Funding for Affordable Housing

Of Ships and Sails: Affordable Housing Financing Programs In Florida (Foresight, Fall 1997)

State Housing Initiatives Partnership (SHIP)

State housing initiatives partnership SHIP is the first—and only—permanently funded, state housing program in the nation to provide funds directly to local governments to increase affordable housing opportunities in their communities. The program channels 69 percent of the documentary stamp tax revenues created by the Sadowski Act directly to counties and entitlement cities in Florida on a noncompetitive basis. Designed as an incentive for the formation of public-private partnerships for building, rehabilitating and preserving affordable housing, the SHIP program provides a financial means to develop and implement housing programs that are locally designed.

State Apartment Incentive Loan (SAIL) Program

SAIL stimulates production of affordable, multi- and single-family rental housing for very low-income individuals and families in Florida. SAIL is a development incentive program, which leverages state loan funds, local government contributions, developer equity, and private bond financing.

Florida Homeownership Assistance Program (HAP)

Florida Homeownership Assistance Program (HAP) Downpayment Assistance Loan Program—This helps individuals and families with low incomes purchase their own homes by providing $2,500 in 0 percent interest, non-amortizing, second mortgage loans for downpayments and closing costs.

Permanent Loan Program—This provides 0 percent interest, non-amortizing, second mortgage loans covering 25 percent of the purchase price of a home. These loans assist qualified borrowers with down payment/closing costs and reduce the principal on their first mortgage.

Construction Loan Program—A nonprofit developer or sponsor is eligible to borrow the lesser of either the total funds available in an application cycle, or 33 percent of the cost of the project to construct or substantially rehabilitate a minimum of four homes. At least 30 percent of the units must be set aside for low-income borrowers and 30 percent for very low-income borrowers.

Home Investment Partnership Program (HOME)

Federally funded, this program offers second mortgage, low-interest loans to eligible housing providers to develop affordable multi- and single-family housing.

Predevelopment Loan Program (PLP)

This program provides financial assistance for predevelopment costs, site acquisition, and development of land for housing affordable to individuals or families with very low and low incomes.

Florida Affordable Housing Guarantee Program

This program provides guarantees on taxable loans and tax-exempt loans to stimulate innovative, private sector lending for multi- and single-family affordable housing.

Low-Income Rental Housing Tax Credit (LIHTC) Program

This program gives developers federal tax credits in exchange for substantially rehabilitating or constructing rental housing projects that set aside 20 percent or more units for individuals or families with low incomes.

Multi-Family Mortgage Revenue Bond Program

This program uses taxable and tax-exempt bonds to provide below-market interest rate loans to developers of apartments that set aside at least 20 percent of the units for individuals or families with very low, low, moderate and middle incomes. Remaining units may be rented at market rate.

Single-Family Mortgage Revenue Bond (MRB) Program

This uses the proceeds from taxable and tax-exempt mortgage revenue bonds to offer below-market mortgage loans to first-time home buyers with low to moderate incomes.

Single-Family Lease-Ownership Revenue Bond Program

Through this program, the Florida Housing Finance Corporation issues bonds and uses the proceeds to finance loans to nonprofit developers and sponsors of affordable single-family homes, sold to qualified home buyers on a lease-ownership basis.