CITY OF TITUSVILLE NEIGHBORHOOD STABILIZATION PROGRAM HOUSING ASSISTANCE PLAN

CITY OF TITUSVILLE NEIGHBORHOOD STABILIZATION PROGRAM HOUSING ASSISTANCE PLAN -1-

CITY OF TITUSVILLE NEIGHBORHOOD STABILIZATION PROGRAM HOUSING ASSISTANCE PLAN TABLE OF CONTENTS Title Page PROGRAM DESCRIPTION 1. Purpose of Program 3 2. Definitions 4 3. Program Standards and Governances 6 NSP HOUSING ASSISTANCE STRATEGIES 1. Housing Acquisition/Rehabilitation of Homes For Sale To Individuals And Families With Incomes Less Than 120 Percent of AMI 10 1(a) Housing Acquisition/Rehabilitation Of Homes For Sale To Individuals And Families With Incomes Less Than 50 Percent of AMI 12 2. Establishing Land Banks 14 3. Demolition and Clearance/Housing Redevelopment 17 4. Housing Acquisition/Rehabilitation of Homes For Lease To Individuals And Families With Incomes Less Than 120 Percent of Area Median Income 19 II. NSPHAP Incentive Strategies 21 EXHIBITS 23 A. Policy and Procedure Guidelines For The Housing Rehabilitation Programs B. First-Time Homebuyer Program Policy and Procedures - 2 -

Purpose of Program The national foreclosure crisis has impacted families and communities as well as entire cities and states which are struggling to manage the abandoned and vacant properties resulting from foreclosure and subprime mortgages. These vacant and abandoned properties threaten the value of homeowners, invite crime, and discourage further investment. Foreclosures are having a multifaceted negative impact on communities and threaten to undermine strides made by local governments that have increased homeownership, lowered crime, and made communities healthy places to live. In addition, Florida s supply of affordable housing is diminishing and assistance to expand the supply must be provided in a way that is more cost effective. The lack of affordable housing is a significant hardship for many families, often preventing them from meeting their other basic needs. The Neighborhood Stabilization Program will provide emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. The Neighborhood Stabilization Program (NSP) provides grants to purchase foreclosed and abandoned homes and to rehabilitate, resell, lease, or redevelop these homes in order to stabilize neighborhoods and stem the decline of house values of neighboring homes. NSP grantees must use at least 25 percent of the funds appropriated for the purchase and redevelopment of abandoned and foreclosed homes or residential properties that will be used to house individuals or families whose incomes do not exceed 50 percent of the area median income. In addition, all activities funded by NSP must benefit low and moderate income persons whose income does not exceed 120 percent of area median income. DEFINITIONS - 3 -

Abandon: (as defined by NSP) a home is abandoned when mortgage or tax foreclosure proceedings have been initiated for that property, no mortgage or tax payments have been made by the property owner for a least 90 days, and the property has been vacant for at least 90 days. Acquisition: (as defined by NSP) purchase of abandoned and foreclosed homes. Affordable: monthly mortgage payments, insurance, property taxes, utilities, and homeowner s association fees, where applicable, do not exceed thirty (30) percent of that amount which represents the percentage of the median income for Titusville area. Affordable Rents: is defined as the Fair Market Rents (FMR) as published annually by HUD for the sub-grantees. Area Median Income: the point at which half the households in an area make less and half make more. Blighted Structures: a structure in which there is substantial deterioration in which conditions are leading to economic distress or endangerment of life, the local government jurisdiction agrees by ordinance that the structure is blighted, and in which one or more of the following factors are present: (a) Unsanitary or unsafe conditions; (b) Deterioration of site or other improvement (c) Faulty lot layout in relation to size, adequacy, accessibility, or usefulness. HUD has taken the position that any type of structure that is blighted may be demolished with NSP funds. This means that commercial, industrial or other types of structures may be demolished in addition to homes and residential structures. CDBG: The Community Development Block Grant program funded by the U.S. Department of Housing and Urban Development (HUD). Demolition: For blighted structures. HERA: Housing And Economic Recovery Act HOME: The Home Investment Partnership program funded by the U. S. Department of Housing and Urban Development (HUD). HOMES: (as defined by NSP) HUD interprets homes as any type of permanent residential dwelling unit, including detached single family structures, townhouses, condominium units, multifamily rental apartments (covering the entire property), and manufactured homes where treated under state law as real estate (not as personal property). Foreclosed: (as defined by NSP) a property has been foreclosed upon at the point that, under state or local law, the mortgage or tax foreclosure is complete. HUD generally will not consider a foreclosure to be complete until after the title for the property has been transferred from the former homeowner under some type of foreclosure proceeding or transfer in lieu of foreclosure, in accordance with state or local law. Land Banks: (as defined by NSP) (FOR HOMES THAT HAVE BEEN FORECLOSED UPON) This terminology limits land banking to foreclosed upon homes as defined by NSP. The absence of a reference in this section to residential properties means that vacant land may NOT be acquired through land banks. However, it is permissible for acquired homes to be subsequently demolished and remain in the land bank. - 4 -

