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HomeMy WebLinkAbout2003-026RESOLUTION NO 2003-026 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA APPROVING THE COUNTY'S LOCAL HOUSING ASSISTANCE PLAN FOR FY 2003-2004, 2004-2005, AND 2005-2006. WHEREAS, Chapter 420, Florida Statutes, describes the State Housing Initiative Partnership Program (SHIP), and states that the principal objective of that program is to increase the amount of affordable housing within the State of Florida; and WHEREAS, on April 6, 1993, Indian River County approved ordinance number 93-13, establishing the Local Housing Assistance Program; and WHEREAS, the current county's Local Housing Assistance plan expires on June 30, 2003; and WHEREAS, The county's current Local Housing Assistance Plan adequately addresses the county's affordable housing needs; and WHEREAS, on March 11, 2003, the Board of County Commissioners considered a proposed Indian River County Local Housing Assistance Plan for FY 2003-04, FY 2004-05, and FY 2005-06; NOW THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Indian River County, Florida that: Section 1. The above recitals are ratified in their entirety Section 2. The attached Indian River County Local Housing Assistance Plan for FY 2003-2004, 2004-2005, and 2005-2006 is hereby approved by the Board of County Commissioners. 1 q, RESOLUTION NO. 2003 - 026 Section 3. The Board of County Commissioners directs staff to submit two copies of the Indian River County Local Housing Assistance Plan to the Florida Housing Finance Corporation by certified mail. A minimum of one of the two copies shall bear the original signature of the Board of County Commissioners Chairman. Section 4. The county shall continue utilizing ten percent (10%) of the state SHIP allocation for administration of the SHIP Program. Section S. The county's maximum assistance from SHIP funds shall be thirty-five thousand dollars ($35,000.00) per unit; average assistance will be fifteen thousand dollars ($15,000.00) per unit. Section 6. The following table indicates the average and maximum SHIP funds allowable per unit for each strategy. STRATEGY AVERAGE LOAN AMOUNT ($) MAXIMUM LOAN AMOUNT ($) Impact Fee Grant 5,000.00 7,500.00 Impact Fee Loan 51000.00 7,500.00 Downpayment/Closing Cost Loan 12,000.00 15,000.00 Rehabilitation Loan 15,000.00 20,000.00 Rehabilitation Grant 15,000.00 20,000.00 Land Acquisition Loan 7,500.00 15,000.00 Land Bank -Market Purchase Loan 7,500.00 15,000.00 Land Bank -Tax Deed Purchase Loan 7,500.00 15,000.00 2 RESOLUTION NO. 2003 - 026 The foregoing resolution was offered by Commissioner Adams and seconded by Commissioner Neuberger , and being put to a vote, the vote was as follows: Chairman, Kenneth R. Macht Ave Vice Chairman, Caroline D. Ginn _Nay Commissioner, Fran B. Adams -Aye Commissioner, Thomas S. Lowther Aye Commissioner, Arthur R. Newberger Aye The Chairman thereupon declared the resolution duly passed and adopted this 11th day of,March 2003. f w , �f "'Board of County Commissioners `of India ver County r 'qt 1,4 Legal iA T Y: ; a enneth R. Macht, Chairman 2-7 q3 Dept. r777) i Idi nan Attest J6f.frr>ey .KT. Barton, Clerk APPROVED •AS TO',;FORM",AND LEGAL SUFFICIENCY"y: Williami'G. dollins, II Deputy County Attorney Aed pp Dat River Co. Admin. Legal KJ(� ; a Budget 2-7 q3 Dept. Risk Mgr. F:\Community Development \Users \VICKIE\HOUSING\HOUS ING. RES 3 b I INDIAN RIVER COUNTY LOCAL HOUSING ASSISTANCE PLAN GUIDELINES, PROCEDURES, AND STRATEGIES FOR THE INDIAN RIVER COUNTY LOCAL HOUSING ASSISTANCE PROGRAM FY 2003-2004 FY 2004-2005 and FY 2005-2006 �p 2�) CERTIFICATION TO FLORIDA HOUSING FINANCE CORPORATION Local Government: Indian River County 1. The local government will advertise the availability of SHIP funds pursuant to Florida Statutes. 2. All SHIP funds will be expended in a manner which will ensure that there will be no discrimination .on the basis of race, creed, color, age, sex, familial status, handicap, religion, marital status, or national origin. 3. A process for selection of recipients for funds has been developed. 4. The eligible municipality or county has developed a qualification system for applications for awards. 5. Recipients of funds will be required to contractually commit to program guidelines. 6. The Florida Housing Finance Corporation will be notified promptly if the local government (or interlocal entity) will be unable to comply with the provisions of the plan. 7. The Local Housing Assistance Plan shall provide for the expenditure of SHIP funds within 24 months following the end of the State fiscal year in which they are received. 8. The plan conforms to the Local Government Comprehensive Plan, or that an amendment to the Local Government Comprehensive Plan will be initiated at the next available opportunity to insure concurrence with the Local Housing Assistance Plan. 9. Amendments to the approved Local Housing Assistance Plan shall be provided to the Corporation within 21 days after adoption. 10. The trust fund shall be established with a qualified depository for all SHIP funds as well as money generated from activities such as interest earned on loans. 11. Amounts on deposit in the local. housing assistance trust fund shall be invested as permitted by law. 12. The local housing assistance trust fund shall be separately stated as a special revenue fund in the county's audited financial statements, copies of the audits will be forwarded to the Corporation as soon as available. 13. An interlocal entity shall have its local housing assistance trust fund separately audited for each state fiscal year, and the audit forwarded to the Corporation as soon as possible. 14. SHIP funds will not be pledged for debt service on bonds or as rent subsidies. 15. Developers receiving assistance from..both SHIP and the Low Income Housing Tax Credit (LIHTC) program shall comply with the income, affordability and other LIHTC program requirements, similarly, any units receiving assistance from employment programs, state job training programs, career intern programs). j. The full amount of student financial assistance either paid directly to the student or to the educational institution. This includes scholarships, grants, fellowships and any other kind of student financial assistance. It does not matter what the assistance is actually used for. k. Payments received after January 1, 1989, from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in the In Re: Agent Orange product liability litigation . M.D.L. No. 381 (E.D.N.Y). 1. Payment received under the Title V of the Older Americans Act (Green Thumb, Senior Aides, Older American Community Service Employment Program). 18. Grants or other amounts received specifically for: a. Medical expenses b. Set aside for use under a Plan to Attain Self Sufficiency (PASS) and excluded for purposes of Supplemental Security Income (SSI) eligibility, and . NOTE: A PASS permits a person with disabilities who is receiving Supplemental Social Security (SSI), and who is also receiving other income, to set aside a portion of the other income in order to achieve a work-related goal. c. Out-of-pocket expenses for participation in publicly assisted programs and only to allow participation in these programs. These expenses include special equipment, clothing, transportation, child care, etc. In general, income exclusions fall into the following categories and should = be counted as income. • Income of certain household members that should not be counted, including earned income of minors and income attributable to foster children or live-in aides; and • Amounts that are counted as assets rather than income, such as lump -sum lottery winnings. 2.4 WELFARE ASSISTANCE AS INCOME Welfare assistance such as AFDC, SSI, etc. are counted as income and public agencies should use the actual gross amount of Welfare Assistance received by the household. This amount should be annualized. IM RPORATED - IrvocMIa Compliance .duly 1 "s 2-8 TABLE OF CONTENTS Page I. INTRODUCTION 1 Purpose and Intent 1 Background 1 Public Participation 3 Plan Effective Date and Duration 3 Implementation Authorization 3 II. DEFINITIONS 4 III. THE INDIAN RIVER COUNTY LOCAL HOUSING ASSISTANCE PROGRAM (IRCLHAProgram) A. General Program Reguirements 1. Advertisement and Notice of Fund Availability 2. Housing Unit Occupancy 7 3. Income Classification Levels 8 4. Monetary Allocations 8 5. Housing Unit Sales/Purchase Price 9 6. Combined Assistance Strategy Awards for Housing Units 9 7. Insurance and Property Tax Requirements for 9 Assisted Housing Units 8. Non=discrimination Policy 10 9. Recycled/Repaid Indian River County Local 10 Housing Assistance Trust Fund (IRCLHATF) Funds 10. Support Services for Eligible Recipients 10 11. Indian River County Affordable Housing Partnership 11 PAGE B. Local Housing Assistance Program Strategies 11 1. Impact Fee/Capacity Charge Grants 11 2. Impact Fee/Capacity Charge Loans 16 3. Downpayment/Closing Cost/Principal Reduction Loans 20 4. Land Acquisition Loans 27 5. Rehabilitation or Emergency/Disaster 29 Repair Loans 6. Rehabilitation, Emergency, or Disaster 38 Repair Grants. 7. Land Bank - Market Purchase 43 8. Land Bank - Tax Deed Purchase 46 C. Estimated Unit Assistance.and Pricing for the IRCLRAProgram 48 D. IRCLHAProgram Administration/Implementation Activities 49 1. Program Expenditures 49 2. Application Periods 51 3. Application Processing 51 4. IRCLHAProgram Applicant Criteria 53 a. Income Level 53 b. Employment Verification 53 c. Asset Verification 54 d. Mortgage Verification 54 e. Credit Verification 54 f. Homebuyer Status 55 g. Home Inspection 55 h. Non -Profit Organization Selection Criteria 57 5. Application Review 57 6. Transfer/Dispersal of Funds for Housing Units 57 ii 14. SHIP funds will not be pledged for debt service on bonds or as rent subsidies.- 15. ubsidies: 15. Developers receiving assistance from -both SHIP and the Low Income Housing Tax Credit (LIHTC) program shall comply with the income, affordability and other LIHTC program requirements, similarly, any units receiving assistance from other federal programs shall comply with all Federal and SHIP program requirements. 16. Loans shall be provided for periods not exceeding 30 years, except for deferred payment loans or loans that extend beyond 30 years which continue to service eligible persons. 17. Rental units constructed or rehabilitated with SHIP funds shall be monitored at least annually for 15 years for compliance with tenant income requirements and affordability requirements or as required in Section 420.9075(3)(e). 18. The Plan meets the requirements of Section 420-907-9079 FS, and Rule Chapter 67-37, F.A.C., and how each of those requirements shall be met. 19. The provisions of Chapter 83-220, Laws of Florida have been implemented. Witness ief Elected,Official or Designee Commissioner Kenneth R. Macht, Chairman Board of County Commissioners Type Name and Title Witness BCC Approved: March 11, 2003 Date OR Attest:J.K. Barton Clerk.of Circuit Court (Seal) F:\Community Development\Users\VICKIE\HOUSING\LHAPDOCS\HAPLAN2003-2006.TRN.doc M. a. Housing Unit Inspection/Certificate of Occupancy b. Mortgage/Subordinated Mortgage Documentation C. Subordination of SHIP Mortgage Associated with Refinancing of the First Mortgage 7. IRCLHAProgram Compliance Monitoring a. Compliance Review Activities b. Non-compliance Notification 8. Assisted Housing Unit Resale 9. Data Development and Compilation 10. IRCLHAPlan Compliance Monitoring IV. AFFORDABLE HOUSING INCENTIVE STRATEGIES o Density Bonus o Small Lot Subdivision o Accessory Single -Family Dwelling Units o Multi -Family Dwelling Units in Conjunction with Commercial Development o Expedited Permit Processing o Housing Cost Impact Review Process o Surplus County Owned Land Inventory o Zero Lot Line Subdivisions o Establishing/Utilizing SHIP Program Affordable Housing Incentive Strategies Evaluation V. PLAN AMENDMENTS A. Authority B. Timing C. Procedures CERTIFICATION TO THE Florida Housing Finance Corporation EXHIBITS PAGE 58 A. Exhibit A: Fiscal Year 2003-2004 Housing Delivery Goals for SHIP Funds by Households, Units and Dollars B. Exhibit B: Fiscal Year 2004-2005 Housing Delivery iii 58 59 59 59 60 60 61 61 W 67 72 74 76 77 77 78 78 79 81 82 82 82 82 84 Goals for SHIP .Funds by Households, Units and Dollars C. Exhibit C: Fiscal Year 2005-2006 Housing Delivery Goals for SHIP funds by Households, Units and Dollars D. Assets that should beandshould-not be considered E. Income Inclusions and Exclusions ADOPTION RESOLUTION IV I. INTRODUCTION Purpose and Intent 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; pursuant to the requirements of the State of Florida State Housing Initiatives Partnership (SHIP) Program and Rule 67-37, 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. The Indian River County Local Housing Assistance Plan was approved by the Board of County Commissioners on April 6, 1993. In June, 1993, the Florida Housing Finance Corporation approved the county's plan and authorized the disbursement of funds. 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 2000 U.S. Census, approximately 610 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 maintain its Housing Trust Fund which will provide below-market interest rate financing and/or grants for land, acquisition, downpayment/closing cost loans, impact fee payment 01 loans, and rehabilitation loans for affordable housing units in the county. 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 principal and applicable interest into the trust; therefore ensuring a permanent source of financing." The intent of this policy is to maintain the financial mechanism which provides affordable housing for very low-, low-, and moderate -income households 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 Florida Legislature passed the William E. Sadowski Affordable Housing Act, a law which created a state funded program whereby participating communities 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 Rule 67-37 of Florida Administrative Code (FAC). The Administrative Rules listed in Rule 67-37 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 Housing Initiatives Partnership (SHIP) Program, the Indian River County Board of County Commissioners adopted Ordinance 93-13 which established the Indian River County E Local Housing Assistance Program (IRCLHAProgram) and created the Indian River County Local Housing Assistance Trust Fund (IRCLHATF). The Indian River County Local Housing Assistance Plan was. adopted on April 6, 1993. With adoption .of the plan, Indian River County became eligible to participate in the State Housing Initiatives Partnership (SHIP) Program. The funds from this program provide assistance to very low, low and moderate income households according to the strategies and requirements of the plan. The county has also adopted its Affordable Housing Incentive Plan which was later combined with the county's local.housing assistance plan. Public Participation The Indian River County Local Housing Assistance plan was prepared by the Indian River County Community Development Department staff and reviewed by the Indian River County affordable housing partnership group, and the Board of County Commissioners. All meetings of these groups were open to the public. Copies of the plan were made available to.interested individuals, and comments were received at the meetings. Plan Effective Date and Duration The Indian River County Local Housing Assistance Plan became effective upon the date of its adoption by the Board of County Commissioners of Indian River County and approval by the state review committee. The plan is effective for a period of three (3) years, encompassing the 2003-2004, 2004-2005, and 2005- 2006 fiscal years. Pursuant to the procedures established in this Plan, the Plan's 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 to implement the Indian River County Local Housing Assistance Program. 3 II. DEFINITIONS All definitions and terms provided in Rule 67-37.002, 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 67- 37.002, FAC, the following definitions shall apply: 1. Affordable Housing: Housing occupied by a household paying housing expenses which do not exceed 300 of the household's gross income. Where a first mortgage lender is satisfied that the household can afford mortgage payments that exceed the 30% benchmark, such housing may be considered affordable. Monthly housing cost for owner -occupied housing shall include mortgage principal and interest, taxes, and insurance. Monthly housing cost for renter -occupied housing shall include contract rent. However, it is not the intent to limit a household's ability to devote more than 30% of its income for housing. Programs and policies of this Plan with regard to affordable housing shall be limited to those households in the very low -(less than 500 of median income), low (51-80% of median) and the moderate- (81- 120% of median) income groups. 2. Annual Report (IRCLHAPAR, AR): The annual summary and review report analyzing and listing the accomplishments of the Indian River County Local Housing Assistance Program. 3. 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. 4. Draw(s): A partial payment of a larger, cumulative sum of funds. 5. Encumber Funds (Encumbrance of Funds): The process of committing available funds allocated through the Indian River County Local Housing Assistance Program Loan Review Committee to an eligible household or an eligible sponsor by approving and setting aside funds for the purchase or rehabilitation of a housing unit. 6. Housing Code Inspection: An inspection of an existing or rehabilitated housing unit by a Building Department Inspectors) or other authorized inspector (s), whereby compliance of the unit with current building and safety code standards is evaluated. V 7. 