HomeMy WebLinkAboutR-93-0409J-93-453
7/8/93
RESOLUTION NO. 9 409
A RESOLUTION, WITH ATTACHMENTS, AUTHORIZING
THE CITY MANAGER TO ACCEPT A HOME INVESTMENT
PARTNERSHIPS PROGRAM GRANT (HOME PROGRAM) IN
THE AMOUNT OF $3,493,000 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;
APPROVING THE HOME PROGRAM GUIDELINES
ATTACHED HERETO AND INCORPORATED AND
AUTHORIZING THE CITY MANAGER TO IMPLEMENT THE
HOME PROGRAM IN ACCORDANCE HEREWITH; 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 1993-94, Congress approved $1.0
billion for the HOME Program which will be distributed by formula
to participating states and units of local government to enable
ATTACHMENT (S)I
CONTAINED
CITY COMMISSION
MEETING OF
ill L - 6 1993
Resolution No.
.93— 40t�q
such entities to design affordable housing strategies tailored to
the needs of their local markets; and
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
i as a participating jurisdiction (PJ) and is eligible to receive
hHOME Program funds; and
4 WHEREAS, in May, 1993, the City of Miami was awarded a HOME
Program grant in the amount of $3,493,000 from the U.S.
Department of Housing and Urban Development for implementation of
the Home Investment Partnerships Program; and
WHEREAS, In May, 1993, the City of Miami's revised HOME
Program Description guidelines were conditionally approved by
U.S. HUD and funding in the amount of $3,493,000 is available,
subject to the execution of the Funding Annroval and Home
Investment Partnership Agreement;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
-2-
93- 409
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. The City Manager, as Chief Administrative
Off ioer 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 $3,493,000 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 revised 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 hereby
authorized`/ 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 Organization (CDHOs) to implement said HOME Program.
Section S. This Resolution shall become effective
immediately upon its adoption.
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.
-3- 93- 409
it�+•tix
�E7V;r.
PASSED AND ADOPTED this 8th day of July, 1993.
V L. UARE , MAYOR
ATTEST: ,f
MATTY HIRAI', CITY CLERK
COMMUNITY D&VOJAPMfof REVIEW:
7]
FRAN CAS DA, DIRECTOR
DEPT. OF COMMUNITY DEVELOPMENT
BUDGETARY REVIEW:
Ad L j 4
0 S. PURANA
ASSISTT qTY MANAGER
FINAN REVIEW:
CARLO E. GARCIA, DIRECTOR
DEPAXTMENT OF FINANCE
PREPARED
AND
APPROVED BY:
E. MAXWELL
EF ASSISTAN CITY ATTORNEY
APPROVED AS TO FORM AND
CORRECTNESS:
At'QVINN J S, II
CITY ATTO
JEM: csk:M37 63
-4- 93- 409
�I�i+j•1•id�R�Yiel �
0
MAY 2 61993
Honorable Xavier Suarez
Mayor of Miami
3500 Pan American Drive
Miami, FL 33133
Dear Mayor Suarez:
SUBJECT: HOME Investment
M-93-MC-12-0211
Miami, Florida
U.S. DFPWITMF"-"OF IIOUSING AND URBAN DEVELOPMENT
JACKSONVILLE OFFICR, REGION IV
301 West Bay street, suite 2200
Jacksonville, Florida 32202-5121
4.6CMA
RECEIVED
JUN 4 1993
. COMMUNITY
DEVELOPMENT
Partnership Agreement
I am pleased to inform you that your HOME Program Description
has been approved and to transmit to you the Fiscal Year 1993 HOME
Investment Partnership Agreement in the amount of $3,493,000. The
Partnership funds will allow 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 Miami. Failure to execute and return two
copies of the Partnership Agreement within 60 da of the
transmittal cLa maybe deemed to constitu a re3ec ion of the funds
an 3 cause for HUD to determine a he fund a avaa. a e for
reallocation to other participating jurisdictions. You should note
particularly that all funds must be committed within 24 months and
expended within five years.