Very Low-Income: Families/persons whose annual income is 31% - 50% of the median income for the Titusville SMSA. Low- Income: Families/persons whose annual earnings are 51% - 80% of the median family income for the Titusville SMSA. Moderate-Income: Families/persons whose annual earnings are 81%-120% of the median family income for the Titusville SMSA. Neighborhood Services Department: A Department that is responsible for the administration of all federal, state and local funds that are designated for the City for housing and community development activities. Neighborhood Stabilization Program: The Neighborhood Stabilization Program (NSP) provides grants to every state and certain local communities to purchase foreclosed or abandoned homes and to rehabilitate, resell, or redevelop these homes in order to stabilize neighborhoods and stem the decline of house values of neighboring homes. The program is authorized under Title III of the Housing and Economic Recovery Act of 2008. Redevelopment: (as defined by NSP) for demolished or vacant properties This eligible use allows communities to address the broadest range of property types. Because the legislation does not limit this use to homes and/or residential properties, HUD will permit grantees to acquire and redevelop ANY property type. This includes commercial and industrial property in addition to all types of residential property. Note - that property acquired under Redevelopment need not be abandoned or foreclosed upon. However, it MUST be vacant. Vacant properties includes both vacant land and properties with vacant structures on the land. Rehabilitation: The repair and improvement of a structure so that it meets local housing codes and HUD s Housing Quality Standards. Residential Properties: (as defined by NSP) includes HUD interpretation of homes plus vacant land that is currently designated for residential use, e.g. through zoning. Title III Section 2301 (f) (3) (A) - Housing for individuals or families whose incomes do not exceed 50% of area median income: for purchase and redevelopment of abandoned or foreclosed upon homes and residential properties: - HERA requires that grantees allocate 25% of their NSP funds for housing that serves lower income persons. Note that this is limited to abandoned or foreclosed upon homes or residential properties. HUD takes the position that this section refers to permanent housing; thus, such uses as homeless shelters (transitional) cannot count toward the 25% requirement. PROGRAM STANDARDS AND GOVERNANCE Governance: 9BER09-1 Community Development Block Grant Neighborhood Stabilization Program (NSP) Funding. The objective of the emergency rule is to establish administrative procedures for implementing and managing NSP funded projects in accordance with Public Law 110-289 and 24 CDF Part 570. The - 5 -

emergency rule applies to all State-Funded NSP grant recipients, whether Urban Entitlement or participants of the Florida Small Cities CDBG Program, (2) In order to expedite recovery measures, all portions of Rule Chapter 9B-43, F.A.C., are waived by the emergency rule, except the following: Rule 9B-43.0051 (2) (Lead Based Paint), (3) (Rehabilitation Standards), and (8) (Procurement) (selected portions of Grant Administration and Project Implementation). Except as described in the Federal Register Notice (Vol. 73, No. 194), all statutory and regulatory provisions governing the Community Development Block Grant (CDBG) program for states, including 24 CFR part 570 subpart I, for CDBG entitlement communities, including those at 24 CDF part 570 subparts A,C,D,J,K and O, and applicable program guidance, shall apply to the use of NSP funds. Citizen Participation and Comment: The City of Titusville is in full compliance and following a detailed citizen participation plan that satisfies the requirements of Sections 24 CFR 91.105 or 91.115, as modified by NSP requirements. The City of Titusville held a Public Hearing on March 17, 2009 and notification was advertised in the local newspaper and posted at City Hall and the Harry T. Moore Center located in the South Street Target Area on March 12, 2009 providing the mandatory (5) day notification. Public comments were solicited through the local newspaper by advertising the available viewing of the Neighborhood Stabilization Program Housing Assistance Plan and the Notice of Funding Availability. Advertising and Affirmative Marketing; Minority Outreach: Advertising: The City will advertise the notice of funding availability for affordable housing (for sale or rent) in a newspaper of general circulation and periodicals serving ethnic and diverse neighborhoods, at least 30 days before the beginning of the application period. The notice will include information as to where individuals can obtain an application, if applicable; and the dates in which the applications must be returned, if applicable. Affirmative Marketing: The City has partnered with Brevard County and has contracted with the Fair Housing Continuum, Inc. to provide fair housing awareness through a media campaign that provides educational information and advertisement to citizens of Titusville through newspaper, magazine, television, radio and signage. The City advertises an education video on fair housing on local cable television and displays the HUD, the City s Neighborhood Services Department and the Fair Housing continuum, Inc. phone numbers to receive and process any complaints of housing discrimination. Citizens with housing issues are referred to Central Florida Legal Services, the Titusville Housing Authority and Brevard County Court Alternatives. Minority Outreach: The City of Titusville complies with Section 85.36(e) to assure that minority business enterprises and women business enterprises are used when possible in the procurement of property and services. - 6 -

