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HomeMy WebLinkAbout1993-13ORDINANCE NO. 93-13 AN ORDINANCE OF THE INDIAN RIVER COUNTY BOARD OF COUNTY COMMISSIONERS PURSUANT TO THE STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM, PROVIDING FOR DEFINITIONS; PROVIDING FOR THE CREATION OF A LOCAL HOUSING ASSISTANCE TRUST FUND; PROVIDING FOR THE ESTABLISHMENT OF A LOCAL HOUSING ASSISTANCE PROGRAM; DESIGNATING RESPONSIBILITY FOR THE IMPLEMENTATION AND ADMINISTRATION OF THE LOCAL HOUSING ASSISTANCE PROGRAM; PROVIDING FOR THE CREATION OF AN AFFORDABLE HOUSING ADVISORY COMMITTEE; PROVIDING FOR TERMS OF SAID COMMITTEE; PROVIDING FOR DUTIES AND RESPONSIBILITIES OF SAID COMMITTEE; PROVIDING FOR GUIDELINES TO BE UTILIZED BY SAID COMMITTEE IN ADOPTION OF RECOMMENDATIONS FOR THE AFFORDABLE HOUSING INCENTIVE PLAN, PROVIDING FOR ADOPTION OF THE AFFORDABLE HOUSING INCENTIVE PLAN; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED by the Board of County Commissioners of Indian River Countys SECTION I. PURPOSE AND INTENT A. The purpose of this Ordinance is to comply with the requirements of the State Housing Initiatives Partnership (SHIP) Program and Rule 9I-37.004 Florida Administrative Code (FAC). As such, this ordinance provides for: (1) Creation of the Indian River County Local Housing Assistance Trust Fund in accordance with Rule 9I- 37.008 FAC; (2) Establishment of the Indian River County Local Housing Assistance Program in accordance with Rule 9I-37.007 FAC; (3) Designation of the responsibility for the implementation and administration of the Indian River County Local Housing Assistance Program; and (4) Creation of the Indian River County Affordable Housing Advisory Committee in accordance with Rule 9I-37.009 FAC. SECTION II. DEFINITIONS A. The definitions provided in Rule 91-37.002, Florida Administrative Code (State Housing Initiatives Partnership Program Rules), and in the Indian River County Local Housing Assistance Plan shall apply to the terms used in this Ordinance. SECTION III. CREATION OF THE INDIAN RIVER COUNTY LOCAL HOUSING ASSISTANCE TRUST FUND A. The Indian River County Local Housing Assistance Trust Fund (IRCLHATF) is hereby created and established. The Indian River County Local Housing Assistance Trust Fund shall be a separate fund account maintained by the Indian River County Board of County Commissioners. Be All monies received from the state as the County's share of the Local Housing Distribution under the State Housing Initiative Partnership Act (SHIP Program) and other funds received or budgeted to provide funding for the Indian River County Local Housing Assistance Program shall be deposited into the Indian River County Local Housing Assistance Trust Fund. Administration of the Indian River County Local Housing Assistance Trust Fund shall be consistent with Rule 91-37.007, Florida Administrative Code. All funds deposited into the Indian River County Local Housing Assistance Trust Fund will be subject to the requirements of the Indian River County Local Housing Assistance Program and Plan as identified by this Ordinance, and the provisions of Rule 9I-37.007, Florida Administrative Code. C. Expenditures other than for the administration and implementation of the Indian River County Local Housing Assistance Program shall not be made from the Indian River County Local Housing Assistance Trust Fund. Administration expenditures may include, but not be limited to: salaries for persons responsible for the preparation, reporting, and administration for the Indian River County Local Housing Assistance Program; office expenses of persons responsible for conducting the Indian River County Local Housing Assistance Program, production of application and public information materials utilized in conducting the Indian River County Local Housing Assistance Program, travel expenses related to Local Housing Assistance Program activities, and the preparation of studies and collection of data relating to affordable housing needs and demands in the County. D. Amounts on deposit in the Indian River County Local Housing Assistance Trust Fund may be invested as permitted by Federal, State and Local law. All investment earnings shall be retained in the Indian River County Local Housing Assistance Trust Fund and used for the purposes thereof. E. Until utilized for the purposes thereof, monies in the Indian River County Local Housing Assistance Trust Fund shall be held in trust by the county solely for use pursuant to the Indian River County Local Housing Assistance Program. F. The Indian River County Local Housing Assistance Trust Fund shall be separately stated as a special revenue fund in the county's audited financial statements. Copies of such audited financial statements shall be forwarded to the Florida Housing Finance Agency as soon as available. SECTION IV. ESTABLISHMENT OF THE INDIAN RIVER COUNTY LOCAL HOUSING ASSISTANCE PROGRAM A. The Indian River County Local Housing Assistance Program 0 is hereby created and established. Be The intent of the Indian River County Local Housing Assistance Program is to increase the availability of affordable housing units to Eligible Persons by combining local resources and cost-saving measures into an Indian River County Local Housing Partnership and using private and public funds to reduce the cost of housing. C. The Indian River County Local Housing Assistance Program shall use the funds held in the Indian River County Local Housing Assistance Trust Fund to implement the Indian River County Local Housing Assistance Plan. D. The distribution and expenditure of funds from the Indian River County Local Housing Trust Fund for implementing and conducting the Indian River County Local Housing Assistance Program shall comply with the following distribution requirements: (1) A minimum of sixty-five (65) percent of the funds shall be reserved for Local Housing Assistance Program activities which result in homeownership for eligible persons; (2) A minimum of seventy-five (75) percent of the funds shall be reserved for construction, rehabilitation, or emergency repair of housing which will be utilized by eligible persons, and (3) A maximum of five (5) percent of the funds may be expended to provide for the costs of administration and implementation of the Indian River County Local Housing Assistance Program. The Indian River County Board of County Commissioners may make a finding by separate resolution that expenditures to administer and implement the Indian River County Local Housing Assistance Program may exceed five (5) percent; however, at no time shall the funds expended for administration and implementation of the Indian River County Local Housing Assistance Program exceed ten (10) percent. (4) The percentages identified in items 1, 2 and 3 above shall be based upon the existing annual balance of funds in the Indian River County Local Housing Trust Fund on the first day of the fiscal year combined with the expected annual allocation from the State SHIP Program for the commencing fiscal year. The monetary amounts determined by the percentage allocations shall be revised on a quarterly basis during the fiscal year to reflect variations in the funds received from the State as a part of the County's Local Housing Distribution and additional contributions to the Indian River County Local Housing Trust Fund from other sources. following distribution requirements. (1) All housing units provided or assisted by the Indian River County Local Housing Assistance Program must be occupied by Eligible Persons, River E. The housing units provided or assisted by the Indian County Local Housing Assistance Program shall comply with the following distribution requirements. (1) All housing units provided or assisted by the Indian River County Local Housing Assistance Program must be occupied by Eligible Persons, (2) A minimum of thirty (30) percent of the housing units provided or assisted by the Indian River County Local Housing Assistance Program must be occupied by Very Low- Income Persons; and (3) A minimum of thirty (30) percent of the housing units provided or assisted by the Indian River County Local Housing Assistance Program must be occupied by Low-Income Persons. F. All housing units provided or assisted by the Indian River County Local Housing Assistance Program shall comply with the following criteria: (1) The sales price of new or existing eligible housing units shall not exceed ninety (90) percent of the median area purchase price for the area where the eligible housing is located. The ninety (90) percent limit price shall be established by the United States Department of Treasury in accordance with Section 3(b) 2 of the United State Housing Act of 1937; (2) The amount of monthly mortgage payments or the amount of monthly rents charged in order to occupy or purchase the housing unit must be affordable to eligible persons occupying the housing unit; (3) Loans for housing units from the Indian River County Local Housing Assistance Trust Fund shall be provided for periods not exceeding thirty (30) years; however, deferred payment soft-second loans or loans that extend beyond thirty (30) years may be provided with the condition that each housing unit financed in either manner must be occupied by eligible persons for the same period of time as the extended loan period. (4) Owner-occupied housing constructed, rehabilitated, or otherwise assisted from proceeds provided from the Indian River County Local Housing Assistance Program shall be subject to subsidy recapture provisions which are identical to those specified in Section 143(m) of the Internal Revenue Code of 1986. The funds obtained through these recapture provisions shall be redeposited into the Indian River County Local Housing Assistance Trust Fund for redistribution by the Indian River County Local Housing Assistance Program. (5) Rental housing constructed, rehabilitated, or otherwise assisted from proceeds provided from the Indian River County Local Housing Assistance 'Program shall be reserved for Eligible Persons for the greater of fifteen (15) years or the term of the assistance. Eligible sponsors who offer eligible rental housing for sale before fifteen (15) years or that have remaining mortgages funded under the Indian River County Local Housing Assistance Program must give a first right of refusal to eligible nonprofit organizations for purchase at the current market value for continued occupancy of the housing units by eligible persons. G. The activities and strategies to be undertaken by the Indian River County Local Housing Assistance Program in providing and encouraging affordable housing shall include, but not be limited to, the following. 1. Impact fee assistance: Eligible persons or sponsors may be awarded loans or grants for the payment of impact fees for eligible housing for eligible persons. 2. Purchase assistance: Ownership opportunities may be created for eligible persons through mortgage interest reductions, and/or low or no interest loans for down payments and closing costs. 3. Predevelopment: Community-based organizations may be awarded loans for site acquisition for the development of eligible housing. 4. Rehabilitation: Eligible persons who own substandard housing units may be awarded loans to renovate such units for use as eligible housing. 5. Land Bank: Indian River County may, through purchase, auction or donation, acquire land independent of a specific project for the expressed purpose of providing eligible housing at a future time. H. The Indian River County Board of County Commissioners may elect to provide additional funding to supplement and/or augment funds provided from the Indian River County Local Housing Assistance Trust Fund for administration and implementation of the Indian River County Local Housing Assistance Program. I. The Indian River County Local Housing Assistance Program shall include a program activity to annually monitor and determine tenant eligibility and amount of subsidy pursuant to the provisions of this Ordinance and the Indian River County Local Housing Assistance Plan. J. The county shall comply with all rules and regulations of the Florida Housing Finance Agency and the SHIP Program to provide the required annual reporting on the status of the Indian River County Local Housing Assistance Program and its compliance with the State SHIP Program requirements and the Indian River County Local Housing Assistance Plan. River County Local Housing Assistance Program and other State or Federal Programs shall comply with the requirements of the Indian River County Local Housing Assistance Program and the State SHIP Program, as well as the requirements of the other State and/or Federal Programs. Where eligible persons or sponsors receive assistance from multiple programs and those programs have different regulations, recipients shall comply with the program having the most restrictive requirements; however, at no time may persons�or sponsors receiving assistance violate the requirements of any of the other applicable programs, including the Indian River County Local Housing Assistance Program and the State SHIP Program. L. The Indian River County Local Housing Assistance Program shall include all other lawful objectives not previously listed, if from both the Indian K. Housing units receiving assistance River County Local Housing Assistance Program and other State or Federal Programs shall comply with the requirements of the Indian River County Local Housing Assistance Program and the State SHIP Program, as well as the requirements of the other State and/or Federal Programs. Where eligible persons or sponsors receive assistance from multiple programs and those programs have different regulations, recipients shall comply with the program having the most restrictive requirements; however, at no time may persons�or sponsors receiving assistance violate the requirements of any of the other applicable programs, including the Indian River County Local Housing Assistance Program and the State SHIP Program. L. The Indian River County Local Housing Assistance Program shall include all other lawful objectives not previously listed, if said objectives have been adopted as part of the Indian River County Local Housing Assistance Plan in the manner provided for by Sections 420.907-420.9079, Florida Statutes and Rule 91-37, Florida Administrative Code, SECTION V. DESIGNATION OF RESPONSIBILITY FOR ADMINISTRATION AND IMPLEMENTATION OF THE INDIAN RIVER COUNTY LOCAL HOUSING ASSISTANCE PROGRAM A. The Indian River County Community Development Department is hereby designated the agency responsible for the implementation and administration of the Indian River County Local Housing Assistance Program. In its capacity as the responsible agency, the Community Development Department, with concurring approval from the Board of County Commissioners, may contract with various profit or non-profit agencies for various administrative activities. Be The Community Development Department shall monitor the success of the Indian River County Local Housing Assistance Program, and provide advice and suggestions as to whether and in what ways the Indian River County Local Housing Assistance Program might be improved from year to year. C. The total amount paid from the Indian River County Local Housing Assistance Trust Fund for any administrative expenses in connection with the Indian River County Local Housing Assistance Program shall not exceed five (5) percent of the funds of the Indian River County Local Housing Assistance Trust Fund, unless otherwise approved by resolution of the Indian River County Board of County Commissioners. Should the Indian River County Board of County Commissioners approve such a resolution, the total amount paid from the Indian River County Local Housing Assistance Trust Fund for any administrative expenses shall not exceed ten (10) percent of the funds of the Indian River County Local Housing Assistance Trust Fund as noted in Section IV.D.