Loading...
HomeMy WebLinkAboutExhibit ACOMPOSITE EXHIBIT "A" City Manager's Memorandum ATO Attached Proposed Seven (7) Tranche 2 Affordable Housing Strategies For Tranche 2 Miami Forever Affordable Housing and Economic Development Limited Ad Valorem Bonds CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM Honorable Mayor and Members Date: January 15T", 2021 of the City Commission Arthur Noriega V. City Manager SUBJECT: Declaration of Intent -Miami Forever Bond Program — Second Tranche of Affordable Housing Strategies Projects ENCLOSURES: Attachments Pursuant to Resolution No. 17-0350, adopted on July 27, 2017 the Miami City Commission called for a bond referendum special election for the purpose of submitting to the electorate the Miami Forever Bond Program. On November 7, 2017, the voters of the City of Miami approved this bond referendum in the amount of $400 million. On December 131", 2018, pursuant to Resolution No. 18-0546 the Miami City Commission approved to issue taxable and tax-exempt limited ad valorem bonds payable from ad valorem taxes provided that the capital projects debt millage does not exceed the rate of 0.5935 mills, in accordance with the above referenced bond referendum. That resolution further authorized the first tranche of the City of Miami Forever Bond Program in the total amount $58,653,339 for Series A (Roadways- $7,590,182, Parks and Cultural Facilities-$25,348,229, Public Safety-$420,000, Sea Level Rise and Flood Prevention-$10,294,928) and Series B (Affordable Housing and Economic Development-$15,000,000). The Administration is requesting second tranche approval to begin the process of issuing taxable and tax-exempt limited ad valorem bonds payable from ad valorem taxes provided that the capital projects debt millage not exceed the rate of 0.5935 mills, in accordance with November 71", 2017 referendum. These bonds will be used to reimburse the City for funds advanced by the City for certain expenses incurred with respect to capital projects to be undertaken: • To improve affordable housing The Guiding Themes of this Bond Program are: Safety, Wellness and Quality of Life, Equity Economic Return and Modernization. The established vision of this Bond Program is to orchestrate a deliberate and objective project selection process, by expertly assessing citywide requirements and citizen input, and optimize all available resources to create a stronger, more innovated and resilient future for Miami. The Second Tranche is intended to have an immediate impact on the City's affordable housing. The Second Tranche of the Miami Forever Bond Program is proposed in the following amounts: • Affordable Housing $40,000,000 Projects under the Second Tranche will be selected through a Request for Proposals issued by the Department of Housing and Community Development, inviting qualified developers to propose developments for the construction, rehabilitation and permanent financing needs for affordable housing rental developments and homeownership development located withing the City of Miami and in accordance with the Miami Forever Affordable Housing Bond Projects Strategies attached and incorporated: Should you have any questions, please contact George Mensah, Director of the Department of Housing and Community Development, at 305-416-2080. Attachments EXHIBIT "A" 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 Area Median Income (AMI) 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: 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. 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. Affordable 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 $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, 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. 2. 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. 3. 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: 1. 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. 2. 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. 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 through a lottery of, 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. Program Description: Funding under this strategy will be used by the City of Miami to acquire buildable vacant parcels of land suitable for the development of mixed use/mixed income affordable rental o/ homeownership developments/ units to be built by the City ofMiami orbyorganizations that have been procured through a competitive request for proposa|u(RFP) process. Development financing for projects that have been selected through an RFP process, nhoU be the responsibility of the Deve|opmont/OwnerOrganization. If partial funding is provided by the City of Miami, it shall be in accordance with the specifications detailed inthe RFP. Maximum Award: Funding for projects developed by the City of Miami shall come from any Federal, State, and/or local sources available to the City, and shall be determined based upon the needs and structure of the proposed development. 