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. 8. Indian River County Local Housing Assistance Program (IRCLHAProgram): The program established by the Indian River County Board of County Commissioners which distributes 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. 9. Indian River County Local Housing Assistance Program Loan Review Committee (IRCLHAPLRC): 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 or his designee, a financial institution representative or his or her alternate, a J member of the Indian River County Board of County Commissioners or his or her designee, who shall serve as chairman of the Loan Review Committee. 10. 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. . 11. 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. 12. Low Income Household: A household with total annual gross income between 51% to 800 of the county's median income. 13. Moderate Income Household: A household with total annual gross income between 81% to 1200 of the county's median income. 14. 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 67 Housing Assistance Program. 15. 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. 16. Very Low Income Household: A household with total annual gross income up to 500 of the county's median income. 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, Rule 67-37 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 State Fiscal Year: i. The availability of SHIP funds will be advertised in a publication of general circulation at least 30 days prior to accepting applications. A Public Notice 9 Advertisement shall list the expected amount of funds to be available for the commencing fiscal year; and ii. 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. 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. Those. methods may also include educational efforts conducted by the Indian River County affordable housing partnership group. C. 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 (1000) 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. b. A minimum of thirty percent (300) of the funds must be utilized by households which are classified as 7 very low-income households. C. A minimum of thirty percent (30%) of the funds must be utilized 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. 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 gross income limits adjusted for family size which are published annually by the Florida Housing Finance Corporation. 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 (750) of each fiscal year's 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 (650) of each fiscal year 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. 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 the resale of the unit requiring repayment of the loan amount, and applicable interest amount. C. One hundred percent (1000) 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 U implementation activities as outlined for the assistance strategies identified, or for the provision of support services as identified in this Plan. d. All funds deposited into the local housing assistance trust fund. for each_.s.tate- fiscal year shall be encumbered within 12 months following the end of the fiscal year and shall be expended within 24 months following the end of the fiscal year. 5. Housing Unit Sales/Purchase Price In no case shall the sale/purchase price of new or existing eligible housing exceed 90 percent. of. theaverage area purchase price where the eligible housing is located. Per Florida. Housing Finance Corporation, 900 of the average purchase price for Indian River County is $255,930.00 for new homes and $177,366.00 for existing homes. Since the county is allowed to establish a lower limit, the maximum purchase price for both new homes and existing homes for Indian River County is hereby established as $154,696.00, corresponding to the FHA's maximum purchase price for the county. The sale/purchase price of a home includes all components that make up the home's total value including land value, site improvements, impact fees, and unit construction costs. 6. Combined Assistance Strategy Awards for Housing Units Eligible sponsors or persons may qualify to receive assistance under one or more of the IRCLHAProgram's Assistance Strategies. The following limitations and requirements apply to applicants receiving assistance under more than one Assistance Strategy: 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 the combined maximums allowed by appropriate strategies for appropriate income category. 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. 7. Insurance and .Property Tax Requirements for Assisted Housing Units a. All owners shall maintain valid Homeowners Insurance for their respective units. For owner financed mortgages, proof of such insurance shall be provided to the IRCLHAProgram on an annual basis; and b. All owners shall pay all -applicable property taxes f.or.their....respective housing units -according to the tax payment schedule. - 8. 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. 9. Recycled/Repaid Indian River County Local Housing Assistance Trust Fund (IRCLHATF) funds 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. 10. Support Services for Eligible Recipients The following support services are available to the SHIP Program recipients and to the Indian River County residents. The county in conjunction with financial institutions conducts homebuyer's educational workshop program for SHIP downpayment/closing cost assistance applicants Consumer Credit Counseling, through lenders and through the homebuyer's educational workshops, provides assistance to applicants The Indian River County Council on Aging provides various services including housing assistance to elderly and handicapped individuals The Housing Authority and Economic Opportunity Council provides housing assistance to qualified households County SHIP staff provides assistance to applicants for completing SHIP applications, resolving credit problems, referring applicants to appropriate financial institutions for acquiring first mortgages, and providing other assistance as needed. County SHIP staff in conjunction with local financial institutions, non-profit organizations, HUD staff, and others, conducts Housing Fairs in low income neighborhoods 10 11. Indian River County Affordable Housing Partnership Indian River County has formed an Affordable Housing Partnership Committee (Lenders Committee). The SHIP affordable housing partnership committee is composed of representatives from financial institutions_,..non-profit housing_, organizations, builders, contractors, real estate agents, and county staff. Because of its members, knowledge of and expertise with the housing industry, the SHIP affordable housing partnership committee has functioned as an advisory committee to both the Board of County Commissioners and staff. B. 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 to eligible recipients, whereby a portion of the initial cost encountered in acquiring or providing housing may be eliminated entirely or deferred. The second method of reducing the cost of housing is by the provision of deferred payment loans. Such loans result in reduced costs indefinitely until a time when the eligible recipients may then be able to afford the costs. By utilizing assistance strategies,, the IRCLHAProgram will encourage the provision of affordable housing. A total of .eight (8) 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 eight strategies, emphasis and priority for use will be placed upon the Impact Fee/capacity charge Grant, Impact Fee/capacity charge Loan, Downpayment/ Closing Cost Loan, Land Acquisition Loan, Rehabilitation Loan, and Rehabilitation grant 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 further described as follows: 11 1. Impact Fee/Capacity Charge Grants a. Description The IRCLHAProgram anticipates providing .grants for the payment of water and sewer capacity charges as well as 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 or capacity charge account corresponding to the eligible housing unit. Grants may be provided for connection of existing housing units to public utility services only for verylow and low income owner -occupied households. Impact fee/capacity charge grants may not be awarded in combination with downpayment/closing cost loan assistance. Grants provided to pay capacity charges to connect existing housing units to public utility services will eliminate a financial burden for an owner who may be unable to afford making a lump sum payment of the fees, or financing payment of the fees at current market rates. When an existing home is to be rehabilitated under the Rehabilitation grant Assistance Strategy, a combination impact fee grant and rehabilitation grant may be awarded. Impact.fee grants may be leveraged with private funds and all applicable state or federal programs. b. Eligibility i. Geographic Area Impact fee/capacity charge grants may be made anywhere in the County, including all municipalities located within the County. ii. Housing Unit Classification All housing units shall be owner -occupied residences. Mobile homes are not eligible. iii. Applicant Classification (a) Impact fee/capacity charge grants may be awarded to the following: 1. Very Low -Income Eligible Persons 2. Low Income Eligible Persons, only when the impact fee grant is a match for another housing program, such as the CDBG program, 12 HOME Investment Partnership Program (HOME) and other state or federal housing programs. (b) Impact fee/capacity charge grants shall result in eligible housing for the following eligible persons: 1. Very Low -Income Persons 2. Low -Income Persons c. Basic Award Terms i. Maximum Monetary Award The maximum monetary award for an impact fee/capacity charge grant shall not exceed $7,500.00 per unit or the total cost of applicable impact fees and capacity charges 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 or occupied by someone other than the original grant recipient 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 in full. Recaptured funds will be deposited in the county's affordable -housing trust fund. iii. Interest Rate There will be no interest rate for impact fee/capacity charge grants. iv. Affordable Classification Timeframe Housing units whose, owners receive funds from the IRCLHAProgram Impact Fee/Capacity Charge Grant Strategy Program shall be occupied for a period of not less than ten (10) years -by the same qualified eligible households who received the assistance. 13 V. Compliance Agreement and Security Instrument The county's impact fee/capacity charge grant shall be secured by a mortgage in favor of Indian River County. This mortgage shall serve as the eligible recipient's contractural commitment to comply with the requirements of the IRCLHAProgram. This mortgage will be satisfied after termination of the unit's affordable classification timeframe (10 years). d. Applicant Selection Criteria Applications are reviewed based on a first come first reviewed basis, and applicants are chosen per the following criteria as described in section III.D.4. of this plan. • Income Eligibility • Employment Verification • Asset Verification • Homebuyer Status • Credit Verification 911 Impact Fee Grant Summary Pane Purpose: To assist eligible persons with the cost ' of impact fees and/or capacity charges associated with connection of existing housing units to the county water and/or sewer system. Funding Source: State Housing Initiatives Partnership (SHIP) Eligible Persons: ► Very low income persons and ► Low income persons (only when the impact fee/capacity charge grant is a match for another state or federal:: housing program such as CDBG) Assistance: The county provides grants of up to $7,500 per unit for the cost of impact fees and/or capacity charges. The applicant must execute a grant agreement with the county indicating that the applicant will comply with the county's Local Housing Assistance Program's requirements. Criteria: Income Eligible Households: VLI (up to 50% of the county's median income), LI (51-800 of county's median income) Property Qualification: Owner -Occupied Debt Ratio: N/A Grant Period: 10 Years Interest Rate: Zero (0) Repayment Terms: No payment is required except in cases where assisted unit is sold prior to 10 years or if the assisted unit is occupied by someone other than the original grant recipient. W 2. Impact Fee/Capacity Charge Loans a. Description The IRCLHAProgram anticipates providing no -interest loans for the payment of water and sewer capacity charges as well as electric and traffic impact fees for housing units for qualified eligible persons or sponsors. Funds for impact fee/capacity charge loans shall be transferred directly to the appropriate impact fee or capacity charge account corresponding to the eligible housing unit. Loans may be provided for connection to public utility services for new construction or existing owner -occupied homes. For new homebuyers, such loans will reduce the financial cost, as the loans will be deferred and therefore eliminate the need .to include impact fees .and capacity charges in the overall, up front, financing costs for a housing unit. Such loans provided to pay capacity charges to connect existing housing units to public utility services will allow owners to defer the payment of such fees until the time the housing unit is sold. When an existing home is to be rehabilitated under the Rehabilitation Loan Assistance Strategy, a combination impact fee/capacity charge loan and rehabilitation loan may be awarded. Impact fee/capacity charge loans may be leveraged with private funds and all applicable state or federal programs. b. Eligibility i. Geographic Area Impact fee/capacity charge loans may be made anywhere in the County, including all municipalities located within the County. ii. Housing Unit Classification All housing units shall be owner -occupied residences. Mobile Homes are not eligible. iii. Applicant Classification (a) Impact fee/capacity charge loans may b.e awarded to the following: 1. Non-profit Organizations 2. Very Low -Income Eligible Persons 3. Low -Income Eligible Persons 4. Moderate -Income Eligible Persons (b) Impact fee/capacity charge 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 an impact fee/capacity charge loan shall not exceed $7,500.00 per unit or the total cost of applicable impact fees and capacity charges for the eligible housing unit, whichever is less.. ii. Repayment Terms/Timeframe Impact fee loans are deferred payment loans whereby repayment of the entire loan amount occurs at the time that the eligible housing unit is sold or if the assisted unit is occupied by someone other than the original loan recipient. Recaptured funds will.be deposited in the county's affordable housing trust fund. Eligible persons may pay back the entire amount of the loan at any time. iii. Interest Rate There will be no interest ,rate for impact fee/capacity charge loans. iv. Affordable Classification Timeframe Housing units whose owners receive funds from the IRCLHAP-rogram Impact Fee/Capacity Loan Strategy Program shall be occupied for the duration of the outstanding impact fee/capacity charge loan by the same qualified eligible households, obtaining the impact fee loan. Upon sale 'of the assisted housing unit by the owner, repayment of the outstanding loan amount shall be required, and the affordability timeframe requirement terminated. 17 V. Compliance Agreement and Security Instrument The county's Impact Fee/capacity charge Loan shall be secured by a mortgage in favor of Indian River County. This mortgage may be subordinated to construction and/or permanent mortgages applied to the same unit upon approval of the IRCLHAProgram Review Committee. This mortgage shall serve as the eligible recipient's contractual commitment to comply with the requirements of the IRCLHAProgram. d. Applicant Selection Criteria Applications are reviewed based on a first come first reviewed basis, and applicants are chosen per the following criteria as described in section III.D.4. of this plan. • Income Eligibility • Employment Verification • Asset Verification • Homebuyer Status • Credit Verification OW Impact Fee Loan Summary Page Purpose: To assist eligible persons with the cost of impact fees and/or capacity charges associated with new construction or connections of existing housing units to the county water and/or sewer system. Funding Source:o State Housing Initiatives Partnership (SHIP) Eligible Persons: ► Very low income persons and ► Low income persons ► Moderate income persons Assistance: The county provides up to $7,500 per unit 'loan for the cost of impact fees and/or capacity charges. The loan will be secured by a promissory note and a mortgage in favor of Indian River County. Criteria: Income Eligible Households: VLI (up to 50% of the county's median income), LI (51-800 of the county's median income), MI(81-120% of the county's median income) Property Qualification: Owner -Occupied Debt Ratio: N/A; Loan Period: Deferred payment loan Interest Rate: Zero (0) Repayment Terms: Repayment of the loan amount occurs upon resale of the unit or if the assisted unit is occupied by someone other than the original loan recipient. 