Continue Affordability For NSP Assisted Housing: The City will ensure, to the maximum extent practicable and for the longest feasible term, that the sale, rental, or redevelopment of abandoned and foreclosed-upon homes and residential properties under NSP remain affordable to individuals or families whose incomes do not exceed 120 percent of area median income or, for units originally assisted with funds under the requirements of section 2301(f)(3)(A)(ii) of HERA, remain affordable to individuals and families whose incomes do not exceed 50 percent of area median income. The City will ensure long-term affordability by requiring that all NSP assisted housing have a Deed Restriction (if resale) or Mortgage (if recapture) recorded on the property. The City complies with the minimum affordability requirements established in 24 CFR 92.252(e) and 24 CFR 92.254(a)(4) for the HOME Investment Partnerships (HOME) as specified below, beginning after project completion. The periods of affordability applicable to NSP homebuyer projects are as follows: Under $15,000 Between $15,000 to $40,000 Over $40,000 New Housing Construction 5 years 10 years 15 years 20 years While these are minimum requirements, the local government may choose to implement more stringent affordability requirements than the minimum listed here to ensure that the properties remain affordable for as long as possible. Discrimination: The City complies with the provisions of 24 CFR 570.602, Section 109 of the Act, where no person in the United States shall on the grounds of race, color, national origin, religion, or sex (including disability under Section 504) be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance made available pursuant to the Act. The policies and procedures necessary to ensure enforcement of section 109 are codified in 24 CFR part 6. Homeownership Counseling: All NSP assisted homebuyer must receive at least eight (8) hours of homebuyer counseling from a HUD-approved housing counseling agency prior to obtaining a mortgage loan. The City will partner with local HUD-approved housing counselors or with a designated CHDO. Income Limits: 24 CFR 570.3(1)(i) Rental Housing: The Income of each tenant will be determined at the time of occupancy in accordance with 24 CFR 570.3(1)(i) using the definition of annual income as defined by Section 8 Housing Assistance Payments Program to ensure income requirements of NSP are being complied with. Owner-Occupied Housing: The income of each owner occupant assisted with NSP funds will be determined at the time of purchase in accordance with 24 CFR 570.3(1)(i) using the annual income as - 7 -

defined by the Section 8 Housing Assistance Payments Program to ensure income requirements of NSP are being complied with. Residential properties purchased for occupants with NSP funds must be the primary residence of the beneficiary. Monitoring: The Neighborhood Services Department will utilize the monitoring policies and procedures outlined in its 2008 Community Development Block Grant and HOME Grant Action Plan to ensure that all contracts funded under the NSP allocation are carried out in accordance with federal and state laws, rules, and regulations. Performance Measures: All activities funded with State NSP funds will meet one or more of the following performance measures for the income levels of household that are 50 percent of area median income and below, 51-80 percent, and 81-120 percent: Units of housing to be acquired, Units of housing to be rehabilitated, Units of housing to be sold, Units of housing to be rented, or Parcel(s) to be acquired. Program Income: All program income earned as a result of activities funded under the NSP grant program will be returned to the state. All program income generated will be reported through the Neighborhood Services Department and will comply with the requirements set out in 24 CFR 570.489(e)(3) and the Federal Register Notice. Any program income received on or after July 30, 2013 will be remitted to the state to be returned to HUD. Tenure of Beneficiaries: For homes that are developed as rental property the tenure is expected to be long term, without planned limits on tenancy. For homes that are developed for the purposes of being sold to low, moderate and middle income individuals or families, the tenure shall be no less than the affordability period established for the property. Welfare Transition Program: Should an eligible sponsor be used, the city has developed a qualification system and selection criteria for applications for Awards to eligible sponsors, which includes a description that demonstrates how eligible sponsors employ personnel from the WAGES and Workforce Development Initiatives programs and will be given preference in the selection process. - 8 -

STRATEGIES 1. Name of the Strategy: HOUSING ACQUISTION/REHABILITATION OF HOMES FOR SALE TO INDIVIDUALS AND FAMILIES WITH INCOMES LESS THAN 120 PERCENT OF AMI a. Summary of the Strategy: - 9 -

