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HomeMy WebLinkAboutPre-LegislationCity of Miami 5 Y Legislation Resolution: R-19-0021 File Number: 5219 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Final Action Date: 1/10/2019 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AMENDING THE CITY OF MIAMI'S DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT'S HOUSING PROGRAM POLICIES TO INCLUDE A RIGHT OF FIRST REFUSAL PROVISION AND A GENERAL UPDATE OF THE POLICIES TO REFLECT THE CHANGING HOUSING MARKET, AS FURTHER DESCRIBED IN EXHIBIT "A," ATTACHED AND INCORPORATED; AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ANY AND ALL NECESSARY DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, FOR SAID PURPOSE. WHEREAS, due to substantial changes in the real estate market in the City of Miami ("City"), housing prices have outpaced the incomes of a majority of City residents; and WHEREAS, according to calculations performed by the Florida International University Metropolitan Center, based on the 2016 American Community Survey, the gap in the number of housing units ("Units") that are affordable to extremely low-income families is 13,195 Units and the gaps for very low-income families and low income families are 7,694 Units and 10,909 Units, respectively; and WHEREAS, according to data from the Shimberg Center for Housing Studies of the University of Florida, there are twenty-four (24) properties in the City containing more than 1,800 Units with the affordability period expiring in the next five (5) years; and WHEREAS, the City's Department of Housing and Community Development's Housing Program Policies ("Policies") are being amended to include a Right of First Refusal provision to preserve the affordability of Units, to provide additional incentives for small developers, and to bring the policies in line with current practices in the affordable housing industry; and WHEREAS, the City Administration recommends amending the Policies as further described in Exhibit 'A" attached and incorporated; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. The amendment of the Policies to include a Right of First Refusal provision and a general update of the policies to reflect the changing housing market, as further described in Exhibit 'A" attached and incorporated, is authorized.' City of Miami Page 1 of 2 File ID: 5219 (Revision:) Printed On: 1011512021 File ID: 5219 Enactment Number: R-19-0021 Section 3. The City Manager is authorized' to negotiate and execute any and all necessary documents, in a form acceptable to the City Attorney, for said purpose. Section 4. This Resolution shall become effective immediately upon its adoption and signature of the Mayor .2 APPROVED AS TO FORM AND CORRECTNESS: i ria i : ndez, C ity Attor iey 12/27/2018 ' The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to, those prescribed by applicable City Charter and City Code provisions. 2 If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10) calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. City of Miami Page 2 of 2 File ID: 5219 (Revision:) Printed on: 1011512021 EXHIBIT "A" City of Miami Department of Housing and Community Development Affordable Homeownership Development Policy Provides construction and permanent financing to assist in part with the development of affordable single family units, townhomes, twin homes, and Program Description condominium units to be sold to, eligible individuals or families with incomes not to exceed 140% of Areal Median Income (AMI) HOME, SHIP, CDBG, AHTF, GOB 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 Funding unit, partially or entirely serve as a pass -through permanent loan to the eligible buyer of the completed unit. 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 Repayment Requirements 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. Minimum / Maximum Subsidy The maximum total amount of City of Miami financing shall not exceed $50,000 per unit Affordability Period Up to 30 years affordability period on homebuyer loan City construction funding shall be secured and enforced by a Mortgage, Restrictive Covenant, Note, Disbursement Agreement, Regulatory Agreement, Security City Permanent/Pass through loan to the buyer shall be secured by a Mortgage, Note, and Restrictive Covenant. 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, Funding Availability 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. Single family homes, attached townhomes, twin homes and condominium Development Types buildings. EXHIBIT "A" City of Miami Department of Housing and Community Development Housing Program Summary Homeownership Policy — Buyer Resolution 11-0402 Proposed Guidelines October 13, 2011 Homebu er Policy - Buyers To assist low income homebuyers in the purchase of a home by providing down Same as Resolution No. 11-0402 Program payment, closing costs and/or second (No Change) Description mortgage financial assistance for the purchase of a newly constructed or existing residential property within the City. Same as Resolution No. 11-0402 Funding HOME, SHIP, CDBG, AHTF (No Change 1. In the case of transfer of the property, Same as Resolution No. 11-0402 the borrower will be required to repay (No Change) the original amount given as assistance. 