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BOOK 113 PAGE 4U' 9 -7 It is requested that the data herein presented be given formal consideration by the Board of County Commissioners at its regular meeting of May 23, 2000. BACKGROUND The county's Local Housing Assistance Program has been in effect since June of 1993. During that time, the county has provided 414 loans to individual applicants who applied for assistance. According to state rules and regulations as well as the county's requirements, SHIP funds may also be used to supplement or match other state and federal funds. In the past, the county has used SHIP funds to match CDBG funds in the Wabasso area. On September 7, 1999, the Board of County Commissioners agreed to set aside $150,000 of SHIP funds each year for the next three fiscal years for eligible clients of an affordable housing developer. These SHIP funds are then to be used by the developer as a match for Home Investment Partnership (HOME) funds. The developer has applied for the HOME program finds and, at this time, his application is being reviewed by the Florida Housing Finance Corporation. As of this time, the SHIP fund set aside for HOME program match described above is the only SHIP set aside commitment that the Board has approved. Recently, the Indian River County Homeless Taskforce asked staff if some of the county's FY 2000-2001 SHIP funds could be set aside to be used as a match for a HUD application to provide transitional housing for previously homeless people who, through a continuum of care process, are getting back on their feet, have found a job and need some housing assistance (downpayment/closing cost, owner rehabilitation, or rental rehabilitation assistance). Through the SHIP program, the county also works closely with the Habitat for Humanity (HFH). HFH constructs owner occupied housing for the county's very low and low income residents. Recently, HFH informed the county that HFH will increase its production. In the next fiscal year (FY 2000-2001), HFH is planning to build 8 units. The county assistance for the HFH homes ranges between $20,000 to $25,000 per unit. HFH is asking the county to set aside approximately $200,000 of FY 2000-2001 SHIP funds for its HFH clients. ANALYSIS Through the housing element of the county's comprehensive plan and the local housing assistance plan, the county tries to assist the county's very low, low, and moderate income households to have decent affordable housing. One of the goals of the county's local housing assistance plan is to increase home ownership for very low and low income households. In many cases, an eligible household can afford a mortgage payment, but cannot save a sufficient amount of money for a down payment and closing costs. With a combination of HFH funds and SHIP program funds, eligible households may have the opportunity to acquire a housing unit which is affordable. Besides its homeownership programs, the Local Housing Assistance Program provides SHIP funds as loans for rehabilitation of either owner -occupied or renter occupied housing. Households who occupy these rehabilitation units must be either very low or low income. While implementing the county's local housing assistance plan, the county must ensure that all state requirements and local requirements are met. One state requirement is that all funds for a state fiscal year must be encumbered within 12 months after the and of the fiscal year and must be expended within 24 months after the end of the fiscal year. Other state requirements are; MAY 239 2000 -38- 0 0