HomeMy WebLinkAboutR-97-0094I
J-97-94
2/12/97
RESOLUTION NO. 9 "7 _ 94
A RESOLUTION, RELATING TO THE DEVELOPMENT OF
APPROXIMATELY 98 UNITS OF AFFORDABLE HOUSING
1N THE LITTLE HAVANA NEIGHBORHOOD 13Y THE EAST
LITTLE HAVANA COMMUNITY DEVELOPMENT
CORPORATION AND FLORIDA HOUSING COOPERATIVE,
INC. AND 21 UNITS OF AFFORDABLE HOUSING IN THE
ALLAPATTAH NEIGHBORHOOD BY ALLAPATTAH
BUSINESS DEVELOPMENT AUTHORITY, INC.;
AUTHORIZING THE CITY MANAGER TO ALLOCATE
FUNDING FROM THE CITY'S FY' 1995-96 STATE HOUSING
INITIATIVES PARTNERSHIP PROGRAM (SHIP PROGRAM)
IN THE AMOUNT OF $1,217,549 AS SET FORTH HEREIN;
FURTHER AUTHORIZING THE CITY MANAGER TO
EXECUTE INDIVIDUAL CONTRACTUAL AGREEMENTS, IN
A FORM ACCEPTABLE TO THE CITY ATTORNEY, WITH
THE AFOREMENTIONED COMMUNITY HOUSING
DEVELOPMENT ORGANIZATIONS (CHDO'S) FOR SAID
PURPOSE.
WHEREAS, in July, 1992, the State of Florida enacted the William E. Sadowski
Affordable Housing Act ("Sadowski Act"), which allocates a portion of new and existing
documentary stamp taxes on deeds on real estate transactions to local governments for the
development and maintenance of affordable housing; and
WHEREAS, the Sadowski Act provides a dedicated revenue source for affordable
housing and created the State Housing Initiatives Partnership Program (SHIP); and
CITY CCNLMISSIo.N
MEETING of
FEB 2 0 1997
Resolution No.
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WHEREAS, in August, 1994, the City of Miami was notified by the State of Florida that
the City would be eligible to receive $1.3 million in SHIP Program funds beginning with the
State's Fiscal Year 1995-96, and
WHEREAS, in November of 1996, pursuant to Resolution No. 96-851, the City
Commission approved the City's revised Local Housing Assistance Plan required by the State of
Florida for the City's continued participation in the State Housing Initiatives Partnership Program
(SHIP Program), and
WHEREAS, through the City's Local Housing Assistance Plan, the City proposes to
make available funding to not -for -profit Community Housing Development Organizations
(CHDO's), for the purpose of site acquisition, site development, construction and permanent
financing, in connection with the development of affordable homeownership units in the City; and
WHEREAS, approximately $1,200,000 is available through the City's Homeownership
Development Program and $100,000 is available through the City's Downpayment/Cl o sing Cost
Assistance Program this year; and
WHEREAS, in October of 1996, the City of Miami advertised the availability of SHIP
Program funding for the development of affordable homeownership units in the City; and
WHEREAS, the City Administration recommends the allocation of funding from the
City's FY' 1995-96 State Housing Initiatives Partnership Program (SHIP Program), in the
amount of $1,217,549 to the Allapattah Business Development Authority, Inc., East Little
Havana Community Development Corporation and Florida Housing Cooperative, Inc., in
connection with the development of 119 units of affordable housing in the City;
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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. Funding from the City's FY' 1995-96 State Housing Initiatives Partnership
Program (SHIP Program) is hereby allocated for the purpose of providing project development
financing and downpayment/closing cost assistance to the following not -for -profit Community
Housing Development Organizations (CHDO's) listed in the amount as set forth below:
Community Houshm Development Orwanizations: Amounts:
1. Allapattah Business Development Authority, Inc. $504,450.00
2. East Little Havana Community Development Corporation $298,522.00
3. Florida Housing Cooperative, Inc. $414,577.00
Section 3. The City Manager is hereby authorized" to execute individual contractual
agreements, in a form acceptable to the City Attorney, with the aforementioned Community
Housing Development Organizations (CHDO's), for the amount specified for each, for the
purpose of providing project development financing and downpayment/closing cost assistance in
connection with one hundred nineteen (119) units of affordable homeownership housing in the
City.
