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Home My WebLink AboutR-03-0454J-03-424 05/08/03 RESOLUTION NO. 03— 454 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING THE ALLOCATION OF 29TH YEAR COMMUNITY DEVELOPMENT BLOCK GRANT ("CDBG") PROGRAM FUNDS, IN THE AMOUNT OF $1,500,000, TO CREATE THE LITTLE HAVANA HOME OWNERSHIP ZONE TRUST AND 29TH YEAR HOME INVESTMENT PARTNERSHIPS ("HOME") PROGRAM FUNDS, IN THE AMOUNT OF $500,000, TO CREATE THE DISTRICT 4 HOUSING PILOT PROJECT FOR THE DEVELOPMENT OF AFFORDABLE HOUSING; AND FURTHER ADOPTING THE 29TH YEAR CDBG PROGRAM AND HOME PROGRAM POLICY FOR CDBG HOUSING DEVELOPMENT CATEGORY AND HOME HOMEOWNERSHIP ACTIVITIES, ATTACHED AND INCORPORATED. WHEREAS, the Administration has proposed the 29th Year Community Development Block Grant ("CDBG") Program and Home Investment Partnerships ("HOME") Program Policy for CDBG Housing Development Category and HOME homeownership activities, attached and incorporated; and WHEREAS, the City Commission wishes to authorize the allocation of funds from (1) 29th Year Community Development Block Grant ("CDBG") Program Funds, in the amount of $1,500,000, to create the Little Havana Home Ownership Zone Trust and (2) 29th Year Home Investment Partnerships ("HOME") program funds, in CITY COM ES`SION MEETING OF MAY 0 ' 2903 Resolution No. 03- 454 the amount of $500,000, to create the District 4 Housing Pilot Project for the development of affordable housing; 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 allocation of (1) 29th Year Community Development Block Grant ("CDBG") Program Funds, in the amount of $1,500,000 to create the Little Havana Home Ownership Zone Trust and (2) 29th Year Home Investment Partnerships ("HOME") Program Funds, in the amount of $500,000, to create the District 4 Housing Pilot Project for the development of affordable housing are authorized. Section 3. The 29th Year CDBG Program and HOME Program Policy for the CDBG Housing Development Category and HOME Homeownership Activities, attached and incorporated, is adopted. Page 2 of 3 03- 454 Section 4. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.v PASSED AND ADOPTED this 8th day of May , 2003. ATTEST: PRICILLA A. THOMPSON CIT CLERK APPROVED 4a 1O i'r ORM AU. CORRECTNESS gqqR,X V ILA Y A ORNEY W7.2118:tr:AS:BSS ii 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. Page 3 of 3 03- 454 29TH YEAR CDBG PROGRAM AND HOME PROGRAM POLICY (CDBG Housing Development Category and HOME Homeownership Activities) Priority Activities by Districts. The Request for Proposals (RFP) for 29th Year CDBG Program funding of housing development activities and HOME Program funding of homeownership activities will limit funding to the following District -specific priorities: District Priority Activities District 1 - (1) Down payment Assistance / Second Mortgage (2) New Construction, Homeownership District 2 - (1) New Construction, Homeownership (2) Down payment Assistance / Second Mortgage District 3 - (1) Down payment Assistance / Second Mortgage (2) Multi -family Rehabilitation (3) New Construction, Homeownership District 4 - (1) Multi -family Rehabilitation (2) Down payment Assistance / Second Mortgage (3) New Construction, Homeownership District 5 - (1) New Construction, Homeownership (2) Down payment Assistance / Second Mortgage Elimination of use of U.S. HUD funds for Housing Administration: Housing administrative costs on Brick and Mortar activities of affordable housing projects will be covered through developer fees of funded projects, thereby eliminating the use of U.S. HUD funds for housing administration. HOME Program Brick and Mortar activities: The HOME Program funding of Brick and Mortar housing development activities will continue to be directed as follows: 75% - New Construction, Homeownership 25% - Rehabilitation and New Construction, Rental units Leveraging Requirements