Title
Florida Housing Finance Corporation Workforce Housing Innovation Pilot Program (NB)
This item proposes to authorize the City Manager to apply for a grant from the Florida Housing Finance Corporation's Workforce Housing Innovation Pilot Program (CWHIP) for the Kennedy Homes site.
Explanation
The CWHIP is a new pilot program administered by the Florida Housing Finance Corporation (Florida Housing) that proposes to award up to $50 million as grants/loans to cities/counties on a competitive basis to develop affordable rental or owner occupied housing for essential services and other workforce personnel. The maximum request for CWHIP funding may not exceed $5,000,000.
Florida Housing intends to fund projects in as many different counties as possible, at an amount up to $5,000,000 for each project consistent with the goals set for each category, in the following order: 1) high cost counties; 2) high growth counties; and 3) innovative projects. Each county has been ranked according to growth and housing cost, so the City's competitive situation on this application may not be strong, but staff considers it worth pursuing. Alachua County has been ranked in the middle of the bottom tier for both growth and cost. The City has a history of being innovative with projects such as Cedar Grove II, and thus hopes, despite the ranking on growth and costs, to compete for the funds.
The maximum income limit for the CWHIP Program is 140% of median family income adjusted for family size, which currently is $76,300 for a family of four in the Gainesville Metropolitan Statistical Area. However, if the City combines SHIP, CDBG or HOME funds to match the CWHIP funds, the income limits will be 80% to 120% of median family income adjusted for family size for any units assisted also with those funds.
The innovation strategy categories are land use, local and other. The threshold items that every application must have to be considered complete are: public/private partnerships; 15% contribution from the public/private partnership; houses remaining affordable for a minimum of 20 years; site control; infrastructure availability; demand and need; and a set-aside of at least 50% for workforce housing and 30% for essential services personnel. To get maximum points, at least 80%, must be set aside for workforce housing and 50% for essential services personnel. However, because the City wants much of the development on Kennedy Homes to be market rate, staff plans to submit this application with just 50% of units planned for workforce housing, despite the fewer points that would result.
The application deadline is December 15, 2006.
Fiscal Impact
General fund, Bond, SHIP, HOME and CDBG funds are available to cover any match requirements.
Recommendation
The City Commission authorize the City Manager to: 1) prepare and submit the application for the Kennedy Homes site to the Florida Housing Finance Corporation for their Workforce Housing Innovation Pilot Program (CWHIP); 2) establish and commit to the required local public/private partnerships; 3) commit the required local match of funds from General Fund, Bond, SHIP, HOME or CDBG; 4) execute the required notices and certifications; and 5) structure the $5,000,000 application so that (a) the grants awarded to the homebuyers require that the unit remain affordable in perpetuity, (b) it commits to a single family detached or attached development that maintains 50% of the units as workforce housing and 30% of the units for essential services personnel, and (c) the funds would be used to install infrastructure and second mortgage assistance to eligible homebuyers. (After December 16, 2006, a copy of the CWHIP application will be on file in the Community Development Department.)
Alternative Recommendation A: The City Commission could choose to not apply for the CWHIP funds and pursue other funding programs as they may become available in the future.
Alternative Recommendation B: The City Commission could choose to review the grant application prior to taking action on this request.