INDIAN RIVER COUNTY LOCAL HOUSING ASSISTANCE PLAN (LHAP) STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM

Transcription

1 INDIAN RIVER COUNTY LOCAL HOUSING ASSISTANCE PLAN (LHAP) STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM GUIDELINES, PROCEDURES, AND STRATEGIES FY FY FY Adopted by BCC: April 21, 2015 Approved by FHFC: May 13, 2015 Equal Housing Opportunity Effective: July 1, 2015

2 TABLE OF CONTENTS Page INTRODUCTION 1 PURPOSE AND INTENT I. PROGRAM DESCRIPTION 1 A. Indian River County, Florida 1 B. Purpose of the Program 1 C. Fiscal Years Covered by the Plan 1 D. Governance 1 E. Local Housing Partnership 2 F. Leveraging 2 G. Public Input 2 H. Advertising and Outreach 2 I. Anti-Discrimination Policy 2 J. Support Services and Counseling 2 K. Purchase Price Limits 3 L. Income Limits, Rent Limits and Affordability 3 M. Welfare Transition Program 3 N. Monitoring and First Right of Refusal 3 O. Administrative Budget 4 P. Program Administration and Implementation Activities 4 Q. Essential Service Personnel 9 R. Special Need Households 9 S. Green Building 9 LOCAL HOUSING ASSISTANCE PROGRAM STATEGIES 10 A. Impact Fee/Capacity Charges Loans (Code #8) 11 B. Purchase Assistance Loans (Code #1 & #2) 13 C. Emergency Rehabilitation Loans (Code #6) 17 D. Rehabilitation Loans (Code #3) 20

3 Strategies continued next page: E. Disaster Mitigation Repair Loans (Code #5) 25 F. Low Income Housing Tax Credit (LIHTC) Program Matching Grants (Code #21) 28 LHAP INCENTIVE STRATEGIES 30 A. Expedited Permitting 31 B. Density Bonus 32 C. Small Lot Subdivision 35 D. Accessory Single-Family Dwelling Units 39 E. Multi-Family Dwelling Units in Conjunction with 41 Commercial Development F. Housing Cost Impact Review Process 42 G. Surplus County Owned Land Inventory and Disposition 42 H. Zero Lot Line Subdivisions 42 I. Establishing/Utilizing SHIP Program 43 EXHIBITS A. Administrative Budget 47 B. Timeline for Encumbrance and Expenditure 49 C. Housing Delivery Goals Chart 50 D. Certification Page 53 E. Adoption Resolution 55 F. Program Information Sheet 58 G. Ordinance (if changed from the original) 59 H. Interlocal Agreement (if applicable) 59

4 INTRODUCTION Purpose and Intent This document, titled Indian River County Local Housing Assistance Plan, outlines and provides the general guidelines, operating procedures and assistance strategies of the Indian River County Local Housing Assistance Program as established by the Indian River County Board of County Commissioners via Ordinance 93-13; pursuant to the requirements of the State of Florida State Housing Initiatives Partnership (SHIP) Program statute and Rule Chapter 67-37, 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. PROGRAM DESCRIPTION Chapter F.A.C. and Section , F.S. A. INDIAN RIVER COUNTY, FLORIDA Section (5), F.S. Interlocal: Yes No X Name of participating local government(s) in the Interlocal Agreement; This plan is a countywide plan. Consequently, participants may reside in the unincorporated county or within any municipality in the county (City of Fellsmere, City of Sebastian, City of Vero Beach, Town of Indian River Shores, and Town of Orchid). B. Purpose of the program: Section , F.S. and Chapter (3), F.A.C. The purpose of the program is to meet the housing needs of extremely low, very low, low, and moderate-income households, to expand production of affordable housing, to preserve the existing affordable housing stock, and to further the housing element of the Indian River County Comprehensive Plan specific to affordable housing. C. Fiscal years covered by the Plan: Chapter 67-37, F.A.C. X X X D. Governance: Chapter (3), F.A.C. and Section (14), F.S. The SHIP Program has been established in accordance with Section , Florida Statutes and Chapter , Florida Administrative Code. The SHIP Program furthers the housing element of the Indian River County Comprehensive Plan. 1

5 E. Local Housing Partnership: Section , F.S. The SHIP Program builds active partnerships between government, lenders, builders and developers, real estate professionals, advocates for low-income persons, and community groups. F. Leveraging: Chapter (1)(b)(c), F.A.C. and Section (1)(a) and (1)(b3, and (1)(c),F.S. Assistance Strategies of the Plan are intended to increase the availability of affordable residential units by combining local resources and cost saving measures into a local housing partnership and using public and private funds to reduce the cost of housing. The most effective strategy for leveraging SHIP funds is purchase assistance strategy. SHIP funds may be leveraged with or used to supplement other Florida Housing Finance Corporation programs and to provide the local match to obtain federal housing grants or programs. G. Public Input: Chapter (3), F.A.C. Public input in developing or amending the Local Housing Assistance Plan is solicited in a variety of ways. One way is through coordination with existing committees, including the Indian River County Affordable Housing Advisory Committee, and the Indian River County Affordable Housing Partnership committee, a group which includes housing providers, social service providers, local lenders, neighborhood associations and county staff. Public input is also solicited through advertisements placed in the local newspaper. These advertisements announce Notices of Funding Availability as well as other information. Any plan changes are reviewed by the Board of County Commissioners at meetings which are noticed and open to the public. Copies of the plan are provided to municipalities and interested individuals for review and comment. Copy of the plan is also provided on the county s website. H. Advertising and Outreach: Chapter (6) (a), F.A.C. The county shall advertise the notice of funding availability in the Press Journal, the local newspaper of general circulation and on the county website, at least 30 days before the beginning of the application period. If no funding is available due to a waiting list, no notice of funding availability is required. I. Anti-Discrimination Policy: Section (3)( c), F.S. The county hereby acknowledges that, in accordance with the provisions of ss , it is unlawful to discriminate on the basis of race, creed, religion, color, age, sex, marital status, familial status, national origin, or handicap in the award application process for eligible housing. J. Support Services and Counseling: Chapter (5)(g),F.A.C Support services are available from various sources. Available support services may include 2

6 but are not limited to: Homebuyer s educational workshops, Homeownership Counseling (Pre and Post), Credit Counseling, and other support services provided by the county, by the Senior Resource Association, by the Community Coach, Habitat for Humanity, and other social service agencies. K. Purchase Price Limits: Section (4)(c), F.S. and Chapter (6)F.A.C The sales price or value of new or existing eligible housing may not exceed 90% of the average area purchase price in the statistical area in which the eligible housing is located. Such average area purchase price may be calculated for any 12-month period beginning no earlier than the fourth calendar year prior to the year in which the award occurs. The sales price of new and existing units may not exceed 90% of the average area purchase price established by the U.S. Treasury Department or as described above. The methodology used is: Independent Study (copy attached) X_ U.S. Treasury Department Local HFA Numbers The purchase price limit for new and existing homes is shown on the Housing Delivery Goals Charts I. Income Limits, Rent Limits and Affordability: Chapter (5)(e), F.A.C. and Section (2), F.S. The Income and Rent Limits used in the SHIP Program are updated annually by the U.S. Department of Housing and Urban Development and distributed by Florida Housing Finance Corporation. Affordable means that monthly rent or mortgage payments, including taxes and insurance do not exceed 30 percent of a household s gross income as indicated in Sections (19), (20) and (28), F.S. It is, however, not the intent of this plan to limit an individual household s ability to devote more than 30% of its income for housing. Consequently, housing for which a household devotes more than 30% of its income shall be deemed affordable if the institutional lender providing the first mortgage is satisfied that the household can afford mortgage payments in excess of the 30% benchmark. In the case of rental housing, the amount of rent shall not exceed the rental limits adjusted for bedroom size as published in rent schedule by Florida Housing Finance Corporation. M. Welfare Transition Program: Chapter (22),F.A.C. The county shall give priority to clients from the Welfare Transition and Workforce Development Initiatives programs in the selection process. N. Monitoring and First Right of Refusal: Section (3)(e)and(4)(f),F.S. In the case of rental housing, the county SHIP staff or the entity that has administrative authority for implementing the local housing assistance plan assisting rental developments shall annually monitor and determine tenant eligibility or, to the extent that another 3

7 governmental entity provides the same monitoring and determination, the SHIP staff may rely on such monitoring and determination of tenant eligibility. Any loan in the original amount of $3,000 or less shall not be subject to annual monitoring and determination of tenant eligibility requirements. Tenant eligibility will be monitored annually for at least 15 years or the term of assistance whichever is longer, unless as specified above. Eligible sponsors that offer rental housing for sale before 15 years or that have remaining mortgages funded under this program must give a first right of refusal to eligible nonprofit organizations for purchase at the current market value for continued occupancy by eligible persons. O. Administrative Budget: Chapter (6)(f)3, F.A.C. A detailed Administrative Budget, including a line-item budget of proposed Administrative Expenditures, is attached as Exhibit A. These are presented on an annual basis for each state fiscal year submitted. Indian River County commits to using the funds deposited in the local housing assistance trust fund to administer and implement the local housing assistance plan. In accordance with Chapter 67-37, Florida Administrative Code, the cost of administering the plan does not exceed 10 percent of the local housing distribution funds and 5 percent of program income deposited into the trust fund. The cost of administering Indian River County s program may not exceed 10 percent of the local housing distribution plus 5 percent of program income deposited into the trust fund. The county has adopted the above findings in the attached resolution, Exhibit E. P. Program Administration and Implementation Activities: 1. Application Periods: Applications for participation in the IRCLHAProgram will be accepted per timeframes indicated in annual advertisement. Advertisements and notices to promote the IRCLHAProgram shall include application information for the IRCLHAProgram, and production of the advertisements and notices shall constitute a part of the administrative application preparation and review processing activities. Funds from the IRCLHATF shall be allocated for encumbrance on a first application complete, first application served basis as applicants are approved and qualified for participation in the program. Furthermore, the encumbrance of funds in a manner, which would not comply, with the requirements of the IRCLHAProgram and the IRCLHAPlan is not permitted. 2. Application Processing Applications submitted by eligible persons for participation in the IRCLHAProgram shall be reviewed by staff members of the SHIP Office or separate third party under 4

