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• Should downpayment/closing cost amounts available to households be limited on a case by case basis? • Are county credit requirements too strict? • Are maximum housing unit costs too high? • Are income eligibility requirements established correctly? • Are downpayment/closing cost loan requirements adequate? On October 13, 1994, the Affordable Housing Advisory Committee (AHAC) reviewed a staff prepared analysis regarding the above referenced concerns. At that time, AHAC directed staff to coordinate with the SHIP lenders committee (Affordable Housing Partnership Committee) and prepare specific local housing plan revisions to address the above concerns. The SHIP lenders committee (Affordable Housing Partnership Committee) is composed of representatives from financial institutions, non-profit organizations, builders/contractors, real estate agents, and county staff. Because of its members' knowledge of and expertise with the housing industry, the SHIP lenders committee has functioned as an advisory committee to both AHAC and staff. In developing its recommendations, the lenders considered AHAC's objective of ensuring that SHIP funds are provided only to those households having need. The lenders committee findings, recommendations, and proposed local housing assistance plan amendments were provided to AHAC at its February meeting. On February 9, 1995, the Affordable Housing Advisory Committee reviewed the proposed amendments to the Indian River County Local Housing Assistance Plan, made some changes, and recommended that the Board of County Commissioners approve the proposed amendments to the plan. The attached copy of the plan contains all changes recommended by the Affordable Housing Advisory Committee. ANALYSIS For several months, planning staff worked with the SHIP lenders committee to address AHAC's concerns. At their November, December, and January meetings, the SHIP lenders committee discussed the referenced issues and prepared specific recommendations. These recommendations are outlined in Attachment 1 to this staff report. Following is a summary of the proposed amendments to the county Local Housing Assistance plan and justification for the proposed recommendations: c Maximum Housing Cost/Purchase Price The lenders committee believes that the existing purchase prices for new and existing units established by the Local Housing Assistance Plan are too high. It is the committee's position that lower maximum purchase prices will limit SHIP funds to the purchase of more modest homes, thereby providing assistance only to households needing assistance. The lenders committee recommends that the county reduce the maximum purchase price established in the plan BoaFAQ;: 0 FEBRUARY 28, 1995 45