0 a Downpayment/Closing Cost/Principal-Reduction Loans Description The IRCLHAProgram anticipates providing no interest deferred payment loans to eligible persons acquiring an eligible housing unit for downpayments, payment of closing costs, and/or principal reduction. For the purchase of either new or existing housing units, 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. Downpayment/closing cost loans shall. not be provided for the acquisition of housing,units requiring rehabilitation prior to.approval for occupancy by residents unless the rehabilitation loan is provided through SHIP funds in conjunction with the dowripayment/closing cost loan. As structured, the LHAProgram does not require an applicant to provide a minimum monetary contribution towards the downpayment or closing costs. This LHAProgram policy, however, does not exempt an applicant from a financial institution's minimum monetary contribution requirement, if applicable. For purchase of a house financed by the owner, the applicant, as part of the loan application process, will be required to pay for a credit report. Except as otherwise provided for herein, SHIP funds shall not be provided to any household where that household's projected monthly housing cost, including mortgage principal, interest, taxes, and insurance, will exceed 30% of the, household's gross income, or where the household's total debt will exceed 410 of the household's gross income. The monthly housing cost to gross income ratio may exceed 30% and the total debt to income ratio may exceed 41% if the first mortgage lender.is satisfied that the applicant household can afford mortgage payments that exceed the 30% frontend and 41% backend benchmarks. In such a cases, the first mortgage lender must inform the county in writing of its determination. This determination must be based on specific characteristics applicable to the applicant such as the applicant's debts being short term, the applicant having a good history of debt management, or other pertinent reasons. These requirements apply to all income categories. No SHIP funds will be provided to households for downpayment/closing costs when the household's housing cost to income ratio will be lower than 20%, unless a housing cost to income ratio lower than 20% is needed to 20 ensure that the household's total debt to income ratio will not exceed 410. In cases where a household's housing cost to income ratio is to be less than 20%, the financial institution providing the first mortgage.shall provide sufficient written proof to the county to justify that the additional downpayment is needed to ensure that the household's total debt to income ratio will not exceed 41%. For very low and low income applicants, the Loan Review Committee may reduce the housing cost to income ratio to less than 20% and increase the total debt to income ratio to more than 41% if circumstances warrant such a change. For the moderate income group only, SHIP downpayment/closing cost funds shall not .be provided to any household where that household's first mortgage loan to value ratio will fall below 900. Housing units which are.to be constructed and acquired by eligible persons, housing units constructed as new units or substantially rehabilitated within one (1) calendar year prior, to purchase, or existing housing units to be acquired with combined SHIP downpayment/closing cost and rehabilitation funds shall be classified as constructed, rehabilitated, or repaired units. The maximum term of a first mortgage shall not exceed 30 years. The maximum interest rate for the first mortgage shall not exceed the Federal National Mortgage Association (FNMA) or Federal Home Loan Mortgage Corp. (FHLMC) fixed rate 30 or 60 day delivery (published daily in the Wall Street Journal) rounded up to the nearest .1250. For SHIP downpayment/closing cost loans, the number of points which may be charged by the financial institution providing the first mortgage shall be as follows: o For conventional loans, no points shall be charged. o For FHA loans, a maximum of one (1) point may be paid from SHIP funds. o For "bond program" loans only, more than one (1) point may be paid from SHIP funds. For applicants in the very low and low income groups to be eligible to' receive SHIP funds for downpayment/ closing costs, the first mortgage loan must be a fixed rate loan. Adjustable or fixed rate loans are acceptable for the moderate income group only. No loan requiring a balloon payment is acceptable for any income group. Title insurance is required for all downpayment/closing cost loan transactions. 21 Downpayment/closing cost loans may be leveraged with loans from financial institutions, USDA rural development, Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME) and other applicable state or federal programs. b. Eligibility i. Geographic Area Downpayment/Closing cost loans may be made anywhere in the County, including all municipalities located within the County. ii.. Housing Unit Classification All housing units shall be owner -occupied residences. Mobile homes are not eligible. iii. Applicant Classification (a) Downpayment/Closing cost loans may be awarded to the following: 1. Very Low -Income Eligible Persons 2. Low -Income Eligible Persons 3. Moderate -Income Eligible Persons At the beginning of each FY, funds for downpayment/ closing cost assistance for the purchase of existing units will be allocated only to very low income households until such" time that staff determines that at least 300 of the funds to be utilized during the fiscal year will :be used by — very low income households. After that, funds for downpayment/closing cost assistance for the purchase of existing units may be made available to low and moderate income households. (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 22 c. Basic Award Terms i. Maximum Monetary Award The maximum' monetary award for a downpayment/ closing cost loan may -be up to, but shall not exceed, $7,500.00 for awards provided to eligible moderate -income persons, up to $10,000.00 for awards provided to eligible low income persons, or up to $15,000.00 for very low-income persons. ii. Repayment Terms/Timeframe Downpayment/Closing cost loans are deferred payment loans whereby repayment of the entire loan amount occurs at the time the eligible housing unit is sold or at the time the assisted unit is occupied by someone other than the original loan recipient. Eligible persons may pay back the entire amount of the loan at any time. Recaptured funds will be deposited in the county's affordable housing trust fund. iii. Interest Rate There will be no interest rate for downpayment/closing cost loans. iv. Affordable Classification Timeframe Housing units whose owners receive funds from the IRCLHAProgram Downpayment/Closing Cost Loan Strategy Program shall be occupied for the duration of the outstanding downpayment/closing cost loan by the same qualified eligible households who received the assistance. Upon sale of the assisted housing unit by the owner, repayment of the outstanding loan amount shall be required, and the affordability timeframe requirement terminated. V. Compliance Agreement and Security Instrument The county's'Downpayment/Closing Cost Loan shall be secured by a mortgage in favor of Indian River County. This mortgage may be subordinated to construction and/or permanent mortgages applied to the same unit upon approval of the IRCLHAProgram Review Committee. This mortgage shall serve as the 23 eligible recipient's contractual commitment to comply with the requirements of the IRCLHAProgram. d. Applicant Selection Criteria Applications are reviewed based on a first come first reviewed basis, and applicants are chosen per the following criteria as described in section III.D.4. of this plan. 0 Income Eligibility • Employment Verification • Asset Verification • Homebuyer Status 0 Credit Verification and/or approval from the financial institution that is granting the first mortgage 24 Downpayment/Closin.a Cost Loans Summary Paae Purpose:, To assist eligible persons with the downpayment and closing costs associated with the purchase of a home. Funding Source: State Housing- Initiatives Partnership (SHIP) Eligible Persons: ► Very low income persons ► Low income persons ON. Moderate income persons Assistance: The county provides up to: ► $15,000.00 for very low income households - 01. $10,000.00 for low income households ► $ 7,500.00 for moderate income households The loan will be secured by a promissory note and mortgage document in favor of Indian River County. Criteria: Income Eligible Households: VLI (up to 500 of the county's median income), LI(51-80% of the county's median income) MI (81-1200 of the county's median income) Property Qualification: Owner -Occupied Housing Cost to Income Ratio: 20-300 Total Debt to Income Ratio: not to exceed.41%._ 1s` Mortgage Loan to Value Ratio: Must be 900 or higher for MI group only Loan Period: Deferred payment loan Interest Rate: Zero (0) Repayment Terms: Repayment of the loan amount occurs upon resale of the unit or if the assisted unit is occupied by someone other than the original loan recipient. 25 Downpayment/Closing Cost Loan Process Flow Chart Applicant must attend a Home -Buyer's Educational Workshop M Applicant submits a completed application.to the county 1 Applicant must contact a bank for pre-qua-lification 1 The county verifies all income and asset information 1 The county will send an eligibility letter to the applicant N LA The applicant will take the eligibility letter to the bank n Bank will provide the commitment letter 1 Bank or applicant submits the commitment letter to the county l The county's LRC approves the loan l Loan Closing 26 4. Land Acquisition Loans 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 sof 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. b. Eligibility .. i. Geographic Area Land acquisition loans may be made 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. Mobile homes are not eligible. 27 iii. Applicant Classification (a) Land acquisition loans may be awarded to the following: 1. Non-profit Organizations for building affordable housing units for very low and low income persons (b) Land acquisition loans shall result in eligible housing for the following eligible persons: 1. Very Low -Income Persons 2. Low -Income Persons c. Basic Award Terms i. Maximum Monetary Award The maximum monetary award for a land acquisition loan shall not exceed $15,000.00 per lot (unit). ii. Repayment Terms/Timeframe Land acquisition loans.are deferred payment loans, whereby repayment of the entire loan amount is required at the time the parcel/lot and its corresponding eligible housing unit is sold or if the assisted unit is occupied by someone other than the original loan recipient. The original transfer of loan to a very low and low income household by the non-profit organization does not require repayment of the loan. Eligible persons may pay back the entire amount of the loan at any time.. Recaptured funds will be deposited in the county's affordable housing trust fund. iii. Interest Rate There will be no interest rate for land acquisition loans. iv. Affordable Classification Timeframe Loans to non-profit organizations for land acquisition must be transferred to eligible very low and low income households within the time frames allowed by the Local Housing Assistance Plan for expending SHIP funds for each fiscal year. Housing units whose owners receive funds from the IRCLHAProgram Land Acquisition Loan Strategy Program shall be occupied for the duration of the outstanding land acquisition loan by the same qualified eligible households who received the assistance. Upon sale of the assisted housing unit by the owner, repayment of the outstanding loan amount shall be required and the affordability timeframe requirement terminated. V. Compliance Agreement and Security Instrument The county's Land Acquisition Loan shall be secured by a mortgage in favor of Indian River County. This.mortgage may be subordinated to construction and/or permanent mortgages applied to -the same unit upon approval of the IRCLHAProgram Review Committee. This mortgage shall serve as the eligible recipient's contractual commitment to comply with the requirements of the IRCLHAProgram. d. Applicant Selection Criteria Applications are reviewed based on a first come first reviewed basis, and applicants are chosen per the following criteria as described in section III.D.4. of this plan. • Income Eligibility • Employment Verification • Asset Verification • Homebuyer Status • Credit' Verification 29 Rehabilitation or Emergency/Disaster Repair Loans a. Description The IRCLHAProgram anticipates providing no interest loans to eligible sponsors or households to fund all or a portion of the cost encountered in rehabilitating existing or acquired housing units eligible for occupancy by eligible persons. Rehabilitation loans shall be provided consistent with the requirements of the county's minimum standards for rehabilitation of residential properties. Rehabilitation loans will not be awarded for rehabilitation work previously completed. All rehabilitation work must be performed by licensed contractors. Rehabilitation loans may be awarded only for rehabilitation work activities that are identified in the county's designated inspector work write-up and include only items that are in poor condition and cannot be repaired. Rehabilitation loans may be awarded for the following rehabilitation work activities: Roof, including replacement of all rotten wood ► Plumbing work as needed ► Electrical work as needed ► Heating and air conditioning, including insulation and ceiling fans ► Replacement of doors and windows, if in poor condition ► Replacement of kitchen cabinets, if in poor condition ► Replacement of dry wall as needed ► Painting and carpeting only as part of larger rehabilitation work ► Replacement of rotted siding ► Replacement of bathroom tubs, lavatories, and sinks, as needed to bring the units to a safe and sanitary standard ► Replacement of kitchen sinks as needed ► Pressure wash, only to prepare for any allowed painting or repair ► Driveway/culvert (only if no driveway exists) ► Repairs to make a house accessible for a disabled member of a household ► Repair or replacement of septic tank, lift station, drainfield or private well as required by the public health department ► Termite repairs and treatment ► Other repairs as required by the building department to bring the house up to current minimum housing code ► Energy Gauge Rating and related expenses such as insulation ► Installation of window shutters associated with replacement of windows 30 Following rehabilitation work activities are not eligible for SHIP funding: ► Appliances ► Carpeting which is not part of larger rehabilitation work ► Tile floor or wall (except in bathrooms) ► Patio and porch addition ► Painting which is not part of larger rehabilitation work ► Building a garage . ► Landscaping, sodding, and similar work ► Any kind of cosmetic work ► Swimming pool and similar facilities Rehabilitation loan amounts shall be based upon a minimum of two written licensed contractor estimates for the exact same scope of work, identifying all necessary rehabilitation work and the' expected costs of the rehabilitation work. Contractors' estimates must be based on a work write-up prepared by the county designated inspector. The applicant shall choose one of the contractors to complete the identified rehabilitation work provided that the contractor cost estimate does not exceed 1100 of the estimate provided by. the county designated inspector. Once the contractor estimate is selected and the Rehabilitation Loan Amount including contingencies established, no additional funds may be awarded. The contractor estimate must identify all potential costs (including building permit fees) to be encountered in completing the rehabilitation work. Change orders must be approved by the county designated inspector and local housing assistance program staff. Additionally, the applicant will be required, as part of the application process, to pay for a credit report when required. The applicant or his contractor must obtain a building permit from the corresponding jurisdictional building department for all rehabilitation activities. The funds for rehabilitation loans of less than $5,000.00 shall be delivered upon completion of all rehabilitation work and a satisfactory final inspection by the corresponding jurisdictional Building Department and the county designated inspector that all required rehabilitation activities for the eligible housing unit are completed. Funds for rehabilitation loans of $5,000.00 or more may be delivered in individual draws, not to exceed three draws total, based upon the completion of individual components of the rehabilitation work and inspection by the corresponding jurisdictional building department and the county designated inspector. Each partial draw including the final draw of funds shall not be less than $5,000.00 and it shall be -delivered upon completion of 31 all rehabilitation work and a satisfactory final inspection by the corresponding jurisdictional Building Department and the county designated inspector that all required rehabilitation activities for the eligible housing unit are completed. No SHIP funds will be paid for any work completed prior -to the county's notice to proceed. Besides being used for general rehabilitation activities, funds may be provided for emergency/ disaster repairs. Emergency repairs eligible for SHIP funding are limited to weatherization activities. Weatherization means materials or measures and their installation which are used to improve the thermal efficiency of -a residence. For emergency repairs, only one written licensed contractor estimate.is needed. No credit verification is needed for emergency repairs. Rehabilitation or emergency/disaster repair loans can be leveraged with private funds, small city Community Development Block Grant (CDBG) funds, weatherization funds, and other state and federal programs as appropriate. b. Eligibility i. Geographic Area Rehabilitation loans may be made anywhere in the County, including all municipalities located within the County. ii. Housing Unit Classification Eligible housing units receiving IRCLHAProgram Rehabilitation Loans must be owner -occupied single- family or condominium residences. Mobile homes are not eligible. iii. Applicant Classification (a) Rehabilitation loans may be awarded to the following: 1. Very Low -Income Eligible Persons 2. Low -Income Eligible Persons 3. Moderate -Income Eligible Persons (b) Rehabilitation loans shall result in eligible housing for the following: 1. Very Low -Income Persons 2. Low -Income Persons 32 3. Moderate -Income Persons c. Basic Award Terms i. Maximum Monetary Award The maximum monetary award for a rehabilitation loan shall not exceed $20,000.00 per single-family or condominium housing unit. ii. Repayment Terms/Timeframe Rehabilitation loans are deferred payment loans, whereby repayment of the entire loan amount occurs at the time the eligible housing unit is sold or if the assisted unit is occupied by someone other than the original loan recipient. A loan recipient may pay back the entire amount of the loan at any time. Recaptured funds will be deposited in the county's affordable housing trust fund. iii. Interest Rate There will be no interest rate for rehabilitation loans. iv. Affordable Classification Timeframe Housing units whose owners receive funds from the IRCLHAProgram Rehabilitation Loan Strategy Program shall be occupied for the duration of the outstanding rehabilitation loan by the same qualified eligible.. households who: received the assistance in compliance with the following methods. Upon the sale of any assisted unit by the owner, repayment of the outstanding loan amount shall be required and the affordability timeframe requirement terminated. V., Compliance Agreement and Security Instrument The county's Rehabilitation Loan shall be secured by a mortgage in favor of Indian. River County. This mortgage may be subordinated to other rehabilitation, construction, and/or permanent mortgages applied to the same unit upon approval of the IRCLHAProgram Review Committee. This mortgage shall serve as the eligible recipient's contractual commitment to comply with the requirements of the IRCLHAProgram. 