Florida

4) Governance Structure

As we can see above, New Jersey State’s low-income housing delivery system is characterized as very collaborative governance with a leading nonprofit network (the Housing and Community Development Network of New Jersey). The network has over 200 housing nonprofits and advocacy teams in 17 New Jersey counties. Figure 3-3 shows a very collaborative governance structure of low-income housing service in New York.

<Figure 3-3> New York low-income Housing Governance Structure

of Florida's ever-expanding population. The department ensures that new growth complies with the state's vital growth management laws, while also helping established communities revitalize their older or traditional neighborhoods. The Division of Housing and Community Development provides funding to local communities to help improve housing, streets, utilities and public facilities. The division assists with efforts to revitalize underserved communities and encourage economic development for the common good, and to help low-income residents meet the costs of such essential services as home heating and cooling. It also helps ensure that buildings throughout Florida are constructed to uniform standards, by providing technical assistance and training in the Florida Building Code for the benefit of local governments and the construction industry.

2) Major Programs

The Department of Community Affairs administers Florida's Small Cities Community Development Block Grant Program which assists rural areas based on the needs of a community based on the following census data: Low and Moderate Income Population; Number of Persons Below the Poverty Level; and Number of Housing Units with More than One Person Per Room. The program is an excellent opportunity for communities to obtain funds for projects that the community cannot otherwise afford. Further, it provides a means to implement projects that local governments may not have staff to complete. Governments use funding from other sources to make a greater impact in the community. The following communities are eligible to apply for funds: Non-entitlement cities with fewer than 50,000 residents; Counties with fewer than 200,000 residents; Cities that opt out of the urban entitlement program. As shown in Table 3-9, fund for the Florida Small Cities CDBG, ESG, HOME, and HOPWA programs is provided by the U.S. Department of Housing and Urban Development (HUD). For Federal Fiscal Year 2010, the state receives a total of $58,859,853.

<Table 3-9> Florida Small Cities Community Development Block Grant in FY 2010

The Section 108 Loan Guarantee Program is authorized under Section 108 of the Housing and Community Development Act of 1974 (42 USC 5308) as part of the Community Development Block Grant Program. In 1997, the Florida Legislature passed changes to the Florida Small Cities CDBG Program which now allows up to

$160,000,000 in Section 108 Loans to be guaranteed by the state’s CDBG allocation for loans made to small cities and counties on behalf of their needs for economic and community development. The Section 108 Loan Guarantee Program offers local governments a source of financing for economic development, large-scale public facility projects, and public infrastructure. Section 108 Loans are for activities that principally benefit very low-, low- and moderate-income people, assist in the elimination or prevention of slum and blight conditions, and meet other community development needs that have a particular urgency and are of very recent origin.

According to state and federal law, the maximum amount of loan guarantee commitment that any eligible local government may receive may be limited to

$7,000,000 pursuant to 24 CFR 570.705, and the maximum amount of loan guarantee commitments statewide may not exceed an amount equal to five times the amount of the most recent grant received by the Department under the Florida Small Cities CDBG Program (approximately $165,000,000 in loan guarantees at the current allocation level). This level of funding allows the local government to participate in larger projects, avoid referendums for infrastructure financing, compete with larger

local governments for business relocations, and provide smaller businesses the ability to access funds at approximately corporate AAA bond rates.

The Emergency Shelter Grants Program or ESG serves those who are homeless or at risk of homelessness. The Emergency Shelter Grant program total for the 2010 allocation is $6,996,261. Direct formula grants will be provided to 21 units of local government, allocating $4,019,052 to Florida’s largest cities and urban counties. The state of Florida formula allocation of $2,977,209 is based on the population and housing conditions that exist in the balance of counties that do not receive direct formula grants. ESG funds allocated to the state are administered through the state’s Department of Children and Families, and are awarded competitively.

The HOME Investment Partnerships Program (HOME) program encourages public, private and nonprofit partnerships, and strengthens the abilities of the state as well as municipalities and community housing development organizations to design and implement innovative strategies for achieving adequate supplies of affordable housing throughout the state of Florida. HOME funds allocated by Florida Housing provide the necessary financial support to assist various activities aimed at creating long-term affordable, safe, decent, and sanitary housing for very low and low-income persons and households. Florida Housing works with both the public and private sector throughout the state to help meet the needs of affordable housing in rural areas. The state’s HOME program activities will be directed in the areas of acquisition, rehabilitation and new construction of rental and homeownership housing.

Additionally, HOME funds may be used for Tenant Based Rental Assistance to provide rent subsidy and security deposit assistance for very low-to moderate income households.