The purpose of this NSP strategy is to stabilize neighborhoods of greatest need by providing a means for the acquisition, rehabilitation, renovation, and subsequent provision of homes and other foreclosed or abandoned residential properties to individuals and families whose income does not exceed 120 percent of the area median income. The minimum purchase discount for an individual property will be at least 5 percent. The average purchase discount for all properties purchased with NSP funds shall be at least 15 percent. b. Reference Regulation: NSP-Section 2301(c)(3)B Purchase and rehabilitate residential properties that have been abandoned or foreclosed in order to sell the homes to qualified individuals or families. 24 CFR 570.201(a) Acquisition 24 CFR 570.201(e) Public Services for housing counseling 24 CFR 570.201(n) - Homeownership Assistance 24 CFR 570.202(a) Rehabilitation 24 CFR 570.201(n) Homeownership Assistance 24 CFR 570.201(o) - Counseling c. Target Areas: d. Terms: South Street and Indian River City Target Areas Terms of Payment, Recapture and Default. Include terms of recapture in the event of default (failure to make required payments on a loan secured by a first mortgage which leads to foreclosure and/or loss of property ownership). All assistance will be given in the form of a Deferred Payment Loan (DPL). The DPL is at a zero percent interest forgivable at a rate based upon the amount of assistance as follows: Assistance of more than $5,000, but no greater than $10,500, shall require a three (3) year lien. Assistance of more than $10,500, but no greater than $25,000, shall require a five (5) year lien, Assistance of more than $25,000, but no greater than $35,000, shall require a ten (10) year lien, Assistance of more than $35,000 shall require a fifteen (15) year lien, Assistance for new construction shall require a twenty (20) year lien. No payments are due until the property is sold. All properties are subject to recapture of funds through a recorded lien placed on the property. Funds expended on the property are payable in full to the City and returned to the state. For the purpose of the Agreements/DPL between the City and the Homeowner sold shall mean the property is sold, title transferred, Agreement of Deed executed, or the owner no longer resides at the property as their principal residence. - 10 -

Principal residence is defined as the dwelling where the mortgagor maintains his or her permanent place of abode, and typically spends the majority of the calendar year. A person may have only one principal residence. The appraised value of the single-family unit assisted under this program shall not exceed 90% of the median area purchase price in the Melbourne-Titusville-Palm Bay MSA and the maximum sales price allowed in the HUD program. e. Recipient Selection Criteria: The beneficiary shall have a household income at or below 120% of the area median-income adjusted for household size, and shall meet all eligibility requirements of the CDBG, HOME, NSP program. An income-eligible household shall be assisted on a first-come, first-ready basis. f. Sponsor Selection Criteria: The City will solicit organizations/partners for participation in the NSP program through a Request For Participation (RFP) process or partner with a designated CHDO. Applicants will be evaluated and awarded based upon the following criteria: Project Location-preference will be given to units provided in the South Street and/or Indian River City Target Areas and/or other areas of greatest needs; financial strength of developer; capacity of the organization; features of the proposed development; marketing plan for the proposed project; site control; affordability of the development; leveraging; timeline for development; previous similar work experience; proposed sales price; and whether or not personnel from the WAGES or Workforce Development Program will be employed; and have five (5) years experience in housing development, homeownership, and/or rental property management. g. Income Limits: All properties will be sold to individuals and families with incomes at or below 120 percent of area median income. The income of each owner occupant will be determined at the time of purchase in accordance with 24 CFR 570.3. h. Additional Information: Eligible costs may include, but are not limited to, labor, materials, supplies, permits, lead paint assessment, abatement and clearance, barrier removal, energy efficiency measures, asbestos removal, and program delivery. Rehabilitation projects involving one or more units in a multiunit building owned as a condominium, will be limited to the particular unit(s) and will not involve rehabilitation of portions of the property that are held in common ownership. i. Homeownership Standards: See Exhibit B j. Rehabilitation Standards: - 11 -

See Exhibit A k. Florida Building Code: All housing acquired or developed through this program must meet all local building codes (including the Standard Southern Building Code) and ordinances pertaining to providing housing that is decent, safe, sanitary, and fit for habitation in accordance with the City of Titusville s Policy And Procedure Guidelines For The Housing Rehabilitation Programs. See Exhibit A. 1(a). Name of the Strategy: HOUSING ACQUISTION/REHABILITATION OF HOMES FOR SALE TO INDIVIDUALS AND FAMILIES WITH INCOMES LESS THAN 50 PERCENT OF AMI a. Summary of the Strategy: The purpose of this NSP strategy is to stabilize neighborhoods of greatest need by providing a means for the acquisition, rehabilitation, renovation, and subsequent provision of homes and other foreclosed or abandoned residential properties to individuals and families whose income does not exceed 50 percent of the area median income. The minimum purchase discount for an individual property will be at least 5 percent. The average purchase discount for all properties purchased with NSP funds shall be at least 15 percent. b. Reference Regulation: NSP-Section 2301(c)(3)B Purchase and rehabilitate residential properties that have been abandoned or foreclosed in order to sell the homes to qualified individuals or families. 24 CFR 570.201(a) Acquisition 24 CFR 570.201(e) Public Services for housing counseling 24 CFR 570.201(n) - Homeownership Assistance 24 CFR 570.202(a) Rehabilitation 24 CFR 570.201(n) Homeownership Assistance 24 CFR 570.201(o) - Counseling c. Target Areas: d. Terms: South Street and Indian River City Target Areas Terms of Payment, Recapture and Default. Include terms of recapture in the event of default (failure to make required payments on a loan secured by a first mortgage which leads to - 12 -

