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HomeMy WebLinkAboutR-94-0404J-94-4 08 RESOLUTION NO. 9 4— d 0 4 A RESOLUTION, WITH ATTACHMENTS, AUTHORIZING THE CITY MANAGER TO ACCEPT A HOME INVESTMENT PARTNERSHIPS PROGRAM GRANT (HOME PROGRAM) IN THE AMOUNT OF $3,757,000 FROM THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD), FOR THE DEVELOPMENT OF HOUSING AFFORDABLE TO LOW AND VERY LOW INCOME FAMILIES AND INDIVIDUALS IN THE CITY OF MIAMI, AS APPROVED BY THE CITY COMMISSION; APPROVING THE HOME PROGRAM GUIDELINES, ATTACHED HERETO AND INCORPORATED HEREIN; AND AUTHORIZING THE CITY MANAGER TO IMPLEMENT THE HOME PROGRAM IN ACCORDANCE HEREWITH; AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE ALL THE NECESSARY AGREEMENTS AND DOCUMENTS BETWEEN THE CITY OF MIAMI AND THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR IMPLEMENTATION OF THE PROGRAM. WHEREAS, in November, 1990, the Cranston -Gonzalez National Affordable Housing Act (NAHA) was signed into law; and WHEREAS, the centerpiece of the Cranston -Gonzalez Act is the Home Investments Partnerships Program (HOME Program), which represents the most significant and far-reaching piece of federal housing legislation to come out of Washington in well over ten (10) years; and WHEREAS, for fiscal year 1994-95, Congress approved $1.275 billion for the HOME Program which will be distributed by formula to participating states and units of local government to enable such entities to design affordable housing strategies tailored to the needs of their local markets; and rv,!� prat r, y c CITY COMUSSION bIEETING OF JU N 0 9 1994 R"Wudon No, 94-- 404 WHEREAS, the HOME Program affords states and units of local government the flexibility to fund a wide range of low-income housing activities through creative and unique housing partnerships among states and localities, private industry, and nonprofit organizations; and WHEREAS, the HOME Program allows these partnerships to respond to diverse local housing needs through an array of housing activities including moderate and substantial rehabilitation, new construction, tenant -based rental assistance and other related activities; and WHEREAS, in February, 1992, the City of Miami was designated as a participating jurisdiction (Pi) and is eligible to receive HOME Program funds; and WHEREAS, in April, 1994, the City of Miami was awarded a HOME Program grant in the amount of $3,757,000 from the U.S. Department of Housing and Urban Development for implementation of the Home Investment Partnerships Program; and WHEREAS, in April, 1994, the City of Miami's HOME Program Description guidelines were conditionally approved by U.S. HUD and funding in the amount of $3,757,000 is available, subject to the execution of the Funding Approval and Home Investment Partnership Agreement; 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 -2- 34- 404 thereto and incorporated herein as if fully set forth in this Section. Section 2. The City Manager, as Chief Administrative Officer for the City of Miami, is hereby authorized to accept a grant from the U.S. Department of Housing and Urban Development in the amount of $3,757,000 from the U.S. Department of Housing and Urban Development (HUD) for the development of housing for affordable to low and very low income families and individuals in the City of Miami, as approved by the City Commission. Section 3. The HOME Program guidelines, attached hereto and incorporated by reference, are hereby approved, and the City Manager is hereby authorized to implement said HOME Program in accordance with cited guidelines. Section 4. The City Manager is further authorized 1 to enter into and execute all the necessary agreements and documents, in a form acceptable to the City Attorney, between the City of Miami, the U.S. Department of Housing and Urban Development (HUD) and Community Development Housing Organizations (CHDOs) to implement said HOME Program. Section 5. This Resolution shall become effective immediately upon its adoption. 1 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. 94- 404 -3- PASSED AND ADOPTED this 9th day of 199 STEpHR P. CLARK, MAYOR ATTES . MATTY HIRAI, CITY CLERK COMMUNITY DE-i�TLOPMEWREVIEW: ASMEIyA, DIRECTOR TY DEVIELOPMENT DEPARTMENT BUDGETARY REVIEW: im S' , e -- OHA . SURANA ASSISTAAT CITY MANAGER REVIEWED AS TO ACCOUNTING AND TREASURY REQUIREMENTS: az'-e-� CARLOS GARCIA, DIRECTOR DEPARTMENT OF FINANCE PREPARED AND APPROVED BY: , le LINDA KELLY KEA SON ASSISTANT CITY ATTOR EY APPROVED AS TO FORM AND CORRECTNESS: P4- 404 -4- U.S. D_,artment of Housing and urban DeV .opment o 14 Mtn lt oG4oAk DE��'��� 'APR 141994 Jacksonville office, Region Iv 301 West Bay Street, suite 2200 Jacksonville, Florida 32202-5121 Mr. Cesar .H. Odio City Manager of Miami P.O. Box 330708 Miami, FL 33131 Dear Mr. Odio: 4.6CMA RECEIVED .Pa,a 1994 COEL MENi DES SUBJECT: HOME Investment Partnership Agreement M94-MC12-0211 Miami, Florida i ,P�or tal o4..w." •ice - too* 0 I am pleased to inform you that your HOME Program Description has been approved and to transmit to you the Fiscal Year 1994 HOME Investment Partnership Agreement in the amount of $3,757,000. The Partnership funds will allow the City of Miami to undertake affordable rental and homeownership housing activities. Enclosed is the Funding Approval and HOME Investment Partnership Agreement (three copies of HUD-40093), which constitutes the contract between the Department of Housing and Urban Development and the City of Miami. Failure to execute and return two copies of the Partnership Agreement within 60 days of the transmittal date may be deemed to constitute rejection of the funds and cause for HUD to determine that the funds are available for reallocation to other participating jurisdictions. You should note particularly that all funds must be committed within 24 months and expended within five years. The payment of funds under this program is by electronic funds transfer through the HOME Cash and Management Information (C/MI) System, which is a part of the HUD Line of Credit Control System (LOCCS). If there is a need to delete or. add individuals authorized to access the C/MI System, a LOCCS Voice Response Access Authorization form (HUD-27054, dated 8/92) must be prepared in accordance with the instructions which accompany the form. Also, if there is a need to change the depository account to which your HOME funds will be sent, a new Direct Deposit Sign-up form (SF- 1199A) must be completed by you and your financial institution. a4- 404 2 Additional information on completing both forms (HUD- 27054 and SF- 1199A) is contained in Notice CPD 92-18, Cash and Management Information (C/MI) System for the HOME Program, which was previously sent to the jurisdiction. Upon receipt of two copies of the Partnership Agreement (HUD-40093) executed by the jurisdiction, HUD will transmit to you the assigned Voice Response Participant Number and authorize you to access your HOME Investment Trust Fund Account in the United States Treasury. You are reminded that HOME activities are subject to the provisions of the Environmental Review Procedures for the HOME Program (24 CFR 92.352 and 24 CFR Part 58). Funds for certain activities may not be obligated or expended unless a release of funds has been approved in writing by HUD. A request for release of funds must be sent to our* Regional Office in Atlanta, accompanied by an environmental certification. Requests should be sent to 'HUD CPD Program Support Division, Richard B. Russell Federal Building, 75 Spring Street, SW, Atlanta, Georgia 30303- 3388. We look forward to the continuation of our constructive working relationship in the initiation and implementation of the City of Miamil's.Fiscal Year 1994 HOME Program and the delivery of this resource for addressing the housing needs of your community. If you or your staff have any questions or desire assistance in connection with this letter or other items relating to the HOME Program, please contact Linda Dresdner, HOME Program Coordinator, at (904) 232-1202. Enclosures cc: Dept. very 'ncerel yo rs m Chaplin 2_- anager, .6 Castaneda, Director of Community Development `�4- 404 =unding Approval ind HOME Investment Dartnership Agreement U.S. Department of Housing and Urban Development Office of Community Planning and Development rdle II of the National Affordable Housing Act OMB Approval No. 2501-0013 (Ekp. 6r30/94) lublio repotting burden for this oolle8flon of information is estimated to average 1.0 hour per response, including the time for