About SHIPFlorida Housing administers the State Housing Initiatives Partnership program (SHIP), which provides funds to local governments as an incentive to create partnerships that produce and preserve affordable homeownership and multifamily housing. The program was designed to serve very low, low and moderate income families.
SHIP funds are distributed on an entitlement basis to all 67 counties and 53 Community Development Block Grant entitlement cities in Florida. In order to participate, local governments must establish a local housing assistance program by ordinance; develop a local housing assistance plan and housing incentive strategy; amend land development regulations or establish local policies to implement the incentive strategies; form partnerships and combine resources in order to reduce housing costs; and ensure that rent or mortgage payments within the targeted areas do not exceed 30 percent of the area median income limits, unless authorized by the mortgage lender.
SHIP dollars awarded to the City may be used to fund emergency repairs, rehabilitation, down payment and closing cost assistance, mortgage buy-downs, matching dollars for federal housing grants and programs, and homeownership counseling, in accordance with its approved Local Housing Assistance Plan (LHAP).
A minimum of 65 percent of the funds must be spent on eligible homeownership activities; a minimum of 75 percent of funds must be spent on eligible construction activities; at least 30 percent of the funds must be reserved for very-low income households (up to 50 percent of the area median income or AMI); an additional 30 percent may be reserved for low income households (up to 80 percent of AMI); and the remaining funds may be reserved for moderate-income households (up to 120 percent of AMI).
SHIP Strategies Synopsis
Purchase Assistance Program
The City of Lauderhill Purchase Assistance Program assists first-time homebuyers by paying a portion of their down payment and closing costs. The program provides subordinate mortgage to eligible applicants to purchase newly constructed and existing single family homes or condominiums. Assistance will be provided to households with incomes in the 50%, 80% and 120% range of the Area Median Income. The applicant must have attended and completed a Homebuyer Education class approved by the U.S. Department of Housing and Urban Development – HUD and the City of Lauderhill.
Minor Home Repair/Weatherization
Provides a ten year (10), deferred, 0% interest payment loan for maintaining owner-occupied housing with priority given to correcting code violations which are health and safety hazards to make home storm-resistant reducing long-term cost relating to maintenance and insurance. Assistance will be to households with incomes up to 120% Area Median Income. All applicants must meet the scheduled application deadline and the individual program documentation requirements to be eligible for the Minor Repair/Weatherization Strategy. Any necessary inspection fees will be taken from the loan amount awarded. All applicants will be income-certified and subject to the following terms:
- The home must be located in the City of Lauderhill
- The appraised value of the home may not exceed the maximum sales price allowable in the SHIP program.
- The home must not be in violation of any housing codes after rehabilitation.
- The maximum amount that may be borrowed is $20,000.
- The applicant must not be delinquent on any debt owed to the City of Lauderhill.
This strategy is designed to facilitate the acquisition of vacant land that will be developed for affordable housing for income eligible households. Acquired land can be pledged at the primary lender as security collateral for a new home. Land acquisition does not permit land banking. Pursuant to Rule 67-37.007, D.A.C., in order to meet the 75% construction requirement for land acquisition, construction of the homes must be completed within 24 months from the close of the applicable State fiscal year.
The City will conduct an evaluation to find the most qualified developer. The loan for the value of the land will be at 0% interest rate. The loan will be recaptured when the property is sold.
Disaster Mitigation and Recovery
SHIP funds may be used to provide emergency repairs to very low, low and moderate income households following a natural disaster as declared by Executive Order, as noted. Funds may be used for items such as, but not limited to, purchase of emergency supplies for eligible households to weatherproof damaged homes, interim repairs to avoid further damage, tree and debris removal required to make the individual housing unit habitable, post disaster assistance with non-insured repairs required to process assistance applications. This strategy will only be implemented in the event of a disaster using any funds that have not been encumbered. Assistance will be to households with incomes in the 50%, 80%, and 120% range of the Area Median Income adjusted for household size.
Emergency Roof Repair
This strategy is designed to provide a one-time deferred payment loan to improve significant roof damage conditions of eligible low-income families. Assistance will be to households with incomes in the 50% and 80% range of the Area Median Income adjusted for household size.
Eligible persons for this program will be selected on a first-come, first-qualified application served basis. Eligibility for the Emergency Roof Repair Program is as follows:
- Limited to owner-occupied households. To be eligible for this program, homeowner must live in the house, have homestead exemption and deed must be in homeowner’s name.
- The beneficiaries of this strategy will be elderly, disabled, Very Low and Low-income families living within the City Limits.
- Household income cannot exceed 80% of median family income. Income guidelines are based on information received from HUD yearly. Applicants must be at or below the current income guidelines.
- Applicants are required to have current Homeowner, Flood and Wind Insurances.
- Hardship applicants, who do not have Homeowner, Flood and Wind Insurance, will be considered on a case-by-case basis.
Code Enforcement Violation Program
The Code Enforcement Violations Program of the City of Lauderhill is designed to provide a one-time deferred payment loan to eliminate health and safety issues. Repairs are limited to corrections of code violations issued by the City of Lauderhill Code Enforcement Division, Building Officials or the Fire Chief for interior and exterior repairs. After repairs have been made, a lien is placed on Owner-Occupied, single-family detached homes properties for ten (10) years. In cases of extreme hardship, on a case-by-case basis, the City may consider payment of a homeowners’ insurance deductible to facilitate the needed repairs. This strategy will only assist Very Low income applicants.
Eligible persons for this program will be selected on a first-come, first-qualified application served basis. Eligibility for the Emergency Repair Program is as follows:
- Limited to owner-occupied households. To be eligible for this program, homeowner must live in the house, have homestead exemption and deed must be in SHIP homeowner’s name.
- The beneficiaries of this strategy will be elderly, disabled and Very Low income families living within the City Limits. (Verification of income and proof of income and proof of home ownership are required for the Emergency Repair program).
- Household income cannot exceed 50% of median family income. Income guidelines are based on information received from HUD yearly. Applicants must be at or below the current income guidelines.
- Applicants are required to have current Homeowner, Flood and Wind Insurances.
- Hardship Applicants, who do not have Homeowner, Flood and Wind Insurance, will be considered on a case-by-case basis.
Maximum Award: Up to $20,000 with the following recapture provisions.
- All properties will be secured by a subordinate mortgage
- Ten (10) year, deferred payment loan with a ten-percent (10%) forgiven yearly with 0% interest.
- The City will agree to subordinate under the following conditions:
- The refinancing of the new loan must have equity equal to or greater than the amount of the financial assistance provided by the City of Lauderhill and no cash out; and
- Clients agree to pay a $200 Subordination fee.
- No payments are required until the property is sold; transferred; or is no longer the primary residence of the homebuyer, within ten years from the date financial assistance was provided by the City of Lauderhill. Payments are pro-rated and applicants required to make payments will do so at 0% interest.
Purchase Price Limits
The sales price or value of new or existing eligible housing units may not exceed 90% of the average area purchase price in the statistical area in Lauderhill. The sales price of new and existing units, which can be lower but not exceed 90% of the median area purchase price established by the Local HFA Numbers (Broward County) of $386,202.