33 d. Applicant Selection Criteria Applications are reviewed based on a first come first reviewed basis, and applicants are chosen per the following criteria as described in section III.D.4. of this plan. • Income Eligibility • Employment Verification • Asset Verification • Homebuyer Status • Credit Verification 34 Rehabilitation Loan Summary Page Purpose• Funding Source: Eligible Persons: To fund all or a portion of the cost encountered in rehabilitating existing or acquired owner -occupied housing units. State Housing Initiatives Partnership (SHIP) ► Very low income persons ► Low income persons ► Moderate income persons Assistance: The county may provide up to $20,000 per unit in rehabilitation loans consistent with the county's minimum rehabilitation loan "standards and requirements. The applicant shall execute a loan agreement with the county indicating that the applicant will comply with the county's Local Housing Assistance Program's requirements. Criteria: Income Eligible Households: VLI (up to 50% of the county's median income), LI (51-800 of the county's median income) MI (81-120% of the county's median income) Property Qualification: Owner -Occupied Debt Ratio: N/A Loan Period: Interest Rate: Repayment Terms 35 Deferred payment loan Zero (0) Payment of the loan amount occurs upon resale of the unit or if the assisted unit is occupied by someone other' than the original loan recipient. Rehabilitation Loan or Grant Flow Chart Local Housing Assistance Program (LHAP) Applicant submits a completed LHAP application to the county. This must include a list of rehabilitation work1 that the applicant wants to be done If applicant is eligible, the county will notify the LHAP inspector Within 2 days of the notification, the LHAP inspector will call the applicant and schedule an inspection Within 7 days of the notification date, the LHAP Inspector will inspect the house The LHAP Inspector makes a determination if the house is structurally sound, if it can be rehabilitated and,, if so, what needs to be done The LHAP inspector prepares the work write-up specifications and cost estimates within 2 days after the house inspection The county sends the eligibility letter, work write-up, and list of contractors to the applicant 1 The applicant within 6 weeks will obtain two itemized/detailed proposals from two licensed contractors to undertake the needed rehabilitation work identified in the work write-up 1 The LHAP Inspector reviews the contractors' proposals within 2 days If the proposals are acceptable,, the applicant will sign the bid The county's LRC reviews and approves the loan or grant The county prepares mortgage documents and closes the loan or grant The county will send a notice to proceed to the contractor(s) and copy to applicants andLHAPinspector 36 Within 5 days, the LHAP Inspector conducts a pre -construction conference with the contractor on site Contractor pulls permits and completes the job per the proposal Inspector from appropriate jurisdictions building department inspect completed work Inspection finalized (county inspector approves the job and owner satisfaction letter obtained) 1 Contractor sends bill and contrac ♦ is final affidavit to the county The county pays the bill 37 6. Rehabilitation, Emergency, or Disaster Repair Grants a. Description The IRCLHAProgram anticipates providing rehabilitation grants to eligible, very low- income households, and limited low income households 'to fund all or a portion of the cost of rehabilitating existing single-family or condominium owner occupied housing units. Rehabilitation grants will not be awarded for rehabilitation work previously completed. All rehabilitation work must be performed by licensed contractors. Rehabilitation grants may be awarded if needed rehabilitation work activities include at least one of the following types of activities which are essential to make a house safe for habitation and/or to maintain the house's structural integrity. Rehabilitation grants may be awarded for rehabilitation of existing units occupied by very low income or low income households. Rehabilitation grants may not be awarded in combination with downpayment/closing cost loan assistance. Rehabilitation grants may be awarded only for rehabilitation work activities that are identified in the county's designated inspector work write-up. Rehabilitation grants may be awarded for the following rehabilitation work activities. ► Roof, including replacement of all rotten wood ► Plumbing work as needed ► Electrical work as needed ► Heating and air conditioning, including insulation and ceiling fans ► Replacement of dry wall damaged from a leak ► Replacement of floor and carpeting damaged from a leak ► Replacement of doors and windows, if in poor condition ► Installation of window shutters associated with replacement of windows ► Replacement of rotted siding ► Replacement of bathroom tubs, lavatories, and sinks, as needed to bring the units to a safe and sanitary standard ► Repairs to make a house accessible for a disabled member of a household ► Repair or replacement of septic tank, lift station, drainfield or private well as required by the public health department ► Termite repairs and treatment ► Other repairs as required by the building department to bring the house up to current minimum housing code ► Rehabilitation work within any future target areas established by the Board of County Commissioners for concentrated housing and neighborhood improvement activities ► Energy Gauge Rating and related expenses such as insulation Rehabilitation grant amounts shall be based upon a minimum of two written licensed contractor estimates for the exact same scope of work, identifying all necessary rehabilitation work and the expected costs of the rehabilitation work. Contractors' estimates must be based on a work write-up -prepared by the county designated inspector. The applicant, shall choose the contractor(s) with the lower estimate to complete the identified rehabilitation work. Once the contractor estimate is selected and the Rehabilitation Grant Amount including contingencies established, no additional funds may be awarded. The contractor estimate must identify all potential costs (including building permit fees) to be encountered in completing the rehabilitation work. Change orders must be approved by the county designated inspector and local housing assistance program staff. The applicant or his contractor must obtain a building permit from the corresponding jurisdictional building department for all rehabilitation activities. The funds for rehabilitation grants of less than $5,000.00 shall be delivered upon completion of all rehabilitation work and a satisfactory final inspection by the corresponding jurisdictional Building Department and the county designated inspector that all required rehabilitation activities for the eligible housing unit are completed. Funds for rehabilitation grants of.$5,000.00 or more may be delivered in individual draws, not to exceed three draws total, based upon the completion of individual components of the rehabilitation work and inspection by the corresponding jurisdictional building department and the county designated inspector. Each partial draw including the final draw of funds shall not be less than $5,000.00 and it shall be delivered upon completion of all rehabilitation work and a satisfactory final inspection by the corresponding jurisdictional Building Department and the county designated inspector that all required rehabilitation activities for the eligible housing unit are completed. No SHIP funds will be paid for any work completed prior to issuance of the county notice to proceed. Besides being used for general rehabilitation activities, funds may be provided for emergency repairs or disaster associated repairs. Emergency repairs eligible for SHIP funding are limited to weatherization activities. Weatherization means materials or measures and their installation which are used to improve the thermal efficiency of a residence. For emergency repairs, only one written -licensed contractor estimate is needed. SHIP 39 funds may be provided for disaster associated repairs with only one written licensed contractor estimate and expedited approval process. Rehabilitation/emergency/disaster repair grants may be leveraged with private funds, small city Community Development Block Grant (CDBG) funds, weatherization funds, HUD transitional housing funds, and other state and federal programs as appropriate. b. Eligibility i. Geographic Area. Rehabilitation grants may be made anywhere in the County, including all municipalities located within the County. ii. Housing Unit Classification Eligible housing units receiving IRCLHAProgram Rehabilitation Grants must be owner -occupied single-family or condominium residences. iii. Applicant Classification (a) Rehabilitation grants may be awarded to the following: 1. Very Low -Income Eligible Persons 2. Low -Income Eligible Persons only when the rehabilitation grant is a match for another housing program, such as the CDBG program,. HOME . Investment Partnership Program (HOME), or other state or federal housing program. (b) Rehabilitation grants shall result in eligible housing for the following: 1. Very Low -Income Persons 2. Low -Income Persons c. Basic Award Terms i. Maximum Monetary Award The maximum monetary award for a rehabilitation grant shall not exceed $20,000.00 per each eligible single-family or condominium housing unit. .N ii. Repayment Terms/Timeframe The repayment of funds awarded as a rehabilitation grant is not required, except in cases where the assisted housing unit is sold prior to termination of the unit's affordable classification timeframe (10 years) or if the assisted unit is occupied by someone other than the original grant recipient. In cases where the unit is sold, the entire original grant amount must be paid back at the time of resale of the unit. Recaptured funds will be deposited in the county's affordable housing trust fund. iii. Interest Rate There will be no interest rate for rehabilitation grants iv. Affordable Classification Timeframe Housing units whose owners receive funds from the IRCLHAProgram Rehabilitation Grant Strategy Program shall be occupied for a period of not less than ten .years (10) years by the same qualified eligible household who received the assistance. V. Compliance Agreement and Security Instrument The county's.rehabilitation grant shall be secured by a mortgage in favor of Indian River County. This mortgage shall serve as the eligible recipient's contractural commitment to comply with the requirements of the IRCLHAProgram. This mortgage will be satisfied after termination of the unit's affordable classification timeframe (10 years) d. Applicant Selection Criteria Applications are reviewed based on a first come first reviewed basis, and applicants are chosen per the following criteria as described in section III.D.4. of this plan. • Income Eligibility • Employment Verification • Asset Verification. • Homebuyer Status • Credit Verification 41 Rehabilitation Grant Summary Page Purpose: To fund all or a portion of the cost encountered in rehabilitating existing or acquired owner -occupied housing units. Funding Source: State Housing Initiatives Partnership (SHIP) Eligible Persons: ► Very Low Income ► Low income if it is a match for another state or federal housing grant Assistance: The county may provide.up to $20,000 per unit in rehabilitation grants. The applicant shall execute a grant agreement withy the county indicating that applicant will comply with the county's Local Housing Assistance Program's requirements. Criteria: Income Eligible Households: VLI (up to 50% of the county's median income), LI (51 to 80% of the county's median income) Property Qualification: Owner -Occupied Debt Ratio: N/A Loan Period: 10 years Interest Rate: Zero (0) Repayment Terms: No payment is required except in cases where assisted unit is sold prior to 10 years, or if the assisted unit is occupied by someone other than the original grant recipient. Gia 7. 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 unencumbered 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. b. Eligibility i. Geographic Area Parcels acquired through land bank acquisitions for the development of housing units may be located anywhere in the County, including all municipalities located within the County. 43 ii. Housing Unit Classification All housing units resulting from the IRCLHAProgram Land Bank Market Purchase Acquisition Strategy shall be owner -occupied single-family residences. Mobile homes are not eligible. iii. Applicant Classification (a) Land bank acquisitions may be awarded to the following: 1. Non-profit Organizations for building affordable housing units for very low and low income persons. (b) Land bank acquisitions shall .result in eligible housing for the following eligible persons: 1. Very Low -Income Persons 2. Low -Income Persons c. Basic Award Terms i. Maximum Monetary Award. The maximum monetary award for a land bank acquisition expenditure shall not exceed $15,000.00 per each buildable lot. The market purchase strategy may be utilized only as a strategy of "last resort". 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 entire loan amount (the value of the property) occurs at the time the parcel or lot and its corresponding eligible housing unit is sold of if the assisted unit is occupied by someone other than the original recipient. The original transfer of loan to very low and low income households by the non-profit organization does not require repayment of the loan. Eligible persons may pay back the entire amount of the loan at any time. Recaptured funds will be deposited in the county's affordable housing trust fund. ME iii. Interest Rate There will be a no interest rate for land bank loans. iv. Affordable Classification Timeframe Loans to non-profit organizations for land bank must be transferred to very low and low income households within the timeframe allowed by the Local Housing Assistance Plan for expending SHIP fund for each fiscal year. Housing units whose owners receive funds from the IRCLHAProgram Land Bank Market Purchase Strategy Program shall be occupied for the duration of the outstanding land bank acquisition loan by the same qualified eligible households who received the assistance. Upon sale of the assisted housing unit by the owner, repayment of the outstanding land bank loan amount shall be required and the affordability timeframe requirement terminated. V. Compliance Agreement and Security Instrument The county's Land Bank Market Purchase Loan shall be secured by a mortgage in favor of Indian River County. This mortgage may be subordinated to construction and/or permanent mortgages applied to the same unit upon approval of the IRCLHAProgram Review Committee. This mortgage shall serve as the eligible recipient's contractual commitment to comply with the requirements of the IRCLHAProgram. d. Applicant Selection Criteria Applications are reviewed based on a first come first reviewed basis, and applicants are chosen per the following criteria as described in section III.D.4. of this plan. • Income Eligibility • Employment Verification • Asset Verification • Homebuyer Status • Credit Verification 45 8. 