r0ewingInstructl6ns, searching existing late sources, gathering and maintaining the data needed, and completing and reviewing the collection of Informatlon. Send comments regarding this burden estimate K any other aspect of this collection of Information, including suggestions for reducing this burden, to the Reports Management Officer, Office of Information Policies tnd Systems, U.S. Departmentof Housing and Urban Development, Washington, D.C. 20410-3600 and to the Office of Managementand Budget, Paperwork Reduction 'roject (2501.0013), Washingtoni, D.C. 20503. Do not send this completed form to either of time addressees. Participant Name r!i Address: Miami 2. Participant Number. M9 4 -MC 12 0 211 Dupont Plaza Ctr, Suite 420 300 Biscayne Blvd. Way 3. Tax identification Number: Miami, FL 33131 59-6000375 4a. HUD Geographic Locator Code No: 5. Appropriation Number: 6. Funding Approval Number: 7. FY: b. Countycode: 1968/025 • 0205 1 1994 a. Previous Obligation $ a. Regular Funds b. Community Housing Development Organization Reallocation s. Current Transaction 000 $ ' ' a. Regular Funds b. Community Housing Development Organization Reallocation yo. Revised Obligation g a. Regular Funds b. Community Housing Development Organization Reallocation 11. Special Conditions (check applicable box) 0a. Not applicable 12 Congressional. Re 4ate: b. Attached APR 1 This agreement between the Department of Housing and Urban Development (HUD) and Miami (the Participating Jurisdiction/Entity) is made pursuant to the authority of the Home Investment Partnerships Act (42 U.S.C.12701 et seq.). The Participating Jurisdiction's /Entity's approved Program Description/Application and the HUD regulations at 24 CFR Part 92(as now In effect and as may be amended from time to time) and this Home Investment Partnership Agreement, form HUD-40093, including any special conditions, :onstitute part of this agreement. Subject to the provisions of this agreement, HUD will make the funds for the Fiscal Year specified, available :o the Participating Jurisdiction/Entity upon execution of this agreement by the parties. All funds for the specified Fiscal Yeas provided by HUD oyformula reallocation are covered bythis agreement upon execution of an amendment by HUD, without the Participating Jurisdiction's execution :)fthe amendment or other consent. HUD's payment of funds underthis agreement is subject to the Participating Jurisdiction's/Entity's compliance Nith HUD's electronic funds transfer and Information reporting procedures Issued pursuant to 24 CFR 92.502. To the extent authorized by HUD •egulations at 24 CFR Part 92, HUD may, by its execution of an amendment, deobligate funds previously awarded to the Participating Jurisdiction/ Entity without the Participating Jurisdiction's/Entity's execution of the amendment or other consent. The Participating Jurisdiction/Entity agrees :hat funds invested in affordable housing under 24 CFR Part 92 are repayable when the housing no longer qualifies as affordable housing. Repayment shall be made as specified in 24 CFR Part 92. The Participating Jurisdiction agrees to assume all of the responsibility for environmental review, decision making, and actions, as specified and required in regulation at 24 CFR 92.352 and 24 CFR Part 58. and Urban Jim Chaplin, Manager For Particlpating JurisdlctlorVEntily (Name and Title of Authorized D "APR )ate 404 form HUD-40093 (4/93) HUD-40093 Funding- Approval 11. Special Conditions The recipient shall comply with the environmental review process as outlined at 24 CFR 92.352 and receive written notification from HUD of the release of fundsbefore obligating or expending any funds provided under this Agreement. r 4- 404 HOME PROGRAM DESCRIPTION CITY OF MIAMI, FLORIDA March 17, 1994 Grant Year 1994 "A :'!)'4- 404 Brief Description of Major Activities 1. NEW CONSTRUCTION - MULTIFAMILY (Ref. 1994 CHAS pgs. 118-143, pg. -146, pgS. 171-184) The City of Miami is anticipating using $200,000 in HOME funds for new construction of multifamily units located throughout the City of Miami. PROGRAM PURPOSE AND OBJECTIVES The HOME Multifamily New Construction Program is designed to provide financial assistance to developers in connection with the production Qf new rental projects having 5 or more units through a loan, grant, or combination thereof, for all or part of the project cost. The financing terms will allow the rents necessary to support the operations and debt service of the project to be affordable to very low and low income tenants. The program is funded through HOME Program funds provided to the City of Miami by the U.S. Department of Housing and Urban Development. The City's Department of Development and Housing Conservation, or its successor, is responsible for the implementation of the Program. The Department will implement the Program on a city-wide basis to accomplish the following objectives: 1) Increase the supply of new rental units affordable to very low and low income residents; 2) Provide standard affordable housing to low and very low income residents; 3) To spur reinvestment of private capital in older residential neighborhoods; and 4) To complement other public neighborhood revitalization efforts. MAJOR PROGRAM HIGHLIGHTS Project Eligibility - 5 or more units or SRO (Single Room Occupancy) units. Program Availability - City wide Equity - A minimum equity of 10% is required. 4~ 404 HOME Subsidy Per Unit - A minimum of $1,000 per HOME assisted unit. - A maximum of $64,552 per HOME assisted unit, will be allowed within the HOME Program maximum subsidy limits established by number of bedrooms. Maximum Purchase Price/Appraised Value - The purchase price or appraised value of a HOME assisted property to be acquired by a low or lower income household shall not exceed the 203(b) mortgage limit for the area for the type of housing being purchased (single family, condominium, manufactured home, etc.). Period of Affordability - a term of 20 years to coincide with the term of the HOME mortgage. If FHA mortgage insurance is used for a HOME project, the term of affordability must be the length of the FHA insured mortgage in excess'of the HOME required 20 year term. HOME Rents - At least 20% of the HOME assisted units in each project shall have a maximum rent of 50% of median rent limit. - No less than 80% of the HOME assisted units may be rented at the lesser of the Fair Market Rents established for Section 8 Program or the 65% of median rent limit established by HUD for the HOME Program. Occupancy Standards - 90% of all HOME funds will be used to assist households having incomes no greater than 60% of the area median income, adjusted for family size. The remaining 10% of HOME funds may be used to assist households having no more than 80% of the area median income, adjusted for family size. Code Compliance - All projects must meet the South Florida Building Code, the Dade County Building Code, the City of Miami Building Code, the Section 8 Housing Quality Standards and the Model Energy Building Code or HUD -accepted equivalent. Financing Mechanism - A grant, a loan, an interest rate buydown or any combination thereof. Solicitation/Acceptance of Projects - Applications shall be accepted during the advertised submission period. Applications will be ranked and funds will be awarded on a competitive basis. 4-- 404 -2- Application Fee - A non-refundable application fee in the amount of_.$50 shall be submitted with each application. Annual Inspection - Newly constructed building(s) shall be subject to annual inspections to insure compliance with min imum•- housing codes. This inspection will be initiated one year after the date of the certificate of occupancy and will occur annually thereafter for the -duration of the affordability period. Rent Regulatory Agreement -.At the time of the loan/grant closing, the owner will be required to execute this Agreement stipulating the nature of the rent controls which will be in effect for the affordability period to be revised annually as per U.S. HUD. Deed Restrictions - The mortgage deed executed at the time of HOME loan/grant closing shall provide for the following Program requirements and any subsequent revisions thereto: 1) Applicability of maximum rents as established by HUD pursuant to HOME Program Regulations and those of the City of Miami. 2) Applicability of maximum income limits for tenant households as established by HUD pursuant to HOME Program Regulations and those of the City of Miami. 