HomeMy WebLinkAboutR-93-0576OR
J-93-601
7/20/939 3 _
RESOLUTION NO.
A RESOLUTION, WITH ATTACHMENT(S), APPROVING
THE REVISED PROGRAM GUIDELINES ATTACHED HERETO
AND INCORPORATED BY REFERENCE FOR THE CITY'S
SINGLE FAMILY RESIDENTIAL REHABILITATION LOAN
PROGRAM; FURTHER AUTHORIZING THE CITY MANAGER
TO IMPLEMENT THE AFOREMENTIONED PROGRAM IN
ACCORDANCE WITH SAID GUIDELINES.
WHEREAS, in February of 1978, through Resolution No. 78-141,
the City Commission authorized the implementation of the
Community Development Block Grant assisted Single Family
Residential Rehabilitation Loan Program; and
WHEREAS, the City's Single Family Residential Rehabilitation
Loan Program is designed to encourage neighborhood redeveloment
and the conservation of the City's existing residential housing
stock; and
WHEREAS, since 1978 the cost of building materials and
construction labor has increased dramatically due to overall
inflation and Hurricane Andrew; and
WHEREAS, certain revisions to the Program's implementation
guidelines are necessary to increase the level of program funds
as rehabilitation financing available to both homeowners and
owner -investors in connection with the preservation of the City's
existing residential housing stock;
CITY Cn_�,�I %sslolff
r t
7
t,�t•�. tl
Resolution No,
Y
Be
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the
Preamble of this Resolution are hereby adopted by reference
thereto and incorporated herein as if fully set forth in this
Section.
Section 2. The revised Single Family Residential
Rehabilitation Loan Program guidelines, attached hereto and
incorporated by reference, are hereby approved.
Section 3. The City Manager is hereby authorized to
implement the City's Single Family Residential Rehabilitation
Loan Program in accordance with said guidelines.
Section 4. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this 27th day of September ,
1993.
AVIER L. VAREZ, MAYOR
AT ES
MA TY HIRAI, CITY CLERK
93- 576
-2
COMMUNITY DEVELOP -A�EVIE
i
FRANK CASTAN8DA; DIRECTOR
DEPARTMENT OF COMMUNITY DEVELOPMENT
PREPARED ANC i PROVED BY:
CZ
SEAN F . JONE --
ASSISTANT CITY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
A QU, JON S III
CITY ATTORN Y/
W
CITY OF MIAMI
SINGLE FAMILY REHABILITATION PROGRAM
(1 to 4 Units)
GUIDELINES
Decent, Safe and Sanitary dousing - A dwelling unit or building
meeting Federal Occupancy Standards as defined in 24 CFR 882.109
and CFR 882.405 (See Appendix for standards).
Dwelling Unit - An independent living unit containing, at a
minimum, a bathroom, kitchen or kitchenette and a living
area/bedroom.
Grant - An outright gift of cash requiring no repayment.
Ijazardous Condition - A code violation that is an immediate,
serious threat to the health and/or safety of the occupant of a
dwelling unit.
Income - The gross amount received from all sources by every
person residing in the dwelling including wages, pension, Social
Security, interest, rent, dividends, etc.
Income Limits - The maximum amounts that can be earned to qualify
for a specific assistance category, based on family size (those
actually living at the property) and the median income for Miami
as determined by the Department of Housing and Urban Development
(See Appendix for current amounts).
Investor -Owner - The Title holder to a residential structure who
does not live in the structure.
Loan - An advance of funds which must be repaid and is secured by
a mortgage on the property.
Owner-Qccupant - The Title holder to a residential structure
whose primary living unit is located in the structure.
Residential - A property used only for dwelling purposes. No
commercial or office activities are allowed on the property.
Ingle Family Dwelling - A property of one to four dwelling
units.
Taraet Area - An administratively designated geographic part of
the City of Miami in which Community Development activities are
being carried out and which contain slums and/or blighting
conditions.
PROGRAM DESCRIPTION:
93-- 576
-1-
M
A. Owner Occupant
1. Grant: A family having a gross income under 50% of
median income (Category I of the Benefit Schedule) may
receive a grant to correct a hazardous condition or
conditions and correct other code violations. The grant
may not exceed the .lessor of (1) the actual cost of
rehabilitation or ( 2 ) $15,000. No grant may be made if
any hazardous conditions would remain after
rehabilitation. If all hazardous conditions are
corrected, other code violations may be corrected within
the $15,000 limit. In no event may a grant be made for a
property containing rental units. If the family can
afford a loan (based on Program guidelines) to bring the
property into code compliance, it may not elect to refuse
the loan and receive only the grant if that would leave
the property with code violations.
