Florida Regulations 67-37.019: Compliance Monitoring for Housing Developed With SHIP Local Housing Distribution Funds
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(1) The local government staff or entity with administrative authority for a local housing assistance plan shall maintain a financial tracking system that ensures that the local housing distribution funds disbursed from the local housing trust fund are expended in accordance with the set-aside requirements in Fl. Admin. Code R. 67-37.007, within deadlines established in paragraphs 67-37.005(5)(b) and (c), F.A.C., and in compliance with Florida Statutes § 420.9075 Failure by the local government staff or entity with administrative authority to properly track SHIP funds or reconcile the funds to the general ledger shall result in the local government being deemed in non-compliance with the SHIP program. In this circumstance, the local government or administrative entity shall be required to receive technical assistance through the Catalyst program.
(2) The combined household Annual Gross Income of an applicant who is applying as an owner/occupant of a residence shall be verified and certified by the SHIP program administrator or designee using one of the following methods:
(a) Section 8 housing assistance payments programs in 24 C.F.R. part 5, or
(b) Adjusted gross income as defined for purposes of reporting under Internal Revenue Service Form 1040 for individual federal annual income tax purposes.
(3) Income shall be calculated by annualizing verified sources of income for the household as the amount of income to be received in a household during the 12 months following the effective date of the determination. Whichever income verification and certification method is used, the Annual Gross Income, as defined in Florida Statutes § 420.9071(4), must be used and the SHIP Program income limits cannot be exceeded. SHIP funds Expended on households that are determined to not be income qualified through a compliance monitoring or audit shall be repaid in full to the local housing trust fund from non-SHIP funds to be reallocated to an eligible SHIP activity. In this circumstance, the local government or administrative entity may be required to receive technical assistance through the Affordable Housing Catalyst Program.
(4) The local government staff or entity with authority for administering a local housing assistance plan assisting rental developments shall monitor annually, or to the extent another government entity or Corporation program provides periodic monitoring, the local government may rely on that entity’s monitoring to determine tenant eligibility and the amount of subsidy using the same guidelines as specified at subsection (2), above, annually for 15 years or the term of assistance, whichever is longer. The Corporation shall monitor the activities of the local governments to determine compliance with program requirements as defined in Section 420.9075(4)(e), F.S.
(5) The local government staff or entity with administrative authority for a local housing assistance plan shall provide documentation to the Corporation upon request that details:
(a) Permits, as defined in Sections 163.3164(15) and (16), F.S., for affordable housing projects are expedited to a greater degree than other projects; and,
(b) There is an ongoing process for review of local policies, ordinances, regulations, and plan provisions that increase the cost of housing prior to their adoption.
(6) The Corporation, or any duly authorized representative shall be permitted to inspect the local housing assistance plan, advertisements, applications, income verifications and certifications, plan participation contracts, financial records, tracking system records, construction cost verification including receipts and contracts, rental development annual reviews, Eligible Sponsor and Sub Recipient reviews, Eligible Sponsor and Sub Recipient award lists, SHIP fund recipient lists, and any other applicable documents at any reasonable time with or without notice. Such records shall be maintained within the participating county or eligible municipality at a place accessible to the Corporation staff or its designated monitoring agent.
(7) Subsequent to a local government SHIP program being monitored by the Corporation or its designated agent and receiving a copy of the compliance monitoring report, the local government shall submit a written response to any findings or observations documented in the monitoring report to the Corporation and the designated monitoring agent. The required response shall be submitted within 30 days and shall include an explanation and/or remedy for each item in the compliance monitoring review, including:
(a) An explanation of the plan for correcting the issue including changes in policies, procedures, staff responsibilities, technical assistance and training.
(b) For physical inspection findings or observations, an explanation of any corrective work that will be completed to address the findings or observations.
(c) A timeline for correcting any observed deficiencies; and,
(d) A plan for repayment of ineligible expenses, if any is required.
(8) If the Corporation issues a written report pursuant to Section 420.9075(13)(a), F.S., finding that an eligible jurisdiction has violated program criteria, the Corporation shall:
(a) Submit such report to the Executive Office of the Governor at which time the distribution of program funds to the county or eligible municipality shall be suspended, or
(b) Require the local government to work with technical assistance provider through the Catalyst program, to develop a corrective action plan (CAP).
1. The CAP shall be submitted to the Corporation within 60 days of the date of the letter from the Corporation notifying the eligible jurisdiction of the pattern of violation.
2. The CAP must describe the proposed corrective action for each violation and how the correction actions will be implemented within 3 months of an approval of the CAP by the Corporation.
3. The Corporation shall have 30 days to review and approve or recommend changes to the CAP. Upon approval of the CAP, any undisbursed funds due to the local government shall be distributed.
(9) Projects receiving assistance from the local housing assistance plan and from other State or federal programs that may have conflicting verification and certification requirements, shall comply with requirements of the most restrictive program.
(10) Any local government receiving SHIP funds that administers any portion of the SHIP program through a contracted Sub-Recipient shall bear responsibility for actions of the Sub-Recipient and shall monitor all Sub-Recipients to insure compliance is maintained on all SHIP funded activities. The required contract between the local government and Sub-Recipient shall detail the policies and procedures that shall be adhered to in the management of the SHIP activities.