3) Applicability of code inspections to insure minimum code compliance as established by HUD pursuant to HOME Program Regulations and those of the City of Miami. Waivers - The Director of the Department of Development and Housing Conservation or its successors, shall have the authority to waive any locally enacted City of Miami program requirements to further the purpose and objectives of the City's Comprehensive Housing Affordability Strategy. 14- 404 -3- Use of Fees/Fines - The Department of Develo ment and Housing Conservation shall use any fees andylor fines collected for future eligible HOME projects an d wAJJ—U-(2t utilize such funds to recover administrative costs. 04- 404 MEM 2. SUBSTANTIAL REHABILITATION (Ref. 1994 CHAS pgs. 118- 143, pg. 146, pgs._ 171-184) The City of Miami is anticipating using $150,000 in HOME funds for the substantial rehabilitation of multifamily units located throughout the City of Miami. PROGRAM PURPOSE AND OBJECTIVES i The HOME Multifamily Housing Rehabilitation Loan Program is designed to provide owners of substandard rental housing with. deferred payment loans to finance the cost of rehabilitation. The deferred payment loan financing further allows the after rehabilitation rents to be maintained at levels affordable to low and moderate income residents. The Program is funded through HOME Program funds provided to the City of Miami by the U.S. Department of Housing and Urban Development. The City Department of Development and Housing Conservation is responsible for the administration and implementation of the Program. The Department will implement the Program on a Citywide basis to accomplish the following objectives: 1. To conserve the existing housing stock and increase the inventory of standard rental housing; 2. To provide standard affordable housing tp low and moderate income residents; 3. To spur reinvestment of private capital in older residential neighborhoods, and; 4. To complement other public neighborhood re- vitalization efforts. Project Eligibility - 5 or more units OR SRO (Single Room Occupancy) units which at time of application do not meet code. Program Availability - Citywide 14-- 404 -5- Equity - a minimum equity of 10% required for any project. HOME Subsidy per Unit - a minimum of $25,001 up to a maximum of $40,000 per unit will be allowed within the HOME Program maximum subsidy limits established by number of bedrooms. Period of Affordability - ten (10) years per project for every HOME -assisted project. HOME Rents - as per HOME Program regulations, the lesser of the FMR (Fair Market Rent) or the 65% and 50% Rent Limit figures as provided by U.S. HUD. HIGH RENT - 80% of project shall have Limit figure. LOW RENT - 2 0 % of project shall have Limit figure. the Home -assisted units in each as the maximum rent the 65% Rent the HOME -assisted units in each As the maximum rent the 50% Rent Occupancy, Standards - 90% of HOME funds shall assist tenants with annual incomes at or below 60% of median income. The remaining 10% of Program funds will assist tenants whose incomes range from more than 60% of the median income up to a maximum of 80% of the median income. Code Compliance - projects shall be subject to meeting all local building, housing and zoning codes, including the City's Property . Rehabilitation Standards, the federal Section 8 Program Housing Quality Standards and the Cost Effective Energy Standards. Financing Mechanism - a ten (10) year Deferred Payment Loan with a forgiveness clause whereby 10% of the total HOME loan will be forgiven on an annual basis as long as the project is in full compliance with HOME Program requirements. �-Y'4- 404 I. Solicitation/Acceptance of Projects - applications shall be accepted during the advertised submission period. Submitted applications will be processed in the order in which they are received. Rate of Return - a maximum 20% return on investment will be allowed. i Application Fee - a non-refundable application fee in ` the amount of $50 shall be submitted with each application. Annual Inspection - Rehabilitated structures shall be subject to an annual reinspection to insure continuing compliance. with minimum housing codes. This inspection will be initiated one year after the date of completion of the rehabilitation work and will occur annually thereafter for the duration of the loan term. Rent Regulatory Agreement - at time of the loan closing the property owners will be expected to execute this Agreement stipulating the nature of the rent controls which will be in effect for the following ten (10) years. Deed Restrictions - the mortgage document executed at time of loan closing shall provide for the following Program requirements to be updated annually: 1. Applicability of maximum rents as established by the HOME Program regulations and the City of Miami. 2. Applicability of maximum income limits for tenant households as established by the HOME Program regulations and the City of Miami. 3. Applicability of code inspections to insure minimum code compliance as established by the HOME Program regulations and the City of Miami. Project noncompliance with any of these three program f requirements i.e. - maximum HOME rents, maximum tenant I income limits and property code compliance shall result in the application of the Remedies for Breach of Deed Restrictions as stated below. -7- 14- 404 Remedies for Breach of Deed Restrictions - for project noncompliance, the following sanctions. will be invoked: PINES - a flat monthly fine for the entire project in the amount of $50 per unit for each unit not in program compliance up to a maximum fine of $5,000 per month for each project, for each month the project is not in compliance... -A, maximum of ninety (90) days will be allowed to i correct the noncompliance. FORRCLQSURE - after the 90 day "correction" period, projects which have not yet been ! brought into compliance will be subject to foreclosure by the City. Use of Fines/Fees - the Department of Development and Housing Conservation shall use any fees and/or fines collected for future eligible HOME projects and will not utilize such funds to recover administrative costs. 4- 404 im 3. OTHER REHABILITATION (Ref. 1994 CHAS pgs. 118-143, pg. 146, pgs. 171-184) The City of Miami is anticipating using a total of $350,000 in HOME funds for the moderate rehabilitation of units located throughout the City of Miami. The purpose, objectives and major program highlights of the City of Miami's Moderate Multifamily Housing Rehabilitation Loan Program are identical to that for the City's Substantial Rehabilitation program except for the following features: HOME Subsidy per Unit - a minimum of. $1,000 up to a maximum of $25,000 per unit will be allowed within the HOME Program maximum subsidy limits established by number of bedrooms. Period of Affordability - a HOME subsidy of less than $15,000 per unit will have a five (5) year period of affordability per project, while a HOME subsidy of $15,000 up to $25,000 per unit will have a ten (10) year period of affordability per project. Financing Mechanism - a) For projects with a HOME subsidy of less than $15,000 per unit: A five (5) year Deferred Payment Loan with a forgiveness clause whereby 20% of the total HOME loan will be forgiven on an annual basis as long as the project is in full compliance with HOME Program requirements. b) For projects with a HOME subsidy of $15,000 up to $25,000 per unit: A ten (10) year Deferred Payment Loan with a forgiveness clause whereby 10% of the total HOME loan will be forgiven on an annual basis as long as the project is in full compliance with HOME Program requirements. 4- 404 Rent Regulatory Agreement - at time of loan closing the property owners will be expected to execute this Agreement stipulating the nature of the rent controls which will be in effect for the following five (5) or ten (10) years depending upon the dollar amount of the HOME subsidy. r- -10- P 94- 404 4. FIRST-TIME HOMEBUYERS' FINANCING PROGRAM (Ref. 1994 CHAS_ pgs . 118- 143, Pg. 146, pgs. 171-184) The HOME Assisted First -Time Homebuyers' Financing Program was designed to enable low and very low income first-time homebuyers to purchase a newly constructed home-utilizing•- j HOME funding to consummate the acquisition. The City of I Miami is anticipating using $500,000 in HOME funds for this i program. The Program is funded with HOME Program funds provided to the City of Miami by the U.S. Department of Housing and Urban Qevelopment. The City's Department of Development and i Housing Conservation, or its successors, is responsible for the implementation of the Program. The Department shall implement the Program on a city-wide basis to accomplish the following objectives. 