(3) of this Ordinance. D. The County shall not treat as administrative expenses any costs previously borne by another funding source which could continue to be available at the time the Indian River County Local Housing Assistance Plan is submitted for review and approval by the State of Florida. SECTION VI. CREATION OF THE INDIAN RIVER COUNTY AFFORDABLE HOUSING ADVISORY COMMITTEE A. The Indian River County Affordable Housing Advisory Committee is hereby created and established. The members of the Advisory Committee shall be appointed by resolution of the Board of County Commissioners. Be The resolution appointing the Indian River County Affordable Housing Advisory Committee shall define affordable housing as applicable to the county in a way that is consistent with the adopted local comprehensive plan. C. The Affordable Housing Advisory Committee shall consist of sixteen (16) members. Nine (9) members shall be voting members, and five (5) of these voting members shall constitute a quorum. The committee may not take formal actions unless a quorum is present, but may meet to hear presentations and undertake other informal activities if duly noticed. The Indian River County Board of County Commissioners shall appoint the voting members of the Affordable Housing Advisory Committee in conformance with the following representational criteria. (a) One (1) citizen who. is actively engaged in the (b) One (1) citizen who is actively engaged in the banking or mortgage industry. (c) One (1) citizen who is a representative of those residential building industry. (b) One (1) citizen who is actively engaged in the banking or mortgage industry. (c) One (1) citizen who is a representative of those for low-income persons. (e) One (1) citizen who is a provider of affordable housing. (f) One (1) citizen who is a real estate professional. (g) One (1) citizen who is a representative of persons with special housing needs such as, but not limited areas of labor engaged in home building. (d) One (1) citizen who is designated as an advocate for low-income persons. (e) One (1) citizen who is a provider of affordable housing. (f) One (1) citizen who is a real estate professional. (g) One (1) citizen who is a representative of persons with special housing needs such as, but not limited to, the elderly, or the mentally and/or physically challenged. (h) One (1) citizen who is a representative of Indian River County Census Tract Number 503.02. (i) One (1) member of the Indian River County Board of County Commissioners who shall serve as the Committee Chairperson charged with the duty of conducting meetings in a -manner consistent with The Indian River County Board of County Commissioners shall appoint the non-voting members of the Affordable Housing Advisory Committee in conformance with the following representational criteria. (a) One (1) member who is a representative of the City of Vero Beach, appointed by the City of Vero Beach. (b) One (1) member who is a representative of the Town of Fellsmere, appointed by the Town of Fellsmere. (c) One (1) member who is a representative of the City of Sebastian, appointed by the City of Sebastian. (d) One (1) member who is a representative of the Town of Indian River Shores, appointed by the Town of Indian River Shores. (e) One (1) member who is a representative of the Town of Orchid, appointed by the Town of Orchid. (f) Two (2) members who are actively engaged in the banking or mortgage industry. D. The following terms of membership shall apply to members of the Committee: (1) Voting members shall serve for two-year terms and may be reappointed for subsequent terms. (2) Non-voting members shall serve for one-year terms and may be reappointed for subsequent terms. E. Meetings shall be held monthly for the first year of committee existence and quarterly, or more frequently, thereafter. F. The Indian River County Affordable Housing Advisory Committee shall comply with the Government in the Sunshine Law, the public records law, and the special provisions regarding notice of Affordable Housing Incentive Plan considerations found in Chapter 420.9076, Florida Statutes. Minutes of all meetings shall be kept by the Clerk of the Board of County Commissioners. G. The Indian River County Affordable Housing Advisory Committee shall annually elect a Vice -Chairperson, and such other offices as it deems necessary. In the absence of the Chairperson, the Vice -Chairperson is charged with the duty of conducting meetings in a manner consistent with law. H. Staff, administrative and facility support for the Indian River County Affordable Housing Advisory Committee shall be provided by the Board of County Commissioners. I. The Indian River County Affordable Housing Advisory Committee shall review the established policies and procedures, ordinances, land development regulations, and adopted local comprehensive plan of the county and shall recommend specific initiatives to encourage or facilitate affordable housing while protecting the ability of property to appreciate in value. J. Recommendations may include the modification or repeal of existing policies, procedures, ordinances, regulations, or plan provisions. At a minimum, the Indian River County Affordable Housing Advisory Committee shall make recommendations on affordable housing incentives in the following areas. (1) The affordable housing definition in the appointing resolution. (2) The expedited processing of permits for affordable housing projects. (3) The modification of impact fee requirements, including reduction or waiver of fees and alternative methods of fee payment. (4) The allowance of increased density levels. (5) The reservation of infrastructure capacity for housing for very low-income persons and low-income persons. (6) The transfer of development rights as a financing mechanism for housing for very low-income persons and low-income persons. (7) The reduction of parking and setback requirements. (8) The allowance of zero -lot -line configurations. (9) The modifications of sidewalk and street requirements. (10) The establishment of a process by which the county considers, before adoption, procedures and policies that have a significant impact on the cost of housing. K. The Indian River County Affordable Housing Advisory Committee recommendations shall also include other affordable housing incentives identified by the Indian River County Affordable Housing Advisory Committee. L. To the maximum extent feasible, the approved affordable housing incentive recommendations submitted to the Board of County Commissioners must quantify the affordable housing cost reduction anticipated from implementing the specific recommendation. M. Within nine (9) months from the adoption of this Ordinance, the Indian River County Affordable Housing Advisory Committee shall convene a public hearing whereupon the Committee shall undertake final review and consideration of the recommendations developed over the course of the Committee's previous meetings. The final resulting recommendations, approved by a majority of the committee's membership at this public hearing, shall be the Affordable Housing Incentive Plan to be forwarded to the Indian River County Board of County Commissioners for review and adoption by the Board. Notice of the time, date, and place of the public hearing of the Indian River County Affordable Housing Advisory Committee to adopt final affordable housing incentive recommendations shall be published in a newspaper of general paid circulation in the county. Such notice shall contain a short and concise summary of the affordable housing incentive recommendations to be considered by the Indian River County Affordable Housing Advisory Committee. The notice shall also state the public place where a copy of the tentative Indian River County Affordable Housing Advisory Committee recommendation can be obtained by interested persons. SECTION VII. ADOPTION OF THE INDIAN RIVER COUNTY AFFORDABLE HOUSING INCENTIVE PLAN A. Within ninety (90) days after the date of the receipt of the affordable housing incentive recommendations from the Indian River County Affordable Housing Advisory Committee, the Board of County Commissioners shall adopt the Indian River County Affordable Housing Incentive Plan. The Indian River County Affordable Housing Incentive Plan shall consist of the adoption of specific initiatives to encourage or facilitate affordable housing and a schedule for implementation and, at a minimum, must include: (1) A schedule for implementation of expedited permit processing for affordable housing projects; and (2) An ongoing process for review of local policies, ordinances, regulations, and comprehensive plan provisions that significantly impact the cost of housing. B. Upon adoption of the Indian River County Affordable Housing Incentive Plan, the Board of County Commissioners shall so notify the Florida Housing Finance Agency by certified mail. The notice shall include a copy of the approved Indian River County Affordable Housing Incentive Plan. SECTION VIII. SEVERABILITY If any phrase or portion of this Ordinance, or the particular application thereof, shall be held invalid or unconstitutional by any court, administrative agency or other body with appropriate jurisdiction, the remaining section, subsection, sentences, clauses, or phases and their application shall not be affected thereby. e ORDINANCE NO. 93-13 SECTION IX. EFFECTIVE DATE This Ordinance shall become effective thirty (30) days after the date of formal adoption. The above and foregoing Ordinance was read and approved at a duly convened meeting of the Indian River County Board of County Commissioners of Indian River Florida, this 6th day of Agri 1 19930 This ordinance was advertised in the Vero Beach Press -Journal on the 16th day of March, 1993 for a public hearing to be held on the 6th day of April, 1993. The ordinance was moved for adoption by Commissioner Eggert , seconded by Commissioner Adams , and adopted by the following vote: Chairman, Richard N. Bird Ave Vice Chairman, John W. Tippin Aye Commissioner Kenneth R. Macht Aye Commissioner Carolyn Eggert Aye Commissioner Fran B. Adams qf ,Aye 4 kiT J. Yt:. BOARD OF COUNTY COMMISSIONERS OF IN BY: ATTEST BY: " of f'ery_°�'K'. Barton, C 1 e k '. M bra 5, Acknowledgement by the Department of State of The State of FFlori�ia, this 19th day of April 1993. wC .cam Effective Date: Acknowledgement from the Departmentx'of Stat'eccc1;1 received on this 22nd day of April 1993, at °10:00 a.m. A.M./PAIX and filed in the office of the Clerk of the Board of County Commissioners of Indian River County, Florida. APPROVED AS TO FORM AND�LEGAL SUFFICIENCY BY : William G. Collins, II (Deputy County Attorney u\v\h\htford2.ord GUIDELINES, PROCEDURES, April 1993 Page I. INTRODUCTION 1 Purpose and Intent 1 Background 1 Plan Effective Date and Duration 3 Implementation Authorization 3 II. DEFINITIONS 3 III. THE INDIAN RIVER COUNTY LOCAL HOUSING ASSISTANCE PROGRAM (IRCLHAProgram) 6 A. General Program Requirements 6 1. Advertisement and Notice of Fund Availability 6 2. Housing Unit Occupancy 7 3. Income Classification Levels 8 4. Monetary Allocations 9 5. Housing Unit Sales/Purchase Price 11 6. Housing Unit Rental Rates 12 7. Combined Assistance Strategy Awards for Housing Units 12 8. Financial Standing of Eligible Housing Units 13 9. Non-discrimination Policy 13 10. Recycled/Repaid Funds for the Indian River County Local Housing Assistance Trust Fund (IRCLHATF) 13 11. Support Services for Eligible Recipients 13 Be Local Housing Assistance Program Strategies 14 1. Impact Fee Grants 14 2. Impact Fee Loans 17 3. Downpayment/Closing Cost Loans 19 4. Land Acquisition Loans 22 I 5. Rehabilitation Loans 24 6. Land Bank - Market Purchase 27 7. Land Bank - Tax Deed Purchase 30 C. Estimated Unit Assistance and Prices for the IRCLHAProgram 33 D. IRCLHAProgram Administration/Implementation Activities 34 1. Program Expenditures 34 2. Application Periods 35 3. Application Processing 35 4. IRCLHAProgram Applicant Criteria 36 a. Income Level 36 b. Employment Verification 36 c. Asset Verification 37 d. Mortgage/Rent Verification 37 e. Credit Verification 37 f. Homebuyer Status 37 5. Application Review 37 6. Transfer/Dispersal of Funds for Housing Units 38 a. Housing Unit Inspection/Certificate of Occupancy 38 b. First Mortgage/Subordinated First Mortgage Documentation 39 7. IRCLHAProgram Compliance Monitoring 39 a. Compliance Review Activities 39 i. Property Tax Payment Verification ii. Homeowner/Property Owner Insurance Verification iii. Owner and Eligible Person Occupancy Verification iv. Rental Rate Verification b. Non-compliance Notification 40 8. Assisted Housing Unit Resale 41 9. Data Development and Compilation 42 11 10. IRCLHAPlan Compliance Monitoring 42 IV. PLAN AMENDMENTS 46 A. Authority 46 Be Timing 46 C. Procedures 46 V. CERTIFICATION 48 VI. EXHIBITS 50 A. Table 1: Fiscal Year 1992 - 1993 Housing Delivery Goals for SHIP Funds by Households, Units and Dollars Be Table 2: Fiscal Year 1993 - 1994 Housing Delivery Goals for SHIP Funds by Households, Units and Dollars C. Ordinance Number 93-13 Establishing the Indian River County Local Housing Assistance Program D. Resolution Number 93-74 Setting a Maximum and Average State Housing Initiatives Partnership (SHIP) Investment per housing unit. E. Resolution Number 93-75 Authorizing Administrative Budget Expenditures over Five Percent (5%), but not exceeding Ten Percent (10%), of the Indian River County Local Housing Assistance Trust Fund F. Resolution Number 93- Appointing the Members of the Indian River County Local Housing Advisory Committee created by Ordinance 93-13 ill TABLE N0. TITLE PAGE Table 1 Fiscal Year 1992 - 1993 Section VI Housing Delivery Goals Exhibit A for SHIP Funds by Households, Units, and Dollars Table 2 Fiscal Year 1993 - 1994 Section VI Housing Delivery Goals Exhibit B for SHIP Funds by Households, Units, and Dollars Table 3 Estimated SHIP Fund Expenditures for Construction, Rehabilitation, 33 and Homeownership by Assistance Strategy iv I. INTRODUCTION This document, titled Indian River County Local Housing Assistance Plan, outlines and provides the general guidelines, operating procedures and assistance strategies of the Indian River County Local Housing Assistance Program as established by the Indian River County Board of County Commissioners via Ordinance 93-13 (Please see Exhibit C); pursuant to the requirements of the State of Florida State Housing Initiatives Partnership (SHIP) Program and Rule 9I-37.0051 Local Housing Assistance Plans, Florida Administrative Code (FAC). The purpose and intent of the Indian River County Local Housing Assistance Plan is to provide guidelines, operating procedures and assistance strategies to be utilized by the Indian River County Local Housing Assistance Program in order to encourage the provision and rehabilitation of decent, affordable housing for the residents of Indian River County. Background The provision of affordable housing has become a significant issue throughout the United States, Florida and Indian River County. The need for affordable housing is especially significant for very low-, low-, and moderate -income households which encounter various obstacles in their attempt to obtain "affordable housing". These obstacles include, but are not limited to, obtaining sufficient funds for the payment of impact fees and/or down payments for housing units. According to information provided by the 1990 U.S. Census, approximately 60% of Indian River County's households may be classified as very low-, low- or moderate -income households. These households require housing; however, due to the obstacles noted, they may not be able to secure adequate housing. The need for affordable housing for very low-, low- and moderate -income households within the county is addressed in the county's adopted comprehensive plan, specifically Housing Element Policy 4.4. That policy reads as follows: "The county shall establish a Housing Trust Fund which will provide below-market interest rate financing and/or grants for land acquisition, construction and other related costs for the development of affordable housing units in the unincorporated area. The fund will also assist non-profit facilitators with pre -development expenses associated with very low, low and moderate income housing development. Some disbursements from the Housing Trust Fund will be grants, but the majority of funds will be revolving loans, with borrowers paying back into the trust, therefore ensuring a permanent source of financing." The intent of this policy is to provide a financial mechanism which could be utilized to encourage the provision of affordable housing units for households with very low-, low-, and moderate -incomes in Indian River County. When the comprehensive plan was being developed, it was anticipated that a Housing Trust Fund could be established and funded by a variety of sources, including contributions from barrier island municipalities, developer contributions from a density bonus program, and other sources. In June, 1992, the State of Florida Legislature approved and passed the William E. Sadowski Affordable Housing Act which creates a state funded program whereby participating communities can receive monies for a Local Housing Assistance Trust Fund. The program created by the Sadowski Act is titled the State Housing Initiatives Partnership (SHIP) Program. SHIP Program requirements have been codified and established in Section 420.907 of the Florida Statutes (FS) and Chapter 9I-37 of Florida Administrative Code (FAC). The Administrative Rules listed in Chapter 9I-37 establish specialized compliance requirements for communities participating in the SHIP Program. In order to participate in the SHIP Program, a community must complete the following activities: 1. Adopt a local ordinance which establishes a Local Housing Assistance Program (LHAProgram) and a Local Housing Assistance Trust Fund (LATF). 