HomeMy WebLinkAbout1999-13111146 ..♦
RESOLUTION NO 99- 131
A.RESOLUTION OF THE BOARD OF COUNTY COMISSIONERS OF INDIAN
RIVER COUNTY, FLORIDA APPROVING THE COUNTY'S LOCAL HOUSING
ASSISTANCE PLAN FOR FY 2000-2001, 2001-2002, AND 2002-2003.
WHEREAS, Chapter 420, Florida Statutes, describes the State
Housing Initiative Partnership Program (SHIP), and states that the
h ,
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, 2000; and
WHEREAS, The county's current Local Housing Assistance Plan
adequately addresses the county's affordable housing needs; and
WHEREAS, The new plan is basically an extension of the
county's existing Local Housing Assistance Plan; and
WHEREAS, on December 14th, 1999, the Board of County
Commissioners considered proposed amendments to the county's Local
Housing Assistance Plan;
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 2000-2001, 2001-2002, and 2002-2003 is hereby approved
by the Board of County Commissioners.
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 authorized official.
Section 4.
The county shall continue utilizing ten percent (100) of the
state SHIP allocation for administration of the SHIP program.
Section S.
The county's maximum assistance from SHIP funds could be
thirty-nine thousand dollars ($39,000.00) per unit, and the
average assistance will be fourteen thousand dollars ($14,000)
per unit.
Section 6.
The following table indicates the average and maximum per unit
SHIP funds allowable for each strategy:
The foregoing resolution was offered by Commissioner Ginn,
and seconded by Commissioner Stanbridge and being put to a vote,
the vote was as follows:
Chairman, Kenneth R. Macht Aye
Vice Chairman, Fran Adams Ahsent
Commissioner, Caroline D. Ginn Aye_
Commissioner, Ruth Stanbridge Aye
Commissioner, John Tippin W
The Chairman thereupon declared the resolution duly passed and
adopted this 14th day of December, 1999.
STRATEGY
AVERAGE LOAN AMOUNT
MAXIMUM LOAN AMOUNT
!
c$)
cs)
Impact Fee Grant
5,000.00
7,500.00
Impact Fee Loan
5,000.00
7,500.00
Downpayment/Closing
10,000.00
15,000.00
Cost Loan
Rehabilitation Loan
14,000.00
20,000.00
Rehabilitation Grant
14,000.00
20,000.00
Land Acquisition
7,500.00
10,000.00
Loan
Land Bank -Market
7,500.00
10,000.00
Purchase Loan
Land Bank -Tax Deed
7,500.00
10,000.00
Purchase Loan
The foregoing resolution was offered by Commissioner Ginn,
and seconded by Commissioner Stanbridge and being put to a vote,
the vote was as follows:
Chairman, Kenneth R. Macht Aye
Vice Chairman, Fran Adams Ahsent
Commissioner, Caroline D. Ginn Aye_
Commissioner, Ruth Stanbridge Aye
Commissioner, John Tippin W
The Chairman thereupon declared the resolution duly passed and
adopted this 14th day of December, 1999.
Board of County Commissioners
of Indian River County
By:
nneth R. Mac t, Chai man
Attest by:
J,p
Je _
ClAK ton,
�
APPROVED AS TO F RM AND LEGAL SUFFICIENCY
BY : Gtr
i iam G. Collins, II
Deputy County Attorney
u\v\h\housing.res 1ndmebwCa I Aogrovsd U Os1s
gni
Deg 1.
r'iisH mgr.
CERTIFICATION TO
FLORIDA HOUSING FINANCE CORPORATION
Local Government: Indian River County
1. The county 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,
or national origin.
3. A process for selection of recipients for funds has been
developed.
4. The 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 county 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.
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 maintained with a qualified depository
for all SHIP funds as well as moneys 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. SHIP funds will not be pledged for debt service on bonds or as
rent subsidies.
14. 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.
15. 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.
16. 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.
17. The document being
Housing Assistance
to the requirements
L VFWitness ivhtnessU
submitted is the Indian River County Local
Plan and all provisions of the plan conform
of Sec. 420.9072, F.S., and Chapter 91-37,
Commissioner Kenneth R. Macht
Chairman Board of County Commissioners
Name and Title
December 14, 1999
Date
Atte J.K. BARTON
(Seal) CLERK CIRCUIT URT
u\v\r�rl'�fi�plan66.
70
/a-I� 99
INDIAN RIVER COUNTY
LOCAL HOUSING
ASSISTANCE
December 14, 1999
PLAN
RoloN � M"i
FY 2000-2001
FY 2001-2002
FY 2002-2003
-5EC Re,50 99-/3
/-;;�-/� -9 9
INDIAN RIVER COUNTY
LOCAL HOUSING
ASSISTANCE
PLAN
GUIDELINES. PROCEDURES, AND STRATEGIES
F R THE
INDIAN RIVER COUNTY
LOCAL HOUSING ASSISIANCE PROGRAM
FY 2000-2001
FY 2001-2002
FY 2002-2003
December 14, 1999
�� Re,50 99-r�
TABLE OF CONTENTS
Page
I. INTRODUCTION 1
Purpose and Intent 1
Background 1
Public Participation 3
Plan Effective Date and Duration 3
Iaiplementation Authorization 3
II. DEFINITIONS
4
III. THE
INDIAN RIVER COUNTY LOCAL HOUSING
ASSISTANCE PROGRAM (IRCLHAProgram)
6
A.
General Program Requirements
6
1.
Advertisement and Notice of Fund Availability
6
2.
Housing Unit Occupancy
7
3.
Income Classification Levels
8
4.
Monetary Allocations
9
5.
Housing Unit Sales/Purchase Price
10
6.
Housing Unit Rental Rates
10
7.
Combined Assistance Strategy Awards for
Housing Units
11
8.
Financial Standing of Eligible Housing Units
11
9.
Non-discrimination Policy
12
10.
Recycled/Repaid Funds for the. Indian River
County Local Housing Assistance Trust Fund
(IRCLHATF)
12
11.
Support Services for Eligible Recipients
12
12.
Indian River County Affordable Housing Partnership
12
M
i
ii
PAGE
B.
Local Sousing Assistance Program strategies
13
1.
Impact Fee Grants
13
2.
Impact Fee Loans
15
3.
Downpayment/Closing Cost/Principal Reduction
Loans 17
4.
Land Acquisition Loans
21
5.
Rehabilitation or Emergency Repair Loans
24
6.
Rehabilitation or Emergency Repair Grants
28
7.
Land Bank - Market Purchase
31
8.
Land Bank - Tax Deed Purchase
34
C.
Estimated Unit Assistance and Pricing
for the IRCLHAProgram
37
D.
IRCLHAProgram Administration/Implementation
Activities
37
1.
Program Expenditures
37
2.
Application Periods
39
3.
Application Processing
39
4.
IRCLHAProgram Applicant Criteria
39
a. Income Level
39
b. Employment Verification
39
c. Asset Verification
39
d. Mortgage/Rent Verification
39
e. Credit Verification
39
f. Homebuyer Status
41
g. Home Inspection
42
h. Non -Profit Organization Selection Criteria
43
5.
Application Review
43
6.
Transfer/Dispersal of Funds for Housing Units
41
ii
iii
PAGE
a. Housing Unit Inspection/Certificate of
Occupancy
44
b. Mortgage/Subordinated
Mortgage Documentation
44
7.
IRCLHAProgram Compliance Monitoring
45
a. Compliance Review Activities
45
i. Property Tax Payment Verification
45
ii. Homeowner/Property Owner Insurance
Verification
45
iii. Owner and Eligible Person
Occupancy Verification
45
iv. Rental Rate Verification
46
b. Non-compliance Notification
46
8.
