County of Volusia SHIP LOCAL HOUSING ASSISTANCE PLAN (LHAP) , and

Transcription

1 County of Volusia SHIP LOCAL HOUSING ASSISTANCE PLAN (LHAP) , and Adopted by Volusia County Council on April 21, 2016 Amended by Volusia County Council on August 4,

2 Table of Contents Description Page # Section I. Program Details 3 Section II. Housing Strategies 7 A. Homebuyer Assistance New Construction and Existing Homes 7 B. Housing Rehabilitation and Reconstruction 11 C. Roof/HVAC Program 15 D. Wind Hazard Mitigation 17 E. Multi-Family Rental Housing Development and Rehabilitation 19 F. Small Project Rental Housing Development and Rehabilitation 21 G. Rental Assistance 23 H. Disaster Strategy 24 Section III. Incentive Strategies 25 A. Expedited Permitting 25 B. Ongoing Review Process 26 C. Other Strategies - Density bonus 26 Exhibits 27 A. Administrative Budget for each fiscal year covered in the Plan B. Timeline for Estimated Encumbrance and Expenditure C. Housing Delivery Goals Chart (HDGC) For Each Fiscal Year Covered in the plan D. Signed LHAP Certification E. Signed, dated, witnessed or attested adopting resolution F. Ordinance: N/A (If changed from the original creating ordinance) G. Interlocal Agreement N/A H. Other Documents incorporated by reference H-1 Other Homebuyer Assistance Program Guidelines H-2 Other Housing Rehabilitation Program Guidelines - 2 -

3 I. Program Details: A. Name of the participating local government: County of Volusia Is there an Interlocal Agreement: Yes: No: X B. Purpose of the program: 1. To meet the housing needs of the very low, low and moderate income households; 2. To expand production of and preserve affordable housing; and 3. To further the housing element of the comprehensive plan of the County of Volusia specific to affordable housing. The program area covered by this LHAP is the whole of Volusia County except within the municipal boundaries of the cities of Daytona Beach and Deltona. C. Fiscal years covered by the Plan: , and D. Governance: The SHIP Program is established in accordance with Section , Florida Statutes and Chapter 67-37, Florida Administrative Code. Cities and Counties must be in compliance with these applicable statutes, rules and any additional requirements as established through the Legislative process. E. Local Housing Partnership: The SHIP Program encourages building active partnerships between government, lending institutions, builders and developers, not-for-profit and community based housing providers and service organizations, providers of professional services related to affordable housing, advocates for low-income persons, real estate professionals, persons or entities that can provide housing or support services and lead agencies of the local continuums of care. F. Leveraging: The Plan is intended to increase the availability of affordable residential units by combining local resources and cost saving measures into a local housing partnership and using public and private funds to reduce the cost of housing. SHIP funds may be leveraged with or used to supplement other Florida Housing Finance Corporation programs and to provide local match to obtain federal housing grants or programs. G. Public Input: Public input was solicited through face to face meetings with housing providers, social service providers and local lenders and neighborhood associations. Public input was solicited through the local newspaper in the advertising of the Local Housing Assistance Plan and the Notice of Funding Availability

4 H. Advertising and Outreach: SHIP funding availability shall be advertised in a newspaper of general circulation and periodicals serving ethnic and diverse neighborhoods, at least 30 days before the beginning of the application period. If no funding is available due to a waiting list, no notice of funding availability is required. I. Waiting List/Priorities: A waiting list will be established only when there are eligible applicants for a strategy in which there are more applicants than can be assisted within one month of application. Typically, an on-going waiting list is established for the housing rehabilitation strategy. The process for the housing rehabilitation waiting list is specifically defined in that strategy. Those households on the waiting list will be notified of their status. Applicants will be maintained in an order that is consistent with the time applications were submitted as well as any established funding priorities as described in this plan. J. Discrimination: In accordance with the provisions of ss , it is unlawful to discriminate on the basis of race, color, religion, sex, national origin, age, handicap, or marital status in the award application process for eligible housing. K. Support Services and Counseling: Support services are available from various sources. Available support services may include but are not limited to: Homeownership Counseling (pre-purchase) and Credit Counseling. L. Purchase Price Limits: The sales price or value of new or existing eligible housing may not exceed 90% of the average area purchase price in the statistical area in which the eligible housing is located. Such average area purchase price may be that calculated for any 12-month period beginning not earlier than the fourth calendar year prior to the year in which the award occurs. The sales price of new and existing units, which can be lower but may not exceed 90% of the median area purchase price established by the U.S. Treasury Department or as described above. The methodology used is: X U.S. Treasury Department Local HFA Numbers M. Income Limits, Rent Limits and Affordability: The Income and Rent Limits used in the SHIP Program are updated annually by the Department of Housing and Urban Development and posted at

