HomeMy WebLinkAbout1994-048RESOLUTION NO 94-48
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF INDIAN
RIVER COUNTY, FLORIDA APPROVING THE COUNTY'S REVISED LOCAL
HOUSING ASSISTANCE PLAN FOR FY 1994-95, FY 1995-96, AND FY
1996.97 AND PROVIDING FOR THE STATE HOUSING INITIATIVES
PARTNERSHIP PROGRAM (SHIP) REQUIREMENTS.
WHEREAS, Chapter 420, Florida Statutes, describes the State
Housing Initiative Partnership program (SHIP), which has been
established 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 approved Local Housing Assistance plan expires on
June 30, 1994; and
WHEREAS, according to Rule 9I-37.005(2), Florida
Administrative Code, Local Governments must submit a new Local
Housing Assistance Plan by May 2, 1994 to be eligible for FY 1994-
95 SHIP funding; and
WHEREAS, on March 10, 1994, the Affordable Housing Advisory
Committee recommended that the Board of County Commissioners
approved the revised plan; and
WHEREAS, on April 5, 1994, the Board of County Commissioners
considered the adoption of the revised 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 1994-95, FY 1995-96, and FY 1996-97 is hereby approved
by the Board of County Commissioners
Section 3.
The Board of County Commissioners directs staff to submit a
copy of the Indian River County Local Housing Assistance Plan
to the Florida Housing Finance Agency by certified mail.
EXHIBIT "C"
Resolution 94-48
Section 4.
The only change to the maximum and average cost per unit is
for Downpayment/Closing Cost/Principal reduction assistance
loans. The maximum amount of the Downpayment/Closing
Cost/Principal reduction assistance loan will be $10,000, and
the average amount will be $9,000.00
Section 5.
The County shall continue utilizing ten percent (108) of
available SHIP funds for administration of the SHIP program.
Section 6.
The County's recapture provision will be based on the Table
provided on the revised Local Housing Assistance Plan.
The foregoing resolution was offered by Commissioner Adams ,
and seconded by Commissioner Eggert , and being put to a vote,
the vote was as follows:
Chairman, John W. Tippin &Le
Vice Chairman, Kenneth R. Macht &y_e
Commissioner, Richard N. Bird &y_e
Commissioner, Carolyn K. Eggert ALe
Commissioner, Fran B. Adams ae
The Chairman thereupon declared the resolution duly passed and
adopted this 5 day of April , 1994.
Board of County Commissioners
of Indian River County
1 .---
. By
�/ ohn W. Tippin, Chairman
Attest by;
Jeffrey K. Barton:,'
Clerk
APPROVED AS TO FORM f►ND LEGAL SUFFICIENCY
BY: �[..r ��l't-`c.e_ --J
William G. Collins, II " '' j no.,•, -
no,
Deputy County Attorney--
u\v\h\hou.ord
EXHIBIT "C"
Z ND I AN R Z VE R
COUNTY
LOCAL MC3WOXNG
AS S Z STANC E
PLAN
GUIDELINES, PROCEDURES,
AND STRATEGIES
FOR THE
INDIAN RIVER COUNTY
LOCAL HOUSING ASSISTANCE PROGRAM
FY 1994-1995
FY 1995-1996 and
FY 1996-1997
TABLE OF CONTENTS
Page
I. INTRODUCTION
1
Purpose
and Intent
1
Background
1
Plan
Effective Date and Duration
3
Implementation Authorization
3
II. DEFINITIONS
3
III. THE
INDIAN RIVER COUNTY LOCAL HOUSING
ASSISTANCE PROGRAM (IRCLHAProgram)
6
A.
General Program Requirements
6
1.
Advertisement and Notice of Fund Availability
6
2.
Housing Unit Occupancy
7
3.
Income Classification Levels
8
4.
Monetary Allocations
9
5.
Housing Unit Sales/Purchase Price
12
6.
Housing Unit Rental Rates
12
7.
Combined Assistance Strategy Awards for
Housing Units
13
8.
Financial Standing of Eligible Housing Units
13
9.
Non-discrimination Policy
13
10.
Recycled/Repaid Funds for the Indian River
County Local Housing Assistance Trust Fund
(IRCLHATF)
14
11.
Support Services for Eligible Recipients
14
B.
Local Housing_ Assistance Program Strategies
14
1.
Impact Fee Grants
15
2.
Impact Fee Loans
18
3.
Downpayment/Closing Cost Loans
20
4.
Land Acquisition Loans
23
i
5. Rehabilitation Loans
6. Land Bank - Market Purchase
7. Land Bank - Tax Deed Purchase
C. Estimated Unit Assistance and Prices
for the IRCLHAProgram
D. IRCLHAProgram Administration/Implementation
Activities
1. Program Expenditures
2. Application Periods
I. Application Processing
4. IRCLHAProgram Applicant Criteria
a. Income Level
b. Employment Verification
c. Asset Verification
d. Mortgage/Rent Verification
e. Credit Verification
f. Homebuyer Status
5. Application Review
6. Transfer/Dispersal of Funds for Housing Units
a. Housing Unit Inspection/Certificate of
Occupancy
b. First Mortgage/Subordinated First
Mortgage Documentation
7. IRCLHAProgram Compliance Monitoring
a. Compliance Review Activities
i. Property Tax Payment Verification
ii. Homeowner/Property Owner
Insurance Verification
iii. Owner and Eligible Person
Occupancy Verification
iv. Rental Rate Verification
b. Non-compliance Notification
B. Assisted Housing Unit Resale
9. Data Development and Compilation
ii
25
28
31
34
35
35
36
36
37
37
37
38
38
38
38
38
39
39
40
40
40
41
42
43
10. IRCLHAPlan Compliance Monitoring 43
IV. PLAN AMENDMENTS
47
A. Authority
47
B. Timing
47
C. Procedures
47
V. CERTIFICATION
49
VI. EXHIBITS 51
A. Table 1: Fiscal Year 199Q4 - 19915 Housing
Delivery Goals for SHIP Funds by Households, Units
and Dollars
iii
LIST OF TABLES
TABLE NO. TITLE PAGE
Table 1 Fiscal Year 19914 - 1991_5 Section VI
Housing Delivery Goals Exhibit A
for SHIP Funds by Households,
Units, and Dollars
Table 2 Fiscal Year 19915 - 19916 Section VI
and 1996-1997 Exhibit B
Housing Delivery Goals
for SHIP Funds by Households,
Units, and Dollars
Table 3 Estimated SHIP Fund Expenditures
for Construction, Rehabilitation, 36
and Homeownership by Assistance Strategy
IV
I. INTRODUCTION
Purpose and Intent
This document, titled Indian River County Local Housing
Assistance Plan, outlines and provides the general guidelines,
operating procedures and assistance strategies of the Indian
River County Local Housing Assistance Program as established
by the Indian River County Board of County Commissioners via
Ordinance 93-13 (Please see Exhibit C); 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.
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 608 of Indian River County's households may be
classified as very low-, low- or moderate -income households.
These households require housing; however, due to the
obstacles noted, they may not be able to secure adequate
housing.
The need for affordable housing for very low-, low- and
moderate -income households within the county is addressed in
the county's adopted comprehensive plan, specifically Housing
Element Policy 4.4. That policy reads as follows:
"The county shall establish a Housing Trust Fund
which will provide below-market interest rate
financing and/or grants for land acquisition,
construction and other related costs for the
development of affordable housing units in the
unincorporated area. The fund will also assist
non-profit facilitators with pre -development
expenses associated with very low, low and moderate
income housing development. Some disbursements
from the Housing Trust Fund will be grants, but the
majority of funds will be revolving loans, with
borrowers paying back into the trust; therefore
ensuring a permanent source of financing."
The intent of this policy is to provide a financial mechanism
which could be utilized to encourage the provision of
affordable housing units for households with very low-, low-,
and moderate -incomes in Indian River County. When the
comprehensive plan was being developed, it was anticipated
that a Housing Trust Fund could be established and funded by
a variety of sources, including contributions from barrier
island municipalities, developer contributions from a density
bonus program, and other sources. In June, 1992, the State of
Florida Legislature approved and passed the William E.
Sadowski Affordable Housing Act which creates a state funded
program whereby participating communities can receive monies
for a Local Housing Assistance Trust Fund.
The program created by the Sadowski Act is titled the State
Housing Initiatives Partnership (SHIP) Program. SHIP Program
requirements have been codified and established in Section
420.907 of the Florida Statutes (FS) and Chapter 9I-37 of
Florida Administrative Code (FAC). The Administrative Rules
listed in Chapter 91-37 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:
Adopt a local ordinance which establishes a Local
Housing Assistance Program (LHAProgram) and a Local
Housing Assistance Trust Fund (LATF).