Confirmed: Housing developers will be required to leverage City funds using other public and/or private funding as follows: 5:1 - Rental housing projects 2:1 - Homeownership projects Page Iof2 03- 454 TIMING of Proiect Construction For any housing development project to be eligible for funding, construction must be ready to begin within six (6) months of executing an agreement with the City and the project must be able to be completed within twenty-four (24) months of executing the agreement. Down Payment Assistance and Second Mortimaes: The down payment assistance and second mortgage programs for CDBG and HOME funding will be project -driven. The maximum funding per eligible home purchase will be $30,000. Funding will be in the form of 0% interest deferred loans which will come due and payable, in full, at sale or in the event that the property is leased or rented during the term of the loan. In the event that the homebuyer seeks to refinance the home prior to the termination of the loan, the City Manager or designee will determine what portion of the loan must be repaid. W7218 attachment Page 2 of 2 03- 454 TO FROM CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM The Honorable Mayd Meme of The Cil i ission V Joe i la City ager RECOMMENDATION: so DATE: AP' ` 2 9 2003 FILE 29th Year CDBG and HOME SUBJECT: Funds: Housing Development Policy, District 4 Pilot and Little Havana Home Ownership Trust REFERENCES: ENCLOSURES: City Commission Agenda May 8, 2003 It is respectfully recommended that the City Commission adopt the attached Resolution, with attachment, allocating 29th Year Community Development Block Grant (CDBG) Program funds of $1,500,000 to create the Little Havana Home Ownership Zone Trust and 29th Year HOME Investment Partnerships (HOME) Program funds of $500,000 to create the District 4 Housing Pilot Project for the development of affordable housing and further adopting policies related to the Housing Development category of the 29th Year CDBG Program and the homeownership activities of the HOME Program, as per the attachment, for the balance of the available funds, in the amount of $503,600 and $3,355,685, respectively. BACKGROUND: Under the entitlement formula, the U.S. Department of Housing and Urban Development (U.S. HUD) has advised the City that the projected 29th Program Year entitlement for Community Development Block Grant (CDBG) Program will be approximately $10,132,000 and for HOME Investment Partnerships (HOME) Program will be approximately $5,140,914. Approximately $2,003,600 in 29th Year CDBG Program funds is earmarked for the Housing Development category and $3,855,685 in HOME Program funds, representing 75% of the 29th Year entitlement, is earmarked for homeownership activities. The Administration recommends that the City Commission approve the allocation of $1,500,000 from the 29th Year CDBG Program funds to create the Little Havana Home Ownership Zone Trust and the allocation of $500,000 from the 29th Year HOME Program funds to create the District 4 Housing Pilot Project for the development of affordable housing. The allocation to the Little Havana Home Ownership Zone Trust represents the first year of a five (5) year commitment, with each subsequent year's funding source to be determined at the time of allocation. The allocation to the District 4 Housing Pilot Project represents the first year of a three (3) year commitment, with each subsequent year's funding source to be determined at the time of allocation. For the allocation of the remaining 29th Year CDBG and HOME Program funding, the Administration recommends that the City Commission establish a policy for funding housing development activities that continues to encourage public/private partnerships through the Request for Proposal (RFP) process. To provide focus to the competitive RFP process, the Administration recommends that