Also enclosed is a summary of minor revisions needed in your
program description and/or other related information. The
deficiencies noted are not sufficient to delay the grant award, but
should be corrected to ensure compliance with applicable HOME -
requirements. Corrections as noted should be completed within 30
days of receipt of this letter and submitted to this Office.
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
93- 409
2
HOME funds will be sent, a new Direct Deposit Sign-up form (SF-
1199A) must be completed by you and your financial institution.
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
Miami's Fiscal Year 1993 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.
Very sincerely yours,
rmChaplin
ger, 4.6S
Enclosures
Frank Castaneda, Director
Department of Community Development
4
•
ENCLOSURE
CITY OF MIAMI
1. The discussion of the use of HOME funds for administration
(page 24) does not conform the current guidelines. Up to 10
percent of each year's HOME grant may be used for
administration. These amounts are available until expended,
subject to the statutory five year limit.
93- 409
Funding Approval U.S. Department of Housing
and Urban Development
and HOME Investment office of community Planning
Partnership Agreement and Development
Thle'll of the National Affordable Housing Act OMB approval No. 2501-9013 (Exp. WOW)
Public reporting burden for this collection of Information is estimated to average 1.0 hour per response, indudingthe time for reviewing Instructions, searching existing
data sources, gathering and maintaining the data needed, and completing and reviewing the collection of Information. Send comments regarding this burden estimate
or any other aspect of this collection of Information, including suggestions for reducing this burden, to the Reports Management Officer, Office of Information Policies
and Systems, U.S. Department of Housing and Urban Development, Washington, D.C. 20410-3600 and to the Office of Managementand Budget, Paperwork Reduction
Protect r2501-00131. Washington. D.C. 20503. Do not send this completed form to either of these addressees.
1. Participant Name & Address:
2. Participant Number:
M-93-MC-12-0211
City of Miami, Florida
3.Tax identification Number:
300 Biscayne Blvd., Way, Suite 420
Miami, FL 33131
59-6000375
4a. HUD Geographic Locator Code No:
5. Appropriation Number:
6. Funding Approval Number:
7. FY:
b. county code: 1968/025
0205
2
1993
s. Previous Obligation
$ _0_
a. Regular Funds
_ 0 _
b. Community Housing Development Organization Reallocation
_ 0 _
9. Current Transaction
$ 3t493,000
a. Regular Funds
/
_ 0 _
b. Community Housing Development Organization Reallocation
_ 0 _
io. Revised Obligation
$ 3,493,000
a. Regular Funds
_ 0 _
b. Community Housing Development Organization Reallocation
_ 0 _
11. Special Conditions (check applicable box)
a. Not applicable
12. Congressional Release Data:
b. Attached
This agreement between the Department of Housing and Urban Development (HUD) analC.
t: �-C-
(theMiami, Florida
Partici atin Jurisdiction/Enth Is made pursuant to the authority of the Home Invesfrn artnershlp (4he
Participating Y)
Participating Jurisdiction's /Entity's approved Program Descriptlon/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,
constitute part of this agreement. Subject to the provisions of this agreement, HUD will make the funds for the Fiscal Year specified, available
to the Participating Jurisdiction/Entity upon execution of this agreement by the parties. All funds for the specified Fiscal Year provided by HUD
by formula reallocation are covered by this agreement upon execution of an amendment by HUD, without the Participating Jurisdiction's execution
of the amendment or other consent. HUD's payment of funds underthis agreement Is subjectto the Participating Jurisdiction's/Entity's compliance
with HUD's electronic funds transfer and information reporting procedures issued pursuant to 24 CFR 92.502. To the extent authorized by HUD
regulations 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/Entfty agrees
that 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.
For the U.S. Department of Housing and Urban Development (Name and Title) Signature Date
Jim Chaplin, Manager, 4.6S �y`� 46 *
V
For Participating Jurlsdictlon/Enilty (Name and Title of Authorized Official)
93� 409
i..— urirl_AnnOO IAIM%
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 funds before
obligating or expending any funds provided under this
Agreement.