Assisted Housing Unit Resale
46
9.
Data Development and Compilation
47
10.
IRCLHAPlan Compliance Monitoring
47
IV. AFFORDABLE HOUSING INCENTIVE STRATEGIES
51
II
V. PLAN
S
67
A.
Authority
67
B.
Timing
67
C.
Procedures
67
CERTIFICATION TO THE FLORIDA HOUSING FINANCE AGENCY
69
iii
EXHIBITS
A. Exhibit A: Fiscal Year 1997 - 1998 Housing
Delivery Goals for SHIP Funds by Households, Units
and Dollars
B. Exhibit B: Fiscal Year 1998 - 1999 Housing
Delivery Goals for SHIP Funds by Households, Units
and Dollars
C. Exhibit C: Fiscal Year 1990-2000 Housing Delivery Goals
for SHIP funds by Households, Units and Dollars
D. Assets that should be and should not be considered
E. Income Inclusions and Exclusions
ADOPTION RESOLUTION
M
iv
I. IerrRoaIIc�rIon
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 91-37.005, 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 Agency
approved the county's revised 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 1990 U.S. Census,
approximately 60% of Indian River County's households may be
classified as very low-, low- or moderate -income households.
These households require housing; however, due to the
obstacles noted, they may not be able to secure adequate
housing.
The need for affordable housing for very low-, low- and
moderate -income households within the county is addressed in
the county's adopted comprehensive plan, specifically Housing
Element Policy 4.4. That policy reads as follows:
"The county shall 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
1
loans or grants, and rehabilitation loans or grants
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 can be utilized to provide affordable housing
units for households with very low-, low-, and moderate -
incomes in Indian River County. When the comprehensive plan
was being developed, it was anticipated that a Housing Trust
Fund could be established and funded by a variety of sources,
including contributions from barrier island municipalities,
developer contributions from a density bonus program, and
other sources. In June, 1992, the State of Florida
Legislature approved and passed the William E. Sadowski
Affordable Housing Act which created a state funded program
whereby participating communities can receive monies for a
Local Housing Assistance Trust Fund.
The program created by the Sadowski Act is titled the State
Housing Initiatives Partnership (SHIP) Program. SHIP Program
requirements have been codified and established in Section
420.907 of the Florida Statutes (FS) and Chapter 9I-37 of
Florida Administrative Code (FAC). The Administrative Rules
listed in Chapter 9I-37 establish specialized compliance
requirements for communities participating in the SHIP
Program. In order to participate in the SHIP Program, a
community must complete the following activities:
1. Adopt a local ordinance which establishes a Local
Housing Assistance Program (LHAProgram) and a Local
Housing Assistance Trust Fund (LATF).
2. Adopt a Local Housing Assistance Plan (LHAPlan)
which details the intent and guidelines of the
Local Housing Assistance Program (LHAProgram).
3. Create a Local Affordable Housing Advisory
Committee which will conduct a regulatory review of
the county's regulations and develop a Local
Housing Incentive Plan (LHIP1an) to be adopted by
the community within one (1) year of adoption of
the ordinance establishing the LHAProgram.
In compliance with the county Comprehensive Plan and the State
of Florida State Housing Initiatives Partnership (SHIP)
2
Program, the Indian River County Board of County Commissioners
adopted Ordinance 93-13 which established the Indian River
} County Local Housing Assistance Program (IRCLHAProgram) and
created the Indian River County Local Housing Assistance Trust
Fund (IRCLHATF). The 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.
M
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, Affordable Housing
Advisory Committee 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. Recent amendments have extended the plan's
effective date. The plan is now effective for a period of
three (3) years, encompassing the 2000-2001, 2001-2002, and
2002-2003 fiscal years for the Indian River County Local
Housing Assistance Program and the State Housing Initiatives
Partnership Program. Pursuant to the procedures established
in this Plan, the Plan'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 for the implementation
of the Indian River County Local Housing Assistance Program.
3
II. DEFINITIONS
All definitions and terms provided in Rule 91-37.002, 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 91-
37.002, FAC, the following definitions shall apply:
1. Affordable Housing: Housing occupied by a household
paying housing expenses which do not exceed 30% 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 50% 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 to an
eligible sponsor by execution of a formal contract 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. *40
4
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 of the Indian River County
Affordable Housing Advisory Committee or his designee,
and one representative member of the Indian River County
t` Board of County Commissioners 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. Notice of Commitment: The written notification issued by
the Indian River County Local Housing Assistance Program
indicating that an eligible sponsor has qualified to
receive assistance from the Indian River County Local
Housing Assistance Program.
13. 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.
5
III. THE INDIAN RIVER COUNTY LOCAL HOUSING ASSISTANCE PROGRAM
(IRCLHAProgram)
The Indian River County Local Housing Assistance Program
(IRCLHAProgram) is the mechanism to be utilized by Indian
River County to provide assistance and incentives to encourage
the provision of affordable housing for residents of the
county. The IRCLHAProgram shall utilize various strategies to
make funds held in the Indian River County Local Housing
Assistance Trust Fund (IRCLHATF) available to eligible persons
or eligible sponsors for the provision of affordable housing
for eligible persons. By providing such assistance through
the various strategies, the IRCLHAProgram shall serve to
reduce the cost of housing for eligible recipients.
The IRCLHAProgram will be implemented, administered and
operated by the Indian River County Community Development
Department. The requirements and guidelines for the
IRCLHAProgram and its available strategies are as follows:
A. General Program Requirements
The Indian River County Local Housing Assistance Program
(IRCLHAProgram) shall be operated in conformance with the
requirements of the State Housing Initiatives Partnership Act,
Section 420.907, Florida Statutes, and the State Housing
Initiatives Partnership Program, Chapter 9I-37 of the Florida
Administrative Code. General operation and implementation of
the program shall comply with the following specific criteria:
1. Advertisement and Notice of Fund Availability
Formal public notice of the availability of funds for the
provision of affordable housing via the IRCLHAProgram shall be
made in the following manner:
a. At the beginning of the 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
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
2
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 (100%) of all housing units
receiving assistance shall be occupied by
households which are classified as very low-, low -
or moderate -income households at the time of
initial occupancy of the assisted housing unit.
However, the income of eligible persons, following
initial occupancy of the assisted housing unit, may
increase and exceed the limits established for very
low-, low- or moderate -income households as
follows:
i. For rental units:
(a) A very low-income person's annual
anticipated gross income may increase to an
amount not to exceed one hundred forty percent
(140%) of fifty percent (50%) of the median
income adjusted for family size for the
purposes of the IRCLHAProgram;
(b) A low-income person's annual anticipated
gross income may increase to an amount not to
7
exceed one hundred forty percent (140%) of
eighty percent (80%) of the median income
adjusted for family size for the purposes of
the IRCLHAProgram;
(c) A moderate -income person's annual
anticipated gross income may increase to an
amount not to exceed one hundred forty percent
(140%) of one hundred twenty percent (120%) of
the median income adjusted for family size for
the purposes of the IRCLHAProgram;
ii. For owner -occupied units: The income of
eligible persons may increase without limit.