5 Affordable means that monthly rents or mortgage payments including taxes and insurance do not exceed 30 percent of that amount which represents the percentage of the median annual gross income for the households as indicated in Sections , F.S. However, it is not the intent to limit an individual household s ability to devote more than 30% of its income for housing, and housing for which a household devotes more than 30% of its income shall be deemed Affordable if the first institutional mortgage lender is satisfied that the household can afford mortgage payments in excess of the 30% benchmark and in the case of rental housing does not exceed those rental limits adjusted for bedroom size. N. Welfare Transition Program: Should an eligible sponsor be used, a qualification system and selection criteria for applications for Awards to eligible sponsors shall be developed, which includes a description that demonstrates how eligible sponsors that employ personnel from the Welfare Transition Program will be given preference in the selection process. O. Monitoring and First Right of Refusal: In the case of rental housing, the staff and any entity that has administrative authority for implementing the local housing assistance plan assisting rental developments shall annually monitor and determine tenant eligibility or, to the extent another governmental entity provides the same monitoring and determination, a municipality, county or local housing financing authority may rely on such monitoring and determination of tenant eligibility. However, any loan or grant in the original amount of $10,000 or less shall not be subject to these annual monitoring and determination of tenant eligibility requirements. Tenant eligibility will be monitored annually for no less than 15 years or the term of assistance whichever is longer unless as specified above. Eligible sponsors that offer rental housing for sale before 15 years or that have remaining mortgages funded under this program must give a first right of refusal to eligible nonprofit organizations for purchase at the current market value for continued occupancy by eligible persons. P. Administrative Budget: A line-item budget of proposed Administrative Expenditures is attached as Exhibit A. The County of Volusia finds that the moneys deposited in the local housing assistance trust fund shall be used to administer and implement the local housing assistance plan. Section Florida Statute and Chapter 67-37, Florida Administrative Code, states: A county or an eligible municipality may not exceed the 5 percent limitation on administrative costs, unless its governing body finds, by resolution, that 5 percent of the local housing distribution plus 5 percent of program income is insufficient to adequately pay the necessary costs of administering the local housing assistance plan. Section Florida Statute and Chapter 67-37, Florida Administrative - 5 -

6 Code, further states: The cost of administering the program may not exceed 10 percent of the local housing distribution plus 5 percent of program income deposited into the trust fund, except that small counties, as defined in s (17), and eligible municipalities receiving a local housing distribution of up to $350,000 may use up to 10 percent of program income for administrative costs. The applicable local jurisdiction has adopted the above findings in the resolution attached as Exhibit E. Q. Program Administration: Administration of the local housing assistance plan will be wholly performed and maintained by the County of Volusia. R. Project Delivery Costs: Volusia County charges project delivery costs for the following program costs: 1. Homeownership counseling and purchase assistance application submittal services (Third-party contractor) 2. Initial and progress inspections for housing rehabilitation, wind hazard mitigation, rental development and homebuyer assistance programs (Staff) 3. Preparation of scope of work and cost estimates for housing rehabilitation and wind hazard mitigation projects (Staff) 4. Loan servicing initial set-up fee (Third-party contractor) S. Essential Service Personnel Definition: Essential Service Personnel is defined as teachers and educators; other school district, community college, and university employees; police and fire personnel; health care personnel; skilled building trades personnel; and hotel, motel, restaurant and other tourism trades personnel. T. Describe efforts to incorporate Green Building and Energy Saving products and processes: Energy conservation and other green features are incorporated into all rehabilitation projects, as the budget allows. The county s Green Building and Energy Savings products include, but are not limited to the following: 1. Windows/exterior doors replaced with energy conserving windows and doors 2. HVAC units are rated at a minimum of 14 SEER, and programmable thermostats are installed 3. Wall and ceiling insulation is replaced to meet R-39 ratings 4. Plumbing fixtures are replaced with low-flow plumbing fixtures 5. Appliances are replaced with EnergyStar rated appliances, as available U. Describe efforts to meet the 20% Special Needs set-aside: 1. Volusia County must use a minimum of 20 percent of its local housing distribution to service persons with special needs as defined in s , F.S. Persons with special needs have been defined as a priority ranking in the plan s - 6 -

