State Housing Initiatives Partnership Program

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State Housing Initiatives Partnership Program

• (SHIP)

Presented to the Florida Housing Board of
Directors September 21, 2007
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(No Transcript)
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Governance

• The SHIP program is governed by
• 420.907-420.9079, Florida Statutes
• and
• Rule 67-37, Florida Administrative Code

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SHIPs Purpose

• Tied to the housing element of the local
  government comprehensive plan
• Provides funds to local governments to create
  partnerships to produce and preserve affordable
  home ownership and rental housing for very low,
  low and moderate income households.
• Allows local governments to design strategies
  based on local housing needs.

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SHIP Funding

• Funding generated through documentary stamp tax
• Funds allocated to all 67 counties and 51 CDBG
  eligible cities
• Funds allocated on a population basis
• Minimum of 350,000 per county

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SHIP Funding by Year
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Program Funding

• From 1992-present, the SHIP Program has allocated
  1.5 billion in funds to local governments.
• Since 1992, 145,000 households have received
  assistance in the form of down payment
  assistance, rehabilitation, emergency repairs and
  other strategies.

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Program Requirements

• A minimum of 65 of funds must be spent on
  eligible home ownership activities.
• A minimum of 75 of funds must be spent on
  eligible construction activities.

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Income Requirements

• At least 30 of the funds must be reserved for
  very low income households (at or below 50 of
  median income).
• An additional 30 of the funds may be reserved
  for low income households (at or below 80 of
  median income).
• The remaining funds may be reserved for moderate
  income households (at or below 120 of median
  income).

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Actual Incomes ServedFY 2004/2004 through
2004/2005
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Strategy Types

• Down Payment Assistance
• Purchase Assistance
• Housing Rehabilitation/Repair
• Foreclosure Intervention
• New Construction
• Disaster Mitigation/Recovery

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SHIP Process

• Local Government develops Local Housing
  Assistance Plan every 3 years
• Initial LHAP recommended by local Affordable
  Housing Advisory Committee
• Approved by local elected board by resolution
• Submitted to Florida Housing for statutory/rule
  review and approval

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Local Housing Assistance Plan

• Details the strategies, subsidy limits and
  eligibility requirements established for the
  local program
• Based on local housing needs
• Allows for flexibility at the local level

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Program Implementation

• Receive allocation
• Advertise availability of funds
• Establish application period
• Reviews and approves applications
• Income compliance
• SHIP funding awards approved
• Based on bids, purchase price limits and subsidy
  limits

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Affordable Housing Advisory Committees

• Previously this committee could be sunsetted
  after initial plan developed
• 2007 legislation requires locals to re-establish
  these committees and re-defines their purpose and
  duties
• Triennial review and recommendation to elected
  officials changes to policies, procedures,
  ordinances, and the comp plan to facilitate
  affordable housing

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Reporting Requirements

• All local governments must submit Annual Reports
  (due every September 15). The annual report
• Details funds expended, encumbered and
  unencumbered for 1 close out year and two interim
  years
• Details the strategies, income levels served
• Other information including loan default rates

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Accountability Sources

• Florida Statutes (Chapter 420 Part VII)
• Florida Administrative Code (Rule 67-37 and
  67-53.005)
• Local Housing Assistance Plan (LHAP)

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Accountability Mechanisms

• Annual Reports
• Audited Financial Statements (AFS)
• Florida Single Audit Act (FSAA)
• Compliance Monitoring
• Local Government Internal Audits
• Florida Housing Internal Audit Office
• Technical Assistance

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Annual Reports

• Items that are or may indicate a problem
• Reports consistently submitted late
• Numerous report amendments
• Frequent expenditure extension requests
• Funds not encumbered or expended by deadline
• Statutory set-asides not met
• Figures do not add up

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Audited Financial Statements

• Performed annually by independent CPA
• Performed for ALL local governments
• Reviewed for compliance with FAC Rule
• Reviewed for auditor findings

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Florida Single Audit Act (FSAA)

• Performed for all local governments receiving a
  distribution of 500,000 or more
• May be included with AFS or be a separate report
• Reviewed for questioned costs in SHIP

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Compliance Monitoring

• Compliance Monitoring Review Agents under
  contract with Florida Housing per triennial RFP
• Conduct onsite visits of all local governments
  over 3 year period
• Annual review
• Follow-up review(s)
• Special Reviews, as needed

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Compliance Monitoring

• Review on a sample basis
• Recordkeeping
• Recipient Income Eligibility
• Propriety of Expenditures
• Tracking
• Physically inspect housing units constructed,
  repaired/rehabilitated, etc.