2. Adopt a Local Housing Assistance Plan (LHAPlan) which details the intent and guidelines of the Local Housing Assistance Program (LHAProgram). 3. Create a Local Affordable Housing Advisory Committee which will conduct a regulatory review of the county's regulations and develop a Local Housing Incentive Plan (LHIPlan) to be adopted by the community within one (1) year of adoption of the ordinance establishing the LHAProgram. In compliance with the county Comprehensive Plan and the State of Florida State Housing Initiatives Partnership (SHIP) Program, the Indian River County Board of County Commissioners adopted Ordinance 93-13 which established the Indian River County Local Housing Assistance Program (IRCLHAProgram) and created the Indian River County Local Housing Assistance Trust Fund (IRCLHATF). The ordinance, which also creates the required Indian River County Affordable Housing Advisory Committee (IRCAHAC), is incorporated within this plan as Exhibit C. The remaining requirement, adoption of a Local Housing Assistance Plan, will be accomplished by the adoption of this document, titled The Indian River County Local Housing Assistance Plan. With adoption of this plan, Indian River County will be eligible to participate in the State Housing Initiatives Partnership (SHIP) Program. Plan Effective Date and Duration The Indian River County Local Housing Assistance Plan will be effective upon the date of its adoption by the Board of County Commissioners of Indian River County. The Plan will be effective for a period of two (2) years, encompassing the 1992-1993 and 1993-1994 fiscal years for the Indian River County Local Housing Assistance Program and the State Housing Initiatives Partnership Program. Pursuant to the procedures established in this Plan, the Plan effective date and duration of the Plan may be amended by the Board of County Commissioners. Implementation Authorization The Indian River County Local Housing Assistance Program and Plan shall be implemented by the Indian River County Community Development Department. The Community Development Department shall have the authority, upon Board of County Commissioners approval, to contract -out to private or public, profit or not- for-profit organizations for services for the implementation of the Indian River County Local Housing Assistance Program. II. DEFINITIONS All definitions and terms provided in Rule 9I-37.0021 Florida Administrative Code (FAC), and the State Housing Initiatives Partnership Program Rules, as amended, shall apply to the terms used in this Plan. For those definitions and terms not addressed in Rule 9I- 37.002, FAC, the following definitions shall apply: 1. Annual Operating Report (IRCLHAPAOR, AOR): The annual summary and review report analyzing and listing the accomplishments of the Indian River County Local Housing Assistance Program. 2. Assistance Strategy (Strategy): A method utilized by the Indian River County Local Housing Assistance Program to provide assistance to eligible sponsors in order to encourage the provision of eligible housing for eligible persons in Indian River County. 3. Draw(s): A partial payment of a larger, cumulative sum of funds. 4. Encumber Funds (Encumbrance of Funds): The process of committing available funds allocated through the Indian River County Local Housing Assistance Program to an eligible sponsor by executing a formal contract for the purchase or rehabilitation of a housing unit. 5. Housing Code Inspection: An inspection of an existing or rehabilitated housing unit by a Building Department Inspector(s) or other authorized inspector(s), whereby compliance of the unit with current building and safety code standards is evaluated. 6. Indian River County Local Housing Assistance Plan (IRCLHAPlan): The document adopted by the Indian River County Board of County Commissioners which provides the operating guidelines, procedures, and strategies of the Indian River County Local Housing Assistance Program. 7. Indian River County Local Housing Assistance Program (IRCLHAProgram): The program established by the Indian River County Board of County Commissioners which will distribute funds contained within the Indian River County Local Housing Assistance Trust Fund in order to encourage the provision of affordable eligible housing for eligible persons in Indian River County. 8. Indian River County Local Housing Assistance Program Review Committee (IRCLHAPRC): The committee which reviews submitted applications for Indian River County Local Housing Assistance Program participation after said applications have satisfied an initial application review conducted by Community Development Department staff or a third party entity identified by contract to conduct application reviews. The Committee shall consist of three members. the Indian River County Community Development Director, the financial institution representative of the Indian River County Affordable Housing Advisory Committee, and one representative of the general public appointed by the Indian River County Board of County Commissioners. 9. Indian River County Local Housing Assistance Trust Fund (IRCLHATF): The fund created by the Indian River County Board of County Commissioners which holds funds received from the State of Florida SHIP Program and other local sources for distribution through the Indian River County Local Housing Assistance Program. 10. Land Bank: A method by which Indian River County may acquire residential properties to be sold or granted to eligible sponsors through the Indian River County Local Housing Assistance Program. 11. Notice of Commitment: The written notification issued by the Indian River County Local Housing Assistance Program indicating that an eligible sponsor has qualified to receive assistance from the Indian River County Local Housing Assistance Program. 12, Unit Affordable Classification Timeframe: The period of time that an eligible housing unit assisted through the Indian River County Local Housing Authority Program must be available for, and occupied by, an eligible person. III. THE INDIAN RIVER COUNTY LOCAL HOUSING ASSISTANCE PROGRAM (IRCLHAProgram) The Indian River County Local Housing Assistance Program (IRCLHAProgram) is the mechanism to be utilized by Indian River County to provide assistance and incentives to encourage the provision of affordable housing for residents of the county. The IRCLHAProgram shall utilize various strategies to make funds held in the Indian River County Local Housing Assistance Trust Fund (IRCLHATF) available to eligible persons or eligible sponsors for the provision of affordable housing for eligible persons. By providing such assistance through the various strategies, the IRCLHAProgram shall serve to reduce the cost of housing for eligible recipients. The IRCLHAProgram will be implemented, administered and operated by the Indian River County Community Development Department. The requirements and guidelines for the IRCLHAProgram and its available strategies are as follows: A. General Program Requirements The Indian River County Local Housing Assistance Program (IRCLHAProgram) shall be operated in conformance with the requirements of the State Housing Initiatives Partnership Act, Section 420.907, Florida Statutes, and the State Housing Initiatives Partnership Program, Chapter 9I-37 of the Florida Administrative Code. General operation and implementation of the program shall comply with the following specific criteria: 1. Advertisement and Notice of Fund Availability Formal public notice of the availability of funds for the provision of affordable housing via the IRCLHAProgram shall be made in the following manner. a. At the beginning of the Fiscal Year: i. A Public Notice Advertisement listing the expected amount of funds to be available for the commencing fiscal year shall be placed in the local daily newspaper; and lie General publicity flyers, describing the IRCLHAProgram and listing the expected amount of funds to be available for the commencing fiscal year, shall be distributed to local organizations for distribution to the general public. The local organizations shall include, but not be limited to, church organizations, financial institutions, realtors, the Chamber of Commerce, and contractors. b. At the mid -point of the Fiscal Year: i. A Public Notice Advertisement listing the balance of unencumbered existing and expected funds for the IRCLHATF shall be placed in the local daily newspaper; and ii. General publicity flyers, describing the IRCLHAProgram and listing the balance of unencumbered existing and expected funds for the IRCLHATF, shall be distributed to local organizations for distribution to the general public. c. Additional methods of dispensing information concerning the IRCLHAProgram may be utilized in promoting public awareness and participation in the IRCLHAProgram. Such methods may include, but shall not be limited to, conducting seminars on the program for representatives of local organizations and the general public and the provision of public service announcements. d. Funding for advertisements and notices to promote public awareness of the IRCLHAProgram shall be provided from the Indian River County Local Housing Assistance Trust Fund (IRCLHATF) as a part of the IRCLHAProgram's general administration and implementation activities. 2. Housing Unit Occupancy All assistance provided through the IRCLHAProgram and the Indian River County Local Housing Assistance Trust Fund (IRCLHATF) shall be provided consistent with the following requirements: a. One hundred percent (100%) of all housing units receiving assistance shall be occupied by households which are classified as very low-, low - or moderate -income households at the time of initial occupancy of the assisted housing unit. However, the income of eligible persons, following initial occupancy of the assisted housing unit, may increase and exceed.the limits established for very low-, low- or moderate -income households as follows: i. For rental units: (a) A very low-income person's annual adjusted gross income may increase to an amount not to exceed one hundred forty percent (140%) of fifty percent (50%) of the median income adjusted for family size for the purposes of the IRCLHAProgram; (b) A low-income person's annual adjusted gross income may increase to an amount not to exceed one hundred forty percent (140%) of eighty percent (80%) of the median income adjusted for family size for the purposes of the IRCLHAProgram; (c) A moderate -income person's annual adjusted gross income may increase to an amount not to exceed one hundred forty percent (140%) of one hundred twenty percent (120%) of the median income adjusted for family size for the purposes of the IRCLHAProgram; ii. For owner -occupied units: The income of eligible persons may increase without limit. b. A minimum of thirty percent (30%) of the housing units receiving assistance shall be occupied by households which are classified as very low-income households. c. A minimum of thirty percent (30%) of the housing units receiving assistance shall be occupied by households which are classified as low-income households. d. Each individual IRCLHAProgram Assistance Strategy shall further identify the income classification of eligible persons who may occupy the housing unit. (Please Section III.B. of this Plan.) 3. Income Classification Levels The income levels utilized to identify very low-, low-, and moderate -income eligible persons for participation in the IRCLHAProgram shall be the income limits adjusted for family size which are published annually by the Florida Housing Finance Agency. For the 1992 - 1993 Fiscal Year, these adjusted income levels are: Income Level Very Low Low Moderate Household Size 50% 80% 120% 1 Person 12,450 19,950 29,880 2 Person 14,250 22,800 34,200 3 Person 16,000 25,650 38,400 4 Person 17,800 28,500 42,720 5 Person 19,200 30,750 46,080 6 Person 20,650 33,050 49,560 7 Person 22,050 35,300 52,920 8 Person 23,500 37,600 56,400 4. Monetary Allocations Funds from the Indian River County Local Housing Assistance Trust Fund (IRCLHATF) shall be distributed in conformance with the following distribution requirements: a. A minimum of seventy-five percent (75%) of the annual balance of funds in the IRCLHATF shall be expended on Indian River County Local Housing Assistance Program Strategies which encompass construction, rehabilitation or emergency repair activities for eligible housing which will be utilized by eligible persons. b. A minimum of sixty-five percent (65%) of the annual balance of funds in the IRCLHATF shall be expended on Program Strategies which result in homeownership for eligible persons or assist and improve housing units owned by eligible persons. A housing unit which is to be acquired by an eligible person via a lease purchase agreement in which the lease does not exceed two (2) years shall also be classified as a homeownership unit. Should the lease -purchase lease period exceed two (2) years, the housing unit shall be classified�as a rental housing unit. Furthermore, an initial transfer of title for an assisted housing unit between an eligible non-profit organization sponsor and an eligible person(s) acquiring the unit via a lease -purchase agreement shall not be considered 9 the resale of the unit requiring repayment of the loan amount, interest amount and calculated recapture amount as specified in Section III.D.8 of this Plan. c. One hundred percent (100%) of all funds held in the IRCLHATF shall be expended in a manner consistent with this Plan and Section 420.907 of the Florida Statutes (F.S.). All funds expended from the IRCLHATF shall be expended for administration and implementation activities as outlined in Section III.D. of this Plan, for the assistance strategies identified in Section III.B. of this Plan, or for the provision of support services as identified in Section III.A.10. of this Plan. d. One hundred percent (100%) of all funds allocated to the IRCLHATF by the State SHIP Program shall be expended or encumbered during the fiscal year in which the funds are allocated. However, the payment or transfer of such encumbered funds from the IRCLHATF may occur during the following fiscal year in which the funds are allocated by the State SHIP Program. e. The expenditure of funds from the IRCLHATF for the 1992 - 1993 and 1993 - 1994 Fiscal Years may be expected to follow the yearly estimated expenditure allocations listed below: ITEM ALLOCATION (Percent of SHIP Monies) Administrative Costs Assistance Strategies* Impact Fee Grants Impact Fee Loans Downpayment/Closing Cost Loan Rehabilitation Loans Land Acquisition Loans Land Bank $ 25,000.00 ( 10%) 301000.00 ( 12%) 15,000.00 ( 6%) 1001000.00 ( 40%) 60,000.00 ( 24%) 201000.00 ( 8%) 0.00 ( 0%) $ 250,000.00 (100%) * Compliance with the estimated budgetary allocations for the assistance strategies is not a requirement of the IRCLHAProgram. The estimated budget allocations are designed to serve as general guidelines in conducting the IRCLHAProgram. Monies may be shifted between the strategies in order to maximize the assistance provided by the IRCLHAProgram in compliance with the requirements of this Plan. f. The expenditure and encumbrance of funds allocated to the IRCLHATF by the State SHIP Program may be expected to proceed at the following estimated rate for both the 1992 - 1993 and the 1993 - 1994 Fiscal Years. Date September 30th (End of 1st Quarter) December 31st (End of 2nd Quarter) March 31st (End of 3rd Quarter) June 30th (End of 4th Quarter - Fiscal Year) The listed timeframes are an estimation of the rate of expenditure and encumbrance of funds allocated by the State SHIP Program. The actual rate of expenditure and encumbrance may be greater than or less than the rate indicated. 