An opportunity to add to the City’s affordable housing stock has materialized as a result of the City’s resolution of past compliance issues with the U.S. Department of Housing and Urban Development (HUD). On July 2, 2018, City Commission approved Resolution No. 2018-30374, approving, in part, the Third Amendment to the General Fund budget for FY 17/18. The amendment appropriated $1,079,000 from the General Fund to be used for the repayment to U.S. Department of Housing and Urban Development (HUD) to comply with the completed Office of the Inspector General Audit, as recommended by Letter to Commission (580-2017) on December 5, 2017.
In its letter to the City of August 6, 2018, HUD’s Community Planning and Development Division (CPD) provided wiring instructions for the repayment of the federal funds. The instructions further explained that these funds would return to the City’s Line of Credit Control System (LOCCS) and be available for expenditure by the City in compliance with expenditure rules and deadlines prescribed by the Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) programs. HUD requires its entitlement jurisdictions to ensure that funded activities are carried out in the defined project scope and within the timeframe allowed by each program. On October 17, 2018, pursuant to Resolution No. 2018-30551, the Mayor and Commission approved the purchase of a multi-family residential building for affordable housing in an amount not to exceed $1,079,000.
SHIP’s specific expenditure guidelines pose challenges in communities like ours with high property values and limited stock. The City has expended $208,247.78 in Purchase Assistance with Rehab and $38,823.68 in the Owner-Occupied Rehabilitation categories. Staff is working with local area mortgage companies, and lenders to leverage resources and serve these households seeking homeownership. The Office of Housing and Community Services (HCS) has collaborated with the Office of Communications to promote the existing programs to prospective homeowners, including City employees, educators and the public-at-large. HCS has also distributed information for the owner-occupied rehabilitation program to all homeowners receiving homestead exemptions throughout the City.
HCS expended $13,027 in homeownership counseling funds in August 2018 and provided five (5) workshops for potential homeowners. These efforts were also promoted via social media and press release.
The Administration is also proposing the addition of a new strategy to the current LHAP of FY 16/17-18/19 that will provide the City with the ability to acquire and rehabilitate a multi-family housing property to increase the City’s affordable housing portfolio.
A. Owner-Occupied Rehabilitation
B. Disaster Repair
C. New Construction
D. Purchase Assistance with Rehab
E. Demolition/ Reconstruction
F. Emergency Repair
G. Foreclosure Prevention
H. Acquisition/ Rehabilitation
I. Land Acquisition
J. Rental Development
The LHAP will also incorporate the newly-adopted incentive strategies adopted by the City Commission, pursuant to Ordinance No. 2017-4148, to encourage private developers for affordable housing unit size and Parking Requirement. The Ordinance further facilitates new construction or rehabilitated housing units for low and/or moderate-income housing for elderly and non-elderly persons by reducing the parking requirements.
The Plan must be submitted for initial review to the FHFC by March 1, 2019. Any amendments to incorporate strategies must be adopted by March 31, 2019. The final LHAP approval must be submitted to the FHFC by May 2, 2019.
The City is drafting a proposed Plan for review by the Affordable Housing Advisory Committee (AHAC) and the Plan will be available for public comment on the City’s website.