93- 409
HOME PROGRAM DESCRIPTION
CITY OF MIAMI, FLORIDA
May 4, 1993
Grant Year 1993
93- 409
Brief Description of Major Activities
1. NEW CONSTRUCTION - MULTIFAMILY (Ref. 1992 CHAS II-11
II-5, III-10)
The City of Miami is anticipating using $1,000,000* (see
pg. 4) in HOME funds for new construction of multifamily
units located throughout the City of Miami.
L
The HOME Multifamily New Construction Program is designed to
provide financial assistance to developers in connection with the
Eproduction of 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.
Project Eligibility - 5 or more units or SRO (Single Room
Occupancy) units.
Program Availability - City wide
Equity - A minimum equity of 10% is required.
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93- 409
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
j 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 I -IUD 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.
93- 409
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Application Fee
Annual Inspection
- A non-refundable application
fee in the amount of $50 shall
be submitted with each
application.
- Newly constructed building(s)
shall be subject to annual
inspections to insure
compliance with minimum
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
f 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.
93- 409
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Use of Fees/Fines - 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.
* The City of Miami reserves the right to utilize the
$1,000,000 of 1993 HOME Program funds earmarked for new
construction activities to fund Rehabilitation and/or First
Time Homebuyer activities in the event that a proposed four
(4) year building moratorium is imposed upon the central
portion of Dade County, thereby calling a halt to all
residential new construction activity.
The problem is the capacity to transfer sewage to the
Virginia Key plant via a 1950's pipe in the bay. Currently,
the pipe is in a state of near collapse and during the time
projected to replace the main, a development ban is being
proposed for most of the City of Miami.
i
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93- 449
s
2. SUBSTANTIAL REHABILITATION (Ref. 1992 CHAS II-1, II-5,
II-13, III-10)
The City of Miami is anticipating using $294,750 in HOME
funds for the substantial rehabilitation of multifamily
units located throughout the City of Miami.
.a .411401 ..e Air 0:
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 to 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.
MAJOR PROGRAM HIGHLIGHTS
Project Eligibility - 5 or more units OR SRO (Single
Room Occupancy) units which at time of application
do not meet code.
Program Availability - Citywide
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. For the
1993 Program Year the 65% and 50% Rent Limit figures
shall be utilized as they are determined to be less
than the FMR's.
HIGH RENT - 80% of
project shall have
Limit figure.
LOW RENT - 20% 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.
93- 409
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1
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.
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
requirements i.e. - maximum HOME rents, maximum tenant
income limits and property code compliance shall result
in the application of the Remedies for Breach of Deed
Restrictions as stated below.
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93- 409
Remedies for Breach of Deed Restrictions - for project
noncompliance, the following sanctions will be
invoked:
FINES - 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
correct the noncompliance.
FORECLOSURE - 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.
-8-
93- 409
3. OTHER REHABILITATION (Ref. 1992 CHAS II-1, II-51 II-
13, III-10)
The City of Miami is anticipating using a total of
$825,000 in IiOME 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.
93- 409
11
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.
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93- 409
Ej
4. FIRST-TIME HOMEBUYERS' FINANCING PROGRAM (Ref. 1992
CHAS II-21 II-
5, III-11)
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
HOME funding to consummate the acquisition. The City of
Miami is anticipating using $500,000 in HOME funds for this
program.
PROGRAM PURPOSE AND OBJECTIVES
The Program is funded with HOME Program funds provided to
the City of Miami by the U.S. Department of Housing and
j Urban Development. The City's Department of Development and
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
mortgage loans or (c) a combination thereof; for the
purchase of a newly constructed home.
Elialble 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
Development Organization (CHDO).
MAJOR PROGRAM HIGHLIGHTS
93- 409
-11-
. Eligible Mortgagors
Applicants must be
has not owned a
immediately prior
purchaser's gross
median income for t
h
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
ize_
Limits_5a
_ 00%
1
$14,650
$23,400
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-
93- 400
i
. 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.
Bedrooms
0
1
2
3
4 or more
HOME Amount
$32,612
37,384
45,458
58,807
64,552
I . 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-
93- 409
. Second Mortgage Financing
(A) MAXIMUM SECOND MORTGAGE AMOUNTS
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-.
•M
2. $32,612 for a zero bedroom unit.