2. Adopt a Local Housing Assistance Plan (LHAPlan)
which details the intent and guidelines of the
Local Housing Assistance Program (LHAProgram).
3. Create a Local Affordable Housing Advisory
Committee which will conduct a regulatory review of
the county's regulations and develop a Local
Housing Incentive Plan (LHIPlan) to be adopted by
the community within one (1) year of adoption of
the ordinance establishing the LHAProgram.
In compliance with the county Comprehensive Plan and the State
of Florida State Housing Initiatives Partnership (SHIP)
Program, the Indian River County Board of County Commissioners
adopted Ordinance 93-13 which established the Indian River
County Local Housing Assistance Program (IRCLHAProgram) and
created the Indian River County Local Housing Assistance Trust
Fund (IRCLHATF). The ordinance, which also creates the
required Indian River County Affordable Housing Advisory
Committee (IRCAHAC), is incorporated within this plan as
Exhibit C.
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
s also
Plan Effective Date and Duration
The Indian River County Local Housing Assistance Plan will be
effective upon the date of its adoption by the Board of County
Commissioners of Indian River County. The Plan will be
effective e�for periodd of three (8 3) years, encompassing
the 199 4-199 5, 1995-1996 and 1996-1997 fiscal
years for the Indian River County Local Housing Assistance
Program and the State Housing Initiatives Partnership Program.
Pursuant to the procedures established in this Plan, the Plan
effective date and duration of the Plan may be amended by the
Board of County Commissioners.
Implementation Authorization
The Indian River County Local Housing Assistance Program and
Plan shall be implemented by the Indian River County Community
Development Department. The Community Development Department
shall have the authority, upon Board of County Commissioners
approval, to contract -out to private or public, profit or not-
for-profit organizations for services for the implementation
of the Indian River County Local Housing Assistance Program.
II. DEFINITIONS
All definitions and terms provided in Rule 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 9I-
37.002, FAC, the following definitions shall apply:
&2. Annual Operating Report (IRCLHAPAOR, AOR): The annual
summary and review report analyzing and listing the
accomplishments of the Indian River County Local Housing
Assistance Program.
M3. 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.
IL4. Draw(s): A partial payment of a larger, cumulative sum
of funds.
f5. Encumber Funds (Encumbrance of Funds): The process of
committing available funds allocated through the Indian
River County Local Housing Assistance Program to an
eligible sponsor by executing a formal contract for the
purchase or rehabilitation of a housing unit.
(6. Housing Code Inspection: An inspection of an existing or
rehabilitated housing unit by a Building Department
Inspector(s) or other authorized inspector(s), whereby
compliance of the unit with current building and safety
code standards is evaluated.
07. 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.
I8. Indian River County Local Housing Assistance Program
(IRCLHAProgram): The program established by the Indian
River County Board of County Commissioners which will
distribute funds contained within the Indian River County
Local Housing Assistance Trust Fund in order to encourage
the provision of affordable eligible housing for eligible
persons in Indian River County.
JL9. 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, a financial institution
representative of the Indian River County Affordable
Housing Advisory Committee, and one representative member
of the Indian River County Board of County Commissioners.
30. 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.
11[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.
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:
At the beginning of the State Fiscal Year:
i. A Public Notice Advertisement listing the
expected amount of funds to be available for
the commencing fiscal year shall be placed in
the local daily newspaper 30 days prior to the
beginning of a fiscal year; and
ii. General publicity flyers, describing the
IRCLHAProgram and listing the expected amount
of funds to be available for the commencing
fiscal year, shall be distributed to local
organizations for distribution to the general
public. The local organizations shall
include, but not be limited to, church
organizations, financial institutions,
realtors, the Chamber of Commerce, and
contractors.
b�. Additional methods of dispensing information
concerning the IRCLHAProgram may be utilized in
promoting public awareness and participation in the
IRCLHAProgram. Such methods may include, but shall
not be limited to, conducting seminars on the
program for representatives of local organizations
and the general public and the provision of public
service announcements.
cam. 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 (1008) 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
follower
i. For rental units:
(a) A very low-income person's annual adjusted
gross income may increase to an amount not to
exceed one hundred forty percent (1408) of
fifty percent (508) of the median income
adjusted for family size for the purposes of
the IRCLHAProgram;
(b) A low-income person's annual adjusted
gross income may increase to an amount not to
exceed one hundred forty percent (1408) of
eighty percent (808) of the median income
adjusted for family size for the purposes of
the IRCLHAProgram;
(c) A moderate -income person's annual adjusted
gross income may increase to an amount not to
exceed one hundred forty percent (1408) of one
hundred twenty percent (1208) of the me4ian
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 (308) of the housing
units receiving assistance shall be occupied by
households which are classified as very low-income
households.
C. A minimum of thirty percent (308) of the housing
units receiving assistance shall be occupied by
households which are classified as low-income
households.
d. Each individual IRCLHAProgram Assistance Strategy
shall further identify the income classification of
eligible persons who may occupy the housing unit.
(Please Section III.B. of this Plan.)
3. Income Classification Levels
The income levels utilized to identify very low-, low-, and
moderate -income eligible persons for participation in the
IRCLHAProgram shall be the gross income limits adjusted for
family size which are published annuall by the Florida
Housing Finance Agency. For the 1994-1995 Fiscal
Year, these adjusted income levels are:
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 (758) of the
annual balance of funds in the IRCLHATF shall be
expended on Indian River County Local Housing
Assistance Program Strategies which encompass
construction, rehabilitation or emergency repair
activities for eligible housing which will be
utilized by eligible persons.
b. A minimum of sixty-five percent (658) of the annual
balance of funds in the IRCLHATF shall be expended
on Program Strategies which result in homeownership
for eligible persons or assist and improve housing
units owned by eligible persons.
A housing unit which is to be acquired by an
eligible person via a lease purchase agreement in
which the lease does not exceed two (2) years shall
also be classified as a homeownership unit.
Should the lease -purchase lease period exceed two
(2) years, the housing unit shall be classified as
a rental housing unit. Furthermore, an initial
transfer of title for an assisted housing unit
9
Gross
Income Level FY 1994-95
Lower Half
Very Low
Low
of Moderate
Household Size
508
808
ON& 1008
1 Person
2 Person
13150
ON
21 000
Mft
26 300
NO
3 Person
15000
ON
200
ON
301000
4 Person
16 850
Oki
27 W
33 &
5 Person
18 750
imm
30000
am
37w
6 Person
20 250
iNd
3_2400_
4500
ON
7 Person
2 " 75034�
OW
4 00
iift
8 Person
23 250
37 f
46 500
24,750
39,600
49,500
Median Income
= $37,500
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 (758) of the
annual balance of funds in the IRCLHATF shall be
expended on Indian River County Local Housing
Assistance Program Strategies which encompass
construction, rehabilitation or emergency repair
activities for eligible housing which will be
utilized by eligible persons.
b. A minimum of sixty-five percent (658) of the annual
balance of funds in the IRCLHATF shall be expended
on Program Strategies which result in homeownership
for eligible persons or assist and improve housing
units owned by eligible persons.
A housing unit which is to be acquired by an
eligible person via a lease purchase agreement in
which the lease does not exceed two (2) years shall
also be classified as a homeownership unit.
Should the lease -purchase lease period exceed two
(2) years, the housing unit shall be classified as
a rental housing unit. Furthermore, an initial
transfer of title for an assisted housing unit
9
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, interest amount and calculated
recapture amount as specified in Section III.D.S of
this Plan.