7 housing strategies for housing rehabilitation and rental assistance. The County will give first priority for housing rehabilitation to serving persons with development disabilities, as defined in s , F.S., with an emphasis on home modification, including technological enhancements and devices, which allow homeowners to remain independent in their own homes and maintain homeownership. 2. The CAD will conduct outreach to special needs service providers and agencies to inform these agencies of SHIP funding available to assist special needs households that have housing needs, and to aid in the referral process. V. Describe efforts to reduce homelessness: Volusia County is an active participant in the Volusia/Flagler continuum of care. The lead agency for the local continuum of care was recently reconstituted and is the Volusia/Flagler Commission on Homelessness. Volusia County is planning to use SHIP funds for a rental assistance strategy that provides rental subsidy targeted to homeless persons, and also includes security and utility deposits. Volusia County has committed funding for the acquisition and rehabilitation of Hope Place which will provide emergency shelter and case management to assist homeless families with children and homeless youth achieve permanent housing. The county also uses other federal funds to support efforts to promote Rapid Re-Housing, homeless prevention through tenant based rental assistance, and homeless management information systems (HMIS). Section II. LHAP Strategies: A. Homebuyer Assistance New Construction and Existing Homes Code 1,2 a. Summary of Strategy: Homebuyer Assistance provides purchase and closing cost assistance to first-time homebuyers to assist with the costs to purchase a SHIPeligible newly constructed or existing home. This program also helps applicants purchase an existing home that passes HQS inspection or an existing that needs repairs to correct a deficiency identified through the county s HQS inspection, or other rehabilitation needed identified by the parties. Purchase assistance is provided as gap-financing (limited to the amount required to make the purchase affordable). Closing cost assistance can be provided alone or in combination with purchase assistance. The strategy does not provide funds to rehabilitate an existing home being purchased. At a minimum, all applicants must contribute towards the purchase price as follows: Very low-income applicants $500; low-income applicants $1,000; and moderate-income applicants $1,500. The strategy provides limited funds for closing costs; the homebuyer is responsible for additional funds required for closing. All applicants must complete an eight-hour HUDapproved homeownership education course prior to application submission

8 A new construction home must meet the Florida Building Code and have an occupancy permit that is no more than one year old. New or existing manufactured homes that meet the standards of Florida Chapter 553 for home ownership with an attached Florida certification are eligible if located on a lot owned by the applicant. Existing homes proposed for purchase must pass an HQS inspection completed by CAD staff prior to final approval. If the buyer is using a first-mortgage purchase rehabilitation loan, the home must meet HQS standards within six months of purchase. The current maximum purchase price for new construction and existing homes is $225,000 for moderate-income households; and $151,000 for new construction and existing homes for very-low and low-income households. Changes to the maximum purchase price limits will be published periodically by the community assistance division. b. Fiscal Years Covered: , and c. Income Categories to be served: Very low-, low- and moderate-income households d. Maximum award: See chart below: Income Category Extremely low income Very low-income Low-income Moderate-income Maximum Purchase Assistance Maximum Closing Cost Assistance Maximum Award Not to exceed $35,000 $5,000 $40,000 20% of the purchase price, not to exceed $25,000 20% of the purchase price, not to exceed $20,000 20% of the purchase price, not to exceed $15,000 $3,000 $28,000 $3,000 $23,000 $3,000 $18,000 e. Terms: 1. Loan/deferred loan/grant: The funds are provided as a deferred payment loan, secured by a second mortgage and note which are recorded in the public records. The loan is non-assumable. Eligible project delivery costs are not included in the loan amount and are provided as a grant. 2. Interest Rate: 0% interest 3. Term: 15 year term 4. Forgiveness/Repayment: The loan is forgiven 100% at the end of the 15 year term if all conditions are met. Repayment of the outstanding loan balance, - 8 -

9 and any shared appreciation, is due if the owner is in default within the 15 year term. Shared appreciation: The loan also includes shared appreciation provisions that apply if the home is sold by the homeowner prior to the end of the 15 year term. The amount of profit on the sale ( net appreciation ) is determined by taking the final sales price, less closing costs, less homeowner s initial investment in acquisition of the property, less any valid outstanding liens (including the lender s lien for payment of the loan from lender evidenced by the subordinate security instrument), less capital improvements to the property. The percentage of net appreciation to be shared between the county and homeowner is provided below: Year Homebuyer Net Appreciation County Net Appreciation 1-2 0% 100% % 50% % 20% % 0% 5. Default and Recapture: The homeowner is in default if any of the following occur: a) Homeowner ceases residing in the home as their primary residence, including due to the death of the homeowner (residency must be evidenced by the homestead exemption) b) Homeowner leases or rents the home c) Home is refinanced without the county s written consent d) Home is sold before the end of the loan term e) The homeowner violates another provision of their mortgage and note, or defaults on their first mortgage. If the homeowner defaults, the county may take action under its mortgage, including the following options: Recapture the full amount of the county s loan from the sale Recapture as much of its investment as possible from a foreclosure sale or short sale of the first mortgage Foreclose on the county s mortgage. f. Recipient Selection Criteria: All applicants must contact and work with one of the county s approved affordable housing partners (AHP) to complete and submit the program application. The county periodically advertises for qualified builders, real estate agents and brokers, lenders and non-profit organizations to be approved as an AHP to submit HBA applications

