SUBJECT/RECOMMENDATION:
Title
Approve Technical Revisions to the City of Clearwater Local Housing Assistance Plan (LHAP) for FY2021-2022 through 2023-2024 and authorize staff to submit for review and approval to Florida Housing Finance Corporation. (consent)
Body
SUMMARY:
In an effort to align more closely or fully with other jurisdictions in Pinellas County, certain Technical Revisions in the LHAP are proposed including changes to the terms and conditions of existing strategies. These changes are summarized as follows:
Section II - Housing Strategies
1. Subsections A, B, and C (New Construction, Acquisition of Existing Home with Rehabilitation, Purchase Assistance for Existing Homes Without Rehabilitation)
a. Established new loan terms for Very Low-Income homebuyers, providing for 100% deferral.
b. Reduced homebuyer contribution to $1,000, providing examples of such contributions.
2. Subsections B and C (Acquisition of Existing Home with Rehabilitation and Purchase Assistance for Existing Homes Without Rehabilitation)
a. Added language and clarifications to include in the maximum award amount up to $2,000 for project delivery costs.
3. Subsection D (Owner-Occupied Rehabilitation)
a. Increased maximum award amount to $65,000 ($60,000 loan plus up to $5,000 in project delivery costs).
b. Revised and added provisions for repayment and deferred loans based on income and housing debt ratios.
c. Revised and added provisions for loan forgiveness.
4. Subsection E (Multi-family Housing):
a. Increased maximum loan amount per unit to $60,000.
No changes were made in Section I - Program Details, Section III - Incentive Strategies, or Exhibits.
Upon approval, staff will submit to Florida Housing Finance Corporation (FHFC) for review. Upon completion of review and approval by FHFC, Technical Revisions will be incorporated into final document and resubmitted for posting on FHFC’s website. Final version will also be posted to City’s website.
Background:
Florida law requires counties and cities receiving State Housing Initiatives Partnership (SHIP) Program funds to develop a Local Housing Assistance Plan (LHAP) of up to 3 years in length outlining strategies for how the funds will be utilized. On April 15, 2021, City Council approved the FY22-24 LHAP and adopted Resolution 21-04 in accordance with the Florida law.
APPROPRIATION CODE AND AMOUNT:
Funds are available through allocations received by State Housing Initiatives Partnerships (SHIP) Program and Home Investment Partnership (HOME) Program. No general fund appropriation.
USE OF RESERVE FUNDS: N/A