(A) Implementation and administration. The Local Housing Assistance Plan (the "plan") shall be implemented by the Housing and Community Development Division of the city, which shall also be responsible for the plan's administration under the auspices of the Local Housing Partnership. By this reference the definitions enumerated and set forth in SHIP and any applicable provisions of the Florida Administrative Code are incorporated into and made an integral part of the plan and this subchapter.
(B) In implementing the Local Housing Assistance Program, the city shall:
(1) Advertise the availability of a housing assistance program in a newspaper of general circulation and periodicals serving ethnic and diverse neighborhoods at least thirty (30) days before the beginning of any application period.
(2) Adopt a maximum award schedule or system of awards to comply with the following criteria:
(a) A minimum of sixty-five percent (65%) of the funds shall be reserved for home ownership for eligible persons. The balance may be used for units with rental tenure.
(b) Seventy-five percent (75%) of the funds shall be reserved for construction, rehabilitation or emergency repair of eligible housing.
(c) A minimum of twenty percent (20%) of all moneys shall be used to serve persons with special needs as defined in Fla. Stat. § 420.0004. The first priority of these special needs funds must be to serve persons with developmental disabilities as defined in Fla. Stat. § 393.063, with an emphasis on home modifications, including technological enhancements and devices, which allow homeowners to remain independent in their own homes and maintain their homeownership.
(d) The total amount paid for any administrative expenses in connection with the local housing assistance program will not exceed ten percent (10%) of the proceeds of the City of Palm Bay housing distribution and not more than five percent (5%) of any program income received from investment of the housing distribution.
(e) The sales price of new or existing eligible housing shall not exceed ninety percent (90%) of the median area purchase price in the area where the eligible housing is located as established by the United States Department of Treasury in accordance with section 3(b)2 of the United States Housing Act of 1937.
(f) All units constructed, rehabilitated or otherwise assisted with program funds shall be occupied by very-low-income, low-income or moderate-income persons and persons who have special housing needs. At least thirty percent (30%) of units must be occupied by very-low-income persons and at least another thirty percent (30%) by low-income persons. The remaining forty percent (40%) shall be occupied by persons who have special housing needs, very-low-income, low-income or moderate-income persons.
(g)
The amount of monthly mortgage payments or the amount of monthly rents charged by the eligible sponsor or its designee must be affordable to eligible persons, as defined in accordance with Fla. Stat. § 420.9071(3).
(h) Loans shall be provided for periods not exceeding thirty (30) years.
(i) Eligible owner-occupied housing constructed, rehabilitated or otherwise assisted from proceeds provided from the Local Housing Assistance Program shall be subject to subsidy recapture provisions which are identical to those specified in the local housing assistance program.
(j) The cost per unit and the maximum cost per unit for eligible housing benefiting from awards made pursuant to the Local Housing Assistance Program shall be established by resolution of the City Council.
(k) A qualification system for applicants, for awards consistent with the intent of the Local Housing Assistance Program and SHIP shall be established by the city, the Local Housing Partnership, and the Local Affordable Housing Advisory Committee.
(3) Prior to receiving an award, all eligible persons or eligible sponsors shall enter into an agreement to comply with the affordable housing criteria provided in SHIP and this subchapter. All eligible persons or eligible sponsors shall include in the deed transferring ownership of the property to the eligible person or eligible sponsor a covenant agreeing to comply with the terms of the above-described laws, which covenant will run with the land; or in the alternative, the agreement shall be made a part of the mortgage agreement. Failure to comply with the covenant in the mortgage shall result in a default of the mortgage with all remedies and rights for enforcement of the agreement available to mortgagees.
(4) Eligible sponsors receiving assistance from both the SHIP Program and the Low-Income Housing Tax Credit (LIHTC) Program shall be required to comply with the income, affordability and other LIHTC requirements. Similarly, any eligible household receiving assistance from SHIP and other federal programs shall be required to comply with any requirements specified by the federal program in addition to SHIP requirements.
(Ord. 2018-61, passed 12-6-18)