10 Eligible applicants are selected by CAD staff on a first qualified, first served basis. Funding of qualified applicants is limited to and contingent upon SHIP funds availability, with a priority ranking for 1) very-low income; and 2) low-income households. g. Sponsor/Developer Selection Criteria: N/A h. Additional Information: 1. Limitation on county assistance. Applicants that have been previously assisted by the county with housing rehabilitation or homebuyer assistance are not eligible to apply for homebuyer assistance. 2. Definition of first-time homebuyer: Applicants must meet Volusia County s definition of a first-time homebuyer. A first-time homebuyer is a person who has not owned a home in the three (3) years preceding the date of application for the program. However, a person owning and residing in a pre-1994 mobile or manufactured home at the time of application, or a person owning and residing in a mobile or manufactured home that is ten years old or more which is located on a rented lot, are not considered homeowners for this purpose and may apply for the program. 3. Additional limitations on amount of assistance: a) The total amount of assistance cannot exceed the first mortgage amount; b) The total amount of assistance cannot exceed 50% of the purchase price; c) The applicant cannot receive any cash out at closing; and d) The front-end ratio must be at least 22% to demonstrate the need for purchase assistance. 4. Ineligibility due to foreclosure. An applicant that has been a defendant within seven years of the date of application in a foreclosure action that resulted in a foreclosure of their home is not eligible for the program. An applicant that has been a defendant within the last five years in a foreclosure action that did not result in foreclosure, but resulted in a settlement transferring a property the applicant owned by deed in lieu of foreclosure or short sale, may apply for the program and the CAD shall consider the documentation in support of their application. 5. Post-purchase refinance of first mortgage or home equity loan. The county may consent to the subordination of its loan to a refinance of the first mortgage loan or allow a home equity loan or other subordinate transfer when a refinancing is requested during the term of the county s loan. The refinance must have terms that improve the long-term affordability of the first

11 mortgage loan to the homeowner or assist in sustaining homeownership. In making a determination, the community assistance division will consider the following conditions and terms: a) The homeowner must have resided in the property for at least two years; b) Lower interest and shorter term of the existing and proposed loan; c) Principal balance of the existing loan; d) Reasons for the request; and e) The homebuyer cannot receive any cash out as a result of the refinancing, except for funds to pay for documented emergency home repairs that become necessary to sustain homeownership and maintain the health and safety of the residents. 6. Additional program guidelines are attached as Ex H-1 and are also available for review: B. Housing rehabilitation and Reconstruction Code 3, 4 & 6 a. Summary of Strategy: The housing rehabilitation program provides funds to rehabilitate or reconstruct existing owner-occupied homes. The home must have one or more of the following conditions: 1) housing code violation(s) as documented by local building authorities/code enforcement that impact safe and sanitary habitation; 2) house is in substandard condition as provided in Volusia County s housing rehabilitation standards; 3) the home needs improvements to increase energy efficiency and sustainability; or 4) the house needs accessibility improvements to meet the needs of a household member with special needs as defined by s , F.S., has a disabling condition or is elderly. The housing rehabilitation program is administered and implemented by Volusia County Community Assistance Division (CAD). Eligible rehabilitation costs include but are not limited to all rehabilitation and construction materials, supplies, demolition, contracted services and labor, permitting fees, utility connection fees, well and septic abandonment, surveying, lead and asbestos abatement, HERS evaluation reports, re-financing of first mortgage and loan underwriting and closing costs. The costs to assist special needs and elderly households with home modifications, including technical enhancements and devices, that will allow homeowners to remain independent in their own homes and maintain their homeownership are also eligible. In addition to the eligible costs outlined above, funds may also be expended for project related soft costs, including but not limited to lead-based paint/asbestos testing fees, variance fees and loan servicing set-up fees, and eligible staff delivery costs for initial and progress inspections and scope of work preparation. These project related soft and staff delivery costs are provided as a grant

12 CAD staff evaluates the owner-applicant and their home to determine program and income eligibility, and feasibility for housing rehabilitation. CAD is responsible to determine the rehabilitation scope of work and uses a whole house approach; special needs applicants may assist CAD determine the accessibility improvements that are requested and necessary. CAD staff evaluates all applicants for their ability to repay based on approved underwriting guidelines and responsible lending practices. Homes determined to be infeasible for rehabilitation may be proposed for reconstruction, which demolishes the existing home and reconstructs another home of the same approximate size and bedroom number on the same lot. Reconstruction is considered when the estimated cost to provide rehabilitation exceeds 60% of the adjusted replacement cost. Based on the nature of the repair and the estimated price to complete the project, a contractor is selected by the CAD through one of the processes below to complete the rehabilitation on behalf of the eligible homeowner: 1. A pool of qualified contractors/builders is established through a request for statement of qualifications (RSQ) completed by the county s purchasing division and the rehabilitation scope of work for the project is bid to the pool contractors; 2. Contractor that has a written price agreement with the county; 3. Written quotes are solicited from qualified contractors by the homeowner or the county. b. Fiscal Years Covered: , and c. Income Categories to be served: Very low-, low- and moderate-income households d. Maximum award: $125,000 e. Terms: 1. Loan/deferred loan/grant: The assistance is provided by a grant, deferred loan or repayment loan based on the project cost and the owner s ability to repay as determined by CAD staff. a) Grants are provided for all projects that cost $5,000 or less b) Deferred payment loans are provided for all projects that cost between $5,001 and $10,000; the deferred loan is secured by a recorded mortgage and note. c) Repayment loans are provided for all projects that cost from $10,000 up to the maximum award amount. The CAD has the authority to recommend a deferred payment loan for projects that cost more than $10,000 under certain approved situations further described in section h, paragraph Interest Rate: 0% interest for deferred and repayment loans

