Additional SHIP Topics

Question:
Does Florida’s Open Records law include an exemption for documents associated with individuals receiving SHIP housing assistance?
Answer:
No, SHIP housing files are not exempt from the Florida Open Records law. However, the law provides for a very limited exemption of certain information that may be included in the files of your housing assistance applicants. Chapter 119 of the Florida Statutes outlines what is commonly referred to as the open records law. The law is stated most directly in section 119.07:
“Every person who has custody of a public record shall permit the record to be inspected and examined by any person desiring to do so, at any reasonable time, under reasonable conditions, and under supervision by the custodian of the public record or the custodian's designee. The custodian shall furnish a copy or a certified copy of the record upon payment of the fee… of not more than 15 cents per one-sided copy.”The Florida Statutes also outline a list of exceptions to the open records law. Section (3)(bb)1 of the Florida Statutes outlines several exceptions that are relevant to SHIP housing files: “Medical history records, bank account numbers, credit card numbers, telephone numbers, and information related to health or property insurance furnished by an individual to any agency pursuant to federal, state, or local housing assistance programs are confidential and exempt.” In addition, Section 119.0721 provides an exemption for social security numbers: “Effective October 1, 2002, all social security numbers held by an agency or its agents, employees, or contractors are confidential and exempt.” Despite these exemptions, it is strongly recommended that you check with your legal counsel prior to denying anyone access to a public record.

Question:
A local developer has requested information on all of our qualified applicants for solicitation purposes. Our County Attorney has advised that all our records are to be made available for public review, subject to Florida's open records laws. Please provide guidance.
Answer:
All records, including applicant files, are subject to Florida's open records laws. When an applicant applies for assistance, he should be made aware of this at the time of application. The local jurisdiction may charge a fee for copying, as well as charge for excessive time spent by a city employee who is supervising a person who examines the files. This sometimes acts as a deterrent to reporters or others who wish to use the information for solicitation purposes.

Question:
There are times when I need to add a Doctor’s letter to a SHIP file. For instance, our SHIP Rehabilitation strategy gives priority assistance to applicants that have a disabled household member so we obtain a letter from the applicant’s doctor for certification. Also, when a woman in the applicant’s household is pregnant, I obtain a letter from her doctor to document the unborn child as a household member. Is maintaining this information in a SHIP file, which is covered under Florida’s open record law, a violation of the privacy requirements of HIPAA?
Answer:
HIPAA is the Health Insurance Portability and Accountability Act of 1996. The HIPAA Privacy Rule creates national standards to protect individuals’ medical records and other personal health information. HIPAA includes provisions designed to encourage electronic transactions and also requires new safeguards to protect the security and confidentiality of health information. Health plans, health care clearinghouses, and those health care providers who conduct certain financial and administrative transactions (e.g., enrollment, billing and eligibility verification) electronically are considered covered entities and are required to comply with the provisions of the Privacy Rule. See ww.hhs.gov/news/facts/privacy2007.html for more information. HIPAA does not prohibit housing administrators from requesting and receiving an applicant’s medical information, provided proper authorization is given by the applicant. According to the health and human services’ web site (www.hhs.gov/ocr/hipaa):
"A covered entity is permitted to use or disclose protected health information pursuant to any Authorization that meets the Privacy Rule’s requirements
at 45 CFR 164.508. The Privacy Rule requires that an Authorization contain certain core elements and statements, but does not specify who may draft an Authorization (i.e., it could be drafted by any entity) or dictate any particular format for an Authorization. Thus, a covered entity may disclose protected health information as specified in a valid Authorization that has been created by another covered entity or a third party, such as an insurance company or researcher."Florida has a very broad open records law. Although SHIP housing files are not exempt from this law it does provide an exemption for medical history records and other certain information that may be included in your housing assistance files. Section (3)(bb)1 of
Chapter 119 of the Florida Statutes reads: “Medical history records, bank account numbers, credit card numbers, telephone numbers, and information related to health or property insurance furnished by an individual to any agency pursuant to federal, state, or local housing assistance programs are confidential and exempt.” Prior to requesting medical history records, housing administrators need to ensure that their Authorization for Release of Information and their file maintenance procedures meet all HIPAA requirements. The HIPAA
rules are extremely complex. We strongly recommended that you check with your legal counsel to ensure compliance.