b. A minimum of thirty percent (30%) of the funds must
be utilized by households which are classified as
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 Agency. For the 2000-2001 Fiscal Year, these
adjusted income levels are:
U
8
Household Gross Income Level
FY 2000-2001
Very Low Low Moderate
Household Size 50% of MI 80% of MI 120% of MI
1
Person
16,500
26,400
39,600
2
Person
18,850
30,150
45,240
3
Person
21,200
33,900
50,880
4
Person
23,550
37,700
56,520
5
Person
25,450
40,700
61,080
6
Person
27,300
43,700
65,520
7
Person
29,200
46,700
70,080
8
Person
31,100
49,750
74,640
MI = Median Income = $47,100
4. Monetary Allocations
Funds from the Indian River County Local Housing Assistance
Trust Fund (IRCLHATF) shall be distributed in conformance with
the following distribution requirements:
a. A minimum of seventy-five percent (75%) of each
fiscal year funds in the IRCLHATF shall be expended
on Indian River County Local Housing Assistance
Program Strategies which encompass construction,
rehabilitation or emergency repair activities for
eligible housing which will be utilized by eligible
persons.
b. A minimum of sixty-five percent (65%) of 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 (100%) of all funds held in the
IRCLHATF shall be expended in a manner consistent
with this Plan and Section 420.907 of the Florida
Statutes (F.S.). All funds expended from the
IRCLHATF shall be expended for administration and
implementation activities as outlined for the
assistance strategies identified, or for the
0
provision of support services as identified in
this Plan.
d. All funds deposited into the local housing
assistance trust fund for each state fiscal year
shall be encumbered by 12 months following the end
of fiscal year and shall be expanded by 24 months
following the end of 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 the median area purchase
price where the eligible housing is located, as established by
the United States Department of the Treasury. 90% of median
purchase price for Indian River County is $106,365 for new
homes and $98,523 for existing homes. 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. Housing Unit Rental Rates
Rental rates for housing units provided or acquired with
assistance from the IRCLHAProgram shall conform with the fair
market rental rates adjusted for housing unit size and income
category and published by the Florida Housing Finance Agency
for housing units in Indian River County. The rental rates
include expenditures for rent and utilities, excluding Cable
Television (CATV) and telephone service, and shall be adjusted
accordingly each year.
For the 2000-2001 operating year
rental rates for housing units a
Housing Finance Agency based upon
County are as follows:
10
of the Plan, the maximum
s provided by the Florida
unit size for Indian River
r�
Maximum Affordable Rent by
Income Category and by
Number of Bedrooms in Unit
Source: Florida Housing Finance Agency
T. 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. Applicants receiving assistance under more than
one Assistance Strategy shall comply with the following
limitations and requirements:
` a. The combined maximum monetary award per housing
unit which may be provided from any one or more of
the IRCLHAProgram Assistance Strategies shall not
exceed the combined maximums allowed by appropriate
strategies for appropriate income category.
L.�
b. The income status of an eligible person occupying a
housing unit receiving assistance from one or more
IRCLHAProgram Assistance Strategies shall comply
with the income classification restrictions as
specified by the applicable Strategies.
8. Financial Standing of Eligible Housing Units
Owners of all eligible housing units receiving assistance from
the IRCLHAProgram shall be required to maintain good financial
standing in relation to their respective housing units as
follows:
a. All owners shall maintain valid Property Owners or
Homeowners Insurance, as appropriate, for their
respective units. For owner financed mortgages,
proof of such insurance shall be provided to the
IRCLHAProgram on an annual basis; and
11
NUMBER OF BEDROOMS IN UNIT
ryEFF.
1
2
3
4
ess
$412
$441
$530
$612
$682
0$ian)$660
F
$706
$847
$980
$1,092
en80%ian)
Source: Florida Housing Finance Agency
T. 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. Applicants receiving assistance under more than
one Assistance Strategy shall comply with the following
limitations and requirements:
` a. The combined maximum monetary award per housing
unit which may be provided from any one or more of
the IRCLHAProgram Assistance Strategies shall not
exceed the combined maximums allowed by appropriate
strategies for appropriate income category.
L.�
b. The income status of an eligible person occupying a
housing unit receiving assistance from one or more
IRCLHAProgram Assistance Strategies shall comply
with the income classification restrictions as
specified by the applicable Strategies.
8. Financial Standing of Eligible Housing Units
Owners of all eligible housing units receiving assistance from
the IRCLHAProgram shall be required to maintain good financial
standing in relation to their respective housing units as
follows:
a. All owners shall maintain valid Property Owners or
Homeowners Insurance, as appropriate, for their
respective units. For owner financed mortgages,
proof of such insurance shall be provided to the
IRCLHAProgram on an annual basis; and
11
b. All owners shall pay all applicable property taxes
for their respective housing units according to the
tax payment schedule.
9. Non-discrimination Policy
The IRCLHAProgram and all eligible sponsors shall not
discriminate in the IRCLHAProgram application and award
process on the basis of race, creed, religion, color, age,
sex, sexual preference, marital status, familial status,
national origin, or handicap.
10. Recycled/Repaid Funds for the Indian River County Local
Housing Assistance Trust Fund (IRCLHATF)
All funds repaid to the IRCLHATF shall be recycled for re -use
by the IRCLHAProgram. The funds repaid shall be added to the
existing balance of the IRCLHATF and redistributed for use
through the IRCLHAProgram.
11. Support Services for Eligible Recipients
The IRCLHAProgram will not provide funding for support
services such as tenant counseling, adult/child care, or
transportation assistance for eligible recipients. The
IRCLHAProgram may provide financial assistance for the
provision of homeownership counseling activities for eligible
recipients and potential eligible recipients of the
IRCLHAProgram. The IRCLHAProgram may encourage the provision
of any of the previously described support services by private
or public, profit or not-for-profit organizations, while
providing technical assistance for the provision of such
support services. All applicants requesting
downpayment/closing cost assistance must attend the
Homebuyers' Educational Program provided through the local
lending consortium and/or Consumer Credit Counseling Service.
12. 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
Affordable Housing Advisory Committee (AHAC) and staff.
The county has leveraged SHIP funds by providing
downpayment/closing costs while financial institutions or
Habitat for Humanity provide first mortgages.
M
Ela
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 or deferred loans to eligible
recipients, whereby a portion of the initial cost encountered
in acquiring or providing housing may be eliminated entirely
or deferred indefinitely until a time when the eligible
recipients may then be able to afford the costs. The second
method of reducing the cost of housing is by the provision of
loans at an interest rate lower than current market rates
offered by private financial institutions. Such low interest
or no interest loans result in reduced costs by decreasing the
amount of funds to be paid back over time. By utilizing
assistance strategies which provide these two methods of
either deferring or reducing costs, the IRCLHAProgram will
encourage the provision of affordable housing.
A total of 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 seven strategies, emphasis and
priority for use will be placed upon the Impact Fee Grant,
Impact Fee Loan, Downpayment/Closing Cost Loan, Land
Acquisition Loan, 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:
1. Impact Fee Grants
a. Description
The IRCLHAProgram anticipates providing grants for the
payment of water, sewer, electric, and traffic impact
fees for eligible housing units for qualified eligible
persons or sponsors. Funds for impact fee grants shall
be transferred directly to the appropriate impact fee
account corresponding to the eligible housing unit.
Grants may be provided for connection to public services
for new construction or for existing owner -occupied
homes.
For new homebuyers, such grants will reduce the financial
cost, as the grant will eliminate the need to include
impact fees in the overall, up front, financing costs for
a housing unit. Grants provided to pay impact fees to
connect existing housing units to public services will
eliminate a financial burden for the owner who may be
unable to afford either making a lump sum payment of the
13
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 grants may be made for eligible
housing units located anywhere in the County,
including all municipalities located within
the County.
ii. Housing Unit Classification
All housing units shall be owner -occupied
residences. Mobile homes are not eligible.
iii. Applicant Classification
(a) Impact fee grants may be awarded to the
following eligible sponsors:
1. Non-profit Organizations
2. Very Low -Income Eligible Persons
3. Low Income Eligible Persons, only when
the impact fee grant is a match for
another housing program, such as the CDBG
program, HOME Investment Partnership
Program (HOME) and other state or federal
housing programs.