C. One hundred percent (1008) of all funds held in the
IRCLHATF shall be expended in a manner consistent
with this Plan and Section 420.907 of the Florida
Statutes (F.S.). All funds expended from the
IRCLHATF shall be expended for administration and
implementation activities as outlined in Section
III.D. of this Plan, for the assistance strategies
identified in Section III.B. of this Plan, or for
the provision of support services as identified in
Section III.A.11. of this Plan.
d. One hundred percent (1008) of all funds allocated
to the IRCLHATF by the State SHIP Program shall be
expended or encumbered during the fiscal year in
which the funds are allocated. However, the
payment or transfer of such encumbered funds from
the IRCLHATF may occur during the following fiscal
year in which the funds are allocated by the State
SHIP Program.
e. The expenditure of funds from the IRCLHATF for the
1994 - 1991LS ®, 19915 - 19906, and 1996, 1997
Fiscal Years may be expected to follow the yearly
estimated expenditure allocations listed below:
FY 1994-1995
ITEM ALLOCATION (Percent of SHIP Monies)
Administrative Costs $ 25,000.00 ( 108)
Assistance Strategies*
Impact Fee Grants
with construction
or rehabilitation
Impact Fee Grants w/o
construction or rehab
Impact Fee Loans
with construction
or rehabilitation
Impact Fee Loans w/o
construction or rehab
10
® 5,000.00 (2 ®8)
2,500.00 ( 18)
® 7,500.00 (3 i8)
- 2,500.00 ( 11)
ITEM ALLOCATION (Percent of SHIP Monies)
Downpayment/Closing
Cost Loans for new
construction or prior
rehabilitation ® 75,000.00 ( 308)
Downpayment/Closing
Cost Loans for existing
homes without rehab
Rehabilitation Loans
Land Acquisition Loans
Land Bank
TOTAL
® 62,500.00(25 ®8)
® 62,500.00(25 ®8)
® 71500.00(3 ®8)
0.00 ( 08)
$ 250,000.00 (1008)
* Compliance with the estimated budgetary
allocations for the assistance strategies is not a
requirement of the IRCLHAProgram. The estimated
budget allocations are designed to serve as general
guidelines in conducting the IRCLHAProgram. Monies
may be shifted between the strategies in order to
maximize the assistance provided by the
IRCLHAProgram in compliance with the requirements
of this Plan.
The estimated allocations for FY 1995-1996 or 1996-
1997 will be twice the amount of allocations for FY
1994-1995.
f. The expenditure and encumbrance of funds allocated
to the IRCLHATF by the State SHIP Program may be
expected toproceed at the following estimated rate
for the 1994 - 199f5 ®, the 1995, - 19996 and
1996-1997 Fiscal Years:
Date
September 30th
(End of 1st Quarter)
December 31st
(End of 2nd Quarter)
March 31st
(End of 3rd Quarter)
8 of SHIP Funds
Expended or Encumbered
208
® 508
® 708
June 30th 1008
(End of 4th Quarter -Fiscal Year)
11
The listed timeframes are an estimation of the rate
of expenditure and encumbrance of funds allocated
by the State SHIP Program. The actual rate of
expenditure and encumbrance may be greater than or
less than the rate indicated.
5. Housing Unit Sales/Purchase Price
The expected average sale/purchase price for new and existing
housing units to be assisted via the IRCLHAProgram are listed
as follows:
Price in Dollars
Unit Size New Existing
1 bedroom 50,000.00 40,050.00
2 bedroom 60,000.00 55,000.00
3 bedroom 75,000.00 67,000.00
4 bedroom 92,000.00 82,000.00
At no time shall the sale/purchase price for new or existing
housing units provided or acquired with assistance from the
IRCLHAProgram shall exceed ninety percent (908) of the median
area purchase price for new and existing housing units for
Indian River County. These median area purchase prices shall
be the amounts established each year by the United States
Department of Treasury, in accordance with Section 3(b)2 of
the United States Housing Act of 1937. The maximum unit
sales/purchase price shall be adjusted accordingly each year.
For the ® 1991L4-19 95 operating year of this Plan, the
median area purchase prices for Indian River County are as
follows:
New Unit Maximum Purchase Price: $95,400.00
Existing Unit Maximum Purchase Price: $83,160.00
The median area purchase price utilized for application review
shall be that price which is in effect at the time an eligible
person or sponsor applies for participation in the
IRCLHAProgram.
6. Housing Unit Rental Rates
Rental rates for housing units provided or acquired with
assistance from the IRCLHAProgram shall conform with the fair
market rental rates adjusted for housing unit size and
established annually by the United States Housing and Urban
Development (HUD) Section 8 Program for housing units in
12
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 ® 19914-19 95 operating year of the Plan, the
Section 8 Program maximum rental rates for housing units based
upon unit size for Indian River County are as follows:
Unit Type
Maximum Unit
Maximum Unit
® Rent
Rent Not
Including
Including
Utilities
Utilities
Efficiency/0 Bedroom
343
229.00
1 Bedroom
461
337.00
2 Bedroom
592
448.00
3 Bedroom
741
585.00
4 Bedroom
829
653.00
7. 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
(Please see Section III.B. of this Plan.). Applicants
receiving assistance under more than one Assistance Strategy
shall comply with the following limitations and requirements:
a. The combined maximum monetary award per housing
unit which may be provided from any one or more of
the IRCLHAProgram Assistance Strategies shall not
exceed ;15,000.00.
b. The income status of an eligible person occupying a
housing unit receiving assistance from one or more
IRCLHAProgram Assistance Strategies shall comply
with the income classification restrictions as
specified by the applicable Strategies.
8. Financial Standing of Eligible Housing Units
owners of all eligible housing units receiving assistance from
the IRCLHAProgram shall be required to maintain good financial
standing in relation to their respective housing units as
follows:
a. All owners shall maintain valid Property Owners or
Homeowners Insurance, as appropriate, for their
respective units. Proof of such insurance shall be
provided to the IRCLHAProgram on an annual basis=
and
13
b. All owners shall complete, and not default upon,
payment of all property taxes for their respective
housing units.
9. Non-discrimination Policy
The IRCLHAProgram and all eligible sponsors shall not
discriminate in the IRCLHAProgram application and award
process on the basis of race, creed, religion, color, age,
sex, sexual preference, marital status, familial status,
national origin, or handicap.
10. Recycled/Repaid Funds for the Indian River County Local
Housing Assistance Trust Fund (IRCLHATF)
All funds repaid to the IRCLHATF shall be recycled for re -use
by the IRCLHAProgram. The funds repaid shall be added to the
existing balance of the IRCLHATF and redistributed for use
through the IRCLHAProgram.
11. Support Services for Eligible Recipients
The IRCLHAProgram will not provide funding for support
services such as tenant counseling, adult/child care, or
transportation assistance for eligible recipients. The
IRCLHAProgram may, if approved by the Board of County
Commissioners, 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 aDDlicants reauestina downnavment/clnaina cnsf
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
loans result in reduced costs by decreasing the amount of
funds to be paid back over time. By utilizing assistance
14
strategies which provide these two methods of either
deferring or reducing costs, the IRCLHAProgram will encourage
the provision of affordable housing.
A total of seven (7) assistance strategies are available for
use by the Indian River County Local Housing Assistance
Program (IRCLHAProgram) in providing assistance to eligible
persons or sponsors. Of the seven strategies, emphasis and
priority for use will be placed upon the Impact Fee Grant,
Impact Fee Loan, Downpayment/Closing Cost Loan, Land
Acquisition Loan, and Rehabilitation Loan strategies.
Utilization of the two Land Banking strategies will occur
solely if funds are available which may not be effectively
utilized under one of the initial five strategies. These
strategies are generally summarized in the Housing Delivery
Tables included as Exhibit "A" and "B" of this Plan, and
further described as follows:
1. Impact Fee Grants
a. Description
The IRCLHAProgram anticipates providing grants for the
payment of water, sewer, electric, and traffic impact
fees for eligible housing units for qualified eligible
persons or sponsors. Funds for impact fee grants shall
be transferred directly to the appropriate impact fee
account corresponding to the eligible housing unit.
Grants may be provided in conjunction with the
construction of new homes, or in conjunction with
existing owner -occupied homes which must be connected to
public services.
For new homebuyers, the provision of such grants will
reduce the financial cost, as the grant will eliminate
the need to include impact fees in the overall, up front,
financing costs for a housing unit. Grants provided to
pay impact fees to connect existing housing units to
public services will eliminate a financial burden for the
owner who may be unable to afford either making a lump
sum payment of the fees, or financing payment of the fees
at current market rates.
The provision of Impact Fee Grants will primarily be
directed to the construction of new housing units.
Impact Fee Grants to existing homeowners may be provided
only when connection to public services is required under
state law or by the county in compliance with its
connection ordinance and comprehensive plan policy to
provide services to existing homes. However, when
existing homes are to be rehabilitated under the
15
Rehabilitation Loan Assistance Strategy described in Item
N5, the impact fee costs to connect the existing unit
will be included in the amount of the rehabilitation loan
award, with a separate impact fee qrant provided only if
the complete rehabilitation and impact fee
cost will exceed the $10,000.00 Rehabilitation Loan
limit. It is anticipated that the number of Impact Fee
Grants for existing homes for which do not require
rehabilitation or repair will not exceed one (1) housing
unit per year. The expenditure of funds for Impact Fee
Grants for existing homes not requiring rehabilitation or
repair shall be classified as a homeownership activity
expenditure, and not be classified as a construction or
rehabilitation activity expenditure, as noted in Section
III.C. of this Plan.
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 hous ng units shall be owner -occupied
residences.