2. Loan: A family having a gross income under 80% of median
income may receive a loan to bring the property to the
decent, safe and sanitary housing standard and correct
all existing code violations. The loan may not exceed
the lessor of (1) the actual cost of rehabilitation or
(2) $35,000 per dwelling unit. Properties receiving a
loan must be able to meet the decent, safe, and sanitary
housing standard after rehabilitation. A loan may be
used in conjunction with any other assistance program to
make rehabilitation feasible. If other such assistance
is available, it must be used to the maximum extent
possible before a loan is provided, except that an
applicant who is eligible for a grant may choose to
decline all or part of the grant in favor of other
assistance provided.
B. Investor Owner
An investor owner may receive a loan to bring a rental,
single family dwelling to the decent, safe and sanitary
standard provided 100% of the tenants of the property must
have a gross income not to exceed 80% of median income.
The cost of rehabilitation may not exceed $35,000 for the
first dwelling unit and $15,000 for each additional unit to
a maximum of $80,000 per property. The owner may not
project a return on investment exceeding 20% per year,
based on an occupancy rate of 95% for the first year after
rehabilitation. A rent regulatory agreement will be
required for existing tenants. Properties receiving a loan
must be able to meet the decent, safe, and sanitary housing
standard after rehabilitation. Such loans will be offered
at a 4% interest rate for a 15 year term.
9 3 - 576
-2-
ELIGIBILITY
A. C;a
1.An applicant must be the owner occupant of a residential
property Located in the City of Miami.
2. The property must not have received assistance for
housing rehabilitation from the City of Miami, Dade
County or the U.S. Department of Housing and Urban
Development during the previous five years.
3. The applicant's income is less than 50 percent of the
median income for Dade County.
4. The applicant shall have evidence of title to the
property to be rehabilitated. Property held via a land
sales contract, where title is transferred only upon
completion of a series of installment payments may be
considered eligible if the requirements in the Appendix
are met.
5. The applicant shall have paid all due city, county,
federal, and school taxes.
6. The Property must need repairs to meet the decent, safe,
and sanitary standard.
7.The property shall have no rental units.
S. The property must conform to the requirements of the
City of Miami Zoning Ordinance.
B.Loans
1. All loan applicants must satisfy the following
requirements.
a. The applicant must be the owner of a residential
property located in the City of Miami.
b. The property must need repairs to meet the decent,
safe, and sanitary standard.
c. The applicant shall have adequate evidence of clear
title to the property to be rehabilitated.
d. The applicant must demonstrate the ability to repay
the loan within the designated loan term.
e. The applicant shall have paid all due city, county,
federal, and school taxes.
93- 576
-3-
f. The property must not have received assistance for
housing rehabilitation from the City of Miami, Dade
County or the U.S. Department of Housing and Urban
Development during the previous five years.
g. The property must conform to the requirements of the
City of Miami Zoning Ordinance,
2. Owner -occupant applicants are subject to the following
additional requirements.
a. Property held via a land sales contract may be
considered eligible if the requirements in the
Appendix are met.
b. Any case where the loan repayment plus all other
estimated housing costs (utilities, taxes, prior
mortgages, insurance, maintenance, etc.) exceeds 40%
of the applicant's family income shall be reviewed to
insure that an undue burden is not placed on the
applicant.
Any case where the total estimated housing cost,
including loan payment, plus current- credit liability
plus fixed monthly charges exceeds 70% of the
applicant's family income shall be reviewed to insure
that an undue burden is not placed on the applicant.
Applicant's disposable income after current
obligations should be sufficient to provide applicant
adequate food, entertainment, transportation and
incidental expenses.
Any applicant who does not demonstrate the ability to
repay the loan within the loan term may have the loan
co -signed by an individual who can demonstrate that he
has the ability to repay the loan within the loan
term. The co-signer must meet the same credit
requirements as the applicant and shall furnish
appropriate verifications as requested. While not
required, the co-signer should be a family member, if
possible one who will inherit an interest in the
property. For purposes of assigning a category
number, the co-signer's income shall not be used.
c. The applicant may not have been a party to a
foreclosure judgment within ten years prior to the
loan closing.
d. The applicant should satisfy any liens recorded
against the property prior to loan processing.
93- vd6
-4-
e. The applicant's credit history for the past twelve
month period may not show any outstanding credit
problems.