foreclosure and/or loss of property ownership). All assistance will be given in the form of a Deferred Payment Loan (DPL). The DPL is at a zero percent interest forgivable at a rate based upon the amount of assistance as follows: Assistance of more than $5,000, but no greater than $10,500, shall require a three (3) year lien. Assistance of more than $10,500, but no greater than $25,000, shall require a five (5) year lien, Assistance of more than $25,000, but no greater than $35,000, shall require a ten (10) year lien, Assistance of more than $35,000 shall require a fifteen (15) year lien, Assistance for new construction shall require a twenty (20) year lien. No payments are due until the property is sold. All properties are subject to recapture of funds through a recorded lien placed on the property. Funds expended on the property are payable in full to the City and returned to the state. For the purpose of the Agreements/DPL between the City and the Homeowner sold shall mean the property is sold, title transferred, Agreement of Deed executed, or the owner no longer resides at the property as their principal residence. Principal residence is defined as the dwelling where the mortgagor maintains his or her permanent place of abode, and typically spends the majority of the calendar year. A person may have only one principal residence. The appraised value of the single-family unit assisted under this program shall not exceed 90% of the median area purchase price in the Melbourne-Titusville-Palm Bay MSA and the maximum sales price allowed in the HUD program. e. Recipient Selection Criteria: The beneficiary shall have a household income at or below 120% of the area median-income adjusted for household size, and shall meet all eligibility requirements of the CDBG, HOME, NSP program. An income-eligible household shall be assisted on a first-come, first-ready basis. f. Sponsor Selection Criteria: The City will solicit organizations/partners for participation in the NSP program through a Request For Participation (RFP) process or partner with a designated CHDO. Applicants will be evaluated and awarded based upon the following criteria: Project Location-preference will be given to units provided in the South Street and/or Indian River City Target Areas and/or other areas of greatest needs; financial strength of developer; capacity of the organization; features of the proposed development; marketing plan for the proposed project; site control; affordability of the development; leveraging; timeline for development; previous similar work experience; proposed sales price; and whether or not personnel from the WAGES or Workforce Development Program will be employed; and have five (5) years experience in housing development and/or rental property management. g. Income Limits: All properties will be sold to individuals and families with incomes at or below 50 percent of - 13 -

area median income. The income of each owner occupant will be determined at the time of purchase in accordance with 24 CFR 570.3. h. Additional Information: Eligible costs may include, but are not limited to, labor, materials, supplies, permits, lead paint assessment, abatement and clearance, barrier removal, energy efficiency measures, asbestos removal, and program delivery. Rehabilitation projects involving one or more units in a multiunit building owned as a condominium, will be limited to the particular unit(s) and will not involve rehabilitation of portions of the property that are held in common ownership. i. Homeownership Standards: See Exhibit B j. Rehabilitation Standards: See Exhibit A k. Florida Building Code: All housing acquired or developed through this program must meet all local building codes (including the Standard Southern Building Code) and ordinances pertaining to providing housing that is decent, safe, sanitary, and fit for habitation in accordance with the City of Titusville s Policy And Procedure Guidelines For The Housing Rehabilitation Programs. See Exhibit A. 2. Name of the Strategy: ESTABLISHING LAND BANKS a. Summary of the Strategy: The purpose of the NSP strategy is to bring abandoned property back into productive use, generating tax revenue, raising property values and creating community amenities such as affordable housing and green space. For the purposes of the NSP program, a land bank will operate in a specific, defined geographic area and will purchase properties that have been abandoned or foreclosed upon and will maintain, assemble, facilitate redevelopment of, market, and dispose of the land-banked properties. b. Reference Regulation: NSP-Section 2301(c)(3)C Establish land banks for homes that have been abandoned and foreclosed upon. 24 CFR 570.201(a) Acquisition 24 CFR 270.201(b) - Disposition - 14 -

