Tampa’s Affordable Housing Program Review

Tampa’s State Funded Affordable Housing Program Receives Top Score

Wow! The City of Tampa received a score of 100%, the highest score possible, during the annual review of the City’s State Housing Initiative Partnership (SHIP) program. Seltzer Management Group Inc., the State designated monitoring firm, recently completed the annual SHIP program management review and physical inspection of the City’s SHIP program. The three areas of the City’s SHIP program that were reviewed included the examination of records, administrative procedures, and physical inspection of the Tampa homes.

For the three year period that was reviewed the City received over $7.7 million in SHIP funding. The SHIP program is a State funded housing initiative that allows the City to increase the number of affordable housing units available in Tampa.

What exactly is State Housing Initiatives Partnership (SHIP)?

The State Housing Initiatives Partnership (SHIP) Program provides funds are collected from local documentary stamp revenues. Total actual disbursements are dependent upon the amount of documentary stamp collections. Funds are used as incentives to produce and/or preserve affordable home ownership and multifamily rental housing. Jurisdictions must establish a Local Housing Assistance Plan (LHAP) that provides strategies to meet the affordable housing needs of the community.

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, at least 30% of the funds must be reserved for very-low-income households (up to 50% of median income) and an additional 30% of the funds may be reserved for low-income households (up to 80% of median income). The remaining funds may be reserved for moderate-income households (up to120% of median income).

Eligible Activities/Beneficiaries: Funds may be used for acquisition, rehabilitation, down payment assistance, housing repair, foreclosure intervention, new construction and disaster mitigation/recovery. SHIP funds may not be used to assist mobile homes or manufactured housing; however, manufactured buildings with the Department of Community Affairs insignia are permitted. SHIP Funds assist only housing meeting the standards of Chapter 553, Florida Statutes.

Loan/Grant Terms: Loan terms are dependent on the project specifics. Loans can be amortized up to 40 years and may have a simple interest rate of zero percent to four (4) percent. Local governments must provide for recapture of funds in the event that the household receiving assistance ceases to occupy the unit. For rental units, the owner must agree to set aside units for affordable housing for terms specified in the agreement. A Land Use Restrictive agreement is usually executed for the property assisted. Maximum purchase price cannot exceed 95 percent of area median purchase price.