8 contract to conduct application reviews for the IRCLHAProgram. A maximum of one hundred eighty (180) 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 and available funding. Applications will be approved based on first application completed, first application reviewed by the county loan review committee. a. Following is a general application process for loans. At the application acceptance period, each applicant receives an application number, which is given to him by the IRCLHAProgram staff in consecutive order. At the end of the application acceptance period, staff will conduct application reviews based on the first application submitted first application to be reviewed. For incomplete applications, staff will send the applicant a letter letting him or her know what is needed to complete the application. For complete applications, staff will verify the household s income and assets and then send an eligibility (commitment) letter to the applicant, indicating the household s information and informing the applicant that a specific amount of the funds is reserved for him for 90 days. The eligibility letter identifies what is needed for an application to be ready for Loan Review Committee review. The Loan Review Committee consists of three members: the Indian River County Community Development Director or his designee, a financial institution representative or his or her alternates, a member of the Indian River County Board of County Commissioners or his or her designee, who shall serve as chairman of the Loan Review Committee. The completed applications will then be submitted to IRCLHAProgram Loan Review Committee (LRC) based on first application completed, first application submitted. After Loan Review Committee approval, staff will send a Loan Review Committee approval letter to the applicant and notify him that the loan/grant must be closed within 90 days. The Loan Review Committee approval letter specifies steps and documents needed prior to scheduling a loan closing. Mortgage document and promissory notes are then prepared, and a closing is scheduled. At the closing, the applicant signs all appropriate documents and then funds are expended as needed. b. Additional general application process for rehabilitation loans. Based on the work write-up, staff will solicit bids from contractors who have been prequalified to do SHIP work. The applicant may also invite any licensed contractors to attend the walkthrough and submit bids to the county based on the work write-up. Once bids are submitted, the LHAP inspector reviews them to ensure that they are consistent with the work write-up. Where the proposed 5

9 rehabilitation project is minimal or involves specific activity such as replacement of a septic tank, there will be no work write-up. In such cases the applicant must contact licensed contractors, obtain at least two comparable bids for the exact same job and then submit the bids to the county. The applicant must then choose one of the bids. Completed applications are then submitted to the IRCLHAProgram Loan Review Committee (LRC) based on first application completed, first application submitted. After the recorded documents are returned from the county courthouse, staff sends a notice to proceed to the contractor. The contractor then pulls building permits and completes the work. The appropriate jurisdiction s building department inspector inspects the completed work, and the contractor sends the final bill to the county. For loans that are paid back and for loans that terminate after affordability timeframe, staff will prepare and record a Satisfaction of Mortgage. 3. Applicant Criteria Eligible persons or sponsors applying for participation in the IRCLHAProgram shall comply with the following requirements: a. Income Level All households shall be classified as very low, low, or moderate income households. Household income includes gross annual income of every member of the household 18 years and older. Income inclusion and exclusions will be based on guidelines provided by the Florida Housing Finance Corporation b. Employment Verification Applicants seeking assistance from the IRCLHAProgram to purchase eligible housing units shall be eligible persons meeting one of the following employment criteria: i. Suitable documentation indicating current, continuous employment for a minimum of one (1) year; or ii. Suitable documentation indicating current employment (within twelve (12) months of an application submittal) as a seasonal farm worker, with a minimum of two (2) consecutive years as a seasonal farm worker, whereby the first period of seasonal employment shall have been for the full duration of the season, and the second period shall have been for a minimum of one-half (1/2) of the current season, if the eligible person(s) may be classified as a seasonal farm worker(s); or 6

10 iii. An eligible elderly, disabled, or person(s) classified, as a person(s) with special housing needs, excluding seasonal or migrant farm workers, shall be exempt from any employment requirement for participation in the IRCLHAProgram. c. Asset Verification Total assets (cash or non-cash items that can be converted to cash) not including IRA, Keogh and similar retirement savings accounts of eligible persons applying to purchase a housing unit under, or occupy a housing unit assisted by, the IRCLHAProgram shall not exceed twenty thousand dollars ($20,000.00). Assets to be considered will be determined based on guidelines provided by the Florida Housing Finance Corporation (a copy attached as exhibit G). d. Credit Verification 1. Credit Requirement for Purchase Assistance Loans For applicants applying for both SHIP purchase assistance loan and a loan from a financial institution, the applicable financial institution shall determine whether each applicant's credit is satisfactory based upon the applicable financial institution's credit standards. 2. Credit Requirement for Rehabilitation and Impact Fee Loans Applicants for rehabilitation and impact fee loans will be deemed to have satisfactory credit if the applicable credit report shows that there is no active lien or foreclosure action against the applicant or applicant s property. For rehabilitation loans to very low and low income households using SHIP funds as match for CDBG funds, Residential Construction Mitigation Program (RCMP) funds, or other state and federal rehabilitation funding, no credit requirements shall apply. e. First-Time Homebuyer Status A first-time homebuyer is an individual who meets any of the following criteria: An individual who has had no ownership in a principal residence during the 3- year period ending on the date of purchase of the property. This include a spouse (if either meets the above test, they are considered first-time homebuyers). A single parent who has only owned with a former spouse while married. An individual who is a displaced homemaker and has only owned with a spouse. An individual who has only owned a principal residence no permanently affixed to a permanent foundation in accordance with applicable regulations. 7

11 An individual who has only owned a property that was not in compliance with state, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure. f. Home Inspection For applicants applying for both SHIP funds and a loan from a financial institution, the applicable financial institution shall determine what type of home inspection is needed. The financial institution shall arrange for the inspections through their established procedures and shall be responsible for all approval contingencies. For Purchase Assistance loans, the following inspections for all existing housing units five years or older is required: i. Termite Inspection ii. Roof iii. Plumbing system iv. Electrical system v. Heating and air conditioning system All county required inspections must be performed by public service licensed inspectors; registered or certified residential, building, or general contractors; or licensed trade contractors as appropriate. Home inspection reports requested by the county shall be reviewed by the county's building officials to determine the condition of the home. Based on the results of the home inspection review by the bank or the county, one of the following three actions will be taken: i. If the home is in good condition, the down payment/closing cost loan application will be submitted to the loan review committee for approval; ii. iii. If the home needs some rehabilitation work and if the applicant is eligible to receive a combination down payment/closing cost and rehabilitation loan, a combined down payment/closing cost and rehabilitation application will be submitted to the loan review committee for approval; or If the home is in excessive disrepair and cannot be fixed, the loan application will not be approved. Home inspection charges are considered to be eligible closing cost expenses and payable through SHIP funds. In cases where the county requests a home inspection, but due to the condition of the home a down payment/closing cost loan cannot be approved, the cost of the home inspection will be paid through the administration portion of SHIP funds. 8

12 4. Application Review Applications shall be reviewed by SHIP program staff or the third party entity identified by contract to conduct application review activities for compliance with the criteria listed in the previous section. Those applications not satisfying the review criteria shall be classified as disqualified. Applications satisfying the review criteria shall be submitted to the IRCLHAProgram Loan Review Committee (IRCLHAPRC) for final review and approval of the application. a. Disqualified applicants shall be informed of the areas causing denial of the submitted application and be encouraged to correct the reasons for denial if possible and then reapply. b. Applicants approved for participation in the IRCLHAProgram shall be issued a Notice of Commitment (eligibility letter) indicating that the applicant has qualified for participation in the IRCLHAProgram; this notice shall also indicate the award type and the amount of the award. The Notice of Commitment shall be valid for a maximum of ninety (90) working days. The applicant must obtain a written extension letter to maintain the Notice of Commitment beyond the ninety (90) day maximum. Q. Essential Service Personnel: Chapter (8) F.A.C. and Chapter (8), F.A.C. Persons in need of affordable housing who are employed in occupations or professions, such as Law Enforcement, Fire and Emergency Services, Public Administration, Education, Health Care, Public Utilities, and similar fields, which are considered essential services. R. Special Need Households: The county shall give first priority to person with special needs as defined below (13), F.S. Person with special needs means an adult person requiring independent living services in order to maintain housing or develop independent living skills and who has a disabling condition: a young adult formerly in foster care who is eligible for services under s (5); a survivor of domestic violence as defined in s ; or a person receiving benefits under the Social Security Disability Insurance (SSDI) program or the Supplemental Security Income (SSI) program or from veteran s disability benefits. S. Green Building Green building (also known as green construction or sustainable building) refers to a structure and using process that is environmentally responsible and resource-efficient throughout a building s life-cycle from siting to design, construction, operation, maintenance, renovation, and demolition. In other words, green building design involves finding the balance between homebuilding and the sustainable environment. The Green Building practice expands and complements the classical building design concerns of 9

13 economy, utility, durability and comfort. Leadership in Energy and Environmental Design (LEED) is a set of rating systems for the design, construction, operation, and maintenance of green buildings which was Developed by the U.S. Green Building Council. Although new technologies are constantly being developed to complement current practices in creating greener structures, the common objective is that green buildings are designed to reduce the overall impact of the built environment on human health and the natural environment by: Efficiently using energy, water, and other resources Protecting occupant health and improving employee productivity Reducing waste, pollution and environmental degradation LHAP HOUSING STRATEGIES: Chapter (5), F.A.C. Local Housing Assistance Program Strategies The strategies available for use in the IRCLHAProgram will serve to effectively reduce the cost of housing in two ways. The first is by awarding rehabilitation loans to very low and low income eligible recipients. These loans will convert to forgivable grants after ten years. The second method of reducing the cost of housing is by providing income eligible applicants deferred payment, subordinated rehabilitation and/or purchase assistance loans. Such loans result in reduced costs indefinitely. By providing the assistance strategies identified herein, the IRCLHAProgram will encourage the provision of affordable housing. A total of six (6) assistance strategies are available for use by the Indian River County Local Housing Assistance Program (IRCLHAProgram) in providing assistance to eligible persons or sponsors. 10