Mobile homes are not eligible.
iii. Applicant Classification
(a) Impact fee grants may be awarded for eligible
housing to be provided by the following eligible
sponsors:
1. Non-profit Organizations
2. Very Low -Income Eligible Persons
(b) Impact fee grants shall result in eligible
housing for the following eligible
persons:
1. Very Low -Income Persons
16
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.
ii. Repayment Terms/Timeframe
The repayment of funds awarded as an impact fee
grant is not required, except in cases whereby the
eligible housing unit is sold to non -eligible
persons prior to termination of the unit's
affordable classification timeframe. In cases
where the unit is sold to a non -eligible person,
resale of the unit shall require repayment of the
original grant amount and accrued interest on the
original grant amount. Furthermore, any sale of
the unit shall be subject to the funds recapture
provisions listed in Section III.D.B. of this Plan
iii. Interest Rate
iv. Affordable Classification Timeframe
Eligible housing utilizing assistance from the
IRCLHAProgram Impact Fee Grant Strategy shall be
owner -occupied by qualified eligible persons for
the following periods:
1. For existing housing units: The unit
shall be occupied by a qualified eligible
person for a period of not less than
twenty (20) years.
2. For new housing units: The unit shall be
occupied by a qualified eligible person
for a period of not less than
17
® twenty (20) years.
V. Compliance Agreement and Security Instrument
Eligible housing units utilizing assistance from
the IRCLHAProgram Im act Fee Grant Strategy shall
be secured by a mort a e 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.
2. Impact Fee Loans
a. Description
The IRCLHAProgram anticipates providing low-interest
loans for the payment of water, sewer and traffic impact
fees for housing units for qualified eligible persons or
sponsors. Funds for impact fee loans shall be
transferred directly to the appropriate impact fee
account corresponding to the eligible housing unit.
Loans may be provided in conjunction with the
construction of new homes, or in conjunction with
existing owner -occupied homes which must be connected to
public services.
For new homebuyers, the provision of such loans will
reduce the financial cost, as the loans will be deferred
and therefore eliminate the need to include impact fees
in the overall, up front, financing costs for a housing
unit. Such loans provided to pay impact fees to connect
existing housing units to public services will allow
owners to defer the payment of such fees until the time
the housing unit is sold, since the owner may be unable
to afford either making a lump sum payment of the fees,
or f inancina Davment of the fees at current market rates.
The provision of Impact Fee Grants will primarily be
directed to the construction of new housing units. Impact
Fee Loans to existing homeowners may be provided only
when connection to public services is required under
state law or by the county in compliance with its
connection ordinance and comprehensive plan policy to
provide services to existing homes. However, when
existing homes are to be rehabilitated under the
Rehabilitation Loan Assistance Strategy described in Itom
i5, the impact fee costs to connect the existing unit
18
will be included in the amount of the rehabilitation loan
award, with a separate impact feeloan pLovided only if
the complete rehabilitation and impact fee
cost will exceed the $10,000.00 Rehabilitation Loan
limit. It is anticipated that the number of Impact Fee
Loans for existing homes for which do not require
rehabilitation or repair will not exceed one (1) housing
unit per year. The expenditure of funds for Impact Fee
Loans for existing homes not requiring rehabilitation or
repair shall be classified as a homeownership activity
expenditure, and not be classified as a construction or
rehabilitation activity expenditure, as noted in Section
III.C. of this Plan.
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-occu ind
residences.
Mobile Homes are not
eligible.
iii. Applicant Classification
(a) Impact fee loans may be awarded for eligible
housing to be provided by the following eligible
sponsors:
1. Non-profit Organizations
2. Very Low -Income Eligible Persons
3. Low -Income Eligible Persons
(b) Impact fee loans shall result in eligible
housing for the following eligible persons:
1. Very Low -Income Persons
2. Low -Income Persons
c. Basic Award Terms
i. Maximum Monetary Award
19
The maximum monetar 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.
ii. Repayment Terms/Timeframe
Impact fee loans shall be deferred payment loans
whereby repayment of the loan amount and accrued
interest occurs at the time that the eligible
housing unit is sold.
Eli able ersons ma
pay back the
entire amount of the loan and accrued interest at
any time.
When the eligible housing unit is sold, the
eligible person owning the unit shall be subject to
the funds recapture provisions listed in Section
III.D.8. of this Plan.
iii. Interest Rate
The interest rate for all loans granted under the
IRCLHAProgram Impact Fee Loan Strategishall be a
three percent (38) annual simple
interest rate.
There will be a zero interest rate for eligible
very low income persons.
iv. Affordable Classification Timeframe
Eligible housing utilizing assistance from the
IRCLHAProgram Impact Fee Loan Strategy shall be
occupied by the qualified eligible persons owning
the housing unit for the duration of the
outstanding impact fee loan.
Upon sale of the eligible housing unit by the
owner, repayment of the outstanding loan amount and
accrued interest shall be required and the
affordability timeframe requirement terminated.
V. Compliance Agreement and Security Instrument
Eligible housing units utilizing assistance from
the IRCLHAProgram Impact Fee Loan Strategy shall be
secured by a = mortgage in favor of Indian
River County. This mortgage may be
20
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
loans to eligible persons for downpaymentst ® the
payment of closing costs, and/or principal reduction
encountered for the purpose of acquiring an eligible
housing unit.
For the purchase of constructed housing units, either new
or existing, the funds for downpayment/closing cost loans
shall be delivered at the time of closing, whereby the
transaction transferring ownership of the eligible
housing unit to the eligible person is completed. For
the purchase of new housing units to be constructed, the
funds for downpayment/closing cost loans shall be
delivered to the financial institution providing the
construction loan for the housing unit for inclusion in
the individual construction disbursement account.
Downpayment/closing cost loans shall not be provided for
the acquisition of housing units requiring rehabilitation
prior to approval for occupancy by residents.
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. Based on the
county's affordable housing definition, the monthly
housing cost including mortgage principal, interest,
taxes, andinsurance shall not exceed 30% of the
household's gross income, and total debt shall not exceed
41% of the household's gross income.
Housing units acquired by eligible persons which are to
be constructed, or were constructed as new units or
substantially rehabilitated
within one (1) calendar year prior to the
21
closing transaction to acquire that housing unit shall be
classified as constructed, rehabilitated, or repaired
units as listed Section III.A.4.a.
b. Eligibility
i. Geographic Area
Downpayment/Closing cost loans may be made for
eligible housing units located anywhere in the
County, including all municipalities located within
the County.
ii. Housing Unit Classification
All housing units shall be owner -occupied
® residences. Mobile homes are not eligible.
iii. Applicant Classification
(a) Downpayment/Closing cost loans may be awarded
for eligible housing to be provided by the
following eligible sponsors:
1. Very Low -Income Eligible Persons
2. Low -Income Eligible Persons
3. Moderate -Income Eligible Persons(only
for the lower half of the moderate income
range: from 808 to 1008 of the county's
median income)
(b) Downpayment/Closing cost loans shall result in
eligible housing for the following eligible
persons:
1. Very Low -Income Persons
2. Low -Income Persons
3. Moderate -Income Persons (only for the
lower half of the moderate income range:
from 808 to 1008 of the county's median
income
c. Basic Award Terms
i. Maximum Monetary Award
The maximum monetary award for a
down a ent/closing cost loan shall not exceed
; 7,000.00 for awards rovided to eligible
moderate -income persons, or $ 10,000.00 for
awards provided to eligible very low- or low-income
persons.
22
ii. Repayment Terms/Timeframe
Downpayment/Closing cost loans shall be deferred
payment loans whereby repayment of the loan amount
and accrued interest occurs at the time the
eligible housing unit is sold.
Eliaible persons ma
pay back the
entire amount of the loan and accrued interest at
any time.
When the eligible housing unit is sold, the
eligible person owning the unit shall be subject to
the funds recapture provisions listed in Section
III.D.8. of this Plan.
iii. Interest Rate
The interest rate for all loans granted under the
IRCLHAProgram Downpayment/Closing Cost Loan
Strateqy shall be a three percent 38 annual
simple interest rat
There will be a zero interest rate
for eligible very low income persons.
iv. Affordable Classification Timeframe
Eligible housing utilizing assistance from the
IRCLHAProgram Downpayment/Closing Cost Loan
Strategy shall be occupied by the qualified
eligible persons owning the housing unit for the
duration of the outstanding downpayment/closing
cost loan.
Upon sale of the eligible housing unit by the
owner, repayment of the outstanding loan amount and
accrued interest shall be required and the
affordability timeframe requirement terminated.