The HOME Rental program offers first or subordinate mortgage, low-interest rate loans to eligible housing providers for the acquisition/rehabilitation, rehabilitation, new construction, conversion of non-residential units to residential units, and reconstruction

of multifamily housing. The HOME loan may be the primary source of financing or may bridge the gap between the development’s primary financing and the total development costs. At least 15 percent but as much as 25 percent of the annual allocation is set-aside for CHDO developments with the remaining funds being allocated to both CHDO and other developments depending on the ranking. Applicants may request up to 60 percent of the HUD established maximum subsidy limits based on the number of bedrooms per unit and the county in which they are located.

Applicants may request refinancing of a first mortgage when borrowing HOME funds to rehabilitate units if refinancing is necessary to permit or continue affordability and all other requirements as described in HUD Rule 92.206(b) are met. For-profit applicants selected for funding receive a one and a half (1.5%) percent interest rate loan and non-profits receive a zero percent interest rate loan. For applicants who are owned by both for-profit and not for-profit entities, the interest rate will be determined based upon the relative percentage of ownership of the general partner. The minimum term of the HOME loan is 15 years for rehabilitation and 20 years for new construction.

Florida Housing has awarded $21,630,000 for temporary rental assistance for emergency housing in response to the destruction of the 2004 and 2005 hurricanes.

The HOME Tenant-Based Rental Assistance (TBRA) funds were granted to 22 qualifying Public Housing Authorities (PHA) that currently administers the HUD Section 8 Housing Choice Voucher Program. Funding began in 2005 and over

$18,000,000 has already been disbursed to approximately 1,985 qualifying families including 78 families that were displaced as a result of Hurricane Katrina. TBRA will provide decent, safe and sanitary housing to eligible families with preference given to those that have been displaced by the hurricanes. The maximum amount of funding for each PHA is $500,000, although they may request additional funding once the initial $500,000 is committed or expended. Eligible households include those who

have incomes at or below 80 percent of area median income, adjusted for family size, as established by HUD. For each fiscal year, at least 90 percent of the eligible households assisted through HOME TBRA must be at or below 60 percent of area median income. Rental assistance is limited to an initial twelve month period, but in no event will assistance be extended beyond an additional one year.

Florida Housing Finance Corporation’s Homeownership Pool (“HOP”) Program is designed to be a non-competitive and on-going program, with Developers reserving funds for eligible homebuyers to provide purchase assistance on a first-come, first-served basis. The HOP program is available to non-profit and for-profit organizations, Community Housing Development Organizations (CHDOs), counties and eligible municipalities that are recipients of SHIP funding and the United States Department of Agriculture-Rural Development (USDA-RD). Traditionally, American Dream Down payment Initiative (“ADDI”) funds are used in conjunction with the HOP program for eligible first time homebuyers, but in 2010 no ADDI funds were allocated. ADDI funds, if allocated, and HOME funds, both administered through the HOP program, are used to financially support families of low to moderate incomes with down payment and closing costs assistance up to the repayment if the homebuyer ceases to occupy the property as their primary residence during the affordability period, sells or transfer ownership or rents the property. Repayments are re-invested in the HOME program.

Up to $10,000 is available through the Homeownership Assistance Program (HAP) to assist first time homebuyers with down payment and closing costs. HAP loans are 0% interest, non-amortizing second mortgage loans, which means the homebuyer does not make any monthly payments. Instead, the loan is repaid if the homebuyer sells the home, transfers ownership, satisfies or refinances the first mortgage, or ceases to occupy the home. This program targets applicants whose incomes are at or below 100% of the area median income (AMI), adjusted for family size. Up to $5,000 is

available to assist first time homebuyers with down payment and closing costs through the Homeownership Assistance for Moderate Income (HAMI) program. This program enables borrowers with moderate incomes to receive down payment and closing cost assistance. Unlike the HAP, HAMI is an amortized loan that is offered at a low, fixed interest rate with level monthly payments for a 10-year term. First time homebuyers may be eligible for this loan if their incomes exceed the limits of the HAP, but do not exceed the maximum annual income limits for the FTHB program.

The State Apartment Incentive Loan (SAIL) program provides low-interest loans on a competitive basis each year to developers of affordable rental housing. SAIL funds provide gap financing that allows developers to obtain the full financing needed to construct affordable multifamily units. SAIL dollars are available to public entities, and non-profit and for-profit organizations for the construction or substantial rehabilitation of multifamily units. Special consideration is given to properties that target specific demographic groups such as the elderly, the homeless, farm workers and commercial fishing workers. A portion of SAIL funds is set aside to fund the Elderly Housing Community Loan (EHCL) program. This program provides loans of up to $750,000 to make substantial improvements to existing affordable elderly rental housing. The EHCL program generally has one competitive funding cycle each year and the application period is open for a minimum of 45 days. These funds are available for the purpose of making sanitation repairs or improvements required by federal, state or local regulation codes, and for life-safety or security-related improvements.