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Local Government Internal Audits

• May be conducted in accordance with local
  government internal auditors own audit work plan
• May be conducted upon request by Florida Housing
• Final Report required to be submitted to Florida
  Housing

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Florida Housing Office of Internal Audit

• Provides analyses, opinions, interpretations on
  AFS, FSAA, local government internal audits,
  proposed rules, monitoring review procedures,
  etc.
• May perform desk audits or onsite reviews of
  local governments after unsatisfactory monitoring
  review
• Provides recommendations to correct instances of
  non-compliance

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Florida Housing Office of Internal Audit

• Provides recommendations to correct instances of
  non-compliance
• Consults with General Counsel when pattern of
  violation noted
• Suspension
• Termination

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Training and Technical Assistance

• May be requested by local government
• May be recommended by monitoring review agent
• May be required by Florida Housing

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Affordable Housing Catalyst Program

• Established by the Legislature to provide
  training and technical assistance to agencies
  receiving SHIP funds as well as non-profit and
  community based organizations engaged in the
  provision of affordable housing
• Assistance focuses on both statute and rule as
  well as policy and strategy design
• Assistance delivered in several ways
• Direct On-Site
• Mostly a demand/response system
• New administrators automatically receive direct
  assistance
• Assistance is provided to communities with
  unsatisfactory monitoring reports

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Affordable Housing Catalyst Program

• Off-site Technical Assistance
• E-mail and phone support
• 583 questions answered January August 2007
• Workshops
• Core Curriculum for Housing Professionals
• Advanced Curriculum For Housing Professionals
• Special Topics
• On-Line Trainings

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Affordable Housing Catalyst Program

• Web-Site
• SHIP Frequently Asked Questions
• Web-based training on income compliance
• Back issues of Housing Network News

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2007 SHIP ReviewFindings Recommendations
Helen Hough Feinberg, Chair September 21, 2007
2007 SHIP ReviewFindings Recommendations
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AHSC Findings on SHIP

• The SHIP program has proven successful in
  assisting Floridas very low-, low- and
  moderate-income families to obtain affordable
  housing.
• SHIP has built the local capacity of counties and
  cities to address their specific housing needs.
• SHIP strikes an effective balance between
  flexibility for local governments, and reporting
  and use requirements that ensure an accountable
  use of state dollars.

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Should Income Targets Be Changed?

• Should SHIP be used to provide Workforce
  Housing up to 140 AMI?
• Commission voted NO.
• Should SHIP create a new category to serve
  Extremely Low Income households?
• Commission voted NO.

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Should Production Goals for Homeownership and
Construction Activities Be Changed?

• The Study Commission voted to recommend no
  changes to the statutory home ownership and
  construction activities requirements.
• However, the Florida Legislature should amend the
  SHIP statute to allow Local Governments to waive
  the 65 homeownership requirement when a need for
  rental is demonstrated.

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Using SHIP for HUD-CodeManufactured Housing

• The Florida Legislature should allow local
  governments to use SHIP funds to assist existing
  owners of HUD-Code manufactured housing
  designated as real property in need of handicap
  accessibility upgrades, utility or sewer hook-ups
  or emergency repairs.
• Targeted to elders, persons with disabilities and
  households earning 80 or less of AMI.

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Planning and Affordable HousingNeed Better
Coordination

• Coordination between housers and planners is not
  as robust as it should be, a situation which
  AHACs can help to remedy.
• The Study Commissions recommendations on HB
  1373, which were enacted, include joint staffing
  of AHACs.
• Florida Housing and Florida DCA should train
  housing and planning stakeholders on the
  statutes, rules and policies that affect
  affordable housing to promote better land use and
  affordable housing spending.

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Other SHIP Recommendations

• Consider SHIP for Smaller, Non-Subsidized Rental
  Properties.
• Facilitate conflicting income verification and
  underwriting methods.
• Raise Minimum Allocations.
• Create More Flexible Sanctions for Florida
  Housing.