Loading...
HomeMy WebLinkAboutR-02-0014J-02-038 1/8/02 RESOLUTION N0. A RESOLUTION OF THE MIAMI CITY COMMISSION AMENDING RESOLUTION NO. 00-867, ADOPTED SEPTEMBER 28, 2000, WHICH ESTABLISHED THE HOUSING AND COMMERCIAL LOAN COMMITTEE ("COMMITTEE"), TO AUTHORIZE THE CITY MANAGER OR DESIGNEE TO APPROVE OR DISAPPROVE SUBORDINATION AGREEMENTS, LOAN RESTRUCTURING PLANS AND/OR LOAN REPAYMENT PLANS FOR SPECIFIC HOUSING LOANS AND GRANTS PROVIDED THROUGH THE CITY'S SINGLE FAMILY REHABILITATION AND HOMEBUYERS FINANCING PROGRAMS AND PROVIDING THAT ATTENDANCE OF FIVE MEMBERS OF THE HOUSING AND COMMERCIAL LOAN COMMITTEE SHALL CONSTITUTE A QUORUM FOR THE PURPOSE OF CONDUCTING A COMMITTEE MEETING. WHEREAS, Resolution No. 00-867, adopted September 28, 2000, authorized and directed the City Manager to establish an eleven -member Housing and Commercial Loan Committee to approve/disapprove certain housing and commercial loans and/or grants to be provided by the City through the CDBG, HOME and SHIP Programs; and WHEREAS, with the adoption of Resolution No. 00-867, the City Commission further granted authority to the Committee to approve or disapprove all Loan applications for funding of affordable housing projects and commercial. (business) projects Rescinded by 0-13030 MEO ft )A p I P 2N2 14 and related transactions including, but not limited to, subordination agreements, loan restructuring plans and/or loan repayment plans in the City's loan portfolio; and WHEREAS, through the abovementioned legislation, the City Commission authorized and directed the City Manager or designee to approve or disapprove specific housing loans provided by the City through the City's CDBG funded Single Family Rehabilitation Program (one to four units) in an amount not to exceed $80,000 per transaction, and SHIP funded Single Family Rehabilitation and Homebuyers Financing Programs in an amount not to exceed $40,000 per transaction; and I&OSOX r WHEREAS, at its meeting of September 28, 2001, the Housing and Commercial Loan Committee expressed concerns regarding the time sensitive nature of assisting homeowners seeking to refinance first mortgages on their respective residences; and WHEREAS, at its meeting of September 28, 2001, the Housing and Commercial Loan Committee directed the City Administration to seek City Commission approval of an amendment to Resolution No. 00-867, to delegate to the City Manager or designee authority to approve subordination agreements, in addition to authority to approve or disapprove loan restructuring and repayment plans for homeowners that have received financial assistance through the City's Single Family Rehabilitation and Homebuyers Financing Programs; and Page 2 of 5 02- 14 qb L7 WHEREAS, at the same meeting, the Committee also directed the City Administration to seek City Commission approval to amend Resolution No. 00-867 to provide that the attendance of five members at a meeting would constitute a quorum; 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. Resolution No. 00-867, adopted September 28, 2000, is amended in the following particulars:!/ RESOLUTION NO. 00-867 Section 3. The City Manager is hereby authorized and directed to establish an eleven (11) member Housing and Commercial Loan Committee to approve/disapprove certain housing and commercial loans and/or grants to be provided by the City through the CDBG, HOME and SHIP Programs which shall be comprised as follows: (a) the Chairperson appointed by the Mayor; (b) one (1) member who is an active affordable housing provider; Words and/or figures stricken through shall be deleted. Underscored words and/or figures shall be added. The remaining provisions are now in effect and remain unchanged. Asterisks indicate omitted and unchanged material. Page 3 of 5 C (c) three (3) members with private real estate lending experience; (d) three (3) members with private commercial .Lending experience; and (e) three (3) members appointed by the City Manager from the City Administration. Section 4. The attendance of five members of the Housing and Commercial Loan Committee shall constitute a quorum for the purpose of conducting a Committee meeting. Section 45. Section �6. The City Manager or h -i-& designee is hereby authorized to approve or disapprove specific housing loans provided by the City through the City's CDBG funded Single Family Rehabilitation Program (one to four units) in an amount not to exceed $80,000 per transaction, and SHIP funded Single Family Rehabilitation and Homebuyers Financing Programs in an amount not to exceed $40,000 per transaction. Section 7. The City Manager or designee is authorized to approve or disapprove subordination agreements, loan restructuring _ plans and/or loan repayment plans for specific housing loans/ rants provided by the City through the Single Family Rehabilitation and Homebuvers Financina Proarams. Section 8. The City Manager is authorize&2 to execute the necessary documents, in a form acceptable to the Citv Attornev, for said purpose. Section -69. 