Question:
Disposition of Land: I know that the Florida Statutes include rules on how a city or county sells land that it owns. Does this prevent my city from donating land for the development of affordable housing?
Answer:
Your city is most definitely not prohibited from donating land. Section 125.35 of the Florida
Statutes outlines the way city or county owned land is to be sold: “No sale of any real property shall be made unless notice thereof is published once a week for at least 2 weeks in some newspaper of general circulation published in the county, calling for bids for the purchase of
the real estate so advertised to be sold.” However, Section 125.35 (3) addresses the issue of providing land in any manner other than selling it for the highest price: “the board of county commissioners may by ordinance prescribe disposition standards and procedures to be used by the county in selling and conveying any real or personal property”. With adoption of an ordinance as indicated in this Statute, a local government may outline a procedure for providing land at no-cost or low-cost for the development of affordable housing.
Additional justification for this activity is provided in Section 125.38 of the Florida Statutes. It notes that a local government, “if satisfied that such property is required for (the purposes of promoting community interest and welfare) and is not needed for county purposes, may thereupon convey or lease the same at private sale to the applicant for such price, whether nominal or otherwise, as such board may fix, regardless of the actual value of the property”.

Each city or county may create its own procedure for providing land for affordable housing. This procedure must be clarified and enacted in an ordinance. Manatee County, for example, references the Florida Statutes in a key section of its ordinance: “WHEREAS, from time to time, pursuant to § 125.38, Florida Statutes, the Board of County Commissioners of Manatee County may determine that property owned by the County is not needed for County purposes and could best be used for multi- or single family housing, and is authorized to convey such property to a not-for-profit organization organized for the purpose of promoting community interest and welfare, and is authorized to convey or lease the same at private sale to an applicant for such property at a price, whether nominal or otherwise, as such Board may fix regardless of the actual value of such property to be put to use to serve the community interest and welfare.” Manatee County’s ordinance continues on to explain that nonprofit organizations must complete an application to be considered for donated land, and land may only be used to develop affordable rental housing. Similarly, the ordinance adopted in Hillsborough County indicates that any group receiving donated land must use it “exclusively for charitable, educational, religious, scientific, character building or patriotic uses and purposes that are also without profit, including the erection thereon of buildings and other improvements necessary to carry out the nonprofit purposes and objects of such organizations”.

Question:
An applicant has asked me if the SHIP assistance she receives is considered taxable income that must be reported on her income taxes.
Answer:
The Florida Housing Finance Corporation (FHFC) has indicated that SHIP assistance would not be considered income. This is based on a similar issue regarding the pilot program using Section 8 funds to help pay for a mortgage. The FHFC compliance office concluded that this Section 8 assistance is not income since the Section 8 program placed a deferred payment loan lien on the recipient's house. Similarly, your SHIP funds are provided as a deferred payment loan. In addition, the legal counsel at the FHFC issued a legal opinion memorandum in 1997 indicating that SHIP assistance is not taxable income. “Because SHIP funds are analogous to a gift rather than a quid pro quo, they can be characterized as general welfare or welfare assistance payments. As such, they are not includible in the recipient’s income and local governments need not file Form 1099-C’s”.

Question:
Can SHIP funds be used for emergency shelters and/or transitional living facilities? How do you report units from a transitional housing facility?
Answer:
Emergency shelters and/or transitional living facilities, provided that they conform to the building construction standards in Chapter 553 of the Florida Statutes, are an eligible SHIP expense. For reporting units under a transitional housing strategy, count the number of beds.