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 unencumbered 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. b. Eligibility i. Geographic Area Parcels acquired through land bank acquisitions for the development of housing units may be located anywhere in the County, including all municipalities located within the County. W. 0 ii. Housing Unit Classification All housing units resulting from the IRCLHAProgram Land Bank Acquisition Strategy shall be owner - occupied single-family residences. Mobile homes are not eligible. iii. Applicant Classification (a) Land bank -acquisitions may be awarded to the following 1. Non-profit Organizations (b) Land bank acquisitions shall result in eligible housing for the following eligible persons: 1. Very Low -Income Persons 2. Low -Income Persons c. Basic Award Terms i. Maximum Monetary Award The maximum monetary award for a land bank acquisition expenditure shall not exceed $15,000.00 per each buildable lot. The tax deed purchase strategy may be utilized only as a strategy of "last resort". 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 entire loan amount (the value of the property) occurs at the time the parcel or lot and its corresponding eligible housing unit is sold or if the assisted unit is occupied by someone other than the original recipient. Eligible persons may pay back the entire amount of the loan at any time. Recaptured funds will be deposited in the county's affordable housing trust fund. iii. Interest Rate There will be a no interest rate for land bank loans. iv. Affordable Classification Timeframe Housing units whose owners receive funds from the IRCLHAProgram Land Bank Acquisition Strategy 47 Program shall be occupied for the duration of the outstanding land bank acquisition loan by the same qualified eligible households who received the assistance. Upon sale of the assisted housing unit by the owner, repayment of the outstanding land bank loan amount shall be required and the affordability timeframe requirement terminated. V. Compliance Agreement and Security Instrument The county's Land Bank Acquisition Tax Deed Purchase Loan shall be secured by a mortgage in favor of Indian River County. This mortgage may be subordinated to construction and/or permanent mortgages applied to the same unit upon approval of the IRCLHAProgram Review Committee. This mortgage shall serve as the eligible recipient's contractual commitment to comply with the requirements of the IRCLHAProgram. d. Applicant Selection Criteria Applications are reviewed based on a first come first reviewed basis,. and applicants are chosen per the following criteria as described in section III.D.4. of this plan. • Income Eligibility • Employment Verification • Asset Verification • Homebuyer Status • Credit Verification 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. Exhibits "A", "B" and "C", respectively list the Housing Delivery Goals for funds provided by the SHIP Program for FY 2003-2004, FY 2004-2005, and FY 2005-2006. The estimates listed in Exhibits "A", "B",and "C" shall not be considered binding requirements to be satisfied by the IRCLHAProgram. The estimates shall serve as references in conducting the IRCLHAProgram, and may be utilized in comparison to completed assistance activities of the IRCLHAProgram. D. IRCLHAProgram Administration/Implementation Activities 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 local distribution to 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 local distribution for that fiscal year. Besides the state annual allocation, the SHIP program trust fund receives other income from sources such as loans that are paid back and interest earned on the funds deposited into the affordable housing trust fund. These funds are referred to as program income. According to state rules, five percent (5%) of the program funds may be used for administration expenditures. 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 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 C. costs for publications and ads to promote the IRCLHAProgram d. 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 f. studies conducted by the local government or by consultants selected by the local government to provide data on affordable housing need and demand in the county. Estimated budgetary expenditures for conducting the administrative activities are identified below: Item Salaries and Fringe Benefits Office Expenses Travel Advertising Total Item Salaries and Fringe Benefits Office Expenses Travel Advertising Total Item Salaries and Fringe Benefits Office Expenses Travel Advertising Total 50 Fiscal Year 2003-20.04 $80,800.00 20,000.00 500.00 1,000.00 $102,300.00 Fiscal Year 2004-2005 $80,800.00 20,000.00 500.00 1,000.00 $102,300.00 Fiscal Year 2005-200.6 $80,800.00 20,000.00 500.00 1,000.00 $102,300.00 2. 3. a Application Periods Applications for participation in the IRCLHAProgram will be accepted per timeframes indicated in annual advertisement. 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 application complete, first application served basis as applicants are approved and qualified for participation in the program. Furthermore, the encumbrance,of funds in a manner which would not comply with the requirements , of the IRCLHAProgram and the IRCLHAPlan is not permitted. 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 ninety (90) 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. Applications will be processed based on first application completed, first application reviewed by the county loan review committee. Following is a general application process for downpayment/closing cost, impact fees, and land acquisition loans. At the application acceptance period, each applicant receives an application number which is given to him by the IRCLHAPprogram staff in consecutive order. At the end of the application acceptance period, staff will conduct application reviews based on the first application submitted first application to be reviewed. For incomplete applications, staff will send the applicant a letter letting him or her know what is needed to complete the application. For complete applications, staff will through a third party verify the household's income and assets and then send an eligibility (commitment) letter to the applicant, indicating the household's information and informing him that a specific amount of the funds is reserved for him for 90 days. The eligibility letter identifies what is needed for an application to be ready for Loan Review 51 Committee review. The completed applications will then be submitted to IRCLHAProgram Loan Review Committee (LRC)_ based on first application completed, first application submitted. After Loan Review Committee approval, staff will send a Loan Review Committee approval letter to. the applicant and notify him that the loan/grant must be closed within 90 days. The Loan Review Committee approval letter specifies steps and documents needed prior to scheduling a loan closing. Mortgage document and promissory notes are then prepared, and a closing is scheduled. At the closing, the applicant signs all appropriate documents and then funds are expended as needed. b. Following is a general application process for rehabilitation loans and grants.., At the application acceptance period, each applicant receives an application number which is given to him by the IRCLHAPprogram staff in consecutive order. At the end of the application acceptance period, staff will conduct application reviews based on the first application submitted first application to be reviewed. For incomplete applications, staff will send the applicant a letter letting him or her know what is needed to complete the application. For complete applications, staff will through a third party verify the household's income and assets. Staff then contacts the applicant to schedule an inspection with the LHAP inspector. The LHAP inspector then prepares the work write-up, which will then be sent to the applicant along with the eligibility letter, indicating the household's information and informing him of a specific amount of the.funds is reserved for him for 45 days. The eligibility letter identifies what is needed for an application to be ready for Loan Review Committee review. Once the bids are submitted, the LHAP inspector reviews them. The applicant is then notified and comes in to sign the lower bid and then send an eligibility (commitment) letter to the applicant. The completed applications will then be submitted to the IRCLHAProgram Loan Review Committee (LRC) based on first application completed, first application submitted. After Loan Review Committee approval staff will send a Loan Review Committee approval letter to the applicant and notify them of their approval amount and that staff will contact them to schedule a closing date and time. 52 M Mortgage document and promissory notes are then prepared, and a closing is scheduled. At the closing, the applicant signs all appropriate documents. Staff sends a notice to proceed to the contractor. Contractor pulls building permits and completes the work. Appropriate jurisdiction's building department inspector inspects the completed work. Contractor sends the final bill to the county. Staff requests a check that will be sent directly to the contractor. IRCLHAProgram Applicant Criteria Eligible persons or sponsors applying for participation in the IRCLHAProgram shall comply with the following requirements: a. Income Level All households shall be classified as very low-, low-, or moderate -income households. Household income includes gross annual income of every member of the household 18 years and older. In cases where the applicant is an eligible sponsor but not an eligible person, the assisted housing unit must be occupied by eligible persons classified as very low-, or low-income persons. Income inclusion and exclusions will be based on guidelines provided by the Florida Housing Finance Corporation (Exhibit E) . 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; 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 (1/2) of the current season, if the eligible person(s) may be classified as a seasonal farmworker(s); or iii. An eligible person(s) classified as a person(s) with special housing needs, excluding seasonal or 53 c. now e. migrant farmworkers, shall be exempt from any employment requirement for participation in the IRCLHAProgram. Asset Verification Total assets (cash or non-cash items that can be converted to cash) of eligible persons applying to purchase a housing unit under, or occupy a housing unit assisted by, the IRCLHAProgram shall not exceed ten thousand dollars ($10,000.00). Assets to be considered will be determined based on guidelines provided by the Florida Housing Finance Corporation (a copy attached as exhibit D). Mortgage Verification The amount of monthly housing expenses paid by eligible persons for owner occupied housing units assisted by the IRCLHAProgram shall be considered affordable as defined in Rule 67-37.002, FAC. Credit Verification 1. Credit Requirement for Downpayment/Closing Costs Loans Eligible persons receiving assistance from the IRCLHAProgram shall maintain a valid, satisfactory credit rating for a minimum of one (1) year prior to receiving approval for any IRCLHAProgram application. For applicants applying for both SHIP funds and a loan from a financial institution, the applicable financial institution shall determine whether each applicant's credit is satisfactory based upon the applicable financial institution.'s credit standards. For owner financing loans, county staff will assess each applicant's credit based upon the information provided in a credit report from one of the three national credit reporting agencies. An applicant will be deemed to have satisfactory credit if the applicable credit report shows that, in the previous 12 months, the applicant had: - No more than (4) 30 day late payments - No more than (1) 60 day late payment - No 90 day late payments - No more than 2 collections - No Collection or combination of collections more than $500.00 54 Judgment liens for medical expenses may be acceptable if a repayment plan is established and payments have been made for at least the previous 12 months. Regardless of an applicant's credit history for the previous 12 months, an applicant's,credit will NOT be considered satisfactory if the applicant's credit history shows: - Any charge offs that were not subsequently paid or discharged in a bankruptcy - Active judgments against the applicant - Repossessions with a remaining balance payable by the applicant - Bankruptcies that have not been fully discharged for two years with no new negative credit history 2. Credit Requirement. for Rehabilitation and Impact Fee Loans Applicants for rehabilitation and impact fee loans will be deemed to have satisfactory credit if the applicable credit report shows that there is no active charge off or judgement against the applicant. For rehabilitation loans or grants to very low and low income households in the Gifford Front Porch Community or to low or very low income households using SHIP funds as match for CDBG funds, Residential Construction Mitigation Program (RCMP) funds, or other state and- federal rehabilitation funding, no credit requirements shall apply. 3. Credit Requirements for Rehabilitation and Impact Fee Grants No credit requirements shall apply to rehabilitation or impact fee/capacity charge grants. f. Homebuyer Status 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. g. Home Inspection For applicants applying for both SHIP funds and a 55 loan from a financial institution, the applicable financial institution shall, based on its appraisal report and/or internal policy, determine what type of home inspection is needed. The financial institution shall arrange for the inspections through their established procedures and shall be responsible for all approval contingencies. For owner financed loans, the county shall require a termite inspection for all existing housing units to be purchased with SHIP funds. The county shall also require the following inspections for all existing units five years or older to be purchased with SHIP funds: - Roof - Plumbing system Electrical system Heating and Air conditioning system All county required inspections must be performed by public service licensed inspectors; registered or certified residential, building, or general contractors; or licensed trade contractors as appropriate. Home inspection reports requested by the county shall be reviewed by thecounty's building officials to determine the condition of the home. Based on the results of the home inspection review by the bank or the county, one of the following three actions will be taken: If the home is in good condition, the downpayment/closing cost loan application will be submitted to the loan review committee for approval; If the home needs some rehabilitation work and if the applicant is eligible to receive a combination downpayment/closing cost and rehabilitation loan, a combined downpayment/ closing cost,and rehabilitation application will be submitted to the loan review committee for approval; or If the home is in excessive disrepair and cannot be fixed, the loan application will not be.approved. Home inspection charges are considered to be eligible downpayment/closing cost expenses and payable through SHIP funds. In cases where the county requests a home inspection, but due to the condition of the home a downpayment/closing cost loan cannot be approved, the cost of the home inspection will be paid through the administration 56 portion of SHIP funds. h. Non -Profit Organization Selection.Criteria Non-profit organizations eligible to participate in the local housing assistance program shall be selected according to the following criteria. • Ability to proceed with the construction or rehabilitation activities and receive a certificate of occupancy within one year of the closing transaction date • Number of units provided per year • Ability to provide maximum leverage against SHIP funds • The length of time the organization has been in Indian River County • Experience in the development of affordable housing • The organization must be a non-profit entity with current 501(c)(3) tax exempt status 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 submitted to the IRCLHAProgram Loan 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 and then reapply. b. Applicants approved for participation in the IRCLHAProgram shall be issued a Notice of Commitment (eligibility letter) 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 ninety (90) working days. The applicant must obtain a written extension letter to maintain the Notice of Commitment beyond the ninety (90) day maximum. 