V. Compliance Agreement and Security Instrument
Eligible housing units utilizing assistance from
the IRCLHAProgram Downpayment/Closing Cost Loan
Strategy shall be secured by amortgage in
favor of Indian River County. This mortgage
may be subordinated to construction and/or
permanent mortgages applied to the same unit upon
23
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.
The land acquisition loan shall be a primary or first
mortgage upon the subject property purchased until the
eligible sponsor obtains the construction and/or
permanent loan financing for development and construction
of the housing unit. At the time the
construction/permanent financing is provided for the
housing unit, the land acquisition loan shall be
subordinated to the construction/permanent mortgage.
For the purposes of the IRCLHAProgram, funds expended for
property acquisition under the Land Acquisition Loan
Assistance Strategy shall be classified as a
homeownership expenditure, and an eligible housing unit
must be constructed and certified for occupancy on the
acquired property within one year of the closing
transaction date. Failure to complete construction of
and obtain a Certificate of Occupancy for a housing unit
within one (1) year of the closing transaction date shall
constitute grounds for foreclosure to obtain possession
of the property which may be utilized as a land bank
acquired property by the IRCLHAProgram.
b. Eligibility
i. Geographic Area
Land acquisition loans may be made for eligible
housing units located anywhere in the County,
including all municipalities located within the
County.
ii. Housing Unit Classification
24
All housing units utilizing assistance from the
IRCLHAProgram Land Acquisition Loan Strategy shall
i
owner-occu ied sin le-famil residences.
Mobile homes are not eligible.
iii. Applicant Classification
(a) Land acquisition loans may be awarded for
eligible housing to be provided by the following
eligible sponsors:
1. Non-profit Organizations
(b) Land acquisition loans shall result in
eligible housing for the following eligible
persons:
1. Very Low -Income Persons
2. Low -Income Persons
c. Basic Award Terms
i. Maximum Monetary Award
The maximum monetary award for a land acquisition
loan shall not exceed $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.
Eli ible ersons ma
paY batik the
entire amount of the loan and accrued interest at
any time.
When the eligible housing unit is sold, the
eligible person owning the unit shall be subject to
the funds recapture provisions listed in Section
III.D.B. of this Plan.
25
iii. Interest Rate
The interest rate for all loans granted under the
IRCLHAProgram Land Acquisition Loan Strategy shall
be a three percent (38) annual simple
interest rate.
There will be a zero interest rate for eligible
very low income persons.
iv. Affordable Classification Timeframe
Eligible housing utilizing assistance from the
IRCLHAProgram Land Acquisition Loan Strategy shall.
be occupied by qualified eligible persons for the
duration of the outstanding land acquisition loan.
Upon sale of the eligible housing unit by the
owner, repayment of the outstanding loan amount and
accrued interest shall be required and the
affordability timeframe requirement terminated.
V. Compliance Agreement and Security Instrument
Eligible housing units utilizing assistance from
the IRCLHAProgram LandAc uisition Loan Strategy
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.
5. Rehabilitation Loans
a. Description
The IRCLHAProgram anticipates providing low-interest
loans to eligible sponsors or persons to fund all or a
portion of the cost encountered in rehabilitating
existing or acquired housing units eligible for occupancy
by eligible persons. Rehabilitation loans will not be
awarded for rehabilitation work previously completed.
All rehabilitation work must be performed by licensed
contractors.
Awarded rehabilitation loan amounts shall be based upon
a minimum of two written licensed contractor estimates,
Identifying all necessary rehabilitation work and the
expected costs of the rehabilitation work. The applicant
26
The funds for rehabilitation loans of less than $2,500.00
shall be delivered upon completion of all rehabilitation
work and a satisfactory final inspection by the
corresponding jurisdictional Building Department that all
required rehabilitation activities for the eligible
housing unit are completed. Funds for rehabilitation
loans of $2,500.00 or more may be delivered in individual
draws based upon the completion of individual components
of the rehabilitation work and inspection by the
corresponding jurisdictional building department. The
final draw of funds shall not be less than $1,500.00 and
it shall be delivered upon completion of all
rehabilitation work and a satisfactory final inspection
by the corresponding jurisdictional Building Department
that all required rehabilitation activities for the
eligible housing unit are completed.
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 IRCLHAFrogram
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 for
eligible housing to be provided by the following
eligible sponsors:
27
1. Non-profit Organizations
2. Investors
3. Very Low -Income Eligible Persons
4. Low -Income Eligible Persons
(b) Rehabilitation loans shall result in eligible
housing for the following eligible persons:
1. Very Low -Income Persons
2. Low -Income Persons
c. Basic Award Terms
Maximum Monetary Award
The maximum monetary award for a rehabilitation
loan shall not exceed $10,000.00 per single-family
or multiple -family housing unit. Additionally,
rehabilitation loans for multiple family structures
shall also be limited to a maximum monetary award
of $40,000.00 regardless of the number of units
available in the structure.
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 accrued interest shall be repaid at the
time the eligible housing unit is sold.
(b) Non -owner -occupied single family homes and
multiple -family structures: Repayment of the full
rehabilitation loan amount and accrued interest
shall be required fifteen (15) years following the
date of issuance of the loan.
Elioible sponsors or Dersons ma
PM
back the entire amount of the loan and accrued
interest at any time.
When the eligible housing unit is sold, the
eligible sponsor or person owning the unit shall be
subject to the funds recapture provisions listed in
Section III.D.8. of this Plan.
20
iii. Interest Rate
The interest rate for all loans granted under the
IRCLHAProgram Rehabilitation Loan strategy shall be
a three percent (38) annual simple
interest rate.
There will be a zero interest rate for eligible
very low income persons.
iv. Affordable Classification Timeframe
Eligible housing utilizing assistance from the
IRCLHAProgram Rehabilitation Loan Strategy, shall
be occupied by qualified eligible persons in
compliance with the following methods:
(a) For owner -occupied single-family housing
units: The unit shall be occupied by the qualified
eligible person(s) for the duration of the
outstanding rehabilitation loan.
(b) For rental single-family housing units, and
multiple -family housing units: The unit shall be
occupied by a qualified eligible person for a
period of not less than fifteen (15) years. Upon
completion of the fifteen (15) year affordability
timeframe, the outstanding rehabilitation loan and
its accrued interest shall be due in full for
repayment to the IRCLHATF.
Upon the sale of any eligible single-family or
multiple -family housing unit by the owner,
repayment of the outstanding loan amount and
accrued interest shall be required and the
affordability timeframe requirement terminated.
V. Compliance Agreement and Security Instrument
Eligible housing units utilizing assistance from
the IRCLHAProgram Rehabilitation Loan Strategy
shall be secured by a ® 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.
Furthermore, the � mortgage document shall note
that for rental properties •a local non-profit
community based organization shall have the first -
29
right -of -refusal for purchase of the rental unit.
Should the unit be refused by local non-profit
community based organizations, the owner may offer
the rental unit(s) for sale on the general real
estate market.
6. Land Bank - Market Purchase
a. Description
The Indian River County, through the Board of County
Commissioners and the IRCLHAProgram, may acquire vacant
parcels or lots via the general real estate market for
the purpose of providing sites for the development of
eligible housing units by eligible sponsors for eligible
persons. The funds for acquisition shall be delivered at
the time of closing, whereby the transaction transferring
ownership of the parcel or lot to the county is
completed. This Market Purchase Strategy may be
considered a strategy of "last resort", whereby it may be
utilized in the event unexpended or encumbered funds for
the IRCLHAProgram are available and expenditure through
the remaining IRCLHAProgram Assistance Strategies is
unlikely.
The acquired property shall be classified as a monetary
asset of the IRCLHATF to be utilized as an equivalent
loan to an eligible sponsor or person for the development
of an eligible housing unit.
Upon transfer of the acquired property to an eligible
sponsor, the effective land bank loan shall be secured by
a primary or first mortgage upon the subject property
until the eligible sponsor obtains the construction
and/or permanent loan financing for the development and
construction of a housing unit. At the time the
construction/permanent financing is provided for the
housing unit, the land bank loan shall be subordinated to
the construction/permanent mortgage.
For the purposes of the IRCLHAProgram, funds expended for
property acquisition under the Land Bank Market Purchase
Assistance Strategy shall be classified as a
homeownership expenditure, and an eligible housing unit
must be constructed and certified for occupancy on the
acquired property within one year of the closing
transaction date. Failure to complete construction of
and obtain a Certificate of Occupancy for a housing unit
within one (1) year of the closing transaction date shall
constitute grounds for foreclosure to obtain possession
of the proporty which may be utilized as a land bank
acquired property by the IRCLHAProgram.