Question:
The City is planning to provide SHIP funds to partially finance the construction of a shelter for children in the foster care system. Since these children are “wards of the state,” are there shortcuts available for documenting that they are SHIP income eligible, or do we have to go through the entire regular income qualification procedures?
Answer:
This question has been considered in other SHIP jurisdictions, where SHIP funds have partially
financed the construction of shelters similar to the one you are considering. In Lee County, for example, SHIP funds have helped build a run-away youth shelter and an addiction services shelter. The SHIP administrator developed a “streamlined intake system” for the youth shelter,
which notes that all the children staying there are automatically eligible for SHIP assistance. They are run-away children who are homeless. The HUD definition of homeless individuals recognizes that they are automatically considered low income since they cannot obtain housing due to a
lack of financial resources. The same intake system could be used for the foster children your question addresses. They also are essentially homeless without the resources to independently obtain their own housing. They automatically qualify for your SHIP assistance. There are two main points to remember: First, the Florida Housing Finance Corporation must review and officially accept the alternative income qualification process that you propose before you start using that process. Second, although the children receiving assistance are automatically income eligible, you must require the shelter managers to provide you periodic reports with demographic information about those children who are assisted at the shelter. You will need this information for your annual report. This report does not have to include the children’s names—shelter managers may want this information to remain confidential. Instead the managers may assign a code for each child’s name.

Question:
Our jurisdiction has a barrier removal grant strategy which provides up to $3,000 of modifications for a rental unit. Does the applicant’s current rent have to fall at or below the rent level listed in the rent limits chart for my jurisdiction?
Answer:
Yes, the applicant’s rent must be within the level allowed by the Rent Limits Chart. You
may find that the applicant is eligible based on income and household size; and yet the monthly rent exceeds the allowable rent in the chart. Rent affordability is still a fundamental factor for determining unit eligibility. In such a case, this rental unit is not eligible for SHIP modification assistance. It is important to note that annual monitoring and determination of tenant eligibility is not required for an original loan or grant in the amount of $3,000 or less as stated in Section 420.9075(3)(e). However, in the rental example provided, the total amount may exceed $3,000 if more than one unit was assisted.

Question:

What is the SHIP program guideline regarding serving “illegal residents”?  Is legal status a requirement to receive a benefit under SHIP?  Is the local unit of government required to document this status?

Answer:

The SHIP/HHRP program does not discriminate on the basis of legal alienage. However, illegal aliens are not entitled to program benefits.  Status as a U.S. Citizen or legal resident alien is a requirement.  Pursuant to HUD Handbook 4350.3, chapter 3, subsection H(1) entitled “Required Documentation of Citizenship/Immigration Status” applies. This requirement provides:

1. The owner must obtain the following documentation for each family member regardless of age:

a. From U.S. Citizens, a signed declaration of citizenship.  Owners may require verification of the declaration by requiring presentation of a U.S. birth certificate or U.S. Passport.”

b. From noncitizens 62 years and older, a signed declaration of eligible noncitizen status and proof of age;

c. From non-citizens under the age of 62 claiming eligible statues:

1. A signed declaration of eligible immigration status;

2. A signed consent form; and

3. One of the DHS-approved documents listed in Figure 3-4.

Figure 3-4: Acceptable DHS Documents

• Form I-551, Alien Registration Receipt Card (for permanent resident aliens).
• Form 1-94, Arrival-Departure Record annotated with one of the following:
• “Admitted as a Refugee Pursuant to Section 207”;
• “Section 208” or “Asylum”;
• “Section 243(h)” or “Deportation stayed by Attorney General”; or
• “Paroled Pursuant to Section 212(d)(5) of the INA.”
• Form I-94, Arrival-Departure Record (with no annotation) accompanied by one of the following:
• A final court decision granting asylum (but only if no appeal is taken);
• A letter from an DHS asylum officer granting asylum (if application was filed on or after October 1, 1990) or from an DHS district director
• granting asylum (application filed was before October 1, 1990);
• A court decision granting withholding of deportation; or
• A letter from an asylum officer granting withholding of deportation (if application was filed on or after October 1, 1990).
• Form I-688, Temporary Resident Card annotated “Section 245A” or “Section 210.”
• Form I-668B, Employment Authorization Card annotated “Provision of Law 274a.12(11)” or “Provision of Law 274a.12.”
• A receipt issued by the DHS indicating that an application for issuance of a replacement document in one of the above-listed categories has been made and that the applicant’s entitlement to the document has been verified.
• Form I-151, Alien Registration Receipt Card.
• Other acceptable evidence. If other documents are determined by the DHS to constitute acceptable evidence of eligible immigration status, they will be announced by notice published in the Federal Register.

§ 5.508 Submission of evidence of citizenship, or eligible immigration status.

* * * * *

(b) * * *

(1) For U.S. citizens or U.S. nationals, the evidence consists of a signed declaration of U.S. citizenship or U.S. nationality. The responsible entity may request verification of the declaration by requiring presentation of a United States passport or other appropriate documentation, as specified in HUD guidance.

(2) For noncitizens who are 62 years of age or older or who will be 62 years of age or older and receiving assistance under a Section 214 covered program on September 30, 1996 or applying for assistance on or after that date, the evidence consists of:

(i) A signed declaration of eligible immigration status; and

(ii) Proof of age document.

* * * * *

(h) * * *

(2) Thirty-day extension period. Any extension of time, if granted, shall not exceed thirty (30) days. The additional time provided should be sufficient to allow the individual the time to obtain the evidence needed. The responsible entity’s determination of the length of the extension needed shall be based on

the circumstances of the individual case.

(3) Grant or denial of extension to be in writing. The responsible entity’s decision to grant or deny an extension as provided in paragraph (h)(1) of this section shall be issued to the family by written notice. If the extension is granted, the notice shall specify the extension period granted (which shall not exceed thirty (30) days). If the extension is denied, the notice shall explain the reasons for denial of the extension.

* * * * *

5. Section 5.510 is amended by revising paragraph (b) to read as follows:

§ 5.510 Documents of eligible immigration status.

* * * * *

(b) Acceptable evidence of eligible immigration status. Acceptable evidence of eligible immigration status

shall be the original of a document designated by INS as acceptable evidence of immigration status in one of the six categories mentioned in § 5.506(a) for the specific immigration status claimed by the individual.

6. Section 5.512 is amended by:

a. Revising paragraph (a);

b. Adding new paragraph (b); and

c. Redesignating existing paragraphs (b) through (d) as paragraphs (c) through (e), respectively to read as follows:

§ 5.512 Verification of eligible immigration status.

(a) General. Except as described in paragraph (b) of this section and § 5.514, no individual or family applying for assistance may receive such assistance prior to the verification of the eligibility of at least the individual or one family member. Verification of eligibility consistent with § 5.514 occurs when the

individual or family members have submitted documentation to the responsible entity in accordance with § 5.508.

Question:
Do I pay documentary stamps and intangible taxes on my SHIP second mortgage when I assist a home buyer?
Answer:
Documentary stamps must be paid on SHIP second mortgages. However, intangible taxes do not have to be paid on SHIP second mortgages. The statutory basis for this is outlined in Chapters 199 and 201, F.S. Section 199.183 (1), F.S., addresses the intangible tax. It states that "intangible personal property owned by this state or any of its political subdivisions or municipalities shall be exempt from taxation under this chapter." Regarding SHIP transactions, conversations with the Florida Department of Revenue have confirmed that SHIP funds are the property of the state's municipalities and are considered to be "intangible personal property" discussed in this statute. Therefore, SHIP second (or third) mortgages are exempt from intangible taxation. Section 201.08 (1), F.S., addresses the documentary stamp tax. The State requires that all notes or mortgages be subject to this tax and that the Florida Legislature must explicitly state if a certain type of transaction is exempt from the tax. The Legislature has not provided an exemption for SHIP transactions.