57 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 units shall receive satisfactory approval for occupancy via one of the following methods: i. For new unconstructed housing units: The funds awarded for construction of a new housing unit may be transferred or dispersed to the financial institution providing the construction loan for the housing unit for inclusion in the construction guarantee pool. ii. For existing or new constructed housing units: the financial institution providing the first mortgage must be satisfied that there is not any recorded building code violation prior to transfer or dispersal of the funds awarded via the IRCLHAProgram. _ iii. For rehabilitated housing units: a satisfactory final building code inspection shall be obtained prior. to transfer or dispersal of the funds awarded via the IRCLHAProgram. b. Mortgage/Subordinated Mortgage Documentation All documentation relating to the mortgage and/or subordination of the 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 commencement and termination dates for the unit's required affordability classification timeframe and unit resale requirements as applicable. In cases where the SHIP loan/grant recipient passes away, if the recipient's child (beneficiary) who -4. inherits the assisted housing unit is qualified as SHIP income eligible (very low, low, or moderate income) the mortgage and promissory note may transfer to that child (beneficiary) and no payment is due at the time. c. Subordination of SHIP Mortgage Associated With Refinancing of the First Mortgage No existing ship mortgage will be subordinated to a refinanced first mortgage unless the following requirements are met: Requirements for a Refinanced Mortgage Maximum Maximum Interest Maximum First Maximum Points Term Rate Allowed Mortgage Amount Allowed Allowed Allowed 30 Years Must be a fixed Not to exceed the For downpayment rate loan, and original first and closing cost interest rate mortgage amount. Any. loans up to 1 must be lower available equity up point allowed than the to the original existing first mortgage amount may For other loans mortgage be used for closing or grants up to 2 interest rate. costs associated with points allowed the refinancing. No cash out to applicant 7. IRCLHAProgram Compliance Monitoring All housing units shall be monitored for compliance with the requirements of the IRCLHAProgram and Strategies as follows: a. Compliance Review Activities All housing units. assisted by the IRCLHAProgram shall be subject to the following monitoring activities to determine compliance with the requirements of IRCLHAProgram and Strategies as appropriate: i. Property Tax Payment Verification For owner financed units, compliance., verification with this requirement shall be ' conducted on an annual basis. For units receiving principal financing from a financial institution, payment of property taxes will be made through an escrow account. ii. Homeowner/Property Owner Insurance Verification For owner financed units, compliance 59 verification with this requirement shall be conducted on an annual basis. For units receiving principal financing from a financial institution, payment of property taxes will be made through an escrow account. iii. Owner and Eligible Person Occupancy Verification Occupancy requirement shall be consistent with provision identified for each assisted strategy. Compliance verification with this requirement shall occur as needed. 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 thirty (30) 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 recommendation of the IRCLHAProgram Loan 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 all together. 8. Assisted Housing Unit Resale The resale of housing units assisted by the IRCLHAProgram will require coordination with Indian River County, and satisfaction of the mortgage or subordinated mortgage held by Indian River County. The resale of owner -occupied housing units assisted by the IRCLHAProgram shall be subject to repayment of the full loan amount. The payment of the principal loan amount shall be consistent with provisions identified for each assistance strategy. We The amount of recaptured funds that is paid by the selling household will be 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) shall not be considered the resale of the unit requiring repayment of the loan amount, and applicable interest amount. The Satisfaction of .Mortgage shall be executed upon payment of the original loan/grant principal amount as required by the corresponding IRCLHAProgram Assistance Strategy or Strategies. 9. Data Development and Compilation The Community Development Department staff may collect and/or compile data to be utilized in analyzing the efficiency of 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 67-37, Florida Administrative Code (FAC). a. The Community Development Department staff shall monitor all activities conducted as. part of the IRCLHAProgram for compliance with the requirements of the IRCLHAPlan and Rule 67-37 FAC.. Upon determination that the IRCLHAProgram will be unable to comply with the requirements of the IRCLHAPlan or Rule 67-37 FAC: i. The Community Development Department shall provide written notification, of. non-compliance to the Florida Housing Finance Corporation 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 W Florida to the IRCLHA program to ensure that funds are encumbered within 12 months following the end of the state fiscal year in which the funds were received and expended within'24 months following the end of the state fiscal year in which the funds were received. c. SHIP funds shall. be used to implement the local housing assistance strategies as outlined in this local housing assistance plan. SHIP funds may also be used as supplement or match for other state and federal funds (such as the Community Development Block Grant (CDBG), the Home Investment Partnership Program (HOME)) as permitted by rule 67-37 F.A.C: To facilitate the use of SHIP funds to match other state or federal programs, the county may reserve a portion of the county's annual SHIP allocation (Not to exceed 500 of the county's total allocation) for one or more developers. This may be a multi-year reservation. In the event that SHIP funds which are granted to the county are reduced or withheld by the Florida Housing Finance Corporation. (FHFC), the reservation commitment will be voided and the county shall not be liable for payment for services begun under terms of a contract with a developer. d. The Community Development Department staff shall complete on an annual basis an Annual Report analyzing and listing the activities and accomplishments of the IRCLHAProgram. The IRCLHAProgram Annual Report (IRCLHAPAR, AR) shall conform to the following requirements: i. Annual Report Preparation (a) The annual report shall be compiled and drafted by Community Development Department staff and submitted to the Florida Housing Finance Corporation by September 15 of each calendar year for all ..fiscal years that funds were not completely expended; (b) The draft AR shall be made available for public inspection and comment. Written comments received from the public shall be included in the final AR; (c) The draft AR shall be revised to include and reflect public comments provided and shall be signed by the chairman of the Board of County Commissioners; (d) The Indian River County Board of County Commissioners shall review the proposed AR and direct staff to transmit the proposed AR to the Florida Housing Finance Corporation (FHFC) for its compliance review; (e) The AR shall be transmitted to the FHFC prior to September 15th of the calendar year for the FHFC to complete its compliance review for the AR; 62 ii. Annual Report Information The AR shall include the summary information required by Florida Statute Section 420.9075(7) and Rule 67-37.016, 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 or a condominium unit; (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) Other data or affordable housing accomplishments considered significant by the Indian River County Board of County Commissioners. Timetable for Expenditures The administration and implementation activities associated with conducting the IRCLHAProgram may proceed at varied rates throughout each fiscal year. The estimated time line at which each of the activities may proceed throughout each fiscal year for all strategies is indicated in the following chart: Fiscal Year 2003-2004 (July 1, 2003 - June 30, 2004) Fiscal Year 2004-2005 (July 1, 2004 - June 30, 2005) Fiscal Year 2003-2004 FY FY 04/05 05/� # of Months Elapsed 1 2 3 4 5 6 7 8 9 10 11 12 24 36 Month June J A S 0 N D J F M A M J Advertise X Availability of Funds Application X Period Start Program X Year Annual Report X Mid -Year X Review/ Adjustments End -Year X Review/ Adjustments Encumbrance X Deadline Expenditure X Deadline Final Program X Review Fiscal Year 2004-2005 (July 1, 2004 - June 30, 2005) .s Fiscal Year 2004-2005 FY FY 05/06 06/07 # of Months Elapsed 1 2 3 4 5 6 7 18 9 110 11 12 24 36 Month June J A S 0 N D J F M A M J Advertise X Availability of Funds Application X Period Start Program X Year Annual Report X Mid -Year X Review/ Adjustments End -Year X Review/ Adjustments Encumbrance X Deadline Expenditure X Deadline Final Program X Review .s Fiscal Year 2005-2006 (July 1, 2005 - June 30, 2006) • Advertise availability of funds and application period at least 30 days prior to application acceptance date • Encumbrance of funds (12 months following end of state FY) • Expenditure of funds (24 months following end of state FY) • Annual report must be submitted to the FHFC by September 15 of each year. 65 Fiscal Year 2005-2006 FY FY 107/08 06/07 # of Months Elapsed 1 2 3 4 5 6- 7 8 9 10 11 112 24 36 Month June J A S 0 N D J F M A M J Advertise X Availability of Funds Application X Period Start Program X Year Annual Report X Mid -Year X Review/ Adjustments End -Year X Review/ Adjustments Encumbrance X Deadline Expenditure X Deadline Final Program X Review • Advertise availability of funds and application period at least 30 days prior to application acceptance date • Encumbrance of funds (12 months following end of state FY) • Expenditure of funds (24 months following end of state FY) • Annual report must be submitted to the FHFC by September 15 of each year. 65 IV. AFFORDABLE HOUSING INCENTIVE STRATEGIES Since adoption of the county's comprehensive plan in 1990, the county has established several new housing programs and regulations to address various housing problems. In addition, the county has reviewed all of its ordinances and regulations to determine if any unnecessarily increase housing costs. Where appropriate, the regulations and ordinances were revised to encourage the provision of affordable housing within the county. The county's affordable housing incentive strategies affecting affordable housing are as follows: * Regulations providing up to a 20o density bonus for affordable housing development projects (housing element policy 2.5, Land Development Regulations Section 911.14(4)(a)). * Regulations_ allowing for small lot subdivisions with reduced setbacks, lot size, and.lot.width requirements (Land Development Regulations, Chapter 911 and section 971.41(9)). * Regulations allowing for accessory single-family dwelling units in all agricultural and residential zoning districts (Land Development Regulations, Chapter 911 and Section 971.41(10)) * Regulations allowing multi -family dwelling units in conjunction with commercial development, such as apartments over commercial buildings (Land Development Regulations Section 911.10 and Section 971.41 (6)) * Policies for expedited permit processing (Housing Element policies 1.5 and 1.6) * Policy for review of proposed local policies or regulations which may increase the cost of housing (Housing.Element policy 1.7). * Inventory of all surplus county owned land (Housing Element policy 2.4) * Regulations allowing zero lot line subdivisions (Land Development Regulations Section 915.15) * Establishment of a Local Housing Assistance Program, allowing the county to utilize State Housing Initiatives Partnership (SHIP) program funds for the provision of affordable housing (Local Housing Assistance program, Local Housing Assistance plan, Housing Element policies 2.7, 3.5, 4.4, 4.6, 4.7, 4.9, and 9.1) Following are citations from the county's Comprehensive Plan and Land Development Regulations (LDRs) for the above referenced affordable housing incentive strategies. In the case of amendments to the county's comprehensive plan policies or land development .: regulations that cause inconsistency between this section of the Local Housing Assistance Plan and the county's Comprehensive Plan or Land Development Regulations, the Comprehensive Plan and Land Development Regulations will control. •, Density Bonus - Housing Element Policy 2.5 POLICY 2.5: The county shall maintain its affordable housing density bonus provision for planned development projects, allowing eligible affordable housing projects to receive up to a 20% density bonus based on the following table. Very Low Income Density Additional Density Bonus for Range of (VLI) and Low Bonus Providing Additional Buffer and Possible Income (LI) (Percent. Landscaping based on one of the Density Affordable Units increase following options (percent Bonus as Percentage of in increase in allowable units) Percentage Project's Total allowable (Percent Units units) Option I Option II increase in Material equal Material equal allowable to a 10' wide to a 20' wide units) Type C buffer* Type B buffer* with 6' opaque with 6' opaque feature along feature along residential residential district district boundaries and boundaries and 4' opaque 4' opaque feature along feature along roadways roadways More than 30% 10% 5% or 10% 10-20% * Butter types are identified in Chapter 926 of the county's Lana vevelopment Regulations - Section 911.14(4) of the LDRs, Density Bonus (a) Affordable housing. Residential developments may receive a density bonus not to exceed twenty (20) percent of the density permitted by the applicable zoning district. 2. For the purpose of this section, an affordable dwelling unit shall be a dwelling unit which: 1. Has a market value less than two (2) times the county's annual median household income for Indian River County as established by the Florida Housing Finance Corporation; or b. Has a monthly rent less than one -twelfth (1/12)' times .thirty (30) percent of 80% of the county's annual median household income for Indian River County as established by the Florida Housing Finance Corporation. 3. Affordable dwelling units provided in compliance with this section, regardless of whether or not the affordable dwelling units are part of a planned development project, 67 shall comply with the following requirements: 1. The affordable dwelling unit shall remain available as an affordable dwelling unit for the following periods: 1. Owner -occupied units shall remain affordable dwelling units for a period of not less than twenty (20) years commencing on the first day following the issuance of a certificate of occupancy, or equivalent final building inspection, for the unit. 2. Renter -occupied units shall remain affordable dwelling units for a period of not less than fifteen (15) years commencing on the first day following the issuance of a certificate of occupancy".or equivalent final building inspection, for the unit; : 2. Initial -occupancy of an owner -occupied affordable dwelling unit shall be by a household classified as very low-income, low-income or moderate -income whereby the classification is verified by the Indian River County Community Development Department or an agency, either public or private, designated by the community development department or by any state or federal public agencies. 3. Households occupying an affordable housing rental unit shall be classified as very low, low, or moderate -income households whereby the classification is verified by the Indian River County Community Development Department, or its designee or by any state or federal public agency, prior to the household's occupancy of the unit. While occupyingthe affordable housing rental unit, a household's annual adjusted gross income may increase to an amount not to exceed one hundred forty (140) percent of one hundred twenty (120) percent of the county's median household income adjusted for household size. 4. With respect to owner -occupied affordable dwelling units provided under the provisions of the section: 1. The owner -occupant's household annual adjusted gross median income may increase without limit following the household's ,purchase of the affordable dwelling unit; and 2. Resale of an affordable dwelling unit by the initial owner or any subsequent owner shall be subject to one of the following provisions: 1. If the purchasing household is not verified to be either a very low, or low income household, then the selling household shall be subject to providing a cash payment of the original loan amount and applicable interest, to the Indian River County Local Housing Assistance Trust Fund. 2. If the purchasing household is verified to be either a very low, or low income household, then the selling household shall not be required to provide any payment. 5. For projects utilizing the provision of on- site or off-site affordable dwelling units, no certificate for occupancy for a market rate priced dwelling unit shall be issued .unless the ratio of market rate dwelling units certified for occupancy to affordable dwelling units certified for occupancy is equal to or greater than the overall project's approved ratio of market rate dwelling units to affordable dwelling units. 6. Prior to the issuance of a certificate of occupancy for the affordable dwelling unit(s), a separate private deed covenant, entitled a "restriction on transfer", shall be filed in the public records of Indian River County. The covenant shall be subject to review and approval by county staff in order to verify compliance .with the requirements of this section, and the covenant shall: 1. Identify the subject unit as an affordable dwelling unit and specify that at no time may the identified unit be utilized as a model home, construction office or other non-residential occupancy use; and 2. Identify the units corresponding fifteen or twenty year affordability timeframe; and 3. Identify that the initial owner and each subsequent owner of an owner -occupied affordable dwelling unit must satisfy and comply with the re -sale provision of the county's local housing assistance plan; and 4. Identify the Board of County Commissioners of Indian River County or its community development department or as its designee, as the agency with enforcement and verification authority to enforce the terms of the covenant, and as the contact agency for closing agents to obtain estoppel letters; and 5. Identify any additional terms or conditions relating to the provision of the affordable dwelling unit as established by. the Board of County Commissioners via its review and approval of the corresponding planned development approval. 