(b) Impact fee 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 grant
shall not exceed $7,500.00 or the total cost of
applicable impact fees for the eligible housing
unit, whichever is less.
14
ii. Repayment Terms/Timeframe
`.' The repayment of funds awarded as an impact fee
grant is not required, except in cases whereby the
eligible housing unit is sold to non -eligible
persons prior to termination of the unit's
affordable classification timeframe. In cases
where the unit is sold to a non -eligible person,
resale of the unit shall require repayment of the
original grant amount and applicable accrued
interest on the original grant amount.
iii. Interest Rate
There will be no applicable interest rate for
impact fee grants.
iv. Affordable Classification Timeframe
Housing units whose owners receive funds from the
IRCLHAProgram Impact Fee Grant Strategy Program
shall be occupied by the same qualified eligible
households who received the assistance for the
following periods:
1. For existing or new housing units: The
unit shall be occupied by a qualified
eligible household for a period of not
less than ten (10) years.
V. Compliance Agreement and Security Instrument
The applicant shall execute a Grant agreement with
the county. This Grant agreement shall serve as the
eligible recipient's contractual commitment to
comply with the requirements of the IRCLHAProgram.
2. Inpact Fee Loans
a. Description
The IRCLHAProgram anticipates providing no -interest loans
for the payment of water, sewer and traffic impact fees
for housing units for qualified eligible persons or
sponsors. Funds for impact fee loans shall be
transferred directly to the appropriate impact fee
account corresponding to the eligible housing unit.
Loans may be provided for connection to public services
for new construction, or for existing owner -occupied
homes.
For new homebuyers, such loans will reduce the financial
cost, as the loans will be deferred and therefore
15
eliminate the need to include impact fees in the overall,
up front, financing costs for a housing unit. Such loans
provided to pay impact fees to connect existing housing
units to public services will allow owners to defer the
payment of such fees until the time the housing unit is
sold.
When an existing home is to be rehabilitated under the
Rehabilitation Loan Assistance Strategy, combination
impact fee loan and the rehabilitation loan may be
awarded.
Impact fee loans may be leveraged with private funds and
all applicable state or federal programs.
b. Eligibility
i. Geographic Area
Impact fee loans may be made for eligible housing
units located anywhere in the County, including all
municipalities located within the County.
ii. Housing Unit Classification
All housing units shall be owner -occupied
residences. Mobile Homes are not eligible.
t J
iii. Applicant Classification
(a) Impact fee loans may be awarded to the
following eligible sponsors:
1. Non-profit Organizations
2. Very Low -Income Eligible Persons
3. Low -Income Eligible Persons
4. Moderate -Income Eligible Persons
(b) Impact fee 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 loan
shall not exceed $7,500.00 or the total cost of
applicable impact fees for the eligible housing
unit, whichever is less.
16
ii. Repayment Terms/Timeframe
Impact fee loans shall be deferred payment loans
whereby repayment of the loan amount and applicable
accrued interest occurs at the time that the
eligible housing unit is sold.
Eligible persons may pay
the loan and applicable
time.
iii. Interest Rate
back the entire amount of
accrued interest at any
There will be a zero interest rate for impact fee
loans to eligible very low and low income persons.
iv. Affordable Classification Timeframe
Housing units whose owners receive funds from the
IRCLHAProgram Impact Fee Loan Strategy Program
shall be occupied for the duration of the
outstanding impact fee 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 and
applicable accrued interest shall be required and
the affordability timeframe requirement terminated.
V. Compliance Agreement and Security Instrument
The county's Impact Fee 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.
3. Downpayment/Closing Cost/Principal Reduction Loans
a. Description
The IRCLHAProgram anticipates providing low-interest or
no interest loans to eligible persons for downpayments,
the payment of closing costs, and/or principal reduction
encountered for the purpose of acquiring an eligible
housing unit.
For the purchase of housing units, either new or
existing, the funds for downpayment/closing cost loans
17
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 downpayment/closing costs 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 41% 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
ensure that the household's total debt to income ratio
will not exceed 41%. 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
18
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 90%.
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) fixed rate 30 or 60 day delivery
(published daily in the Wall Street Journal) rounded up
to the nearest .125%.
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:
• For conventional loans, no points shall be charged
for conventional loans.
• 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
costs loan transactions.
Downpayment/closing cost loans may be leveraged with
loans from financial institutions, USDA rural
development, and other applicable state or federal
programs.
b. Eligibility
i. Geographic Area
Downpayment/Closing cost loans may be made for
19
eligible housing units located anywhere in the
County, including all municipalities located within
the County.
ii. Housing Unit Classification
All housing units shall be owner -occupied
residences. Mobile homes are not eligible.
iii. Applicant Classification
(a) Downpayment/Closing cost loans may be awarded
to the following eligible sponsors:
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 30% 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.
2.
3.
c. Basic Award Terms
Very Low -Income Persons
Low -Income Persons
Moderate -Income Persons
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, $10,000.00 for awards
provided to eligible low income persons, or
$15,000.00 for very low-income persons.
ii. Repayment Terms/Timeframe
Downpayment/Closing cost loans shall be deferred
payment loans whereby repayment of the loan amount
20
M
and applicable accrued interest occurs at the time
the eligible housing unit is sold.
Eligible persons may pay back the entire amount of
the loan and applicable accrued interest at any
time.
iii. Interest Rate
The interest rate for all loans granted to moderate
income persons under the IRCLHAProgram
Downpayment/Closing Cost Loan Strategy shall be a
three percent (3%) annual simple interest rate.
There will be a zero interest rate for eligible
very low and low income persons.
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 and
accrued interest shall be required and the l
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
eligible recipient's contractual commitment to
comply with the requirements of the IRCLHAProgram.
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
of the parcel or lot to the eligible sponsor is
completed.
21
The land acquisition loan shall be a primary or first
mortgage upon the subject property p y 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
t_. Land acquisition loans may be made for eligible
housing units located anywhere in the County,
including all municipalities located within the
County.
ii. Housing Unit Classification
All housing units utilizing assistance from the
IRCLHAProgram Land Acquisition Loan Strategy shall
be owner -occupied single-family residences. Mobile
homes are not eligible.
iii. Applicant Classification
(a) Land acquisition loans may be awarded to the
following eligible sponsors:
1. Non-profit Organizations
(b) Land acquisition loans shall result in
eligible housing for the following eligible
persons:
1. Very Low -Income Persons
2. Low -Income Persons
22
M
c. Basic Award Terms
i. Maximum Monetary Award
The maximum monetary award for a land acquisition
loan shall not exceed $10,000.00 per lot (unit).
ii. Repayment Terms/Timeframe
Land acquisition loans shall be deferred payment
loans, whereby repayment of the loan amount and
accrued interest occurs at the time the parcel/lot
and its corresponding eligible housing unit is
sold.
Eligible persons may pay back the entire amount of
the loan and applicable accrued interest at any
time.
iii. Interest Rate
There will be a zero interest rate for land
acquisition loans to eligible very low and low
income persons.
iv. Affordable Classification Timeframe
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 and
accrued interest 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.
23
71
5. Rehabilitation or Emergency Repair Loans
a. Description
The IRCLHAProgram anticipates providing low-interest or
no interest loans to eligible sponsors or persons to fund
all or a portion of the cost encountered in
rehabilitating existing or acquired housing units
eligible for occupancy by eligible persons.