$37,384 for a one bedroom unit.
1 $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
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
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- 93- 409
. 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 newly constructed 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.
-15- 93- 409
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
Rehab ($15,000 & above) 15 years
Rehab ($14,999 & below) 5 years
- Type of Housing - Single family, duplex, triplex, four
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
f thirty (30) years.
This 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.
-16- 93- 409
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.
93- 409
-17-
PROPOSED USE OF HOME FUNDS
Activity Total HOME $3,493,000 Rental $ _ Owner $
New Construction $1,000,000 (City)
Substantial
Rehabilitation $ 294,750 (City)
Other
Rehabilitation $ 825,000 (City)
Acquisition $ 500,000 (City)
1st Time Homebuyer
Tenant Assistance 0
Administration $ 349,300 (City)
$523,950 (CHDO's)
$1,123,950 $400,000
$ 294,750 0
$ 825,000 0
0 $500,000
0 0
N/A N/A
TOTAL $2,243,700 $ 900,000
PRQC M FUNDS
5. HOME ASSISTED COMMUNITY HOUSING DEVELOPMENT ORGANIZATION
DEVELOPMENT PROGRAM (Ref. 1992 CHAS II-2, II-5 II-141
III-11)
The City of Miami is anticipating using $523,950 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 (Pi). 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).
-19-
93- 409
s
2. To provide standard housing affordable to low and very
low income residents.
3. To complement other public neighborhood revitalization
efforts.
_�s �• •i� Leo i_ L_ !- .J
CHDO Program Eligibility - the CHDO must meet all the
applicable requirements of the Home Program as listed
below:
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.
f
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.
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.
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. For the 1993
Program Year the 65% and 50% Rent Limit figures shall be
utilized as they have been determined to be less than the
FMR's.
93- 409
-20-
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
tenantswith 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.
Code 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.
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.
Deed Restrictions - the mortgage document executed at
time of loan closing shall provide for the following
Program requirements to be updated annually:
-21-
93- 409
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.
93- 409
-22-
CHDO SET -ASIDE $523,950
Activity Proposed S Allocation
New Construction $523,900
Substantial Rehabilitation 0
Other Rehabilitation 0
Acquisition 0
Tenant Assistance 0
•.1.5 11 ...]r.. t ..... '1: tl. Itl... 1'. ... ..r :.� .a 1'. _r� �. 1 ...: ".�.. :.. !'� ... _.' .1 •.. .. .. ... .J .. ... .. .t. .•ice_. l..f � _1_....... t.__.. r. ... Ii r3 ..... .. ,......�... ....
The City of Miami is anticipating using $349,300 or 10% of its
1993 HOME Program allocation for administrative expenses incurred
during the period between October 28, 1992 and September 30,
1993.
-24- 93- 409
At this time it is uncertain whether the City of Miami will be
required to provide matching funds for the 1993 HOME Program
allocation. It is possible that the City will have its match
liability either reduced or eliminated due to Hurricane Andrew
and/or the application of the fiscal distress formula.
In the event that match funds are required for the 1993 HOME
Program allocation, the City of Miami anticipates providing match
funds from the following sources:
. 1976 General Obligation Housing Bond Funds
. 1986 Special Obligation Housing Bond Funds
. Dade County Documentary Surtax Program Funds
-25-
u
93- 409
CITY OF MIAMI
AFFIRMATIVE MARKETING COMPONENT
We.u__ _;.. .❑ I
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:
I. 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.
-26- 93- 409
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
and the Diario Las Americas andlor referrals made by
local community based organizations r�_1.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- 93- 409
4. The City of Miami will insure that adequate records are
maintained to meet the racial, ethnic and gender
characteristic record -keeping requirements concerning
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 on:
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)
i 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.
-as-
93- 409
0
If an owner continues to fail to meet the affirmative
marketing requirements, the City of Miami, after fair
warning and an opportunity to correct identified
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.