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.
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Section 4. This Resolution shall become effective immediately upon its adoption.
PASSED AND ADOPTED this 20t:h
ATTEST:
WALTE J'•F % EMAN
CITY CLERK
COMMUNITY DEVELOPMENT/NET
REVIEW:
ELBER . WATERS, DIRECTOR
COMMLNITY DEVELOPMENT/NET
PREPARED AND APPROVED BY:
LINDA KELLY KEARSON
ASSISTANT CITY ATTORNEY
LKK/B S S/pb/W 1454
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day of February , 1997.
PffnROLLO, MAYOR
REVIEWED AS TO ACCOUNTING,
BUDGETARY AND TREASURY
REQUIREMENTS:
MICHAEL\IVVIN, DIRECTOR
DEPARTMENT OF FINANCE
APPROVED AS TO FORM AND
CORRECTNESS:
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81
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO : Honorable Mayor and Members
of the City Commission
FROM : Ed d Marquez
P' `C'ity Manager
RECOMMENDATION:
DATE . FEB 1 1 1997 FILE .
SUBJECT : Resolution Relating to
Development of 119 Units of
Homeownership Housing
REFERENCES:
ENCLOSURES: City Commission Agenda
Item - February 20, 1997
It is respectfully recommended that the City Commission adopt the attached resolution,
related to the development of one hundred nineteen (119) units of homeownership
housing, planned for development by Allapattah Business Development Authority, Inc.,
the East Little Havana Community Development Corporation and Florida Housing
Cooperative, Inc. in the City. The attached resolution authorizes the City Manager to
allocate and disburse $1,217,549 in funding from the City's FY' 1995-96 State Housing
Initiatives Partnership Program (SHIP Program) as stated in Section 2 of the resolution,
for the purpose of providing project development financing and downpayment/closing
cost assistance to the aforementioned Community Development Housing Organizations
(CHDO's), in connection with the development of several housing projects planned in the
City. The attached resolution further authorizes the City Manager to execute individual
contractual agreements with each CHDO for the said purpose.
BACKGROUND:
In 1992, the William E. Sadowski Affordable Housing Act established the State Housing
Initiatives Partnership (SHIP) Program, which is administered by the State's Florida
Housing Finance Agency. SHIP Program funds are derived from set -aside allocations
from documentary stamp levies on real estate transactions statewide. In FY' 1995-96, the
City of Miami was allocated approximately $1.3 million in SHIP Program funding by the
State of Florida for the development of new affordable housing in the City.
In November of 1996, the City Commission through Resolution No. 96-851, approved
the City's Local Housing Assistance Plan in connection with the implementation of the
SHIP Program in the City. Through the City's Local Housing Assistance Plan, the City
provides project funding to not -for -profit , Community Housing Development
Organizations (CHDO's) for site acquisition, site development, construction and
permanent financing, for the development of affordable homeownership housing units in
the City.
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In October of 1996, the City of Miami advertised for project proposals from not -for -profit
Community Housing Development Organizations, in connection with the City's FY'
1995 SHIP Program allocation. Funding in the amount of $1,217,549 is being
recommended for disbursement from the City's FY' 1995-96 State Housing Initiatives
Partnership Program (SHIP Program) to the Allapattah Business Development Authority,
Inc., East Little Havana Community Development Corporation and Florida Housing
Cooperative, Inc.
The Allapattah Business Development Authority, Inc. proposal calls for the construction
of a 21 unit for -sale townhome project consisting of fifteen (15) 3 bedroom/ 1.5 baths and
six (6) 3 bedroom/ 2 baths. The 3 bedroom/1.5 baths and 3 bedroom/2 bath units will be
marketed at $71,000 and $72,500, respectively. The proposed 3 bedroom units with an
estimated monthly payment of $462.00, including principal, interest, taxes and
maintenance fees/insurance, would be affordable to families earning as little as $18,492
per year, which represents 4801% of the median. income in Dade County ($38,500) for a
family of four (4).
