Fort Walton Beach Council agenda — 02-08-05 — reading text

Finance Corporation ( FHFC) concerning the HOME Again Disaster Relief program. This program is designed to assist very low and low- income households with repair, reconstruction or replacement of their homes in the form of loans. The program gives local governments and non- profits access to a funding source that will provide a deep subsidy to homeowners who were impacted by one of the four hurricanes that hit Florida in 2004. The HOME Again Disaster Relief Assistance Program offers low and very- low income homeowners a non- amortizing, 00/0 interest rate loan which will have a minimum loan amount to of $ 1 , 000 and a maximum loan amount of $50, 000. If the eligible participants eligible participant has an income level at or below fifty percent of the County' s area median income ( AMI) in which the home is located, fifty percent ( 500/0) of the loan may be forgiven at a rate of ten percent ( 100/0) per year over a period of five ( 5) years. The loan becomes due upon the sale or voluntary transfer of the property, upon the death of the their participant or when the participant fails or ceases to occupy the property as his, her or principal residence, whichever occurs earlier, and the Promissory Note and Subordinate Mortgage is binding upon the heirs, successors, assigns and transferees of the participant. The City submitted its grant application December 17, 2004, and was sent an award letter on January 7, 2005 ( see attached letter). The City now needs to execute a Subrecipient with all Agreement with the Florida Housing Finance Corporation, assuring compliance statutory, regulatory,and other legal requirementsapplicable to HOME as described in the agreement. ANALYSIS: The CDS staff will be responsible for the overall administration for the grant, ensuring that met. all applicable State and Federal statutory, regulatory and other legal requirements are for This includes advertising and notification to the target population, protocol development selection and screening of applicants, working closely with the Building Official to select work criteria for the damage assessment phase, overseeing the finalization of the scope of for selected properties, and supervision of the contractor bid and selection process. LA- fJ Z. Staff plans to implement this program in a similar manner to the CDBG and CRA residential rehabilitation program already in place, working with the Purchasing Department in the bid process, with City Council final approval of each applicant. The HOME Again grant allows the City to recover up to 10% of the total grant award for administrative costs. RECOMMENDATION: Consideration to authorize the City Manager to accept and execute all grant/project agreements with the Florida Housing Finance Corporation HOME Again Disaster Relief Assistance Program in the amount of $300, 000. Attachments 1. Award Letter from Florida Housing Finance Corporation. 2. Q & A for HOME Again Disaster Relief Assistance Program. Submitted by: PJ4flner7T n ~/ Reviewed and Approved by: ~ / C:;; C)J 5 .Jh ~ j1c!( Ht / Reviewed and Concur: ~ J ce Shanahan ty Manager Florida Housing inance 227 North Bronough 850. 488. 4197 . Fax Street, Suite 5000 · 850. 488. 9809 · Tallahassee, www. Florida 32301 floridahousing. org Corporation we make housing affordable January 7, 2005 RECEIVED JAN 1 4 2005 Mr. Mike Burton City of Fort Walton Beach BY: P. 0, Box 4009 Ft.Walton Beach, FL 32549 Re: HOME Again Application - HA04- 718 Dear lVlr. Burton: Thank you for submitting an Application for the 2004 HOME Again - FHFC Disaster Relief HOME Assistance Program, which is regulated by Rule Chapter 67- 50, Florida Administrative Code (F.A.C.). The review of your Application has been completed and 'we' are pleased to announce that your Application has met the necessary threshold requirements, and therefore, you haveheen awarded an allocation of 300! OOO. OO in HOME funds for use in providing assistance under the HOME A. gain Program. Enclosed is a copy of the Subrecipient Agreement with two signature pages and all of the related- attacllInents. . Please execute all signature pages as well as the signed certificate' of incumbency Attachn1cnt 1)and return to: Elizabeth Loggins, Program Administrat.or HOME Again Program Florida Housing Finance Corporation 227 North Bronough Street, Suite 5000 Tallahassee, FL 32301- 1329 A fully executed original will be provided to you for your files, along with additional information and 111aterials regarding the Program. Many of the docurnentslisted as attachments and other associated relevant materials will be available on our website as fillable forms. If you have any questions, please do not hesitate to contact Elizabeth Loggins at ( 850) 488- 4197. Sincerely, tJ-AI{~ Esrone McDaniels Deputy Development Officer, Homeownership Attachment: Subrecipient Contract Jeb Bush, Governor Board of Directors: Cesar E. Calvet, Chairman · Terry Santini, Vice Chairman · Thaddeus Cohen, Ex Officio Jack Maxwell · David E. Oellerich ., Zully Ruiz · Lynn M. Stultz · Robert J. Taylor · Sandra Terry Orlando Cabrera, Executive Director  H 0 ME Again" Disaster Relief HOME Assistance Program Q& A As of November 29, 2004) 1. What is the HOME Again Program? Answer: This program is designed to provide financial assistance to homeowners who were severely impacted by the hurricanes with repair or reconstruction of their homes. 2. Who is eligible to apply for funding? Answer: Units of local government ( i. e. counties, cities, etc.), public housing authorities and non- profit entities may apply directly to Florida Housing on behalf of homeowners in their jurisdiction. An Applicant may consist of more than one entity. An Applicant can only with at submit one Applicationper county. Each Applicant must demonstrate experience least repairing or reconstructing 20 homes OR newly constructing 50 or more homes. An as a non- profit must submit a letter of recommendation or reference from Applicant applying a unit of local government and must submit copies of the most recent audited financial at the statements or three ( 3) years tax returns. Consumers will then have access to assistance local level through local governments, public housing authorities and non- profit entities once the program is implemented. 3. Where is Florida Housing with the design phase of the HOME Again program? Answer: This program is a subcomponent of Rule 67- 50, Florida Administrative Code under the operating Loan Homeownership Language has been added to the rule to Program. address disasters. A rule hearing was held on November 9, 2004 at 10: 00a.m. at Florida Housing. The rule is expectedto become effective in mid-December 2004. and 4. When will applications from local governments, public housing authorities non- profit entities be accepted? 17, 2004 Answer: The application period is anticipated to commence on or about December the right to and will remain open until funding is exhausted. Florida Housing will reserve close the application period in an effort to evaluate the process and funding levels at any given time. 5. How will funding be awarded? with 50% of the Answer: Funding will be awarded based on the following tiered structure allocated for Tier 1 and 50% for Tier funding being 2. Indian Tier 1: Escambia, Santa Rosa, Okeechobee, St. Lucie, Polk, Brevard, River, Hardee, Martin, De Soto, Charlotte Tier 2: All other counties for Tier 1 counties and $ 300K for Funding for each Applicant will be capped at $ 500K address one county. Tier 2 counties. Each Application that is submitted must only for homeowners? 6. What are some of the anticipated eligibility requirements Answer: a. Homeowner' s gross