30
b. Eligibility
i. Geographic Area
Parcels acquired through land bank acquisitions for
the development of eligible housing units may be
located anywhere in the County, including all
municipalities located within the County.
ii. Housing Unit Classification
All housing units resulting from the IRCLHAProgram
Land Bank Market Purchase Acquisition Strategy
shall be owner-occu ied sin le-famil residences.
Mobile homes are not eligible.
iii. Applicant Classification
(a). Land bank acquisitions may be awarded for
eligible housing to be provided by the following
eligible sponsors:
1. Non-profit Organizations
(b) Land bank acquisitions shall result in
eligible housing for the following eligible
persons:
1. Very Low -Income Persons
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
ver lot or $150.000.00 for the total land bank
acquisition for FY 1994-1995 and $250,000.00 or
the FY 1995-1996 or FY 1996-1997.
ii. Repayment Terme/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
31
its corresponding eligible housing unit is sold.
Elioible persons ma
pay back the
entire amount of the loan and accrued interest at
any time.
When the eligible housing unit is sold, the
eligible person owning the unit shall be subject to
the funds recapture provisions listed in Section
III.D.8. of this Plan.
iii. Interest Rate
The interest rate for all equivalent land bank
loans granted under the IRCLHAProgram Land Bank
Acquisition Strategy shall be a three percent 38
annual sim le interest rate.
There will be a zero interest
rate for eligible very low income persons.
iv. Affordable Classification Timeframe
Eligible housing utilizing assistance from the
IRCLHAProgram Land Bank Market Purchase Strategy
shall be occupied by qualified eligible persons for
the duration of the outstanding equivalent land
bank acquisition loan.
Upon sale of the eligible housing unit by the
owner, repayment of the outstanding land bank loan
amount and accrued interest shall be required and
the affordability timeframe requirement terminated.
V. Compliance Agreement and Security Instrument
Eligible housing units utilizing assistance from
the IRCLHAProgram Land Bank Market Purchase
Strategy shall be secured by a mortgage in
favor of Indian River County. This mortgage
may be subordinated to construction and/or
permanent mortgages applied to the same unit upon
aa"royal of the IRCLHAProgram Review Committee.
This mortgage shall serve as the eligible
recipient's contractual commitment to comply with
the requirements of the IRCLHAProgram.
32
7. 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
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.
33
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 for
eligible housing to be provided by the following
eligible sponsors:
1. Non-profit Organizations
(b) Land bank acquisitions shall result in
eligible housing for the following eligible
persons:
1. Very Low -Income Persons
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 110,000.00
per lot or 1150,000 00 for the total land bank
acquisition per FY.
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.
34
L_
Elioible Persons ma
Day back the
entire amount of the loan and accrued interest at
any time.
When the eligible housing unit is sold, the
eligible person owning the unit shall be subject to
the funds recapture provisions listed in Section
III.D.B. of this Plan.
iii. Interest Rate
The interest rate for all equivalent land bank
loans granted under the IRCLHAProgram Land Bank
Acquisition Strategy shall be a three percent 38
annual
simple interest rate.
There will be a zero interest
rate for eligible very low income persons.
iv. Affordable Classification Timeframe
Eligible housing utilizing assistance from the
IRCLHAProgram Land Bank Acquisition Strategy shall
be occupied by qualified eligible persons for the
duration of the outstanding equivalent land bank
acquisition loan.
Upon sale of the eligible housing unit by the
owner, repayment of the outstanding land bank loan
amount and accrued interest shall be required and
the affordability timeframe requirement terminated.
Compliance Agreement and Security Instrument
Eligible housing units utilizing assistance from
the IRCLHAProgram Land Bank Acquisition Tax Deed
Purchase Strategy shall be secured by a
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.
C. Estimated Unit Assistance and Pricing for the
IRCLHAProgram
Use of the listed Local Housing Assistance Program Strategies
35
by the IRCLHAProgram will result in the provision of eligible
housing units for residents of the county. The housing units
assisted can be expected to serve various populations of
eligible recipients. Table 1 and Table 2, provided as Exhibit
"A" and "B", respectively in Section VI of this document, list
the Housing Delivery Goals for funds provided by the SHIP
Program. The delivery goals listed in Tables 1 and 2 may be
expected to result in the construction, rehabilitation and
homeownership activities as referenced in Section III.A.4 of
this document. These construction, rehabilitation and
homeownership activities are listed in Table 3 following which
re resents the estimated expenditures for ® the
1994-1995 Fiscal Year®:
Table 3
Estimated SHIP Fund Expenditures
for Construction, Rehabilitation, and Homeownership
Activities by Assistance Strategy
FY 1994-1995
Construction/
Assistance Strategy Rehabilitation % of $225,000 Homeownership of 225,000
Impact Fee Grant
(new construction
or rehabilitation) s ■ 5,000.00 2 $ ■ 5,000.00 2
Impact Fee Grano
(existing home 2,500.00
w/o rehabilitation) 0.00 ( ■) 0 1
Impact Fee Loan
(new construction
or rehabilitation) 18,000.00 ( ■) 6 18 000.00( ■) S
Impact Fee Loan
(existing home 2,500.00
w/o rehabilitation) 0.00 ( ■) 0 I
Downpayment/closing --
Cost Loan (new
construction/prior
rehabilitation) 0 101,000.00 (®) 45 ■ 101,000.00 (30%) 45
Downpaymsnt/Closing
Cost Loan (existing
hoer w/o rehab) 0.00 0 36 000.00 25
Land Acquisition Loan 7,000.gO 3 7,000.00 3
Rehabilitation Loan 75,000.00 ( ) 33 33,000.00 ( ) 15
Land Baru 0.00 0 0.00 0
TOTAL
206,000.00 91 225,000.00 100
Total SHIP Funds Py 1994-95 $250,000.00 Total SHIP Fund. or FY 1995-96 or nY 1996-97 $574,322
Administrative Expenses 25,000.00 Administrative Expenses $ 57,432.00
Remaining Balance $225,000.00 Remainieg Balance $526,890.0
The estimates for fiscal year 1995-1996, and 1996-1997 will be
twice as much as estimates for fiscal year 1994-95
The estimates listed in Tables 1, 2 and 3 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.
36
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 balance of funds
of the Indian River County Local Housing Assistance Trust Fund
(IRCLHATF) may be expended to provide for the costs of
administering and implementing the IRCLHAProgram. The Board
of County Commissioners has made a finding by separate
resolution that expenditures for administration and
implementation of the IRCLHAProgram may exceed five percent
(58) of the IRCLHATF annual balance; however, at no time shall
the funds expended for administration and implementation of
the IRCLHAProgram exceed ten percent (10%) of the balance of
the IRCLHATF. (Please see Exhibit D.)
Expenditures of funds from the IRCLHATF shall be monitored on
a regular basis for compliance with the expenditure limitation
established by the Board of County Commissioners.
Administration and implementation activities of the
IRCLHAProgram which may be funded with SHIP funds shall be
limited to those items associated with conducting the
administration and implementation activities listed in
Sections 2 through B following in thin 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
37
Estimated budgetary expenditures for conducting the
administrative activities are identified below:
Fiscal Year
Item 19914
- 199®5
199®5 - 199m6
2nd 1996-1997
Salaries
$18,000
43,432.00
Office Expenses
5,500
11,000.00
Travel
500
1,000.00
Advertising
1,000
M
2,000.00
Total
$ 25,000
57,432.00
2. 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-come, first-served basis as
applicants are approved and qualified for participation
in the program. All funds encumbered shall be expended
within one (1) calendar year from the date of formal
encumbrance. (Please see Section III.D.S.b. of this
Plan.)
No anticipated funds for future commencing fiscal years
shall be encumbered. Furthermore, the encumbrance of
funds in a manner which would not comply with the
requirements of the IRCLHAProgram and the IRCLHAPlan is
not permitted.
3. Application Processing
Applications submitted by eligible sponsors or persons
for participation in the IRCLHAProgram shall be reviewed
by staff members of the Community Development Department
or separate third party under contract to conduct
application reviews for the IRCLHAProgram.
38
A maximum of twenty (20) working days may be utilized for
review of any submitted application; however, reviews may
exceed this period pending the receipt of information or
documentation required to complete the evaluation of the
application.