21 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 Code provisions. Page 4 of 5 � '_ L Section -710. Section --11. Section 3. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.!' PASSED AND ADOPTED this 10th day of January 2002. Z , jl-, az 1" 9" MANUEL A. DILA YOR 4or CITY CLE APPROVED AS TO FORM AND CORRECTNESS/ 4JA.NDRO VILA ELLO ATTORNEY W591.5:tr:LB:BSS 3i if the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days from the date it was adopted and passed. If the Mayor vetoes this Resolution, it shall not become effective unless the City Commission overrides the veto. Page 5 of 5 61 ! • CITY OF MIAMI, FLORIDA CA=17 MEMORANDUM TO: The Honorable Mayor and Members of DATE: DEC 2 7 2,N_1FILE: the City Commission FROM: 1 Car" los A. Gimenez City Manager RECOMMENDATION: SUBJECT: Resolution Amending Resolution No. 00-867 on the Housing and Commercial Loan Committee REFERENCES: City Commission Meeting ENCLOSURES: of January 10, 2002 It is respectfully recommended that the City Commission adopt the attached resolution amending Section 3 of Resolution No. 00-867 by establishing a policy that the attendance of five (5) members of the Housing and Commercial Loan Committee shall constitute a quorum for the purpose of conducting a commis_ a meeting a;�d Section 5 of said Resolution by delegating and authorizing the City Manager and/or his designee to approve or disapprove homeowners' requests for subordination agreements, loan restructuring and/or repayment plans for those households that have received financial assistance through the City's Single Family Rehabilitation and Homebuyers Financing Programs. BACKGROUND: At its meeting of September 28, 2000, the City Commission adopted Resolution No. 00-867, which authorized and directed the City Manager to establish an eleven (11) member Housing and Commercial _Loan Committee for the purpose of approving and disapproving specific housing and commercial loans and/or grants provided by the City through the Community Development Block Grant (CDBG), Home Investment Partnership (HOME), and State Housing Initiatives Partnership (SHIP) programs. Resolution No. 00-867 further empowered the Committee to approve or disapprove subordination agreements, loan restructuring and/or loan repayment plans submitted by homeowners or an applicant relative to the City's existing housing or commercial loan portfolio, and granted authority to the City Manager or his designee to approve or disapprove specific housing loans provided by the City through the City's CDBG, SHIP and Home funded Single Family Rehabilitation and Homebuyers Financing Programs. Over the past several months, a substantial number of homeowners who have received financial assistance through the Single Family Rehabilitation and Homebuyers Financing Programs have refinanced the first mortgages on their residences to take advantage of the reduction in today's mortgage interest rates. In most instances, homeowners are required to secure City of Miami approval to subordinate its second mortgage in favor of a new first mortgage in order to complete the refinancing transaction. Pursuant to Resolution No. 00-867, a homeowner's request for a subordination of a City mortgage requires approval of the Housing and Commercial Loan Committee. At its meeting of September 28, 2001, the Housing and Commercial Loan Committee adopted a motion directing the City Administration to seek City Commission approval to amend Resolution No. 00-867 by delegating the City Manager and/or his designee authorization to approve or disapprove subordination agreements, loan restructuring and repayment plans submitted by homeowners that have received financial assistance through the Single Family Rehabilitation and Homebuyers Financing Programs. At the same meeting, the Committee also directed the City Administration to seek City Commission approval that would establish a policy that the attendance of five (5) of the eleven (11) committee members at a meeting would constitute a quorum. In an effort to streamline