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 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
► Room addition
► 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
Following are rehabilitation work activities not eligible for SHIP funding:
► Appliances
► Carpeting which is not part of larger rehabilitation work
► Patio and porch addition
► Painting which is not part of larger rehabilitation work
24
tom,.
M
► Building a garage,,
}
► Landscaping, sodding, and similar work
► Any kind of cosmetic work
► Swimming pool and similar facilities
► Shutters
�j
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 110% of the estimate provided by the county
designated inspector. Once the contractor estimate is
selected and the Rehabilitation Loan Amount 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.
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
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 fund will be paid
for any work completed prior to the notice to proceed.
25
Besides general rehabilitation activities funds may be
provided for emergency 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 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 for eligible
housing units located anywhere in the County,
including all municipalities located within the
County.
ii. Housing Unit Classification
Eligible housing units receiving IRCLHAProgram
Rehabilitation Loans may be either owner -occupied
or renter occupied single-family or multiple -family
residences. Mobile homes are not eligible.
iii. Applicant Classification
(a) Rehabilitation loans may be awarded to the
following eligible sponsors:
1. Non-profit Organizations
2. Investors
3. Very Low -Income Eligible Persons
4. Low -Income Eligible Persons
5. Moderate -Income Eligible Persons
(b) Rehabilitation 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
26
The maximum monetary award for a rehabilitation
loan shall not exceed $20,000.00 per single-family
or. multiple -family housing unit. Additionally,
rehabilitation loans for multiple family structures
shall also be limited to a maximum monetary award
of $60,000.00 for 3 or more units.
ii. Repayment Terms/Timeframe
Rehabilitation loans shall be deferred payment
loans, whereby repayment of the loan amount and
accrued interest occurs as follows:
(a) Owner -occupied single-family homes: The loan
amount and applicable accrued interest shall be
repaid at the time the eligible housing unit is
sold.
(b) Non -owner -occupied single family homes and
multiple -family structures: Repayment of the full
rehabilitation loan amount and applicable accrued
interest shall be required fifteen (15) years
following the date of issuance of the loan.
Eligible sponsors or persons may pay back the
entire amount of the loan and applicable accrued
interest at any time.
iii. Interest Rate
There will be a zero interest rate for
rehabilitation loans to eligible very low and low
income persons and 3% annual simple interest for
moderate income persons.
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:
(a) For owner -occupied single-family housing
units: The unit shall be occupied for the duration
of the outstanding rehabilitation loan by the same
qualified eligible households who received the
assistance.
(b) For rental single-family housing units, and
multiple -family housing units: The unit shall be
M
occupied by a qualified eligible household for a
period of not less than fifteen (15) years. Upon r
completion of the fifteen (15) year affordability
timeframe, the outstanding rehabilitation loan and
its applicable accrued interest shall be due in
full for repayment to the IRCLHATF. Indian River
County Community Development Department staff will
monitor the household's eligibility on an annual
basis for the 15 year life of the rental
rehabilitation assistance loan period.
Upon the sale of any assisted single-family or
multiple -family housing unit by the owner,
repayment of the outstanding loan amount and
applicable accrued interest 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. l
6. Rehabilitation or Emergency Repair Grants
a. Description
The IRCLHAProgram anticipates providing rehabilitation
grants to eligible very low persons to fund all or a
portion of the cost of rehabilitating existing 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 will not be awarded
for rehabilitation activities associated with
downpayment/closing cost loan assistance.
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.
Roof, including replacement of all rotten wood
Plumbing work as needed
Electrical work as needed 1fto
28
► Heating and air conditioning, including insulation and ceiling fans
'j 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
► 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, with the county's
assistance, shall choose one of the contractors to
complete the identified rehabilitation work, provided
that the contractor cost estimate does not exceed 110% of
the estimate provided by the county designated inspector.
Once the contractor estimate is selected and the
Rehabilitation Grant Amount 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
29
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 notice to
proceed.
Besides general rehabilitation activities, funds may be
provided for emergency 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/emergency repair grants may 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 grants may be made for eligible
housing units located anywhere in the County,
including all municipalities located within the
County.
ii. Housing Unit Classification
Eligible housing units receiving IRCLHAProgram
Rehabilitation Grants must be owner -occupied
single-family residences. Mobile homes are not
eligible.
iii. Applicant Classification
(a) Rehabilitation grants may be awarded to the
following eligible persons:
1. Very Low -Income Eligible Persons
30
'N
M
(b) Rehabilitation grants shall result in eligible
housing for the following eligible persons:
1. Very Low -Income Persons
c. Basic Award Terms
i. Maximum Monetary Award
The maximum monetary award for a rehabilitation
it grant shall not exceed $20,000.00 per each eligible
single-family housing unit.
ii. Repayment Terms/Timeframe
The repayment of funds awarded as a rehabilitation
grant is not required, except in cases where the
eligible housing unit is sold prior to termination
of the unit's affordable classification timeframe
(10 years). In cases where the unit is sold, the
original grant amount must be paid back at the time
of resale of the unit.
iii. Interest Rate
There will be no applicable 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 by the same qualified eligible
household who received the assistance for a period
of not less than ten years (10) years.
V. Compliance Agreement and Security Instrument
The applicant shall execute a Grant agreement with
the county. This Grant agreement shall serve as the
eligible recipient's contractual commitment to
comply with the requirements of the IRCLHAProgram.
7. Land Hank - 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
31
the purpose of providing sites for the development of
eligible housing units by eligible sponsors for eligible f?'
persons. The funds for acquisition shall be delivered at
the time of closing, whereby the transaction transferring
ownership of the parcel or lot to the county is
completed. This Market Purchase Strategy may be
considered a strategy of "last resort", whereby it may be
utilized in the event unexpended or encumbered funds for
the IRCLHAProgram are available and expenditure through
the remaining IRCLHAProgram Assistance Strategies is
unlikely.
The acquired property shall be classified as a monetary
asset of the IRCLHATF to be utilized as an equivalent
loan to an eligible sponsor or person for the development
of an eligible housing unit.
Upon transfer of the acquired property to an eligible
sponsor, the effective land bank loan shall be secured by
a primary or first mortgage upon the subject property
until the eligible sponsor obtains the construction
and/or permanent loan financing for the development and
construction of a housing unit. At the time the
construction/permanent financing is provided for the
housing unit, the land bank loan shall be subordinated to
the construction/permanent mortgage.
For the purposes of the IRCLHAProgram, funds expended for
property acquisition under the Land Bank Market Purchase
Assistance Strategy shall be classified as a
homeownership expenditure, and an eligible housing unit
must be constructed and certified for occupancy on the
acquired property within one year of the closing
transaction date. Failure to complete construction of
and obtain a Certificate of Occupancy for a housing unit
within one (1) year of the closing transaction date shall
constitute grounds for foreclosure to obtain possession
of the property which may be utilized as a land bank
acquired property by the IRCLHAProgram.
b. Eligibility
i. Geographic Area
Parcels acquired through land bank acquisitions for
the development of eligible housing units may be
located anywhere in the County, including all
municipalities located within the County.
32
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 eligible sponsors:
1. Non-profit Organizations
(b) Land bank acquisitions shall result in
eligible housing for the following eligible
persons:
1. Very Low -Income Persons
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 $10,000.00
3 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 effective loan
amount (the value of the property) and applicable
accrued interest occurs at the time the parcel or
lot and its corresponding eligible housing unit is
sold.
