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Although the SHIP program meets part of the county's affordable housing need through providing <br />for homeownership and rehabilitation of owner -occupied homes. there are many low and very low <br />income households needing housing assistance that are not good candidates for homeownership. <br />These include households that have difficulty doing home maintenance, households that are more <br />transient. and others For those types of households, affordable rental units are the preferred type <br />of housing assistance. <br />Generally, most affordable rental units are constructed by private developers using state and federal <br />housing assistance. Often times. such projects are built with a variety of funding sources. Two of <br />the programs most often used are the low income tax credit program and the state bond program. <br />Both of the above referenced programs are competitive whereby projects proposed throughout the <br />state compete for limited funding. In recent years, the competition for funds has become more <br />difficult. One factor that is imponant in the competitive scoring of applications is local contribution. <br />Currently, Indian River County does not provide a local contribution for such projects. Until the <br />county does provide a local contribution. the county probably will not get any additional projects of <br />that type. <br />There are several potential sources for a county contribution to affordable housing projects. One is <br />the financing of impact fees. Another is the use of SHIP funds as a contribution for affordable. <br />housing rental projects. <br />Currently, the county's SHIP program is structured such that the county cannot use SHIP funds to <br />provide a contribution to affordable rental projects. The change that, the county's local housing <br />assistance plan would need to be revised. and state approval of those revisions would be required. <br />Even if the county's SHIP program were to modified to allow contributions to affordable rental <br />projects. the maximum contribution would be limited to 25 percent of the county's SHIP annual <br />allocation That is because the state requires that at least 65% of SHIP funds be used for <br />homeownership and because the county uses 10 percent of SHIP funds for administrative costs. <br />Also. any SHIP funds used for a contribution to affordable rental projects would reduce the amount <br />of SHIP funds for ownership applicants. Currently, the county sets aside SHIP funds for Habitat for <br />Humanity and a HOME program developer. and has insufficient funds to accommodate other SHIP <br />program demand. <br />RECOMMENDATION <br />Staff recommends that the Board of County Commissioners review all information provided at the <br />meeting and provide direction to staff. <br />Attachments <br />1. Subsidized Housing Location Map <br />2. A copy of the report regarding Section 8 need and waiting List. <br />3. A copy of the cover page and executive summary of the HUD report titled "Rental Housing <br />Assistance - The Crisis Continues" <br />u\v\s\affhoum.agn <br />February 13, 2001 <br />B;{ 117 PG 120 <br />108 <br />SAr sir Gs <br />Arvin <br />Bua oat <br />f Goyt <br />A'sot My, <br />_AM.'Sa D2 ie <br />�s, 1l'j" ' <br />