13 3. Term: a) Deferred payment loans have a 5 year term b) Repayment loans have terms that range from 5 years to 30 years depending on the amount of the loan and the owner s ability to repay 4. Forgiveness/Repayment: a) Grants are not subject to repayment b) Deferred payment loans are not repaid and are forgiven 100% at the end of the term, provided no default has occurred c) Repayment loans are amortized and repaid 100% during the term of the loan 5. Default/Recapture: a) Grants are not subject to default or recapture b) Deferred payment and repayment loans: The homeowner is in default if any of the following occur: 1) Homeowner ceases residing in the home as their primary residence, including due to the death of the homeowner (residency must be evidenced by the homestead exemption) 2) Homeowner leases or rents the home 3) Home is refinanced without the county s written consent 4) Home is sold before the end of the loan term 5) The homeowner violates another provision of their mortgage and note, or defaults on their first mortgage. If the homeowner defaults, the county may take action under its mortgage, including foreclosing on the county s mortgage. f. Recipient Selection Criteria: The recipient selection process is a two-step process: pre-application and full application. All persons must complete a pre-application. The pre-application is reviewed to determine if the applicant and their home meets the initial criteria. The initial criteria review includes the following factors: Location of home is within SHIP program area Ownership of the home as shown by Volusia County property appraiser and clerk of court records matches pre-application Home s assessed value does not exceed county s limit Repair requested is not merely cosmetic improvement Applicant is current on Volusia County taxes and other priority liens Estimated household income If the pre-application meets the initial criteria the applicant is placed on a waiting list. Persons are selected from the waiting list to submit a full application based on established priorities, length of time on the waiting list, and the county s status of

14 compliance with meeting SHIP income and other set-aside requirements. priorities for selection are the following: The 1) Special needs household with development disabilities, as defined in s , F.S. Ranked with further preference for very-low and low-income households 2) All other special needs households as defined in s , F.S Ranked with further preference for very-low and low-income households 3) Very-low income households 4) Low-income households The CAD may also pull an eligible applicant from the waiting list based on the home having one of the following emergency conditions: The home has no operating source of potable water The home has a sanitary sewer system that has a documented failure The home has a severe safety and sanitary deficiency that has been documented by a code enforcement agency, which could result in imminent displacement of the household. The CAD will use the same whole house evaluation approach for applicants pulled from the waiting list due to existence of an emergency condition. An applicant cannot choose to address only the emergency condition if other substandard conditions have been identified by the CAD. Applicants that have been selected from the waiting list are assisted on a first qualified, first served basis. Funding of eligible applicants is further limited to and contingent upon SHIP funds availability. g. Sponsor/Developer Selection Criteria: N/A h. Additional Information: 1. Limitation on county assistance: Applicants that have been previously assisted by the county with housing rehabilitation or homebuyer assistance are not eligible to apply for additional rehabilitation for their home. However, the provision of wind hazard mitigation or basic accessibility improvements to a home is not considered housing rehabilitation for this purpose. 2. Other eligibility criteria a) Applicants must have owned and occupied the home for a minimum of one year under a recorded instrument conveying fee simple title, as documented by the homestead exemption. b) The home must have an insurable title sufficient to provide reasonable security for the mortgage lien

15 3. Limited exception to loan repayment policy: Persons or households, regardless of age, that do not have the financial ability to fully repay for rehabilitation that is required to correct a documented housing code violation or a condition that poses an immediate health and safety issue may be provided as a deferred payment loan secured by a mortgage. The CAD will review household income every three years to re-evaluate the household s ability to repay. The term of the deferred payment loan shall range from years based on total project cost. The loan shall be forgiven an annual percentage (based on the loan term) of the loan amount for each year the owner resides in the home. The remained of the deferred payment loan is recaptured upon transfer of title or death. 4. The loan underwriting guidelines, policy on death of homeowner during mortgage term, and other program guidelines are attached as Ex. H-2 and are also available for review at 5. SHIP funds may be leveraged with U.S. Department of Housing and Urban Development HOME Investment Partnerships (HOME) and Community Development Block Grants (CDBG) funds, and other federal, state and local funds. C. Roof/HVAC Program Code 6 a. Summary of Strategy: The Roof/HVAC program is a component of the Housing Rehabilitation program which is administered and implemented by Volusia County Community Assistance Division (CAD). The Roof/HVAC (heating, ventilation, and air conditioning) program provides funds to replace or repair the roof or HVAC system of an existing owner-occupied home. The home must have only one of the following conditions: 1) roof is leaking and/or has exceeded its useful life; OR 2) house has no HVAC system/unit; an HVAC system/unit that is not properly functioning and/or has exceeded its useful life; or an HVAC system/unit which is functional but is extremely inefficient. Eligible rehabilitation costs include, but are not limited to, all rehabilitation and construction materials, supplies, demolition, contracted services and labor, permitting fees, surveying, lead and asbestos abatement, HERS evaluation reports, loan underwriting and closing costs. In addition to the eligible costs outlined above, funds may also be expended for project related soft costs, including but not limited to lead-based paint/asbestos testing fees and loan servicing set-up fees, and eligible staff delivery costs for initial and progress inspections and scope of work preparation. These project related soft and staff delivery costs are provided as a grant. The applicant and their home are evaluated to determine program and income

