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HomeMy WebLinkAboutComposite Exhbit AAffordable New Construction Rental Strategy Program Summary Program Description: Provides construction and permanent financing to assist in part with the development of affordable multifamily rental projects containing units affordable to Extremely Low Income (ELI), Very Low Income (VLI), Low Income (LI) and Workforce development (WF) income levels individuals and families. Maximum Award: The maximum total amount of City of Miami financing shall not exceed the lesser of $2M or 20% Loan to Cost (LTC) on projects containing 20 to 40 units and the lesser of $1M or 40% LTC on projects containing less than 20 total units. And, for developments providing more than 40 units, the determination of the total amount of City of Miami financing may be made on a per unit basis, not to exceed 20% of the Loan to Cost (LTC) per unit. City Funding Sources: City of Miami General Obligation Bond, Home Investment Partnership Program (HOME), State Housing Partnership Program (SHIP), Community Development Block Grant (CDBG), Affordable Housing Trust Funds (AHTF) and other sources of funding that may become available to the City. City funding Uses: Funds may be used for land acquisition, development soft cost, financing costs, hard construction costs, and permanent financing upon construction completion. City Funding Loans/Terms: The following loan type and terms may be used: Deferred Payment Loan: No debt service payments required. Property must maintain the required affordability structure for a period of 30 years. Failure to comply will result in the full repayment of principal and an agreed upon default interest rate. Full repayment of principal at the 30 year maturity. Interest Only Loan: Interest only payments at up to 3% interest rate, payable monthly until maturity. All principal and interest due at maturity. Loan maturity can be set for a period up to 30 years. Principal and Interest Amortizable Loans: Principal and Interest payments based on an amortization of 15 to 30 years, payable monthly at a rate of up to 3%, until maturity. Loan maturity can be set for a period of up to 30 years. City Funding Availability Process: City funds shall be made available through a Request for Proposals (RFP) to include pre- determined requirements pertaining to the capacity of the development team, ability of the development to proceed in a timely manner, availability of all project funding, location of project, leveraging requirements, number of units, total city assistance per unit, types of units, energy efficiency, etc. Projects will be selected on the basis of a point scoring system. City funding shall be secured and enforced by a Mortgage, Restrictive Covenant, Note, Disbursement Agreement, Regulatory Agreement, Rental Agreement, etc. Development Funding Leveraging: Project funding leveraging shall be the responsibility of the Owner and may include funding from private banking institutions, State of Florida, Miami -Dade County, Private investment, etc. Development Type: Multifamily rental apartment building(s) of 5 or more units, containing, units of various sizes, with or without common amenities. Project designs and specifications in compliance with City of Miami planning and zoning requirements. Building construction in compliance with City of Miami and Florida Building Codes. Development Ownership: Private fee simple or leasehold ownership through For -Profit or Not -For -Profit corporations solely or through Partnerships. Compliance: The City of Miami's Department of Housing and Community Development shall be responsible for the contractual/regulatory compliance of all developments assisted. Annual compliance monitoring shall be conducted by City staff that will review project rent rolls, leases, tenant income files, financial statements, current operational licenses and certificates, annual inspection of units, etc. Loan Servicing: The City of Miami's Department of Housing and Community Development shall provide all loan servicing, Le. monthly billing and collection, maintaining current property insurances, tracking delinquencies, providing all required reporting, etc Affordable Workforce New Rental Strategy Program Summary Program Description: Provides construction and permanent financing to assist in part with the development of affordable multifamily rental projects containing units affordable to Workforce development (WF) income levels individuals and families (up to 140% AMI). Maximum Award: The maximum total amount of City of Miami financing shall not exceed the lesser of $1M or 20% Loan to Cost (LTC) on projects containing 20 to 40 units and the lesser of $1M or 40% LTC on projects containing less than 20 total units, and, for developments providing more than 40 units, the determination of the total amount of City of Miami