1) Provide mortgage assistance for first-time homebuyers purchasing a newly constructed home; 2) To spur reinvestment of private capital in older residential neighborhoods; and 3) To complement other public neighborhood revitalization. efforts. >. Type of Financing - The City of Miami will utilize the HOME funds for the purpose of providing financing to first-time homebuyers through (a) interest bearing first mortgage acquisition loans (b) interest bearing second 1 mortgage loans or (c) a combination thereof; for the purchase of a newly constructed home. Eligible Properties - Any property that has been or will be developed under the City of Miami Scattered Site Affordable Homeownership Development Program. Also any property developed by a City certified Community Housing I Development Organization (CHDO). MAJOR PROGRAM HIGHLIGHTS 14~ 404 -11- . Eligible Mortgagors Applicants must be a first-time homebuyer or household that has not owned a home during the three (3) year period immediately prior to purchase with HOME funds. The purchaser's gross annual income must not exceed 80% of median income for the area and must occupy the property as a principal residence. The prospective homebuyers must have a good credit history. If a HOME second mortgage is provided to the homebuyer, the homebuyer must be approved for a first mortgage from the participating first mortgage lender. Proposed first mortgage financing arrangements must be found acceptable to the City. The City of Miami reserves the right to evaluate and deny any mortgage financing terms not found acceptable and/or beneficial to a participating homebuyer. Estimated total first and second mortgage payments including escrow, should not exceed thirty (30%) percent of the homebuyers monthly gross income, when determining affordability of the unit. In the event a first mortgage is provided to a first time homebuyer, the applicant/household must meet the qualification guidelines as stated below. Mortgage financing to the homebuyer is limited to "families" defined as: single individuals or two or more persons related by blood, marriage, or operation of law who occupy the same unit. . Income Limitations The Program is designed to benefit both low and very low income families. Current (low and very low) income limits in Dade County are listed below. These limits, shall be adjusted automatically whenever the federal government periodically redetermines the median income for Dade County. Very Low Low Income Family Income Limits Size- 1 $14,650 $23,450 2 16,750 26,800 3 18,850 30,150 4 20,950 33,500 5 22,650 36,200 6 24,300 38,900 7 26,000 41,550 8 27,650 44,250 -12- 14- 404 . Home Subsidy Per Unit The Program allows for a minimum allocation of $1,000 per HOME assisted unit, and a maximum allocation, as outlined below based on number of bedrooms. 0 1 2 3 4 or more f_W -;-0_•- I _ $32,612 37,384 45,458 58,807 64,552 Maximum Purchase Price/Appraised Value The purchase price or appraised value of a HOME assisted property to be acquired by a first-time homebuyer shall not exceed the Federal Housing Authority (F.H.A.) 203(b) mortgage limit for the area and for the type of housing being purchased, (single family, condominium, manufactured home, etc.). The current F.H.A. 203(b) limit for Dade County is $104,500. . Down Payment Equity A minimum down payment of 2.5% will be required. First Mortgage Financing The City of Miami may elect to provide the first-time homebuyer with a first mortgage to enable the purchase of the property. Said first mortgage amount shall never exceed the lessor of the maximum HOME Program permissable subsidy based on number of bedrooms or 97.5% loan to purchase price or value whichever is less. The loan shall have a maximum term of thirty (30) years. The interest rate charged on the first mortgage shall be determined based on the household's income classification. The interest rate provided must result in a monthly payment that inclusive of taxes and insurance (PITI) will not exceed 30% of the household's monthly gross income. The City may elect to provide the household with a non -interest bearing loan, however this shall be the lowest amount of monthly payment the City will allow on a first mortgage. -13- .'4 - 404 . Second Mortgage Financing (A) MAXIMUM SECOND MORTGAGE AMOUNTS i Second mortgages are limited to the lesser amount of the following: 1. 50% of _the purchase price on a zero to one bedroom unit. 60% of the purchase price on a two or three bedroom unit. 65% of the purchase price on a four or more bedroom unit. KV 2. $32,612 for a zero bedroom unit. $37,384 for a one bedroom unit. $45,458 for a two bedroom unit. $58,807 for a three bedroom unit. $64,552 for a four or more bedroom unit. (B) (FAMILY SIZE) - HOUSE SIZE FOR SECOND MORTGAGE PURPOSES Second mortgages will be limited in accordance with the amounts stipulated above, to the house size as would normally be required by the family. The relationship between family size and house size is as follows: House Size Number of People 1 bedroom 1-2 persons 2 bedrooms 2-4 persons 3 bedrooms 3-6 persons 4 bedrooms 5-8 persons (C) SECOND MORTGAGE INTEREST RATE - TERM - REPAYMENT Second mortgages made to very low-income families will have an interest rate of 3%. Second mortgages made to i low-income families will have an interest rate of 6%; both will have a maximum term of 30 years. In no event shall principal and interest payments plus i escrow payments on the first and second mortgages exceed 30% of the family's total gross monthly income. These minimum payments, and any others requested herein can be waived by the City of Miami for up to one year in hardship situations. -14- 4- 404 . Qualification Requirements In determining the qualification of a household/applicant for a HOME program mortgage, the City utilizes the following qualifying ratios 1) the housing expense to income ratio and 2) the total debt to income ratio. The housing expense to income ratio, takes into consideration the -total monthly expense of the home. being, purchased, which includes principal, interest (on first and/or second mortgages), taxes, insurance, and condominium association or homeowners association fees (if any) and dividing the total by the household's gross monthly income. The result can not exceed thirty (30%) percent. . The total debt to income ratio consists of the addition of the total housing expenses plus all other monthly expenses such as credit card payments,:personal loans, student loans, and auto loans, alimony or child support and any other fixed monthly expenses that will take more than 12 months to pay off. The total of these expenses is divided by the household's total gross income. The result can not exceed fifty (50%) percent. . Affordability/Deed Restrictions - Any home assisted with HOME money may be resold during its period of affordability by its owner. The purchaser does not need to qualify under any of the HOME requirements or restrictions. However the amount of HOME subsidy plus interest provided to the owner must be duly repaid from the proceeds of the sale. - Any residence purchased with HOME assistance must be the principal residence of the purchaser during the period of affordability. - Remedy for Breach of Deed Restriction - The unpaid principal and any accrued interest shall immediately become due and payable to the City. - Financing Mechanism - HOME assistance shall be provided to the first-time homebuyer in the form of an interest or. non -interest bearing acquisition loan, first or second mortgages. - Solicitation/Acceptance - Applications will be accepted from potential first-time homebuyers during an advertised submission period. Submitted applications will be processed in the order in which they are received. 