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 (AHTT) and other sources of funding that may become available to the City. Any additional funding provided to the development will be in accordance with the terms of the particular strategy, that is, New Rental Construction or Homeownership Development Strategies. Development Tviae: Mixed income and mixed -use multifamily rental apartment bUilding(s) of 5 or more un6ts, containing, units of various sizes, with or without common amenities and, single family development of 5 or more homeownership units. Project designs and specifications in compliance with City ofMiami planning and zoning requirements. Building construction in compliance with City of Miami and Florida Building Codes. Income levels served: Proposed developments shall serve Extremely Low, Very Low, Low and Workforce level incomes. {nproportions aswill beenumerated inthe Request for Proposals. Development Ownership: Private fee simple or leasehold ownership through For -Profit or Not -For -Profit corporations solely or through Partnerships, OR City of Miami owned. Preference will be given to non-profit Land -trust so as to make the units permanently affordable. e 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 ufunits, etc. Loan Servicing: The City of Miami's Department of Housing and Community Development shall provide all loan servicing, iw.monthly billing and collection, maintaining current property insurances, tracking delinquencies, providing all required reporting, etc. Affordable Rental Housing Preservation Strategy Program Summary Program Description: Provides construction and permanent financing to assist in part with the mhabUitat|on/oresemuion ofexisting affordable multifamily enta|pnojectz.[ityaobtadunhswiUbeequiredtoprovida 2O%ofthe assisted units for Extremely Low Income (30&AK4|), and D0%ofthe assisted units for Low Income (80Y6AK4|) All unassisted units shall not berestricted, Maximum Award: The maximum total amount of City of Miami financing shall not exceed the lesser of $1M or 25% Loan to Cost (LTC) of rehabilitation, onprojects containing 2Uormore total units and the lesser of$lor5O%LTC onprojects containing less than 2Ototal units. City. Funding Sources: City ofMiami General DbU8odon Bond, Home Investment Partnership Program (HOME), State Housing Partnership Program (SHIP), Community Development Block Grant (CDBG), Affordable Housing Trust Fonda (AHTF)and other sources uffunding that may become available tothe City. City funding Uses: Funds may be used for soft cost and hand rehabilitation costs, and permanent financing upon construction completion. City Funding Loans/Terms: The following loan type and terms may be used: 1. Deferred Payment Loan: No debt service payments required. Property must maintain the required affordability structure for a period nf3O 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, 2. Interest Only Loon: Interest only payments at up to 3% interest rate, payable monthly until maturity ore pre- determined period. All principal and interest due at maturity. Loan maturity for a period up to 30 years. City Funding Availability Process: City funds shall bemade available onafirst come first served basis, for eligible multifamily building in the City of Miami. City funding shall be secured and enforced by a Mortgage,Restrictive Covenant, Note, Disbursement Agreement, Regulatory Agreement, Rental Agreement, etc. Development Funding Leveraling. Project funding leveraging h lLd|ofth shall be the �y eOwner and may include funding from private banking institutions, State cfFlorida, Miami -Dade County, Private investment, other City ofMiami funding, etc. Development TVpe: 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 or0ot-Fur-Profitcorporations solely or through Partnerships. e City ofMiami's Department ofHousing 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 ofunits, etc, Logn 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. City of Miami Affordable Housing Long Term Lease/Build Manage Strategy Program Summary Program Description: Funding under this strategy will be used by the City of Miami to acquire buildable vacant parcels of land or existing real estate properties suitable for the development or redevelopment of mixed use/mixed income affordable rental or homeownership developments to be owned and built by the City of Miami or by a third -party developer on behalf of the City of Miami for the purposes of maintaining, operating and management of affordable housing units. Maximum Award: Funding for properties under this strategy shall come from the Miami Forever Bond funds or another fund legally available to the city. Development Type: Mixed income and mixed -use multifamily rental apartment building(s) of 5 or more units, containing units of various sizes, with or without common amenities and, single family developments. 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. Income levels served: Proposed developments shall serve Extremely Low, Very Low, Low level incomes. Development Ownership: Properties purchased under this strategy may be maintain under city ownership, or leased to a third party developers secured through a competitive RFP process or pursuant to Section 29-B of the Charter of the City of Miami Florida, who may construct with taxable and/or tax- exempt bonds in one or more separate future Miami Forever Bonds tranches, affordable multifamily rental or homeownership project containing units for individuals and families who earn up to eighty percent (80%) of area median income with developers managing such properties for the City.