2. In the case of sale or transfer of the unit the City will share in the gain realized by the borrower. a. 0 to 3 years — City receives 100% of the City's pro rata share of the gain generated b. 3 — 20 years — On the 3`d year, City receives 85% of the City's pro rate share of the gain generated and borrower receives 15%. Thereafter, the Repayment borrower receives an Requirements additional 5% of the City's prorated share per year reducing the City's share by the same percentage until year 20. c. Year 20 and above: The borrower receives 100% of the gain The above gain sharing proposal will terminate in foreclosure; however, the city will require lenders to provide us a right of first refusal to purchase the loan at a negotiated price. 3. Forgivable loan after the affordability period of 30 years 4. In the case of a foreclosure the City will recapture any amount of net proceeds available from the sale of the property. EXHIBIT "A" City of Miami Department of Housing and Community Development Housing Program Summary Homeownership Policy — Buyer $1 000 / Basic Subsidy based on the number of bedrooms as Minimum / Maximum Subsidy Same as Resolution No. 11-0402 (No Change) annually determined by HUD under Section 221(d) (3) 234. See below Same as Resolution No. 11-0402 Affordability Period 30 years (No Change) Security Affordability period to be enforced by a restrictive covenant that will run with the Affordability period to be enforced by a mortgage on the property and requirement of homestead exemption land as well as a mortgage Development Fee N/A Same as Resolution No. 11-0402 (No Change Minimum Down Payment $500 Same as Resolution No. 11-0402 o Change) Minimum Ratio of City Funds to other Funds in the Project N/A Same as Resolution No. 11-0402 o Change) Type of Assistance Down payment assistance and closing costs Same as Resolution No. 11-0402 (No Change) Maximum Purchase Price not to Maximum Purchase Price /Value of Property exceed 95% of median purchase price for the area as annually determined by HUD (See below) Same as Resolution No. 11-0402 (No Change) Subsidy Limits* Number of bedrooms Basic Subsidy$48,328 0 1 $55,722 2 $67,202 3 $86,020 4 $95,830 Purchase Price / After -Rehabilitation Value Limits Effective April 1, 2018 New - $276,000.00 2018 Miami -Dade County: 95% of Median Limits Existing - $261,000.00 *This was based on the Basic Statutory Mortgage Limits established in 2008 2 EXHIBIT "A" City of Miami Department of Housing and Community Development Affordable New Construction Rental Policy Provides construction and permanent financing to assist in part with the development of affordable multifamily rental projects containing units affordable to Extremely Low Program Description Income (ELI), Very Low Income (VLI), Low Income (LI) and Workforce development (WF) income levels individuals and families. Funding HOME, SHIP, CDBG, AHTF, GOB 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 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 Repayment Requirements 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. The maximum total amount of City of Miami financing shall not exceed the lesser of $2M Minimum / Maximum Subsidy or 20% Loan to Cost (LTC) on projects containing 20 or more total units and the lesser of $ 1 M or 40 /o LTC on projects containing less than 20 total units. Minimum subsidy shall be $1,000 per unit Affordability Period 30 years affordability period 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 Funding Availability 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, Security Disbursement Agreement, Regulatory Agreement, Rental Agreement, etc. Covenant and Mortgage will include a Right of First Refusal Clause. Up to 16% of total project costs, excluding land value and other operational reserves. Development Fee Subject to change based on requirements of an RFP 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 Development Types compliance with City of Miami planning and zoning requirements. Building construction in compliance with City of Miami and Florida Building Codes. EXHIBIT "A" City of Miami Department of Housing and Community Development Single Family Replacement Home Program Policy Resolution 06-0328 Proposed Guidelines May 25, 2006 Single Family Replacement Home Program Designed to address substandard and dilapidated housing units that the cost of repairs cannot be Program Description