004- 4©4 -15- - Period of Affordability - The period of time in which the rules and regulations of the HOME Program are to remain in effect. New Construction 20 years Existing Structure 15 years - Type of Housing— Single family, duplex, triplex,.fQvir plex, townhouse, twin home, condominium or cooperative share. The City of Miami will provide HOME assistance in the form of an unforgivable loan, not to exceed the HOME Program maximum subsidy allocation adjusted as per number of bedrooms. The loan shall be fully repayable at a rate determined by the City of Miami and at a maximum term of thirty (30) years. Thiq loan shall be secured by a note and mortgage on the property, which shall be recorded either in a first or second lien position. The first-time homebuyer is required to reside in the property as his/her principle residence during the entire term -of the loan. The first-time homebuyer may sell the property at any time and must repay the City of Miami the entire amount of HOME subsidy plus interest from the sales proceeds. Any proceeds remaining after all mortgages especially the HOME subsidy have been repaid, shall belong to the first- time homebuyer (Seller). The HOME proceeds repaid to the City of Miami will be used by the City of Miami for other HOME First -Time Homebuyer Assistance. In the event that the proceeds from the sale are insufficient to repay the outstanding HOME subsidy, the City will recapture whatever proceeds are available after the first mortgage from a private lender (if any) has been repaid. Waivers - The Director of the Department of Development and Housing Conservation or its successors, shall have the authority to waive any locally enacted City of Miami Program requirements to further the purpose and objectives of the City's. Comprehensive Housing Affordability Strategy. �94- 404 -16- Annual Income'Recertification Annual review and certification of family income may be required under the Program. Copies of the Federal Income Tax Returns may be required for submission as part of this review. If the family's income has increased so that their monthly payments for principal, interest, taxes and insurance has dropped below 30% of their gross income, then the family will be required to begin payments on the'second- mortgage to the extent that the total payment again equals 30% of the family income. . Homebuyer Counseling Through the Program, all homebuyers will be required to undergo on -going homeowners counseling sessions with City staff in an effort to curtail the possibility of foreclosure and loss of homeownership status. `4- 404 -17- PROPOSED USE OF HOME FUNDS Activity Total, 6tca 757 New Construction (City) $340,650 (CHDO's) $ 472,520 $ 68,130 $ 200,000 Substantial Rehabilitation $ 150,000 (City) $920,325 (CHDO's) $1,070,325 0 Other Rehabilitation $ 350,000 (City) . $920,325 (CHDO's) $1,270,325 0 Acquisition $ 500,000 (City) 0 $500,000 1st Time Hcmebpyer Tenant Assistance 0 0 Administration $ 375,700 (City) 0 0 $375,700 $2,813,170 $568,130 $375,700 FOAM FUN1� TOTAL 5. HOME ASSISTED COMMUNITY HOUSING DEVELOPMENT ORGANIZATION DEVELOPMENT PROGRAM (Ref. 1994 CHAS pgs. 118-143, pg. 146, pgs. 171-184) The City of Miami i:s anticipating using $2,181,300 in HOME, - funds to provide financial assistance to Community Housing Development Organizations (CHDOs) to further stimulate community -based low income housing development and neighborhood stabilization efforts. The Home Assisted Community Housing Development Organization Development Program is designed to provide financial assistance to assist, in part, in financing the production of new housing to be sponsored or owned by Community Housing Development Organizations (CHDOs). Financial assistance will be provided in the form of project -specific technical assistance and/or site control loans for early project planning and development expenses, including but not limited to: feasibility studies, consulting fees, cost of preliminary financial applications, legal, architectural and engineering fees, engagement of a development team, site control, and title clearance. In addition, the Program will also make available low interest project -specific seed money loans to CHDOs to cover preconstruction costs, including but not limited to firm financing commitments, zoning approvals, engineering studies and legal fees. Seed money loans shall be repayable to the participating jurisdiction (PJ). Through the Program, CHDO sponsored housing projects will be advanced flexible predevelopment loans and said loans shall be forgivable if a project fails to come to fruition as a result of circumstances reasonably beyond the control of the CHDO. The Program is funded through Home Program funds provided to the City of Miami by the U.S. Department of Housing and Urban Development. The City's Department of Development and Housing Conservation is responsible for the implementation of the Program. The Department will implement the Program on a city-wide basis to accomplish the following objectives: 1. To spur reinvestment of private capital in older residential neighborhoods through the production of new affordable housing units sponsored, or owned by Community Housing Development Organizations (CHDOs). aJ4- 404 -19- 2. To provide standard housing affordable to low and very low income residents. 3. To complement other public neighborhood revitalization efforts. CHDO Program Eligibility - the CHDO must meet all the applicable requirements of the Home Program as listed below: .1 CHDO must be organized under State and/or local laws. Must have a tax exempt ruling from the IRS under Section 501(c) of the Internal Revenue Code of 1986. No part of its earnings (profits) may benefit any members, founders, contributors, or individuals. Provision of decent housing that is affordable to low and moderate income persons must be among the purposes stated in the charter, articles of incorporation, resolution or by-laws of the CHDO. Appropriate organizational structure as required by the Home Program. Program Availability - Citywide, provided the CHDO submits all documentation required to establish itself as a CHDO as defined in the Home Program regulations. CHDO Checklist - the City will be utilizing this checklist, as provided by U.S. HUD in CPD Notice 94- 02, as part of its process for certifying individual organizations as CHDO's. Project Eligibility - All housing projects specifically to be undertaken or sponsored by CHDOs as defined -by the Home Program, in furtherance of the City's community based low income housing development and neighborhood stabilization efforts. Period of Affordability - A term of 20 years, for new construction projects. If FHA mortgage insurance is used for a HOME project, the term of affordability must be the length of the FHA insured mortgage in excess of the HOME required affordability term. 0'4- 404 -20- HOME Rents - as per HOME Program regulations, the lesser of the FMR (Fair Market Rent) or the 65% and 50% Rent Limit figures as provided by U.S. HUD. HIGH RENT - 80% of the Home -assisted units in each project shall have as the maximum rent the 65% Rent Limit figure. LOW RENT-- 20% of the HOME -assisted units in each -- project shall have as the maximum rent the 50% Rent Limit figure. Occupancy Standards - 90% of HOME funds shall assist tenants with annual incomes at or below 60% of median income. The remaining 10% of Program funds may assist tenants whose incomes range from more than 60% of the median income up to a maximum of 80% of the median income. Codq Compliance - projects shall be subject 'to meeting all local building, housing and zoning codes, including the South Florida Building Code, the federal Section 8 Program Housing Quality Standards and the Cost Effective Energy Standards. Project Financial Assistance - financial assistance will be provided by the City for the production of housing projects to be sponsored by CHDOs through the provision of project specific predevelopment loans, site control loans, project specific seed money loans. Specific terms of the loan(s) will be determined on a project by project basis. 3 Solicitation/Acceptance of Project - applications will be acceptable from CHDOs on a project specific basis during the Home Program fiscal year. Submitted applications will be processed in the order in which they are received. Annual Inspection - New construction projects shall be subject to an annual reinspection to insure continuing compliance with minimum housing codes. This inspection will be initiated one year after the date of the certificate of occupany and will occur annually thereafter for the duration of the affordability period. Rent Regulatory Agreement - at time of the loan closing the property owners will be expected to execute this Agreement stipulating the nature of the rent controls which will be in effect for the duration of the required affordability period. 94- 404 -21- Deed Restrictions - the mortgage document executed at time of loan closing shall provide for the following Program requirements to be updated annually: 1. Applicability of maximum rents as established by the HOME Program regulations and the City of Miami. 