11
-29- 93- 409
i
CITY OF MIAMI, FLORIDA
COMMUNITY BASED ORGANIZATIONS
Mr. Henri -Robert Lamothe 751-4692
Executive Director
Haitian Task Force
Incorporated
5925-27 N.E. 2nd Ave., Mezzanine
Miami, Florida 33137
Ms Maira Diaz 579-6336
Executive Director
EDowntown Miami Business
Association, Inc.
One Biscayne Tower, Suite 1818
Miami, Florida 33131
Mr. Jay Rodriguez 643-1555
Executive Director
Small Business Opportunity
Center, Inc.
1417 West Flagler Street
Miami, Florida 33135
Mr. William Rios 576-0440
Executive Director
Wynwood Community Economic
Development Corporation Inc.
225 N.E. 34th Street, Suite 209
Miami, Florida 33137
Mr. Samuel Mason 757-7652
Executive Director
Martin Luther King Economic
Development Corporation, Inc.
6116 N.W. 7th Avenue
Miami, Florida 33127
Ms. Rosemary Canals 751-1222
Executive Director
Greater Biscayne Boulevard
Chamber of Commerce, Inc.
8101 Biscayne Boulevard, Suite 509
Miami, Florida 33138
-30- 9 3- 409
Mr. Octavio Descalzo 324-8127
Executive Director
Little Havana Development
Authority, Inc.
970 S.W. 1st Street, Suite 407
Miami, Florida 33130
Mr. Carlos Brito 635-3561
Executive Director
Allapattah Business Development
Authority, Inc.
2515 N.W. 20th Street, Suite 2A
Miami, Florida 33142
Mr. David Alexander 446-3095
Executive Director
f Coconut Grove Local Development
Corporation, Inc.
3582 Grand Avenue
Miami, Florida 33133
Mailing Address
P.O. Box 75
Miami, Florida 33133
Mr. Henry W. Daniels 372-0682
President
St. John Community Development
Corporation, Inc.
1324 N.W. 3rd Avenue
Miami, Florida 33133
Mailing Address
P.O. Box 015344
Miami, Florida 33101-5344
Ms. Jackie Bell 573-8217
New Washington Heights
Development Conference, Inc.
1600 N.W. 3rd Avenue
Miami, Florida 33127
Mr. Otis Pitts, Jr. 757-3737
President
Tacolcy Economic Dev. Corp.
645 N.W. 62nd Street, Suite 300
Miami, Florida 33150
-31-
93- 409
Bob Pollack
Executive Director 374-5503
Greater Miami Neighborhood
1 S.W. 15th Road
Miami, Florida 33131
T. Willard Fair 696-4450
President
Urban League of Greater Miami
8500 N.W. 25th Avenue
Miami, Florida 33147
Carlos Rodriguez-Quesada 649-7592
President
Lisette Rodriguez, Vice Sec.
Florida Housing Cooperative, Inc.
900 S.W. 22nd Avenue
Miami, Florida 33135
0
Manuel Rivero 856-2547
Executive Director
East Little Havana CDC
1699 Coral Way, Suite 510
Miami, Florida 33145
Jose Fabregas 642-1381
Executive Director
CODEC, Inc.
300 S.W. 12th Avenue, Suite A
Miami, Florida 33130
-32- 93- 409
t
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 in
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
I 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 Polic
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.
93-- 409
-33-
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.
-34-
93- 409
CERTIFICATIONS
.f .
93- 409
Attachment A ii..
Lcinatina Jurisdictions (P.J.I
f is
I . The HOME Program P.J. certifies, that:
(A) Before committing funds to any project, the P.J. will
evaluate each project and not invest any more HOME Funds
in combination with other Federal assistance than is
necessary to provide affordable housing.
(B) A submission of the program description is authorized
under State and Local. law (as applicable) and the P.J.
possesses the legal. authority to carry out the home
Investment Partnership Program in accordance with the
Home regulations, 24 CPR part 92.
I
(C) The P.J. 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 CPR part 24 and
the requirements of 24 CPR part 92.353..
(D) The P.J. certifies compliance with the Tenant Based
Rental Assistance requirements at 24 CPR part 92.211.'
See Attachment B.
(E) The P.J. certifies compliance with the drug -free
workplace requirements at 24 CPR part 24, subpart F.