ELIGI LE CQST:
The Actual cost of repairs including replacement required
to correct a hazardous condition or a code violation. All
hazardous conditions must be corrected before any other
work may be done.
is •��
1. The actual cost of rehabilitation necessary to bring the
property to the decent, safe, and sanitary standard.
(This is the mandatory minimum work required for any
loan).
2. The actual cost of rehabilitation necessary to bring the
property to the South Florida Building Code.
3. The cost of rehabilitation to correct or remove
incipient violations including all physical conditions
of the property which, if not repaired, would
deteriorate into actual violation of the decent, safe,
and sanitary standard of the South Florida Building Code
within two years.
4. The cost of general property improvements (G.P.I.).
Such improvements shall not be the major focus of the
loan, and shall usually be less than 40% of the cost of
rehabilitation. (Rehabilitation paid by grant funds
shall not be considered part of the cost of
rehabilitation for the purpose of calculating G.P.I.'s.
G.P.I.'s may be included only if the minimum
improvements required are satisfied first.
5. The cost of rehabilitation to convert a property, if
allowed by the City of Miami Zoning Ordinance, by
increasing or decreasing the number of units on the
property.
6. The cost of building permits and related fees required
to carry out the proposed rehabilitation work, including
but not limited to architect and engineering fees.
7. The cost of changing a permitted nonconforming use to
meet the requirements of the City of Miami Zoning
Ordinance.
93- *576
-5-
N
A. RANTS
Any items not meeting the eligible cost requirement is
ineligible.
B. LOANS
1. Work so extensive as to be equivalent to new
construction or reconstruction of the property. (This
does not exclude so-called "gut" rehabilitation of a
property if necessary to meet the South Florida Building
Code.).
Z.Excessive G.P.I.Is which are inconsistent with the G.P.I.
requirements stated above. (However, the owner may
provide the difference in cash at the loan closing.)
3. The repair or construction of swimming pools, but not
the cost to fill in or eliminate them from the property.
4. Materials, fixtures, equipment or landscaping of a type
or quality which substantially exceeds that customarily
used in Miami for properties of the same general type as
the property to be rehabilitated. (However, the owner
may provide the difference between the cost of such
materials, fixtures, etc., as he desires and as the
program will allow in cash at the loan closing.)
5.Purchase, installation or repair of furnishings.
6.Costs of acquiring the property to be rehabilitated.
7. Any reimbursement for work done prior to the approval of
the loan, or contracted for, either verbally or in
writing, prior to the approval of the loan.
B. Payment of any lien or judgment against the property
including back taxes.
A. Interest for owner -occupied loans shall be based on family
income. Specific rates may be found in the Benefit
Schedule. Investor -owners shall pay interest at the rate
of four percent per year on the remaining principle
balance.
B. The minini��m monthly payment for all loans shall be twenty
dollars. This requirement shall not be waived.
93- v �s
--6-
C. Loans may be made for a period not to exceed fifteen
years. Loans shall be made for the shortest time possible
without causing an undue burden on the applicant. As a
guideline, the applicant should not be paying more than
40% of his income for housing costs nor more than 70% of
his income for housing costs, credit liability and fixed
expenses.
D. The borrower may pre -pay either part or all of the loan at
any time with no penalty charged for such payment. The
annual interest charge shall be pro -rated to the date of
such payment. In the event that part of the loan is pre-
paid, the monthly payment shall not be changed.
E. Borrowers shall be allowed a 15 calendar day grace period
to pay each monthly installment with no late charges. A
late charge equal to four percent of the amount due shall
be added to each payment received after the grace period.
The late charge shall be compounded monthly. A borrower
shall be considered delinquent if any installment is not
paid within the grace period. Delinquency can be avoided
upon payment of all due installments. A borrower who is
delinquent may be in default of the loan. The City of
Miami may take legal action against such delinquent
borrowers including a formal "default" proceeding to take
possession of the property and sell the property to
recover the unpaid loan principal. Such legal proceedings
may also be used if the borrower violates any of the
conditions of the loan specified in these guidelines, the
Loan Note, or the Mortgage,
F. All owner -occupants, including grant recipients, must
maintain the property as their principal place of
residence for a period of not less than five years from
the date of the loan closing. In addition both investor -
owners and owner -occupants must retain title to the
property for the same period of time. Upon a request in
writing, the City may permit a borrower to transfer title
before the five year period has expired. A borrower who
does not comply with this provision may be required to
repay the amount provided by the City of Miami at an
interest rate as stated in writing at the time of closing.