the process and be more responsive to homeowners seeking to refinance their first mortgages and/or restructure their home improvement loan with the City, City Commission adoption of the attached resolution is recommended. The attached resolution amends Resolution No. 00-867 and thereby effectuates the Committee's recommendations. B/GCW/JBH s 2 try ^n va J-00-796 9/28/00 RESOLUTION NO. U 0 0 - �t A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENTS, RESCINDING RESOLUTION NOS. 98-580 AND 00-418 IN THEIR ENTIRETY, THEREBY ABOLISHING THE HOUSING LOAN COMMITTEE; FURTHER AUTHORIZING AND DIRECTING THE CITY MANAGER TO ESTABLISH AN ELEVEN (2.1) MEMBER HOUSING AND COMMERCIAL LOAN COMMITTEE TO APPROVE/DISAPPROVE CERTAIN HOUSING AND COMMERCIAL LOANS AND/OR GRANTS TO BE PROVIDED BY THE CITY OF MIAMI THROUGH THE COMMUNITY DEVELOPMENT BLOCK GRANT ("CDBG"), HOME INVESTMENT PARTNERSHIP ("HOME") AND STATE HOUSING INITIATIVES PARTNERSHIP ("SHIP") PROGRAMS; GRANTING AUTHORITY TO THE HOUSING AND COMMERCIAL LOAN COMMITTEE TO APPROVE/DISAPPROVE LOAN APPLICATIONS FOR FUNDING OF AFFORDABLE HOUSING PROJECTS AND COMMERCIAL (BUSINESS) PROJECTS AND RELATED TRANSACTIONS, INCLUDING, BUT NOT LIMITED TO, SUBORDINATION AGREEMENTS, LOAN RESTRUCTURING PLANS AND/OR LOAN REPAYMENT PLANS FOR AFFORDABLE HOUSING PROJECTS AND COMMERCIAL LOANS IN THE CITY'S LOAN PORTFOLIO; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO APPROVE/DISAPPROVE SPECIFIC HOUSING LOANS PROVIDED BY THE CITY THROUGH THE CITY'S CD13G FUNDED SINGLE FAMILY REHABILITATION PROGRAM AND SHIP FUNDED SINGLE FAMILY REHABILITATION AND HOMEBUYERS FINANCING PROGRAM; DIRECTING THE CITY MANAGER TO PRESENT EACH APPROV:D LOAN TO THE STATE OF FLORIDA FINANCIAL EMERGENCY OVERSIGHT BOARD FOR REVIEW AND FINAL APPROVAL; AND APPROVING THE CITY OF MIAMI LENDING POLICY GUIDELINES, ATTACHED HERETO AND MADE A PART HEREOF, TO IMPLEMENT THE COMMERCIAL LOAN PROGRAM. 4 (p r `- • i ' LL 1. L YL r i S CIT':' i4Cp kl Ptd •� q WHEREAS, Resolution No. 98-580, adopted June 9, 1998, authorized and directed the City Manager to appoint a sever. (7) member Housing Loan Committee for the purpose of recommending approval/disapproval of loans and/or grants provided by the City of Miami (the "City") through its Community Development Block Grant ("CDBG") funded Single Family and Multifamily Rehabilitation Programs, Home Investment Partnership Program ("HOME"), and the State Housing Initiatives Partnership Programs ("SHIP"), in response to findings and concerns identified by the U.S. Department of Housing's and Urban Development's District Office of the Inspector General ("OIG") in its Audit Report dated March 25, 1998, regarding the City's loan underwriting procedures; and WHEREAS, the composition of the Committee, approved pursuant to Resolution No. 98-580, was comprised of a Chairperson appointed by the Mayor, four (4) representatives from the private sector with real estate lending and/or affordable housing development experience and three (3) representatives from the City Administration; and WHEREAS, at its meeting of September 28, 1999, with the adoption of Resolution No. 99-705, the City Commission approved 2c Page 2. of 8 r a modification to the City of Miami Local Housing Assistance Plan for the SHIP Program, which resulted in the expansion of the number of housing assistance programs available to very low, low and moderate income families residing in the City of Miami; and WHEREAS, since October 1999, with the establishment of the Homebuyers Financing and Single Family Rehabilitation Programs, which provide a maximum of up to $40,000 in financial assistance to eligible households for the purchase of a home or the - rehabilitation of an existing home, respectively, the City has experienced a substantial increase and demand from potential homebuyers and current homeowners for financial assistance; and WHEREAS, pursuant to Motion -99-975, adopted December 14, 1999, the City Commission authorized and directing the City Manager and the City Attorney to proceed with the termination or winding down of the agreement with Miami Capital Development, Inc. and obtain the loan portfolio from said entity; and WHEREAS, subsequently, Resolution No. 98-580 was amended by the adoption of Resolution No. 00-418 on May 11, 2000, to change the designation of individuals to be appointed as members of the City Housing Loan Committee by (1) eliminating the appointment Page 3 of 8 ,. of an individual representing Miami Capital Development, Inc., (2) providing for the appointment