14 A. Impact Fee/Capacity Charges Loans (Code #8) a. Summary of the Strategy: To assist income eligible persons with the cost of impact fees and/or water and sewer capacity charges for owner occupied housing units anywhere in Indian River County. b. Fiscal Years Covered: FY , FY , FY c. Income Categories to be served: Very Low-Income Persons (Not to exceed 50% of median income) Low-Income Persons (between 51-80% of median income). Moderate-Income Persons (between % of median income)-in conjunction with down payment/closing cost loans only. d. Maximum award: The county provides loans for the actual amount of impact fees and capacity charges, not to exceed $20,000 per unit for the cost of impact fees and/or capacity charges. e. Terms, Recapture, Default: Impact fee/capacity charge loans in conjunction with purchase assistance loans are deferred payment 30 year loans secured by a mortgage and note whereby repayment of the entire loan and accumulated interest will be forgiven after 30 years of occupancy. There will be 3% simple annual interest rate for impact fee/capacity charge loans. Impact fee/capacity charges deferred payment loans not associated with purchase assistance for Very Low and Low Income households are for 10 year and the original loan amount and interest accumulated will be forgiven after 10 years occupancy. For Moderate Income household or for impact fees and/or water and sewer capacity charges in conjunction with Purchase Assistance strategy: the original loan amount and accumulated interest will be forgiven after 30 years occupancy. The repayment of funds awarded as an impact fee/capacity charges loan is not required, except in cases whereby the eligible housing unit is sold, occupied by someone other than the original loan recipient prior to termination of the unit's affordable classification timeframe, or refinanced with cash out prior to termination of the affordability timeframe. In these cases, repayment of the entire original loan amount and accumulated interest is required. Program income funds and program income will be deposited in the county s affordable housing trust fund. 11

15 In the event of the death of the homeowner, an income eligible heir may assume the county SHIP loan as long as the home is utilized as household s homesteaded property. SHIP Deferred Payment Loans (DPL), in conjunction with CDBG funded projects, will be forgiven in 5 years or upon death of the homeowner, whichever comes first. f. Recipient Selection Criteria: Eligible applicants will be approved for assistance on a first qualified first served basis subject to funding availability. Applicants will be chosen per the following criteria: i. Income Eligibility ii. Employment Verification iii. Asset Verification iv. Homebuyer Status As needed applicants may reapply for new capacity charge loans when water or sewer service becomes available. First time applicants will be given priority over previously assisted persons. Exceptions may be made for eligible property owners in cases where living conditions threaten the personal health and safety of the household. Property taxes must be current and property must be free of code enforcement liens. g. Sponsor Selection Criteria: Non-profit organizations or for-profit developers may utilize this strategy only when the impact fee/capacity charges loan is a match for another housing program, such as the CDBG Program, Home Investments Partnership (HOME), Low Income Housing Tax Credit Program (LIHTC), State Apartment Incentive Loan Program (SAIL), Multi- Family Mortgage Revenue Bond Program,, or other state and federal housing programs. Non-profit organizations or for-profit developers eligible to participate in the local housing assistance program shall be selected according to the following criteria: i. Ability to proceed with the construction or rehabilitation activities and receive a certificate of occupancy within one year of the closing transaction date ii. Number of units provided per year iii. Ability to provide maximum leverage against SHIP funds iv. The length of time the organization has been in Indian River County v. Experience in the development of affordable housing vi. The non-profit organization must be an entity with current 501(c)(3) tax-exempt status vii. Priority will be given to organizations, which employ personnel from the Welfare Transition Program. h. Additional Information: i. Geographic Area Impact fee/capacity charge loans may be made anywhere in the county, 12

16 including all municipalities located within the county. ii. Housing Unit Classification All housing units shall be owner-occupied. iii. Impact fee/capacity charge loans may be given in combination with purchase assistance or rehabilitation loans. B. Purchase Assistance Loans (Codes #1 & #2) a. Summary of the Strategy: To assist eligible persons with down payment and closing costs as well as principal reduction associated with the purchase of a home. b. Fiscal Years Covered: FY , FY , FY c. Income Categories to be served: Very Low-Income Persons (Not to exceed 50% of median income) Low-Income Persons (between 51-80% of median income) Moderate-Income Persons (between % of median income) d. Maximum award: Very Low-Income Person $20,000 Low-Income Person $15,000 Moderate-Income Person $10,000 e. Terms, Recapture, Default: Purchase assistance loans are deferred payment 30 year loans secured by a mortgage and note whereby repayment of the entire loan amount and accumulated interest occurs at the time that the eligible housing unit is sold, refinanced with cash out, or occupied by someone other than the original loan recipient. There will be 3% simple annual interest rate for Purchase Assistance loans. After 30 years the original loan amount and accumulated interest will be forgiven. Eligible persons may repay the entire amount of the loan at any time. In the event of the death of the homeowner, an income eligible heir may assume the county SHIP loan as long as the home is utilized as household s homesteaded property. f. Recipient Selection Criteria: Eligible applicants will be approved for assistance on a first qualified first served basis subject to funding availability. Applicants will be chosen per the following criteria: 13

17 i. Income Eligibility ii. Employment Verification iii. Asset Verification iv. First time Homebuyer Status v. Credit Verification and/or approval from the financial institution that is granting the first mortgage vi. Approval of first mortgage by a financial institution vii. Attendance and completion of County s Homebuyer s Educational Workshop (receiving the Homebuyer s Educational Workshop Certificate). g. Sponsor Selection Criteria: N/A h. Additional Information: i. Geographic Area Purchase assistance loans may be made anywhere in the county, including all municipalities located within the county. ii. Housing Unit Classification All housing units shall be owner-occupied single family or condominium residences. iii. iv. Purchase assistance loans can be given in combination with a rehabilitation or impact fee loan, for purchase of existing homes or combination with an impact fee/capacity charge loan for construction of a new unit. As structured, the program does not require an applicant to provide a minimum monetary contribution towards the down payment or closing costs. This program policy, however, does not exempt an applicant from a financial institution s minimum monetary contribution requirement, if applicable. v. No owner financing is allowed. All purchase assistance applicants must receive their first mortgage from a financial institution. vi. Except as otherwise provided for herein, SHIP purchase assistance funds shall not be provided to any household where for the household s first mortgage projected monthly housing cost, including mortgage principal, interest, taxes, and insurance, will exceed 30% of the household s gross income, or where the household s total debt will exceed 41% of the household s gross income. It is not, however, the intent of this plan to limit an individual household s ability to direct more than 30% of its income for housing if the first institutional mortgage lender is satisfied that the applicant household can afford mortgage payments in excess of the 30% benchmark. For that reason, the monthly housing cost to gross income ratio (front end 14

18 ratio) may be up to 35% as long as the back end ratio does not exceed 41%. In such cases, the first mortgage lender must inform the county in writing of its determination. This determination must be based on specific characteristics applicable to the applicant such as the applicant s debts being short term, the applicant having a good history of debt management, or other pertinent reasons. These requirements apply to all income categories. With the exception of very low and low income Habitat for Humanity applicants, a household s monthly housing cost to income ratio (front end ratio) shall not fall below 20%. Because Habitat for Humanity mortgages carry a 0% interest rate, Habitat for Humanity clients may have a monthly housing cost less than 20% of gross income. In the case of Habitat for Humanity clients, the front end ratio may be as low as 17%. Housing units constructed as new units, within one calendar year, substantially rehabilitated within one (1) calendar year prior to purchase, or units to be rehabilitated in conjunction with the down payment/closing cost shall be classified as constructed, rehabilitated, or repaired units. Indian River County has a lending consortium, consisting of local banks and financial institutions. Pursuant to the consortium s rules, consortium members waive certain fees and charge interest rates equal to or less than the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation 30 to 60 day rate for principal mortgages provided to SHIP purchase assistance loan recipients. Only members of the Indian River County Lending Consortium may provide first mortgages to SHIP recipients. The maximum term of a first mortgage shall not exceed 30 years. The maximum interest rate for the first mortgage shall not exceed the Federal National Mortgage Association (FNMA) or Federal Home Loan Mortgage Corp. (FHLMC) fixed rate 30 or 60-day delivery (published daily in the Wall Street Journal) rounded up to the nearest.125%. For SHIP purchase assistance loans, the number of points, which may be charged by the financial institution providing the first mortgage, shall be as follows: For conventional loans, up to one (1) point may be paid from SHIP funds. If a lender does not charge any points on a principal mortgage associated with a SHIP purchase assistance loan, the lender may increase the interest rate on the first mortgage up to a maximum of 1 percentage point above the maximum interest rate referenced above. For FHA loans, a maximum of one (1) point may be paid from SHIP funds. For "bond program" loans only, more than one (1) point may be paid from SHIP funds. For applicants to be eligible to receive SHIP funds for down payment/closing costs, the first mortgage loan must be a fixed rate loan. No loan requiring a 15

19 balloon payment is acceptable for any income group. For all purchase assistance loans a copy of the first mortgage title insurance must be provided to SHIP office. Purchase assistance loans may be leveraged with loans from financial institutions, USDA Rural Development, Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), Community Workforce Housing Innovation Pilot Program (CWHIP, and other applicable State or Federal Programs. vii. Maximum purchase price shall not exceed 90% of the average area purchase price as established by the U.S. Treasury Department and published by Florida Housing Finance Corporation. Maximum purchase price for new and existing single-family homes and condos is $261,923 viii. Subordination of SHIP mortgages associated with first mortgage refinancing shall be subject to the following requirements. No existing SHIP mortgage will be subordinated to a refinanced first mortgage unless the following requirements are met: Requirements for a Refinanced Mortgage Maximum Maximum Interest Rate Term Allowed Allowed 30 Years Must be a fixed rate loan, and interest rate must be lower than the existing first mortgage interest rate. Maximum First Mortgage Amount Allowed Not to exceed the original first mortgage amount. Any available equity up to the original mortgage amount may be used for closing costs associated with the refinancing. Maximum Points Allowed For purchase assistance loans up to 1 point allowed For other loans up to 2 points allowed No cash out to applicant ix. Partial Loan Payment The county s Loan Review Committee (LRC) will review all requests for partial loan payments on a case-by-case basis. However, the county will not accept any partial loan payment less than 20% of the original loan, unless it is proven that it is in the best interest of the county to accept a partial loan payment of less than 20%. 16