c. Target Areas: South Street and Indian River City Target Areas d. Terms: Terms of Payment, Recapture and Default. Include terms of recapture in the event of default (failure to make required payments on a loan secured by a first mortgage which leads to foreclosure and/or loss of property ownership). All assistance will be given in the form of a Deferred Payment Loan (DPL). The DPL is at a zero percent interest forgivable at a rate based upon the amount of assistance as follows: Assistance of more than $5,000, but no greater than $10,500, shall require a three (3) year lien. Assistance of more than $10,500, but no greater than $25,000, shall require a five (5) year lien, Assistance of more than $25,000, but no greater than $35,000, shall require a ten (10) year lien, Assistance of more than $35,000 shall require a fifteen (15) year lien, Assistance for new construction shall require a twenty (20) year lien. No payments are due until the property is sold. All properties are subject to recapture of funds through a recorded lien placed on the property. Funds expended on the property are payable in full to the City and returned to the state. For the purpose of the Agreements/DPL between the City and the Homeowner sold shall mean the property is sold, title transferred, Agreement of Deed executed, or the owner no longer resides at the property as their principal residence. Principal residence is defined as the dwelling where the mortgagor maintains his or her permanent place of abode, and typically spends the majority of the calendar year. A person may have only one principal residence. The appraised value of the single-family unit assisted under this program shall not exceed 90% of the median area purchase price in the Melbourne-Titusville-Palm Bay MSA and the maximum sales price allowed in the HUD program. e. Recipient Selection Criteria: The beneficiary shall have a household income at or below 50% of the area median-income adjusted for household size, and shall meet all eligibility requirements of the CDBG, HOME, NSP program. An income-eligible household shall be assisted on a first-come, first-ready basis. f. Sponsor Selection Criteria: The City will solicit organizations/partners for participation in the NSP program through a Request For Participation (RFP) process or partner with a designated CHDO. Applicants will be evaluated and awarded based upon the following criteria: Project Location-preference will be given to units provided in the South Street and/or Indian River City Target Areas and/or other areas of greatest needs; financial strength of developer; capacity of the organization; - 15 -

features of the proposed development; marketing plan for the proposed project; site control; affordability of the development; leveraging; timeline for development; previous similar work experience; proposed sales price; and whether or not personnel from the WAGES or Workforce Development Program will be employed; and have five (5) years experience in housing development and/or rental property management. g. Income Limits: All properties will be sold to individuals and families with incomes at or below 50 percent of area median income. The income of each owner occupant will be determined at the time of purchase in accordance with 24 CFR 570.3. h. Additional Information: Eligible costs may include, but are not limited to, labor, materials, supplies, permits, lead paint assessment, abatement and clearance, barrier removal, energy efficiency measures, asbestos removal, and program delivery. Rehabilitation projects involving one or more units in a multiunit building owned as a condominium, will be limited to the particular unit(s) and will not involve rehabilitation of portions of the property that are held in common ownership. i. Homeownership Standards: See Exhibit B j. Rehabilitation Standards: See Exhibit A k. Florida Building Code: All housing acquired or developed through this program must meet all local building codes (including the Standard Southern Building Code) and ordinances pertaining to providing housing that is decent, safe, sanitary, and fit for habitation in accordance with the City of Titusville s Policy And Procedure Guidelines For The Housing Rehabilitation Programs. See Exhibit A. 3. Name of the Strategy: DEMOLITION AND CLEARANCE/HOUSING REDEVELOPMENT a. Summary of the Strategy: The purpose of this NSP strategy is to bring abandoned and blighted property back into productive use, generating tax revenue, raising property values and creating community amenities such as affordable housing and green space through redevelopment. - 16 -

The minimum purchase discount for an individual property will be at least 5 percent. The average purchase discount for all properties purchased with NSP funds shall be at least 15 percent. b. Reference Regulation: NSP-Section 2301(c)(3)D and 2301 (3)E Demolish blighted structures/redevelop demolished or vacant properties. 24 CFR 570.201(a) Acquisition 24 CFR 270.201(b) Disposition 24 CFR 520.201(d) - Clearance and remediation 24 CFR 570.201(n) Homeownership Assistance 24 CFR 570.201(o) - Counseling c. Target Areas: South Street and Indian River City Target Areas d. Terms: Terms of Payment, Recapture and Default. Include terms of recapture in the event of default (failure to make required payments on a loan secured by a first mortgage which leads to foreclosure and/or loss of property ownership). All assistance will be given in the form of a Deferred Payment Loan (DPL). The DPL is at a zero percent interest forgivable at a rate based upon the amount of assistance as follows: Assistance of more than $5,000, but no greater than $10,500, shall require a three (3) year lien. Assistance of more than $10,500, but no greater than $25,000, shall require a five (5) year lien, Assistance of more than $25,000, but no greater than $35,000, shall require a ten (10) year lien, Assistance of more than $35,000 shall require a fifteen (15) year lien, Assistance for new construction shall require a twenty (20) year lien. No payments are due until the property is sold. All properties are subject to recapture of funds through a recorded lien placed on the property. Funds expended on the property are payable in full to the City and returned to the state. For the purpose of the Agreements/DPL between the City and the Homeowner sold shall mean the property is sold, title transferred, Agreement of Deed executed, or the owner no longer resides at the property as their principal residence. Principal residence is defined as the dwelling where the mortgagor maintains his or her permanent place of abode, and typically spends the majority of the calendar year. A person may have only one principal residence. The appraised value of the single-family unit assisted under this program shall not exceed 90% of the median area purchase price in the Melbourne-Titusville-Palm Bay MSA and the maximum - 17 -