4. IRCLHAProgram Applicant Criteria
Eligible persons or sponsors applying for participation
in the IRCLHAProgram shall comply with the following
requirements:
a. Income Level
All applicants shall be classified as very low-,
low-, or moderate -income persons; however, in cases
where the applicant is an eligible sponsor but not
an eligible person, the assisted housing unit must
be occupied by persons classified as very low-,
low-, or moderate -income persons.
b. Employment Verification
Applicants seeking assistance from the
IRCLHAProgram to purchase eligible housing units
shall be eligible persons meeting one of the
following employment criteria:
i. Suitable documentation indicating current,
continuous employment for a minimum of one (1) year
in the same position or within the same business or
firm; or
ii. Suitable documentation indicating current
employment (within twelve (12) months of an
application submittal) as a seasonal farmworker,
with a minimum of two (2) consecutive years as a
seasonal farmworker, whereby the first period of
seasonal employment shall have been for the full
duration of the season, and the second period shall
have been for a minimum of one-half (J) 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)
s
with special housing needs, excluding seasonalor
migrant farmworkers, shall be exempt from any
employment requirement for participation in the
IRCLHAProgram.
39
Asset Verification
Total assets of eligible persons applying to
purchase a housing unit under, or occupy a housing
unit assisted by, the IRCLHAProgram shall not
exceed forty-five thousand dollars (;45,000.00) or
fifty percent (508) of the value of the
purchase/sale price of the housing unit, whichever
is greater. Pensions or other similar public or
private deferred compensation funds which may not
be converted to be available as cash funds, with or
without incurring a financial penalty for early
withdrawal of such funds, shall be excluded from
consideration as a financial asset.
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 91-
37.002, FAC.
Credit Verification
Eligible persons receiving assistance from the
IRCLHAProgram shall maintain a valid, satisfactory
credit rating for a minimum of one (1) year prior
to receiving any application approval for
participation in the IRCLHAProgram.
f. Homebuyer Status
Eligible persons utilizing assistance from the
IRCLHAProgram to purchase a new or existing housing
unit shall not have owned or held title to a
housing unit anytime within the three (3) year
period prior to receiving any application approval
for participation in the IRCLHAProgram.
5. Application Review
Applications shall be reviewed by Community Development
Department staff or the third party entity identified by
contract to conduct application review activities for
compliance with the criteria listed in the previous
section. Those applications not satisfying the review
criteria shall be classified as disqualified.
Applications satisfying the review criteria shall be
forwarded to the IRCLHAProgram Review Committee
(IRCLHAPRC) for final review and approval of the
application.
40
a. Disqualified applicants shall be informed of the areas
causing denial of the submitted application and be
encouraged to correct the reasons for denial if possible.
Disqualified applicants may reapply for participation in
the IRCLHAProgram; however, a minimum of thirty (30)
working days following issuance of a denial notice must
pass prior to submission of a new application.
b. Applicants approved for participation in the
IRCLHAProgram shall be issued a Notice of Commitment
indicating that the applicant has qualified for
participation in the IRCLHAProgram; this notice shall
also indicate the award type and the amount of the award.
The Notice of Commitment shall be valid for a maximum of
® Ninety (90) working days. The applicant must
obtain a committed contract for purchase or committed
contract for rehabilitation and repair work to maintain
the Notice of Commitment beyond the ninety
(90) day maximum. Obtaining a committed contract for
purchase or rehabilitation and repair work shall
constitute formal encumbrance of the funds. The date of
execution of the committed contract shall serve as the
date of formal encumbrance as referenced in Section
III.D.2. of this Plan.
If a committed contract for purchase or rehabilitation is
not obtained by the applicant prior to expiration of the
Notice of Commitment, the applicant must recommence the
application process; however, a minimum of thirty (30)
working days following the expiration of the Notice of
Commitment must pass prior to submission of a new
application.
Transfer/Dispersal of Funds for Housing Units
Prior to the actual transfer or dispersal of funds from
the Indian River County Local Housing Assistance Trust
Fund, the following activities and documentation shall be
completed:
a. Housing Unit Inspection/Certificate of Occupancy
All eligible housing units shall receive
satisfactory approval for occupancy via one of the
following methods:
I. For new unconstructed housing units: The
funds awarded for construction of a new
housing unit shall be transferred or dispersed
to the financial institution providing the
construction loan for the housing unit for
inclusion in the construction guarantee pool.
41
ii. For existing or new constructed housing units:
a satisfactory housing code inspection or
Certificate of Occupancy, as appropriate,
shall be obtained prior to transfer or
dispersal of the funds awarded via the
IRCLHAProgram.
iii. For rehabilitated housing units: a
satisfactory final inspection and satisfactory
housing code inspection shall be obtained
prior to transfer or dispersal of the funds
awarded via the IRCLHAProgram.
b. ® Mortgage/Subordinated ® Mortgage
Documentation
All documentation relating to the ® mortgage
and/or subordination of the ® mortgage which
serves as the eligible recipient's contractual
commitment to comply with the requirements of the
IRCLHAProgram shall be completed and the mortgage
document(s) prepared for filing in the public
record. Preparation of the mortgage document(s)
shall comply with all Federal, State, and Local
regulations.
The mortgage documentation shall specify the
IRCLHAProgram Strategy assisting in the provision
of the housing unit, the amount of the funding
award for the unit, the 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:
42
i. Property Tax Payment Verification
Compliance verification with this requirement
shall be conducted on an annual basis.
(Please see Section III.A.7.a. of this Plan
for further information.)
ii. Homeowner/Property Owner Insurance
Verification
Compliance verification with this requirement
shall be conducted on an annual basis.
(Please see Section III.A.7.b. of this Plan
for further information.)
iii. Owner and Eligible Person Occupancy
Verification
Compliance verification with this requirement
shall occur on a once -a -year basis as a
minimum; however, this compliance verification
activity may be conducted on a more frequent
or staggered basis. (Please see Section
III.A.2. of this Plan for further
information.)
iv. Rental Rate Verification
Compliance verification with this requirement
shall be conducted on a once -a -yeas basis as a
minimum; however, this compliance verification
activity may be conducted on a more frequent
or staggered basis. (Please see Section
III.A.5. of this Plan for further
information.)
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-
com fiance status is not corrected within
thirty (30) working days, the housing unit may
be subject to foreclosure under the subordinate
mortgage compliance agreement at the discretion of
the Board of County Commissioners based upon the
recommendation of the IRCLHAProgram Review
Committee.
43
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 a
recapture of rofit rovision as shown in the table
W
.
INDIAN RIVER COUNTY HOUSING ASSISTANCE PLAN
RECAPTURE OF PROFIT PROVISIONS (DUE UPON
THE RESALE OF THE HOUSING UNIT)
YEAR AFTER LOAN PERCENTAGE RECAPTURE OF
CLOSING OR ASSUMPTION PROFIT*
1st
508
2nd
408
3rd
308
4th
208
5th
108
6th and over
08
* The amount of profit recaptured from the sale of an
44
The amount of funds calculated by application of the
recapture provision shall be paid by the selling
household and redeposited into the Indian River County
Local Housing Assistance Trust Fund for redistribution by
the IRCLHAProgram. However, the initial transfer of
title for the assisted housing unit between an eligible
non-profit organization sponsor and the eligible
person(s) acquiring the unit via a lease -purchase
agreement shall not be considered the resale of the unit
requiring repayment of the loan amount, interest amount
and calculated recapture amount.
The Satisfaction of Mortgage shall be executed upon
payment of both the original loan/grant principal amount
and its accrued interest as required by the corresponding
IRCLHAProgram Assistance Strategy or Strategies, and the
determined subsidy recapture amount.
For renter -occupied housing units which are offered for
sale by the eligible sponsor receiving IRCLHAProgram
assistance before termination of the 15 year
affordability period, or that have remaining mortgages
funded under the IRCLHAProgram, the seller must give a
first right of refusal to eligible non-profit
organizations for purchase at the current market value
for continued occupancy by eligible recipients.
45
The amount of funds calculated by application of the
recapture provision shall be paid by the selling
household and redeposited into the Indian River County
Local Housing Assistance Trust Fund for redistribution by
the IRCLHAProgram. However, the initial transfer of
title for the assisted housing unit between an eligible
non-profit organization sponsor and the eligible
person(s) acquiring the unit via a lease -purchase
agreement shall not be considered the resale of the unit
requiring repayment of the loan amount, interest amount
and calculated recapture amount.
The Satisfaction of Mortgage shall be executed upon
payment of both the original loan/grant principal amount
and its accrued interest as required by the corresponding
IRCLHAProgram Assistance Strategy or Strategies, and the
determined subsidy recapture amount.
For renter -occupied housing units which are offered for
sale by the eligible sponsor receiving IRCLHAProgram
assistance before termination of the 15 year
affordability period, or that have remaining mortgages
funded under the IRCLHAProgram, the seller must give a
first right of refusal to eligible non-profit
organizations for purchase at the current market value
for continued occupancy by eligible recipients.