16 eligibility, and feasibility for Housing Rehabilitation, including feasibility for this program. CAD is responsible to determine the rehabilitation scope of work and uses a feasibility inspection of the entire home to determine the scope of repairs required. If the feasibility inspection determines that other repairs in addition to the Roof/HVAC repairs are required, the CAD will process the application under the Housing Rehabilitation program procedures, and the application will be placed on the Housing Rehabilitation waiting list. CAD staff conducts the initial inspection to determine scope of work required for the replacement/repair of the roof or HVAC. CAD completes a written scope of work and provides to the homeowner. The homeowner is required to undertake the following: 1. Obtain three written quotes, using CAD provided forms, to complete the scope of work from a properly licensed and adequately insured roofing/hvac contractor; 2. Provide quotes to CAD staff for review and approval to contract with the lowest responsive quoter; 3. Attend the loan/grant closing to sign program agreements and documents, and the mortgage and note (loan closing only); 4. Coordinate with selected contractor to ensure access to home. The CAD staff conducts an inspection to ensure that the work has been completed according to the scope of work and pays the contractor directly upon completion of the project as provided in the funding agreement. b. Fiscal Years Covered: , and c. Income Categories to be served: Very low-, low- and moderate-income households d. Maximum award: $20,000 e. Terms: 1. Loan/deferred loan/grant: The assistance is provided by a grant, deferred loan or repayment loan based on the project cost and the owner s ability to repay as determined by CAD staff. a) Grants are provided for all projects that cost $5,000 or less b) Deferred payment loans are provided for all projects that cost between $5,001 and $10,000; a deferred loan is secured by a recorded mortgage and note. c) Repayment loans are provided for all projects that cost from $10,000 up to the maximum award amount. The CAD staff is responsible to evaluate all applicants for their ability to repay based on approved underwriting guidelines and responsible lending practices which are further described

17 in Exhibit H-2. The CAD has the authority to recommend a deferred payment loan for projects that cost more than $10,000 under certain approved situations further described in section h, paragraph Interest Rate: 0% interest for deferred and repayment loans 3. Term: a) Deferred payment loans have a 5 year term b) Repayment loans have terms that range from 5 years to 30 years depending on the amount of the loan and the owner s ability to repay. Additional information regarding the loan repayment terms is found in Exhibit H Forgiveness/Repayment: a) Grants are not subject to repayment b) Deferred payment loans are not repaid and are forgiven 100% at the end of the term, provided no default has occurred c) Repayment loans are amortized and repaid 100% during the term of the loan 5. Default/Recapture: a) Grants are not subject to default or recapture b) Deferred payment and repayment loans: The homeowner is in default if any of the following occur: 1) Homeowner ceases residing in the home as their primary residence, including due to the death of the homeowner (residency must be evidenced by the homestead exemption) 2) Homeowner leases or rents the home 3) Home is refinanced or further encumbered without the county s written consent 4) Home is sold before the end of the loan term 5) The homeowner violates another provision of their mortgage and note, or defaults on their first mortgage. If the homeowner defaults, the county may take action under its mortgage, including foreclosing on the county s mortgage. f. Recipient Selection Criteria: The recipient selection process is a two-step process: pre-application and full application. All persons must complete a Housing Rehabilitation program preapplication which allows for self-identification of the requested repairs. The preapplication is reviewed to determine if the applicant and their home meets the initial criteria. The initial criteria review includes the following factors: Location of home is within SHIP program area Ownership of the home as shown by Volusia County property appraiser and