5. Housing Unit Sales/Purchase Price The expected average sale/purchase price for new and existing housing units to be assisted via the IRCLHAProgram are listed as follows. Unit Size 1 bedroom 2 bedroom 3 bedroom 4 bedroom Price in Dollars New Existing 50,000.00 401050.00 60,000.00 75,000.00 92,000.00 55,000.00 67,000.00 82,000.00 At no time shall the sale/purchase price for new or existing housing units provided or acquired with assistance from the IRCLHAProgram shall exceed ninety percent (90%) of the median area purchase price for new and existing housing units for Indian River County. These median area purchase prices shall be the amounts established each year by the United States Department of Treasury, in accordance with Section 3(b)2 of the United States Housing Act of 1937. The maximum unit sales/purchase price shall be adjusted accordingly each year. For the initial 1992-1993 operating year of this Plan, the median area purchase prices for Indian River County are as follows: New Unit Maximum Purchase Price: $95,400.00 Existing Unit Maximum Purchase Price: $83,160.00 The median area purchase price utilized for application review shall be that price which is in of fect at the time an eligible person or sponsor applies for participation in the IRCLHAProgram. 6. Housing Unit Rental Rates Rental rates for housing units provided or acquired with assistance from the IRCLHAProgram shall conform with the fair market rental rates adjusted for housing unit size and established annually by the United States Housing and Urban Development (HUD) Section 8 Program for housing units in Indian River County. The rental rates ,include expenditures for rent and utilities, excluding Cable Television (CATV) and telephone service, and shall be adjusted accordingly each year. For the initial 1992-1993 operating year of the Plan, the Section 8 Program maximum rental rates for housing units based upon unit size for Indian River County are as follows: Unit Type Efficiency/0 Bedroom 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom Maximum Unit Price 390.00 470.00 550.00 690.00 780.00 Eligible sponsors or persons may qualify to receive assistance under one or more of the IRCLHAProgram's Assistance Strategies (Please see Section III.B. of this Plan.). Applicants receiving assistance under more than one Assistance Strategy shall comply with the following limitations and requirements: a. The combined maximum monetary award per housing unit which may be provided from any one or more of the IRCLHAProgram Assistance Strategies shall not exceed $15,000.00. Awards for Housing Units 7. Combined Assistance Strategy Eligible sponsors or persons may qualify to receive assistance under one or more of the IRCLHAProgram's Assistance Strategies (Please see Section III.B. of this Plan.). Applicants receiving assistance under more than one Assistance Strategy shall comply with the following limitations and requirements: a. The combined maximum monetary award per housing unit which may be provided from any one or more of the IRCLHAProgram Assistance Strategies shall not exceed $15,000.00. b. The income status of an eligible person occupying a housing unit receiving assistance from one or more IRCLHAProgram Assistance Strategies shall comply with the income classification restrictions as specified by the applicable Strategies. 8. Financial Standing of Eligible Housing Units Owners of all eligible housing units receiving assistance from the IRCLHAProgram shall be required to maintain good financial standing in relation to their respective housing units as follows: a. All owners shall maintain valid Property Owners or Homeowners Insurance, as appropriate, for their respective units. Proof of such insurance shall be provided to the IRCLHAProgram on an annual basis; and b. All owners shall complete, and not default upon, payment of all property taxes for their respective housing units. 9. Non-discrimination Policy The IRCLHAProgram and all eligible sponsors shall not discriminate in the IRCLHAProgram application and award process on the basis of race, creed, religion, color, age, sex, sexual preference, marital status, familial status, national origin, or handicap. 10. Recycled/Repaid Funds for the Indian River County Local Housing Assistance Trust Fund (IRCLHATF) All funds repaid to the IRCLHATF shall be recycled for re -use by the IRCLHAProgram. The funds repaid shall be added to the existing balance of the IRCLHATF and redistributed for use through the IRCLHAProgram. 11. Support Services for Eligible Recipients The IRCLHAProgram will not actively provide additional support services such as tenant counseling, adult/child care, or transportation assistance for eligible recipients. The IRCLHAProgram may encourage the provision of such support services by private or public, profit or not-for-profit organizations. The IRCLHAProgram may provide technical assistance for the provision of such support services and, upon approval by the Board of County Commissioners, the IRCLHAProgram may provide financial assistance for the provision of such support services. Be Local Housing Assistance Program Strategies The strategies available for use in the IRCLHAProgram shall serve to effectively reduce the cost of housing in two ways. The first is by awarding grants or deferred loans to eligible recipients, whereby a portion of the initial cost encountered in acquiring or providing housing may be eliminated entirely or deferred indefinitely until a time when the eligible recipients may then be able to afford the costs. The second method of reducing the cost of housing is by the provision of loans at an interest rate lower than current market rates offered by private financial institutions. Such low interest loans result in reduced costs by decreasing the amount of funds to be paid back over time. By utilizing assistance strategies which provide these two methods of either deferring or reducing costs, the IRCLHAProgram will encourage the provision of affordable housing. A total of seven (7) assistance strategies are available for use by the Indian River County Local Housing Assistance Program (IRCLHAProgram) in providing assistance to eligible persons or sponsors. Of the seven strategies, emphasis and priority for use will be placed upon the Impact Fee Grant, Impact Fee Loan, Downpayment/Closing Cost Loan, Land Acquisition Loan and Rehabilitation Loan strategies. Utilization of the two Land Banking strategies will occur solely if funds are available which may not be effectively utilized under one of the initial five strategies. These strategies are generally summarized in the Housing Delivery Tables included as Exhibit "A" and "B" of this Plan, and further described as follows: 1. Impact Fee Grants a. Description The IRCLHAProgram anticipates providing grants for the payment of water, sewer, electric, and traffic impact fees for eligible housing units for qualified eligible persons or sponsors. Funds for impact fee grants shall be transferred directly to the appropriate impact fee account corresponding to the eligible housing unit. Grants may be provided in conjunction with the construction of new homes, or in conjunction with existing owner -occupied homes which must be connected to public services. For new homebuyers, the provision of such grants will reduce the financial cost, as the grant will eliminate the need to include impact fees in the overall, up front, financing costs for a housing unit. Grants provided to pay impact fees to connect existing housing units to public services will eliminate a financial burden for the owner who may be unable to afford either making a lump sum payment of the fees, or financing payment of the fees at current market rates which currently exceed seven percent (7%). The provision of Impact Fee Grants will primarily be directed to the construction of new housing units. Impact Fee Grants to existing homeowners may be provided only when connection to public services is required under state law or by the county in compliance with its connection ordinance and comprehensive plan policy to provide services to existing homes. However, when existing homes are to be rehabilitated under the Rehabilitation Loan Assistance Strategy described in Item #5, the impact fee costs to connect the existing unit should be included in the amount of the rehabilitation loan award with a separate impact fee grant provided only if the complete rehabilitation and connection cost will exceed the $10,000.00 Rehabilitation Loan limit. i. Geographic Area Impact fee grants may be made for eligible housing units located anywhere in the County, including all municipalities located within the County. ii. Housing Unit Classification All housing units shall be owner -occupied single-family residences, or single-family residences occupied by a future owner acquiring the unit via a lease -purchase agreement with a lease period of less than two (2) years. Applicant Classification fee may be awarded for eligible b. Eligibility (a) Impact grants i. Geographic Area Impact fee grants may be made for eligible housing units located anywhere in the County, including all municipalities located within the County. ii. Housing Unit Classification All housing units shall be owner -occupied single-family residences, or single-family residences occupied by a future owner acquiring the unit via a lease -purchase agreement with a lease period of less than two (2) years. Applicant Classification (b) Impact fee grants shall result in eligible housing for the following eligible persons: 1. Very Low -Income Persons fee may be awarded for eligible (a) Impact grants housing to be provided by the following eligible sponsors. i. Non-profit Organizations Persons 2. Very Low -Income Eligible (b) Impact fee grants shall result in eligible housing for the following eligible persons: 1. Very Low -Income Persons c. Basic Award Terms i. Maximum Monetary Award The maximum monetary award for an impact fee grant shall not exceed $71500.00 or the total cost of applicable impact fees for the eligible housing unit, whichever is less. ii. Repayment Terms/Timeframe The repayment of funds awarded as an impact fee grant is not required, except in cases whereby the eligible housing unit is sold to non -eligible persons prior- to termination of the unit's affordable classification timeframe. In cases where the unit is sold to a non -eligible person, resale of the unit shall require repayment of the original grant amount and accrued interest on the original grant amount. Furthermore, any sale of the unit shall be subject to the funds recapture provisions listed in Section III.D.8. of this Plan Interest Rate There is no applicable interest rate for impact fee grants, except in cases whereby the housing unit is sold to a non -eligible person prior to termination of the unit's affordable classification timeframe. In such cases where the unit is sold to a non - eligible person prior to termination of the housing unit's affordable classification timeframe, the impact fee grant funds provided for the unit are subject to a three percent (3%) annual interest rate, compounded on an annual basis. Eligible housing utilizing assistance from the IRCLHAProgram Impact Fee Grant Strategy shall be owner -occupied by qualified eligible persons for the following periods: 1. For existing housing units: The unit shall be occupied by a qualified eligible person for a period of not less than twenty (20) years. 2. For new housing units: The unit shall be occupied by a qualified eligible person for a period of not less than twenty-five (25) years. Timeframe iv. Affordable Classification Eligible housing utilizing assistance from the IRCLHAProgram Impact Fee Grant Strategy shall be owner -occupied by qualified eligible persons for the following periods: 1. For existing housing units: The unit shall be occupied by a qualified eligible person for a period of not less than twenty (20) years. 2. For new housing units: The unit shall be occupied by a qualified eligible person for a period of not less than twenty-five (25) years. v. Compliance Agreement and Security Instrument Eligible housing units utilizing assistance from the IRCLHAProgram Impact Fee Grant Strategy shall be secured by a first mortgage in favor of Indian River County. This first mortgage may be subordinated to construction and/or permanent mortgages applied to the same unit upon approval of the IRCLHAProgram Review Committee. The first mortgage shall serve as the eligible recipient's contractual commitment to comply with the requirements of the IRCLHAProgram. 2. Impact Fee Loans a. Description The IRCLHAProgram anticipates providing low-interest loans for the payment of water, sewer and traffic impact fees for housing units for qualified eligible persons or sponsors. Funds for impact fee loans shall be transferred directly to the appropriate impact fee account corresponding to the eligible housing unit. Loans may be provided in conjunction with the construction of new homes, or in conjunction with existing owner -occupied homes which must be connected to public services. For new homebuyers, the provision of such loans will reduce the financial cost, as the loans will be deferred and therefore eliminate the need to include impact fees in the overall, up front, financing costs for a housing unit. Such loans provided to pay impact fees to connect existing housing units to public services will allow owners to defer the payment of such fees until the time the housing unit is sold, since the owner may be unable to afford either making a lump sum payment of the fees, or financing payment of the fees at current market rates which currently exceed seven percent (7%). The provision of Impact Fee Grants will primarily be directed to the construction of new housing units. Impact Fee Loans to existing homeowners may be provided only when connection to public services is required under state law or by the county in compliance with its connection ordinance and comprehensive plan policy to provide services to existing homes. However, when existing homes are to be rehabilitated under the Rehabilitation Loan Assistance Strategy described in Item #5, the impact fee costs to connect the existing unit should be included in the amount of the rehabilitation loan award with a separate impact fee loan provided only if the complete rehabilitation and connection cost will exceed the $10,000.00 Rehabilitation Loan limit. i. Geographic Area Impact fee loans may be made for eligible housing units located anywhere in the County, including all municipalities located within the County. ii. Housing Unit Classification All housing units shall be owner -occupied single- family residences, or single-family residences occupied by the future owner acquiring the unit via a lease -purchase agreement with a lease period of less than two (2) years. Applicant Classification (a) Impact fee loans may be awarded for eligible housing to be provided by the following eligible sponsors. 1. Non-profit Organizations 2. Very Low -Income Eligible Persons 3. Low -Income Eligible Persons (b) Impact fee loans shall result in eligible housing for the following eligible persons: i. Very Low -Income Persons 2. Low -Income Persons c. Basic Award Terms i. Maximum Monetary Award The maximum monetary award for an impact fee loan shall not exceed $7,000.00 or the total cost of applicable impact fees for the eligible housing unit, whichever is less. ii. Repayment Terms/Timeframe Impact fee loans shall be deferred payment loans whereby repayment of the loan amount and accrued interest occurs at the time that the eligible housing unit is sold. b. Eligibility i. Geographic Area Impact fee loans may be made for eligible housing units located anywhere in the County, including all municipalities located within the County. ii. Housing Unit Classification All housing units shall be owner -occupied single- family residences, or single-family residences occupied by the future owner acquiring the unit via a lease -purchase agreement with a lease period of less than two (2) years. Applicant Classification (a) Impact fee loans may be awarded for eligible housing to be provided by the following eligible sponsors. 