addressed through the Single Family Same as Resolution No. 06-0328 Rehabilitation Program. It involves the demolition (No Change) and reconstruction of a new 3 bedroom 2 bath house on the same lot. Funding SHIP and CDBG Same as Resolution No. 06-0328 (No Change) Type of Assistance Deferred payment 30 year loan used for ea oloan used for Deferred payment 30 year /o reconstruction of home; 3 non -amortizing reconstruction of home; 3� 0 /o non -amortizing Minimum / Maximum $150,000 Same as Resolution No. 06-0328 Subsidy (No Change) Affordability Period 30 years Same as Resolution No. 06-0328 (No Change) Single family owner occupied unit in the City of Miami with major structural defects that cannot be rehabilitated. The property must be free and clear of all liens Same as Resolution No. 06-0328 Eligible Property and mortgages, except City of Miami municipal (No Change) liens. Properties with first mortgages will qualify for replacement only if the first mortgage lender subordinates to the City. Affordability period to be enforced by a second Affordability period to be enforced by a Security mortgage on the property mortgage on the property and requirement of homestead exemption Repayment In the case of sale or transfer or if the property 1. In the case of sale or transfer or if Requirements ceases to be occupied as the primary the property ceases to be occupied residence, the borrower will be required to as the primary residence, the repay the original amount given as assistance borrower will be required to repay as well as any accrued interest. the original amount, given as assistance. EXHIBIT "A" City of Miami Department of Housing and Community Development Single Family Replacement Home Program Policy 2. In the case of sale or transfer of the unit the City will share in the gain realized by the borrower. a. 0 to 10 years — City receives 100% of the City's of the gain generated less land value. b. 10 — 20 years — City receives 50% of the gain generated less land value . c. 20 to 30 years — City receives 25% of the gain less land value. EXHIBIT "A" City of Miami Department of Housing and Community Development Affordable Rental Housing Preservation Policy Provides construction and permanent financing to assist in part with the rehabilitation/preservation of existing affordable multifamily rental projects. City assisted units will be required to provide 20% of the assisted units for Program Description Extremely Low Income (30% AMI), and 80% of the assisted units for Low Income (80% AMI) All unassisted units shall not be restricted. Funding HOME, SHIP, CDBG, AHTF, GOB 1. 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 Requirements 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 or a pre -determined period. All principal and interest due at maturity. Loan maturity for a period up to 30 years The maximum total amount of City of Miami financing shall not exceed the lesser of $lM or 25% Loan to Cost (LTC) of rehabilitation, on projects Minimum / Maximum Subsidy containing 20 or more total units and the lesser of $1 or 50% LTC on projects containing less than 20 total units. Affordability Period Up to 30 years affordability period City funding shall be secured and enforced by a Mortgage, Restrictive Covenant, Note, Disbursement Agreement, Regulatory Agreement, Rental Security Agreement, etc. Covenant and Mortgage will include a Right of First Refusal Clause. City funds shall be made available on a first come first served basis, for eligible multifamily building in the City of Miami. City funding shall be Funding Availability secured and enforced by a Mortgage, Restrictive Covenant, Note, Disbursement Agreement, Regulatory Agreement, Rental Agreement, etc. Multifamily rental apartment building(s) of 5 or more units, containing units of various sizes, with or without common amenities. Project designs and Development Types specifications in compliance with City of Miami planning and zoning requirements. Building construction in compliance with City of Miami and Florida Building Codes. EXHIBIT "A" City of Miami Department of Housing and Community Development Development Housing Program Summary Single Family Rehabilitation Program Policy Resolution 13-0448 Proposed Guidelines November 21, 2013 Single Family Rehabilitation To assist low income residents with all the repairs Program Description necessary to bring the house to a decent, safe and Same as Resolution No. 13-0448 sanitary condition. Eligible trade areas to include (No Change) plumbing, electrical, roofing and structural. Funding SHIP and CDBG Same as Resolution No. 13-0448 o Change) Type of Assistance Deferred payment 10 year loan used for repairs to Same as Resolution No. 13-0448 property; 3 /o non -amortizing (No Change) Minimum / Maximum $1,000 / $50,000 Possible Increase to Program Subsidy Affordability Period 10 