20 C. Emergency Rehabilitation Loans (Code #6) a. Summary of the Strategy: To fund all or a portion of the cost encountered for emergency repair of existing owneroccupied housing units to prevent further damage to the unit or to make it habitable with temporary repairs. This strategy shall be used in cases where the health department or a jurisdiction s building official determines that a structure or other items such as a septic tank is in such condition that it threatens the occupant s health or safety. b. Fiscal Years Covered: FY , FY , FY c. Income Categories to be served: Very Low-Income Persons (not to exceed 50% of median income) Low-Income Persons (51 to 80% of the county s median income) Moderate-Income Persons (81-120% of median income) d. Maximum award: The maximum monetary award for an emergency repair loan shall not exceed: Up to $20,000 per single family or a condominium-housing unit. e. Terms, Recapture, Default: Emergency rehabilitation loans are deferred payment 10 year loans secured by a mortgage and note. The repayment of funds awarded as an emergency rehabilitation loan is not required, except in cases where the assisted housing unit is sold, refinanced with a cash out prior to termination of the unit s affordable classification timeframe (10 years), or occupied by someone other than the original loan recipient. In cases where the unit is sold, refinanced with a cash out, or occupied by someone else, the entire original loan amount and accumulated interest must be paid back. There will be 3% simple interest rate for emergency rehabilitation loans. After 10 years the original loan amount and accumulated interest will be forgiven. Program income funds will be deposited in the County s affordable housing trust fund. Eligible persons may repay the entire amount of the loan at any time. In the event of the death of the homeowner, an income eligible heir may assume the County SHIP loan as long as the home is utilized as household s homesteaded property. f. Recipient Selection Criteria: Eligible applicants will be approved for assistance on a first qualified first served basis subject to funding availability. Applicants will be chosen per the following criteria: 17

21 i. Emergency needs identified by a building official or health department. ii. Income Eligibility First time applicants will be given priority over previously assisted persons. Exceptions may be made for eligible property owners in cases where living conditions threaten the personal health and safety of the household. Property taxes must be current and the property must not be in a foreclosure process. g. Other Emergency Rehabilitation Loan Requirements: The IRCLHAProgram anticipates providing emergency rehabilitation loans to eligible very low income and low-income households to fund all or a portion of the cost of emergency repair for existing single-family or condominium owner occupied housing units. Emergency repair loans will not be awarded for repair work previously completed. All emergency repair work must be performed by licensed contractors. Emergency rehabilitation loans may be awarded, if needed, for repair work activities which are essential to make a house safe for habitation and/or to prevent further damage to the house. Emergency repair loans may not be awarded in combination with purchase assistance loan assistance. Emergency rehabilitations eligible for SHIP funding are limited to weatherization activities and repair activities to prevent further damage to the house. Weatherization means materials or measures and their installation which are used to improve the thermal efficiency of a residence. SHIP funds may be provided for emergency repairs with at least two written licensed contractor estimates and an expedited approval process. The contractor with the lowest bid will be awarded the job. Emergency rehabilitation loans may be awarded for the following rehabilitation work activities. i. Roof repair and shoring activities to protect and stabilize housing unit ii. Plumbing work found to be unsafe by a jurisdiction s building official or his designee iii. Electrical work found unsafe by a jurisdiction s building official or his designee iv. Repair of septic tank, lift station, drain field or private well as required by the public health department v. Demolition of unsafe structures For any other rehabilitation needs the applicant may apply under regular rehabilitation loan assistance strategies. Emergency rehabilitation loan amounts shall be based upon the lowest written licensed contractor estimate for the scope of work, identifying all necessary repair work and the expected costs of the repair work. Once the contractor estimate is selected and the emergency repair loan amount including contingencies is established, no additional funds may be awarded. The contractor estimate must identify all potential costs (including building permit fees) to be encountered in completing the repair work. 18

22 Change orders must be approved by the county. The applicant or his contractor must obtain a building permit from the corresponding jurisdictional Department of Health or building department for all repair activities. The funds for emergency rehabilitation loans of less than $5, shall be delivered upon completion of all repair work and a satisfactory final inspection by the corresponding jurisdictional Building Department that all required repair activities for the eligible housing unit are completed. Funds for emergency rehabilitation loans of $5, or more may be delivered in individual draws, not to exceed three draws total, based upon the completion of individual components of the repair work and inspection by the corresponding jurisdictional Building Department or the local housing assistance program staff. Each partial draw including the final draw of funds shall not be less than $5,000 and it shall be delivered upon completion of all repair work and a satisfactory final inspection by the corresponding jurisdictional Building Department and the county designated inspector that all required repair activities for the eligible housing unit are completed. No SHIP funds will be paid for any work completed prior to issuance of the county notice to proceed. Emergency rehabilitation loans may be leveraged with private funds, small city Community Development Block Grant (CDBG) funds, weatherization funds, HUD transitional housing funds, or other state and federal programs as appropriate. h. Additional Information: i. Geographic Area Emergency rehabilitation loans may be made anywhere in the county, including all municipalities located within the county. ii. Housing Unit Classification Eligible housing units receiving emergency rehabilitation loans must be owner-occupied single-family or condominium residences. Mobile homes are not eligible. 19

23 D. Rehabilitation Loans (Code #3) a. Summary of the Strategy: To fund all or a portion of the cost encountered in rehabilitating existing owner-occupied housing units or rehabilitation of acquired owner occupied housing units in conjunction with purchase assistance loans. b. Fiscal Years Covered: FY , FY , FY c. Income Categories to be served: Very Low-Income Persons (Not to exceed 50% of median income) Low-Income Persons (between 50-80% of median income) Moderate-Income Persons (between % of median income) in conjunction with purchase assistance loans only d. Maximum award: The maximum monetary award for a rehabilitation loan shall not exceed: $50,000 per single family or a condominium-housing unit. e. Terms, Recapture, Default: Stand alone rehabilitation loans are deferred payment 10 year loans whereby repayment of the entire loan amount and accumulated interest occurs at the time the eligible housing unit is sold, refinanced with cash out, or occupied by someone other than the original recipient. There will be 3% simple annual interest rate for rehabilitation loans. The entire loan amount and interest accumulated will be forgiven after 10 years occupancy for very low and low income households. Rehabilitation loans that are given in conjunction with purchase assistance loans (Purchase Assistance with Rehabilitation) are 30 year loans. Therefore, the principal loan amount and accumulated interest will be forgiven after 30 years occupancy. Program income funds will be deposited in the county s affordable housing trust fund. The loan recipient may repay the entire amount of the loan at any time. In the event of the death of the homeowner, an income eligible heir may assume the county SHIP loan as long as the home is utilized as household s homesteaded property. f. Recipient Selection Criteria: Eligible applicants will be approved for assistance on a first qualified first served basis subject to funding availability. Applicants will be chosen per the following criteria: 20

24 i. Income Eligibility ii. Employment Verification iii. Asset Verification iv. Credit Verification for moderate income households only First time applicants will be given priority over previously assisted persons. g. Other Rehabilitation Loan requirements: The IRCLHAProgram anticipates providing low interest loans to eligible households to fund all or a portion of the cost encountered in rehabilitating of existing or rehabilitating acquired housing units eligible for occupancy by eligible persons. Rehabilitation loans shall be provided consistent with the requirements of the county s minimum standards for rehabilitation of residential properties document. Rehabilitation loans will not be awarded for rehabilitation work completed prior to the county loan approval. All rehabilitation work must be performed by licensed contractors. Rehabilitation loans may be awarded only for rehabilitation work activities that are identified in the county s designated inspector work write-up and include only items that are in poor condition and cannot be repaired. Rehabilitation loans may be awarded for the following rehabilitation work activities: 1. Roof (shingle or 5V metal), including replacement of all rotten wood 2. Plumbing work as needed 3. Electrical work as needed 4. Heating and air conditioning, including insulation and ceiling fans 5. Replacement of doors, garage doors, and windows, if in poor condition 6. Replacement of kitchen cabinets and countertops, if in poor condition with plastic laminate type 7. Patching or replacement of dry wall as needed 8. Painting, carpeting, and vinyl flooring, only as part of larger rehabilitation work 9. Replacement of rotted siding 10. Replacement of bathroom tubs, lavatories, and sinks, as needed to bring the units to a safe and sanitary standard 11. Replacement of kitchen sinks as needed 12. Pressure wash, only to prepare for any allowed painting or repair 13. Driveway/culvert (only if no driveway exists) 14. Repairs to make a house accessible for a disabled member of a household 15. Repair or replacement of septic tank, lift station, drain field or private well as required by the public health department 16. Termite repairs and treatment 17. Installation of Aluminum storm window shutters 18. Installation of gutters 19. Hurricane Mitigation work activities 20. Replacement of water heater as needed 21. Other repairs as required by the building department to bring the house up to current minimum housing code 22. Replacement of stairs as needed 21

25 23. Application of green building standards to increase the energy efficiency of the unit 24. Repair of permitted porch to make it safe 25. Replacement of range hood if existing is not working; installation if none existing 26. Repair or replacement of existing smoke alarm and/or carbon monoxide alarm; installation if none existing 27. Plastic screen, metal screen, or metal mesh for soffit vents 28. other needed rehabilitation work approved by the SHIP administrator Following rehabilitation work activities are NOT eligible for SHIP funding: 1. Appliances 2. Wood and/or wood-laminate flooring 3. Carpeting which is not part of larger rehabilitation work 4. Tile floor or wall (except in bathrooms) 5. Patio and porch addition 6. Painting which is not part of larger rehabilitation work 7. Building a garage or any house addition 8. Landscaping, sodding, and similar work 9. Any kind of cosmetic work 10. Swimming pool and similar facilities 11. Tile or slate roofing 12. Hardi plank siding unless replacing existing portions 13. Fence Rehabilitation loan amounts shall be based upon a minimum of two written licensed contractor estimates for the exact same scope of work, identifying all necessary rehabilitation work and the expected costs of the rehabilitation work. One bid may be allowed at the discretion of the LHAP Administrator. Contractors estimates for major rehabilitation work must be based on a work write-up prepared by the county designated inspector. The applicant shall choose one of the contractors to complete the identified rehabilitation work provided that the contractor cost estimate does not exceed 110% of the estimate provided by the county designated inspector. When there is no work writeup applicant must receive two comparable bids for the exact same job from two licensed contractors. In this case, the applicant shall choose one of the acceptable bids provided that the contractor s cost estimate does not exceed 5% of the average of all bids provided. Where the proposed rehabilitation is minimal or involves specific activities such as replacement of a septic tank, replacement of A/C, roof, window shutters and other similar work, there may be no work write-up. In such cases the applicant must contact licensed contractors, obtain at least two comparable bids for the exact same job and submit the bids to the county. Once the contractor estimate is selected and the rehabilitation loan amount including contingencies established, no additional funds may be awarded. The contractor estimate must identify all potential costs (including building permit fees) to be encountered in completing the rehabilitation work. Change orders must be approved by the county designated inspector or local housing assistance program staff. Additionally, the applicant will be required, as part of the application process, to pay for a credit report 22