Eligible persons may pay back the entire amount of
the loan and applicable accrued interest at any
time.
iii. Interest Rate
There will be a zero interest rate for land bank
loans to non-profit organizations for eligible very
low and low income persons.
33
iv. Affordable Classification Timeframe
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 and applicable accrued interest 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.
8. Land Hank - Tax Deed Purchase
a. Description
The Indian River County, through the Board of County
Commissioners and the IRCLHAProgram, may acquire vacant
parcels or lots by purchasing the properties via Tax Deed
Auction for the purpose of providing sites for the
development of eligible housing units by eligible
sponsors for eligible persons. The funds for acquisition
shall be delivered at the time of tax deed sale, whereby
the transaction transferring ownership of the parcel or
lot to the county is completed. This Tax Deed Purchase
Strategy may be considered a strategy of "last resort",
whereby it may be utilized in the event unexpended or
encumbered funds for the IRCLHAProgram are available and
expenditure through the remaining IRCLHAProgram
Assistance Strategies is unlikely.
The acquired property shall be classified as a monetary
asset of the IRCLHATF to be utilized as an equivalent
loan to an eligible sponsor or person for the development
of an eligible housing unit.
Upon transfer of the acquired property to an eligible
sponsor, the effective land bank loan shall be secured by
a primary or first mortgage upon the subject property
34
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 eligible housing units may be
located anywhere in the County, including all
municipalities located within the County.
ii. Housing Unit Classification
All housing units resulting from the IRCLHAProgram
Land Bank Acquisition Strategy shall be owner -
occupied single-family residences. Mobile homes
are not eligible.
iii. Applicant Classification
(a) Land bank acquisitions may be awarded to the
following eligible sponsors:
1. Non-profit Organizations
(b) Land bank acquisitions shall result in
eligible housing for the following eligible
persons:
1. Very Low -Income Persons
2. Low -Income Persons
35
7777777
c. Basic Award Terms
i. Maximum Monetary Award
The maximum monetary award for a land bank
acquisition expenditure shall not exceed $10,000.00
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 effective loan
amount (the value of the property) and accrued
interest occurs at the time the parcel or lot and
its corresponding eligible housing unit is sold.
Eligible persons may pay back the entire amount of
the loan and applicable accrued interest at any
time.
iii. Interest Rate
There will be a zero interest rate for land bank
loans to non-profit organizations for eligible very
low and low income persons.
iv. Affordable Classification Timeframe
Housing units whose owners receive funds from the
IRCLHAProgram Land Bank Acquisition 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 and applicable accrued interest 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
01
_ shall serve as the eligible recipient's contractual
commitment to comply with the requirements of the
IRCLHAProgram.
C. Estimated Unit Assistance and Pricing for the
IRCLHAProgram
Use of the listed Local Housing Assistance Program Strategies
by the IRCLHAProgram will result in the provision of eligible
housing units for residents of the county. The housing units
assisted can be expected to serve various populations of
eligible recipients. Exhibits "A", "B" and "C", respectively
list the Housing Delivery Goals for funds provided by the SHIP
Program for FY 2000-2001, FY 2001-2002, and FY 2002-2003.
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.
MW
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
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 Fiscal Year 2000-2001
Salaries and Fringe Benefits $60,000.00
Office Expenses 13,577.00
Travel 500.00
Advertising 1.000.00
Total $75,077.00
Item Fiscal Year 2001-2002
Salaries and Fringe Benefits $60,000.00
Office Expenses 13,577.00
Travel 500.00
Advertising 1.000.00
Total $75,077.00
it Fiscal Year 2002-2003
Salaries and Fringe Benefits $60,000.00
Office Expenses 13,577.00
Travel 500.00
Advertising 1.000.00
Total $75,077.00
38
Fa
MR
4.
Application Periods
Applications for participation in the IRCLHAProgram will
be accepted on a year round basis. Advertisements and
notices to promote the IRCLHAProgram shall include
application information for the IRCLHAProgram, and
production of the advertisements and notices shall
constitute a part of the administrative application
preparation and review processing activities.
Funds from the IRCLHATF shall be allocated for
encumbrance on a first application complete, first
application served basis as applicants are approved and
qualified for participation in the program.
No anticipated funds for future commencing fiscal years
shall be encumbered. Furthermore, the encumbrance of
funds in a manner which would not comply with the
requirements of the IRCLHAProgram and the IRCLHAPlan is
not permitted.
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 thirty (30) 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.
IRCLHAProgram Applicant Criteria
Eligible persons or sponsors applying for participation
in the IRCLHAProgram shall comply with the following
requirements:
a. Income Level
All applicants shall be classified as very low-,
low-, or moderate -income persons; however, in cases
where the applicant is an eligible sponsor but not
an eligible person, the assisted housing unit must
be occupied by persons classified as very low-, or
low-income persons.
39
b. Employment Verification
Applicants seeking assistance from the
IRCLHAProgram to purchase eligible housing units
shall be eligible persons meeting one of the
following employment criteria:
i. Suitable documentation indicating current,
continuous employment for a minimum of one (1) year
in the same position or within the same business or
firm; or
ii. Suitable documentation indicating current
employment (within twelve (12) months of an
application submittal) as a seasonal farmworker,
with a minimum of two (2) consecutive years as a
seasonal farmworker, whereby the first period of
seasonal employment shall have been for the full
duration of the season, and the second period shall
have been for a minimum of one-half 0A) 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
migrant farmworkers, shall be exempt from any
employment requirement for participation in the
IRCLHAProgram. t
c. 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
Agency (a copy attached as exhibit D).
d. Mortgage/Rent Verification
The amount of monthly housing expenses paid by
eligible persons for owner occupied or rental
housing units assisted by the IRCLHAProgram shall
be considered affordable as defined in Rule 9I-
37.002, FAC.
e. Credit Verification
Eligible persono receiving assistance from the
IRCLHAProgram shall maintain a valid, satisfactory
credit rating for a minimum of one (1) year prior
40
Ell
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 all other applicants except
applicants for rehabilitation 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
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
Applicants for rehabilitation 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.
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
41
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
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 all other applicants, 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 the county'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
M
42
If the home is in excessive disrepair and
cannot be fixed, the loan application will not
r. 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
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
forwarded 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.
43
G.1
b. Applicants approved for participation in the
IRCLHAProgram shall be issued a Notice of Commitment
indicating that the applicant has qualified for
participation in the IRCLHAProgram; this notice shall
also indicate the award type and the amount of the award.
The Notice of Commitment shall be valid for a maximum of
Ninety (90) working days. The applicant must obtain a
written extension letter to maintain the Notice of
Commitment beyond the ninety (90) day maximum.
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:
W
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:
a satisfactory building code inspection or
Certificate of Occupancy, as appropriate,
shall be obtained 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.
44
Preparation of the mortgage document(s) shall
comply with all Federal, State, and Local
regulations.
The mortgage documentation shall specify the
IRCLHAProgram Strategy assisting in the provision
of the housing unit, the amount of the funding
award for the unit, the applicable interest rate
for the funding award, the commencement and
termination dates for the unit's required
affordability classification timeframe and unit
resale requirements as applicable.
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
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
Compliance verification with this requirement
shall occur as needed.
45
iv. Rental Rate Verification
1�
Compliance verification with this requirement
shall be conducted on a once -a -year basis as a
minimum; however, this compliance verification
activity may be conducted on a more frequent
or staggered basis.
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
Hoard 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 in two (2) years.
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 renter- and owner -occupied housing units
assisted by the IRCLHAProgram shall be subject to
repayment of the full loan amount and applicable accrued
interest.