G. Failure of the City of Miami to exercise any option or
penalty provided in these Guidelines, the dote or Mortgage
shall not be considered a permanent waiver of such option
or penalty.
The following provision applies only to owner -occupant borrowers.
H. The Director of the Department of Development and Housing
Conservation shall have the power to waive all or part of
the monthly loan repayment above the minimum payment.
Such waiver may be for a period not to exceed two years.
The waiver may be extended for additional two year
periods. The Director shall document the reasons for such
waiver in the applicant's file. To extend a waiver, the
Director mast examine the reasons for the waiver and
determine that they have not changed or that new facts
would justify an extension of the waiver. The waiver
shall constitute an extension in time of the loan. The
minimum payment: shall reduce the loan principal during the
term of the waiver. Upon the expiration of the waiver,
the borrower shall resume paying the originally specified
monthly payment and shall be informed of the time required
to finish repaying the loan.
WAIVERS
The Director of the Department of Development and Housing
Conservation shall have the authority to waive any requirement
stated in these guidelines to further the purposes and objectives
of the Community Development Program of the City of Miami. All
such waivers shall be documented in the applicant loan file.
However, the following items shall not be waived:
A.The requirement that property receiving a loan must meet
the rehabilitation standards of 24 CFR 882.109 and 24 CFR
882.405; and
B.The minimum monthly loan repayment of $20.
-8=
93- 576
Housing rehabilitated in this program shall meet the Performance
Requirements set forth .in this section. In addition, the
housing shall meet the Acceptability Criteria set forth in this
section.
A. Sanitary Facilities
1. Performance Requirement. The dwelling unit shall include
its own sanitary facilities which are in proper operating
condition, can be used in privacy, and are adequate for
personal cleanliness and the disposal of human waste.
2. Acceptability Criteria. A flush toilet in a separate,
private room, a fixed basin with hot and cold running
water, and a shower or tub with hot and cold running water
shall be present in the dwelling unit, all in proper
operating condition. These facilities shall utilize an
approved public or private disposal system.
1. Performance Requirement. The dwelling unit shall contain
suitable space and equipment to store, prepare, and serve
foods in a sanitary manner. There shall be adequate
facilities and services for the sanitary disposal of food
wastes and refuse, including facilities for temporary
storage where necessary. (e.g., garbage cans).
2. Acceptability Criteria. The unit shall contain the
following equipment in proper operating condition:
cooking stove or range and a refrigerator of appropriate
size for the unit and a kitchen sink with hot and cold
running water. The sink shall drain into an approved
public or private system. Adequate space for the storage,
preparation and serving of food shall be provided.
C. Space and_,ecurity
1. Performance Requirement. The dwelling unit shall afford
the family adequate space and security.
2. Acceptability Criteria. A living room, kitchen area, and
bathroom shall be present; and the dwelling unit shall
contain at least one sleeping or living/sleeping room of
appropriate size for each two persons. Exterior doors and
windows accessible from outside the unit shall be
lockable.
-9- 93- v76
a !- Mll=_ . ! Mil -1
1. Performance Requirement. The dwelling unit shall have and
be capable of maintaining a thermal environment healthy
for the human body.
2. Acceptability Criteria. The dwelling unit shall contain
safe heating and/or cooling to each room in the dwelling
unit appropriate for the climate to assure a healthy
living environment. Unvented room heaters which burn gas,
oil or kerosene are unacceptable.
n t� •� -I!
1. Performance Requirement. Each room shall. have adequate
natural or artificial illumination to permit normal indoor
activities and to support the health and safety of
occupants. Sufficient electrical sources shall be
provided to permit use of essential electrical appliances
while assuring safety from fire.
2. Acceptability Criteria. Living and sleeping rooms shall
include at least one window. A ceiling or wall type light
fixture shall be present and working in the bathroom and
kitchen area. At least two electrical outlets, one of
which may be an overhead light, shall be present and
operable in the living area, kitchen area, and each
bedroom area.
1. Performance Requirement. The dwelling unit shall be
structurally sound so as not to pose any threat to the
health and safety of the occupants and so as to protect
the occupants from the environment.
2. Acceptability Criteria. Ceilings, walls, and floors shall
not have any serious defects such as severe bulging or
leaning, large holes, loose surface materials, severe
buckling or noticeable movement under walking stress,
missing parts or other serious damage. The roof structure
shall. be firm and the roof shall be weathertight. The
exterior or wall structure and exterior wall surface shall
not have serious defects such as serious leaning,
buckling, sagging, cracks or holes, loose siding, or other
serious damage. The condition and equipment of interior
and exterior stairways, halls, porches, walkways, etc.
shall be such as not to present a danger of tripping or
falling. Elevators shall be maintained in safe and
operating condition.