1. Non-profit Organizations 2. Very Low -Income Eligible Persons 3. Low -Income Eligible Persons (b) Impact fee loans shall result in eligible housing for the following eligible persons: i. Very Low -Income Persons 2. Low -Income Persons c. Basic Award Terms i. Maximum Monetary Award The maximum monetary award for an impact fee loan shall not exceed $7,000.00 or the total cost of applicable impact fees for the eligible housing unit, whichever is less. ii. Repayment Terms/Timeframe Impact fee loans shall be deferred payment loans whereby repayment of the loan amount and accrued interest occurs at the time that the eligible housing unit is sold. V Eligible persons may make payments in advance, without penalty, to be credited towards the outstanding loan and accrued interest; however, such advance repayment is not required. When the eligible housing. unit is sold, the eligible person owning the unit shall be subject to the funds recapture provisions listed in Section III.D.8. of this Plan. Interest Rate The interest rate for all loans granted under the IRCLHAProgram Impact Fee Loan Strategy shall be a three percent (3%) annual percentage rate, compounded on an annual basis. iv. Affordable Classification Timeframe Eligible housing utilizing assistance from the IRCLHAProgram Impact Fee Loan Strategy shall be occupied by the qualified eligible persons owning the housing unit for the duration of the outstanding impact fee loan. Upon sale of the eligible housing unit by the owner, repayment of the outstanding loan amount and accrued interest shall be required and the affordability timeframe requirement terminated. v. Compliance Agreement and Security Instrument Eligible housing units utilizing assistance from the IRCLHAProgram Impact Fee Loan Strategy shall be secured by a first mortgage in favor of Indian River County. This first mortgage may be subordinated to construction and/or permanent mortgages applied to the same unit upon approval of the IRCLHAProgram Review Committee. The first mortgage shall serve as the eligible recipient's contractual commitment to comply with the requirements of the IRCLHAProgram. 3. Downpayment/Closing Cost Loans a. Description The IRCLHAProgram anticipates providing low-interest loans to eligible persons for downpayments and/or the payment of closing costs encountered for the purpose of acquiring an eligible housing unit. For the purchase of constructed housing units, either new or existing, the funds for downpayment/closing cost loans shall be delivered at the time of closing, whereby the transaction transferring ownership of the eligible housing unit to the eligible person is completed. For the purchase of new housing units to be constructed, the funds for downpayment/closing cost loans shall be delivered to the financial institution providing the construction loan for the housing unit for inclusion in the individual construction disbursement account. Downpayment/closing cost loans shall not be provided for the acquisition of housing units requiring rehabilitation prior to approval for occupancy by residents. Housing units acquired by eligible persons which are to be constructed, or were constructed as new units or substantially rehabilitated (documented rehabilitation expenditures of greater than ten thousand dollars $10,000.00) within one (1) calendar year prior to the closing transaction to acquire that housing unit shall be classified as constructed, rehabilitated, or repaired units as listed Section III.A.4.a. i. Geographic Area Downpayment/Closing cost loans may be made for eligible housing units located anywhere in the County, including all municipalities located within the County. ii. Housing Unit Classification All housing units shall be owner -occupied single- family residences. Applicant Classification (a) Downpayment/Closing cost loans may be awarded for eligible housing to be provided by the following eligible sponsors: 1. Very Low -Income Eligible Persons 2. Low -Income Eligible Persons 3. Moderate -Income Eligible Persons (b) Downpayment/Closing cost loans shall result in eligible housing for the following eligible persons. 1. Very Low -Income Persons b. Eligibility i. Geographic Area Downpayment/Closing cost loans may be made for eligible housing units located anywhere in the County, including all municipalities located within the County. ii. Housing Unit Classification All housing units shall be owner -occupied single- family residences. Applicant Classification (a) Downpayment/Closing cost loans may be awarded for eligible housing to be provided by the following eligible sponsors: 1. Very Low -Income Eligible Persons 2. Low -Income Eligible Persons 3. Moderate -Income Eligible Persons (b) Downpayment/Closing cost loans shall result in eligible housing for the following eligible persons. 1. Very Low -Income Persons 2. Low -Income Persons 3. Moderate -Income Persons c. Basic Award Terms i. Maximum Monetary Award The maximum monetary award for a downpayment/closing cost loan shall not exceed $4,000.00 for awards provided to eligible moderate - income persons or $6,000.00 for awards provided to eligible very low- or low-income persons. Downpayment/Closing cost loans shall be deferred payment loans whereby repayment of the loan amount and accrued interest occurs at the time the eligible housing unit is sold. Eligible persons may make payments in advance, without penalty, to be credited towards the outstanding loan and accrued interest; however, such advance repayment is not required. When the eligible housing unit is sold, the eligible person owning the unit shall be subject to the funds recapture provisions listed in Section III.D.8. of this Plan. Interest Rate The interest rate for all loans granted under the IRCLHAProgram Downpayment/Closing Cost Loan Strategy shall be a three percent (3%) annual percentage rate, compounded on an annual basis. iv. Affordable Classification Timeframe Eligible housing utilizing assistance from the IRCLHAProgram Downpayment/Closing Cost Loan Strategy shall be occupied by the qualified eligible persons owning the housing unit for the duration of the outstanding downpayment/closing cost loan. Upon sale of the eligible housing unit by the owner, repayment of the outstanding loan amount and accrued interest shall be required and the affordability timeframe requirement terminated. ii. Repayment Terms/Timeframe Downpayment/Closing cost loans shall be deferred payment loans whereby repayment of the loan amount and accrued interest occurs at the time the eligible housing unit is sold. Eligible persons may make payments in advance, without penalty, to be credited towards the outstanding loan and accrued interest; however, such advance repayment is not required. When the eligible housing unit is sold, the eligible person owning the unit shall be subject to the funds recapture provisions listed in Section III.D.8. of this Plan. Interest Rate The interest rate for all loans granted under the IRCLHAProgram Downpayment/Closing Cost Loan Strategy shall be a three percent (3%) annual percentage rate, compounded on an annual basis. iv. Affordable Classification Timeframe Eligible housing utilizing assistance from the IRCLHAProgram Downpayment/Closing Cost Loan Strategy shall be occupied by the qualified eligible persons owning the housing unit for the duration of the outstanding downpayment/closing cost loan. Upon sale of the eligible housing unit by the owner, repayment of the outstanding loan amount and accrued interest shall be required and the affordability timeframe requirement terminated. v. Compliance Agreement and Security Instrument Eligible housing units utilizing assistance from the IRCLHAProgram Downpayment/Closing Cost Loan Strategy shall be secured by a first mortgage in favor of Indian River County. This first mortgage may be subordinated to construction and/or permanent mortgages applied to the same unit upon approval of the IRCLHAProgram Review Committee. The first mortgage shall serve as the eligible recipient's contractual commitment to comply with the requirements of the IRCLHAProgram. a. Description The IRCLHAProgram anticipates providing low-interest loans to eligible non-profit sponsors for the acquisition of vacant parcels or lots for the purpose of providing eligible housing units for eligible persons. The funds for acquisition shall be delivered at the time of closing, whereby the transaction transferring ownership of the parcel or lot to the eligible sponsor is completed. The land acquisition loan shall be a primary or first mortgage upon the subject property purchased until the eligible sponsor obtains the construction and/or permanent loan financing for development and construction of the housing unit. At the time the construction/permanent financing is provided for the housing unit, the land acquisition loan shall be subordinated to the construction/permanent mortgage. For the purposes of the IRCLHAProgram, funds expended for property acquisition under the Land Acquisition Loan Assistance Strategy shall be classified as a homeownership expenditure, and an eligible housing unit must be constructed and certified for occupancy on the acquired property within one year of the closing transaction date. Failure to complete construction of and obtain a Certificate of Occupancy for a housing unit within one (1) year of the closing transaction date shall constitute grounds for foreclosure to obtain possession of the property which may be utilized as a land bank acquired property by the IRCLHAProgram. Loans 4. Land Acquisition a. Description The IRCLHAProgram anticipates providing low-interest loans to eligible non-profit sponsors for the acquisition of vacant parcels or lots for the purpose of providing eligible housing units for eligible persons. The funds for acquisition shall be delivered at the time of closing, whereby the transaction transferring ownership of the parcel or lot to the eligible sponsor is completed. The land acquisition loan shall be a primary or first mortgage upon the subject property purchased until the eligible sponsor obtains the construction and/or permanent loan financing for development and construction of the housing unit. At the time the construction/permanent financing is provided for the housing unit, the land acquisition loan shall be subordinated to the construction/permanent mortgage. For the purposes of the IRCLHAProgram, funds expended for property acquisition under the Land Acquisition Loan Assistance Strategy shall be classified as a homeownership expenditure, and an eligible housing unit must be constructed and certified for occupancy on the acquired property within one year of the closing transaction date. Failure to complete construction of and obtain a Certificate of Occupancy for a housing unit within one (1) year of the closing transaction date shall constitute grounds for foreclosure to obtain possession of the property which may be utilized as a land bank acquired property by the IRCLHAProgram. i. Geographic Area Land acquisition loans may be made for eligible housing units located anywhere in the County, including all municipalities located within the County. ii. Housing Unit Classification All housing units utilizing assistance from the IRCLHAProgram Land Acquisition Loan Strategy shall be owner -occupied single-family residences, or single-family residences occupied by a future owner acquiring the unit via a lease -purchase agreement with a lease period of less than two (2) years. Applicant Classification (a) Land acquisition loans may be awarded for eligible housing to be provided by the following eligible sponsors: 1. Non-profit Organizations (b) Land acquisition loans shall result in eligible housing for the following eligible persons. i. Very Low -Income Persons c. Basic Award Terms i. Maximum Monetary Award The maximum monetary award for a land acquisition loan shall not exceed $10,000.00. ii. Repayment Terms/Timeframe Land acquisition loans shall be deferred payment loans, whereby repayment of the loan amount and accrued interest occurs at the time the parcel/lot and its corresponding eligible housing unit is sold. Eligible persons may make payments in advance, without penalty, to be credited towards the outstanding loan and accrued interest; however, such advance repayment is not required. b. Eligibility i. Geographic Area Land acquisition loans may be made for eligible housing units located anywhere in the County, including all municipalities located within the County. ii. Housing Unit Classification All housing units utilizing assistance from the IRCLHAProgram Land Acquisition Loan Strategy shall be owner -occupied single-family residences, or single-family residences occupied by a future owner acquiring the unit via a lease -purchase agreement with a lease period of less than two (2) years. Applicant Classification (a) Land acquisition loans may be awarded for eligible housing to be provided by the following eligible sponsors: 1. Non-profit Organizations (b) Land acquisition loans shall result in eligible housing for the following eligible persons. i. Very Low -Income Persons c. Basic Award Terms i. Maximum Monetary Award The maximum monetary award for a land acquisition loan shall not exceed $10,000.00. ii. Repayment Terms/Timeframe Land acquisition loans shall be deferred payment loans, whereby repayment of the loan amount and accrued interest occurs at the time the parcel/lot and its corresponding eligible housing unit is sold. Eligible persons may make payments in advance, without penalty, to be credited towards the outstanding loan and accrued interest; however, such advance repayment is not required. When the eligible housing unit is sold, the eligible person owning the unit shall be subject to the funds recapture provisions listed in Section III.D.8. of this Plan. Interest Rate The interest rate for all loans granted under the IRCLHAProgram Land Acquisition Loan Strategy shall be a three percent (3%) annual percentage rate, compounded on an annual basis. IV. Affordable Classification Timeframe Eligible housing utilizing assistance from the IRCLHAProgram Land Acquisition Loan Strategy shall be occupied by qualified eligible persons for the duration of the outstanding land acquisition loan. Upon sale of the eligible housing unit by the owner, repayment of the outstanding loan amount and accrued interest shall be required and the affordability timeframe requirement terminated. v. Compliance Agreement and Security Instrument Eligible housing units utilizing assistance from the IRCLHAProgram Land Acquisition Loan Strategy shall be secured by a first mortgage in favor of Indian River County. This first mortgage may be subordinated to construction and/or permanent mortgages applied to the same unit upon approval of the IRCLHAProgram Review Committee. The first mortgage shall serve as the eligible recipient's contractual commitment to comply with the requirements of the IRCLHAProgram. 5. Rehabilitation Loans a. Description The IRCLHAProgram anticipates providing low-interest loans to eligible sponsors or persons to fund all or a portion of the cost encountered in rehabilitating existing or acquired housing units eligible for occupancy by eligible persons. The funds for rehabilitation loans of less than $2,500.00 shall be delivered upon completion of all rehabilitation work and a satisfactory final inspection by the corresponding jurisdictional Building Department that all required rehabilitation activities for the eligible housing unit are completed. Funds for rehabilitation loans of $2,500.00 or more may be delivered in individual draws based upon the completion of individual components of the rehabilitation work. The final draw of funds shall not be less than $1,500.00 and it shall be delivered upon completion of all rehabilitation work and a satisfactory final inspection by the corresponding jurisdictional Building Department that all required rehabilitation activities for the eligible housing unit are completed. i. Geographic Area Rehabilitation loans may be made for eligible housing units located anywhere in the County, including all municipalities located within the County. ii. Housing Unit Classification Eligible housing units receiving IRCLHAProgram Rehabilitation Loans may be either owner -occupied or renter occupied single-family or multiple -family residences. Applicant Classification (a) Rehabilitation loans may be awarded for eligible housing to be provided by the following eligible sponsors: 1. Non-profit Organizations 2. Investors 3. Very Low -Income Eligible Persons 4. Low -Income Eligible Persons (b) Rehabilitation loans shall result in eligible housing for the following eligible persons: c. Basic Award Terms i. Maximum Monetary Award The maximum monetary award for a rehabilitation loan shall not exceed $10,000.00 per single-family or multiple -family housing unit. Additionally, b. Eligibility i. Geographic Area Rehabilitation loans may be made for eligible housing units located anywhere in the County, including all municipalities located within the County. ii. Housing Unit Classification Eligible housing units receiving IRCLHAProgram Rehabilitation Loans may be either owner -occupied or renter occupied single-family or multiple -family residences. Applicant Classification (a) Rehabilitation loans may be awarded for eligible housing to be provided by the following eligible sponsors: 1. Non-profit Organizations 2. Investors 3. Very Low -Income Eligible Persons 4. Low -Income Eligible Persons (b) Rehabilitation loans shall result in