Title
Amended Local Housing Assistance Plan-SFY 2005-2006/2006-2007/2007-2008 (B)
Amendment to the Local Housing Assistance Plan to increase the: 1) maximum SHIP Down payment Assistance Program award and HOME Down Payment Assistance Program award from $3,500 to $5,000; 2) maximum income limit for SHIP eligible applicants from 80% of median family income adjusted for family size to 120% of median family income adjusted for family size; and 3) sales price or value of an existing or new dwelling unit that can receive SHIP assistance from $125,000 to $200,000, as allowable by the SHIP Program. The maximum sales price or value limit will also apply to applicants receiving assistance from the CDBG or HOME Programs.
Explanation
As housing prices continue to rise much faster than incomes, the housing affordability issue persists throughout the state of Florida. Since its inception, the Down Payment Assistance Program has been one of the City's major housing assistance programs for income-eligible first-time homebuyers. Although the maximum amount of assistance and sales price limit have remained fairly constant for years, until recently, the number of households assisted by the Down Payment Assistance Program has remained very solid. Recently, the Down Payment Assistance Program experienced a sharp decline in the number of households assisted. Since October 2005, only a few households have requested and received down payment assistance; however, the demand for homebuyer training and pre-application submittals have remained constant. Staff continues to process approximately 30 pre-applications per month to attend the Homebuyer Education and Training workshop. This presents a serious concern which must be addressed as staff examines strategies to increase the program's effectiveness.
As a result, these amendments to the LHAP are being requested due to the substantially increased cost of purchasing a new or existing single family home. If approved, these...
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