26 when required. The applicant or his contractor must obtain a building permit from the corresponding jurisdictional building department for all rehabilitation work activities. The funds for rehabilitation loans of less than $5,000 shall be delivered upon completion of all rehabilitation work and a satisfactory final inspection by the corresponding jurisdictional Building Department and the county designated inspector or local housing assistance program staff that all required rehabilitation activities for the eligible housing unit are completed. Funds for rehabilitation loans of $5, or more may be delivered in individual draws, not to exceed five draws total, based upon the completion of individual components of the rehabilitation work and inspection by the corresponding jurisdictional building department and the county designated inspector or the local housing assistance program staff. Each partial draw of funds shall not be less than $5,000 and it shall be delivered upon completion of all rehabilitation work and a satisfactory final inspection by the corresponding jurisdictional Building Department and the county designated inspector or the local housing assistance program staff that all required rehabilitation activities for the eligible housing unit are completed. Contractor must submit invoice, a copy of the final inspection report, signed and notarized contractor s final affidavit, contractor final waiver of lien, and sub-contractors final waiver of lien (if any). Staff will make sure that the final draw is not less than $5,000 by keeping track of all draw requests. No SHIP funds will be paid for any work completed prior to the county s notice to proceed. Rehabilitation loans can be leveraged with private funds, small city Community Development Block Grant (CDBG) funds, weatherization funds, and other state and federal programs as appropriate. h. Additional Information: i. Geographic Area Rehabilitation loans may be made anywhere in the county, including all municipalities located within the county. ii. Housing Unit Classification Eligible housing units receiving rehabilitation loans must be owner-occupied single-family, or condominium residences. Mobile homes are not eligible. iii. Rehabilitation loans can be given in combination with downpayment/closing cost loans, and impact fee/capacity charge loans. i. Residential Hurricane Mitigation: The county will match SHIP funds with My Safe Florida Home Funds for hurricane resistant retrofit improvements to owner occupied site built homes to reduce potential future hurricane damage. The county shall advertise the availability of My Safe Florida Home funds, accept applications from very low, low, and moderate income homeowners with homestead exemptions for homes that have insured values 23

27 not exceeding $261,973 (SHIP program maximum). Applications will be reviewed on first qualified, first served basis. Applications, however, will be approved based on first application completed, first application to receive funding. Eligible retrofit improvements work activities include the following: 1. Improving the strength of the roof deck attachment 2. Creating a secondary water barrier to prevent water intrusion 3. Improving the survivability of the roof covering 4. Bracing gable-ends in the roof framing 5. Reinforcing roof-to-wall connections 6. Upgrading exterior wall opening protections 7. Upgrading exterior doors 24

28 E. Disaster Mitigation Repair Loans (Code #5) a. Summary of the Strategy: To fund all or a portion of the cost encountered for disaster related repair of existing owner-occupied housing units to prevent further damage to the unit or to make it habitable with temporary repairs. This strategy shall be used in the event of a disaster declared by state or federal executive order. This strategy will be implemented only in the event of a disaster using any funds that have not yet been encumbered and/or additional disaster funds issued by the Florida Housing Finance Corporation. b. Fiscal Years Covered: FY , FY , FY c. Income Categories to be served: Very Low-Income Persons (not to exceed 50% of median income) Low-Income Persons (51 to 80% of the county s median income) Moderate-Income Persons (81 to 120% of median income) d. Maximum award: The maximum monetary award for a disaster mitigation repair loan shall not exceed: Up to $30,000 per single family or a condominium-housing unit. e. Terms, Recapture, Default: Disaster mitigation repair loans are deferred payment 10 year loan secured by a mortgage and note. The repayment of funds awarded as a disaster mitigation repair loan is not required, except in cases where the assisted housing unit is sold, refinanced with a cash out prior to termination of the unit s affordable classification timeframe (10 years) or occupied by someone other than the original loan recipient. In cases where the unit is sold, refinanced with a cash out, or occupied by someone else, the entire original loan amount and accumulated interest must be paid back. There will be 3% simple interest rate for disaster mitigation repair 10 year loans. After 10 years the entire loan amount and accumulated interest is forgiven. Eligible persons may repay the entire amount of the loan at any time. In the event of the death of the homeowner, an income eligible heir may assume the county SHIP loan as long as the home is utilized as household s homesteaded property. f. Recipient Selection Criteria: Eligible applicants will be approved for assistance on a first qualified first served basis 25

29 subject to funding availability. Applicants will be chosen per the following criteria: i. disaster related rehabilitation needs ii. Income Eligibility To expedite approval process, a Disaster Self Certification of Income Form may be utilized. g. Other Disaster Mitigation Repair Loan Requirements: The IRCLHAProgram anticipates providing disaster repair 10 year loans to eligible, very low income, and low-income households to fund all or a portion of the cost of disaster repair for existing single-family or condominium owner occupied housing units. Disaster repair loans will not be awarded for repair work previously completed. All disaster repair work must be performed by licensed contractors. Disaster loans may not duplicate repairs that may be done by the resident s homeowners insurance, FEMA, and similar assistances. Disaster repair loans may be awarded if needed for repair work activities which are essential to make a house safe for habitation and/or to prevent further damage to the house. Disaster repair loans may not be awarded in combination with a purchase assistance loan. Disaster repair loans will be used in the event of a natural, state, or federally declared disaster. SHIP funds may be provided for disaster associated repairs with only one written licensed contractor estimate and expedited approval process. Disaster repair loans may be awarded only for rehabilitation work activities related to a declared emergency or disaster. Disaster repair loans may be awarded for the following rehabilitation work activities. i. Purchase of emergency supplies for eligible households to weatherproof damaged homes; ii. Interim repairs to avoid further damage; tree and debris removal required to make the individual housing habitable; iii. Construction of wells or repair of existing wells where public water is not available; iv. Payment of insurance deductibles for rehabilitation of homes covered under homeowner insurance and homeowner association policies; v. Other activities as proposed by the County and approved by Florida housing Finance Corporation. For any other rehabilitation needs, the applicant may apply under regular rehabilitation loan assistance strategies. 26

30 Disaster repair loan amounts shall be based upon a written licensed contractor estimate for the scope of work, identifying all necessary repair work and the expected costs of the repair work. The applicant shall choose a licensed contractor to complete the identified repair work. Once the contractor estimate is selected and the disaster repair loan amount including contingencies is established, no additional funds may be awarded. The contractor estimate must identify all potential costs (including building permit fees) to be encountered in completing the repair work. Change orders must be approved by the county. The applicant or his contractor must obtain a building permit from the corresponding jurisdictional building department for all repair activities. The funds for disaster repair 10 year loans of less than $5, shall be delivered upon completion of all repair work and a satisfactory final inspection by the corresponding jurisdictional Building Department and the county designated inspector that all required repair activities for the eligible housing unit are completed. Funds for disaster repair 10 year loans of $5,000 or more may be delivered in individual draws, not to exceed three draws total, based upon the completion of individual components of the repair work and inspection by the corresponding jurisdictional Building Department and the county designated inspector or the local housing assistance program staff. Each partial draw including the final draw of funds shall not be less than $5, and it shall be delivered upon completion of all repair work and a satisfactory final inspection by the corresponding jurisdictional Building Department and the county designated inspector that all required repair activities for the eligible housing unit are completed. No SHIP funds will be paid for any work completed prior to issuance of the county notice to proceed. Disaster repair loans may be leveraged with private funds, small city Community Development Block Grant (CDBG) funds, weatherization funds, HUD transitional housing funds, FEMA funds, or other state and federal programs as appropriate. h. Additional Information: i. Geographic Area Disaster repair loans may be made anywhere in the county, including all municipalities located within the county. ii. Housing Unit Classification Eligible housing units receiving disaster repair 10 year loans must be owneroccupied single-family, condominium residences. Mobile homes are not eligible. 27

31 F. Low Income Housing Tax Credit (LIHTC) Program Matching Grants (Code #21) a. Summary of the Strategy: To assist non-profit and for-profit organizations with matching funds needed to acquire either 9% (competitive) credit or 4% with bonds Low Income Housing Tax Credit funding. b. Fiscal Years Covered: FY , FY , FY c. Income Categories to be served: Very Low-Income Persons (not to exceed 50% of median income) Low-Income Persons (51 to 80% of the county s median income) Moderate-Income Persons (81 to 120% of median income) d. Maximum award: The maximum monetary award will be up to $100,000 for each LIHTC project or it is capped at a maximum of $5,000 per unit. e. Terms, Recapture, Default: The Low Income Housing Tax Credit Program matching grants are grant and county will sign agreements with developers for performance of the grant. The repayment of funds awarded as a LIHTC matching grant is not required, except in cases where the assisted housing has changed to a market rate prior to expiration of the affordability period. In that case, the entire original grant amount is due and payable. There will be no interest rate for LIHTC matching grants. Recaptured funds will be deposited in the county s affordable housing trust fund. f. Sponsor Selection Criteria: Non-profit organizations or for-profit developers eligible to participate in the local housing assistance program must submit a LIHTC application to the FHFC to qualify. Assistance will be provided to LIHTC projects which receive an award of funds from FHFC. g. Additional Information: i. Geographic Area 28

32 LIHTC matching grants may be made anywhere in the county, including all municipalities located within the county. ii. Housing Unit Classification Eligible housing units produced by the LIHTC funds must be renter occupied units. 29