of a third member with private real estate lending experience, and (3) providing for the City Manager's appointment of individuals from the Departments of Planning and Zoning and Real Estate and Economic Development as eligible members of said Committee; and WHEREAS, pursuant to Resolution No. 00-413, adopted May 11, 2000, the City Commission designated the Little Haiti Credit Union and Latin Chamber of Commerce (CAMACOL) as the administrative entities to assist the City in its efforts to reestablish a Commercial Loan Program that creates a public/private partnership to stimulate business development and growth in the City; and WHEREAS, pursuant to Resolution No. 00-755, adopted September 14, 2000, the City Commission designated the Tacolcy Economic Development Corporation, Inc. as an administrative entity to assist the City in its efforts to reestablish a Commercial Loan Program that creates a public/private partnership to stimulate business development and growth in the City; and Page 4 of 8 WHEREAS, presently the Department of Community Development is responsible for servicing the loan portfolio previously originated and managed by Miami Capital Development, Inc.; and WHEREAS, the City Commission directed the Administration to develop guidelines for the Commercial Loan Program; and WHEREAS, -in an effort to be more responsive to the residents of the City, it is recommended that the City F Commission grant authority to the City Manager or his designee to approve/disapprove specific housing loans provided by the City through the CDBG and SHIP funded Single Family Rehabilitation and Homebuyers Financing Programs and to establish a Housing and Commercial Loan Committee consisting of eleven (11) members and further directed the Administration to develop guidelines for the Commercial Loan Program; and WHEREAS, to accomplish the foregoing, it is in order for the City Commission to rescind Resolution Nos. 98-580 and 00-418, in their entirety, to abolish the existing Housing Loan Committee, and replace same with a newly established Housing and Commercial Loan Committee; and Page 5 of 8 w� it 2J - 1-4 0 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 hereby adopted by reference and incorporated as if fully set forth in this Section. Section 2., Resolution No, 98-580, adopted June 9, 1998, and Resolution No. 00-418, adopted May 11, .2000, are hereby oanCorescinded in their entirety, thereby abolishing the Housing Loan- Committee mmittee created pursuant to said Resolutions. Section 3. The City Manager is hereby authorized and directed to establish an eleven {11) member Housing and Commercial Loan Committee to approve/ disapprove certain housing and commercial loans and/or grants to be provided by the City through the CDBG, HOME and SHIP Programs which shall be comprised as follows: (a) the Chairperson appointed by the Mayor; (b) one (1) member who is an active affordable housing provider; (c) three (3) members with private real estate lending experience; (d) three (3) members with private commercial lending experience; and "A Page 6 of 8 0 • (e) three (3) members appointed by the City Manager from the City Administration. Section 4. Except as provided in Section 5 herein, the City of Miami Housing and Commercial Loan Committee is hereby granted the authority to approve or disapprove all loan applications for funding of affordable housing projects and commercial (business) projects and related transactions including, but not limited to, subordination agreements, loan restructuring plans and/or loan repayment plans in the City's loan portfolio. Section 5. The City Manager or his designee is hereby authorized to approve or disapprove specific housing loans provided by the City through the City's CDBG funded Single Family Rehabilitation Program (one to four units) in an amount not to exceed $80,000 per transaction, and SHIP funded Single Family Rehabilitation and Homebuyers Financing Programs in an amount not to exceed $40,000 per transaction. Section 6. The City Manager is hereby directed to present each approved loan transaction to the State of Florida Financial Emergency Oversight Board for review and final approval. Page 7 of 8 G • Section 7. The City of Miami Lending Policy Guidelines, attached hereto and made a part hereof, to implement zhe Commercial Loan Program are hereby approved. Section S. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.!' PASSED AND ADOPTED this 28th day of September , 2000. JOE CAROLLO, MAYOR ...nnrr''•�jlj�'t; Yvi� iV.i�T�li via... '• _ .. in `h: ..