C7F - Allocate Ship Funds for Programs

Resolutions - C7 F

COMMISSION MEMORANDUM

RECOMMENDATION

The Administration recommends approving the Resolution.

BACKGROUND/HISTORY

The State Housing Initiatives Partnership (SHIP) Program, administered through the Florida Housing Finance Corporation (FHFC), was established in 1992 by the William E. Sadowski Affordable Housing Act to stimulate the production of affordable housing statewide. SHIP Program funds are derived from documentary stamp levies on real estate transactions and held in the SHIP Program Trust Fund. Annually, FHFC allocates SHIP program funds among participating jurisdictions on a formula basis. SHIP program funds serve to increase access to affordable housing for income-eligible participants.

Entitlement communities receiving SHIP funds must produce and file a Local Housing Assistance Plan (LHAP), which governs each community’s use of SHIP funds. On March 19, 2025, the Mayor and City Commission approved the FY 2025-2028 LHAP via Resolution 2025-33563. The City’s 2025-2028 Local Housing Assistance Plan determines the housing activities that can be funded with all funding allocations. On August 7, 2025, the FHFC notified the Administration of the FY 25/26 appropriation.

The SHIP Program is governed by Florida Statute 420.9075. There are several programmatic set- asides that must be met with each funding allocation:

• · At least 65 percent of the funds must be reserved for homeownership for eligible persons; · At least 75 percent of the funds must be reserved for construction, rehabilitation, or emergency repair of affordable, eligible housing; · At least 30 percent of the funds deposited into the local housing assistance trust fund must be reserved for awards to very-low-income persons (up to 50 percent area median income (AMI)); · At least an additional 30 percent of the funds deposited into the local housing assistance trust fund must be reserved for awards to low-income persons (up to 80 percent AMI); · A minimum of 20 percent of the SHIP allocation must be used to serve persons with special

needs as defined in 420.0004 Florida Statutes; and · Up to 25 percent of allocation can be reserved for rental assistance or development.

Using a population-based formula, SHIP funds are allocated on an entitlement basis to all 67 counties and 55 Community Development Block Grant entitlement cities in Florida. On June 24, 2024, the Florida Housing Finance Corporation (FHFC) announced that $174,000,000 has been appropriated for the SHIP program for the 2025-2026 state fiscal year. The City has been allocated $371,251.00. These funds must be encumbered by June 30, 2027, and fully expended by June 30, 2028.

Wherever possible, the City continues to leverage available resources by coordinating local, state, and federal funding streams—such as SHIP, HOME, and HOME-ARP—to extend the reach and effectiveness of its housing programs. Through thoughtful layering of funding, partnerships with community organizations, and strategic program design, the Administration ensures that limited dollars go further in addressing the diverse and growing housing needs of the community.

ANALYSIS

Currently, a total of $530,000 in funding from FY 2022–2023, FY 2023–2024, and FY 2024–2025 has been encumbered to support nine (9) eligible applicants in the First-Time Homebuyers Program and two (2) applicants in the Homeowner Rehabilitation Program, with $530,000 and $140,000 allocated respectively.

The funding allocation for FY 2025–2026 totals $371,251.00 and is distributed as follows: • $289,126.00 to the First-Time Homebuyer Program and Homeowner Rehabilitation Program, • $45,000.00 to the Rental Assistance Program, and • $37,125.00 to SHIP Program administrative costs.

This FY 2025–2026 funding is projected to assist: • Five (5) households through the First-Time Homebuyer Program, • One (1) household through the Homeowner Rehabilitation Program, and • A minimum of nine (9) households through the Rental Assistance Program.

The Administration reviews applications for first-time homebuyer and homeowner rehabilitation programs on a first come, first qualified basis. According to available funding sources, it determines the award amount based on need and income level. The HOME Program can only assist households earning up to 80% AMI with up to $40,000, while the SHIP Program can help households earning up to 120% AMI. Income-eligible households may receive between $40,000 to $150,000 in down payment assistance, depending on their household income and contingent upon funding availability. Funds are provided to eligible residents as a deferred forgivable loan secured by a lien and restrictive covenant on the property. If a homeowner sells, rents, or refinances his/her property or the property is no longer the primary residence prior to the 15-year affordability period, he/she must repay the City the value of the assistance as defined in the City’s restrictive covenant, promissory note, program agreement, and mortgage agreement.

The Administration continues to work with prospective buyers and homeowners to assess their income qualification and program eligibility. Once a household is approved, funds are encumbered for a minimum of 90 days, and an extension can be provided if the applicant remains income eligible. In the past five (5) years, the Administration has recommended funding allocations for down payment assistance with rehabilitation costs for first-time homebuyers, homeowner rehabilitation assistance, and the rehabilitation of multi-family rental housing projects. However, funding available for rental assistance programs in the community has significantly dwindled. At the same time, the demand for rental assistance remains high, as demonstrated by the City’s current waitlist. The need for affordable rental housing and supportive services continues to outpace available resources. In response, the Administration recommends funding rental assistance

activities to help meet this ongoing need.

To address the varying needs of low- and moderate-income residents, the City will strategically utilize both HOME Tenant-Based Rental Assistance (TBRA) funding and SHIP resources. HOME TBRA funds will be targeted to assist households earning at or below 60% of the Area Median Income (AMI), providing essential rental support to the community’s most economically vulnerable residents. Meanwhile, SHIP funds will support households with incomes between 80% and 120% of AMI with up to $5,000 in rental assistance—helping moderate-income families who may not qualify for other forms of assistance but still face significant housing cost burdens. By aligning these funding sources based on income eligibility, the City can serve a broader range of residents while ensuring compliance with program requirements and maximizing impact. Additionally, HOME-ARP (Home Investment Partnerships – American Rescue Plan) funds are available for application fee reimbursement to households earning at or below 80 percent AMI.

The City remains committed to maximizing the impact of all available housing resources. Wherever possible, the administration actively leverages local, state, and federal funding streams—such as SHIP, HOME, and ARP funds—to extend the reach of its housing programs to the highest number of eligible residents. By coordinating funding sources, layering subsidies, and partnering with community organizations, the City ensures that limited dollars go further in addressing the diverse housing needs of the community.

FISCAL IMPACT STATEMENT

$371,251 FY SHIP FY 25-26

Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY)

If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/

FINANCIAL INFORMATION

152-0530-000349-00-404-534-00-00-00-57210

CONCLUSION

The Administration recommends approval of the FY 2025-2026 SHIP funding allocation.

SUPPORTING SURVEY DATA The Mayor and City Commission identified the need for workforce and affordable housing as a key objective in the City’s 2019 Strategic Plan Through the Lens of Resilience. The City’s 2040 Comprehensive Plan prioritizes affordable housing, with the express goal “to encourage redevelopment that provides workforce and affordable housing” within the City.”

Applicable Area

Citywide

Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No

If so, specify the name of lobbyist(s) and principal(s):

Department

Housing and Community Services

Sponsor(s)

Co-sponsor(s)

Condensed Title

Approve Allocation of FY 2025-2026 SHIP Funds. HCS

Previous Action (For City Clerk Use Only)