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M ® M Although the county's original approved plan addressed all state reemirements.-.some_ooncerns were raised last year by the county's Affordable Housing Advisory Committee (AHAC). Specifically, the AHAC _ questioned whether the county's original program was structured to provide assistance" only to recipients needing assistance and then only in the minimum amount necessary. On October 13, 1994, the Affordable Housing Advisory Committee (AHAC) reviewed a staff prepared analysis regarding the above referenced concern. 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, lenders considered AHAC's objective of ensuring that SHIP funds be 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, 1995 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. On February 28, 1995, the Board of County Commissioners approved the revised Local Housing Assistance Plan. The revised plan set several new requirements applicable to SHIP downpayment/closing cost loans. • Concerns As revised and approved, the Local Housing Assistance Plan now requires that SHIP applicants meet several income ratios. These ratios are as follows: • Housing costs, including mortgage, interest, taxes, and insurance, shall not exceed 30% of an applicant's monthly household income. • An applicant's housing cost to income ratio shall not be lower than 28%, unless a lower ratio is needed to ensure that,the total debt to income ratio does not exceed 41%. After applying these new ratios to a number of SHIP applicants, lenders realized that the requirement for an applicant's housing cost to income ratio being a minimum of 28% poses problems and effectively eliminates many eligible applicants from the SHIP program. Consequently, the lenders committee, at their July and August, 1995 meetings, reviewed these new requirements and recommended that the 28% minimum housing cost to income ratio be reduced. In addition, the lenders committee recommended that the new home inspection requirements be clarified. 49 September 19, 1995 BOOK 96 PA(;F 144