eligible housing for the following eligible persons: c. Basic Award Terms i. Maximum Monetary Award The maximum monetary award for a rehabilitation loan shall not exceed $10,000.00 per single-family or multiple -family housing unit. Additionally, rehabilitation loans for multiple family structures shall also be limited to a maximum monetary award of $40,000.00 regardless of the number of units available in the structure. Rehabilitation loans shall be deferred payment loans, whereby repayment of the loan amount and accrued interest occurs as follows: (a) Owner -occupied single-family homes: The loan amount and accrued interest shall be repaid at the time the eligible housing unit is sold. (b) Non -owner -occupied single family homes and multiple -family structures: Repayment of the full rehabilitation loan amount and accrued interest shall be required fifteen (15) years following the date of issuance of the loan. Eligible sponsors or persons may make payments in advance, without penalty, to be credited towards the outstanding loan and accrued interest; however, such advance repayment is not required. When the eligible housing unit is sold, the eligible sponsor or person owning the unit shall be subject to the funds recapture provisions listed in Section III.D.8. of this Plan. Interest Rate The interest rate for all loans granted under the IRCLHAProgram Rehabilitation Loan Strategy shall be a three percent (3%) annual percentage rate, compounded on an annual basis. Terms/Timeframe ii. Repayment Rehabilitation loans shall be deferred payment loans, whereby repayment of the loan amount and accrued interest occurs as follows: (a) Owner -occupied single-family homes: The loan amount and accrued interest shall be repaid at the time the eligible housing unit is sold. (b) Non -owner -occupied single family homes and multiple -family structures: Repayment of the full rehabilitation loan amount and accrued interest shall be required fifteen (15) years following the date of issuance of the loan. Eligible sponsors or persons may make payments in advance, without penalty, to be credited towards the outstanding loan and accrued interest; however, such advance repayment is not required. When the eligible housing unit is sold, the eligible sponsor or person owning the unit shall be subject to the funds recapture provisions listed in Section III.D.8. of this Plan. Interest Rate The interest rate for all loans granted under the IRCLHAProgram Rehabilitation Loan Strategy shall be a three percent (3%) annual percentage rate, compounded on an annual basis. Eligible housing utilizing assistance from the IRCLHAProgram Rehabilitation Loan Strategy, shall be occupied by qualified eligible persons in compliance with the following methods: (a) For owner -occupied single-family housing units: The unit shall be occupied by the qualified eligible person(s) for the duration of the outstanding rehabilitation loan. (b) For rental single-family housing units, and multiple -family housing units: The unit shall be Classification Timeframe IV. Affordable Eligible housing utilizing assistance from the IRCLHAProgram Rehabilitation Loan Strategy, shall be occupied by qualified eligible persons in compliance with the following methods: (a) For owner -occupied single-family housing units: The unit shall be occupied by the qualified eligible person(s) for the duration of the outstanding rehabilitation loan. (b) For rental single-family housing units, and multiple -family housing units: The unit shall be occupied by a, qualified eligible person for a period of not less than ten (10) years. Upon completion of the ten (10) year affordability timeframe, the outstanding rehabilitation loan and its accrued interest shall be due in full for repayment to the IRCLHATF. Upon the sale of any eligible single-family or multiple -family housing unit by the owner, repayment of the outstanding loan amount and accrued interest shall be required and the affordability timeframe requirement terminated. v. Compliance Agreement and Security Instrument Eligible housing units utilizing assistance from the IRCLHAProgram Rehabilitation Loan Strategy shall be secured by a first mortgage in favor of Indian River County. This first mortgage may be subordinated to other rehabilitation, construction, and/or permanent mortgages applied to the same unit upon approval of the IRCLHAProgram Review Committee. The first mortgage shall serve as the eligible recipient's contractual commitment to comply with the requirements of the IRCLHAProgram. Furthermore, the first mortgage document shall note that for rental properties a local non-profit community based organization shall have the first - right -of -refusal for purchase of the rental unit. Should the unit be refused by local non-profit community based organizations, the owner may offer the rental unit(s) for sale on the general real estate market. 6. Land Bank - Market Purchase a. Description The Indian River County, through the Board of County Commissioners and the IRCLHAProgram, may acquire vacant parcels or lots via the general real estate market for the purpose of providing sites for the development of eligible housing units by eligible sponsors for eligible persons. The funds for acquisition shall be delivered at the time of closing, whereby the transaction transferring ownership of the parcel or lot to the county is completed. This Market Purchase Strategy may be considered a strategy of "last resort", whereby it may be utilized in the event unexpended or encumbered funds for the IRCLHAProgram are available and expenditure through the remaining IRCLHAProgram Assistance Strategies is unlikely. The acquired property shall be classified as a monetary asset of the IRCLHATF to be utilized as an equivalent loan to an eligible sponsor or person for the development of an eligible housing unit. Upon transfer of the acquired property to an eligible sponsor, the effective land bank loan shall be secured by a primary or first mortgage upon the subject property until the eligible sponsor obtains the construction and/or permanent loan financing for the development and construction of a housing unit. At the time the construction/permanent financing is provided for the housing unit, the land bank loan shall be subordinated to the construction/permanent mortgage. For the purposes of the IRCLHAProgram, funds expended for property acquisition under the Land Bank Market Purchase Assistance Strategy shall be classified as a homeownership expenditure, and an eligible housing unit must be constructed and certified for occupancy on the acquired property within one year of the closing transaction date. Failure to complete construction of and obtain a Certificate of Occupancy for a housing unit within one (1) year of the closing transaction date shall constitute grounds for foreclosure to obtain possession of the property which may be utilized as a land bank acquired property by the IRCLHAProgram. i. Geographic Area Parcels acquired through land bank acquisitions for the development of eligible housing units may be located anywhere in the County, including all municipalities located within the County. ii. Housing Unit Classification All housing units resulting from the IRCLHAProgram Land Bank Market Purchase Acquisition Strategy shall be owner -occupied single-family residences, or single-family residences occupied by a future owner acquiring the unit via a lease -purchase agreement with a lease period of less than two (2) years. b. Eligibility i. Geographic Area Parcels acquired through land bank acquisitions for the development of eligible housing units may be located anywhere in the County, including all municipalities located within the County. ii. Housing Unit Classification All housing units resulting from the IRCLHAProgram Land Bank Market Purchase Acquisition Strategy shall be owner -occupied single-family residences, or single-family residences occupied by a future owner acquiring the unit via a lease -purchase agreement with a lease period of less than two (2) years. e Applicant Classification (a) Land bank acquisitions may be awarded for eligible housing to be provided by the following eligible sponsors: 1. Non-profit Organizations (b) Land bank acquisitions shall result in eligible housing for the following eligible persons: 1. Very Low -Income Persons c. Basic Award Terms D . Maximum Monetary Award The maximum monetary award for a land bank acquisition expenditure shall not exceed $10,000.00. Land bank acquisitions whereby ownership of the subject property is transferred to an eligible sponsor or person shall be classified as deferred payment loans. Repayment of the effective loan amount (the value of the property) and accrued interest occurs at -the time the parcel or lot and its corresponding eligible housing unit is sold. Eligible persons may make payments in advance, without penalty, to be credited towards the outstanding loan and accrued interest; however, such advance repayment is not required. When the eligible housing unit is sold, the eligible person owning the unit shall be subject to the funds recapture provisions listed in Section III.D.8. of this Plan. ill. Interest Rate The interest rate for all equivalent land bank loans granted under the IRCLHAProgram Land Bank Acquisition Strategy shall be a three percent (3%) annual percentage rate, compounded on an annual basis. Terms/Timeframe ii. Repayment Land bank acquisitions whereby ownership of the subject property is transferred to an eligible sponsor or person shall be classified as deferred payment loans. Repayment of the effective loan amount (the value of the property) and accrued interest occurs at -the time the parcel or lot and its corresponding eligible housing unit is sold. Eligible persons may make payments in advance, without penalty, to be credited towards the outstanding loan and accrued interest; however, such advance repayment is not required. When the eligible housing unit is sold, the eligible person owning the unit shall be subject to the funds recapture provisions listed in Section III.D.8. of this Plan. ill. Interest Rate The interest rate for all equivalent land bank loans granted under the IRCLHAProgram Land Bank Acquisition Strategy shall be a three percent (3%) annual percentage rate, compounded on an annual basis. iv. Affordable Classification Timeframe Eligible housing utilizing assistance from the IRCLHAProgram Land Bank Market Purchase Strategy shall be occupied by qualified eligible persons for the duration of the outstanding equivalent land bank acquisition loan. Upon sale of the eligible housing unit by the owner, repayment of the outstanding land bank loan amount and accrued interest shall be required and the affordability timeframe requirement terminated. v. Compliance Agreement and Security Instrument Eligible housing units utilizing assistance from the IRCLHAProgram Land Bank Market Purchase Strategy shall be secured by a first mortgage in favor of Indian River County. This first mortgage may be subordinated to construction and/or permanent mortgages applied to the same unit upon approval of the IRCLHAProgram Review Committee. The first mortgage shall serve as the eligible recipient's contractual commitment to comply with the requirements of the IRCLHAProgram. 7. Land Bank - Tax Deed Purchase a. Description The Indian River County, through the Board of County Commissioners and the IRCLHAProgram, may acquire vacant parcels or lots by purchasing the properties via Tax Deed Auction for the purpose of providing sites for the development of eligible housing units by eligible sponsors for eligible persons. The funds for acquisition shall be delivered at the time of tax deed sale, whereby the transaction transferring ownership of the parcel or lot to the county is completed. This Tax Deed Purchase Strategy may be considered a strategy of "last resort", whereby it may be utilized in the event unexpended or encumbered funds for the IRCLHAProgram are available and expenditure through the remaining IRCLHAProgram Assistance Strategies is unlikely. The acquired property shall be classified as a monetary asset of the IRCLHATF to be utilized as an equivalent loan to an eligible sponsor or person for the development of an eligible housing unit. Upon transfer of the acquired property to an eligible sponsor, the effective land bank loan shall be secured by a primary or first mortgage upon the subject property until the eligible sponsor obtains the construction and/or permanent loan financing for the development and construction of a housing unit. At the time the construction/permanent financing is provided for the housing unit, the land bank loan shall be subordinated to the construction/permanent mortgage. For the purposes of the IRCLHAProgram, funds expended for property acquisition under the Land Bank Tax Deed Purchase Assistance Strategy shall be classified as a homeownership expenditure, and an eligible housing unit must be constructed and certified for occupancy on the acquired property within one year of the closing transaction date. Failure to complete construction of and obtain a Certificate of Occupancy for a housing unit within one (1) year of the closing transaction date shall constitute grounds for foreclosure to obtain possession of the property which may be utilized as a land bank acquired property by the IRCLHAProgram. i. Geographic Area Parcels acquired through land bank acquisitions for the development of eligible housing units may be located anywhere in the County, including all municipalities located within the County. ii. Housing Unit Classification All housing units resulting from the IRCLHAProgram Land Bank Acquisition Strategy shall be owner - occupied single-family residences, or single-family residences occupied by a future owner acquiring the unit via a lease -purchase agreement with a lease period of less than two (2) years. Applicant Classification (a) Land bank acquisitions may be awarded for eligible housing to be provided by the following eligible sponsors: 1. Non-profit b. Eligibility i. Geographic Area Parcels acquired through land bank acquisitions for the development of eligible housing units may be located anywhere in the County, including all municipalities located within the County. ii. Housing Unit Classification All housing units resulting from the IRCLHAProgram Land Bank Acquisition Strategy shall be owner - occupied single-family residences, or single-family residences occupied by a future owner acquiring the unit via a lease -purchase agreement with a lease period of less than two (2) years. Applicant Classification (a) Land bank acquisitions may be awarded for eligible housing to be provided by the following eligible sponsors: 1. Non-profit Organizations M (b) Land bank acquisitions shall result in eligible housing for the following eligible persons. 