See Attachment C.
(F) The P.J. certifies compliance with the anti -lobbying
requirements at 24 CPR part 87.
See Attachment D. '
n ..
Signatur Date: .
Ce i • ing Official,'
IIerbert J. Bailey
Assistant City Manager
0
93- 409
4
ATTACIIMENT B ,
TENANT BASED RENTAL ASSISTANCE
PARTICIPATING JURISDICTION (P.J.): City of Miami
(Applicable to all P.J.s currently. proposing this type of
assistance.)
The participating jurisdiction hereby certifies that the use
of IIOME 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, and specifies
the local market conditions that lead to the choice of this option:
' Lgnature: Date:
'Certifying Official
1
(Applicable to all P.J.s currently not proposing this type of
assistance.)
The Participating Jurisdiction (P.J.),hereby certified that
before it undertakes a 'Tenant- Based Rental Assistance Program, the
use of HOME funds forsuch an activity will be included in an
amended CHAS and provided to IiUD. This amendment will demonstrate
that this activity is an essential element of the P.J.Is annual
approved housing strategy for expanding the supply, affordability,
and availability of decent, safe, sanitary, and affordable housing,
and the local market conditions that led to the choice of this
option being specified. A
Signature Date:
Certi ng 0 f f i c i a 1
Herbert J. Bailey
Assistant City Manager
93- 409
N
ATTACHMEft C
CERTIFICATION REGARDING DRUG -FREE REQUIREMENTS
A. The grantee certifies that it will provide a drug -free
workplace by:
(a) 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;
(b) Establishing a drug -free awareness program to inform
employees about-
(1) The dangers of drug abuse in the workplace;
(2) the grantee's policy of maintaining a drug -free ,
workplace;
(3) Any available drug counseling, rehabilitation, and
employee assistance programs; and
(4) the penalties that may be imposed upon employees
for drug abuse violations occurring'int the
workplace;
(c) 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 (a);
(d) Notifying the employer in the statement required by
paragraph (a) that, as a condition of employment under
the grant, the employee will-
(1) Abide by the terms of the statement; and
(2) Notify the employer of any criminal drug statute
conviction for a violation occurring in the
workplace no later than 5 days after such
conviction;
(e) Notifying HUD within 10 days after receiving notice
under subparagraph (d)(2) from an employer or otherwise
receiving actual notice of such conviction;
93- 409
t
i�
(f) taking one of the following actions, within 30 days of
receiving notice under subparagraph (d)(2), with
respect to any employee who is convicted-
(j) taking appropriate personnel action against such
an employee, up to and including termination; or
(2) Requiring such employee to participate `
satisfactorily in a drug abuse assistance of
rehabilitation program approved for such purposes
by a federal, State, or local health, law
enforcement, or other appropriate agency;
(g) Making a good faith effort to continue to maintain a
drug -free workplace through implementation of
paragraphs (a), (b), (c), (d), (e), and (f).
)
PLACE OF PERFORMANCE
FOR CERTIFICATION REGARDING DRUG -FREE WORKPLACE REQUIREMENTS
Name of Grantee: City of Miami, Florida Date: March 1.0, 1993
Grant Program Name: HOME Program
Grant Number: M93-MC-12-0211
The grantee shall insert in the space provided below the
site(s) expected to be used for the performance of work under the
grant covered by the certification:
PLACE OF PERFORMANCE .(Including street address, city,
county, state, zip code for each site):
City of Miami, Florida
Dept. of Development and Ilou s i.nq Conservation
300 Biscayne Blvd. Way, Suite 401.
Miami., Florida 33131 (Dade CounL-y)
Total estimated number of employees expected to be engaged in the
performance of the grant at the site (s) noted above:
Six (6)
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Z
ATTACHMENT D
ANTI -LOBBYING
CERTIFICATION FOR CONTRACTS, GRANTS, LOANS
AND COOPERATIVE AGREEMENTS.