Question:
Please clarify the SHIP Rule language effective in 2008 regarding the training of SHIP staff as defined in 67-37.005 (16).
Answer:
The language in 67-37.005(16) is intended to assure that new or inexperienced staff or staff taking on new responsibilities that are involved in the processing of SHIP applications, eligibility determination or other day to day administration of activities governed under the LHAP to be properly trained through the Catalyst Program. It is not intended to force training on staff that are already trained in the SHIP program nor is it intended to require training of local government staff that work in a tangential manner with the program (finance, auditing, etc.). The responsibility of asking for training will still primarily fall on the local SHIP administrators as it is a benefit to you, but the Florida Housing Finance Corporation will have the ability to require training when they see an issue that needs to be resolved.




Question:
Is there a limit to the number of amendments a local jurisdiction may file and does the time frame for filing an amendment to a LHAP ever expire?
Answer:
No. There is no limit to the number of amendments a local jurisdiction may file. Amendments to an approved LHAP must be adopted by local government resolution and a copy submitted to the FHFA's Review Committee within 21 days after adoption by the local government. A local jurisdiction may amend its LHAP at any time if it is determined that a strategy will not be used, or when adding another strategy. Note: an amendment is not necessary when shifting funds between approved strategies in the LHAP, but a copy of the new Housing Delivery Goals Chart reflecting the changes should be submitted to the FHFA.

Question:
Is there a law requiring water management districts to expedite permitting for affordable housing?
Answer:
Yes. This statutory change, along with many others, was adopted into law after the Florida Legislature passed HB 547, considered to be the Affordable Housing Bill of 2002. It resulted from a recommendation of the Affordable Housing Study Commission. The Commission recognized the important incentive offered by local governments to expedite permits for affordable housing, as required under the SHIP program. The Commission further noted, however, that awaiting approval of water management district permits can delay the development of an affordable housing apartment property or subdivision of homes. Obtaining these permits can indeed be time consuming. Water management districts generally issue permits to address flood protection, wetland protection, and the treatment and quality of storm water runoff. Chapter 373.4141 (2) of the Florida Statutes states that water management districts must approve or deny permits “within 90 days after receipt of the original application, the last item of timely requested additional material, or the applicant's written request to begin processing the permit application.” The statutory change enacted recently adds a simple directive to Chapter 373.4141: “Processing of applications for permits for affordable housing projects shall be expedited to a greater degree than other projects.” This legislative mandate to expedite the permitting process can be understood by comparing it to the SHIP program. SHIP requires local governments to expedite permitting. Chapter 420.9076 (4)(a) states that “the processing of approvals of development orders or permits… for affordable housing projects is expedited to a greater degree than other projects.” Several communities implement this SHIP mandate by ensuring that builders of affordable housing jump to the head of the queue in cases when several builders are waiting for their permit requests to be considered. I am concerned about the SHIP Income Limits Chart provided annually by the Florida Housing Finance Corporation for purposes of determining income eligibility. The income limits for my city are based on the income data for a nearby metropolitan statistical area (MSA). Although the median area incomes may accurately reflect the MSA, these income levels are too high for my city. Most of the households in my area would be considered low or moderate income according to the Income Limits Chart. Your city and the rest of your county are clustered in with the metropolitan statistical area due to criteria established by the U.S. Census. Your community met the Census definition for inclusion in the MSA. According to the Census website (www.census.gov), an MSA has a large population nucleus, together with adjacent communities that have a high degree of economic and social integration with that nucleus. An outlying county in an MSA must have a specified level of commuting to the central counties and also must meet certain standards regarding metropolitan character, such as population density, urban population, and population growth. Before you conclude that the income levels outlined in the SHIP Income Limits Chart are too high, you must first research housing costs in your community. It is the relationship between housing costs and income levels that should determine the income levels of the population you will target and serve. You may discover that even moderate income households experience financial difficulty with housing costs. They may not qualify for enough mortgage money to purchase an average priced home in your community, for example. On the other hand, you may conclude that moderate income households do not experience hardships, once you have considered the relationship between housing costs and income levels. There are communities in the state-especially unincorporated areas and small cities-where housing staff are concerned with how they get bundled in with their "richer" neighboring communities. Remember that The SHIP income limits establish the maximum income for households that can be assisted. If you believe that the income levels provided to you by Florida Housing do not adequately assist you in targeting assistance to those most in need, you can place additional restrictions on your program. Specifically, several communities have written their Local Housing Assistance Plans to indicate that SHIP assistance is only available to Low and Very Low-income households, not those with Moderate Incomes.

