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BOOK 100 Inuk,-3. 2 Now that the county is getting more funding for the program, it is proposed to provide SHIP assistance to all eligible moderate income households as allowed by state requirements. o Provide rehabilitation loans to moderate income households. Currently, the county provides rehabilitation assistance to very low and low income households only. State requirements, however, allow assistance to moderate income households too. There is a limited amount of SHIP funds available (15% of funds) for purchase of existing homes with no rehabilitation. Consequently, funds for purchase of existing homes without rehabilitation are set aside for very low income persons only. For eligible income households, one way to purchase an existing home is to use a combination downpayment/closing cost and rehabilitation loan. The proposed revision provides this opportunity to moderate income households; this opportunity has always been available to very low and low income households. Also, the proposed revision allows moderate income households owning their homes to obtain SHIP rehabilitation loans. o Increase the maximum amount of downpayment/closing cost assistance to moderate income households from $5,000.00 to $7,500.00. Per local financial institutions working with the SHIP program, the $5,000.00 limit for downpayment /closing costs should be increased for moderate income households to provide sufficient funds to cover downpayment/closing costs for a loan with 95% loan to value ratio. The proposed revision will increase the maximum downpayment/closing costs to $7,500.00 for moderate income households. O Allow energy gauge rating and associated expenses such as insulation as eligible rehabilitation expenses. This would help to reduce the monthly expenses for very low and low income households. Some of the advantages of energy gauge rating are more home for less money (lower monthly costs), enhanced indoor comfort, better energy efficiency, more environmental sustainability, and greater resale value. o Enact several minor clean-up changes to the existing plan. There are several other minor revisions to reflect new income levels, new purchase price, and other clean-up changes. A copy of the revised Indian River County Local Housing Assistance Plan is attached to this staff report. The proposed plan revisions meet all state and local requirements. As revised, the Local Housing Assistance Plan will still provide the basic framework and operating procedures for the SHIP program. This includes SHIP program strategy qualification requirements and other provisions . As proposed, the revised plan will provide a broader range of assistance to moderate income households in the county. By revising the plan, the County can enhance maintenance of the existing affordable housing stock, spend SHIP funds in timely manner, and ensure that state requirements are met. ALTERNATIVES With respect to the proposed revisions to the Local Housing Assistance Plan, the Board of County Commissioners has three alternatives. These are: ► adopt the revised plan ► adopt the revised plan with changes ► reject the revised plan Staff supports either of the first two alternatives. MAY 25,1999 18