proposals for 29th Year CDBG Program funding of housing 03- 454 development activities and HOME Program funding of homeownership activities be limited to programs designated as a District priority, according to the chart below. District Priority Activities District 1 - (1) Down payment Assistance / Second Mortgage (2) New Construction, Homeownership District 2 - (1) New Construction, Homeownership (2) Down payment Assistance / Second Mortgage District 3 - (1) Down payment Assistance / Second Mortgage (2) Multi -family Rehabilitation (3) New Construction, Homeownership District 4 - (1) Multi -family Rehabilitation (2) Down payment Assistance / Second Mortgage (3) New Construction, Homeownership District 5 - (1) New Construction, Homeownership (2) Down payment Assistance / Second Mortgage Housing is one of the funding priorities set forth in the City's Action Plan for the 29th Program Year. It is recommended that the City Commission continue the policy of directing 75% of HOME Program funds for Brick and Mortar housing development activities to new construction of homeownership units and 25% to rehabilitation and new construction of rental housing. Under this scenario, there will be a single RFP published for 29"' Year CDBG and HOME Program funding covering the activities designated above by District. Housing administrative costs on Brick and Mortar activities of affordable housing projects will be covered through developer fees of funded projects, thereby eliminating the use of U.S. HUD funds for housing administration. Priority will be given to Community Housing Development Organizations (CHDOs) in all funded activities. Funding of down payment assistance and second mortgages must be project -driven. New construction of homeownership projects and projects requesting down payment assistance and second mortgages will be considered in all Districts. Multi -family Rehabilitation projects will be considered only in District 3 and District 4. For a project to be eligible for funding, construction must be ready to begin within six (6) months of executing an agreement with the City and the project must be able to be completed within twenty-four (24) months of executing the agreement. Brick and Mortar housing development proposals submitted outside the RFP process seeking gap financing due to unforeseen cost overruns for projects which are consistent with the City's Action Plan and policy may be considered for funding pending availability of funds from other projects which have been deobligated or which are suffering significant delays. Current procedure, as per the settlement of the Audit Report issued by the Office of the Inspector General March 27, 1998, requires funding approval of all housing development projects by the Housing and Commercial Loan Committee. The Administration further recommends that developers be required to leverage City funds using other public and/or private funding at a minimum of 5:1 for rental housing projects and 2:1 for 03- 454 homeownership projects. This represents an amendment to Resolution No. 98-587, adopted by the City Commission on July 9, 1998, which required leveraging of 5:1 for rental housing projects and 3:1 for homeownership projects. The down payment assistance and second mortgage programs for CDBG and HOME funding will be project -driven. The maximum funding per eligible home purchase will be $30,000. Homebuyer eligibility will be based on the City's State Housing Initiatives Partnership (SHIP) Homebuyer Financing program, except where CDBG or HOME Program requirements are more restrictive. Funding will be in the form of 0% interest deferred loans which will come due and payable, in full, at sale or in the event that the property is leased or rented during the term of the loan. In the event that the homebuyer seeks to refinance the home prior to the termination of the loan, the City Manager or