Okaloosa County BOCC — April 19, 2016 — Okaloosa, LHAP2016-2019 rev 1 — reading text

30 days with either a letter from the mortgagor- notifying applicant of delinquency and/or intent to foreclose. In addition, the default must have been caused by circumstances beyond the control of the applicant, such as - death of spouse, unforeseen medical expenses, divorce, or unemployment- and there must be a reasonable prospect that the applicant will be able to resume full mortgage payments to the primary lender, based on an income certification to determine Affordability. This program may only be used once by an eligible homeowner. D. Disaster Repair Code 5 a. Summary of Strategy: Funds will be awarded to applicants in need of home repairs directly caused by a disaster -9-  SHIP LHAP Template 2009-001 Revised: 7/2015 that is declared by an Executive Order of the President or Governor. Repairs will be prioritized as follows: 1. Immediate threats to health and life safety (sewage, damaged windows, roofing) in cases where the home is still habitable. 2. Imminent residual damage to the home (such as damage caused by a leaking roof) in cases where the home is still habitable. 3. Repairs necessary to make the home habitable. 4. Repairs to mitigate dangerous situations (exposed wires) b. Fiscal Years Covered: 2016-2017, 2017-2018 and 2018-2019 c. Income Categories to be served: Those individuals or households who are at or below 80% of the median income d. Maximum award: $50,000 for Rehabilitation, temporary emergency relocation expenses not to exceed $3,500 per unit e. Terms: 1. The loan is a Deferred Payment Loans (DPL’s) 2. The loan has zero (0%) interest with no monthly payments secured by a recorded mortgage and promissory note. 3. Forgiven at the end of 5 (five) years. a. $1.00 - $50,000 = 5 Years @ 20% per year 4. The loan is due and payable upon sale, transfer or rental of subject property prior to forgiveness date. In the event of the death of a loan holder, if an income eligible heir makes the house their primary residence, the forgivable loan can be assumed by them. 5. Requests for subordination in the event of homeowner refinancing will be reviewed and granted only when the refinancing will result in a decrease of their mortgage payment. There is the stipulation of no cash in hand to the homeowner. f. Recipient Selection Criteria: Applicants will be assisted on a first-qualified, first-served basis with the following additional requirements: 1. Must provide proof of homeowner’s insurance 2. Must file for and use proceeds from insurance as first option g. Additional Information: Funds for disaster repairs will only be allocated from unencumbered funds or additional funds awarded through Florida Housing Finance Corporation for the disaster. E. New Construction or Rehabilitation Rental Code 14,21 a. Summary of the Strategy: The intent of this strategy is provide funds to private investors and other non-profits for the acquisition, construction or rehabilitation of existing substandard low-income rental housing, - 10 -  SHIP LHAP Template 2009-001 Revised: 7/2015 both single family homes and multi-family apartments or town homes, and to assist in the funding, rehabilitation or new construction of rental units within the County and City to further the efforts of low income rental development. b. Fiscal Years Covered: 2016-2017, 2017-2018 and 2018-2019 c. Income Categories to be served: Families occupying rental units rehabilitated or developed through this activity must have incomes below 80% of the median income or in the case of a development receiving tax credits; they must adhere to state required percentages. d. Maximum award: $50,000 per unit for new developments $40,000 per unit for existing developments e. Terms: Default/Recapture: For all awards, a default will be determined as: sale, transfer, or conveyance of property; conversion to another use; failure to maintain standards for compliance as required by any of the funding sources. If any of these occur, the outstanding balance will be due and payable. f. Recipient Selection Criteria: All applicants for residence in a SHIP-assisted unit must meet income qualifications of the program as determined by SHIP statutes. They must be reported by the developer’s management company for 15 years from date of award. g. Sponsor/Developer Selection Criteria: Developers applications will require proof of developer experience in providing affordable rental housing, proof of financial capacity, evidence of site control (or contract for sale), proof of ability to proceed once all funding is closed, and a housing unit design plan that meets with the county’s housing element in the Comprehensive Plan. All funding awards will be subject to closing on other funding sources. h. Additional Information: Developers will be required to meet compliance reporting requirements on the development necessary to meet the statutory requirements for monitoring of SHIP rental units for the period of 15 years. F. Demolition / Reconstruction Code 4 a. Summary of the Strategy: SHIP funds will be made available for the demolition of mobile homes and homes, which are determined to be deteriorated beyond repair for the reconstruction of homes on the property of the eligible homeowner. Reconstructed homes will include Energy Starr rated appliances, compact florescent light bulbs, energy efficiency rated HVAC units, and added insulation. Selected units will be determined based on feasibility analysis. The maximum allowable SHIP cost is up to $150,000. If applicant is eligible for a first mortgage on the reconstruction project, the Okaloosa CDC will pay the difference between the amount of the first mortgage and the cost of the new reconstruction. - 11 -  SHIP LHAP Template 2009-001 Revised: 7/2015 b. Fiscal Years Covered: 2016-2017, 2017-2018 and 2018-2019 c. Income Categories to be served: The targeted populations are those individuals or households who are at or below 80% of the median income. d. Maximum award: $180,000 e. Terms: 1. The loan is a Deferred Payment Loans (DPL’s) 2. The loan has zero (0%) interest with no monthly payments secured by a recorded mortgage and promissory note. 3. Forgiven at the end of 5 (five) years. a. $1.00 - $50,000 = 5 Years @ 20% per year b. $50,000 – $ 75,000 = 15 Years @ 6.67 % per year c. $75,000 - $180,000 = 20 Years @5% per year 4. The loan is due and payable upon sale, transfer or rental of subject property prior to forgiveness date. In the event of the death of a loan holder, if an income eligible heir makes the house their primary residence, the forgivable loan can be assumed by them. 5. Requests for subordination in the event of homeowner refinancing will be reviewed and granted only when the refinancing will result in a decrease of their mortgage payment. There is the stipulation of no cash in hand to the homeowner. f. Recipient Selection Criteria: Assistance will be provided on a first-come, first qualified, first-serve basis following annual advertisement when required of the availability of SHIP resources for eligible homeowners who are at no more than 80% of median income level for Okaloosa County. Section 420.9075(3)(c) Florida Statue, state that it is unlawful to discriminate on the basis of race, creed, color, religion, age, sex, marital or familial status, national origin, or handicap in the selection of recipients of contracts or assistance under the SHIP Program. III. LHAP Incentive Strategies In addition to the required Incentive Strategy A and Strategy B, include all adopted incentives with the policies and procedures used for implementation as provided in Section 420.9076, F.S.: a. Expedited Permitting : The processing of approvals of development orders or permits, as defined in s. 163.3177 (6) (f) (3), Okaloosa County: As provided in Policy 1.4.4 of the Housing Element of the Okaloosa County Comprehensive Plan, the County provides a fast-track review process for development order and building permit applications for projects that provide affordable housing. - 12 -  SHIP LHAP Template 2009-001 Revised: 7/2015 City of Fort Walton Beach: It is the policy of the City’s Development Services Division to expedite affordable housing projects to the greatest extent possible, while meeting all local, state and federal regulations. b. Ongoing Review Process: The establishment of a process by which a local government considers, before adoption, policies, procedures, ordinances, regulations, or plan provisions that increase the cost of housing. (Section 420.9071(16), Florida Statutes) Okaloosa County: The County shall route to the Okaloosa County/City of Fort Walton Beach Affordable Housing Advisory Committee for review and comment any proposed policy, ordinance, regulation, or plan provision that could affect the affordability of housing no less than