45
9. Data Development and Compilation
The Community Development Department staff may collect
and/or compile data to be utilized in analyzing the
efficiency the IRCLHAProgram, analyzing the need for
affordable housing in Indian River County, developing
additional assistance strategies for the IRCLHAProgram,
or for improving the IRCLHAProgram.
10. IRCLHAPlan Compliance Monitoring
The IRCLHAProgram shall be conducted in compliance with
the Indian River County Local Housing Assistance Plan
(IRCLHAPlan) and the requirements of the State of Florida
State Housing Initiatives Partnership (SHIP) Program and
Rule 9I-37.005, Local Housing Assistance Plans, Florida
Administrative Code (FAC).
a. The Community Development Department staff shall
monitor all activities conducted as a part of the
IRCLHAProgram for compliance with the requirements of the
IRCLHAPlan and Rule 9I-37 FAC.
Upon determination that the IRCLHAProgram will be unable
to comply with the requirements of the IRCLHAPlan or Rule
9I-37 FAC:
i. The Community Development Department shall provide
written notification of non-compliance to the
Florida Housing Finance Agency within ten (10)
working days of the non-compliance determination;
and
ii. Amendment proceedings to revise the IRCLHAPlan
shall be commenced within twenty (20) working days
of the non-compliance determination in order to
reconcile the discrepancy between the requirements
of the IRCLHAProgram and the IRCLHAPlan.
b. The Community Development Department shall monitor
expenditures of funds distributed from the State of
Florida for the IRCLHAProgram to ensure that a minimum of
fifty percent (50%) of the distributed state funds have
been encumbered by the mid -point of each fiscal year,
except for the 1992-1993 Fiscal Year.
Upon determination that the IRCLHAProgram will be unable
to comply with the funding encumbrance requirement:
i. The Community Development Department shall provide
written notification of non-compliance to the
46
6—
Florida Housing Finance Agency within ten (10)
working days of the non-compliance determination;
and
ii. Amendment proceedings to revise the IRCLHAPlan
shall be commenced within twenty (20) working days
of the non-compliance determination in order to
reconcile and correct the lack of encumbered funds
by the IRCLHAProgram.
C. The Community Development Department staff shall
complete on an annual basis an Annual Operations Report
analyzing and listing the activities and accomplishments
of the IRCLHAProgram. The IRCLHAProgram Annual
Operations Report (IRCLHAPAOR, AOR) shall conform to the
following requirements:
i. IRCLHAPAOR Preparation
(a) The IRCLHAPAOR shall be compiled and drafted by
Community Development Department staff prior to August
30th of each calendar year for the preceding fiscal year;
(b) The draft AOR shall be made available for public
inspection and comment during the month of September of
each calendar year. Written comments received from the
public shall be included in the final AOR;
(c) The draft AOR shall be revised to include and
reflect public comments provided and shall be presented
for review and consideration by the Indian River County
Board of County Commissioners prior to October 15th of
each calendar year;
(d) The Indian River County Board of County
Commissioners shall review the proposed AOR and vote to
transmit the proposed AOR to the Florida Housing Finance
Agency (FHFA) for its compliance revi,3w;
(e) The AOR shall be transmitted to the FHFA prior to
November 10th of the calendar year for the FHFA to
complete its compliance review for the AOR;
(f) Within thirty (30) working days following receipt of
the FHFA's review comments for the AOR, the Board of
County Commissioners shall adopt the AOR as transmitted
to the FHFA or as modified in response to the FHFA's
comments; and
(g) Within twenty-one (21) calendar days of adoption of
the revised IRCLHAPlan, Community Development Department
staff shall transmit two (2) certified copies of the
47
revised and adopted IRCLHAPlan to the Florida Housing
Finance Agency.
ii. IRCLHAPAOR Information
The AOR shall include the summary information
required by Florida Statute Section 420.9075(7) and
Rule 9I-37.016, Florida Administrative Code. Such
information shall include, but not be limited to,
the following:
(a) The number of people served by income, age, family
size, and race, as well as data regarding any special
needs populations such as farmworkers, rural residents,
and the elderly;
(b) The number of units and the average cost of
producing units under each program;
(c) The average sales price of a single-family unit and
the amount of rent charged for a rental unit based on
unit size;
(d) The number of mortgages made and the rate of
default;
(e) A description of the implementation of the
affordable housing incentive plan and the resulting
reduction in housing costs;
(f) A concise description of the support services that
are available to the residents of affordable housing
provided by local programs; and
(g) Such other data or affordable housing
accomplishments considered significant by the Indian
River County Hoard of County Co":unissioners.
48
The administration and implementation activities associated
with conducting the IRCLHAProgram may proceed at varied rates
throughout each fiscal year. The estimated rate at which each
of the activities may proceed throughout each fiscal year is
indicated in the following chart:
Activity
Adoption of LBAPlan"
Submittal to WA -
Approval by PBPA-
Application Solicitation
Application Review
Application Approval
Expenditure of Funds
Compliants Monitoring
Fiscal Year Closeout (ACR)
Month of Fiscal Yeer
1 2 3 1 S 6 7 6 9 10 11 12
x
x
x
x x
X x x X x x
x x x x x x
x x x x x x
x x x x x x
x x
X x x x x
x x x x x x
x x x x x x
x x x x x x
x
* Activities to adopt and revise the
IRCLHAPlan shall be commenced prior to the end
of the Plan's effective duration period. For
years whereby the IRCLHAPlan's duration period
is not due to terminate, the plan may be
revised. at the discretion of the county and
forwarded for review by the Florida Housing
Finance Agency.
49
IV. PLAN AMENDMENTS
The Indian River County Local Housing Assistance Plan
(IRCLHAPlan). shall be adopted and amended in conformance with
the following guidelines:
A. Authority
The IRCLHAPlan may be adopted and amended ® 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. 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 for,al recommendation for
consideration of the IRCLHAPlan and the amendment
proposals to the Indian River County Board of County
Commissioners.
4. The Indian River County Board of County Commissioners
shall review the proposed IRCLHAPlan and amendment
proposals and vote to transmit the proposed IRCLHAPLan
and amendment proposals as approved by the Board, to the
Florida Housing Finance Agency (FHFA) for its compliance
review.
5. The IRCLHAPlan and amendment proposals shall be
transmitted to the FHFA within ten (10) working days of
the Board of County Commissioners' determination to
50
transmit the IRCLHAPLan and amendment proposals to the
FHFA for compliance review.
6. Within thirty (30) working days following receipt of the
FHFA's review comments, the Board of County Commissioners
shall review the comments provided by the FHFA and adopt
the IRCLHAPlan and amendment proposals as transmitted to
the FHFA or as modified in response to the FHFA's
comments.
7. Within twenty-one (21) calendar days of adoption of the
revised IRCLHAPlan, Community Development Department
staff shall transmit two (2) certified copies of the
revised and adopted IRCLHAPlan to the Florida Housing
Finance Agency.
Al
V. CERTIFICATION
Indian River County certifies that:
• The availability of SHIP/IRCLHAProgram funds will
be advertised pursuant to 91-37.005(6)(a)(1).
• A maximum award schedule to govern fund
distribution at the local level has been®
® adopted. (See Exhibit "C" of this document.)
• A process for selection of recipients for funds has
been ® developed. (See Section IIID of
this document.)
• All SHIP funds will be expended in a manner which
will insure that there will be no discrimination on
the basis of race, creed, religion, color, age,
sex, familial status, or national origin.
• Recipients of funds will be required to
contractually commit to program guidelines. (See
Section III.D.6.b of this document.)
• The Florida Housing Finance Agency will be notified
promptly if the Local Government (or Interlocal
Entity) will be unable to comply with the
provisions of the Plan.
• An amended Plan will be submitted if 508 of the
distributed funds have not been encumbered by the
mid -point of each fiscal year, except in State FY
1992-93.
• The Plan conforms to the Housing Elements of the
Local Governments' Comprehensive Plan, or that an
amendment to the Housing Element will be initiated
at the next available opportunity to ensure
conformance with the Plan.
• The representations contained in the Plan are true
and accurate as of the date of submission.
52
This Plan, hereby known as the Indian River County Local
Housing Assistance Plan (IRCLHAPlan), is a true and accurate
representation of the guidelines, procedures and strategies to
be utilized in the administration and implementation of the
Indian River County Local Housing Assistance Program
(IRCLHAProgram).
Witness One:
I
'Z2� , ltr ..
`Signature t John W. Tippin
`-Chairman, Indian River
A[ie6 E, U7H�rE County Board of County
(Printed Name) Commissioners
Witness Two:
gna ure
�, Q
(Printed Name)
\u\v\h\haplan66.trn
53
`ATTEST: '
K. BABTOti- CLERK
VI. Exhibits
54
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