Question:
Our community is considering lowering the amount of assistance and the house values in order to target lower income people with our SHIP home buyer strategy. Is this a good idea?
Answer:
Lowering the subsidy amount can actually prevent a very low income or low income person from getting into an affordable and decent house. Check with your lender partners to gauge the profile of the typical low income buyer and learn the usual amount of loan that must be provided. Also, check with your real estate professionals for a listing of lower-value homes. Many times the lower value homes need many repairs and will ultimately result in either the low income household living in a substandard unit or faced with repair bills that increase housing costs. To help assure the long-term affordability of the house, consider providing the extra subsidy to bring the unit up to livable standards.

Question:
We have a person on our advisory committee who could benefit from a contract award. Is this a potential conflict of interest?
Answer:
Depending on the circumstances of the award, it might be. To be safe, you may want that member to recuse himself from the decision making process for the award, and document the files accordingly.

Question:
What are the common elements of a disaster strategy?
Answer:
Creating a disaster strategy is an effective way of quickly responding to community needs in the aftermath of a state or nationally declared disaster. A disaster relief strategy can be a new, stand-alone strategy, or it can be incorporated into an existing homeowner rehabilitation strategy. Similar to a homeowner rehabilitation strategy, eligible repairs may include roof repair, window repair or replacement, and the rest. Some communities also allow activities which are responsive to the immediate health and safety needs of the resident. Tree and debris removal, and materials needed to temporarily halt damage caused by wind and rain entering the unit fall into this category. An often overlooked need is payment of insurance deductibles once the need for repairs has been determine, this is an eligible cost associated with repairing a unit. The SHIP rule also allows for payment of relocation costs; however, rental subsidies are expressly prohibited. It is also permissible to use SHIP funds for disaster mitigation activities. Elevating an eligible unit which is located in a flood plain is one example of permissible activities. Some communities may choose to fund the disaster strategy regardless of whether there are other funds available to assist families in these situations, such as FEMA funds. It is important to remember that SHIP dollars can only be used to assist eligible units for eligible persons, those whose household income falls within the allowable income range, whereas FEMA funds provide assistance regardless of income. The traditional income verification and certification process may be cumbersome and difficult to implement in cases where traditional documentation is destroyed and action must be immediate. Local jurisdictions may wish to submit an alternative income certification process to the FHFC Review Committee for review and approval when creating a new strategy or adding language to an existing homeowner rehabilitation strategy. Creating a selection process which is fair and equitable is another important consideration. All local jurisdictions have an applicant selection process in place for serving eligible persons. If the intent is to address the immediate health and safety needs in the event of a disaster through an existing homeowner rehabilitation strategy, (and there is typically a waiting list for rehabilitation assistance) then the local jurisdiction must specify the circumstances and criteria under which an application for assistance can supersede the established process. Remember that funds must be encumbered and disbursed in accordance with the SHIP Rule, regardless of how a disaster-relief strategy is created. As a practical matter, this means that if funds are budgeted for an under-utilized strategy, where there is no need for disaster-relief, then the funds must be re-allocated to a strategy which is being utilized within the time frames established for that fiscal year. Advertise the disaster strategy at the same time as your other strategies, so the requirement to advertise 30 days in advance of taking applications does not become a hindrance.