���. ^i 1 •n- Ai G:' ;.. z Mme' [F:g3Ctil11ii SPliilE:r WithOU: Ii'lF.� . ATTEST: I. _ tv VarK WALTER J. FOEMAN, CITY CLERK APP .TTORNEY 682:DF:IT:BSS CORRECTNESS '-� If the Mayor does not sign this Resolution, it shall become effective at the end of ten 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 8 of 8 az- 1:4 • • CITY OF MIAMI LENDING POLICY GUIDELINES A City of Miami Commercial Loan can only be approved to assist an identifiable small business concern (SBC) in accomplishina a sound business purpose. Whether the SBC is a proprietorship, partnership or corporation is not paramount to the eliaibility determination. Eligible and Ineligible Small Business Concerns For purposes of a Revolving Loan Fund (RLF) loan, a business may qualify for consideration provided it meets the following criteria: 1. Business is located or locating within the boundaries of the City of Miami 2. Business and/or Principals do not demonstrate the financial ability to obtain financing for the business with or without the participation of Local, State or Federal Government, through their direct or guaranteed loan programs. 3. Business is an equal opportunity employer. 4. Business is not relocating jobs, except where the loan applicant is forced to relocate due to circumstances beyond their control (i.e. government intervention, building demolition, etc.). 5. Project involves no negative environmental impacts. 6. Project impacts an adequate number of jobs (as defined by 24 CFR 209 (b)(1)(i)) to be created and/or retained. 7. Potential for jobs created are to be filled by City of Miami residents wherever possible. A First Source Hiring Agreement with the City of Miami will be required. 8. The business' ability to repay the loan. 0 r - DENIAL OF LOANS Loans will generally be denied for the following reasons: 1. If the funds are otherwise available on reasonable terms: (a) From the disposal at a fair price of assets not required by the applicant in the conduct of its business or not reasonably necessary to its potential growth, (b) Through the use of personal credit and/or resources of the owner, partners, management, or principal stockholders of the applicant, (c) From other Government agencies which provide credit specifically for the applicants' type of business, or (d) From other known sources of credit; 2. For unsatisfactory credit history during the last twelve (12) months. 3. If a bankruptcy was discharged less than twelve (12) months ago. 4. If the loan would be for the purpose of: (a) Paying off a creditor or creditors of the applicant who are inadequately secured and are in a position to sustain a loss, (b) Providing funds for distribution or payment to the owner, partners, or shareholder of the applicant, (c) Refunding a debt owed to a small business investment company, or (d) .Replenishing working capital funds previously used for such purposes; (e) Paying of any tax lien or liability. 5. If the loan will provide for free funds for speculation in any kind of property, real or personal, tangible or intangible; 6. If the applicant is a charitable institution or non-profit enterprise, except for cooperatives which carry on a business activity for the purpose of obtaining pecuniary benefit for their members in the operations of their otherwise eligible small business concern; 7. If the applicant is a newspaper, book publishing company, magazine, or similar enterprise; 2c , s. If any of the gross income of the applicant, (or any of its principal owners) is derived from gambling activities, except for those small firms which obtain less than one third of their gross income from income or commission from the sale of official state lottery tickets under a state license; 9. If the purpose of the loan is to provide funds to an enterprise primarily engaged in the business of lending or investments or to any otherwise eligible enterprise for the purpose of financing investments not related or essential to the enterprise. 10. If the purpose of the loan is to finance the acquisition, construction, improvement, or operation of real property. 11. If the effect of the granting of the financial assistance_ will be to encourage monopoly or will be inconsistent with the accepted standard c{ the American system of free competitive enter, rise . d 12. If the Applicant and/or its principals are in a default status with previous financial commitments to the City of Miami or are indebted to the City of Miami. 