The undersigned certifies, to the best of his or her
knowledge and belief, that:
k
(1) No Federal appropriated funds have been paid or will be
paid, by or on behalf of the undersigned, to any person for
influencing or attempting to influence an officer or employee of
any agency, a Member of Congress, and officer or employee of
Congress, or an employee of a Member of Congress in connection
with the awarding of any Federal contract, the making of any
federal grant, the making 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 an employee of a
Member of Congress in connection with this Federal contract,
grant, loan, or cooperative agreemenL•, the undersigned shall
complete and submit Standard Form-LLL, "Disclosure Form To Report
Lobbying," in accordance with its instructions.
(3) The undersigned shall require that the language Qf 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 certify and disclose accordingly.
This certification is a material representation of fact upon
which reliance was placed when this transaction was made or
entered into. Submission of this certification is a prerequisite
for making or entering into this, transaction imposed by section
1352, title 31, U.S. Code. Any person who fails to file the ••
required certification shall be subject to a c).vil penalty of not
less than $10,000 and not more that $100,000 for each such
failure.
a
Signatur 0- Date:
Cert ing Offic' 1
Herbert J. Bailey
Assistant City Manager
93- 409
CITY OF MIAMI, FLORIDA
�1
INTER -OFFICE MEMORANDUM
To The Honorable Mayor and DATE
Members of the City Commission
FROM : Ces io
Cit a er
SUBJECT
'JUN 2 8 M FILE :
Resolution Authorizing
City Manager to Accept
$3,493,000 Home Program
REFERENCES: Grant
City Commission Agenda
ENCLOSURES: Item
July 6, 1993
It is respectfully recommended that the City Commission adopt the
attached resolution authorizing the City Manager to accept a
grant in the amount of $3,493,000 from the U.S. Department of
Housing and Urban Development in connection with the
implementation of the Home Investment Partnerships 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.
jtm
1-04"'Ic"Z1911�•
The Department of Development and Housing Conservation recommends
ratification of the attached resolution authorizing the City
Manager to accept a grant in the amount of $3,493,000 from the
U.S. Department of Housing and Urban Development in connection
with the implementation of the Home Investment Partnerships
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 Partnerships 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.
S-1
93- 409
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 $3,493,000
in Home Investment Partnerships Program funding in connection
with the implementation of the HOME Program in the City of Miami
for fiscal year 1993-1994.
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. All HOME funds must benefit persons below eighty
(80%) percent of median income for Dade County, which represents
approximately $30,400 for a family of four. In the case of
multifamily rental housing projects at least ninety (90%) percent
of HOME Program funds must serve households with income below
sixty (60%) percent of median income for Dade County which
represents approximately $22,800 for a family of four. HOME
Program funds used for homeownership projects can only be used to
assist low-income first-time homebuyers or a household that has
not owned a home in the three (3) year period prior to the
purchase of a HOME Program assisted house.
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:
.norable Mayor and
::ambers of the City t -mission
Page 3
The r-1E Multifamily New Construction Program is designed to
provj,,3 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 1 or part of the project cost. The financing terms
will :.low the rents necessary to support the operations and
debt -ervice of the project to be affordable to very -low and
low-_acome tenants. Approximately $1,000,000 in HOME funds
are being recommended for the construction of new
multifamil y.nits in the City.
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 $1,119,750 in HOME funds are being
recommended for the rehabilitation of substandard
multifamily housing located throughout the City.
The HOME assisted Community mousing 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 develeT.iers by mandating that a minimum of
fifteen (15%) percent c. each participating jurisdiction's
HOME allocation be set -aside for investment in housing
owned, sponsored, or developed by CHDO's.
93- 409
IN
Honorable Mayor and
Members of the City Commission
Page 4
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
$523,950 in HOME funds are being recommended for this
activity.
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 CRCs/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. A "displaced
homemaker" and a "single parent" are two types of households
that can qualify as first-time homebuyers that have owned a
home within the three years immediately prior to purchase.
Approximately $500,000 in HOME funds are being recommended
for this activity.
For the first time the U.S. Department of Housing and Urban
Development has allowed the City of Miami and other participating
jurisdictions (PJs) to use up to ten percent (10%) ($349,300) of
its 1993 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 Partnerships Program in the City of Miami, it is
recommended that the City Commission approve the attached
resolution.
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