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City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
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| | | | | | | | | | Item 10.
COMMITTEE MEMORANDUM | | | |
| | | | | | | | TO: Land Use and Sustainability Committee
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| FROM: Alina T. Hudak, City Manager
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| DATE: June 20, 2023
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| | | | | | | | | TITLE: | DISCUSS THE LIVE LOCAL ACT |
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| | | | | | | | HISTORY:
| | On April 28, 2023, at the request of Commissioner Ricky Arriola, the City Commission referred the subject discussion (C4 E) to the Land Use and Sustainability Committee (LUSC). On May 10, 2023, the LUSC discussed the item primarily from a land development and zoning perspective and continued the item to the June 20, 2023 meeting for an update on new grant funding opportunities available through the Live Local Act. |
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| | | | | | | | ANALYSIS:
| Based upon information available to date, it appears that most of the financial incentives under the Live Local Act are for developers and property owners. The following is a summary of the grants and financial incentives available, to date, as provided by the State webpage (https://www.flgov.com/wp-content/uploads/2023/03/Live-Local-Act.pdf):
• $711 million for housing projects through the Florida Housing and Finance Corporation (FHFC), the largest investment in housing ever in Florida history. This investment is nearly double the 2022-2023 investment.
• $259 million for the State Apartment Incentive (SAIL) Program for low interest loans to developers.
o $150 million of these funds is recurring for certain specified uses, such as projects near military installations.
• $252 million for the State Housing Initiatives Partnership (SHIP) Program for incentives for local governments to create partnerships to preserve and produce housing.
• $100 million for the second year of the Hometown Heroes Program to provide down payment and closing cost assistance to hometown heroes wanting to purchase their first home.
• Codifies the Hometown Heroes down payment assistance program and increases the borrowing limit per loan to $35,000
• $100 million for FHFC to implement a loan program to alleviate inflation-related cost increases for FHFC-approved housing projects.
• Creation of a new tax donation program to allow corporations to direct certain tax payments to help fund housing programs and increases tax credits available through the Community Contribution Tax Credit Program from 14.5 million to 25 million.
• A provision for up to a $5,000 refund for sales tax on building materials for housing units funded through FHFC and broadens FHFC’s ability to invest in housing for children in foster care or who are aging out.
• Expanding the eligibility for the Job Growth Grant Fund to authorize public infrastructure projects that support housing.
As the Live Local Act was only recently signed into law, there is no additional information available online yet. City staff will continue to monitor grant and funding opportunities and will also continue to check the availability of Notice of Funding Opportunities (NOFO) for housing-related grants and funding.
On May 24, 2023, the FHFC notified the City of its estimated SHIP 2023-2024 funding allocation of $612,688, which will be available in July 2023. All SHIP funds must comply with the following statutory set-asides:
• At least 65 percent of the funds must be reserved for homeownership for eligible persons.
• At least 75 percent of the funds 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 percent area median income (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 percent 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 percent of allocation can be reserved for rental development or rental assistance.
Additionally, the City’s 2022-2025 Local Housing Assistance Plan determines the housing activities that can be funded with all funding allocations. In the past five (5) years, the Administration has recommended funding allocations for down payment assistance with rehabilitation costs for first time homebuyers, homeowner rehabilitation assistance and rehabilitation of multi-family housing rental projects. The Administration plans to provide funding allocation recommendations to the Mayor and City Commission at the June 28, 2023 City Commission meeting based on the existing statutory set-asides and program requirements.
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| | | | | | | | CONCLUSION:
| | The Administration recommends that the Land Use and Sustainability Committee discuss and conclude the item with no further action. |
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| | | | | | | | | Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? | | Does this item utilize G.O. Bond Funds? | | | No | | Yes | |
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