13. If the Applicant and/or its principals have been debarred from doing business with federal, state, county or local governments. 14. If the proceeds of the loan will be used for moving an eligible business when the move is solely for the purposes of obtaining the benefits of borrowing from the RLF. MINIMUM AND MAXIMUM AMOUNTS LOANED 1. The minimum amount loaned will be $10,000.00 2. The maximum amount loaned for working capital will be .$25,000.00 3. The maximum amount for the purchase of equipment will be $35,000.00 4. The maximum combined loan amount shall not exceed $35,0000.00. n TERMS Repayment term shall be as follows: a) Working Capital - Up to five (5) years b) Equipment - Up involved, not to IRS Instructions (7) years. INTEREST RATES to the economic life of the assets exceed the IRS depreciation limits (See for Form 4562) and not longer than seven The interest rates of the City of Miami's RLF loans shall be 6 % per annum. EQUITY GOALS/REQUIREMENTS All loans shall be matched with the applicant's monies or other - commercial loans participation. Matching participation requirements will be: a) Existing Businesses_ - These are businesses having operating experience greater than 2 years. A minimum of 20 % of capital matching is required. b) Businesses Relocating into Economic opportunity Zones - Existing businesses (as defined above) relocating into one of the Economic Opportunity Zones identified by the City of Miami in its Five Year Consolidated Plan, will be required to match at least 15 % of the capital requirement. JOBS CREATION OR RETENTION: All loans will require a job created or retained for every $35,000.00, or parts thereof, loaned. There shall be a minimum requirement of one (1) low/moderately low-income job retained or created for a loan of less than $35, 000, oo. In the case of job retentions, the applicant must identify why the borrowed funds are required to retain the job. All applicants will be required to execute a First Source Hiring Agreement with the City of Miami, stating that City of Miami residents will have a preference over all applicants for any jobs created as a result of the granting of the loan. 02- 14 • OTHER CONSIDERATIONS: • 1. Married applicants shall sign Unlimited. Guaranties including their spouses, even if they are not part of the Company requesting the funds. 2. Collateral assignment of Life Insurance policies will be requested from every applicant's principal(s). The face amount of the policy shall be at least equal to the original loaned amount. No_ exceptions of this rule will be allowed. _ 3. Commercial Insurance Policies naming the City of Miami as loss payee in an amount of 120% of the loan amount shall be required from every applicant, i.e, fire, loss of income, liability, etc. All policies shall provide the City with mandatory written notices in cases of cancellation or material change. 4. In the cases of cooperation agreements involving banks or other institutions and the City of Miami, the City of Miami will have an equal standing as the other financial institutions as far as the collateral position of any and all real property or equipment pledge as security for the loan. S. Loans for Equipment will require UCC filings. The City of Miami must be in the first security position on these assets. 6. Once the loan is closed, recipient may not pledge, transfer, hypothecate, encumbrance or dispose of any asset purchased in whole or in part with funds from the City of Miami, without the written approval from the City of Miami. '7_ The City of Miami may impose late fees if the business does not pay on a timely manner. IN-HOUSE LOAN UNDERWRITING The Department of Community Development (DCD) will receive and underwrite all loan packages. The applicant shall submit an original and a copy of the entire loan package. All documents submitted, as part of a loan application will become property of the City of Miami. The following process will be followed: 1. All packages will be date and time stamped when received. 2. The package will be reviewed for completeness against the list of Documents and General Requirements shown on Attachment I. If any package is found to be incomplete, the agency that prepared the loan package will be sent a letter via fax indicating the missing item(s). A copy of the letter will be sent to the applicant. The agency submitting the loan package will be given five (5) working days to submit the missing item(s); if at the end of this period, the agency has not submitted the item(s), the entire package will be returned to the agency indicating that the application is closed. A copy of the letter returning the package will be sent to the applicant. It will be the agency's responsibility to obtain the missing items and to resubmit the package as a new _ application. 