The State Housing Initiatives Partnership (SHIP) Program, 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 participating jurisdictions on a formula basis. SHIP program funds serve to increase access to affordable housing for income-eligible participants.

Entitlement communities, such as the City of Miami Beach, that receive SHIP funds must produce and file a Local Housing Assistance Plan (LHAP), which governs each community’s use of SHIP funds. On June 22, 2022, the Mayor and City Commission approved the FY 22-25 LHAP via Resolution No. 2022-32187. On May 24, 2023, the FHFC notified the City of the FY 23/24 SHIP funding allocation of $612,688.

The SHIP Program is governed by 420.9075, Florida Statutes. Several program set asides must be met with each funding allocation:

• 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% AMI); 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 FHFC’s main legislative priority is to ensure that all funds collected in the state’s Sadowski Housing Trust Fund are utilized for affordable housing purposes. Local governments receiving SHIP funds have three (3) years to expend funds. The expenditure deadline for funds allocated to the rehabilitation of rental housing is June 30, 2026, and rental projects have a maximum cost of $40,000 per unit.

Providing affordable housing is crucial for many individuals and families who struggle to make ends meet, and the Administration is constantly working with community partners to evaluate the feasibility of projects, by releasing requests for Applications (RFA) once funding becomes available. On June 28, 2023, the Mayor and City Commission approved the Administration’s FY 23/24 SHIP allocations recommendations, which included: $398,247.20 for homeowner programs; $153,172 for multifamily rehabilitation projects; and $61,268.80 for administration costs.

On July 3, 2023, the Administration released a RFA for the rental housing (multifamily rehabilitation) set-aside of $153,172. The Housing Authority of the City of Miami Beach (HACMB) was the sole responder. As one of the state’s only public housing authority developers and operators of housing for the elderly, disabled, veterans, and low-income families, the HACMB has a proven track record in managing affordable housing and providing social services. Additionally, the HACMB Administration has extensive experience in supervisory, on-site management, and experience with construction and development, including through partnerships.

The HACMB currently owns and operates nine (9) affordable housing complexes including the Lois Apartments located at 211 Collins Avenue. Four (4) additional new construction projects are in permitting, with construction expected to commence in late 2023.

In the past five (5) years, the City has utilized available federal funding for the HACMB projects listed below.

These funds are invaluable in ensuring that low and moderate-income families can continue to call Miami Beach home.

The Lois Apartments was built in the heart of South Beach in 1925.The building provides sixteen (16) units, including twelve (12) one-bedroom units and four (4) two-bedroom units of affordable housing for families in Miami Beach. Like many older structures, the Lois Apartments require maintenance and rehabilitation to serve their purpose effectively.

The Administration recommends allocating $153,172 from FY 23/24 State Housing Initiative Partnership (SHIP) Program funds to rehabilitate the Lois Apartments, with a minimum of four (4) units designated under affordability for up to fifteen (15) years and the rents assigned to the units would have to be compliant with the SHIP limits.

The tenant population at the Lois Apartments are Section 8 participants and are classified at or below 50% AMI, which would ensure compliance with the SHIP rent amounts. The HACMB manages the property and ensures compliance with Section 8 Housing Choice Voucher regulations, housing property standards, and rent amounts for the tenant population.

The designated SHIP funds will be primarily used for exterior concrete repairs at the Lois Apartments, including waterproofing. Exterior concrete repairs are crucial for maintaining the structural integrity of the building. Ensuring that the foundation and outer walls are in good condition is essential for the long-term safety and habitability of the apartments. The proposed allocation will ensure that the Lois Apartments does not fall into disrepair or deferred maintenance. Repairing the exterior also contributes to the overall aesthetics of the building and the neighborhood. Well-maintained properties enhance the visual appeal of the community and the overall well-being of residents.

By investing in rehabilitating this affordable housing property, the City is preserving much-needed affordable housing units, preventing displacement, and stabilizing communities. The repairs to the exterior of the building will result in improved living conditions for the tenants. . A thriving community depends on safe, affordable housing access. This allocation benefits current tenants and contributes to the development and sustainability of South Beach, and Miami Beach at large.

The Mayor and City Commission identified the need for workforce and affordable housing as a key objective in the City’s 2019 Strategic Plan Through the Lens of Resilience. The City’s 2040 Comprehensive Plan prioritizes affordable housing, with the express goal “to encourage redevelopment that provides workforce and affordable housing” within the City. 

The Administration recommends approval of the FY 23/24 SHIP $153,172.00 funding allocation to the Housing Authority of the City of Miami Beach for the rehabilitation of the Lois Apartments.