1. Very Low -Income Persons c. Basic Award Terms i. Maximum Monetary Award The maximum monetary award for a land bank acquisition expenditure shall not exceed $10,000.00. ii. Repayment Terms/Timeframe Land bank acquisitions whereby ownership of the subject property is transferred to an eligible sponsor or person shall be classified as deferred payment loans. Repayment of the effective loan amount (the value of the property) and accrued interest occurs at the time the parcel or lot and its corresponding eligible housing unit is sold. Eligible persons may make payments in advance, without penalty, to be credited towards the outstanding loan and accrued interest; however, such advance repayment is not required. When the eligible housing unit is sold, the eligible person owning the unit shall be subject to the funds recapture provisions listed in Section III.D.8. of this Plan. The interest rate for all equivalent land bank loans granted under the IRCLHAProgram Land Bank Acquisition Strategy shall be a three percent (3%) annual percentage rate, compounded on an annual basis. iv. Affordable Classification Timeframe Eligible housing utilizing assistance from the IRCLHAProgram Land Bank Acquisition Strategy shall be occupied by qualified eligible persons for the duration of the outstanding equivalent land bank acquisition loan. Upon sale 'of the eligible housing unit by the owner, repayment of the outstanding land bank loan Rate Interest The interest rate for all equivalent land bank loans granted under the IRCLHAProgram Land Bank Acquisition Strategy shall be a three percent (3%) annual percentage rate, compounded on an annual basis. iv. Affordable Classification Timeframe Eligible housing utilizing assistance from the IRCLHAProgram Land Bank Acquisition Strategy shall be occupied by qualified eligible persons for the duration of the outstanding equivalent land bank acquisition loan. Upon sale 'of the eligible housing unit by the owner, repayment of the outstanding land bank loan amount and accrued interest shall be required and the affordability timeframe requirement terminated. v. Compliance Agreement and Security Instrument Eligible housing units utilizing assistance from the IRCLHAProgram Land Bank Acquisition Tax Deed Purchase Strategy shall be secured by a first mortgage in favor of Indian River County. This first mortgage may be subordinated to construction and/or permanent mortgages applied to the same unit upon approval of the IRCLHAProgram Review Committee. The first mortgage shall serve as the eligible recipient's contractual commitment to comply with the requirements of the IRCLHAProgram. C. Estimated Unit Assistance and Pricing for the IRCLHAProgram Use of the listed Local Housing Assistance Program Strategies by the IRCLHAProgram,will result in the provision of eligible housing units for residents of the county. The housing units assisted can be expected to serve various populations of eligible recipients. Table 1 and Table 2, provided as Exhibit "A" and "B", respectively in Section VI of this document, list the Housing Delivery Goals for funds provided by the SHIP Program. The delivery goals listed in Tables 1 and 2 may be expected to result in the construction, rehabilitation and homeownership activities as referenced in Section III.A A of this document. These construction, rehabilitation and homeownership activities are listed in Table 3 following which represents the estimated expenditures for both the 1992 - 1993 and 193 - 1994 Fiscal Years: Table 3 Estimated SHIP Fund Expenditures for Construction, Rehabilitation, and Homeownership Activities by Assistance Strategy Construction/ Assistance Strategy Rehabilitation Homeownership Impact Fee Grant (new) $ 211000.00 ( 88) $ 21,000.00 ( 88) Impact Fee Grant (existing) 41500.00 ( 28) 9,000.00 ( 48) Impact Fee Loan 151000.00 ( 68) 15,000.00 ( 68) Downpayment/Closing Cost Loan (new/rehab) 75,000.00 (308) 75,000.00 (308) Downpayment/Closing Cost Loan (existing) 0.00 ( 08) 25,000.00 (108) Land Acquisition Loan 20,000.00 ( 8%) 20,000.00 ( 8%) Rehabilitation Loan 601000.00 (248) 301000.00 (128) Land Hank 0.00 ( 08) 0.00 ( 08) TOTAL 1951500.00 (788) 195,000.00 (788) The estimates listed in Tables 1, 2 considered binding requirements to IRCLHAProgram. The estimates shall s conducting the IRCLHAProgram, and comparison to completed assistance IRCLHAProgram. and 3 shall not be be satisfied by the erve as references in may be utilized in activities of the The IRCLHAProgram shall be administered and implemented by the Indian River County Community Development Department. The Community Development Department may, with the approval of the Indian River County Board of County Commissioners, contract - out with private or public, profit or non-profit organizations for services to conduct one or more administration or implementation activities of the IRCLHAProgram. The general administration and implementation activities for the IRCLHAProgram shall comply with the guidelines and procedures established for the administration and implementation activities listed in the following sections: 1. Program Expenditures A maximum of ten percent (10) of the annual balance of funds of the Indian River County Local Housing Assistance Trust Fund (IRCLHATF) may be expended to provide for the costs of administering and implementing the IRCLHAProgram. The Board of County Commissioners has made a finding by separate resolution that expenditures for administration and implementation of the IRCLHAProgram may exceed five percent (5%) of the IRCLHATF annual balance; however, at no time shall the funds expended for administration and implementation of the IRCLHAProgram exceed ten percent (10%) of the balance of the IRCLHATF. (Please see Exhibit D.) Expenditures of funds from the IRCLHATF shall be monitored on a regular basis for compliance with the expenditure limitation established by the Board of County Commissioners. Administration and implementation activities of the IRCLHAProgram which may be funded with SHIP funds shall be limited to those items associated with conducting the administration and implementation activities listed in Sections 2 through 8 following in this Plan. Examples of the items which may be funded include the following: a. staff salaries to conduct the administration and implementation activities Activities D. IRCLHAProgram Administration/Implementation The IRCLHAProgram shall be administered and implemented by the Indian River County Community Development Department. The Community Development Department may, with the approval of the Indian River County Board of County Commissioners, contract - out with private or public, profit or non-profit organizations for services to conduct one or more administration or implementation activities of the IRCLHAProgram. The general administration and implementation activities for the IRCLHAProgram shall comply with the guidelines and procedures established for the administration and implementation activities listed in the following sections: 1. Program Expenditures A maximum of ten percent (10) of the annual balance of funds of the Indian River County Local Housing Assistance Trust Fund (IRCLHATF) may be expended to provide for the costs of administering and implementing the IRCLHAProgram. The Board of County Commissioners has made a finding by separate resolution that expenditures for administration and implementation of the IRCLHAProgram may exceed five percent (5%) of the IRCLHATF annual balance; however, at no time shall the funds expended for administration and implementation of the IRCLHAProgram exceed ten percent (10%) of the balance of the IRCLHATF. (Please see Exhibit D.) Expenditures of funds from the IRCLHATF shall be monitored on a regular basis for compliance with the expenditure limitation established by the Board of County Commissioners. Administration and implementation activities of the IRCLHAProgram which may be funded with SHIP funds shall be limited to those items associated with conducting the administration and implementation activities listed in Sections 2 through 8 following in this Plan. Examples of the items which may be funded include the following: a. staff salaries to conduct the administration and implementation activities b. purchase of office supplies and materials to produce materials and documents required for the program ce costs for publications and ads to promote the IRCLHAProgram do travel expenditures related to conducting and operating the IRCLHAProgram e. expenses for contract services rendered for information or administration and implementation activities provided by third parties for the IRCLHAProgram Estimated budgetary expenditures for conducting the administrative activities are identified below: Fiscal Year 1992 - 1993 1993 - 1994 Salaries $ 18,000 $ 18,000 Office Expenses 51500 51500 Travel 500 500 Advertising 11000 11000 Total $ 25,000 $ 25,000 Applications for participation in the IRCLHAProgram will be accepted on a year round basis. Advertisements and notices to promote the IRCLHAProgram shall include application information for the IRCLHAProgram, and production of the advertisements and notices shall constitute a part of the administrative application preparation and review processing activities. Funds from the IRCLHATF shall be allocated for encumbrance on a first-come, first-served basis as applicants are approved and qualified for participation in the program. All funds encumbered shall be expended within one (1) calendar year from the date of formal encumbrance. (Please see Section III.D.5.b. of this Plan.) No anticipated funds for future commencing fiscal years shall be encumbered. Furthermore, the encumbrance of funds in a manner which would not comply with the requirements of the IRCLHAProgram and the IRCLHAPlan is not permitted. 3. Application Processing Applications submitted by eligible sponsors or persons for participation in the IRCLHAProgram shall be reviewed Periods 2. Application Applications for participation in the IRCLHAProgram will be accepted on a year round basis. Advertisements and notices to promote the IRCLHAProgram shall include application information for the IRCLHAProgram, and production of the advertisements and notices shall constitute a part of the administrative application preparation and review processing activities. Funds from the IRCLHATF shall be allocated for encumbrance on a first-come, first-served basis as applicants are approved and qualified for participation in the program. All funds encumbered shall be expended within one (1) calendar year from the date of formal encumbrance. (Please see Section III.D.5.b. of this Plan.) No anticipated funds for future commencing fiscal years shall be encumbered. Furthermore, the encumbrance of funds in a manner which would not comply with the requirements of the IRCLHAProgram and the IRCLHAPlan is not permitted. 3. Application Processing Applications submitted by eligible sponsors or persons for participation in the IRCLHAProgram shall be reviewed by staff members of the Community Development Department or separate third party under contract to conduct application reviews for the IRCLHAProgram. A maximum of twenty ( 20 ) working days may be utilized for review of any submitted application; however, reviews may exceed this period pending the receipt of information or documentation required to complete the evaluation of the application. 4. IRCLHAProgram Applicant Criteria Eligible persons or sponsors applying for participation in the IRCLHAProgram shall comply with the following requirements: a. Income Level All applicants shall be classified as very low-, low-, or moderate -income persons; however, in cases where the applicant is an eligible sponsor but not an eligible person, the assisted housing unit must be occupied by persons classified as very low-, low or moderate -income persons. b. Employment Verification Applicants seeking assistance from the. IRCLHAProgram to purchase eligible housing units shall be eligible persons meeting one of the following employment criteria: i. Suitable documentation indicating current, continuous employment for a minimum of one (1) year in the same position or within the same business or firm; or ii. Suitable documentation indicating current employment (within twelve (12) months of an application submittal) as a seasonal farmworker, with a minimum of two (2) consecutive years as a seasonal farmworker, whereby the first period of seasonal employment shall have been for the full duration of the season, and the second period shall have been for a minimum of one-half (1) of the current season, if the eligible person(s) may be classified as a seasonal farmworker(s); or An eligible person(s) classified as a person(s) with special housing needs, excluding seasonal shall be exempt requirement for IRCLHAProgram. Asset Verification or migrant farmworkers, from any employment participation in the Total assets of eligible persons applying to purchase a housing unit under, or occupy a housing unit assisted by, the IRCLHAProgram shall not exceed forty-five thousand dollars ($45,000.00) or fifty percent (50%) of the value of the purchase/sale price of the housing unit, whichever is greater. Pensions or other similar public or private deferred compensation funds which may not be converted to be available as cash funds, with or without incurring a financial penalty for early withdrawal of such funds, shall be excluded from consideration as a financial asset. Mortgage/Rent Verification The amount of monthly housing expenses paid by eligible persons for owner occupied or rental housing units assisted by the IRCLHAProgram shall be considered affordable as defined in Rule 9I- 37.002, FAC. Credit Verification Eligible persons receiving assistance from the IRCLHAProgram shall maintain a valid, satisfactory credit rating for a minimum of one (1) year prior to receiving any application approval for participation in the IRCLHAProgram. Eligible persons utilizing assistance from the IRCLHAProgram to purchase a new or existing housing unit shall not have owned or held title to a housing unit anytime within the three (3) year period prior to receiving any application approval for participation in the IRCLHAProgram. 5. Application Review Applications shall be reviewed by Community Development Department staff or the third party entity identified by contract to conduct application review activities for compliance with the criteria listed in the previous section. Those applications not satisfying the review criteria shall be classified as disqualified. Applications satisfying the review criteria shall be forwarded to the IRCLHAProgram Review Committee (IRCLHAPRC) for final review and approval of the application. a. Disqualified applicants shall be informed of the areas causing denial of the submitted application and be encouraged to correct the reasons for denial if possible. Disqualified applicants may reapply for participation in the IRCLHAProgram; however, a minimum of thirty (30) working days following issuance of a denial notice must pass prior to submission of a new application. b. Applicants approved for participation in the IRCLHAProgram shall be issued a Notice of Commitment indicating that the applicant has qualified for participation in the IRCLHAProgram; this notice shall also indicate the award type and the amount of the award. The Notice of Commitment shall be valid for a maximum of sixty (60) working days. The applicant must obtain a committed contract for purchase or committed contract for rehabilitation and repair work to maintain the Notice of Commitment beyond the sixty (60) day maximum. Obtaining a committed contract for purchase or rehabilitation and repair work shall constitute formal encumbrance of the funds. The date of execution of the committed contract shall serve as the date of formal encumbrance as referenced in Section III.D.2. of this Plan. If a committed contract for purchase or rehabilitation is not obtained by the applicant prior to expiration of the Notice of Commitment, the applicant must recommence the application process; however, a minimum of thirty (30) working days following the expiration of the Notice of Commitment must pass prior to submission of a new application. 