3. The Agency prepaing the -Loan application will obtain the, necessary credit reports and perform the underwriting tasks within a period of 30 -days. 4. If DCD' s underwriters agree with the loan request, DCD will prepare its recommendations for submission for the next feasible loan committee meeting. A copy of the recommendations will be given to the agency that submitted the loan package and to the applicant. 5. If DCD's underwriters do not agree with the loan package as presented, DCD will prepare conclusions and / or recommendations to the agency and the applicant for their response. If the response from the applicant is not received within five (5) working days, the application will be closed. APPROVAL PROCESS The Loan Committee will review all applications for loans from the RLF. The Loan Committee can recommend approval or deny any loan application. If the Loan Committee denies a loan application, the applicant and the agency that prepared the loan package will be advised in writing with an explanation as to why the loan was denied. This will close the case file as far as the City of Miami is concerned. If the agency and the applicant rework the loan and wish to have it re -considered, it will be considered a new application. The applicant will have to submit a new application and package for the revised loan to be underwritten. If the Loan Committee approves the loan application, the loan is then forwarded to the State of Florida Financial Oversight Board for its approval. If the Oversight Board approves the loan, closing will take place within 10 workdays after the Oversight Board approval. APPLICATION FEE There will be a non-refundable application fee of $75.00. This Application Fee must accompany the loan package. The Application Fee will be cashed when the package is accepted for` underwriting. SERVICING The City of Miami will service all loans made from the City's RLF. The City reserves the right to sell the loan or transfer the loan or the servicing of the loan at its discretion. Appendix I - Documents and General Requirements • Business information 1. Business Loan Application. 2. Authorization for Services. 3. Business Financial Statements for the last two tax years. 4. Tax Returns (Federal Income Tax, State Income Tax, State Intangibles Tax, Property Tax) for the last two tax years. 5. Current Financial Statement of Business with supporting Bank Statements (not older than 90 days). i • • 6. Inventory of Fixtures and Equipment- owned listing description, serial number, year purchased, condition and estimated current value. 7. History of Business including detailed Business Plar. with 3 -Year Projections. Agency assisting the applicant with the loan package must review, modify and indicate concurrence with the Business Plan submitted by the Applicant. 8. Detailed Statement on use of Loan Proceeds. 9. Provide list of Fixtures and Equipment to be purchased accompanied by three (3) detailed quotations for each item listed. 10. Cash Flow Projections and impact on Financial Statements reflecting infusion of loan proceeds. Agency assisting the applicant with the loan package must review., modify and indicate concurrence with the Cash Flow Projections submitted by the Applicant. 11. Copies of Pending Contract or Sales Orders and pending Purchase Orders. 12. Copy of Lease or Letter of Intent to Lease executed by the landlord or legal representative. 13. Copies of Business Documents: Partnership Agreements, Articles of Incorporations, current Certificate of Good Standing, current Fictitious Names Registry, etc. 14. Copy of the Business' current Certificate of Use, Occupational License (City and County), State License (as appropriate). 15. Employment Compliance Form for Job Creation / Retention Goals. 16. First Hiring Source Agreement with the City of Miami. 17. Current (in forms specified by the City of Miami) and Projected Employee Data. ,i }t 9 I A a 18. Executed and undated IRS Forms 8621 - Tax Information. Authorization and Form 4506 - Request for Transcript or Copy of Tax Form Personal Information 1. Completed Personal Financial Information Form (not older than 90 days). 2. Personal Income Tax Returns filed for the last two (2) years including: W-2, Schedule C for sole proprietorship, Form 1.065 for partnerships and K -1s for S -corporation stockholders. 