33 LHAP INCENTIVE STRATEGIES Section (16), F.S. Since adoption of the county's Comprehensive Plan in 1990, the county has established several new housing programs and regulations to address various housing problems. In addition, the county has reviewed all of its ordinances and regulations to determine if any unnecessarily increase housing costs. Where appropriate, the regulations and ordinances were revised to encourage the provision of affordable housing within the county. The county's affordable housing incentive strategies affecting affordable housing are as follows: 1. Regulations providing up to a 20% density bonus for affordable housing development projects (housing element policy 2.5, Land Development Regulations Section (4)(a)). 2. Regulations allowing for small lot subdivisions with reduced setbacks, lot size, and lot width requirements for Workforce or Affordable Housing subdivision projects (Land Development Regulations, Chapter 911 and section (9)). 3. Regulations allowing for accessory single-family dwelling units in all agricultural and residential zoning districts (Land Development Regulations, Chapter 911 and Section (10)) 4. Regulations allowing multi-family dwelling units in conjunction with commercial development, such as apartments over commercial buildings (Land Development Regulations Section and Section (6)) 5. Policies for expedited permit processing (Housing Element policies 1.5 and 1.6) 6. Policy for review of proposed local policies or regulations, which may increase the cost of housing (Housing Element policy 1.7) 7. Inventory of all surplus county owned land (Housing Element policy 2.4) 8. Policy for financing impact fees or payment of impact fees (Housing Element policy 4.3 and policy 4.4) 9. Policy for expediting permits for housing projects utilizing new construction technology (green building, Energy Star Program) (Housing Element policy 1.8) 10. Policy for support of development near transportation hubs or major employment centers (Housing Element policy 1.9) 11. Policy for assistance to non-profit housing organizations to establish CLTs (Housing Element policy 4.10) 12. Policy for assistance to non-profit organizations to establish CDCs (Housing 30

34 Element policy 4.11) 13. Policy for assistance to employers for establishing employer assisted housing programs (Housing Element policy 4.12) 14. Policy for establishing a private/public housing trust fund (Housing Element policy 4.13) 15. Regulations allowing zero lot line subdivisions (Land Development Regulations Section ) 16. Establishment of a Local Housing Assistance Program, allowing the county to utilize State Housing Initiatives Partnership (SHIP) program funds for the provision of affordable housing (Local Housing Assistance program, Local Housing Assistance plan, Housing Element policies 2.7, 3.6, 4.4, 4.6, 4.7, 4.9, and 9.1) Following are citations from the county s Comprehensive Plan and Land Development Regulations (LDRs) for the above referenced affordable housing incentive strategies. In the case of amendments to the county s comprehensive plan policies or land development regulations that cause inconsistency between this section of the Local Housing Assistance Plan and the county s Comprehensive Plan or Land Development Regulations, the Comprehensive Plan and Land Development Regulations will control. A. Expedited Permitting Permits as defined in s (7) and (8) for affordable housing projects are expedited to a greater degree than other projects. a. Established policy and procedures: - Housing Element Policy 1.5 POLICY 1.5: By 2000, the county shall assess its existing permit processing procedure and, if warranted, establish a full one-stop permitting process. - Housing Element Policy 1.6 POLICY 1.6: The County shall take all necessary steps to eliminate delays in the review of affordable housing development projects. In order to define delay, the county hereby establishes the following maximum timeframes for approval of projects when an applicant provides needed information in a timely manner: - Administrative approval - 5 days; - Minor site plan - 5 weeks; - Major site plan - 6 weeks; - Special exception approval - 13 weeks Whenever these review times increase by 150% or more due to the work load of the review staff, 31

35 the county will begin prioritizing the review of affordable housing development project applications. In prioritizing affordable housing development project applications, staff will schedule affordable housing project applications for review before other types of project applications to ensure that maximum review timeframes are not exceeded for affordable housing projects. B. Density Bonus: a. Established policy and procedures - Housing Element Policy 2.5 POLICY 2.5: The County shall maintain its affordable housing density bonus provision for planned development projects, allowing eligible affordable housing projects to receive up to a 20% density bonus based on the following table. Very Low Income (VLI) and Low Income (LI) Affordable Units as Percentage of Project s Total Units Density Bonus (Percent increase in allowable units) Additional Density Bonus for Providing Additional Buffer and Landscaping based on one of the following options (percent increase in allowable units) Option I Material equal to a 20 wide Type C buffer* with 6' opaque feature along residential district boundaries and 4' opaque feature along roadways Option II Material equal to a 25 wide Type B buffer* with 6' opaque feature along residential district boundaries and 4' opaque feature along roadways Range of Possible Density Bonus Percentage (Percent increase in allowable units) More than 30% 10% 5% or 10% 10-20% * Buffer types are identified in Chapter 926 of the county s Land Development Regulations Section (4) of the LDRs, Density Bonus (a) Affordable housing. Residential developments may receive a density bonus not to exceed twenty (20) percent of the density permitted by the applicable zoning district. 1. For the purpose of this section, an affordable dwelling unit shall be a dwelling unit which: a. Has a market value less than two and half (2 ½) times the county s annual median household income for Indian River County as established by the Florida Housing 32

36 Finance Corporation; or b. Has a monthly rent that meet Indian River County rent restriction as established by the Florida Housing Finance Corporation. 2. Affordable dwelling units provided in compliance with this section, regardless of whether or not the affordable dwelling units are part of a planned development project, shall comply with the following requirements: a. The affordable dwelling unit shall remain available as an affordable dwelling unit for the following periods: i. Owner-occupied units shall remain affordable dwelling units for a period of not less than twenty (20) years commencing on the first day following the issuance of a certificate of occupancy, or equivalent final building inspection, for the unit. ii. Renter-occupied units shall remain affordable dwelling units for a period of not less than fifteen (15) years commencing on the first day following the issuance of a certificate of occupancy, or equivalent final building inspection, for the unit. b. Initial occupancy of an owner-occupied affordable dwelling unit shall be by a household classified as very low-income, low-income or moderate-income whereby the classification is verified by the Indian River County Community Development Department or an agency, either public or private, designated by the community development department or by any state or federal public agencies. c. Households occupying an affordable housing rental unit shall be classified as very low, low, or moderate-income households whereby the classification is verified by the Indian River County Community Development Department, or its designee or by any state or federal public agency, prior to the household s occupancy of the unit. While occupying the affordable housing rental unit, a household s annual adjusted gross income may increase to an amount not to exceed one hundred forty (140) percent of one hundred twenty (120) percent of the county s median household income adjusted for household size. d. With respect to owner-occupied affordable dwelling units provided under the provisions of the section: i. The owner-occupant s household annual adjusted gross median income may increase without limit following the household s purchase of the affordable dwelling unit; and ii. Resale of an affordable dwelling unit by the initial owner or any subsequent owner shall be subject to one of the following provisions: (a) If the purchasing household is not verified to be either a very low, or low income household, then the selling household shall be subject to 33

37 providing a cash payment of the original loan amount and applicable interest, to the Indian River County Local Housing Assistance Trust Fund. (b) If the purchasing household is verified to be either a very low, or low income household, then the selling household shall not be required to provide any payment. e. For projects utilizing the provision of on-site or off-site affordable dwelling units, no certificate for occupancy for a market rate priced dwelling unit shall be issued unless the ratio of market rate dwelling units certified for occupancy to affordable dwelling units certified for occupancy is equal to or greater than the overall project s approved ratio of market rate dwelling units to affordable dwelling units. f. Prior to the issuance of a certificate of occupancy for the affordable dwelling unit(s), a separate private deed covenant, entitled a "restriction on transfer", shall be filed in the public records of Indian River County. The covenant shall be subject to review and approval by county staff in order to verify compliance with the requirements of this section, and the covenant shall: i. Identify the subject unit as an affordable dwelling unit and specify that at no time may the identified unit be utilized as a model home, construction office or other non-residential occupancy use; and ii. Identify the units corresponding fifteen or twenty year affordability timeframe; and iii. Identify that the initial owner and each subsequent owner of an owneroccupied affordable dwelling unit must satisfy and comply with the resale provision of the county s local housing assistance plan; and iv. Identify the Board of County Commissioners of Indian River County or its community development department or as its designee, as the agency with enforcement and verification authority to enforce the terms of the covenant, and as the contact agency for closing agents to obtain estoppel letters; and v. Identify any additional terms or conditions relating to the provision of the affordable dwelling unit as established by the Board of County Commissioners via its review and approval of the corresponding planned development approval. vi. Specify that monitoring the occupancy of the affordable dwelling unit shall be included in the compliance monitoring activities of the county s local housing assistance program, or a suitable substitute determined by the Indian River County Board of County Commissioners. vii. Specify that no provision of the restrictive covenant may be amended 34

38 without the consent of the Board of County Commissioners of Indian River County. 3. An applicant may obtain a development density bonus for a planned development project in compliance with one of the following options: a. An applicant may obtain a density bonus by providing affordable dwelling units within the residential development project that will utilize the density bonus. For development projects utilizing the on-site affordable dwelling unit density bonus, the affordable housing density bonus shall be determined as indicated in the following table: Very Low Income (VLI) and Low Income (LI) Affordable Units as Percentage of Project s Total Units Density Bonus (Percent increase in allowable units) Additional Density Bonus for Providing Additional Buffer and Landscaping based on one of the following options (percent increase in allowable units) Option I Material equal to a 20 wide Type C buffer* with 6' opaque feature along residential district boundaries and 4' opaque feature along roadways Option II Material equal to a 25 wide Type B buffer* with 6' opaque feature along residential district boundaries and 4' opaque feature along roadways Range of Possible Density Bonus Percentage (Percent increase in allowable units) More than 30% 10% 5% or 10% 10-20% * Buffer types are identified in Chapter 926 of the county s Land Development Regulations b. An applicant may obtain a density bonus by providing affordable dwelling units offsite from the residential development project, which will utilize the density bonus. For development projects utilizing the off-site affordable dwelling unit density bonus, the affordable housing density bonus shall be determined as follows: The percentage of density bonus shall be one half (1/2) of the applicable density bonus as determined for on-site affordable housing projects as provided in the above table. 4. Approval procedure and other requirements. All planned developments shall be reviewed consistent with the requirements of Chapter 915, Planned Development. C. Small Lot Subdivision 35