93- 576
-10-
1. Performance Requirement. The dwelling unit shall be free
of pollutants in the air at levels which threaten the
health of the occupants.
2. Acceptability Criteria. The dwelling unit shall be free
from dangerous levels of air pollution from carbon
monoxide, sewer gas, fuel gas, dust, and other harmful air
pollutants. Air circulation shall be adequate throughout
the unit. Bathroom areas shall have at least one openable
window or other adequate exhaust ventilation.
1. Performance Requirement. The water supply shall be free
from contamination.
2. Acceptability Criteria. The unit shall be served by an
approved public or private sanitary water supply.
1. Performance Requirement. The dwelling unit shall be in
compliance with HUD Lead Based Paint regulations, 24 CFR,
Part 35, issued pursuant to the Lead Based Poisoning
Prevention Act, 42 U.S.C. 4801.
2. Acceptability Criteria. Same as Performance Requirement.
J. Access
1. Performance Requirement. The dwelling unit shall be
usable and capable of being maintained without
unauthorized use of other private properties, and the
building shall provide an alternate means of egress in
case of fire.
2. Acceptability Criteria. The dwelling unit shall be usable
and capable of being maintained without unauthorized use
of other private properties. The building shall provide
an alternate means of egress in case of fire (such as fire
stairs or egress through windows).
/... ,..!
1. Performance Requirement. The site and neighborhood shall
be reasonably free from disturbing noises and
reverberations and other hazards to the health, safety,
and general welfare of the occupants.
-11- 93r ►76
2. Acceptability Criteria. The site and neighborhood shall
not be subject to serious adverse environmental
conditions, natural or manmade, such as dangerous walks,
steps, instability, flooding, poor drainage, septic tank
back-ups, sewage hazards or mudslides; abnormal air
pollution, smoke or dust; excessive noise, vibration, or
vehicular traffic; excessive accumulations of trash,
vermin or rodent infestation; or fire hazards.
1. Performance Requirement. The unit and its equipment shall
be in sanitary condition.
2. Acceptability Criteria. The unit and its equipment shall
be free of vermin and rodent infestation.
Performance Requirement. Caulking and weatherstripping are
required as energy conserving improvements. Other
appropriate energy conserving improvements such as insulation
and storm windows must be accomplished as part of the
rehabilitation under this Program, to the extent that the
Program determines these improvements to be practicable, cost
effective and financially feasible.
APPENDIX
An applicant who is a purchaser -occupant of a single-family
dwelling under an installment land sales contract for the
acquisition of title to the property is eligible for assistance
provided that:
A. The contract is a written legal instrument under which the
purchaser -occupant has full use, possession, and quiet
enjoyment of the property and equitable title to the
property.
B. The seller of the property holds fee simple title to the
property and is legally unable to sell the property or use
it for collateral during the term of the contract.
C. The seller and any subsequent holder of the title to the
property are obligated, without qualification, to convey
to the purchaser fee simple title and a deed to the
property upon satisfaction of the contract terms.
93-- 576
-12-
FEE STRUCTURE_
The following fee structure shall be in effect for the Single
Family Residential Rehabilitation Program:
A -Application Fee
A non-refundable application fee in the amount of $15.00
shall be assessed each application for financial
assistance.
B.Loan Commitment Fee
A non-refundable loan commitment fee in the amount of one-
half (1/2) point (.005) calculated on the dollar amount of
the City's loan. This fee shall apply to the following
types of financial assistance:
1.Combination Grant and Loan
For program participants receiving this form of
financial assistance the fee shall apply only to the
loan portion of the financing.
2. Loan
For program participants receiving this form of
financial assistance the fee shall apply to the full
amount of the financing.
The payment of this fee may be made in one lump sum at the
time of loan closing OR the fee may be amortized over the
term of the loan.
-13-
93- 4576
ASSISTANCE CATEGORY
I Families with incomes
below 50% of median.
II
Families with
income
50% of median
income
and less than
55% of
median.
III
Families with
income
55% of median
income
and less than
60% of
median.
IV
Families with
income
60% of median
income
and less than
70% of
median.
V
Families with
income
70% of median
income
and up to and
includ-
ing 80% of the
median.
