SUBJECT/RECOMMENDATION:
Title
Approve the State Housing Initiatives Partnership (SHIP) Program Annual Report and Local Housing Incentive Certification for the closeout year 2022-2023 and interim year 2023-2024 and allow appropriate officials to execute same.
Body
SUMMARY:
The Florida Legislature enacted the William E. Sadowski Affordable Housing Act (Act) in 1992. The Act created a dedicated revenue source for state and local housing trust funds including the State Housing Initiatives Partnership (SHIP) Program.
Through the SHIP Program, the Economic Development and Housing Department has provided funding for the following housing activities: Purchase assistance in the form of down payment and closing costs assistance of existing structures; the construction of new dwellings; the rehabilitation of owner-occupied single-family dwellings; and the rehabilitation of rental properties.
All local governments receiving SHIP funds must submit their annual report to the Florida Housing Finance Corporation by September 15 of each year. The annual report provides details of expended and encumbered funds. The report also provides information on the strategies funded, the number of households served, and demographic data such as income level, age, household size, race, and information on special needs populations which includes individuals experiencing homelessness, persons with disabilities, and the elderly. The report is submitted electronically to the State of Florida.
SHIP is a unique funding program. Qualifying local governments (Grantees) are allocated formula-derived amounts annually from a dedicated funding source derived from document stamps charged on real estate transactions. The State encourages grantees to spend these funds in the form of loans, rather than grants, so future revenue from repayment of loans (Program Income) can be used in addition to annual allocations. Grantees are given three years to expend an annual allocation and Program Income received during the same program year. With each SHIP report, the closeout year must be fully expended.
For closeout year 2022-2023, the City received $1,127,930 from the state annual distribution, $772,574 in program income and related interest, carryover of a negative balance of $6,653.72 from previous year funds for FY 2021-2022 total revenue of $1,855,891. The city expended a total of $1,855,891 to assist twenty-five (25) families utilizing its approved strategies. The city expended $579,525 on purchase assistance, $302,549 on owner-occupied rehabilitation, and $830,442 on construction of four new single-family homes.
SHIP funding has a positive impact on the City’s economy, as evidenced by activities in closeout year 2022-2023, where the City expended $1,855,891 SHIP strategies in SHIP dollars to leverage approximately $1,974,559 in other funds. Additionally, the city spent $151,421 on program administration. The City’s SHIP program will carry a positive balance of $7,959 into FY 2023-24 which will be closed out this time next year.
APPROPRIATION CODE AND AMOUNT:
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USE OF RESERVE FUNDS:
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STRATEGIC PRIORITY:
Objective 2.4 - Supports equitable housing programs that promote household stability and reduces the incidence of homelessness within Clearwater.