Question:
Please provide information on the term “Sub Recipient” that must be used in the Annual Reporting.
Answer:
The term “Sub Recipient” was added to the SHIP Rule in 2008 to identify those organizations or individuals that are contracted by the local government to administer a portion of the SHIP
program and are compensated by SHIP “Administrative Expenditures” funds. The Sub Recipients include those in the traditional administrative set aside. Identifying Sub Recipients on the Annual Report will allow the Florida Housing Finance Corporation to know where all Administrative Expenditure funds are being spent. This requirement is not intended to require you to list your lenders, inspectors or other vendors that are involved in the SHIP process that are compensated through program funds.

Question:
What is the difference between a Sub Recipient and a Sponsor in the SHIP program?
Answer:
A 2008 revision to SHIP Rule 67-37 requires SHIP Administrators to list all sub-recipients or consultants and report the administrative expenditures of these sub-recipients separately from the local government’s administration. The rule defines a “Sub Recipient” as a person or non-state organization contracted by a SHIP eligible local government to provide administration of any portion of the SHIP program. The process of awarding funds therefore, requires housing administrators to understand the difference between a SHIP Sponsor and a Sub Recipient.
• A Sponsor receives a SHIP award under a specific strategy to produce affordable units. The Sponsor is developing affordable units whether they are newly constructed or rehabilitated single family homes or rental units. For example, a nonprofit developer may apply for funding from a Rental Development Strategy in the SHIP local housing assistance plan. The Strategy describes the sponsor selection method used by the local government to award funds. If this Sponsor receives a SHIP award, they agree to build several SHIP-funded rental units possibly in conjunction with Tax Credits or other Florida Housing Finance Corporation programs.
• By contrast, a Sub-recipient administers some portion of the local SHIP program and is paid a SHIP service delivery fee for this activity. The Sub Recipient negotiates a contract with the local jurisdiction to administer some part of the local SHIP program; such as Purchase Assistance or Housing Counseling. For this example, a nonprofit organization may fully implement a SHIP Purchase Assistance Strategy. The sub-recipient’s staff may locate buyers, determine their SHIP eligibility and work with them through the day of purchase.


Question:
What are the responsibilities of the local jurisdiction when a qualified sponsor or sub recipient is utilized for performing eligible SHIP activities?
Answer:
The local jurisdiction has ultimate responsibility in assuring that all program requirements are met. Rule 9I-37.002(15) defines an eligible sponsor as a person or private or public for-profit or not-for-profit entity that applies for an award under the Local Housing Assistance Program for the purpose of providing eligible housing for eligible persons. At the local level, the sponsor might be a local chapter of Habitat for Humanity, a Community Action Agency, a Regional Planning Council, a local non-profit organization, CDC, or CHDO, or a local consultant or developer. A qualified sponsor who receives an award from the local SHIP program is required to contractually commit to the local jurisdiction that it will comply with all SHIP requirements, and it is the local jurisdiction's responsibility to ensure that the sponsor follow all state and local program requirements. If the sponsor provides development services to the local jurisdiction's SHIP program, the sponsor may include all development soft costs (work write-ups, inspections, etc.) in the project costs. If the sponsor is providing additional administrative support for the SHIP program, such as applicant income determinations and certifications and referrals to housing counseling services and lenders, then the local jurisdiction should pass through a portion of its administrative funds (from the 5% or 10% held back for program administration) to the sponsor. Alternatively, a jurisdiction may pay a service delivery fee to the group using program dollars instead of administrative dollars.