2. Applicability of maximum income limits -•for- tenant households as established by the HOME Program regulations and the City of Miami. 3. Applicability of code inspections to insure minimum code compliance as established by the HOME Program regulations and the City of Miami. Waivers - The Director of the Department of Development and Housing Conservation or its successors, shall have the authority to waive any locally enacted City of Miami program requirements to further the purpose and objectives of the City's Comprehensive Housing Affordability Strategy. As of January 1, 1994, the following not -for -profit organizations have been certified as City of Miami HOME Program - Community Housing Development Organizations (CHDOs). East Little Havana Community Development Corp., Inc. Florida Housing Cooperative, Corp. Little Haiti Housing Association Martin Luther King Economic Development, Corp. Model Housing Cooperative, Inc. South Pointe Family and Children Center, Inc. St. John Community Development Corporation Tacolcy Economic Development, Corp. The Institute for Innovative Interventions, Inc. Urban League of Greater Miami, Inc. Wynwood Community Development, Corp. 94- 404 -22- CHDO SET -ASIDE $563,550 plus $1,617,750 = $2,181,300 Activity Proposed & Al location New Construction $340,650 Substantial Rehabilitation $920,325 Other Rehabilitation $920,325 Acquisition 0 Tenant Assistance 0 HOME PROGRAM ADMINISTRATION The City of Miami is anticipating using $375,700 or 10% of its 1994 HOME Program allocation for administrative expenses. r•• HOME PROGRAM MATCH REQUIREMENT The City of Miami has a 100% match reduction, based on fiscal distress, for the 1994 HOME Program year. MECIM4 -25- AFFIRMATIVE MARKETING MINORITY AND/OR WOMEN BUSINESS ENTERPRISES• `94- 404 CITY OF MIAMI AFFIRMATIVE MARKETING COMPONENT In accordance with the Regulations of the HOME Program (Sec. 92.351) and in furtherance of the City of Miami commitment to non-discrimination and equal opportunity in housing, the City of Miami establishes procedures to affirmatively market HOME - assisted housing containing 5 or more housing units. These procedures are intended to further the objectives of Title VIII of the Civil Rights Act of 1968 and Executive Order 11063. The City of Miami believes that individuals of similar economic levels in the same housing market area should have available to them a like range of housing choices regardless of their race, color, religion, sex, and national origin. The City of Miami is committed to the goals of affirmative marketing which will be implemented in our HOME Programs through a specific set of steps that the City and participating owners will follow. These goals will be reached through the following procedures: 1. The City of Miami, in implementing the HOME Programs will inform the public, participating owners and potential tenants of the City's affirmative marketing policy and fair housing laws in accordance with 24 CFR 92.351(b). Specifically, the City will: A. Include a statement of its affirmative marketing policy and procedures in all media releases and reports about the HOME programs to be published in three (3) local newspapers: (1) Miami Herald - general circulation; (2) Miami Times - Black circulation (3) Diario Las Americas - Hispanic circulation B. Provide a copy of its affirmative marketing policy statement and applicable fair housing laws description to participating owners and potential tenants. C. Include the Equal Housing Opportunity logo, slogan, or statement in all newspaper and other media announcements regarding the program, including any advertisements appearing in the three (3) local newspapers: the Miami Herald, Miami Times and Diario Las Americas. 94- 404 -26- 1 2. Owners participating in the program will be required to submit an affirmative marketing plan at time of application. HUD Form 935.2 "Affirmative Fair Housing Marketing Plan"'or an equivalent type of plan will be acceptable. In addition, participating property owners will be required to make information on the availability of units known by initiating the following actions in the order they appear. a) notifying the Dade County Department of Housing and Urban Development (Miami's Public Housing Agency) and requesting that staff inform applicants on its waiting list about upcoming vacancies. b) for any unit(s) not leased within a-30 day period as a result of action 2.(a); tenants may be selected from the property owner's list which is compiled from the following: their placement of advertisements in the three (3) local newspapers - Miami Herald, Miami Times a4d the Diario Las Americas and/or referrals made by local community based organizations Dl],d the placement of a "For Rent" sign displaying the Equal Housing Opportunity logo at the front of the property. In addition, each owner will be requested to display a fair housing poster on the premises of each project. It will be emphasized to owners that to the extent feasible without holding units off the market, they make information about upcoming vacancies known to the general public after special outreach efforts are underway (see Procedure 3). 3. To comply with Affirmative Marketing procedures and requirements for HOME -assisted housing containing 5 or more housing units owners will be required to include in their Affirmative Marketing Plan special outreach efforts to sectors of the community who are least likely to apply for the HOME -assisted units, namely Blacks, Haitians and Hispanics. The City will provide owners with a list of local neighborhood organizations which will be able to .assist the property owner in reaching the aforementioned populations. Owners will be asked to utilize the City - provided list of organizations and/or contact any other neighborhood outreach group with which they may be familiar. (See list attached, page 30). It will be required for owners to begin their special outreach activities immediately upon learning that a vacancy will occur. Owners will request a 30 day notification from tenants intending to move so that special outreach to Blacks, Haitians, and Hispanics can begin before notification to the general public. While owners may not always have early notice from tenants, the 30-day period should be the norm. -27- "-4- 404 4. The City of Miami will insure that adequate records are maintained to meet the racial, ethnic and gender characteristic record -keeping requirements doncerning tenancy before and after rehabilitation, and relocation data for displaced persons. Records will also be kept of the project's affirmative marketing plans. In this regard, the City of Miami will require that property owners keep records oft: a) the racial, ethnic and gender characteristics of tenants and applicants in the 90 days following rehabilitation; b) activities they undertake to inform the general renter public, specifically: copies of advertisements placed in the three (3) local newspapers: Miami Herald, Miami Times and the Diario Las Americas. dates and names of the community . based organizations contacted by the owner as per the City -provided Community Based Organizations List or any other neighborhood associations contacted. dates on which the owner contacted the Dade County Department of Housing and Urban Development (Miami's Public Housing Agency). 