39 - Section (9) of the LDRs (a) Districts requiring administrative permit approval, (pursuant to the provision of ): RS-6, RT-6, RM-6, RM-8, RM-10 (b) Criteria for small lot subdivisions: 1. The small lot subdivision shall be serviced by centralized water and wastewater. 2. The gross density of any small lot subdivision shall not exceed the maximum density allowed within the zoning district in which the subdivision is located. 3. Perimeter lots are those lots that abut or are adjacent to areas not included in the proposed small lot subdivision. Perimeter lots that abut property having a residential or agricultural zoning designation shall: a. Conform to the standard applicable size and dimension criteria of the respective zoning district in which the project is located; or b. Comply with the following size and dimension criteria: MMinimum lot width: Minimum lot size: 50 feet 5,000 square feet Minimum yard setbacks: Front: Side: Rear Lot width (feet): > 50 & <55 > 55 & <60 > 60 & <65 > 65 & <70 20 feet 7 feet; 5 feet on lots fronting a curve or cul-de-sac circle Minimum rear yard setbacks shall be provided, based upon lot width, as indicated in the table below: Rear Yard (Feet) Interior lots (those determined not to be perimeter lots) and those perimeter lots which abut a property having a commercial/industrial land use designation shall 36

40 comply with the following size and dimension criteria: Minimum lot width: Minimum lot size: 50 feet 5,000 square feet Minimum yard setbacks: Front: Side: Rear: 20 feet 7 feet; 5 feet on lots fronting a curve or cul-de-sac circle 15 feet 5. Accessory structures may encroach into required yards as allowed in section of the land development regulations. 6. In lieu of buffering requirements specified in Chapters 911 and 913, the following buffer requirements shall apply to small lot single-family subdivision projects: a. Buffers Adjacent to Collector and Arterial Roads. A 25 wide Type B buffer with 6 opaque feature shall be provided along all perimeters that are adjacent to collector and arterial roads. B. Buffers for Other Perimeters. A 10 wide Type C buffer with 3 opaque feature shall be provided along all perimeters that are not adjacent to collector and arterial roads. C. The buffer improvement(s) shall be located within a buffer easement(s) or tract(s) as designated on the small lot subdivision plat. Said easement(s) or tract(s) shall be depicted on the final plat and shall be dedicated to the subdivision s property owners association to ensure maintenance of the buffer easement improvement(s) shall be provided in accordance with the provisions of section of the land development regulations. D. No structure(s), other than those related to buffering, drainage or utilities shall be located in the buffer easement. 7. In lieu of the green/recreation space, swale, curbing, and sidewalk requirements of Chapters 911 and 913, the following requirements shall apply: A. A minimum 7.5% of the total project area shall be provided as green space/recreation space. Said area may consist of preserved wetlands and or native uplands, park space, pools, day-care space, clubhouses, ball-courts, 37

41 playgrounds, play-field areas, or similar uses approved by the community development director. Said area(s) shall be designed to be conveniently accessible and useable by all project residents. B. Sidewalks (minimum 4 width) shall be provided along both sides of all streets unless an alternative design is approved by the Community Development Director. C. The Urban Service Area boundary buffer and wall variation requirements of Chapter 913 shall apply to small lot single-family subdivisions. 8. Minimum building setbacks as specified in (9)(b)3. and 4. above, shall be depicted as a residential building envelope on the preliminary plat. Language shall be noted on the final plat to the effect that specially approved setbacks are in effect on the lots. 9. Workforce or Affordable Housing In exchange for lot size and setback reductions, small lot single-family subdivision projects shall meet the following workforce or affordable housing criteria: A. All dwelling unit sales and rent prices shall be restricted for a period of at least 10 years from the date of the unit s first sale (closing). 1. The initial sales price of a small lot subdivision housing unit shall not exceed 2 ½ x (2.5 times) the Indian River county annual median household income. Over the 10-year restriction period, the sales price may be increased 3% per year (compounded annually). 2. Where a small lot subdivision housing unit is rented, the monthly rental price shall not exceed the Indian River County maximum rent by unit type for moderate income as published by the Florida Housing Finance Corporation. B. As an option to and in lieu of criterion A above, an applicant may propose an alternative to the resale price and appreciation restriction. Any such alternative must ensure that small lot subdivision housing units remain affordable for at least 10 years. An alternative to the sales price restriction shall be structured as a deed restriction that shall apply to lots created by the small lot subdivision process. The draft restriction shall be submitted in conjunction with the small lot subdivision preliminary plat application and shall: Identify the proposed method of ensuring affordability which may include - Rent/price resale restriction - Buyer income qualification - Shared equity process - Other 38

42 Identify appeal/variance procedure or a prohibition of appeals/variances Identify a monitoring program which shall be administered by public agencies or private organizations qualified to provide or assist with workforce or affordable housing. The alternative shall be considered by the Planning and Zoning Commission and evaluated under the above criteria. The PZC is authorized to approve the alternative and attach conditions to ensure that the above criteria are satisfied. C. The maximum size of each dwelling unit shall be restricted in perpetuity to 1,500 sq. ft. under air. D. The restrictions required under items A or B, and C above shall be incorporated into deed restriction, running in favor of the county and any unit buyer or renter, approved by the County Attorney and filed in the public records by the project applicant. The sales price restriction shall require county consent of the sales price prior to each closing during the 10-year restriction period. Such consent is authorized to be made by the Community Development Director or his designee. D. Accessory single-family dwelling units - Section (10) of the LDRs (a) The construction of an accessory dwelling unit on a residentially zoned lot shall be allowed subject to the provisions of section (10). The standards and requirements of this section are intended to make available inexpensive dwelling units to meet the needs of older households, single member households, and single parent households. This is in recognition of the fact that housing costs continue to increase, that households continue to decline in size, and that the number of elderly Americans is on the rise. (b) Districts requiring administrative permit approval, (pursuant to the provisions of ): A-3, A-2, A-1, RFD, RS-1, RS-2, RS-3, RS-6, RT-6, RM-3, RM-4, RM-6, RM-8, RM-10, Con-2, Con-3, Rose-4 (c) (d) Requirements of section (10) shall not supersede property owner deed restrictions. Additional information required: A site plan conforming to Chapter 914 requirements Criteria for accessory dwelling units: 1. Accessory dwelling units shall be located only on lots, which satisfy the minimum lot size requirement of the applicable zoning district. 39

43 2. The accessory dwelling unit shall be clearly incidental to the principal dwelling and shall only be developed in conjunction with or after development of the principal dwelling unit. 3. Not more than one (1) accessory dwelling unit shall be established in conjunction with a principal dwelling unit. 4. No accessory dwelling unit shall be established in conjunction with a multifamily dwelling unit. 5. The heated/cooled gross floor area of the accessory dwelling unit shall not exceed thirty-three (33) percent of the principal structure or seven hundred fifty (750) gross square feet, whichever is less. The accessory dwelling unit shall be no smaller than three hundred (300) gross square feet of heated/cooled area. 6. No accessory dwelling unit shall have a doorway entrance visible from the same street as the principal dwelling unit. 7. Detached accessory dwelling units shall be located no farther than seventyfive (75) feet in distance from the principal dwelling unit from the closest point of the principal dwelling unit to the closest point of the accessory dwelling unit. 8. Excluding converted garage accessory dwelling units, the accessory dwelling unit shall be designed so that the exterior facade material is similar in appearance to the facade of the existing principal structure. 9. One (1) off-street parking space shall be provided for the accessory dwelling unit in addition to spaces required for the principal dwelling unit. 10. The accessory dwelling unit shall be serviced by centralized water and wastewater, or meet the environmental health department s well and septic tank and drain field requirements. Modification, expansion or installation of well and/or septic tank facilities to serve the accessory dwelling unit shall be designed in a manner that does not render any adjacent vacant properties "unbuildable" for development when well and/or septic tank facilities would be required to service development on those adjacent properties. 11. No accessory dwelling unit shall be sold separately from the principal dwelling unit. The accessory dwelling unit and the principal dwelling unit shall be located on a single lot or parcel or on a combination of lots or parcels unified under a recorded unity of title document. 12. An accessory dwelling unit shall be treated as a multi-family unit for traffic impact fee and traffic concurrency purposes, and the concurrency requirements of Chapter 910 for a multi-family unit shall be satisfied. 40

44 E. Multi-Family Dwelling Units in Conjunction with Commercial Development - Section of the LDRs COMMERCIAL DISTRICTS USE PRO OCR MED CN CL CG Multi-Family Residential P P A A A A P = Permitted use A = Administrative permit use PRO = Professional Office District OCR = Office, Commercial, Residential District MED = Medical District CN = Neighborhood Commercial District CL = Limited Commercial District CG = General Commercial District - Section (6) of the LDRs Multiple-family dwellings in commercial areas (administrative permit: no planning and zoning commission review or approval required if associated with a site plan reviewed as an administrative approval or minor site plan). (a) (b) (c) Districts requiring administrative permit approval, (pursuant to the provisions of ): MED, CN, CL, CG Additional information requirements: a site plan meeting the requirements of Chapter 914 which shows the location and specification of all landscape materials, and the location of all hospital emergency entrances or exits within five hundred (500) feet of the site. Criteria for multiple-family dwellings within a MED district: 1. All proposed developments shall be subject to the size and dimension criteria for multi-family dwellings within the RM-8 district; 2. No residential site shall be located within five hundred (500) feet of a hospital complex, emergency entrance or exit. (d) Criteria for multiple-family dwellings within a CN, CL or CG district: 1. All dwelling units shall be accessory to a permitted use within the applicable zoning district; 41