The State Housing Initiatives Partnership (SHIP) program provides funds to local governments on a population-based formula as an incentive to produce and preserve affordable housing for very low-, low-, and moderate-income families. These funds are derived from the collection of documentary stamp tax revenues, which are deposited into the Local Government Housing Trust Fund. SHIP funds are distributed on an

entitlement basis to all 67 counties and 52 Community Development Block Grant (CDBG) entitlement cities in Florida. The minimum allocation per county is $350,000.

SHIP dollars may be used to fund emergency repairs, new construction, rehabilitation, down payment and closing cost assistance, impact fees, construction and gap financing, mortgage buy-downs, acquisition of property for affordable housing, matching dollars for federal housing grants and programs, and homeownership counseling. Each participating local government may use up to 10% of its SHIP funds for administrative expenses.

The Predevelopment Loan Program (PLP) assists non-profit and community-based organizations, local governments, and public housing authorities with planning, financing and developing affordable housing. Eligible organizations may apply for a three-year loan of up to $750,000 for predevelopment activities, such as rezoning, title searches, legal fees, administrative costs, soil tests, engineering fees, appraisals, feasibility analyses, audit fees, earnest money deposits, insurance fees, commitment fees, administrative costs, marketing expenses, and acquisition expenses. Technical assistance is also provided at no charge.

3) Roles of Nonprofit Organizations

The Florida Housing Coalition, Inc., is a nonprofit, statewide membership organization whose mission is to act as a catalyst to bring together housing advocates and resources so that all Floridians have a quality affordable home and suitable living environment. The Coalition provides professional consultation services through training and technical assistance on affordable housing and related issues; supports community-based partnerships in leveraging resources; and advocates for policies, programs and use of funding resources that maximize the availability and improve the quality of affordable housing in Florida. The Coalition carries out this mission recognizing that affordable housing is an integral part of community revitalization and economic development. The Florida Housing Coalition is based in Tallahassee and has

six other offices throughout Florida. Technical assistance team consists of a highly skilled and geographically dispersed network of professional staff providing technical assistance in all areas of affordable housing planning, finance, and development.

In addition to the Florida Housing Coalition, South Florida Community Development Coalition builds the power of lower income people to achieve justice in marginalized communities, and support and advance the affordable housing, economic development, and community building strategies of 18 nonprofit developers, 8 banks and lenders, and 4 businesses. Nonprofit Housing Roundtable of Central Florida increases the supply of decent affordable housing provided by nonprofit organizations to low and very low-income families through coordination among nonprofits to enhance capabilities, expand funding opportunities, maximize training, and develop new partnerships. Approximately over 200 members (including individuals, public/nonprofits, and business) join the roundtable. Table 3-10 summarizes characteristics of Florida low-income housing services.

<Table 3-10> Characteristics of Florida low-income Housing Service Government

leading agency

The Department of Community Affairs

(The Division of Housing and Community Development) Supporting

agencies Florida Housing Finance Corporation

Major Programs

Florida's Small Cities Community Development Block Grant Program

•

The Section 108 Loan Guarantee Program

•

The Emergency Shelter Grants Program

•

The HOME Investment Partnerships Program

•

The HOME Rental program/ The HOME Tenant-Based Rental Assistance program

•

•Florida Housing Finance Corporation’s Homeownership Pool (“HOP”) Program Homeownership Assistance Program

•

The State Apartment Incentive Loan (SAIL) program

•

The State Housing Initiatives Partnership (SHIP) program

•

The Predevelopment Loan Program

• Leading

Nonprofit Housing

The Florida Housing Coalition, Inc.

•

- South Florida Community Development Coalition - Nonprofit Housing Roundtable of Central Florida

4) Governance Structure

As for the relationships between governmental leading agency and nonprofit housing organizations, not much collaborative partnerships or efforts relationships has been developed. Specifically, regional housing nonprofit organizations were not well coordinated and cooperative. Although the Florida Housing Coalition has made efforts to link other housing nonprofit organizations, unlike New Jersey’s network it appears to have a limited connection with others. Figure 3-4 shows a governance structure of low-income housing service in Florida.

<Figure 3-4> Florida Low-Income Housing Governance Structure