(11) Any contract or document establishing the relationship between a SHIP eligible local government and an organization that is a Sub-Recipient receiving SHIP funds shall contain the standard audit language on Form DFS-A2-CL (Effective 7/05) in the document as required by the Florida Single Audit Act, Florida Statutes § 215.97
Rulemaking Authority Florida Statutes § 420.9072(9). Law Implemented Florida Statutes § 420.9075. History-New 2-24-08, Amended 11-22-09, 5-23-17.
Terms Used In Florida Regulations 67-37.019
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
(a) Section 8 housing assistance payments programs in 24 C.F.R. part 5, or
(b) Adjusted gross income as defined for purposes of reporting under Internal Revenue Service Form 1040 for individual federal annual income tax purposes.
(3) Income shall be calculated by annualizing verified sources of income for the household as the amount of income to be received in a household during the 12 months following the effective date of the determination. Whichever income verification and certification method is used, the Annual Gross Income, as defined in Florida Statutes § 420.9071(4), must be used and the SHIP Program income limits cannot be exceeded. SHIP funds Expended on households that are determined to not be income qualified through a compliance monitoring or audit shall be repaid in full to the local housing trust fund from non-SHIP funds to be reallocated to an eligible SHIP activity. In this circumstance, the local government or administrative entity may be required to receive technical assistance through the Affordable Housing Catalyst Program.
(4) The local government staff or entity with authority for administering a local housing assistance plan assisting rental developments shall monitor annually, or to the extent another government entity or Corporation program provides periodic monitoring, the local government may rely on that entity’s monitoring to determine tenant eligibility and the amount of subsidy using the same guidelines as specified at subsection (2), above, annually for 15 years or the term of assistance, whichever is longer. The Corporation shall monitor the activities of the local governments to determine compliance with program requirements as defined in Section 420.9075(4)(e), F.S.
(5) The local government staff or entity with administrative authority for a local housing assistance plan shall provide documentation to the Corporation upon request that details:
(a) Permits, as defined in Sections 163.3164(15) and (16), F.S., for affordable housing projects are expedited to a greater degree than other projects; and,
(b) There is an ongoing process for review of local policies, ordinances, regulations, and plan provisions that increase the cost of housing prior to their adoption.
(6) The Corporation, or any duly authorized representative shall be permitted to inspect the local housing assistance plan, advertisements, applications, income verifications and certifications, plan participation contracts, financial records, tracking system records, construction cost verification including receipts and contracts, rental development annual reviews, Eligible Sponsor and Sub Recipient reviews, Eligible Sponsor and Sub Recipient award lists, SHIP fund recipient lists, and any other applicable documents at any reasonable time with or without notice. Such records shall be maintained within the participating county or eligible municipality at a place accessible to the Corporation staff or its designated monitoring agent.
(7) Subsequent to a local government SHIP program being monitored by the Corporation or its designated agent and receiving a copy of the compliance monitoring report, the local government shall submit a written response to any findings or observations documented in the monitoring report to the Corporation and the designated monitoring agent. The required response shall be submitted within 30 days and shall include an explanation and/or remedy for each item in the compliance monitoring review, including:
(a) An explanation of the plan for correcting the issue including changes in policies, procedures, staff responsibilities, technical assistance and training.
(b) For physical inspection findings or observations, an explanation of any corrective work that will be completed to address the findings or observations.
(c) A timeline for correcting any observed deficiencies; and,
(d) A plan for repayment of ineligible expenses, if any is required.
(8) If the Corporation issues a written report pursuant to Section 420.9075(13)(a), F.S., finding that an eligible jurisdiction has violated program criteria, the Corporation shall:
(a) Submit such report to the Executive Office of the Governor at which time the distribution of program funds to the county or eligible municipality shall be suspended, or
(b) Require the local government to work with technical assistance provider through the Catalyst program, to develop a corrective action plan (CAP).
1. The CAP shall be submitted to the Corporation within 60 days of the date of the letter from the Corporation notifying the eligible jurisdiction of the pattern of violation.
2. The CAP must describe the proposed corrective action for each violation and how the correction actions will be implemented within 3 months of an approval of the CAP by the Corporation.
3. The Corporation shall have 30 days to review and approve or recommend changes to the CAP. Upon approval of the CAP, any undisbursed funds due to the local government shall be distributed.
(9) Projects receiving assistance from the local housing assistance plan and from other State or federal programs that may have conflicting verification and certification requirements, shall comply with requirements of the most restrictive program.
(10) Any local government receiving SHIP funds that administers any portion of the SHIP program through a contracted Sub-Recipient shall bear responsibility for actions of the Sub-Recipient and shall monitor all Sub-Recipients to insure compliance is maintained on all SHIP funded activities. The required contract between the local government and Sub-Recipient shall detail the policies and procedures that shall be adhered to in the management of the SHIP activities.
(11) Any contract or document establishing the relationship between a SHIP eligible local government and an organization that is a Sub-Recipient receiving SHIP funds shall contain the standard audit language on Form DFS-A2-CL (Effective 7/05) in the document as required by the Florida Single Audit Act, Florida Statutes § 215.97
Rulemaking Authority Florida Statutes § 420.9072(9). Law Implemented Florida Statutes § 420.9075. History-New 2-24-08, Amended 11-22-09, 5-23-17.