financing may be made on a per unit basis, not to exceed 20% of the Loan to Cost (LTC) per unit. City Funding Sources: City of Miami General Obligation Bond, Affordable Housing Trust Funds (AHTF) and other eligible sources of funding that may become available to the City. City funding Uses: Funds may be used for land acquisition, development soft cost, financing costs, hard construction costs, and permanent financing upon construction completion. City Funding Loans/Terms: The following loan types and terms may be used: Interest Only Loan: Interest only payments at an agreed upon interest rate, payable monthly until maturity or a pre -determined period. All principal and interest due at maturity. Loan maturity can be set for a period up to 30 years. Principal and Interest Amortizable Loans: Principal and Interest payments based on an amortization of 15 to 30 years, payable monthly until maturity. Loan maturity can be set for a period of up to 30 years. City Funding Availability Process: City funds shall be made available through a Request for Proposals (RFP) to include pre- determined requirements pertaining to the capacity of the development team, ability of the development to proceed in a timely manner, availability of all project funding, location of project, leveraging requirements, number of units, total city assistance per unit, types of units, energy efficiency, etc. Projects will be selected on the basis of a point scoring system. City funding shall be secured and enforced by a Mortgage, Restrictive Covenant, Note, Disbursement Agreement, Regulatory Agreement, Rental Agreement, etc. Development Funding Leveraging: Project funding leveraging shall be the responsibility of the Owner and may include funding from private banking institutions, State of Florida, Miami -Dade County, Private investment, etc. Development Type: Multifamily rental apartment building(s) of 5 or more units, containing, units of various sizes, with or without common amenities. Project designs and specifications in compliance with City of Miami planning and zoning requirements. Building construction in compliance with City of Miami and Florida Building Codes. Development Ownership: Private fee simple or leasehold ownership through For -Profit or Not -For -Profit corporations solely or through Partnerships. Compliance: The City of Miami's Department of Housing and Community Development shall be responsible for the contractual/regulatory compliance of all developments assisted. Annual compliance monitoring shall be conducted by City staff that will review project rent rolls, leases, tenant income files, financial statements, current operational licenses and certificates, annual inspection of units, etc. Loan Servicing: The City of Miami's Department of Housing and Community Development shall provide all loan servicing, Le. monthly billing and collection, maintaining current property insurances, tracking delinquencies, providing all required reporting, etc. Affordable Homeownership Strategy Program Summary Program Description: Provides construction and permanent financing to assist in part with the development of affordable single family units, townhomes, twin homes, and condominium units to be sold to, eligible individuals or families with incomes not to exceed 140% of Areal Median Income (AM I) Maximum Award: The maximum total amount of City of Miami financing shall not exceed $75,000 per unit City Funding Sources: City of Miami General Obligation Bond, Home Investment Partnership Program (HOME), State Housing Partnership Program (SHIP), Community Development Block Grant (CDBG), Affordable Housing Trust Funds (AHTF) and other sources of funding that may become available to the City. City funding Uses: Funds may be used for land acquisition, development soft cost, financing costs, hard construction costs and may upon the completion of the construction of the unit, partially or entirely serve as a pass -through permanent loan to the eligible buyer of the completed unit. City Funding Loans/Terms: The following loan types and terms may be used: 1. Deferred Payment Loan: No debt service payments required. Homeowner must maintain occupancy as primary residence for a period of 30 years (affordability period). Failure to comply will result in the full repayment of principal and default interest rate. Sale or transfer of the units within the affordability period shall result in the full payment of the loan. Other restrictions or provision may be imposed. Loan will be forgiven upon the completion of the affordability period. 