6. Transfer/Dispersal of Funds for Housing Units Prior to the actual transfer or dispersal of funds from the Indian River County Local Housing Assistance Trust Fund, the following activities and documentation shall be completed. a. Housing Unit Inspection/Certificate of Occupancy All eligible housing satisfactory approval for following methods: units shall receive occupancy via one of the i. For new unconstructed housing units: The funds awarded for construction of a new housing unit shall be transferred or dispersed to the financial institution providing the construction loan for the housing unit for inclusion in the construction guarantee pool. lie For existing or new constructed housing units: a satisfactory housing code inspection or Certificate of occupancy, as appropriate, shall be obtained prior to transfer or dispersal of the funds awarded via the IRCLHAProgram. lie For rehabilitated housing units: a satisfactory final inspection and satisfactory housing code inspection shall be obtained prior to transfer or dispersal of the funds awarded via the IRCLHAProgram. b. First Mortgage/Subordinated First Mortgage Documentation All documentation relating to the first mortgage and/or subordination of the first mortgage which serves as the eligible recipient's contractual commitment to comply with the requirements of the IRCLHAProgram shall be completed and the mortgage document(s) prepared for filing in the public record. Preparation of the mortgage document(s) shall comply with all Federal, State, and Local regulations. The mortgage documentation shall specify the IRCLHAProgram Strategy assisting in the provision of the housing unit, the amount of the funding award for the unit, the applicable interest rate for the funding award, the commencement and termination dates for the unit's required affordability classification timeframe and unit resale requirements as applicable. IRCLHAProgram Compliance Monitoring All housing units shall be monitored for compliance with the requirements of the IRCLHAProgram and Strategies as follows: All housing units assisted by the IRCLHAProgram a. Compliance Review Activities to the following All housing units assisted by the IRCLHAProgram shall be subject to the following monitoring w activities to determine compliance with the requirements of IRCLHAProgram and Strategies as appropriate: i. Property Tax Payment Verification Compliance verification with this requirement shall be conducted on an annual basis. (Please see Section III.A.7.a. of this Plan for further information.) ii. Homeowner/Property Owner Insurance Verification Compliance verification with this requirement shall be conducted on an annual basis. (Please see Section III.A.7.b. of this Plan for further information.) iii. Owner and Eligible Person Occupancy Verification Compliance verification with this requirement shall occur on a once -a -year basis as a minimum, however, this compliance verification activity may be conducted on a more frequent or staggered basis. (Please see Section III.A.2. of this Plan for further D nformation.) Compliance verification with this requirement shall be conducted on a once -a -year basis as a minimum; however, this compliance verification activity may be conducted on a more frequent or staggered basis. (Please see Section III.A.5. of this Plan for further information.) iv. Rental Rate Verification Compliance verification with this requirement shall be conducted on a once -a -year basis as a minimum; however, this compliance verification activity may be conducted on a more frequent or staggered basis. (Please see Section III.A.5. of this Plan for further information.) The owners of housing units found not in compliance with the required IRCLHAProgram and Strategy requirements shall be notified that the unit has been found "not in compliance" and if the non- compliance status is not corrected within twenty (20) working days, the housing unit may be subject to foreclosure under the subordinate mortgage compliance agreement at the discretion of the Board of County Commissioners based upon the b. Non-compliance Notification The owners of housing units found not in compliance with the required IRCLHAProgram and Strategy requirements shall be notified that the unit has been found "not in compliance" and if the non- compliance status is not corrected within twenty (20) working days, the housing unit may be subject to foreclosure under the subordinate mortgage compliance agreement at the discretion of the Board of County Commissioners based upon the a recommendation of the IRCLHAProgram Review Committee. For housing units found to be chronic or repeat non-compliance units, the IRCLHAProgram shall have the authority to foreclose upon the housing units and take possession of the units from the owner. Chronic or repeat non-compliance shall be considered more than two (2) non-compliance findings in one year, or more than three (3) non- compliance findings in two (2) years. Assisted Housing Unit Resale The resale of housing units assisted by the IRCLHAProgram will require coordination with Indian River County, and satisfaction of the first mortgage or subordinated first mortgage held by Indian River County. The resale of renter- and owner -occupied housing units assisted by the IRCLHAProgram shall be subject to a subsidy recapture provision substantially similar to that specified in Section 143(m) of the United States Internal Revenue Code of 1986. The amount of funds calculated by application of the recapture provision shall be paid by the selling household and redeposited into the Indian River County Local Housing Assistance Trust Fund for redistribution by the IRCLHAProgram. However, the initial transfer of title for the assisted housing unit between an eligible non-profit organization sponsor and the eligible person(s) acquiring the unit via a lease - purchase agreement shall not be considered the resale of the unit requiring repayment of the loan amount, interest amount and calculated recapture amount. The Satisfaction of Mortgage shall be executed upon payment of both the original loan/grant principal amount and its accrued interest as required by the corresponding IRCLHAProgram Assistance Strategy or Strategies, and the determined subsidy recapture amount. For owner -occupied housing units sold by the original eligible persons receiving IRCLHAProgram assistance selling the unit after a period of twenty (20) years, repayment of both the principal loan amount and the recapture amount shall be required, the interest amount accrued on the loan shall not be collected. For renter -occupied housing units which are offered for sale by the eligible sponsor receiving IRCLHAProgram assistance before termination of the 15 year affordability period, or that have remaining mortgages funded under the IRCLHAProgram, the seller must give a first right of refusal to eligible non-profit organizations for purchase at the current market value for continued occupancy by eligible recipients. 9. Data Development and Compilation The Community Development Department staff may collect and/or compile data to be utilized in analyzing the efficiency the IRCLHAProgram, analyzing the need for affordable housing in Indian River County, developing additional assistance strategies for the IRCLHAProgram, or for improving the IRCLHAProgram. 10. IRCLHAPlan Compliance Monitoring The IRCLHAProgram shall be conducted in compliance with the Indian River County Local Housing Assistance Plan (IRCLHAPlan) and the requirements of the State of Florida State Housing Initiatives Partnership (SHIP) Program and Rule 9I-37.005, Local Housing Assistance Plans, Florida Administrative Code (FAC). a. The Community Development Department staff shall monitor all activities conducted as a part of the IRCLHAProgram for compliance with the requirements of the IRCLHAPlan and Rule 9I-37 FAC. Upon determination that the IRCLHAProgram will be unable to comply with the requirements of the IRCLHAPlan or Rule 9I-37 FAC: i. The Community Development Department shall provide written notification of non-compliance to the Florida Housing Finance Agency within ten (10) working days of the non-compliance determination; and ii. Amendment proceedings to revise the IRCLHAPlan shall be commenced within twenty (20) working days of the non-compliance determination in order to reconcile the discrepancy between the requirements of the IRCLHAProgram and the IRCLHAPlan. b. The Community Development Department shall monitor expenditures of funds distributed from the State of Florida for the IRCLHAProgram to ensure that a minimum of fifty percent (50%) of the distributed state funds have been encumbered by the mid -point of each fiscal year, except for the 1992-1993 Fiscal Year. Upon determination that the IRCLHAProgram will be unable to comply with the funding encumbrance requirement: i. The Community Development Department shall provide written notification of non-compliance to the Florida Housing Finance Agency within ten (10) working days of the non-compliance determination; and ii. Amendment proceedings to revise the IRCLHAPlan shall be commenced within twenty (20) working days of the non-compliance determination in order to reconcile and correct the lack of encumbered funds by the IRCLHAProgram. c. The Community Development Department staff shall complete on an annual basis an Annual Operations Report analyzing and listing the activities and accomplishments of the IRCLHAProgram. The IRCLHAProgram Annual Operations Report (IRCLHAPAOR, AOR) shall conform to the following requirements: i. IRCLHAPAOR Preparation (a) The IRCLHAPAOR shall be compiled and drafted by Community Development Department staff prior to August 30th of each calendar year for the preceding fiscal year, (b) The draft AOR shall be made available for public inspection and comment during the month of September of each calendar year. Written comments received from the public shall be included in the final AOR; (c) The draft AOR shall be revised to include and reflect public comments provided and shall be presented for review and consideration by the Indian River County Board of County Commissioners prior to October 15th of each calendar year; (d) The Indian River County Board of County Commissioners shall review the proposed AOR and vote to transmit the proposed AOR to the Florida Housing Finance Agency (FHFA) for its compliance review; (e) The AOR shall be transmitted to the FHFA prior to November 10th of the calendar year for the FHFA to complete its compliance review for the AOR; (f) Within thirty (30) working days following receipt of the FHFA's review comments for the AOR, the Board of County Commissioners shall adopt the AOR as transmitted to the FHFA or as modified in response to the FHFA's comments; and (g) Within twenty-one (21) calendar days of adoption of the revised IRCLHAPlan, Community Development Department staff shall transmit two (2) certified copies of the revised and adopted IRCLHAPlan to the Florida Housing Finance Agency. ii. IRCLHAPAOR Information The AOR shall include the summary information required by Florida Statute Section 420.9075(7) and Rule 9I-37.016, Florida Administrative Code. Such information shall include, but not be limited to, the following: (a) The number of people served by income, age, family size, and race, as well as data regarding any special needs populations such as farmworkers, rural residents, and the elderly; (b) The number of units and the average cost of producing units under each program; (c) The average sales price of a single- family unit and the amount of rent charged for a rental unit based on unit size, (d) The number of mortgages made and the rate of default; (e) A description of the implementation of the affordable housing incentive plan and the resulting reduction in housing costs, (f) A concise description of the support services that are available to the residents of affordable housing provided by local programs; and (g) Such other data or affordable housing accomplishments considered significant by the Indian River County Board of County Commissioners. The administration and implementation activities associated with conducting the IRCLHAProgram may proceed at varied rates throughout each fiscal year. The estimated rate at which each of the activities may proceed throughout each fiscal year is indicated in the following chart: Month of Fiscal Year Activity 1 2 3 4 5 6 7 8 9 10 11 12 Adoption of LHAPlan* X Submittal to FHFA* Approval by FHFA* Application Solicitation Application Review Application Approval Expenditure of Funds Compliance Monitoring Fiscal Year Closeout (AOR) X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X * Activities to adopt and revise the IRCLHAPlan shall be commenced prior to the end of the Plan's effective duration period. For years whereby the IRCLHAPlan's duration period is not due to terminate, the plan may be revised at the discretion of the county and forwarded for review by the Florida Housing Finance Agency. IV. PLAN AMENDMENTS The Indian River County Local Housing Assistance Plan (IRCLHAPlan) shall be adopted and amended in conformance with the following guidelines: A. Authority The IRCLHAPlan may be adopted and amended only by ordinance of the Indian River County Board of County Commissioners. Be Timing At a minimum, the IRCLHAPlan must be amended, updated and adopted (as revised) every three years. However, the IRCLHAPlan may be amended or updated by the Indian River County Board of County Commissioners at any time. Furthermore, the IRCLHAPlan shall be amended and updated prior to expiration of the currently adopted IRCLHAPlan's listed date of duration. CO Procedures Adoption and amendment procedures for the IRCLHAPlan shall be as follows. 1. The IRCLHAPlan and,amendment proposals shall be compiled by the Community Development Department staff. 2. The IRCLHAPlan and compiled amendment proposals shall be presented to the Indian River County Affordable Housing Advisory Committee (IRCAHAC) for review and consideration. 3. The IRCAHAC shall review the IRCLHAPlan and amendment proposals and shall make a formal recommendation for consideration of the IRCLHAPlan and the amendment proposals to the Indian River County Board of County Commissioners. 4. The Indian River County Board of County Commissioners shall review the proposed IRCLHAPlan and amendment proposals and vote to transmit the proposed IRCLHAPLan and amendment proposals as approved by the Board, to the Florida Housing Finance Agency (FHFA) for its compliance review. 5. The IRCLHAPlan and amendment proposals shall be transmitted to the FHFA within ten (10) working days of the Board of County Commissioners' determination to transmit the IRCLHAPLan and amendment proposals to the FHFA for compliance review. 6. Within thirty (30) working days following receipt of the FHFA's review comments, the Board of County Commissioners shall review the comments provided by the FHFA and adopt the IRCLHAPlan and amendment proposals as transmitted to the FHFA or as modified in response to the FHFA's comments. 7. Within twenty-one (21) calendar revised IRCLHAPlan, Community staff shall transmit two (2) revised and adopted IRCLHAPlan Finance Agencys days of adoption of the Development Department certified copies of the to the Florida Housing V. CERTIFICATION Indian River County certifies that: • The availability of SHIP/IRCLHAProgram funds will be advertised pursuant to 9I -37.005(6)(a)(1). • A maximum award schedule to govern fund distribution at the local level has been, or will be, adopted. (See Exhibit "C" of this document.) • A process for selection of recipients for funds has been or will be, developed. (See Section IIID of this document.) • All SHIP funds will be expended in a manner which will insure that there will be no discrimination on the basis of race, creed, religion, color, age, sex, familial status, or national origin. • Recipients of funds will be required to contractually commit to program guidelines. (See Section III.D.6.b of this document.) • The Florida Housing Finance Agency will be notified promptly if the Local Government (or Interlocal Entity) will be unable to comply with the provisions of the Plan. • An amended Plan will be submitted if 50% of the distributed funds have not been encumbered by the mid -point of each fiscal year, except in State FY 1992-93. • The Plan conforms to the Housing Elements of the Local Governments' Comprehensive Plan, or that an amendment to the Housing Element will be initiated at the next available opportunity to insure conformance with the Plan. • The representations contained in the Plan are true and accurate as of the date of submission. This Plan, hereby known as the Indian River County Local Housing Assistance Plan (IRCLHAPlan), is a true and accurate representation of the guidelines, procedures and strategies to be utilized in the administration and implementation the Indian River County Local Housing Assistance Program (IRCLHAProgram). l Witness One: x S � MA4 2z000e Signi0ture Richard N. Bird 0� Chairman, Indian River L/ 2. t- 14 County Board of County (Printed Name) Commissioners Witness Two: 000 Signature AL w 14-1 TTe (Printed Name) \u\v\h\haplan55.trn VI. Exhibits IVERC OFFICE OF COUNTYATTORNEY Solc BOARD OF COUNTY COMMISSIONERS _ INDIAN RIVER COUNTY kk 0111 1840 25th Street, Vero Beach, Florida 32960 Telephone: (407) 567-8000, Ext. 424 Suncom: 2244424 April 30, 1993 CERTIFIED MAIL No. P 928 866 907 Ms. Anne Wilson Editor --Electronic Publishing MUNICIPAL CODE CORPORATION P. O. Box 2235 Tallahassee, FL 32316 Dear Ms. Wilson . CHARLES P. VITUNAC County Attorney WILLIAM O. COLLINS 11 Deputy County Attorney TERRENCE P. O•BRIEN Asst. County Attorney SHARON PHILLIPS BRENNAN Asst. County Attorney Please find enclosed Indian River County Ordinance No. 93-13 as adopted by the Board of County Commissioners on April 6, 19.93, with an effective date of May 6, 1993. The first attachment to this letter represents the ordinance as adopted by in the next Go Collins County II Attorney the County and as filed with the Secretary of State. the Indian The second attachment to this letter represents that same ordinance renumbered (i . e . , changing from Roman Numerals) to conform to the numbering pattern adopted by the Municipal Code Corporation for the Indian River County Code. Please include the ordinance as set out in the second attachment in the next Go Collins County II Attorney supplement of the Indian River County Code. Thank you for your assistance. Yours truly, WGC/nhm \cl c \let\munioode_doc Enclosure cc : Christopher Do Rison - Staff Planner Terrence P. O'Brien - Assistant County Attorney Liz Cloud, Chief, Bureau of Administrative Code, Florida Department of State William Deputy Go Collins County II Attorney WGC/nhm \cl c \let\munioode_doc Enclosure cc : Christopher Do Rison - Staff Planner Terrence P. O'Brien - Assistant County Attorney Liz Cloud, Chief, Bureau of Administrative Code, Florida Department of State