3. Personal Resume of principals of applicant. 4. Executed and undated IRS Form 6821 - Tax Information Authorization and Form 4506 - Request for Transcript or - Copy of Tax Form. 5. If any of the principals has experienced any credit problems especially during the last twelve (12) months, a satisfactory explanation of these problems must be provided with the application. Other 1. Copy of Warranty Deeds of all Real Estate owned by Business and/or Guarantors and copy of closing statements evidencing original purchase. 2. Evidence of Tax Assessment Values and any existing appraisals not older than 6 months. The appraiser must be State Certified and have at least two years of having been licensed. 3. Evidence of existing mortgage balances and copy of corresponding mortgage documents. 4. Written evidence of updated insurance coverage on property owned. 0 Commercial Lending Program Scope of Work for Participating Agencies 1. Prepare and Complete all sections of the "Technical Assistance Intake Checklist" and the (Attachment I). original document is to be kept by Agency in the Applicant's File. 2. If conclusion of Step I above is that applicant qualifies to receive assistance, applicant should complete the "Technical Assistance Request for Assistance Form." (Attachment II). Original document is to be kept by Agency in the Applicant's File. 3. Compile, all required documents to prepare and complete the loan application. (Attachment III). Documents to be included in Loan Package and Submitted to the City of Miami for Loan Underwriting. 4. Prepare (or review, modify and endorse the applicant's) Business Plan and projections of the impact of the loan proceeds on business profitability. To be submitted to the City of Miami for Loan Underwriting. 5. Assist the business with the preparation of the "Employment Compliance Form for Job Creation / Retention Goals" (Attachment IV). To be submitted to the City of Miami for Loan Underwriting. 6. Prepare an Executive Summary of the Loan Application explaining and justifying the approval of the loan. . To be submitted to the City of Miami for Loan Underwriting. 7. Submit the Loan Package to the City of Miami,- for Underwriting and Loan Approval. 8• Respond to the City Staff's request for missing documents or additional information that will enhance the likeliness of the loan being approved. 9. Participate in the presentation of the loan to the City's Loan Committee. 10. Work with applicant in revising the loan application and package if the City's Loan Committee issues a denial. P 11. Participate as advisor to applicant at the time the loan closing occurs. 12. Provide monthly monitoring of applicant's operations during the first (15t) year of the loan. Monitoring visits are intended to review the borrower's utilization of the loan proceeds and to determine if the business plan's objectives are being achieved. City of Miami staff may participate in these monitoring meetings. 13. Prepare and submit a report by the 5th (fifth) calendar day of the month following the visit communicating to the City of Miami the results of the monthly monitoring (See Attachment V). 14. Provide quarterly monitoring of applicant's operations during the second and subsequent years of the loan. City of Miami staff may participate in these monitoring meetings. T 15. Prepare and submit a report by the 5th (fifth) calendar day of the month following the quarterly visit communicating to the City of Miami the results of the quarterly monitoring (See Attachment V). 16. on the anniversary of the loan, the agency will obtain copies of the business licenses, will keep these copies in the project file and advise the City of Miami, as part of its quarterly report that the business is operating with active licenses. The agency will make these available to City of Miami staff for review. 17. on an annual basis, the agency will solicit the Tax Returns filed by the business (Federal Income Tax, State Income Tax, State Intangibles Tax, Property Tax), will --keep these copies in the project file and advise the City of Miami, as part of its quarterly report that the business has filed all the pertinent tax returns. The agency will make these available to City of Miami staff for review. The agency should review these returns and compare them to the information obtained during their quarterly monitoring meetings. 18. In the event of a loan default, the agency originating the loan must participate in the mitigation and/or recovery efforts.