2. Principal and Interest Amortizable Loans: Principal and Interest payments based on an amortization of 30 years, payable monthly until maturity at an interest rate not to exceed 3%, determined on the ability of the buyers payment capacity. Sale or transfer prior to the affordability period will result in the full repayment of principal plus interest. Other restrictions may be imposed. City Funding Availability Process: City funds shall be made available through a Request for Proposals (RFP) to include pre- determined requirements pertaining to the capacity of the development team, ability of the development to proceed in a timely manner, availability of all project funding, location of project, leveraging requirements, number of units, total city assistance per unit, types of units, energy efficiency, target income market addressed, etc. Projects will be selected on the basis of a point scoring system. City construction funding shall be secured and enforced by a Mortgage, Restrictive Covenant, Note, Disbursement Agreement, Regulatory Agreement, City Permanent/Pass through loan to the buyer shall be secured by a Mortgage, Note, and Restrictive Covenant. Development Funding Leveraging: Project funding leveraging shall be the responsibility of the Owner and may include funding from private banking institutions, State of Florida, Miami -Dade County Surtax, etc. Development Type: Single family homes attached townhomes, twin homes and condominium buildings. Development Ownership: Private fee simple or leasehold ownership through For -Profit or Not -For -Profit corporations solely or through Partnerships. Compliance: The City of Miami's Department of Housing and Community Development shall be responsible for the contractual/regulatory compliance of all developments assisted. Homeowners shall be monitored on a semi-annual basis to assure continued compliance with the terms of the Loan Documents. Loan Servicing: The City of Miami's Department of Housing and Community Development shall provide all loan servicing, Le. monthly billing and collection, maintaining current property insurances, tracking delinquencies, providing all required reporting, etc. Homeownership Preservation Strategy Program Summary Program Description: Provides rehabilitation assistance to City of Miami homeowners, with repairs necessary in bringing the home to decent, safe and sanitary conditions, as well as to include materials and methods that harden the property to better withstand natural weather occurrences as well as to maximize the energy efficiencies of the home. The program will assist Extremely Low Income (ELI), Very Low Income (VLI), Low Income (LI) level individuals and families and Workforce (WF) income levels. Maximum Award: The maximum total amount of City of Miami financing shall not exceed $70,000 per home. City Funding Sources: City of Miami General Obligation Bond, State Housing Partnership Program (SHIP), Community Development Block Grant (CDBG), Affordable Housing Trust Funds (AHTF) and other sources of funding that may become available to the City. City funding Uses: Funds may be used for soft and hard construction costs. Upon completion the assistance shall be converted into a permanent loan for a period of 10 years (affordability period). City Funding Loans/Terms: The following loan types and terms may be used: Deferred Payment Loan: No debt service payments required. Property must maintain the required affordability structure for a period of 10 years. Failure to comply will result in the full repayment of principal and an agreed upon default interest rate. Full repayment of principal at the 10 year maturity. The homeowner must maintain occupancy in the home as their primary residence for the period of affordability, or otherwise full payment of the principal will be due. Principal and Interest Amortizable Loans: Principal and Interest payments based on an amortization of 10 years, payable monthly until maturity, at a rate of interest up to 3%, based on the income and payment capacity of the homeowner. City Funding Availability Process: City funds shall be made available on a first come first served basis, for eligible homeowners in the City of Miami. City funding shall be secured and enforced by a Mortgage, Restrictive Covenant and Note. Unit Funding Leveraging: Project funding leveraging may be accepted from other City of Miami, Miami Dade, State of Florida rehabilitation programs, as well as any other sources available for this purpose. Units assisted: Single family homes, townhomes, twin homes and condominiums. Ownership: Private fee simple of primary residence of eligible property owners, Compliance: The City of Miami's Department of Housing and Community Development shall be responsible for the contractual/regulatory compliance of all homeowners assisted. Homeowners shall be monitored from on a semi-annual basis to assure continued compliance with the terms of the Loan Documents. Loan Servicing: The City of Miami's Department of Housing and Community Development shall provide all loan servicing, Le. monthly billing and collection, maintaining current property insurances, tracking delinquencies, providing all required reporting, etc.