HOME Funds

There are no changes to the HOME funding allocation previously approved in Resolution No. 2021-31772.

SHIP Funds

On July 28, 2021, the Mayor and City Commission approved Resolution No. 2021-31772, authorizing the allocation of FY 21/22 SHIP funds in the following manner: allocate $200,000 in FY 21 State Housing Initiatives Partnership (SHIP) funds to the Neptune Apartments Rehabilitation Project, $154,927 to the First Time Homebuyer Program and Homeowner Rehabilitation Program; and $39,436 towards administrative costs.

Staff reviewed program regulations in preparation of executing the program agreement and found that the funding allocations would be out of compliance with SHIP Statute 420.9075 (5). The regulation states that: at least 65 percent of the funds made available in each county and eligible municipality must be reserved for home ownership for eligible persons; up to 25 percent of the funds may be reserved for rental housing for eligible persons, such as multi-family rehabilitation projects; and 10% for administrative costs.

The SHIP Program is governed by the SHIP rule outlined in Florida Statute 420.9075. There are several program set-asides that must be met with each funding allocation:

• At least 65 percent of the funds made available in each county and eligible municipality from the local housing distribution must be reserved for home ownership for eligible persons.

• At least 75 percent of the funds made available in each county and eligible municipality from the local housing distribution must be reserved for construction, rehabilitation, or emergency repair of affordable, eligible housing.

• At least 30 percent of the funds deposited into the local housing assistance trust fund must be reserved for awards to very-low-income persons (up to 50% AMI); and at least an additional 30 percent of the funds deposited into the local housing assistance trust fund must be reserved for awards to low-income persons (up to 80% AMI).

• A minimum of 20 percent of the SHIP allocation must be used to serve persons with special needs as defined in 420.0004 Florida Statutes.

• Up to 25% of allocation can be reserved for rental development or rental assistance.

   

The current funding allocation to the Neptune Apartments exceeds the 25 percent required for rental housing. As a result, the funding allocation would have to be reduced to $98,590. The balance of the funds required for the rehabilitation project in the amount of $101,410 would be allocated from the Neptune Apartments’ Replacement Reserves account, which is funded by residential rents collected.  

 Neptune Apartments

The City applied for and received a grant from the Federal Emergency Management Agency (FEMA) for $140,596,04 for the rehabilitation of the Neptune Apartments. However, a $200,000 funding gap remains for Phase 2 that cannot be met with federal funds.

The Administration proposed the FY 21/22 SHIP funding allocation of $200,000 for the project that was approved in Resolution No. 2021-31772, but subsequently confirmed that it would exceed the statutory set-aside for rental housing defined in SHIP statute 420.9075 (5): “Up to 25 percent of the funds made available in each county and eligible municipality from the local housing distribution may be reserved for rental housing for eligible persons.”

 As such, the new proposed allocation would be the following:

The FEMA and SHIP funding allocations outlined are contingent upon funding availability and disbursement. The City will utilize Residential Replacement Reserves to fund the project until FEMA funds are available, as the City must meet the CDBG expenditure deadline of July 27, 2022. Replacement reserves will also be utilized to fund the balance from the previously allocated SHIP funds of $101,410. Once funds are identified, the Invitation to Bid is estimated to be released by the Procurement Department within 30 days.

Homeowner Assistance

To meet the SHIP homeowner set-aside requirements, the new proposed allocation of FY 21/22 SHIP funds is the following:

Currently, there are 42 persons on the City’s waitlist for homebuyer assistance, including five (5) City employees. Staff must ensure the following program requirements must be met when awarding SHIP funds to waitlist applicants:1) at least 30 percent of funds must be reserved for very-low-income persons earning up to 50% AMI, and 2) at least an additional 30 percent of funds must be reserved for low-income persons earning up to 30% AMI. FY 21/22 SHIP funds must be expended by June 30, 2024.

The Administration will ensure available funds are maximized to assist as many eligible households as possible on the waitlist. HOME and SHIP funds can be combined to assist a household, when needed. In addition, staff will update the Mayor and Commission on any award exceeding $50,000 prior to the disbursement of funds.

180-0530-000346-23-404-534-00-00-00-53419

$220,000

152-0530-000349-00-404-534-00-00-00-57210

$394,363

The Administration recommends to modify Resolution No. 2021-31772 as the following: 1) recapture of $220,000 FY 20 HOME Investment Partnership (HOME) Program funds previously allocated to Tenant-Based Rental Assistance and reallocation to the Homeownership Assistance Program;  2) to allocate the FY 21 State Housing Initiative Partnership (SHIP) Program Funds in the amount of $394,363: (i) to the Neptune Apartments rehabilitation project in the amount of $200,000 $98,590; (ii) to the Homebuyer and Homeowner Rehabilitation Programs in the amounts of $154,927 $256,337; (iii) and administrative costs in the amount of $39,436; and  (3) submit the revised FY 20 Action Plan to HUD and further authorize the City Manager and City Clerk to execute City Interdepartmental Agreements and other agreements to be signed by Sub-recipients.