Title
Amended Local Housing Assistance Plan (LHAP)-SFY 2005-06/2006-07/2007-08 (B)
Amendment to the Local Housing Assistance Plan to increase the: 1) maximum SHIP House Replacement Program award to $100,000; 2) add language to the LHAP providing a definition for Essential Service Personnel; and 3) add a new program strategy for New Construction-Essential Services Personnel/Workforce Housing.
Explanation
The House Replacement Program (HRP) addresses owner-occupied units that are infeasible to rehabilitate due to major health and safety violations, when there are exorbitant cost of repairs required to make these dwellings meet the minimum housing code. Funding for this program is reserved for homeowners who are already on the City's rehabilitation waiting list. The HRP program assists a homeowner with demolishing the existing dilapidated home and rebuilding a new home on the same site. As construction prices continue to rise, the cost to build affordable housing continues to increase. As a result, the City can no longer build new replacement housing at the existing program limit. The Housing Division proposes to increase the maximum award from $70,000 to $100,000, with a maximum project cost not to exceed $125,000. If a project costs more than $100,000, then the homeowner will be required to obtain a loan for the difference. The HRP funding will be awarded in the form of a 30-year due-on-sale-loan. The funds will be repaid upon the sale of the property or maturity of the due-on-sale loan. The maximum award limit will also apply to applicants receiving assistance from the CDBG and HOME Programs, including a leveraged combination of these funding sources.
During the 2006 legislative session, the legislature made changes to the rules governing the SHIP program. The revised statute requires that each county and eligible municipality include a definition for Essential Service Personnel (ESP), and develop a program strategy within its LHAP that emphasizes the recruitment and retention of ESP. Pursuant to Florida Statutes, ESPs are defined as persons in need of affordable housing who are employed in occupations or professions in which they are considered essential service personnel, as defined by each county and eligible municipality within its respective LHAP. Such definition may include, but is not limited to: teachers and educators; school district, community college and university employees; police; emergency services and fire personnel; code enforcement personnel; health care personnel; skilled building trades personnel; and other job categories as required by Florida Statutes. This amendment is also needed for the City to make application for CWHIP funds.
The new program strategy for New Construction-Essential Services Personnel/Workforce Housing will have a maximum: 1) award of $35,000, 2) income limit for eligible applicants of 120% of median family income adjusted for family size; and 3) unit value limit as determined by the State of Florida for the SHIP and CWHIP Program. The value limit for all other program strategies will remain unchanged.
If approved, these amendments will assist in providing more affordable homeownership opportunities for very low, low and moderate-income homeowners and first-time homebuyers.
Fiscal Note
Funds for the House Replacement and New Construction-Essential Services Personnel/Workforce Housing Programs are available in the Housing Division's SHIP, HOME and CDBG Program budgets.
Recommendation
The City Commission: 1) approve the maximum award for the House Replacement Program at $100,000 with a maximum project cost of $125,000; 2) include the definition for Essential Service Personnel in the LHAP; 3) approve the program strategy designated as New Construction-Essential Services Personnel/Workforce Housing; 4) approve resolution number 060759 amending the City of Gainesville Local Housing Assistance Plan for State Fiscal Years 2005-2006/2006-2007/2007-2008; 5) authorize the City Manager or his designee to execute the required documents and certifications; and 6) authorize submission of the amended plan for review and approval by the Florida Housing Finance Corporation.
Alternative Recommendation A:
The City Commission not approve the resolution to amend the House Replacement Program. This would result in keeping the current House Replacement Program limit at $70,000.
Alternative Recommendation B: The City Commission approve an amended LHAP to include any combination of the program changes noted above.