The project sponsor has secured a preliminary commitment for $484,045 in construction
financing from Trans_Atlantic Bank, $489,000 in both construction and permanent
financing from Metropolitan Dade County through the County's Documentary Surtax
Program and $484,000 in first mortgage financing from Pine Bank, in connection with
the development of the proposed $1.5 million townhome project.
The Allapattah Business Development Authority is requesting $504,450 in SHIP
Program funding to assist in part, in financing the construction of the proposed housing
project. Upon the completion of construction, the City's SHIP Program funds will be
converted into twenty-one (21) individual second mortgages of approximately $24,021,
to be recaptured by the City over a thirty (30) year period from the prospective
homebuyers. It is anticipated that the proposed $1.5 million housing project will generate
approximately $7,903 yearly in ad valorem tax revenues for the City.
The Florida Housing Cooperative, Inc. proposal calls for the construction of a 18 unit for -
sale condominium project consisting of eighteen (18) 2 bedroom/2 bath units, to be
marketed at $62,000. The proposed 2 bedroom units with an estimated monthly payment
of $391, including principal, interest, taxes and maintenance fees/insurance, would be
affordable to families earning as little as $15,640 per year, which represents 41 % of the
median income in Dade County ($38,500) for a family of four (4).
To date, Florida Housing Cooperative, Inc., has secured a preliminary commitment for
$432,000 in construction financing from Homes for South Florida, $594,000 in both
construction/permanent financing from Metropolitan Dade County through the County's
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Documentary Surtax Program, $90,000 in predevelopment funding through the City's
Home Program and $466,200 in conventional first mortgage financing for the prospective
homebuyers from Northern Trust Bank. The project sponsor is requesting a grant in the
amount of $414,577 for the construction of the project from the City through the City's
SHIP Program. It is anticipated that the proposed $1.5 million housing project will
generate approximately $5,183 yearly in ad valorem tax revenues for the City.
The East Little Havana Community Development Corporation proposal calls for the
construction of the Casa Grande Condominiums project, a 80 unit affordable
condominium development, to be located at 104 S.W. 9 Street, in the Little Havana
neighborhood. The thirteen (13) stony building will consist of fifteen (15) 1 bedroom/1.5
baths, twenty-three (23) 2 bedroom/2 baths and forty-two (42) 3 bedroom/2 baths units.
The 1 bedroom/1.5 bath unit will be marketed at $63,000, the 2 bedroom/2 bath unit at
$81,000 and the 3 bedroom/2 bath unit at $90,000. The proposed project will also consist
of approximately 7,400 square feet of commercial retail space, and a large community
room. The estimated monthly payment, including principal, interest, taxes and
maintenance fees/insurance for the one (1) bedroom unlit is $512/month, $607/month for
the two (2) bedroom unit and $658/month for the three (3) bedroom unit. It is anticipated
that the proposed $7.5 million housing project will generate approximately $41,821
yearly in ad valorem tax revenues for the City.
To date, the East Little Havana Community Development Corporation has secured
financing for the proposed project from the following sources:
SOURCE: AMOUNT:
Pacific National Bank $2,584,052
State of Florida Home Program $1,472,360
City of Miami Home Program $600,000
L.I.S.C. Foundation $1,236,000
Federal Home Loan Bank $500,000
Dade County Surtax Program $782,000 t
The project sponsor is requesting $198,522 in project funding from the City's SHIP
Program in connection with the construction of the proposed project and $100,000 in i
SHIP Program funding for the purpose of providing .downpayment/closing cost assistance
of $1,250 to approximately eighty (80) prospective homebuyers. Upon completion of
construction, the City's SHIP Program funding of $198.522 will be converted into eighty
(80) individual third mortgages of approximately $2,571, to be recaptured by the City
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over a thirty (30) year period from the prospective homebuyers. The $100,000 in SHIP
Program fiuiding would be recaptured by the City whenever the individual homeowner
sells or transfer ownership of his/her individual housing unit in the future.
The City is in a position to assist the private sector in the development of approximately
one hundred nineteen (119) new homeownership units in the Allapattah and Little
Havana neighborhoods, which would be affordable to low and moderate income families.
In an effort to further promote the development of new affordable housing units in the
City, City Commission ratification of the attached resolution is recommended.
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