maximum sales price allowed in the HUD program. e. Recipient Selection Criteria: The beneficiary shall have a household income at or below 120% of the area median-income adjusted for household size, and shall meet all eligibility requirements of the CDBG, HOME, NSP program. An income-eligible household shall be assisted on a first-come, first-ready basis. f. Sponsor Selection Criteria: The City will solicit organizations/partners for participation in the NSP program through a Request For Participation (RFP) process or partner with a designated CHDO. Applicants will be evaluated and awarded based upon the following criteria: Project Location-preference will be given to units provided in the South Street and/or Indian River City Target Areas and/or other areas of greatest needs; financial strength of developer; capacity of the organization; features of the proposed development; marketing plan for the proposed project; site control; affordability of the development; leveraging; timeline for development; previous similar work experience; proposed sales price; and whether or not personnel from the WAGES or Workforce Development Program will be employed; and have five (5) years experience in housing development and/or rental property management. g. Income Limits: All properties will be sold to individuals and families with incomes at or below 50 percent of area median income. The income of each owner occupant will be determined at the time of purchase in accordance with 24 CFR 570.3. h. Additional Information: Eligible costs may include, but are not limited to, labor, materials, supplies, permits, lead paint assessment, abatement and clearance, barrier removal, energy efficiency measures, asbestos removal, and program delivery. Rehabilitation projects involving one or more units in a multiunit building owned as a condominium, will be limited to the particular unit(s) and will not involve rehabilitation of portions of the property that are held in common ownership. i. Homeownership Standards: See Exhibit B j. Rehabilitation Standards: See Exhibit A k. Florida Building Code: - 18 -

All housing acquired or developed through this program must meet all local building codes (including the Standard Southern Building Code) and ordinances pertaining to providing housing that is decent, safe, sanitary, and fit for habitation in accordance with the City of Titusville s Policy And Procedure Guidelines For The Housing Rehabilitation Programs. See Exhibit A. 4. Name of the Strategy: HOUSING ACQUISITION/REHABILITATION OF HOMES FOR LEASE TO INDIVIDUALS AND FAMILIES WITH INCOMES LESS THAN 120 PERCENT OF AREA MEDIAN INCOME. a. Summary of the Strategy: The purpose of this NSP strategy is turn foreclosed or abandoned properties into decent, safe and affordable housing for low, moderate and middle income individuals and families. The maximum NSP rents are defined as the fair market rent for existing housing for comparable units in the area as established by HUD under 24 CFR 888.111. For homes that are developed as rental property the tenure is expected to be long term, without planned limits on tenancy. The minimum purchase discount for an individual property will be at least 5 percent. The average purchase discount for all properties purchased with NSP funds shall be at least 15 percent. b. Reference Regulation: NSP-Section 2301(c)(3)D and 2301 (3)E Demolish blighted structures/redevelop demolished or vacant properties. 24 CFR 570.201(a) Acquisition 24 CFR 570.202(a) - Rehabilitation 24 CFR 570.201(b) Disposition 24 CFR 570.201(i) - Relocation c. Target Areas: South Street and Indian River City Target Areas d. Terms: Terms of Payment, Recapture and Default. Include terms of recapture in the event of default (failure to make required payments on a loan secured by a first mortgage which leads to - 19 -

foreclosure and/or loss of property ownership). All assistance will be given in the form of a Deferred Payment Loan (DPL). The DPL is at a zero percent interest forgivable at a rate based upon the amount of assistance as follows: Assistance of more than $5,000, but no greater than $10,500, shall require a three (3) year lien. Assistance of more than $10,500, but no greater than $25,000, shall require a five (5) year lien, Assistance of more than $25,000, but no greater than $35,000, shall require a ten (10) year lien, Assistance of more than $35,000 shall require a fifteen (15) year lien, Assistance for new construction shall require a twenty (20) year lien. No payments are due until the property is sold. All properties are subject to recapture of funds through a recorded lien placed on the property. Funds expended on the property are payable in full to the City and returned to the state. For the purpose of the Agreements/DPL between the City and the Homeowner sold shall mean the property is sold, title transferred, Agreement of Deed executed, or the owner no longer resides at the property as their principal residence. Principal residence is defined as the dwelling where the mortgagor maintains his or her permanent place of abode, and typically spends the majority of the calendar year. A person may have only one principal residence. e. Recipient Selection Criteria: The beneficiary shall have a household income at or below 120% of the area median-income adjusted for household size, and shall meet all eligibility requirements of the CDBG, HOME, NSP program. An income-eligible household shall be assisted on a first-come, first-ready basis. f. Sponsor Selection Criteria: The City will solicit organizations/partners for participation in the NSP program through a Request For Participation (RFP) process or partner with a designated CHDO. Applicants will be evaluated and awarded based upon the following criteria: Project Location-preference will be given to units provided in the South Street and/or Indian River City Target Areas and/or other areas of greatest needs; financial strength of developer; capacity of the organization; features of the proposed development; marketing plan for the proposed project; site control; affordability of the development; leveraging; timeline for development; previous similar work experience; proposed sales price; and whether or not personnel from the WAGES or Workforce Development Program will be employed; and have five (5) years experience in housing development and/or rental property management. g. Income Limits: All properties will be sold to individuals and families with incomes at or below 120 percent of area median income. The income of each owner occupant will be determined at the time of purchase in accordance with 24 CFR 570.3. h. Additional Information: - 20 -