VI
Investor -owners
PROGRM BENEFIT
PROGRAM DESCRIPTION & PROGRAM BENEFIT
Direct grant up to $15,000 to correct
serious violations first, then other
code violations; no General
Improvements allowed. No rental
units assisted with a grant. Grant
forgiven over five year term provided
owner maintains occupancy.
Eligible for loan of $35,000 per
unit; Effective interest rate of 0%;
Maximum term of 15 years.
Eligible for loan of $35,000 per unit;
Effective, interest rate of 0%; Maximum
term of 15 years.
Eligible for loan of $35,000 per unit;
Effective interest rate of 1%; Maximum
term of 15 years.
Eligible for loan of $35,000 per unit;
Effective interest rate of 2%; Maximum
term of 15 years.
Eligible for loan of $35,000 per unit;
Effective interest rate of 3%; Maximum
term of 15 years.
Eligible for loan up to $35,000 for
the first dwelling unit; $15,000 for
each additional unit up to a maximum
of $80,000 per property. Effective
interest rate of 4%; Maximum term of
15 years.
-14-
93- 576
CATEGORY
APPENDIX
INCOME SCHEDULE
DEPARTMENT
OF DEVELOPMENT AND
HOUSING
CONSERVATION
INCOME SCHEDULE
1------------------NUMBER
OF MEMBERS IN
FAMILY ----------------
1
1
2
3
4
5
6
7' '
8+
14,657
16,750
18,844
20,938
22,625
24,313
25,969
27,657'
16,122
18,425
20,728
23,031
24,888
26,744
28,566
30,422
17,588
20,100
22,613
25,125
27,150
29,175
31,163
33,188
20,519
23,450
26,382
29,313
31,675
34,038
36,357
38,719
23,450
26,800
30,150
33,500
36,200
38,900
41,550
44,250
EFFECTIVE DATE: MAY 5, 1993
TO DETERMINE ASSISTANCE CATEGORY:
1.) FIND COLUMN MATCHING THE NUMBER OF MEMBERS IN FAMILY
(TOP ROW ACROSS).
2.) READ DOWN THAT COLUMN UNTIL THE INCOME FIGURE IS HIGHER
THAN THE TOTAL FAMILY INCOME.
3.) READ ACROSS TO LEFT-HAND COLUMN TO FIND THE CORRECT
CATEGORY.
93-- 576
-15-
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: The Honorable Mayor and DATE
Members of the City Commission
SUBJECT
Ces dio
FROM : Cit er
11*3440)441.64
REFERENCES
ENCLOSURES:
7
S E P 111993 FILE
Adoption of Revised Single
Family Rehabil.itati_on
Loan Program Guidelines
City Commission Agenda
Item - September 7, 1993
It is respectfully recommended that the City Commission adopt the
attached resolution approving the .revised program guidelines in
connection with the implementation of the City's Single Family
Residential Rehabilitation Loan Program.
The Department of Development and Housing Conservation recommends
ratification of the attached resolution approving the revised
program guidelines in connection with the implementation of the
City's Single Family Residential Rehabilitation Loan Program.
In February of 1978, through Resolution No. 78-1.41, the City
Commission approved implementation of the City's Community
Development Block Grant funded Single Family Residential
Rehabilitation Loan Program. Since the inception of the Program
in 1978, the City has provided below market loans and grants to
homeowners and owner -investors which has made it possible for the
rehabilitation of over 1,100 single family homes throughout the
City. To date, approximately $18.3 million in Community
Development Block Grant Program funding has been provided at
below market rates for much needed home repairs which, in turn,
has aided in stabilizing the City's predominately residential
neighborhood, in addition to providing business and employment
opportunities for small contractors, many of whom are minority
contractors.
In view of the increase in the cost of construction labor and
building materials since 1978 and more recently the increase
which the local construction industry has experienced since
Hurricane Andrew, the City's Single Family Residential
Rehabilitation Loan Program guidelines as presented for City
Commission approval, have been revised to accomplish the
following:
7-1
'�� 9 3 — t�
The Honorable Mayor and
Members of the City Commission
Page 2
Increase the amount of the rehabilitation grant from
$10,000 to $15,000 maximum per house
Increase the amount of the rehabilitation loan from
$30,000 to $35,000 maximum per house
Increase the investor -owner assistance to a maximum of
$80,000 for a 4-plex property
In an effort to bring the City's CDBG assisted Single Family
Residential Rehabilitation Loan Program in line with the
increased cost which has been experienced by the local
construction industry, City Commission adoption of the revised
program guidelines is recommended.
93- 576