Affordable Housing Incentive Fund Application

City of Ocala
Affordable Housing Incentive Fund Application Information

Overview
The purpose of the Housing Incentive Fund is to encourage the rehabilitation and new construction of affordable housing in the City of Ocala by offering a housing incentive to offset city-imposed development charges and allowing the relaxation of certain development requirements for developers of new, affordable housing units. These benefits are intended to promote the creation of affordable housing while maintaining quality construction and site design.
Definitions:
Affidavit means a written declaration made under oath attesting to the applicant’s eligibility as low-income household.

Affordability Threshold means the maximum amount (including mortgage principal, interest, taxes, insurance, rent, and utilities) that a dwelling unit can be sold or rented for to be considered affordable housing. This threshold must be no greater than 30 percent of the household income of a moderate-income household earning 120 percent of the median household income for the Ocala MSA.

Affordable Housing means quality housing which is financially accessible to an eligible low to moderate income household. Rental units must be at or below Fair Market Rents for low-income households as established by the United States Department of Housing and Urban Development (HUD). Affordable housing units, whether detached or attached single- or multiple-family units, shall meet minimum housing quality standards for Section 8 housing, as established by HUD.
Affordable Housing Internal Review Board means the Community Development Services Director or designee, Growth Management Director or designee, and the Economic Development Director or designee, shall comprise the internal review board.

Certification means a written and signed statement confirming that the claim for an affordable housing project is true and accurate, and that the development confirms to applicable federal and state regulations.

Housing Incentive Fund refers to funds as may be made available for affordable housing purposes as funded through the City’s annual budget process, with local, state, or federal funds.

Low-Income Household means a household with a total household income at or below 80% of the median household income for the Ocala MSA, adjusted for household size, as set annually by HUD.

Moderate-Income Household means a household with a total household income 81% to 120% of the median household income for the Ocala MSA, adjusted for household size, as set annually by HUD.

Total household income consists of all sources of wage income, such as base pay, overtime, bonuses, and other sources of non-wage income, including disability pensions, public assistance, alimony, and child support payments. Household income includes income from all members of the household over the age of 18.

 

Process
At a pre-application conference, prior to applying for building permits or a site plan, the developer will inform the City’s Growth Management Department of the intent to apply for payment of fees from the affordable housing incentive fund. The developer must submit a conceptual site plan and data including a layout of the project showing buildings, parking, and internal streets, the frontage of the project along city streets, and information on the units including square footage and number of bedrooms. Housing incentive fund credits will be pro-rated based on the percentage of affordable units. Per Section 106-105, Code of Ordnances, City of Ocala, multifamily development projects have a maximum number of affordable units that qualify for housing incentive fund payments. Developers will certify that the proposed affordable housing units will be affordable, as defined in this application, and meet minimum housing standards for participation in this program. A written agreement must be submitted to the Internal Review Board by the developer, or his agent, which states that the set-aside and affordable unit requirements will be met, representing a contract between the City and the applicant.

Application Review. After an application is submitted, the Internal Review Board shall complete their review within fifteen (15) business days of receiving the application. The Internal Review Board will send their decision in writing to the applicant regarding whether the Board will recommend distributing affordable housing incentive funds, and the amount, and may reasonably condition a housing incentive fund distribution. The applicant may request additional conferences with the Board to reach an agreement if necessary. The applicant shall submit a statement in writing that they agree or disagree with the Board’s recommendation no more than thirty (30) days after the Board issues their recommendation. Otherwise, the application shall be deemed withdrawn. The Board’s recommendation, the application, and the applicant’s acceptance letter shall be included as an agenda item at the first available City Council meeting.

Eligible Fees
Fees eligible for payment from the housing incentive fund. Permitting fees must be paid in their entirety by the developer for the percentage of dwelling units not set aside for eligible low-income households. Eligible fees include:
a. Building.
b. Plumbing.
c. Electrical.
d. Mechanical.
e. Gas.
f. Fire review.
g. Site plan review.
h. Site permit.
i. Access city-owned drainage retention areas.
j. Water and sewer impact fees.
k. Water meter charges.
l. Sidewalks.
m. Fire impact fee.
n. Education impact fee.
o. Transportation impact fee.

Funding

Housing Incentive Fund Distributions. Housing incentive fund distributions shall not exceed $20,000 per affordable housing unit. Per Section 106-105, Code of Ordnances, City of Ocala, multifamily development projects have a maximum number of affordable units that qualify for housing incentive fund payments.

City Commitment of payment. City Council may commit payment from the Housing Incentive Fund after application has been made. City Council may waive eligible fees if there are insufficient housing incentive funds. Once approved by City Council, all properly documented eligible fees will be processed for reimbursement by the City department managing the project (Community Development Services or Growth Management).

Affordability Period

Prior to issuance of a certificate of occupancy for any affordable housing unit within any development under this program, the proposed occupant of the unit must submit documentation and complete and sign a Letter of Certification, as provided by the City, attesting to qualifications as an eligible low-income household. The City will place a lien on the properties at the time of transfer to the homeowner to ensure that the units remain occupied by an eligible low-income household. The terms for the lien are outlined below.

• Housing rehabilitation, new Single family and duplex will be required to remain affordable for a period of ten (10) years. The value of the lien will be reduced by 10% of the total original lien value each year that the unit is occupied by a low-income household until the lien is released at the end of the tenth year.

• New multifamily residential units will be required to remain affordable for a period of 20 years from the issuance of the certificate of occupancy. The value of the lien will be reduced 5 percent each year until the lien is released at the end of the twentieth year.

If the unit is sold, leased, transferred, or rented to an ineligible household during that period, the City may require repayment of the remaining lien amount for all fees paid out of the affordable housing incentive fund or waived by City Council.
City Contacts

For further information contact:
James Haynes, Director, Community Development Services, at jhaynes@ocalafl.gov or 352-629-8312 for single family projects or Aubrey Hale, Planning Director at ahale@ocalafl.gov or 352-629-8550 for multi-family projects.

Income restrictions on project (indicate the approximate number of units meeting each Area Median Income (AMI) category:

Project Proposal

All applicants must submit a Project Proposal, providing the following information:

A. Project Description – Provide a description of the proposed project to include project type and location, including legal description of the property and the population(s) to be served.

B. Need - Explain why this site was chosen and how it helps the City to expand affordable housing opportunities where most needed? Describe the neighborhood and surrounding community. Provide a map indicating project location.

C. Project Readiness – Provide evidence of organizational experience and capacity to manage the project, pursue and acquire land, site control, required zoning variance and permitting (if applicable), and financial commitments for the project.

D. Site - Identify any existing buildings on the proposed site, noting any that are currently occupied. Describe the planned demolition of any buildings on the site.

E. Prior Activities - Provide a summary of similar activities completed by the organization and project team.

F. Project Budget – Provide a detailed description of the proposed project budget showing sources and amounts of additional funding.

G. Project Schedule – Indicate the proposed project schedule, including pre-development, anticipated pursuit and acquisition timeline (if applicable), site control, zoning approval, financing and construction milestones to project completion.

Please upload your Project Proposal to your eTRAKIT permit application under the Affordable Housing section.