TO: Mayor and City Commission
FROM: Cale Curtis, City Manager
DATE: July 1, 2020
Title
RESOLUTION - A RESOLUTION OF THE CITY OF MARGATE, FLORIDA, APPROVING TECHNICAL REVISION TO THIRD AMENDMENT SHIP LOCAL HOUSING ASSISTANCE PLAN (LHAP) 2016-2017, 2017-2018, AND 2018-2019; PROVIDING FOR AMENDMENT TO THE DISASTER MITIGATION STRATEGY TO INCLUDE UP TO $5,000 FOR TEMPORARY RENTAL, MORTGAGE, UTILITY, AND HOMEOWNER ASSOCIATION PAYMENT ASSISTANCE FOR ELIGIBLE RESIDENTS FINANCIALLY IMPACTED BY THE COVID-19 PANDEMIC, IN THE EVENT THAT ADDITIONAL FUNDS ARE ALLOCATED TO THE CITY UNDER THE STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM; AUTHORIZING THE MAYOR AND CITY MANAGER TO APPROVE ANY AMENDMENTS TO THE LHAP THAT PROVIDES FOR RECEIPT OF FUNDS FROM THE STATE AND NO CHANGE OF TERMS, WITHOUT FURTHER COMMISSION ACTION; PROVIDING FOR EFFECTIVE DATE.
BACKGROUND: The State Housing Initiatives Partnership program (SHIP), serves low- and moderate-income families. Its primary purpose is to make housing affordable. Florida Housing Finance Coalition administers the program in Florida and allocates grants to 67 counties and 52 Community Development Block Grant entitlement cities in the state. Local governments use these funds to create programs that reduce housing costs, keep rent prices low, and assist people with home purchases and repairs.
On March 6, 2019, the City Commission approved an Interlocal Agreement (ILA) with Broward County for Preparation, Implementation, and Administration of the City’s SHIP program for fiscal years 2019-2022. The ILA provided for City input for the establishment of a joint Local Housing Assistance Program (LHAP) and that the City’s program would become part of the LHAP that the County submits to the Florida Housing Finance Corporation.
All of the City of Margate’s SHIP funds are already encumbered for home repair. Broward County’s website, as well as other subrecipient organizations, have listed the City of Margate as currently having available funds for disaster relief in response to the COVID-19 pandemic. At this time, any disaster relief distribution to recipients is coming from County SHIP funds or other agency’s funds, as the City has not been allocated additional SHIP funds for disaster relief assistance that is specific to the COVID-19 pandemic.
The City’s current LHAP allows $1,000 per recipient under the Disaster Mitigation Strategy. The LHAP also provides that the funds may only be used for the purchase of emergency supplies for eligible households to weatherproof and/or secure roofs, doors, and windows of damaged homes.
This resolution provides for a technical revision to the LHAP to provide temporary rent and utility payments for up to 6 months for tenants financially impacted by COVID-19; temporary mortgage, homeowner association (HOA) and utility payments for up to 6 months for homeowners financially impacted by COVID-19, with a maximum payout of $5,000 per eligible household. The City’s LHAP does not have funds allocated for this strategy. If the State allocates funds for disaster relief, the City is required to have this activity already included in the LHAP in order to utilize the funds for the specified uses. The Florida Housing Finance Corporation, which oversees all SHIP programs, has requested that all entities include these additional activities and increase funding allowances, with the expectation that additional SHIP funds will be made available in response to the COVID-19 pandemic.
RECOMMENDATION: For Approval
FISCAL IMPACT: No direct cost to the City. All program costs to be paid from SHIP funds.
CONTACT PERSON: Cale Curtis, City Manager