The payment of the principal loan amount and applicable
accrued interest shall be consistent with provisions
identified for each assistance strategy.
The amount of funds calculated by application of the
repayment provision shall be paid by the selling
household and redeposited into the Indian River County
Local Housing Assistance Trust Fund for redistribution by
the IRCLHAProgram. However, the initial transfer of
46
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 both the original loan/grant principal amount
and its applicable accrued interest 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 9I-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 9I-37 FAC.
Upon determination that the IRCLHAProgram will be unable
to comply with the requirements of the IRCLHAPlan or Rule
9I-37 FAC:
i. The Community Development Department shall provide
written notification of non-compliance to the
Florida Housing Finance Agency within ten (10)
working days of the non-compliance determination;
and
ii. Amendment proceedings to revise the IRCLHAPlan
shall be commenced within twenty (20) working days
of the non-compliance determination in order to
reconcile the discrepancy between the requirements
of the IRCLHAProgram and the IRCLHAPlan.
b. The Community Development Department shall monitor
expenditures of funds distributed from the State of
47
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
,isuch as the Home Investment Partnership Program (HOMER
as permitted by rule 91-37 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 50% 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 committment 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
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48
September 15th of the calendar year for the FHFC to
complete its compliance review for the AR;
ii. Annual Report Information
The AR shall include the summary information
required by Florida Statute Section 420.9075(7) and
Rule 9I-37.016, Florida Administrative Code. Such
information shall include, but not be limited to,
the following:
(a) The number of people served by income, age,
family size, and race, as well as data regarding
any special needs populations such as farmworkers,
rural residents, and the elderly;
(b) The number of units and the average cost of
producing units under each program;
(c) The average sales price of a single-family
unit and the amount of rent charged for a rental
unit based on unit size;
(d)The number of mortgages made and the rate of
default;
(e) A description of the implementation of the
affordable housing incentive plan and the resulting
reduction in housing costs;
(f) A concise description of the support services
that are available to the residents of affordable
housing provided by local programs; and
(g) Other data or affordable housing
accomplishments considered significant by the
Indian River County Board of County Commissioners.
iii. Timetable for Expenditures
The administration and implementation activities
associated with conducting the IRCLHAProgram may proceed
at varied rates throughout each fiscal year. The
estimated timeline at which each of the activities may
proceed throughout each fiscal year for all strategies is
indicated in the following chart:
49
FISCAL YEAR 2000-2001(July
1, 2000
-June 30
2001)
Month of Fiscal Year
Activity
1 2 3 4 5
6 7
8 9
10
11 12 24**
36**
J A S 0 N
D J
F M
A
M J
Advertising the
Availability of Funds*
X
Application Review
X X X X
X X
X X
X
X X
Application Approval
X X X X
X X
X X
X
X X
Encumbrance of Funds**
X X X X
X X
X X
X
X X
X
Expenditure of Funds—
X X X X
X X
X X
X
X X
X
X
Compliance Monitoring
X X X X
X X
X X
X
X X X
X
FISCAL YEAR 2001-2002(July 1,
2001
June
30
2002)
Monthof Fiscal Year
Activit v
1 2 3 4 5
6 7
8 9
10
11 12 24**
36--
i A S 0 N
D J
F M
A
M J
Advertising the
Availability of Funds-
X
Application Review
X X X X
X X
X X
X
X X
Application Approval
X X X X
X X
X X
X
X X
Encumbrance of Funds**
X X X X
X X
X X
X
X X
X
Expenditure of Funds***
X X X X
X X
X X
X
X X
X
X
Compliance Monitoring
X X X X
X X
X X
X
X X X
X
FISCAL YEAR 2002-2003(July
1, 2002 June
30 2003)
Month of Fiscal Year
Activity
1 2 3 4 5
6 7
8 9
10
11 12 24—
36—
J A S 0 N
D J
F M
A
M J
Advertising the
Availability of Funds*
X
Application Review
X X X X
X X
X X
X
X X
Application Approval
X X X X
X X
X X
X
X X
Encumbrance of Funds—
X X X X
X X
X X
X
X X
X
Expenditure of Funds—
X X X X
X X
X X
X
X X
X
X
Compliance Monitoring
X X X X
X X
X X
X
X X X
X
* Advertise availability
of funds
and
application period
** Encumbrance of funds
(12 months
following
end of state
FY)
*** Expenditure of funds
(24 months
following
end of state
FY)
Note:Annual report must be
submitted to
the FHFC by
September 15 of
each
year
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IV. AFFORDABLE HOUSING INCENTIVE STRATEMES
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 20% 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)
51
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
------ -:c-- -------------- �.• .-..s...�. any va. a.aac
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
allowable
Material equal
Material equal
units)
to a 10' wide
to a 20' wide
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 1roadways
More than 30$
«_
10%
5% or
10%
10-20$
--Y - a L allu 1JCvt!,Lup ReIIC Kegulations
- 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.
4. For the purpose of this section, an affordable dwelling
unit shall be a dwelling unit which:
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52
a. 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.
5. 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,
shall comply with the following requirements:
a. The affordable dwelling unit shall remain available
as an affordable dwelling unit for the following
periods:
i. 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.
ii. 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;
b. 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.
C. 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 occupying the 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)
53
percent of the county's median household income
adjusted for household size.
d. With respect to owner -occupied affordable dwelling
units provided under the provisions of the section:
i. The owner -occupant's household annual adjusted
gross median income may increase without limit
following the househdld's purchase of the
affordable dwelling unit; and
ii. Resale of an affordable dwelling unit by the
initial owner or any subsequent owner shall be
subject to one of the following provisions:
a. 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.
b. 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.
e. 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.
f. 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:
54
i. 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
ii. Identify the units corresponding fifteen
or twenty year affordability timeframe;
and
iii. 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
iv. 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
V. 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.
vi. 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.
vii. Specify that no provision of the
restrictive covenant may be amended
without the consent of the Beard of
County Commissioners of Indian River
County.
6. An applicant may obtain a development density bonus
for a planned development project in compliance
with one of the following options:
55
a. 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:
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
allowable
Material equal
Material equal
units)
to a 10' wide
to a 20' wide
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 Iroadways
More than 30$
10$
5% or 1
10$
10-20%
* Buffer types are identified in Chapter 926 of the county's Land
Development Regulations
b. 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.
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56
• Small Lot Subdivision
- Section 971.41(9) of the LDRs
(a) Districts requiring administrative permit approval,
(pursuant to the provision of 971.04):
RS -6, RT -6, RM -6, RM -8, RM -10
(b) 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:
a. Conform to the standard applicable size and
dimension criteria of the respective zoning
district in which the project is located; or
b. Comply with the following size and dimension
criteria:
Minimum lot width:
Minimum lot size:
Minimum yard setbacks:
Front:
Side:
Rear
Lot width (feet):
t 50 & <55
i 55 & <60
i 60 & <65
x 65 & <70
57
50 feet
5,000 sq. ft.
20 feet
7 feet; 5 feet on lots
fronting a cul-de-sac
circle
Minimum rear yard setbacks
shall be provided, based
upon lot width, as
indicated in the table
below:
Rear Yard (Feet)
30
27
24
22
4. Interior lots (those
determined not to be
perimeter lots) and those perimeter lots which
abut a property having
a commercial/industrial
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 allowed 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:
A. 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.
H. The buffer improvement(s) shall be located
within a buffer easement(s) as designated on
58
the small lot subdivision plat. Said
easements) 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
improvement(s) shall be provided in accordance
with the provisions of section 913.08 of the
land development regulations.
