§ 17.5-23. Designation of responsibility for administration and implementation.

(a)

The POD should implement, manage and monitor the program and should:

(1)

Work with the local housing partnership to monitor the success of the program, and provide advice and suggestions as to whether and in what ways the program might be improved from year to year.

(2)

Work with the local housing partnership to coordinate local programs so as to maximize the production of eligible housing through the program.

(b)

The total amount paid for any administrative expenses in connection with the program will not exceed ten percent of the proceeds of the local housing distribution.

(c)

In implementing the program, the local housing partnership and the POD should:

(1)

Advertise the availability of a housing assistance program in a newspaper of general circulation in the City and periodicals serving ethnic and diverse neighborhoods, at least 30 days before the beginning of any application period.

(2)

Prepare a resolution for City Council approval which provides for a local housing assistance plan (LHAP) which includes a maximum award schedule or system of awards to comply with the following criteria:

a.

65 percent of the SHIP funds shall be reserved for homeownership for eligible persons.

b.

75 percent of SHIP funds shall be reserved for construction, rehabilitation, or emergency repair of eligible housing.

c.

The sales price of new or existing eligible housing constructed, rehabilitated or otherwise assisted using any SHIP funds shall not exceed 90 percent of the median area purchase price in the area where the eligible housing is located as established by the United State Department of Treasury in accordance with section 3(b)2 of the United States Housing Act of 1937.

d.

All units constructed, rehabilitated, or otherwise assisted with SHIP funds shall be occupied by very low-income, low-income, or moderate-income persons or persons who have special housing needs. At least 30 percent of units must be occupied by very low-income persons and, at least another 30 percent by low-income persons. The remainder shall be occupied by persons who have special housing needs, very low-income, low-income, or moderate-income.

e.

The amount of monthly mortgage payments or the amount of monthly rents charged by the eligible sponsor must be affordable to eligible persons who will benefit from the program.

f.

Loans shall be provided for periods not exceeding 30 years except for deferred payment loans or loans that extend beyond 30 years which continue to provide eligible housing for eligible persons.

g.

Eligible owner-occupied housing constructed, rehabilitated, or otherwise assisted with SHIP funds shall be subject to subsidy recapture provisions which are identical to those specified in section 143 et seq. of the Internal Revenue Code which governs the use of proceeds of mortgage bonds.

h.

Eligible rental housing constructed, rehabilitated, or otherwise assisted with SHIP funds shall reserve and provide the minimum set asides for eligible persons for 15 years.

i.

A qualification system for applicants for awards consistent with the intent of the program and SHIP shall be established by the local housing partnership.

j.

The local housing partnership shall annually monitor and determine tenant eligibility and amount of subsidy pursuant to the provisions of this article and SHIP.

(3)

The POD, the local housing partnership, and all eligible sponsors shall not discriminate in the loan application process of eligible persons for eligible housing on the basis of race, creed, religion, color, age, sex, sexual orientation, marital status, familial status, national origin, or disability.

(4)

The City shall comply with all rules and regulations of the Florida Housing Finance Corporation in connection with required reporting by the City of compliance with its program.

(5)

Prior to receiving an award, all eligible persons or eligible sponsors shall enter into a covenant or agreement which will ensure that they will comply with the affordable housing criteria set forth in this article and SHIP. 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. The agreement may also be made a part of the mortgage agreement. Failure to comply with the covenant or agreement shall result in default of the mortgage and acceleration of the promissory note with all remedies and rights for enforcement inuring to the benefit of the City.

(6)

Eligible sponsors receiving assistance from both SHIP 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 housing 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.

(Code 1992, § 17.5-5; Ord. No. 90-G, § 1, 4-15-1993; Ord. No. 878-G, § 1, 6-5-2008)