Eligible costs may include, but are not limited to, labor, materials, supplies, permits, lead paint assessment, abatement and clearance, barrier removal, energy efficiency measures, asbestos removal, and program delivery. Rehabilitation projects involving one or more units in a multiunit building owned as a condominium, will be limited to the particular unit(s) and will not involve rehabilitation of portions of the property that are held in common ownership. i. Rehabilitation Standards: See Exhibit A j. Florida Building Code: All housing acquired or developed through this program must meet all local building codes (including the Standard Southern Building Code) and ordinances pertaining to providing housing that is decent, safe, sanitary, and fit for habitation in accordance with the City of Titusville s Policy And Procedure Guidelines For The Housing Rehabilitation Programs. See Exhibit A. II. NSPHAP INCENTIVE STRATEGIES A. Name of the Strategy: EXPEDITED PERMITS Permits as defined in s. 163.3164(7) and (8) for affordable housing projects are expedited to a greater degree than other projects. a. Established policy and procedures: Provide Description: Courtesy reviews are provided to developers before entering the permit process. The process allows one-stop permitting, whereby applicants submit permit requests to one department (Building & Engineering). In 1994, a Zoning & Plans Review Technician position (now Associate Plans Examiner) was implemented to facilitate the processing of affordable housing permits. In April of 1998, the Community Development Department began flagging Affordable Housing projects to expedite the permitting process by using a special colored form (see Exhibit G). An Affordable Housing project shall be defined as follows: 100% of the units in the rental project (minimum 4 units) benefit residents that are at or below 80% of the area median income, and 30% of the units in a single-family project (minimum of 8 units) benefit residents that are at or below 80% of area median income. The Site Plan Review process will be expedited by reducing the review time by 25%, as determined by the Land Development Regulations (LDR s). A copy of the completed form shall be forwarded by the Building & Engineering Services Department to the Neighborhood Services Department for monitoring purposes. In addition, if a developer comes through the Neighborhood Services Department before submitting a site plan application to the Engineering Services Department, the Neighborhood Services Department shall provide a Notice of Affordable Housing Project form (see Exhibit H) to the developer/builder. This - 21 -

form will alert the Department that the project is for affordable housing and should be expedited. Interestingly, a principal cause of delay in any project is the review and approval process required by agencies outside the purview of the City. Such agencies include the St. John s River Water Management District (SJRWM), Florida Department of Transportation (DOT), Florida Game and Fresh Water Commission, Florida Department of Environmental Protection (DEP), U.S. Fish and Wildlife Service, and the U.S. Army Corps. Of Engineers. B. Name of the Strategy: ON-GOING REVIEW PROCESS An ongoing process for review of local policies, ordinances, regulations and plan provisions that increase the cost of housing prior to their adoption. a. Established policy and procedures: Provide Description On April 20, 1994, a member of the City s Planning and Zoning Commission was appointed as the Affordable Housing Liaison. This person is responsible to review all policies, re-zonings, and ordinances changes as they may impact affordable housing throughout the City. Additionally, on December 9, 2008, City Council approved the recommendation from the AHAC to continue this concept in Resolution #2-2009 and additionally require affordable housing projects to be identified on the Planning & Zoning s review checklist. The P&Z Liaison will be responsible for identifying such impacts and shall notify the Engineering Services, Building, and Neighborhood Services Department, as well as, the City Council and Planning & Zoning Commission of any affects on affordable housing. As part of the adoption of the City s Comprehensive Plan in 1988, one of the major goals noted was the updating/revision of the City s zoning ordinance and the administrative re-zoning of the City. Ordinance 26-1997, which became effective February 1, 1998, contains changes in the zoning section of the Land Development Regulations (LDR s); previous zoning regulations and its structure was completed in the 1960 s. The LDR s were updated to address new land development techniques; updated uses in zoning districts and their compatibility; and finally, updated to address new State of Florida mandated laws regarding the Comprehensive Plan and Concurrency regulations. C. Name of the Strategy: RESERVATION OF INFRASTRUCTURE CAPICITY a. Established policy and procedures: Provide Description On December 9, 2008, City Council approved an incentive strategy as recommended by the AHAC to allow fees associated with reserving infrastructure capacity to be waived or deferred for a period not to exceed six months, for affordable housing projects. III. EXHIBITS: - 22 -

A. Policy and Procedure Guidelines for The Housing Rehabilitation Programs Exhibit A. B. First Time Homebuyers Program Policy and Procedures Exhibit B. - 23 -