C. 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
59
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
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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.
11. 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
or parcel or on a combination of lots or
parcels unified under a recorded unity of
title document.
12. 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
COMHERCIAL 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: no planning and zoning commission review or approval
required if associated with a site plan reviewed as an
administrative approval or minor site plan).
61
(a) Districts requiring administrative permit approval,
(pursuant to the provisions of 971.04): MED, CN, CL, CG fes"
(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;
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; t
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.
e 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;
62
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Major site plan - 6 weeks;
Special exception approval - 13 weeks
Whenever these review times increase by 150% 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 exceecdecl for
affordable housing projects.
e Housing Cost Impact Review Process
- Housing Element Policy 1.7
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
- Housing 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.
e 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
parameters, as provided for herein.
63
(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:
a.
Minimum
lot size (in
square feet);
b.
Minimum
lot width (in
feet);
C.
Minimum
lot frontage
(in feet);
d.
Minimum
yard setbacks
for buildings: front, rear, side
e.
Minimum
yard setbacks
for accessory structures (such as
pools, patios, and decks);
front, rear, and side;
f.
Maximum
lot coverage;
building(s) and impervious surface
area;
g. Minimum separation distances between buildings;
h. Minimum right-of-way widths (by road type);
i. Minimum open space per lot and by phase (Note: the
minimum open space for the entire project shall meet or
exceed the requirements of section 915.18);
j. 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 other provisions
of this chapter.
• Eotablishing/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.
64
0
- 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
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.
- Housina 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.
65
- Housina 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
- 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.
M
M
V. PLAN S
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
I -M
transmit the IRCLHAPLan and amendment proposals to the
FHFC for compliance review.
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 days of adoption of the
revised IRCLHAPlan, Community Development Department
staff shall transmit two (2) certified copies of the
revised and adopted IRCLHAPlan to the Florida Housing
Finance Corporation.
M
68
III
CERTIFICATION TO
FLORIDA HOUSXNO FINANCE CORPORATION
■u
III Local Government: Indian River County
1. The county 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,
or national origin.
3. A process for selection of recipients for funds has been
developed.
4. The 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 county 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.
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 maintained with a qualified depository
for all SHIP funds as well as moneys 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. SHIP funds will not be pledged for debt service on bonds or as
rent subsidies.
ME
14. 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.
15. 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.
16. 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.
17. The document being submitted is the Indian River County Local
Housing Assistance Plan and all provisions of the plan conform
to the requirements of Sec. 420.9072, F.S., and Chapter 9I-37,
F.A.C.
Witness
Commissioner Kenneth R. Macht
Chairman. Board of County Commissioners
Witness Name and Title
Atte! J.R. BARTON
(seal) CL GIRGUIT
u\v\h^\1 an66.trn
70
August 17, 1999
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EJIHBIT 0
A. Assets That Should Be Considered
4 Assets That Should Not Be Considered
I.
Savings accounts sad the average 6 -month balance
1.
Necessary personal property, except as meted in 10.
of checking accounts.
2.
Interest in Indian trust lands.
2.
Stocks. bonds. savings certificates. money market
bads. and other investment accounts.
3.
Assets that aro a part of as active business or
farming operation. (Note: Rental properties aro
3.
Equity in real property or other capital
comsldwed personal utets amless real estate is the
imvestwels. Equity Is the estimated current
appliames main *=podem.)
market value of the asset inn the aopoid balance on
allies= secured by the asset and reasonable costs
d.
Assets mot accessible to the family and that provide
(such as broker fees) that we=ld be incurred is
no amuse for the family. For example, an abused
selling the asset Under HOME and SHIP. equity
spoons who legally sad jointly owns a house but (1)
is the family's primary residence is not assidered
does aot live h the house; (2) receives no income
for home owner repair programs.
from ownership of the house; and (3) has no ability
to ten the house.
4.
The value of land. M excess of load allowable for
bwiag production In an asset. (SHIP Program
S.
Vehicles specially equipped for the handicapped.
ONLY}
C
Equity in owner -occupied cooperation and
S.
Cash value of trusts that are available to the
menufaetured homm in which the family live.
household.
7.
Assets bold in eppliasts' name but which are
6.
IRA. Keegb. sad similar retirement savings
actually eamed 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
bods that can be withdrawn without redriag or
on income.
terminating employment. This amount would be
c. Not to be confused with joist ownership.
reduced by any penalty for early withdrawal.
A
Cash valet of life insurance policies.
0.
Assets that. although owned by more than oat
person, allow unrestricted access by the applicant.
9.
Lump -tuna receipts. such as inheritances. capital
gains, lottery winnings6 insurance settlements. and
other Claims.
10.
Personal property held as on investment such as
gems, jewelry, coin collections, antique cars. eta
11.
Assets disposed of for less thea fair market value
during two years preceding certification or
recertification.
.Isslll t thtllfa
34
r
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
A. Income Inclusions motion agreement unless the applicant:
1. Gross amount (before any payroll
deductions) of wages, salaries. overtime
PRY, 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_1 of periodic social security
payments. This includes payments
received by adults on behalf of individuals
under the age of 18 or by individuals
wider 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.
S. 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, arty 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 is counted as
income, even if it is garnish from wages.
9. Interest, dividends, and other income from
n>et 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 ptriodic
Payments. (Winnings paid in a lump
stun are included in net family assets
N= in Annual Income).
11. Recurring monetary contributions or
Sift regularly received from persons
W living in the writ, including cent or
utility payments regularly paid on
behalf of the family. This can include
individualized rent concessibns or
Payments which are similar to Din -kine
Payments for services rendered or to be
tendered including the entire amount of
resident service stipends if the stipend
exceeds $200 per month. Refer to
Section 6.3, B.2.
juer I MIS Ineenm
2-S •
12. NOTE: FOR INTERMEDIATE
CARE FACILITIIES 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..
$35). annual income must include:
A. the SSI payment the tenant would
receive if he/she were not living in a
group home. AND
b. all income the tenant receives from
aoON$ 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 minors, 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
.+wrr s sw
Z�
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 $480 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 Aa 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, ran -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.
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. 985&x.
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 52,000
per year of income received by
individual indianrs 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 tn1m.
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 Tnbe.
It. Payments, rebates, or credits received
under Federal Low -Income Home
Energy Assistance Programs. Includes
any winter differentials given to elderly
persons.
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 Cotes, veterans'
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2-7
employment programs, state job participation in these programs. These 0"N
training programs. career intern expenses include special equipment,
programa). clothing, transportation, child care, etc.
j. The full amount of student financial
In general. income exclusions fall into the
assistance either paid directly to the
following categories and should = be counted
student or to the educational institution.
as income.
This includes scholarships, grants,
fellowships and any other kind of
Income of certain household members that
student financial assistance. It does not
should not be counted, including earned
matter what the assistance is actually
income of minors and income attributable
used for.
to foster children or five -in aides; and
,f,.
k. Payments received after January 1.
Amounts that are counted as assets rather
1989, from the Agent Orange
than income, such as lump -sum lottery
Settlement Fund or any other fund
winnings.
established pursuant to the settlement in
the In Re: Agent Orangg_product
2.4 WELFARE ASSISTANCE
liability Ijljgation . M.D.L. No. 381
(E.D.N.Y).
AS INCOME
Welfare assistance such as AFDC, SSI, etc. are
1. Payment received under the Title V of
counted as income and public agencies should use
the Older Americans Act (Green
the actual gross amount of Welfare Assistance
Thumb, Senior Aides, Older American
received by the household. This amount should
Community Service Employment
be annualized.
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
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24