45 2. In cases where a single-family unit is being used in conjunction with a business, the total area of the residence may exceed the total area of the business. No dwelling unit shall have street frontage on the ground floor. F. Housing Cost Impact Review Process - Housing Element Policy 1.7 POLICY 1.7: As part of the adoption process for any county regulations which could affect housing development, county planning staff shall prepare a Financial Impact Statement to assess the anticipated impact of the proposed regulation on the cost of housing. When proposed regulatory activities are anticipated to increase the estimated cost per unit projection. The financial impact statement then will be reviewed by the Professional Services Advisory Committee, the Planning and Zoning Commission, and, if possible, the Affordable Housing Advisory Committee. Those groups shall consider the regulation s effect on housing cost in making their recommendation to the Board of County Commissioners. The Board of County Commissioners will consider the financial impact statement in making its final decision on the adoption of any proposed regulations. G. Surplus County Owned Land Inventory and Disposition - Housing Element Policy 2.4 POLICY 2.4: the county s general services department shall, pursuant to section F.S., maintain an inventory of all surplus county-owned land and foreclosed properties that are appropriate for affordable housing and dispose of those properties consistent with section F.S. requirements. H. Zero Lot Line Subdivisions - Section of the LDRs Planned development allowable waivers and development parameters. Waivers from the various conventional standards and criteria found in the Chapter 911, Zoning, may be granted by the Board of County Commissioners via the establishment of special project development parameters, as provided for herein. (1) Conceptual P.D. plans shall list, for all areas and phases within the P.D. project area, the proposed waivers and development parameters for the following: 1. Minimum lot size (in square feet); 2. Minimum lot width (in feet); 3. Minimum lot frontage (in feet); 4. Minimum yard setbacks for buildings: front, rear, side 5. Minimum yard setbacks for accessory structures (such as pools, patios, and decks); front, rear, and side; 6. Maximum lot coverage; building(s) and impervious surface area; 7. Minimum separation distances between buildings; 8. Minimum right-of-way widths (by road type); 42

46 9. Minimum open space per lot and by phase (Note: the minimum open space for the entire project shall meet or exceed the requirements of section ); 10. Minimum preservation/conservation area per lot; Note: additional conceptual plan submittal requirements are listed-out in section (2) Notwithstanding other provisions in this chapter (915) and Chapter 971, specific land use criteria listed in Chapter 971 may be waived (modified or not applied) where such criteria would merely apply to the compatibility of uses within the P.D. project area if approved by the county. Where specific land use criteria apply to the relationship of a use(s) within a P.D. project and properties adjacent to the project area, the specific land use criteria shall apply pursuant to the provisions of chapter 971. (3) The conventional standards and criteria found in Chapter 911, Zoning, not covered in section (1) shall apply unless otherwise specifically waived or modified by other provisions of this chapter. I. Establishing/Utilizing SHIP Program - Housing Element Policy 2.7 POLICY 2.7: The County shall provide for the creation and preservation of affordable housing for all current and anticipated future residents and households with special housing needs including rural residents and farm workers by allowing affordable housing in all residential areas, rehabilitating existing units with SHIP funds, utilizing CDBG funds for housing rehabilitation and neighborhood revitalization, and undertaking other measures to minimize the need for additional local services and avoid a concentration of affordable housing units in specific areas. - Housing Element Policy 3.5 POLICY 3.5: The County shall offer rehabilitation loan assistance through its local housing assistance program, cooperative ventures with non-profit groups, or Community Development Block Grant (CDBG) type programs to effect spot removal of blighted structures and blighting influences. - Housing Element Policy 4.4 POLICY 4.4: The County shall maintain its Housing Trust Fund, which provides below-market interest rate financing for land acquisition, purchase assistance cost loans, impact fee and utilities capacity charges payment loans, and rehabilitation loans for affordable housing units in the county. Some disbursements from the Housing Trust Fund will be 10 year loans where the loan amount and accumulated interest will be forgiven in 10 years, but the majority of funds will be provided as revolving loans, with borrowers paying back principal and applicable interest into the trust, therefore ensuring a permanent source of financing. - Housing Element Policy 4.5 POLICY 4.5: The County shall enter into inter-local agreements with any county municipality which because of unusually high property values or coastal high hazard area constraints cannot 43

47 meet is affordable housing needs within its jurisdiction, and desires to contribute to the Housing Trust Fund. The amount and method of payment will be established prior to execution. - Housing Element Policy 4.6 POLICY 4.6: The County shall maintain its affordable housing partnership with financial institutions for leveraging State Housing Initiatives Partnership Program (SHIP) funds. - Housing Element Policy 4.7 POLICY 4.7: The County shall encourage increased home ownership by providing purchase assistance cost loan assistance to eligible very low income, low income, and moderate income households through the county s local housing assistance program. - Housing Element Policy 4.9 POLICY 4.9: The County shall require all applicants for purchase assistance loan from the Indian River County Local Housing Assistance Program to attend a homebuyers educational program workshop as a prerequisite for getting a loan. The homebuyers educational program provides useful information to people wanting to buy their own home. Typical subjects presented are as follows: - Preparing for homeownership (including budgeting, saving, etc.) - Shopping for a home - Obtaining a mortgage (qualifying, processing, etc.) - Understanding mortgages and the closing process - Life as a homeowner (includes maintenance and responsibilities) - Credit and credit reports - Housing Element Policy 9.1 POLICY 9.1: The County shall maintain its local housing assistance programs. As part of this coordination process, the county will accept funds, land, in-kind services, or other types of payments for housing assistance purposes from local municipalities, which are unable to provide sites for low cost housing within their jurisdictions. j. Other important Housing Element Policies Policy 1.8: the county shall expedite permits for housing projects utilizing new construction technologies, including green building programs and Energy STAR Program. Policy 1.9: the county shall support housing developments near transportation hubs, major employment centers, and mixed use development by expediting the permit process for these types of housing projects. Policy 4.10: the county shall assist non-profit housing organizations in establishing Community Land Trusts(CLT) by providing technical support to those organizations. Policy 4.11: the county shall assist non-profit organization in establishing Community Development Corporations (CDC) by providing technical support to those organizations. 44

48 Policy 4.12: the county shall assist employers with establishing employer assisted housing projects by providing technical support to those employers. Policy 4.13: the county shall create a new private/public housing trust fund. Affordable Housing Incentive Strategies Evaluation The County s affordable housing incentive strategies are implemented through application of the county s Land Development Regulations and enforcement of the county s Comprehensive Plan policies. All of the County s affordable housing incentive strategies are being implemented as intended. As a result, these strategies are reducing the cost of housing in the county. 45

49 IV. EXHIBITS: A. Administrative Budget for each fiscal year covered in the Plan. Exhibit A. B. Timeline for Encumbrance and Expenditure: Chapter (6)(d) and (f) F.A.C. A separate timeline for each fiscal year covered in this plan is attached as Exhibit B. Program funds will be encumbered by June 30 one year following the end of the applicable state fiscal year. Program funds will be fully expended within 24 months of the end of the applicable State fiscal year. C. Housing Delivery Goals Chart (HDGC) For Each Fiscal Year Covered in the Plan: Chapter ), F.A.C. Completed HDGC for each fiscal year is attached as Exhibit C. D. Certification Page: Chapter (7), F.A.C. Signed Certification is attached as Exhibit D. E. Adoption Resolution: Section (2)(b)2, F.S. Original signed, dated, witnessed or attested adopting resolution is attached as Exhibit E. F. Program Information Sheet: Completed program information sheet is attached as Exhibit F. G. Ordinance: If changed from the original ordinance, a copy is attached as Exhibit G. H. Interlocal Agreement: A copy of the Interlocal Agreement if applicable is attached as Exhibit H. 46

50 EXHIBIT A Administrative Budget A maximum of ten percent (10) of the annual local distribution to the Indian River County Local Housing Assistance Trust Fund (IRCLHATF) may be expended to provide for the costs of administering and implementing the IRCLHAProgram. The Board of County Commissioners has made a finding by separate resolution that expenditures for administration and implementation of the IRCLHAProgram may exceed five percent (5%) of the IRCLHATF annual balance; however, at no time shall the funds expended for administration and implementation of the IRCLHAProgram exceed ten percent (10%) of the local distribution for that fiscal year. Besides the state annual allocation, the SHIP program trust fund receives other income from sources such as loans that are paid back and interest earned on the funds deposited into the affordable housing trust fund. These funds are referred to as program income. According to state rules, ten percent (10%) of the program funds may be used for administration expenditures. Expenditures of funds from the IRCLHATF shall be monitored on a regular basis for compliance with the expenditure limitation established by the Board of County Commissioners. Administration and implementation activities of the IRCLHAProgram, which may be funded with SHIP funds, shall be limited to those items associated with conducting the administration and implementation activities listed in this Plan. Examples of the items, which may be funded, include the following: a. Staff salaries and benefits to conduct the administration and implementation activities b. Purchase of office supplies and materials to produce materials and documents required for the program c. Travel expenditures related to conducting and operating the Program d. Expenses related to advertising the availability of funds d. Expenses for contract for professional services rendered for information or administration and implementation activities provided by third parties for the Program 47

51 Exhibit A Exhibit A Admin Budget (Based on a state distribution of $661,000) Fiscal Year Salaries and Benefits $51,100 Office Supplies and Equipment $3,000 Travel Perdiern Workshops, etc. $1,000 Advertising $1,000 Professional Services $10,000 Total $66,100 Fiscal Year Salaries and Benefits $51,100 Office Supplies and Equipment $3,000 Travel Perdiern Workshops, etc. $1,000 Advertising $1,000 Professional Services $10,000 Total $66,100 Fiscal Year Salaries and Benefits $51,100 Office Supplies and Equipment $3,000 Travel Perdiern Workshops, etc. $1,000 Advertising $1,000 Professional Services $10,000 Total $66,100 There will also be additional administrative income from SHIP program loan repayments and interest earned. 48

52 Exhibit B TIMETABLE FOR STATE FISCAL YEAR Exhibit B Name of Local Government: INDIAN RIVER COUNTY Program Year Activities Month Advertise Availability of Funds x Application Period(On-Going) x x x x x x x x x x x x x x x x x X X X X X X Start Program Year x Annual Report x x x Mid-Year Review/Adjustments x End-Year Review/Adjustments x x x Encumbrance Deadline x Expenditure Deadline x Final Program Review x Directions: 1) Advertise availability of funds and application period 2) Encumbrance of funds (12 months following end of State Fiscal Year) 3) Expenditure of funds (24 months following end of State Fiscal Year). 4) Submit Annual Report to FHFC (September 15th) 49

53 Exhibit C 50

54 51

55 52