years Same as Resolution No. 13-0448 (No Change) Security Affordability period to be enforced by a second Affordability period to be enforced by a mortgage on the property and requirement of mortgage on the property homestead exemption Repayment In the case of sale or transfer or if the property Requirements ceases to be occupied as the primary residence, the borrower will be required to Same as Resolution No. 13-0448 repay the original amount given as assistance (No Change) as well as any accrued interest. Maximum Value of Property must not exceed the tax assessed market Same as Resolution No. 13-0448 Property value of $300,000 (No Change) City of Miami 5 Y Legislation Resolution: R-20-0046 File Number: 7118 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Final Action Date: 2/13/2020 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AMENDING THE CITY OF MIAMI'S DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT'S SINGLE FAMILY REHABILITATION PROGRAM ("PROGRAM") POLICY IN ORDER TO CHANGE THE MAXIMUM VALUE OF THE PROPERTIES THAT ARE QUALIFIED TO BENEFIT FROM THE PROGRAM, AS MORE PARTICULARLY DESCRIBED IN EXHIBIT "A," ATTACHED AND INCORPORATED, WHILE USING COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS AS WELL AS STATE HOUSING INITIATIVE PROGRAM FUNDS; AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ANY AND ALL NECESSARY DOCUMENTS, ALL IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, FOR SAID PURPOSE. SPONSOR(S): Commissioner Manolo Reyes WHEREAS, according to the Zillow Home Value Index, the average value of single family properties in the City of Miami ("City") is $367,249.00; and WHEREAS, this amount means that many of the homeowners in the City will not qualify for the City's Department of Housing and Community Development's ("Department") Single Family Rehabilitation Program ("Program") due to the Program's current maximum home value limitations; and WHEREAS, the Department has received numerous requests from low income homeowners whose properties fall outside of the current maximum home value limitations and who do not have sufficient income to obtain traditional financing to repair their homes; and WHEREAS, the City's Administration recommends amending the Department's Program policy, as more particularly described in Exhibit "A," attached and incorporated; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. The amendment of the Department's Program policy in order to change the maximum value of the properties that are qualified to benefit from the Program, as further described in Exhibit 'A" attached and incorporated, while using Community Development Block Grant funds and State Housing Initiative Program funds is authorized.' City of Miami Page 1 of 2 File ID: 7118 (Revision:) Printed On: 1011512021 File ID: 7118 Enactment Number: R-20-0046 Section 3. The City Manager is authorized' to negotiate and execute any and all necessary documents, all in a form acceptable to the City Attorney, for said purpose. Section 4. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: 1 ria " dez, C ity Attor iey 1 /31 /2020 ' The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to, those prescribed by applicable City Charter and City Code provisions. City of Miami Page 2 of 2 File ID: 7118 (Revision:) Printed on: 1011512021 EXHIBIT "A" City of Miami Department of Housing and Community Development Housing Program Summary Single Family Rehabilitation Program Resolution 19-0021 Proposed Guidelines January 10, 2019 Single Family Rehabilitation To assist low income residents with all the repairs Program Description necessary to bring the house to a decent, safe and Same as Resolution No. 19-0021 sanitary condition. Eligible trade areas to include (No Change) plumbing, electrical, roofing and structural. Funding SHIP and CDBG Same as Resolution No. 19-0021 (No Change) Type of Assistance Deferred payment 10yearloan used for repairs to Same as Resolution No. 19-0021 property; 3 /o non -amortizing (No Change) Minimum / Maximum $1,000 / $50 000 Same as Resolution No. 19-0021 Subsidy (No Change) Affordability Period 10 years Same as Resolution No. 19-0021 (No Change) Affordability period to be enforced by a mortgage Same as Resolution No. 19-0021 Security on the property and requirement of homestead (No Change) exemption Repayment In the case of sale or transfer or if the property Requirements ceases to be occupied as the primary residence, the borrower will be required to Same as Resolution No. 19-0021 repay the original amount given as assistance (No Change) as well as any accrued interest. SHIP; Not to exceed 90% of the median area Maximum Value of Property must not exceed the tax assessed market purchase price established by the U.S. Property value of $300,000 Treasury Department CD13G: Property must not exceed the tax assessed market value of $400,000