SUBJECT/RECOMMENDATION:
Title
Approve State Housing Initiatives Partnership (SHIP) Program Annual Report and Local Housing Incentive Certification for the closeout year 2021-2022 and interim year 2022-2023 and allow appropriate officials to execute same. (APH)
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 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 an annual allocation and Program Income received during the same program year. With each SHIP report, the closeout year must be fully expended. Negative carryover results from project expenditures spanning more than one year. That is, projects in FY2022-2022 (closeout year) utilized funds from FY2022-2023 and FY2023-2024.
For closeout year 2021-2022, the City received $806,837 from the state annual distribution, $1,045,409.04 in program income and related interest, carryover of a negative balance of $6,972.49 from previous year funds for FY 2021-2022 total revenue of $1,845,273.55. The city expended a total of $1,782,436.32 to assist sixty-eight families utilizing its approved strategies. The city expended $271,770 on purchase assistance, $442,119.32 on owner-occupied rehabilitation, $705,800 on construction of four new single-family homes and $362,747 to rehabilitate seven multi-family units.
SHIP funding has a positive impact on the City’s economy, as evidenced by activities in closeout year 2021-2022, where the City expended $1,782,436.32 on SHIP strategies in SHIP dollars to leverage approximately $2,000,000 in other funds. Additionally, the city spent $107,933.94 on program administration. The City’s SHIP program will carry a negative balance of $45,096.71 into FY 2022-23 which will be closed out 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.