18 clerk of court records matches pre-application Home s assessed value does not exceed county s limit Repair requested is not merely cosmetic improvement Applicant is current on Volusia County taxes and other priority liens Estimated household income If the pre-application meets the initial criteria for the Roof/HVAC program, the applicant is notified of the need for a feasibility inspection. The CAD uses the same whole house evaluation approach for applicants reviewed for the Roof/ HVAC program. An applicant may not choose to address only the roof and HVAC repairs if other substandard conditions have been identified through the feasibility inspection. The priorities for selection for the Roof/HVAC program are the following: 1. Special needs household with development disabilities, as defined in s , F.S. Ranked with further preference for very-low and low-income households 2. All other special needs households as defined in s , F.S Ranked with further preference for very-low and low-income households 3. Very-low income households 4. Low-income households Applicants that have been selected for the Roof/HVAC program are assisted on a first qualified, first served basis. Funding of eligible applicants is further limited to and contingent upon SHIP funds availability. g. Sponsor/Developer Selection Criteria: N/A h. Additional Information: 1. Limitation on county assistance: Applicants that have been previously assisted by the county with Housing Rehabilitation or Homebuyer Assistance are not eligible to apply for additional repairs for their home. However, the provision of wind hazard mitigation or basic accessibility improvements to a home is not considered housing rehabilitation for this purpose. 2. Other eligibility criteria a) Applicants must have owned and occupied the home for a minimum of one year under a recorded instrument conveying fee simple title, as documented by the homestead exemption. b) The home must have an insurable title sufficient to provide reasonable security for the mortgage lien. 3. Limited exception to loan repayment policy: Persons or households, regardless of age, that do not have the financial ability to fully repay for rehabilitation that is required to correct a documented housing code violation or a condition that poses an immediate health and safety issue may be

19 provided as a deferred payment loan secured by a mortgage. The CAD will review household income every three years to re-evaluate the household s ability to repay. The term of the deferred payment loan shall range from years based on total project cost. The loan shall be forgiven an annual percentage (based on the loan term) of the loan amount for each year the owner resides in the home. The remainder of the deferred payment loan is recaptured upon transfer of title or death. Additional information regarding exceptions to the loan repayment terms are found in Exhibit H-2 4. The loan underwriting guidelines, policy on death of homeowner during mortgage term, and other program guidelines are attached as Ex. H-2 and are also available for review at D. Wind Hazard Mitigation Code 5 a. Summary of Strategy: The Wind Hazard Mitigation strategy assists homeowners of owner-occupied, site built homes to cover the costs to install certain wind hazard mitigation features. The following features are eligible: 1. Window and door shutters and coverings 2. Wind-rated garage doors 3. Gable-end tie downs The just value of the property as determined by the Volusia County Property Appraiser cannot exceed the maximum value published annually by the community assistance division (CAD). CAD staff conducts the initial and follow-up inspection to determine the wind hazard mitigation features that are eligible and document satisfactory completion of the project. Based on the eligible wind hazard mitigation features, and the estimated price to complete the project, the homeowner: 4. Obtains three written quotes from a licensed, certified contractor; 5. Provide quotes to CAD staff for review and approval; and 6. Attend the loan closing to sign mortgage, note and related documents. b. Fiscal Years Covered: , and c. Income Categories to be served: Very-low, low- and moderate-income households d. Maximum award: $11,000 including loan closing costs e. Terms: 1. Loan/deferred loan/grant: The funds are provided as a deferred payment loan. The loan is secured by a mortgage and note which are recorded in the public records of Volusia County. Project delivery costs are not included in the loan amount and are provided as a grant

20 2. Interest Rate: 0% interest 3. Term: 5 years 4. Forgiveness/Repayment: The deferred payment loan is forgiven 100% at the end of the 5 year term, provided no default has occurred. 5. Default/Recapture: Deferred payment loans: The homeowner is in default if any of the following occur: a) Homeowner ceases residing in the home as their primary residence, including due to the death of the homeowner (residency must be evidenced by the homestead exemption) b) Homeowner leases or rents the home c) Home is refinanced without the county s written consent d) Home is sold before the end of the loan term e) The homeowner violates another provision of their mortgage and note, or defaults on their first mortgage. If the homeowner defaults, the county may take action under its mortgage, including foreclosing on the county s mortgage. f. Recipient Selection Criteria: All applicants must complete an application and submit documentation of income and program eligibility. Eligible applicants are selected by CAD staff on a first qualified, first served basis. Funding of qualified applicants is limited to and contingent upon SHIP funds availability, with a priority ranking for 1) special needs households, 2) very-low income households, and 3) lowincome households. g. Sponsor/Developer Selection Criteria: N/A The program is implemented by the community assistance division (CAD) using staff and rehabilitation contractors. h. Additional Information: SHIP funds may be leveraged with Department of Housing and Urban Development Community Development Block Grants (CDBG) funds, and other federal, state and local funds