designee will determine what portion of the loan must be repaid. It is recommended that the City Commission adopt the attached Resolution, with attachment, allocating 29th Year Community Development Block Grant (CDBG) Program funds of $1,500,000 to create the Little Havana Home Ownership Zone Trust and 29th Year HOME Investment Partnerships (HOME) Program funds of $500,000 to create the District 4 Housing Pilot Project for the development of affordable housing and further adopting policies related to the Housing Development category of the 29th Year CDBG Program and the homeownership activities of the HOME Program, as per the attachment, for the balance of the available funds, in the amount of $503,600 and $3,355,685, respectively. The proposed Resolution does not have a budgetary impact on the General Fund. 03- 454 Fapde Treat Program. This ba skr is for to rshabilolton of pertdpalrg haiersea and tuba aallaimnq the lather of any C, ed I Fapde Tleahreww Program finds ilot spelt in Nle 28M Progarn Yaw to the 20 Props 1Wr. Dacussw and p000sed resobton aunlorwrg: OF RM YEAR PROGRAM FUNDS CATOOM "w= ANDONT CDBG Ropam UVk Havana Homeownership Test S113MI000.00 HOMEP opina District 4 ftwig PM Project I 55001000.00 DlsmlmMh i d proposed raeoAA app w. be Policies rshbd b ore firW rq of be Hor®g Oevesp eateulopM title 29b Year =6 MRogan Dkcusaah ad prepeeed resolutan awlormrg: RF/Y.LOG1nD110PWAPROSa1W fFDOS DEOBl1RAtE FUNDS Fil01k ALdDG1E FNDS TD: _T AMOUR AMOUNT e WI 5425 000.00 M1010m Inc. $4M000.00 The paoeaad raasscean to INUM s, Vic. s Mae pads, a pawnesa aeparw b as Swan Ha fafey and Or OMloprwa ad r Baba "IdsMiYa1(171 ad dhow lMwe wabb hom bwieame peawo wftwar HWAD6. N .. hsasdindhleoaaaap rrmrraed b dyed ewe ewer ft , The meeerSee is axes" es" bore hwwer'aWaw. O - 1f w sa„tD1 !h.![!� i The i City Canmission VAI hold a Public Cllr Of AG81ni Heanng to discus issues relating to the Community Dep8ThFleTlt of COFIMFD a ft DBvelOpirne" Development Mock Grant and other HUD Programs. Thursday, May 8, 2003.3.-00 P.M. C. of Mieml Commission Chamber 3500 Pan Amenicen Dive Miami, Florida Federal regulators govemmg the City of Miami CDBG program requires that a partapaong jurisdiction provide citizens with reasorsDk notice nt and an Woorfiwity to comment on any ameMnems to the CDBG program. Additionally. the public is being advised of MW W M -ft to the CDBG funds program all of which amendments are indicated below: AMENDM@RS TO 271h YEAR CDBG PROGRAMS DisCwsion and proposed resolution autariAng the transfer of: CDBG CLOSE4UT 2001-2002 - ECONOMIC DEVELOPMENT CATEGORY FUNDED NET DRAWN 0.06E art AGBIfiX Downtown Miami Partnership, Inc. �4lMII 150.000.00 AtlQIRQ 149.413.52 AffgiRQ 585.48 Hated Hernandez Housing XW Ewomic Devebomert 150,000.00 147,113.16 2,886.84 EdgewraM Ecordmic Development Corp.. Inc. 100,000.00 99,999.92 0.08 Neighbors and Neighbors Association, Inc. 150,000.00 149,994.21 5.79 AlWatleh Business DevelopmenrNMority.Inc. 150,000.00 149,491:87 508.13 Camara da OWN= LAM de los unides PiiiIED. 200.000.00 199,993.66 6.34 Said Bumress OpparWnily Center. Inc. 265.000.00 264,919.03 80.97 Orrkga Fash as 50.000.00 - 50,000.00 C7bofo0aitrsdfNddxrxdYad,YCMmttaumialYtlaWCeaa 150.000.00 142,740.02 7,259.98 Wad d life Com env CorwabDri, Inc. 100 000.00 97 480.18 2.519.82 TAW / IAM,14557 2nN YEAR CIN CLOSE-OUT 20 1111110111MCKrEGORY FUNDED FET DRAWN CLOSE Our _ del lLouswcooperative. WK. 58000.000 AMOmom 56� 1 ,038.95 Jubilee Communtty Development Corporahm, Inc. 107.238.00 107.236.50 1.50 East lick Havana Community Dewebpmem Corp.. Inc. 225.000.00 223.970.29 1,029.71 GAME Development Corporation of Smth Ronda. her. 82.762.00 74.196.56 8,565.44 Miami -Dade Community Development, Inc. 5000.00 43,301.41 6,698.59 Allapalteh Business Devekpmern Autmriry. Inc. 75.000.00 74,935.96 64.04 Greater Miami Neighborhoods, Inc. 75.000.00 73,469.99 1,530.01 