participating lending institutions..
The City of Boymon Beach has been featured in the local newspapers
with several articles concerning the pending implementation of the
program.
Availability of SHIP funds will be advertised at least 30 days prior to
the beginning of an application period. For those strategies Which
allow applications to be submitted on a continuing basis, the
availability of funds will be advertised annually.
ADMINISTRATIVE EXPENSES
The Community Redevelopment Department will be responsible fo
the day to day operations of the SHIP program. Administrative'--
functions include: advertising availability of funds and community
outreach, applicant intake & income certifications, work write ups
and ~pections, coordination with first mortgage lenders and
counseling services, reviewing and evaluating program effectiveness,
and submittal of plan amendments and annual reports to the Florida
Homing Finance Agency.
The maximum of ten percent (10%) of all the monies received as the
local housing distribution of $30%068.00 from fiscal year 1997-98
shall be used to cover salary and ~ttmlnistrative expenses for the
SHIP Program.
Administrative expenses in excess of the maximum ten percent (10%)
SHIP allocation will be supplemented by city general funds. The
total administrative budget is estimated at $30,700.00 for 1997-9~--
$30,700.00 for 1998-99, and $30,700.00 for 1999-2000 fiscal years.
10
'h.
Alterations of the unit's interior or exterior to provide greater
accessibility for any family members that may be handicapped
or have mobility problems.
Additions to any dwelling when it is clearly necessary to
alleviate overcrowding or to remove any health hazards to the
occupants.
Other repairs deemed necessary
Coordinator and Ship Administrator.
RECIPIENT SELECTION-REHABILITATION
by the Construction
Ce
cl.
An applicant may submit a completed SHIP Application to the
City of Boynton Beach for determination of eligibility at any
time. Applicants are required to provide all documentation
requested for income, eligibility, and qualification
determination. Applications are processed on a first come, first
serve basis by income category.
A credit check may be provided by participating lenders for
each applicant and title search of the applicants property may
be conducted depending on the circumstance. Applicants with
excessive liens or back taxes will be denied assistance until
such time liens are satisfied and back taxes are paid..
If it is determined by the City of Boynton Beach SHIP
Administrator that the applicant qualifies for assistance, a home
Inspection and work write-up will be performed by the SHIP
Construction Coordinator. The inspection report will specify
what eligible repairs are necessary for the home.
Funds will be encumbered for eligible applicants whose homes
are determined to be repairable according to Program
Guidelines and Building Construction Standards of the
Standard Housing Code, Chapter 553, Florida Statutes..
All SHIP funds will be expended in a manner that will insure
that there will be no discrimination on the basis of race, creed~.~.~.,~
color, religion, age, sex, familial status, handicap, or nationa
origin.
Persons selected for SHIP assistance will be required to
contractually agree to all SHIP program guidelines, and certify
that the unit assisted will be their only residence.
A housing unit can not be assisted more than once with SHIP
funds. Applicants determined to be ineligible may reapply for
SHIP assistance with The City of Boynton Beach after six (6)
months fi.om the date of the last application.
v. TIME TABLE FOR EXPENDITURE
FY 97-98
Submit Plan for Approval
Advertise funds Availability
Begin taking Applications
Encumber Funds
Expend. All Funds
Submit Annual Reports
Submit Housing Incentive
Plan for Approval
FY 98-99 ..
May 2, 1997
Sept 1997
Oct. 1997
Dec. 1998
June 2000
Nov. '97, 98, 99, 2000
lune '98
Advertise
Begin Taking Applications
P, neumber Funds
Expend all Funds
Annual Reports
FY' 99-2000
Advertise
Sept 1998
Oct. 1998
Dee. 1999
June 2001
Nov'98, '99, 2000, 2001
Sept. 1999
applicant must not own any other residence unless it is being replaced
'with the construction of a new home through the SHIP Program.
Applicants may only receive assistance once under the SHIP
Program.
Be
REHABILITATION DEFERRED LOAN-SFY 9%98, 98-99.99-2000
The City of Boynton Beach passed in 1996 a Community Appearance
Code Ordinance. The result of stepped up code enforcement has
made rehabilitation a cost burden for many very low, Iow and
moderate income residents.
