SUBJECT/RECOMMENDATION:
Title
Approve the State Housing Initiatives Partnership (SHIP) Program Annual Report and Local Housing Incentive Certification for the 2023-2024 closeout year and 2024-2025 interim year and authorize appropriate officials to execute same. (consent)
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 housing; and the construction of a multi-family development.
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 income category, age, family size, race, and other data regarding special needs populations such as homeless persons, 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. 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 their 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 2023-2024, the City received $1,395,428.00 from the state annual distribution, $938,160.23 in program income and related interest, carryover of a balance of $7,959.80 from previous year funds for FY 2023-2024, for a total revenue of $2,341,548.03. The City expended a total of $2,341,870.49 to assist 29 families utilizing its approved strategies. The city expended $652,971.78 on purchase assistance, $280,900.00 on owner-occupied rehabilitation, $9,330.00 on disaster assistance, $43,595.00 on ADA retrofitting, $805,846.00 on construction of four new single-family homes, and provided $305,000.00 for the development of an 81-unit affordable rental property, of which three units were reported as SHIP-assisted units.
SHIP funding has a positive impact on the City’s economy, as evidenced by activities in closeout year 2023-2024, where the City expended $2,162,312.00 on SHIP strategies in SHIP dollars to leverage approximately $2,236,660.00 in other funds. Additionally, the City spent $152,932.00 on program administration. The City’s SHIP program will carry a negative balance of $322.46 into FY 2024-25 which will be closed out at this time next year.
APPROPRIATION CODE AND AMOUNT:
N/A
USE OF RESERVE FUNDS:
N/A
STRATEGIC PRIORITY:
Objective 2.4 - Supports equitable housing programs that promote household stability and reduces the incidence of homelessness within Clearwater.
