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 emp...
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