HomeMy WebLinkAboutR-98-0587J-98-291
5/11/98
RESOLUTION NO. -911-
A RESOLUTION ESTABLISHING A POLICY WITH RESPECT
TO AFFORDABLE HOUSING PROJECTS RECEIVING
PROJECT FUNDING FROM THE CITY OF MIAMI THROUGH
THE CDBG, HOME AND SHIP PROGRAMS, REQUIRING A
LEVERAGING FACTOR AS A CONDITION FOR SECURING
PROJECT FUNDING OF A MINIMUM OF A ONE (1) TO
THREE (3) FOR HOMEOWNERSHIP PROJECTS AND A
MINIMUM OF ONE (1) TO FIVE (5) FOR RENTAL PROJECTS
WITH RESPECT TO OTHER PROJECT FUNDING SOURCES
INCLUDING BOTH PUBLIC AND/OR PRIVATE SECTOR
SOURCES.
WHEREAS, in the City's there exists a severe shortage of housing within the affordability
range of families and individuals of low and moderate income; and
WHEREAS, the City Commission recognizes that the participation of both the public and
private sectors is necessary to foster the development of housing affordable to low and moderate
income families and individuals in the City; and
WHEREAS, it is recommended by the Economic Development and Transportation
Committee that the City Commission establish a policy that requires all affordable housing
projects requesting project funding from the City of Miami through the CDBG, HOME and SHIP
Programs, be required to leverage other public and private sector funds in connection with said
project; and
CITY COMMUMORT
NMT1 OF
JUN0 9"
PA"Pk0jan No,
98- 587
WHEREAS, it is further recommended by said Committee that the minimum leverage
ratio shall be one (1) to three (3) for homeownership projects and a minimum of one (1) to five
(5) for rental projects in order for any affordable housing project to secure City assistance through
the aforementioned housing programs;
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 thereto and incorporated herein as if fully set forth in this Section.
Section 2. A policy is hereby established whereby any affordable housing project(s)
receiving project funding from the City of Miami through the CDBG, HOME and SHIP
Programs, shall be required to secure other project funding from other sources which will
leverage the City's assistance at a minimum of one (1) to three (3) for homeownership projects
and a minimum of one (1) to five (5) for a rental housing project.
Section 3. This Resolution shall become effective immediately upon its adoption.
PASSED AND ADOPTED this 9th day of June
1998.
JOE CAROLLO, MAYOR
In accordance with Miami Code Sec. 2-36, since the Mayor did not indicate approve i of
this legislation by signing it in the designated place provided, sai,i inn; !?1? :> : -,ovs
becomes effective with the elapse of ten (10) days from the date of Cc rr;ssic.'i r as;
regarding same, without the Mayor a rcising
ATTEST:
1+1lalte J. F an, City Clerk
WALTER J. FOEMAN
CITY CLERK
2
98- 587
PREPARED AND APPROVED BY:
LIND KELLY KE SO
ASSISTANT CITY ATTORNEY
LKK/csk/W23 59
98- 587
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO : The Honorable Mayor, Joe Carollo and
Members of the City Commission
FROM : LJUn I . arshaw
City Manager
RECOMMENDATION:
27h
DATE : May 11, 1998 FILE :
SUBJECT : Resolution Establishing a
Leveraging Policy for Affordable
REFERENCES: Housing Projects
ENCLOSURES: City Commission Agenda Item
May 26, 1998
It is respectfully recommended that the City Commission adopt the attached resolution, establishing
a policy that requires all affordable housing projects requesting project funding from the City of
Miami, through the Community Development Block Grant (CDBG) Program, Home Investment
Partnership (HOME) Program, and the State Housing Initiatives Partnership (SHIP) Program will
be required to leverage other public and private sector funding to develop the proposed housing a
project.
BACKGROUND:
Since 1986, the City of Miami has recognized that the participation of both the public and private
sectors is necessary to facilitate the development of affordable housing for moderate income
families and individuals in the City. To date, approximately 1,232 new housing units have been
constructed in the City, through the cooperative efforts of City government, not -for -profit
Community Housing Corporations (CDCs) and private local financial institutions. Over the next
two (2) years, an additional 1,422 affordable housing units are planned for development in the City
by various Community Development Corporations and/or private sector developers with financial
assistance from the City, County, State and Federal governments.
In an effort to expand the production of new affordable housing units in the City of Miami, it is
recommended that the City Commission approve the attached resolution requiring affordable
housing developers to secure additional project financing from other sources in order to obtain City
financial assistance for a housing project which is being planned in the City. For homeownership
projects, the new policy would require a developer to achieve a minimum of a one (1) to three (3)
leveraging ratio of City assistance to other public and private sector funding, prior to the City
providing the developer with a firm commitment for City funding. Moreover, for rental housing
projects, the new policy would require a developer to achieve a minimum of a one (1) to five (5)
leverage ratio of City assistance to other public and private sector funding, prior to the City
providing the developer with a firm commitment for City funding.
JGP/CMC/GCW/JBH:vh
c: Gwendolyn C. Warren, Director
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