The local jurisdiction must have a system in place which ensures that all applicant files are complete and that the income verifications and certifications are in order, that there is adequate documentation to support expenditures for work performed, and that all SHIP funds are encumbered and expended in accordance with the deadlines as stated in the SHIP Rule. While daily monitoring of activities should not be necessary, the sponsor should be required to provide adequate information to the local jurisdiction for completion of the annual report, such as household characteristics, amount of SHIP funds expended, as well as use of any other funds on the assisted unit, and appraised or anticipated value of the unit at completion. The local jurisdiction may provide blank copies of the forms used in the annual report to the sponsor so that the sponsor will know exactly what information is required for reporting.


TOPIC: 2007 Changes to Record Retention Requirements for the SHIP Program
The file/record retention requirements are guided by The General Records Schedule for State and Local Government Agencies. The changes are below:

1. Record series consisting of Housing Applications: Non-participating/inactive (Item #273 of the General Records Schedule
for State and Local Government Agencies-GSI-SL) must be retained as follows:
(a) Record copy – 4 fiscal years provided applicable audits have been released and
(b) Duplicates – retained until obsolete, superseded or administrative value is lost.

2. Record series consisting of records documenting housing finance assistance to low-to moderate-income households (General Records Schedule for State and Local Government agencies-GSI-SL - Item #274 must be retained as follows:
(a) Record copy - 5 fiscal years after funds expended and accounted for and/or satisfaction of loans, whichever is later, provided applicable audits have been released.
(b) Duplicates - retained until obsolete, superseded, or administrative value is lost.



TOPIC: 2007 Changes to HUD Handbook 4350.3
Several revisions have been made to HUD Handbook 4350.3. Given that the HUD handbook is the SHIP guidance set forth by the Florida Housing Finance Corporation these revisions affect the SHIP program. The changes are outlined in the HUD transmittal memo for Handbook No.:4350.3 REV-1., Change- 2 “Occupancy Requirements of Subsidized Multifamily Housing Programs”. The changes became effective on June 29, 2007. Several are highlighted below:

Question:
What is the proper way to dispose of files that have been retained as required?
Answer:
HUD Handbook 4350-3 Chapter 4-22(f) states that the owner must dispose of applicant and tenant files and records in a manner that will prevent any unauthorized access to personal information, e.g., burn, pulverize, shred, etc.

Question:
What is the update for pension funds related to payment of a federal pension fund paid to a former spouse?
Answer:
HUD Handbook 4350.3, Paragraph 5-6 K (4) states that Federal government pension funds paid directly to an applicant’s/tenant’s former spouse pursuant to the terms of a court decree of divorce, annulment, or legal separation are not counted as annual
income. The state court has, in the settlement of the parties’ marital assets, determined the extent to which each party shares in the ownership of the pension. That portion of the pension that is ordered by the court and authorized by the Office of Personnel Management (OPM), to be paid to the applicant’s/tenant’s former spouse is no longer an “asset” of the applicant/tenant and therefore is not counted as income. However, any
pension funds authorized by OPM pursuant to a court order to be paid to the former spouse of a Federal government employee, is counted as “income”. Therefore such amount is only counted as “income” and the term “asset” no longer applies.

Question:
What is an acceptable timeframe in verifying information when all attempts to obtain Verification Forms have been exhausted?
Answer:
HUD Handbook 4350.3 Paragraph 5-13 C (1)(b) states that when third-party verification is delayed and is not received within two weeks of its request, owners may consider original documents submitted by the tenant. However, adherence Paragraph 5-19 E
specifies items to be documented when third-party verification is not available. These items include (1) A written note to the file explaining why third-party verification is not possible; or a copy of the date-stamped original request that was sent to the third
party; (2) Written notes or documentation indicating follow-up efforts to reach the third party to obtain verification; and (3) A written note to the file indicating that the request has been outstanding without a response from the third party.

Question:
An applicant has withdrawn $10,000 from his retirement account and placed the
money in his checking account. Should we now count the $10,000 as income, or is it still an asset?
Answer:
You will count the $10,000 as an asset. All that has happened at this point is that
the applicant has moved the money from the retirement account to his checking account. However, the money is still considered an asset-- just like all money in a checking account is considered an asset.