6. Specify that monitoring the occupancy of the affordable dwelling unit shall be included in the compliance monitoring activities of the county's local housing assistance program, or a suitable substitute determined by the Indian River County Board of County Commissioners. 7. Specify that no provision of the restrictive covenant may be amended without the consent of the Board of County Commissioners of Indian River County. 4. An applicant may obtain a development density bonus for a planned development project in compliance with one of the following options.: 1. An applicant may obtain a density bonus by providing affordable dwelling units within the residential development project which will utilize the density bonus. For development projects utilizing the on-site affordable dwelling unit density bonus, the affordable housing density bonus shall be determined as .indicated in the following table: 70. Very Low Income Density Additional Density Bonus for Range of (VLI) and Low Bonus Providing Additional Buffer and Possible Income (LI) (Percent Landscaping based on once of the Density Affordable Units increase following options (percent Bonus as Percentage of in increase in allowable units) Percentage Project's Total allowable (Percent Units units) Option I Option II increase in Material equal Material equal allowable to a 10' wide to a 20' wide units) Type C buffer* Type B buffer* with 6' opaque with 6' opaque feature along feature along residential residential district district boundaries and boundaries and 4' opaque 4' opaque feature along feature along roadways roadways More than 30% 10% 5% or 10% 10-20% * Buffer types are identified in Chapter 926 of the county's Land. Development Regulations 2. An'' applicant may obtain a density bonus by providing affordable dwelling units off-site from the residential development project which will utilize the density bonus. For development projects utilizing the off-site affordable dwelling.unit density bonus, the affordable housing density bonus shall be determined as follows: The percentage of density bonus shall be one half (1/2) of the applicable density bonus as determined for on-site affordable housing projects as provided in the above table. (5) Approval procedure and other requirements. All planned developments shall be reviewed consistent with the requirements of Chapter 915, Planned Development. 71 (a) W Small Lot Subdivision - Section 971.41(9) of the LDRs Districts requiring administrative permit approval, (pursuant to the provision of 971.0.4): RS -6, RT -6, RM -6, RM -8, RM -10 Criteria for small lot subdivisions: 1. The small lot subdivision shall be serviced by centralized water and wastewater. 2. The gross density of any small lot subdivision shall not exceed the maximum density allowed within the zoning district in which the subdivision is located. 3. Perimeter lots are those lots which abut or are adjacent to areas" not included in the proposed small lot subdivision. Perimeter lots which abut property having a residential or agricultural zoning designation shall: 1. Conform to the standard applicable size and dimension criteria of the respective zoning district in which the project is located; or 2. Comply with the following size and dimension criteria: Minimum lot width: 50 feet Minimum lot size: 5,000 sq. ft. Minimum yard setbacks: Front: 20 feet Side: 7 feet; 5 feet on lots fronting a.cul-de-sac circle Rear Minimum rear yard setbacks shall be provided, based upon lot width, as indicated in the table below: Lot width (feet): Rear Yard (Feet) z 50 & <55 30 z 55 & <60 27 z 60 & <65 24 22 z 65 & <70 4. Interior lots (those determined not to be perimeter lots) and those perimeter lots which, abut a property having a commercial/industrial 72 land use designation shall comply with the following size and dimension criteria: Minimum lot width: 50 feet Minimum lot size: 5,000 sq. ft. Minimum yard setbacks: Front: 20 feet Side: 7 feet; 5 feet on lots fronting a cul-de-sac circle Rear: 15 feet 5. Accessory structures may encroach into required yards as a-llowed in, section 911.15 of the land development regulations. 6. A buffer maintenance easement, having a minimum width of ten (10) feet, shall be provided along the perimeter of the small lot subdivision between the small lot subdivision and all abutting residentially designated properties, except where the proposed small lot subdivision abuts another approved..small lot subdivision or abuts an older, "grandfathered -in" subdivision where fifty (50) percent or more of the lots have been developed as fifty -foot wide single-family lots. Where required, the buffer easement shall comply with the following criteria: 1. A six-foot opaque buffer improvement shall be provided within the easement and shall consist of one of the following: Existing and/or planted vegetation A combination of a landscaped berm and vegetation. A wall or opaque fence. Any other buffer improvement(s) allowed under the provisions of section 926.08 of the land development regulations. A. The buffer improvement(s) shall be located within a buffer eas.ement(s) as designated on the small lot subdivision plat. Said easement(s) shall be depicted on the final plat and shall be dedicated to the subdivision's property owners' association to ensure maintenance of the buffer easement 73 improvement(s) shall be provided in accordance with the provisions of section 913.08 of the land development regulations. 2. No structure(s), other than those related to buffering, drainage or utilities, shall be located in the buffer easement.' 7. Minimum building setbacks as specified in 971.41(9)(b)3. and 4. above, shall be depicted as a residential building envelope on the preliminary plat. Language shall be noted on the final plat to the effect that specially -approved setbacks are in effect on the lots. Accessory single-family dwelling units Section 971.41(10) of the LDRs (a) The construction of an accessory dwelling unit on a residentially zoned lot shall be allowed subject to the provisions of section 971.41(10). The standards and requirements of this section are intended to make available inexpensive dwelling units to meet the needs of older households, single member households, and single parent households. This is in recognition of the fact that housing costs continue to increase, that households continue to decline in size, and that the number of elderly Americans is on the rise. (b) Districts requiring administrative permit approval, (pursuant to the provisions of 971.04): A-3, A-2, A-1, RFD, RS -1, RS -2, RS -3, RS -6, RT -6, RM -3, RM -4, RM -6, RM -8, RM -10, Con -2, Con -3, Rose -4 (c) Requirements of section 971.41(10) shall not supersede property owner deed restrictions. (d) Additional information required: 1. A site plan conforming to Chapter 914 requirements (e) Criteria for accessory dwelling units: 1. Accessory dwelling units shall be located only on lots which satisfy the minimum lot size requirement of the applicable zoning district. 2. The accessory dwelling unit shall be clearly incidental to the principal dwelling and shall only be developed in conjunction with or after development of the principal dwelling unit. 3. Not more than one (1) accessory dwelling unit shall be established in conjunction with a principal dwelling unit. 4. No accessory dwelling unit shall be established in conjunction with a multi -family dwelling unit. 5. The heated/cooled gross floor area of the accessory dwelling unit shall not exceed thirty-three (33) percent of the principal structure or seven hundred fifty (750) gross square feet, whichever is less. The accessory dwelling unit shall be no smaller than three hundred (300) gross square feet of heated/cooled area. 6. No accessory dwelling unit shall have a ,doorway entrance visible from the same street as the principal dwelling unit. 7. Detached accessory dwelling units shall be located no farther than seventy-five (75) feet in distance from the principal dwelling unit from the closest point of the principal dwelling unit to the closest point of the accessory dwelling unit. 8. Excluding converted garage accessory dwelling units, the accessory dwelling unit shall be designed so that the exterior facade material is similar in appearance.to the facade of the existing principal structure. 9. One (1) off-street parking space shall be provided for the accessory dwelling unit in addition to spaces required for the principal dwelling unit. 10. The accessory dwelling unit shall be serviced by centralized water and wastewater, or meet the environmental health department's well and septic tank and drainfield requirements. Modification, expansion .or installation of well and/or septic tank facilities to serve the accessory dwelling unit shall be designed in a manner that does not render any adjacent vacant properties "unbuildable" for development when well and/or septic tank facilities would be required to service development on those adjacent properties. - 1. No accessory dwelling unit shall be sold separately from the principal dwelling unit. The accessory dwelling unit and the principal dwelling unit shall be located on a single lot 75 or parcel or on a combination of lots or parcels unified under a recorded unity of title document. 2. An.accessory dwelling unit shall be treated as a multi -family unit for traffic impact fee and traffic concurrency purposes, and the concurrency requirements of Chapter 910 for a multi -family unit shall be satisfied. • Multi -Family Dwelling Units in Conjunction with Commercial Development Section 911.10 of the LDRs COMMERCIAL DISTRICTS USE PRO OCR MED CN CL CG Multi- P P A A A A Family Residential P = Permitted use A = Administrative permit use PRO = Professional Office District OCR = Office, Commercial, Residential District MED = Medical District CN = Neighborhood Commercial District CL = Limited Commercial District CG = General Commercial District - Section 971.41(6) of the LDRs Multiple -family dwellings in commercial areas (administrative permit: noplanning and zoning commission review or approval required if associated with a site plan reviewed as an administrative approval or minor site plan). (a) Districts requiring administrative permit approval, (pursuant to the provisions of 971.04): MED, CN, CL, CG (b) Additional information requirements: a site plan meeting the requirements of Chapter 914 which shows the location and specification of all landscape materials, and the location of all hospital emergency entrances or exits within five hundred (500) feet of the site. (c) Criteria for multiple -family dwellings within a MED district: 1. All proposed developments shall be subject to the size and dimension criteria for multi -family dwellings within the RM -8 district; 901 2. No residential site shall be located within five hundred (500) feet of a hospital complex, emergency entrance or exit. (d) Criteria for multiple -family dwellings within a CN, CL or CG district: 1. All dwelling units shall be accessory to a permitted use within the applicable zoning district; 2. In cases where a single-family unit is being used in conjunction with a business, the total area of the residence may exceed the total area of the business. No dwelling unit shall have street frontage on the ground floor. • Expedited Permit Processing Housing Element Policy 1.5 POLICY 1.5:`By 2000, the county shall assess its existing permit processing procedure and, if warranted, establish a full one-stop permitting process. - Housing Element Policy 1.6 POLICY 1.6: The county shall take all necessary steps to eliminate delays in the review of affordable housing development projects. In order to define delay, the county hereby establishes the following maximum timeframes for approval of projects when an applicant provides needed information in a timely manner: • Administrative approval - 5 days; • Minor site plan - 5 weeks; • Major site plan - 6 weeks; • Special exception approval - 13 weeks Whenever these review times increase by 1500 or more due to the work load of the review staff, the county will begin prioritizing the review of affordable housing development project applications. In prioritizing affordable housing development project applications, staff will schedule affordable housing project applications for review before'other types of project applications to ensure that maximum review timeframes are not exceeded for affordable housing projects. , • Housing Cost Impact Review Process - Housing Element Policv 1.7 77 POLICY 1.7: As part of the adoption process for any county regulations which could affect housing development, county planning staff shall prepare a Financial Impact Statement to assess the anticipated impact of the proposed regulation on the cost of housing. When proposed regulatory activities are anticipated to increase the estimated cost per unit projection. The financial impact statement then will be reviewed by the Professional Services Advisory Committee, the Planning and Zoning Commission, and, if possible, the Affordable Housing Advisory Committee. Those groups shall consider the regulation's effect on housing cost in making their recommendation to the Board of County Commissioners. The Board of County Commissioners will consider the financial impact statement in making its final decision on the adoption of any proposed regulations. • Surplus County Owned Land Inventory - HousinQ Element Policy 2.4 POLICY 2.4: The county's general services department shall maintain an inventory of all surplus county -owned land and foreclosed properties that could be used for affordable housing. The county shall notify for-profit and. non-profit affordable housing developers whenever is proposes to sell surplus land. • Zero Lot Line Subdivisions Section 915.15 of the LDRs Planned development allowable waivers and development parameters. Waivers from the various conventional standards and criteria found in the Chapter 911, Zoning, may be granted by the Board of County Commissioners via the establishment of special project development parameter.s,.as provided for herein. (1) Conceptual P.D. plans shall list, for all areas and phases within the P.D. project area, the proposed waivers and development parameters for the following: 1. Minimum lot size (in square feet); 2. Minimum lot width (in feet); 3. Minimum lot frontage (in feet); 4. Minimum yard setbacks for buildings: front, rear, side 5. Minimum yard setbacks for accessory structures (such as pools, patios, and decks); front, rear, and side; 6. Maximum lot coverage; building(s) and impervious surface area; 7. Minimum separation distances between buildings; 8. Minimum right-of-way widths (by road type); 9. Minimum open space per lot and by phase (Note: the am minimum open space for the entire project shall meet or exceed the requirements of section 915.18); 10. Minimum preservation/conservation area per lot; Note: additional conceptual plan submittal requirements are listed -out in section.915.22 (2) Notwithstanding other provisions in this chapter (915) and Chapter 971, specific land use criteria listed in Chapter 971 may be waived (modified or not applied) where such criteria would merely apply to the compatibility of uses within the P.D. project area if approved by the county. Where specific land use criteria apply to the relationship of a use(s) within a P.D. project and properties adjacent to the project area, the specific land use criteria shall apply pursuant to the provisions of chapter 971. (3) The conventional standards and criteria found in Chapter 911, Zoning, not covered in section 915.15(1) shall apply unless otherwise specifically waived or modified by otherprovisions of this chapter. 0 Establishing/Utilizing SHIP Program - Housing Element Policy 2.7 POLICY 2.7: The county shall provide for the creation and preservation of affordable housing for all current and anticipated future residents and households with- special housing needs including rural residents and farmworkers by allowing affordable housing in all residential areas, rehabilitating existing units with SHIP funds, utilizing CDBG funds for housing rehabilitation and neighborhood revitalization, and undertaking other measures to minimize the need for additional local services and avoid a concentration of affordable housing units in specific areas. - Housing Element Policy 3,.5 POLICY 3.5: The county shall offer rehabilitation loan assistance through its local housing assistance program, cooperative ventures with non-profit groups, or Community Development Block Grant (CDBG) type programs to effect spot removal of blighted structures and blighting influences. - Housing Element Policy 4.4 POLICY 4.4: The county shall maintain its Housing Trust Fund which provides below-market interest rate financing and/or grants for land acquisition, downpayment/closing cost, loans, impact fee payment loans, and rehabilitation loans for affordable housing 79 units in the county. 