This program is designed to assist very low, low or moderate-income
homeowners with needed repairs as defined by Rule 91-37.001(31),
Florida Administrative Code. Rehabilitation is defined as the repairs
or improvements which are needed for safe, or sanitary' habitation,
correction of substantial code violations, or the creation of additional
living space to correct overcrowding. Deferred Payment Loans are
provided to eligible households for the repair of owner-occupied
units. Repairs of an emergency nature are given priority. Mobile
homes, condominiums, and rental units are not eligible for assistance.
A dollar for dollar match is mandatory for moderate income home
owners who wish to receive rehabilitation repair funds through the
SHIP Program. Ship funds maybe matched with private funds, bank
loans, credit union loans, and Community Development Block Grants
(CDBG) funds. The SHIP Administrator Will waive the match
requirement for very low and low income home owners if it is
determined that the home owner can not afford to provide a match, or
ifa subsidized match is not available.
Applicants will be selected on a first come, first serve baSis. The unit
assisted must be owner occupied and located within the City of
Boynton Beach. Applicants may not own another residence and must
own and occupy the home being rehabilitated for the duration of the
deferred payment loan. All property taxes and/or assessments must
be current, there may not be any judgments or liens against the
property, and any first mortgage must be current. A housing unit may
'only receive assistance once under the SHIP program. Mobile homes~
rentals, and condominiums are not eligible for assistance.
An interest free deferred payment loan will be provided for qualifiec,-
applicants..The deferred loan is forgivable at 10% per year for ten
years. The City will place a mortgage on the unit in the amount of the
assistance provided. In the event the home is sold, transferred, or
refinanced, the pro rated amount remaining on the loan will be due
and payable. In case of death of the home owner, the deferred
payment loan would continue as long as the new owner is income
eligible under SHIP guidelines, and resides in the dwelling. In the
event the new owner is not eligible, then the remaining pro rated sum
would be due and payable.
ELIGIBLE REPAIRS:
Eligible repairs may include, but
materials for:
are not limited to cost of labor an0~-,~
Installation and/or repairs of sanitary water and waste, disposal-'
systems, together with related plumbing, and fixtures, which
will meet local health department requirements.
b. Energy conservation measures such as installation
combination sc~en-storm windows.
Repair or replacement of heating and/or cooling system,
and
d. Electrical wiring.
Repair or provision for structural supports and foundation
Repair or replacement of the roof.
Replacement of seriously deteriorated siding,
stoops.
porches, or-,
6
the overall effectiveness of the housing program to make suggestions
'for improvement as needed.
The City of Boynton Beach currently has a partnership with five local
lenders whereby it has allocated ad valorem tax dollars to leverage
loans from these lenders to provide housing rehabilitation. These
dollars help reduce the risk that may be involved to lenders and helps
add to the equity needed to supply large dollars required to bring
substandard houses up to code. Home buyer training is also available
through local lenders.
The Local Initiatives Support Corporation (LISC) and the
Community Financing Consortium, and Centro Camposino have
formed a partnership to provide home buyer counseling in the form of
a "training institute". This collaborative will provide counseling to
potential home buyers to inform them of their duties and
responsibilities as homeowners and create a form of micro lending for
small industries for potential low income homebuyers with skills that
they can perform at home.
Ad valorem tax dollars are currently used to provide landscape grants,
pay permit fees that cannot be waived, rehabilitation to substandard
units, and acquire land for new construction. SHIP funds will free
up those ad valorem dollars that are currently being used for
rehabilitation, to enable the City to use more ad valorem dollars for
land acquisition. The recent entitlement status CDBG dollars that
will be provided can be used for a broader range of capital
improvements and economic development to further enhance the
housing stock of the City.
A. lhn~ Assistance Loan Program - SFY 97/98, 98/99, and 99-2000
Assist very low, low and moderate home buyers with the purchase of
a home. ~ loan will provide "GAP" financing in the form of a
deferred loan for first mortgage assistance to insure affordable
monthly payments. Homes needing repairs must meet the guidelines
in the definition referenced in Rule 91-37.00(31), F.A. Code and
· Chapter 553,F.S. "Building Construction Standards." Eligible costs.~
under this strategy include down payment and closing costs on first
mortgage and repairs needed to make the unit habitable. Eligible
property include newly constructed homes (built within 12 months oi
closing), or existing homes which may or may not need rehabilitation.
Rehabilitation is defined as the repairs or improvements which are
needed for safe and sanitary habitation, correction of substantial code
violations or the creation of living space because of overcrowding..