21 E. Multi-Family Rental Housing Development and Rehabilitation Code 14,21 a. Summary of the Strategy: The Multi-Family Rental Housing Development and Rehabilitation strategy provides funds to developers that are constructing or rehabilitating multi-family (ten or more units) affordable rental housing units. The purpose of the strategy is to provide local government contribution or other leverage/match financing for an eligible affordable rental project. The funds are available to developers applying to FHFC or other funding entity for Low Income Housing Tax Credits, State Apartment Incentive Loan (SAIL), State HOME Investment Partnerships Program or other multi-family affordable housing funding that becomes available from time to time for affordable rental housing, including transitional housing. The proposed project must be located within the unincorporated area of Volusia County and the areas within the boundaries of the municipalities that have executed Cooperation Agreements under the Volusia County Community Development Block Grant program. The funds may be used for site acquisition, site development, infrastructure improvements, permitting fees, connection fees, and/or application fees incurred for the construction of the rental housing. These fees must be directly related to new construction and do not include development fees such as rezoning, site plans, etc., unless the project is owned by a non-profit organization. The funds may not be used for re-financing, loan guarantees or developer fee. The number of SHIP-assisted units in the project is limited and is determined by CAD, based on available SHIP funds and funding need. The developer must identify the units in the project that are SHIP-assisted units.. The affordability restrictions will be enforced with written agreements, mortgages and recorded declarations of covenants and conditions. The county will ensure the project is monitored for at least 15 years to comply with affordability conditions by itself or another eligible monitoring entity. b. Fiscal Years Covered: , , and c. Income Categories to be served: very low-income d. Maximum award: $75,000 per SHIP-assisted unit. e. Terms: 1. Loan/deferred loan/grant: The funds are provided as a deferred payment loan which is secured by a subordinate mortgage and note recorded against the property 2. Interest Rate: Interest rate that is the lesser of a 2% discount from the

22 primary financing or 3% 3. Term: 20 years or most restrictive funding source 4. Forgiveness/Repayment: The deferred payment loan requires repayment of interest-only during the term of the loan, with 100% repayment of the outstanding principal balance at the end of the term. 5. Default/Recapture: Default of the loan occurs if any part of the property, or any interest in it is sold, transferred, gifted or otherwise conveyed, whether by voluntary act, involuntarily, by operation of law or otherwise, or if the mortgagee is divested of title by judicial sale, levy or other proceeding, or if foreclosure action is instituted against the property, or if the SHIP-assisted units are leased or rented to other than eligible tenants. If the property owner defaults on a superior mortgage, the county may elect at its discretion either of the following options: 1) Recover as much of its investment as possible from the resulting foreclosure sale. 2) The mortgage may be deferred. 3) If any project assisted under this strategy is offered for sale before the completion of the affordability period, eligible nonprofit housing provider organizations must have a right of first refusal to purchase at the current market value for continued rental and occupancy by eligible households. f. Recipient Selection Criteria: Residents of SHIP-assisted units must be very-low income and selected on a first-qualified, first-served basis.. g. Sponsor/Developer Selection Criteria: The county advertises periodically through a request for proposals (RFP) or similar application process, for qualified for-profit and non-profit developers to submit applications for funding. The selection of the developer and authority to commit the funds and enter into a written developer agreement is approved by the county council. For-profit and non-profit sponsors will compete for funding and selected based on the criteria, which will be further defined and revised in the advertised RFP/application. Should an eligible sponsor be used, the County has developed a qualification system and selection criteria for applications for awards to eligible sponsors, which includes a description that demonstrates how eligible sponsors that employed personnel from the Welfare Transition Program will be given preference in the selection process. Funding of qualified sponsors is limited to and contingent upon SHIP funds availability. h. Additional Information:

23 SHIP funds may be leveraged with Department of Housing and Urban Development HOME Investment Partnerships Program (HOME) and Community Development Block Grants (CDBG) funds, and other federal, state and local funds. F. Small Project Rental Development and Rehabilitation Code 12,14,21 a. Summary of the Strategy: The Small Project Rental Development and Rehabilitation strategy provides financial assistance to non-profit entities for the creation or preservation of a rental project consisting of one to nine units of affordable rental housing. The funds are provided to non-profit owners/developers whose rental properties are for the benefit of lowand very low-income persons, and persons who have special housing needs. The rehabilitation must be due to the existence of housing code violations that present a health or safety concern, sub-standard structural or mechanical conditions, to improve energy efficiency and weatherization, or to increase accessibility for disabled persons or persons at risk of institutionalization. The funds may be used for the reasonable and customary costs associated with the acquisition, construction, demolition, rehabilitation, project soft costs, etc. that are typically associated with the rehabilitation of affordable rental housing. The funds may not be used for refinancing or loan guarantees. The number of SHIP-assisted units in the project is limited and is determined by CAD, based on available SHIP funds and demonstrated need. The affordability restrictions will be enforced with written agreements, mortgages and recorded declarations of covenants and conditions. The county will ensure the project is monitored for at least 15 years to comply with affordability conditions by itself or another eligible monitoring entity. b. Fiscal Years Covered: , , and c. Income Categories to be served: very low- and/or low-income households d. Maximum award: $125,000 per SHIP-assisted unit. e. Terms: 1. Loan/deferred loan/grant: The funds are provided as a deferred payment loan which is secured by a subordinate mortgage and note recorded against the property. 2. Interest Rate: 0% 3. Term: 15 years or most restrictive funding source