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 grant, but the majority of funds will be revolving loans, with borrowers paying back principal and applicable interest into the trust, therefore ensuring a permanent source of financing. - Housing Element Policy 4.5 POLICY 4.5: The county shall enter into interlocal agreements with any county municipality which because of unusually high property values or coastal high hazard area constraints cannot meet is affordable housing needs within its jurisdiction, and desires to contribute to the Housing Trust Fund. The amount and method of payment will be established prior to execution. - Housing Element Policy 4.6 POLICY 4.6: The county shall maintain its affordable housing partnership with financial institutions for leveraging State Housing Initiatives Partnership Program (SHIP) funds. - Housinq Element Policy 4.7 POLICY 4.7: The county shall encourage increased home ownership by providing downpayment/closing cost loan assistance to eligible very low income, low income, and moderate income households through the county's local housing assistance program. Housing Element Policy 4.9 POLICY 4.9: The county shall "require all applicants for downpayment/closing cost loan assistance from the Indian River County Local Housing Assistance Program to attend a homebuyers' educational program workshop as a prerequisite for getting a loan. The homebuyers' educational program provides useful information to people wanting to buy their own home. Typical subjects presented are as follows: • Preparing for homeownership (including budgeting, saving, etc.) • Shopping for a home • Obtaining a mortgage (qualifying, processing, etc.) • Understanding mortgages and the closing process • Life as a homeowner (includes maintenance and responsibilities) • Credit and credit reports 9 - Housing Element Policy 9.1 POLICY 9.1: The county shall maintain its local housing assistance programs. As part of this coordination process, the county will accept funds, land, in-kind services, or other types of payments for housing assistance purposes from local municipalities which are unable to provide sites for low cost housing within their jurisdictions. Affordable Housing Incentive Strategies Evaluation The county's affordable housing incentive strategies are implemented through application of the county's Land Development Regulations and enforcement of the county's Comprehensive Plan policies. All of the county's affordable housing incentive strategies are being implemented as intended. As a result, these strategies are reducing the cost of housing in the county. V. 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 by a resolution or by an ordinance of the Indian River County Board of County Commissioners. B. 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. C. 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. To the extent feasible, 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 Corporation (FHFC) for its compliance review. 5. The IRCLHAPlan and amendment proposals shall be transmitted to the FHFC within ten (10) working days of the Board of County Commissioners' determination to transmit the IRCLHAPLan and amendment proposals to the FHFC for compliance review. AN 6. Within thirty (30) working days following receipt of the FHFC's review comments, the Board of County Commissioners shall review the comments provided by the FHFC and adopt the IRCLHAPlan and amendment proposals as transmitted to the FHFC or as modified in response to the FHFC's comments. 7. Within twenty-one (21) calendar revised IRCLHAPlan, Community staff shall transmit two (2) revised and adopted IRCLHAPlan Finance Corporation. M days of adoption of the Development Department certified copies of the to the Florida Housing CERTIFICATION TO FLORIDA HOUSING FINANCE CORPORATION Local Government: Indian River County 1. The local government will advertise the availability of SHIP funds pursuant to Florida Statutes. 2. All SHIP funds will be expended in a manner which will ensure that there will be no discrimination on the basis .of race, creed, color, age, sex, familial status, handicap, religion, marital status, or national origin. 3. A process for selection of recipients for funds has been developed. 4. The eligible municipality.. or county has developed a qualification system for applications for awards. 5. Recipients of funds will be required to contractually commit to program guidelines. 6. The Florida Housing Finance Corporation will be notified promptly if the local government (or interlocal entity) will be unable to comply with the provisions of the plan. 7. The Local 'Housing Assistance Plan shall provide for the expenditure of SHIP funds within 24 months following the end of the State fiscal year in which they are received. 8. The plan conforms to the Local Government Comprehensive Plan, or that an amendment to the Local Government Comprehensive Plan will be initiated at the next available opportunity to insure concurrence with the Local Housing Assistance Plan. 9. Amendments to the approved Local Housing Assistance Plan shall be provided to the Corporation within 21 days after adoption. 10. The trust fund shall be established with a qualified depository for all SHIP funds as well as money.generated from activities such as interest earned on loans. 11. Amounts on deposit in the local housing assistance trust fund shall be invested as permitted by law. 12.. The local housing assistance trust fund shall be separately stated as a special revenue fund in the county's audited financial statements, copies of the audits will be forwarded to the Corporation as soon as available. 13. An interlocal entity shall have its local housing assistance trust fund separately audited for each state fiscal year, and the audit forwarded to the Corporation as soon as possible. 14. SHIP funds will not be pledged for debt service on bonds or as rent subsidies. 15. Developers receiving assistance from both SHIP and the Low Income Housing Tax Credit (LIHTC)-program shall comply with the , income, affordability and other LIHTC program requirements, similarly, any units receiving assistance from other.federal programs shall comply with all Federal and SHIP program requirements. 16. Loans shall be provided for periods not exceeding 30 years., except for deferred payment loans or loans that extend beyond 30 years which continue to service eligible persons. 17. Rental units constructed or rehabilitated with SHIP funds shall be monitored at least annually for 15 years for compliancewith tenant income requirements and affordability requirements or as required in Section 420.9075(3).(e). 18. The Plan meets the requirements of Section 420-907-9079 FS, and Rule Chapter, 67-37, F.A.C., and how each of those requirements shall be met. 19. The provisions of Chapter 83-220, Laws of Florida have been implemented. Witness Chief Elected Official or Designee Commissioner Kenneth R. Macht, Chairman Board of County Commissioners Type Name and Title Witness Date OR Attest:J..K. Barton Clerk of Circuit Court (Seal) F:\Community Development \Users\VICKIE\HOUSING\LHAPDOCS\HAPLAN2003-2006.TRN.doc Q m 2 x w U 0 2 4 O co O N M O C%lM N Mg In LL Q` ,- x N h N N N CO 7 h I1 M O CI O m T 0 69 � ; ++ O M O O W e O � � M M W 00 0 0 0 0 0 0 0 � 0 0 0 0 0 0 0 0 � g Y U G 0 O tt{4 G. 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O 0 0 0 o O 0= o _n r �2 c 5 W Fa- U) y )n`» 3L w, � N 0 r p _ �: a ; r x °1 Q oz O O CD y= o 2 U IA E 00 nOOO N fA 000000O U) o N orti N O O O 0 - E LL 0ui O Ocn U LL c W c W a m x� � o - iW. V E L C E 07 H C W' o J m o m �' ❑ O C C N s ..' N m y U C Q = c C u c u j co i m Qx m o w=l� OF o 0c+ car a a E y w 6 jE m S. O O c c F c �., a d V t V R m Z ry 1.41 a 6 O � m H m 2 X W U U 0 O O L6 0 0 N EXHIBIT D ASSETS A. Assets That Should Be Considered & Assets That Should Not Be Considered 1. Savings accounts and the average 6 -month balance 1. Necessary personal property, except as noted in 10. of checking accounts. 2. Interest in Indian trust lands. 2. Stocks, bonds, savings certificates, money market funds, and other investment accounts. 3. Assets that are a part of an active business or farming operation. (Note: Rental properties are 3. Equity in real property or other capital considered personal assets unless real estate is the investments. Equity is the estimated current applicant's main occupation.) market value of the asset less. the unpaid balance on all loans secured by the asset and reasonable costs 4. Assets not accessible to the family and that. provide (such as broker fees) that would be incurred in no income for the family. For example, an abused selling the asset. Under HOME and SHIP, equity spouse who Legally and jointly owns a house but (1) in the family's primary residence is not considered does not live is the house; (2) receives no income for home owner repair programs. from ownership of the house; and (3) has no ability to sell the house. 4. The value of land, In excess of land allowable for housing production is an asset. (SHIP Program S. Vehicki specially equipped for the handicapped. ONLY 6. Equity in owner -occupied cooperation and S. Cash value of trusts that are available to the manufactured homes in which the family lives. household. 7. Assets held in applicants' name but which are 6. IRA, Keogh, and similar retirement savings actually owned by someone else. accounts, even though withdrawal would result in a penalty. a. Asset and income from asset accrue to someone else. 7. Contributions to company retirement/pension b. The other person is responsible for paying taxes foods that can be withdrawn without retiring or on income. terminating employment. This amount would be c. .Not to be confused with joint ownership. reduced by any penalty for early withdrawal. L Cash value of life insurance policies. 8. Assets that, although owned by more thin one person, allow unrestricted access by the applicant. 9. Lump -sum receipts, such as inheritances, capital gains, lottery winnings, insurance settlements, and other claims. 10. Personal property held as an investment such as gems, jewelry, coin collections, antique cars, etc. 11. Assets disposed of for less than fair market value during two years preceding certification or recertification. ICF INCORPORATED IndOrn® Compttanao Juty t 996 _ _ Exhibit E Income Inclusions and Exclusions A determination of anticipated annual income 7. Alimony and child support received by the must include all of the types of income listed household. below and the amount anticipated to be received by all adult members of the household in the 12 Home and SHIP Projects: Count the months following certification. amount specified in a divorce settlement or separation agreement unless the applicant: A. Income Inclusions 1. Gross amount (before any payroll deductions) of wages, salaries, overtime pay, commissions, fees, tips bonuses, and any other compensation for personal services received by every adult member of the household except that of full-time students (unless head of household and spouse). 2. Net income, salaries, and other amounts distributed from a self -owned business. 3. Gross amount (before deductions for medicare. etc.) of periodic social security payments. This includes payments received by adults on behalf of individuals under the age of 18 or by individuals under the age of 18 for their own support. 4. The full amount of annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic payments. 5. Lump -sum .payments received because of delays in processing unemployment, welfare, or other benefits. 6. Payments in lieu of earnings, such as unemployment and disability compensation, workmen's compensation, and severance pay. any payments that will begin during the next twelve months must be included. a. certifies the income is not being provided, and b. has made reasonable effort to collect the amounts due, including filing with courts or agencies responsible for enforcing payments. 8. Alimony or child support paid by a member of the household sis counted as income, even if it is garnish from wages. 9. interest, dividends, and other income from net family assets (including income distributed from trust funds). On deeds of trust or mortgages, only the interest portion of the monthly payments received by the applicant is included: 10. Lottery winnings paid in 1&-riodic payments. (Winnings paid in a lump sum are included in net family assets IAC T in Annual Income). . 11. Recurring monetary contributions or gifts regularly received from persons = living in the unit, including rent or utility payments regularly paid on behalf of the family. This can include individualized rent concessibns or payments which are similar to "in-kind" payments for services rendered or to be rendered including the entire amount of resident service stipends if the stipend exceeds $200 per month. Refer to Section 6.3, B.2. ICF INCORPORATED income compitance Juty 1896 Z-5 12. NOTE: FOR INTERMEDIATE CARE FACILITIES FOR PERSONS WITH MENTAL RETARDATION (ICF/MR) where Medicaid pays the ICF/MR directly for services and rent and pays the _tenant only a small personal allowance (e.g., $35), annual income must include: a. the SSI payment the tenant would receive if he/she were not living in a group home, AND b. all income the tenant receives from sources other the SSI (e.g., wages, training workshops, interest income, etc.). The personal allowance received by tenants in ICF/MR facilities must = be included in the calculation. B. Income Exclusions Certain sources of income should = be counted as annual income: 1. Employment income of members of the household that are under eighteen, including foster children. Head of household and spouse may never be considered minors. (Unearned incomes, such as social security payments received on behalf of mirrors, must be included. as income.) 2. Resident service stipends not exceeding $200 per month .received by a resident for performing a service for the housing authority or the owner, on a part-time basis, that enhances the quality of life in the housing development. If the stipend exceeds $200 per month, the entire amount is included in.annual income. Such services may include, but are not limited to, fire ' patrol, hall monitoring, lawn maintenance; and resident initiatives coordination. No resident may receive more than one such stipend during the same period of time. 3. Earnings in excess of 5480 for each full- time student, 18 years old or older (except the head or co-head of household and spouse) 4. "Meals on Wheels" or any other program that provides foods for the needy; groceries provided by persons not living in the household; and' amounts received under the School Lunch Act and the Child Nutrition Act of 1966. 5. Income associated with persons that live in the unit but are not household members. For example, this would include: a. payments received for care of foster children or foster adults; and b. income of live-in attendants. 6 The principal portion of the payments received on mortgages or deeds of trust. 7. Loans regardless of how the money is used. Loans are not counted as income because loans are required to be repaid. 8. Hazardous duty pay to a family member serving in the Armed Forces who is exposed to hostile fire. 9. Temporary, non-recurring or sporadic income (including gifts). 10. Payments received under training programs funded by , HUD (Comprehensive Improvement 'Assistance Program). 11. Adoption assistance payments in excess of $480 per adopted child. MF INCORPORATED lnoottts CoOmpllnnas Juty 1 ago 2-6 12. Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during Nazi era. Examples include payments by the German and Japanese governments for atrocities committed during the Nazi era. 13. Home care payments paid by a State Agency to families that have developmentally disabled children or adult family, members living in the home. 14. Deferred periodic payments of SSI and Social Security benefits that are received in lump sum. 15. Recurring monetary contributions that are paid. directly to a child care provider by persons not living in the unit. HUD interprets the regulations to mean that child care expenses that are reimbursed are = included as annual income 16. The value of any child care provided or arranged (or any amount received as payment for such care or reimbursement for costs incurred for such care) under the Child Care and Development Block Grant Act of 1990 (CCDBGA) (42 U.S.C. 9859). Participating families may either pay a reduced amount based on a sliding fee scale or they may receive a certificate for child care services. NOTE: This exclusion does not apply to amounts received by a child care provider for services paid through the CCDBGA. 17. Other forms of . income excluded by federal statutes are: a. The value of the allotment made under Food Stamp Act of 1977. b. Payment received under Domestic Volunteer Service Act of 1973 (employment through VISTA, Retired Senior Volunteer Program, Foster Grandparents Program, youthful offender incarceration alternatives, senior companions). c. Interest of individual Indians in trust or restricted lands, and the first $2,000 per year of income received by individual indians that is derived from trusts or restricted lands (25 U.S.C. 1408). , d. Payments received under Alaskan Native Claims Settlement Act (43 U.S.C. 1626(c). e. Payments .from certain submarginal U.S. land held in trust for certain Indian tribes. f. Payments from disposal of funds of Grand River Bank of Ottawa Indians. g. The first $2,000 of per capital shares received from judgments awarded by the Indian Claims Commission or the Court of Claims, or from funds the Secretary of Interior holds in trust for an Indian Tribe. h. Payments, rebates, or credits received under Federal Low-income Home Energy Assistance Programs. Includes any winter differentials given to elderly persons. _ s i. Payment under programs funded in whole or in part under the Job Training Partnership Act (employment and training programs for native Americans and migrant and seasonal farm workers, Job Corps, veterans' ICF it UMPORATED lnoome Cornpltanosi Juy t 8Oe 2-7