SUBJECT/RECOMMENDATION:
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Approve the First Amendment to the City of Clearwater’s State Housing Initiatives Partnership (SHIP) Program Local Housing Assistance Plan covering Fiscal Years 2016-2018 and adopt Resolution 17-31.
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SUMMARY:
Florida statute 420.9079 requires counties and cities receiving State Housing Initiatives Partnership (SHIP) Program funds to develop a 3-year Local Housing Assistance Plan (LHAP) outlining strategies for how the funds will be utilized.
The LHAP covers state fiscal years 2016-2018. The LHAP outlines six strategies identified to carry out affordable housing activities through SHIP funding administered by the City of Clearwater: 1) New Construction; 2) Acquisition of Existing Homes with Rehabilitation; 3) Down Payment and Closing Costs Assistance for Existing Homes without Rehabilitation; 4) Owner-Occupied Rehabilitation; 5) Multi-Family Housing; and 6) Disaster Mitigation.
The First Amendment to the current LHAP (Amendment) will amend the following Section II LHAP Strategies:
A. New Construction
B. Acquisition of Existing Homes with Rehabilitation
C. Down Payment and Closing Costs Assistance for Existing Homes without Rehabilitation
Within each of the LHAP Strategies above, the following subsections are amended as described:
a. Terms of the Award: Establishes the maximum assistance of $22,000 and the maximum loan amount of $20,000 and provides loan repayment deferral for five years and amortization for twenty years for a loan term not to exceed twenty-five years.
b. Summary of the Strategy: Removal of the buyer’s minimum two percent contribution of purchase price.
Exhibit C: Housing Delivery Goals Chart is also amended to increase the maximum SHIP funding award from Eighteen Thousand dollars ($18,000) to Twenty-Two Thousand dollars ($22,000).
These modifications are intended to increase the number of loans provided to qualified individuals by mirroring certain terms and conditions of Pinellas County’s Down Payment & Closing Cost Assistance program. The County’s terms and conditions include a maximum SHIP award of $20,000 and no owner’s contribution. During Fiscal Year 2017, the City closed five DPA loans compared to more than twenty loans closed by the County’s DPA program.
The Owner Occupied Rehabilitation Strategy was also amended to require that households, having received assistance from the city within the previous ten years, shall not be eligible for assistance unless a hardship exists.
Lastly, the Disaster Mitigation Strategy was amended to increase the maximum award to a household from $5,000 to $10,000. This will give staff added flexibility to assist qualifying households following a disaster situation such as a hurricane. This increase is reflected in Exhibit C to the LHAP.
All other terms and conditions will remain the same as previously adopted. Per Florida Statute, the Amendment requires approval by City Council.
APPROPRIATION CODE AND AMOUNT:
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USE OF RESERVE FUNDS:
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