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For those SHIP funds that are set aside, the requirements are the same as those applicable to non. setaside SHIP funds. Consequently, set aside SHIP funds must be used by the end of the assigned Fiscal Year, or those funds will be returned to the SHIP trust fund to be used by general SHIP applicants. As with non-setaside SHIP funds, all setaside funds must be processed according to SHIP program rules. For each SHIP loan associated with seaside funds, an application must be filed. the Loan Review Committee must approve the loan, a promissory note and mortgage document must be prepared, and a closing must be held. Setting aside SHIP funds for clients of developers and non-profit organizations provides certain advantages, but has some drawbacks. While setaside funds may leverage money from other programs, the result is that there is less funding available for general SHIP applicants. Since there is significant demand for SHIP assistance and since every year there are many applicants who cannot be assisted due to the lack of funding, setting aside SHIP funds for various groups adversely affects those county residents who do not have any advocacy group. In FY 2000-2001, for example, there are approximately 50 SHIP applications that will not even be reviewed, and there are more than 100 applicants who will not be funded. Despite the fact that setasides reduce the funds available for general applicants, there are advantages to reserving funds for Habitat For Humanity. One advantage is that HFH has participated in the SHIP program for a number of years and performed well. Other advantages are that HFH assists many very low income households, requires that applicants invest sweat equity, provides homeownership counseling to applicants, and meets all program requirements. For those reasons, staff supports HFH's request for a $300,000 SHIP setaside for FY 2001/2002. ALTERNATIVES The Board of County Conunissioners has two alternatives regarding the proposed SHIP fund set aside for HFH These alternatives are: 1. Not to set aside any of the SHIP funds for HFH ?. To set aside SHIP funds for HFH applicants Staff supports alternative number 2, and recommends an FY 2001/2002 funds setaside of $300.000 for Habitat For Humanity to be used for down payment/ closing cost, impact fee, and land acquisition loan assistance of approximately $25.000 of SHIP funds per unit for HFH's clients. RECOMMENDATION Based on the analysis performed. staff recommends that the Board of County Commissioners set aside $300.000 of FY 2001/2002 SHIP funds for FY 2001-02 for Habitat For Humanity to be used for downpayment/closing cost, impact fee, and land acquisition loan assistance of approximately 525.000 of SHIP funds per unit for HFH's clients. Attachment: • A copy of the letter dated February 15. 2001 from Indian River Habitat for Humanity April 3, 2001 76 DK