The State Housing Initiatives Partnership Program (SHIP), administered through the Florida Housing Finance Corporation (FHFC), was established in 1992 by the William E. Sadowski Affordable Housing Act to stimulate the production of affordable housing statewide. SHIP Program funds are derived from documentary stamp levies on real estate transactions and held in the SHIP Program Trust Fund.  Annually, FHFC allocates SHIP program funds among entitlement communities on a formula basis.  SHIP program funds serve to increase access to affordable housing for income-eligible participants.   

The purpose of the LHAP is to describe the City’s strategies to meet the housing needs of the very low, low- and moderate-income households for the next three years- 2022-2023, 2023-2024 and 2024-2025. Before any SHIP funds can be expended, the entitlement community must have an approved Local Housing Assistance Plan (LHAP).

The Plan is intended to increase the availability of affordable residential units by combining local resources and cost-saving measures into a local housing partnership using public and private funds to reduce the cost of housing. SHIP funds are leveraged with or used to supplement other funding sources such as HOME Investment Partnership (HOME) and State Housing Initiatives Partnership (SHIP) Programs to assist income-eligible households obtain access to affordable housing.

Furthermore, the Plan should include policies, regulations, ordinances or resolutions adopted by the City in conjunction with the Affordable Housing Advisory Committee (AHAC), to encourage or facilitate affordable housing. A summary of the incentive strategies passed between 2018-2021 can be found in the AHAC Triennial Review, which was approved by the Mayor and City Commission via Resolution No. 2021-31964 on December 8, 2021.

The final LHAP approval must be submitted to the FHFC by May 2, 2022.

The Plan describes the housing goals that will be achieved per funding year with an estimated allocation amount. Additionally, the activities funded must meet the program requirements described below:

·         At least 75% of the overall funds must be used for construction, rehabilitation or emergency repairs of affordable, eligible housing;

·         At least 65% of the overall funds must be used for homeownership activities (homebuyer activities or owner-occupied rehabilitation projects);

·         At least 30% of the overall funds must be reserved for activities that benefit low-income households;

·         At least 30% of the overall funds must be reserved for activities that benefit very-low income households; and

·         At least 20% of overall funds must be utilized to assist households with a disabled member.

·         Up to 10% of funds can be allocated towards administrative costs.

The City plans to allocate the following during the Fiscal Years using the last allocation amount for FY 21/22 as an example:

Staff continues 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. Additionally, HCS is working with local housing counseling agencies to financially empower prospective homebuyers in their path to mortgage readiness.

The Administration is proposing to continue utilizing strategies for the broadest range of income-eligible households. The Administration is proposing the adoption of the following strategies in the LHAP:

A.    Purchase Assistance with Rehab

B.    Owner-Occupied Rehabilitation

C.   Foreclosure Prevention

D.   New Construction

E.    Rental Development

F.    Disaster Repair

The City is drafting a proposed Plan for review by the AHAC and the Plan will be available for public comment on the City’s website. The Affordable Housing Advisory Committee reviewed and discussed the Plan on March 15, 2022.

The Administration recommends approval and adoption of the City of Miami Beach Local Housing Assistance Plan (LHAP) for the State Housing Initiatives Partnership (SHIP) Program for FY 22/23, 23/24 and 24/25, as required by the SHIP Program Act, subsections 420.907 - 420.9079 Florida Statutes; authorizing execution of any necessary certifications by the City Manager and the City Clerk; and further authorizing the Administration to submit the LHAP to the Florida Housing Finance Corporation (FHFC) for its review and approval.