Haven Economic Develiopment. her. 50 ODO.00 49,4D4.37 595.63 TOM 1 00 11 13 1 FUNDED rETDMMIN CLOSEOUT AOM AaapanahCommwdlyAction. Inc. AMDJAD 350.000.00 r;!!fQlSQ 343.234.89 A 6.765.11 Altematve Programs, Inc., The 75.000.00 72.173.92 2,826.06 Aspire of Florida. Inc. 55.500.00 54.323.19 1,176.81 Catholic Charities of the Nddiocese d Miami, MoSagrada Familia 75.000.00 74,804.77 195.23 CatlnkDunks dteNthOomseotlim.hcJNobeDan Child Gre 45,000.00 44,946.08 53.92 CWMkDrsit afftNdr6k -ofMa i,IncJS9vicasla0e80alr 28.500.00 27.931.00 569.00 Cantu for hdormatoo 5 Oneffthah, bc. (Child Adore Project) 66,500.00 66,307.62 192.38 The Children's Psyddatric Center, lox. 20.000.00 19.535.54 464.46 Coconut Grove Cares, her. 100.000.00 99.999.80 0.20 Colombian American Service Association, Inc. 25,000.00 21,497.99 3,502.01 Carmntly Cornmttae ler DeveloDmentd Ha limps, leer. 25,000.00 24,993.99 6.01 DB Moos Swim Center, Inc. 271,721.00 265,825.68 5,895.32 Deaf swam Bureau. Inc. 30.000.00 27,659.39 2,340.61 Domaxan-Ame ican Nab" Foundation, Inc. 25,000.00 13,406.04 11,593.96 Farn Ayis Yen Nan M y Ami. Inc. 35,000.00 20,896.61 14.103.39 Rlt/-Five Yeas and Up, Inc. 25,000.00 24,999.43 0.57 First WOW Methodist Church of Miami (Hot Meals) 21,000.00 20.999.80 0.20 Jam F ScottCameR iryAssociation 100.000.00 97,918.45 2.061.55 IODCO Child Care 100.000.00 98,581.99 1,418.01 Lias Hone for the Bbd, Inc. 80,000.00 77,144.73 2,855.27 Lite Henna kii ides and flubagn Cenarsd Dade Carwg iicJ Pro Saud 65,000.00 64,993.30 6.70 I.WeHanAGWmarid 1, mCerersdDtlrCawdy.klBtleAyMss 260,000.00 258.92953 1.070.47 Ubab Coy Opl' ', Chub of Florida Inc. 40.000.00 39.706.64 293.36 Mari J, Home and Hospital ler theAgK inc. / Douglas Gaderhs 35,000.00 34.669.81 330.19 Rahe FendwM Clinic 50.000.00 47,700.65 2.299.35 Regis [base, Inc. 20,000.00 19.999.72 0.28 SoWrwaesocial Services Program. Inc. 125,000.00 123,66)3.47 1,111.53 Urged, mc. 25,000.00 23.820.59 1,179.41 Yrtims Service Cager, Inc. 25,000.00 24,602.16 397.84 Jewish Community Services 55,000.00 52,41558 2.584.42 Mel. HafthAssociates 63,944.00 34,202.39 29,741.61 Aston cornmurvity CMhr. her. 325,000.00 324.994.25 5.75 Asaochtm far Nle Development of be Exceptional. Inc. 54.085.00 54,07286 12.14 Halban Am scan Fordaton. Incl Eberly 75.000.00 54233.29 20,765.71 cowfor-i'hl Sludiftlinc. 66.500.00 31,317.87 35,182.13 The hang Men's Chisbah Association of Greater Memi,trx.lCanarBrawir 41,500.00 34,892.61 6,607.39 The lbug Men's ChrktenAswciaton of Greater Ment. art I trgermtraW Bra ch 50.ODD.00 43.32756 6.672.42 TW<M XIS%000.W 2ANDAL21 1 .79 COMI CLOSE CUT -7L02- FU DED FET ORAVIN CLOSE ORr NET Dike / Mari Lei Ckaa ice350.000.00 2 10A� NET oface / Miami Dem ci 485.000.00 465,1WA 19,236.14 Farts and Recreation / Disabilities 122.000.00 105,16151 16.838.49 TOW_ 1 1 7 1 TM tie d 5389.9:i4A4 d am ands tram ore daemd d 271h Yaw CORG CbraalE we be to ale MAIMMIN Fapde Treat Program. This ba skr is for to rshabilolton of pertdpalrg haiersea and tuba aallaimnq the lather of any C, ed I Fapde Tleahreww Program finds ilot spelt in Nle 28M Progarn Yaw to the 20 Props 1Wr. Dacussw and p000sed resobton aunlorwrg: OF RM YEAR PROGRAM FUNDS CATOOM "w= ANDONT CDBG Ropam UVk Havana Homeownership Test S113MI000.00 HOMEP opina District 4 ftwig PM Project I 55001000.00 DlsmlmMh i d proposed raeoAA app w. be Policies rshbd b ore firW rq of be Hor®g Oevesp eateulopM title 29b Year =6 MRogan Dkcusaah ad prepeeed resolutan awlormrg: RF/Y.LOG1nD110PWAPROSa1W fFDOS DEOBl1RAtE FUNDS Fil01k ALdDG1E FNDS TD: _T AMOUR AMOUNT e WI 5425 000.00 M1010m Inc. $4M000.00 The paoeaad raasscean to INUM s, Vic. s Mae pads, a pawnesa aeparw b as Swan Ha fafey and Or OMloprwa ad r Baba "IdsMiYa1(171 ad dhow lMwe wabb hom bwieame peawo wftwar HWAD6. N .. hsasdindhleoaaaap rrmrraed b dyed ewe ewer ft , The meeerSee is axes" es" bore hwwer'aWaw. O - 1f w sa„tD1 !h.![!