5. The City of Miami will evaluate the owner's performance against his/her affirmative marketing plan. Failure to comply with the approved plan will result in restrictions on program participation. ' Specifically, the City of Miami will take corrective action if it is found that an owner failed to carry out the procedures required or has failed to maintain the proper, records on tenants and applicants. If there are problems, ways to improve owners' efforts will be discussed prior to taking corrective actions. As an initial step, owners with vacancies will be required to notify the Department of Development and Housing Conservation immediately upon learning that a unit will become vacant. Owners will be asked to provide this information as close to 30 days prior. to the upcoming vacancy as possible. The Department of Development and Housing Conservation staff will then be able to verify on a "spot Check" basis if these owners are following the prescribed procedures. , & 404 If an owner continues to fail to meet the affirmative marketing requirements, 'the City of Miami, after fair warning and an opportunity to correct Iidentified deficiencies, may disqualify an owner from further participation in future HOME Programs administered by the City. Assessment activities will be carried out and a written assessment of the `affirmative marketing efforts will -be., reported to HUD. 94_ 4©4 -29- COMMUNITY DEVELOPMENT CORPORATIONS 1. Allapattah Business Development Authority, Inc. 2515 N.W. 20th Street, Suite 2-A Miami, Florida 33142 r Phone # 635-3561 Fax # 634-6124 Executive Director - Rafael Cabezas Allapattah Target Area 2. CODEC, Inc. 300 S.W. 12th Avenue, Suite A Miami, Florida 33130 Phone # 642-1381 Fax # 642-7463 Executive Director - Jose Fabregas Citywide 3. East Little Havana Community Development Corp, 1699 Coral Way, Suite 512 Miami, Florida 33145 Phone # 856-2547 Fax #858-9569 Executive Director - Anita Rodriguez Little Havana Target Area 4. Florida Housing Cooperative, Inc. 900 S.W. 22nd Avenue Miami, Florida 33135 Phone # 838-1432 Fax # 642-1814 Executive Director - Carlos Rodriguez-Quesada Little Havana Target Area4 - 404 -30- 5. Greater Miami Neighborhoods, Inc. 1460 Brickell Avenue, Suite 309 Miami, Florida 33131 Phone # 374-5503 Fax # 375-9181 Executive Director - Robert Pollack Citywide 6. Little Haiti Housing Association 8340 N.E. 2nd Avenue, Suite 250 Miami, Florida 33138 Phone # 759-2542 Fax # 754-9200 Executive Director - David Harder Little Haiti/Edison Little River Target Area 7. St. John Community Development Corporation 1324 N.W. 3rd Avenue Miami, Florida 33136 Mailing Address: P.O. Box 015344, Miami, Florida 33101-5344 Phone # 372-0682 Fax # 381-9574 Executive Director - Charles C. Stafford Overtown Target Area 8. Tacolcy Economic Development Corporation 645 N.W. 62nd Street, Suite 300 Miami, Florida 33150 Phone # 757-3737 Fax # 757-5856 Executive Director - Lorenzo Simmons Model City Target Area 04- 404 -31- 4 Rafael Hernandez Housing and Economic Development Corporation, Inc. 101 N.W. 34th Street Miami, Florida 33127 Executive Director - Angel Diaz Wynwood Target Area 10. urban League of Greater Miami, Inc. 8500 N.W. 25th Avenue Miami, Florida 33147 Phone # 695-4450 Executive Director - T. Willard Fair Model City Target Area 94- 4©4 -32- UTILIZATION OF MINORITY BUSINESS ENTERPRISES (MBE) AND WOMEN BUSINESS ENTERPRISES (WBE) Statement of policy and procedures to be followed by the City of Miami for establishing and overseeing a minority and women's business outreach program. The City of Miami is committed to and shall make every.effort to encourage the use of minority and women's business enterprises iri` connection with HOME -funded activities. Owners of private property will be strongly encouraged to utilize the services of Minority and/or Women owned real estate firms, construction firms, appraisal firms, management firms, financial institutions, etc. as . per Section 92.350(a)(5) of the HOME Investment Partnerships Program regulations. The City of Miami shall encourage the use of minority and women's business enterprises in connection with all HOME -funded activities by establishing the following minority and women's business outreach program procedures: The following statement of policy shall be published in the area newspapers: Miami Herald, Diario de Las Americas and the Miami Times. Statement of Policy In accordance with Section 281 of the HOME Investment Partnership Act and 24 CFR 92.350 (a) (5), the City of Miami encourages the use of minority and women's business enterprises in connection with all HOME -funded activities. This policy shall be carried out through the following procedures: 1. The Minority/Women Business Outreach Program will be implemented by the Department of Development and Housing Conservation in conjunction with the Office of Minority/Women Business Affairs. 2. A systematic method for identifying and maintaining an inventory of certified minority and women's business enterprises (MBES and WBES), their capabilities, services and/or products has been established at the Office of Minority/Women Business Affairs. 3. The local media will be used to market and promote contract and business opportunities for MBES and WBES. -33- 94- 404 4. Information and documentary materials (program descriptions, informational materials, etc.) on contract/subcontract opportunities for MBES and WBES will be developed. 5. Solicitation and procurement procedures that facilitate opportunities for MBES and WBES to participate as vendors and suppliers of goods and services will be utilized. 6. Business opportunity -related meetings, seminars, etc. with minority and women business organizations shall be sponsored. 7. Centralized records with statistical data on the use and participation of MBES and WBES as contractors/subcontractors in all HUD -assisted program contracting activities will be maintained. ; 4- 4©4 -34- CERTIFICATIONS �1%Z.1,tt1J of �Ntamt IV 0A, IV 0A, HERBERT J. BAILEY sW X Assistant City Manager �'o„ r� CER FICATIONS CITY OF MIAMI, FLORIDA HOME PROGRAM DESCRIPTION CESAR H. ODIO City Manager ATTACHMENT C In accordance with the Home Investment Partnerships Act and with 24 CFR 92.150 of the Home Investment Partnership Program Rule, the participating jurisdiction certifies that: (a) Before committing any funds to a project, it will evaluate the project in accordance with the guidelines that it adopts for this purpose and will not invest any more HOME funds in combination with other Federal assistance than is necessary to provide affordable housing; (b) If the,participating jurisdiction intends to provide tenant - based rental assistance: The use of HOME funds for tenant -based rental assistance is an essential element of the participating jurisdiction's annual approved housing strategy for expanding the supply, affordability, and availability of decent, safe, sanitary, and affordable housing. (c) The submission of the program description is authorized under State and local law (as applicable), and that it possesses the legal authority to carry out the Home Investment Partnerships (HOME) Program, in accordance with the HOME regulations; (d) It will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, implementing regulations at 49 CFR Part 24 and the requirements of 24 CFR 92.353; (e) It and State recipients, if applicable, will use HOME funds pursuant to its current Comprehensive Housing Affordability Strategy (CHAS) approved by HUD and all requirements of 24 CFR Part 92; (f) It will or will continue to provide a drug -free workplace by: 1. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition; DEPARTMENT OF DEVELOPMENT AND HOUSING CONSERVATION/DUPONT PLAZA CENTER 300 Biscayne Boulevard Way, Suite 400-401/Miami, FL 33131 DEVELOPMENT DIVISION (305) 579-3366 / HOUSING DIVISION (305) 579-3336/Telecopier: (305) 371-9710 9 4 — 404 0A 2. Establishing an ongoing drug -free awareness program to inform employees about - (a) The dangers of drug abuse in the workplace; (b) The participating jurisdiction's policy of maintaining a drug -free workplace; (c) Any available drug counseling, rehabilitation, and employee assistance programs; and (d) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; 3. Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph (1); 4. Notifying the employee in the statement required by paragraph (1) that, as a condition of employment under the grant, the employee will -- (a) Abide by the terms of the statement; and (b) Notify the employee in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; 5. Notifying the agency in writing, within ten calendar days after receiving notice under paragraph 4(b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working; unless the Federal agency has designated a central point for the receipt .of such notices. Notice shall include the identification number(s) of each affected grant; 6. Taking one of the following actions, within 30 calendar days of receiving notice under paragraph 4(b), with respect to any employee who is so convicted -- (a) Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or (b) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes 94- 404 by a Federal State, or local health, law enforcement, or other appropriate agency; 7. Making a good faith effort to continue to maintain a drug -free workplace through implementation of paragraph's 1, 2, 3, 4, 5 and 6. 8. The grantee may insert in the space provided below the site(s)'for the performance of work done in connection with the specific grant: Place of Performance (Street address, city, county, state, zip code) City oMiami, Florida: Dept of Development and Housing Conservation 300 Biscayne Blvd. Way, Suite 401 Miami, Florida 33131 (Dade County) (g) To the.best of its knowledge and belief: 1. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress in connection with the awarding of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. 2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or any employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and 3. It will require that the language of paragraph (g) of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall cer ify and disclose accordingly. SIGNATURE: CESAR H. ODIO CITY MANAGER D aTE / Z /c 7�^ 94- 404 Titij of �fitztnti CESAR H. ODIO ,Con 0..,1 .City Manager Y / 1(__ • • . 17 _ .Zs _ i City of Miami, Florida I i Date of HUD Approval of CHAS FY 1994 Five Year Strategy and Annual Plan: February IQ, 1994 The City of Miami, Florida will use HOME Funds pursuant to its HUD approved housing strategy (CHAS) and in compliance with all requirements of 24 CFR part 92. Signature: Date: ESA4jH. O IO ITY RANAGh 0`4` 404 DEPARTMENT OF DEVELOPMENT AND HOUSING CONSERVATION/DUPONT PLAZA CENTER 3D0 Biscayne Boulevard Way, Suite 400-401/Miami, FL 33131 DEVELOPMENT DIVISION (305) 579-3366 / HOUSING DIVISION (305) 579-3336/Telecopier: (305) 371.9710 CITY OF MIAMI, FLORIDA �� INTER -OFFICE MEMORANDUM TO Honorable Mayor and DATE : MAY 31 1994 FILE . Members of the City Commission sue.iECT : Resolution Authorizing City Manager to Accept $3,757,000 HOME Program FROM Cesa to REFERENCES: Grant City r City Commission Agenda ENCLOSURES; Item - June 9, 1994 It is respectfully recommended that the City Commission adopt the attached resolution authorizing the City Manager to accept a grant in the amount of $3,757,000 from the U.S. Department of Housing and Urban Development in connection with the implementation of the Home Investment Partnership Program (HOME Program). The attached resolution further approves the attached HOME Program guidelines and authorizes the City Manager to execute all the necessary agreements and documents required in order to implement the Program. The Department of Development and Housing Conservation recommends ratification of the attached resolution authorizing the City Manager to accept a grant in the amount $3,757,000 from the U.S. Department of Housing and Urban Development in connection with the implementation of the Home Investment Partnership Program (HOME Program). The attached resolution further approves the attached HOME Program guidelines and authorizes the City Manager to execute all the necessary agreements and documents required in order to implement the Program. In November of 1990, the Cranston -Gonzalez National Affordable Housing Act was signed into law. The centerpiece of the Cranston -Gonzalez National Affordable Housing Act is the Home Investment Partnership Program which represents the most significant and far-reaching piece of federal housing legislation to come out of Washington in well over ten (10) years. 24- 4043O?v' tio Honorable Mayor and Members of the City Commission Page 2 In February of 1992, the City of Miami was designated as a participating jurisdiction and is eligible to receive $3,757,000 in Home Investment Partnership Program funding in connection with the implementation of the HOME Program in the City of Miami for fiscal year 1994-1995. The HOME Program is a federal housing block grant which affords state and local governments the flexibility to fund a wide range of low-income housing activities through creative and unique housing partnerships among states and localities, the private housing industry and not -for -profit community based organizations. Moreover, the HOME Program is targeted and designed to provide affordable housing opportunities to those most in need. In order to qualify for HOME Program funding, the City was required to submit a Comprehensive Housing Affordability Strategy (CHAS) for U.S. HUD's approval. The CHAS is a planning document which replaces two (2) pre-existing documents used by U.S. HUD grantees, the Housing Assistance Plan (HAP) for the Community Development Block Grant Program (CDBG) and the Comprehensive Homeless Assistance Plan (CHAP) for programs for the homeless through the Stewart B. McKinney Homeless Assistance Act. The CHAS incorporates elements of the HAP and CHAP in the development of a needs based housing strategy which identifies housing needs and resources/programs to address those needs. Based on the City's CHAS, there exists a critical need for affordable housing opportunities for low income renter households, low income homeowners and low income first-time homebuyers, in addition to the homeless. As a result, the housing programs which are being recommended for implementation with HOME Program funds are as follows: The HOME Multifamily New Construction Program is designed to provide financial assistance to Community Development Corporations and for -profit developers in connection with the production of new rental housing projects having 5 or more units through a loan, grant, or combination thereof, for all or part of the project cost. The financing terms will allow the rents necessary to support the operations and debt service of the project to be affordable to very -low and low-income tenants. Approximately $200,000 in HOME funds are being recommended for the construction of' new multifamily units in the City. 94— 404 Honorable Mayor and Members of the City Commission Page 3 ON I1 *• l• W071 •_ Wel,"W-47611PUFT The HOME Multifamily Housing Rehabilitation Loan Program is designed to provide owners of substandard rental housing with deferred payment loans to finance the cost of rehabilitation. The deferred payment loan financing vehicle would further allow the after rehabilitation rents to be maintained at levels affordable to low and moderate income tenants. Approximately $500,000 in HOME funds are being recommended for the rehabilitation of substandard multifamily housing located throughout the City. The HOME assisted Community Housing Development Organization (CHDO's) Development Program is designed to provide financial assistance to assist, in part, in financing the production of new housing or acquisition/rehabilitation of the City's existing housing stock, to be sponsored or owned by Community Housing Development Organizations (CHDO's). CHDO's are special types of nonprofit housing developers that have emerged over the past decade to be among the most active developers of low-income housing. The HOME Program attempts to promote and expand the capacity of these nonprofit housing developers by mandating that a minimum of fifteen (15%) percent of each participating jurisdiction's HOME allocation be set -aside for investment in housing owned, sponsored, or developed by CHDO's. This Program would allow the City to provide affordable housing opportunities to low and moderate income households through the neighborhood stabilization efforts of such organizations as the East Little Havana CDC, Tacolcy Economic Development Corporation, St. John CDC, Florida Housing Cooperative, Inc., Urban League of Greater Miami and other community based housing corporations. Approximately $2,181,300 in HOME funds are being recommended for this activity. 94- 404 3 Honorable Mayor and Members of the City Commission Page 4 The HOME assisted First -Time Homebuyer's Financing Program is designed to enable low and very low income first-time homebuyers to purchase a newly constructed or existing home utilizing HOME funds to consummate the acquisition. The HOME funds would be provided in the form of a permanent first or second mortgage financing to assist very low and low-income families in purchasing affordable housing units developed under the City's Scattered Site Affordable Homeownership Development Program or by CDCs/Developers. A first-time homebuyer would consist of a household that has not owned a home during the three year period immediately prior to the purchase with HOME funds. Approximately $500,000 in HOME funds are being recommended for this activity. Presently, the U.S. Department of Housing and Urban Development now allows. the City of Miami and other participating jurisdictions (Pis) to use up to ten percent (10%) $375,700 of its 1994 HOME Program allocation for administrative expenses which would include general programmatic and financial administration, planning, reporting and overall program compliance. In an effort to commence the implementation of the Home Investment Partnership Program in the City of Miami, it is recommended that the City of Miami approve the attached resolution. y 1 _& 404 'J