The maximum per unit award amount is limited to $20,000. Each
applicant will be responsible for a minimum of $1,500.00 towards
their down payment/closing costs and/or processing of their mortgage
loan.
The program will provide an interest free deferred payment loan
covering the full amount of assistance to qualified, eligible home
buyers. The deferred payment loan is forgivable at 10% per year for
10 years providing the home remains owner occupied and honors
requirements of the deferred payment loan and the secon{
(subsequent) mortgage is placed on the home. If the home is sold
transferred or refinanced prior to the lO year period, the deferrecr-''
payment loan is recaptured at time of closing at a pro-rated sum and
returned to the City of Boynton Beach SHIP Program. In case of
death of the home owner, the deferred payment loan would continue
as long as the new owner is income eligible under the SHIP
guidelines, and resides in the dwelling If the new owner is not
eligible, then the remaining pro-rated sum of the loan would be due
and payable.
RECIPIENT SELECTION - GAP FINANCING
The applicants will be selected on a first come, first serve basis, must
be certified as very low, low or moderate income. The potential~
homebuyer must be credit worthy and have sufficient income..
required to obtain mortgage financing from a participating lender, and
must attend a homebuyer education course offered by participating_,
lenders and community based development' organizations. Th~
City of Boynton Beach
State Housing Initiative Partnership (SHIP) Program
Local Housing Assistance Plan
State Fiscal Years 1997- 1998 -1999
PROGRAM DESCRIPTION
The City of Boynton Beach Local Housing Assistance Plan is
designed to provide increased affordable housing for very Iow-
income, low-income, and moderate income households within the
City. This will be achieved through production, acquisition, and
rehabilitation of affordable housing using funds as provided by the
State Housing Initiatives Partnership Act (SHIP).
The City of Boynton Beach will provide GAP financing in the form
of no interest deferred loans to eligible, qualified households for the
purchase of a new or existing homes which may or may not need
additional rehabilitation repairs. Funds are. also loaned for
rehabilitation repairs of owner-occupied homes. The deferred
payment loan is forgivable 10% a year for 10 years. In the evem the
property is transferred, sold, or refinanced or ceases to be owner
occupied within the ten year period, the pro-rated amount of the loan
will become due and payable. Both strategies will serve very Iow,
low, and moderate income households.
The City of Boynton Beach has targeted the older more dePreSsed
area east of Interstate 95, west of the FEC 'railroad as the area for
redevelopment where SI-tiP funds will be used. However, eligible
applicants may be able to use these funds anywhere within the city
llmita.
Mobile homes, condominiums, and rental properties are not eligible
for assistance.
The Plan covers a three year period covering fiscal years 1997-98,
1998-99, 1999-2000.
ge
The three year Housing Assistance Plan was developed from
information and suggestions received from publicly noticed meeting--~,,
inviting lenders, developers, realtors, and non profit developers o
affordable housing and support services.. The followin~
organizations were major contributors to the strategy: The'.
Community Financing Consortium Inc., The Boynton Beach
Community Development Corp., The TED Center, the Local
Initiatives Support Corp. (LISC), and various local lenders and
developers. The Plan was refined and developed with the input
received on administration, parmerships, funding limits, program
strategies and home owner training.
Support Services: The Local Partnership has a variety of
organizations that provide services to SHIP applicants. The City of
Boynton Beach has added The Boynton Beach Life Care Center, .a
non profit organization which provides a self sufficiency program
which encourages among other things education, training, and home
ownership to its priorities in its CDBG application. The City of
Boynton currently provides rent free housing in a City owned~-~*
building for the local headstart program which accommodates chile
care for low income residents in the target area. The City also
provides the Dick Webber Center for the Prevention of Child Abuse
and it's Targeting Teen Center free accommodations. This non profit
agency provides counseling in the form of referral to agencies to meet
the needs that are necessary for the achievement of self sufficiency
for it's clients.
He.
There is no interlocal agreement applicable.
Local Housinl Partnershios
The City of Boynton Beach currently enjoys a successful Partnership
with local lenders, developers, Community based organizations and
non profits in the pursuit of affordable housing oppommities. Efforts.,"-
to expand this arena have included the invitation to real estate brokers
as well. Staffhas met on several occasions to solicit input from these
organizations to broaden opportunities for decent affordable housing.
The Partnership will continue to meet on a regular basis to evaluate