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HomeMy WebLinkAboutR-92-0461J-92-474 7/9/92 n 461 RESOLUTION NO. A RESOLUTION, WITH ATTACHMENTS, AUTHORIZING THE CITY MANAGER TO ACCEPT A HOME INVESTMENT PARTNERSHIPS PROGRAM GRANT (HOME PROGRAM) IN THE AMOUNT OF $5,314,000 FROM THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD), FOR THE PURPOSE OF STIMULATING THE DEVELOPMENT AND CONSERVATION OF HOUSING AFFORDABLE TO LOW AND VERY LOW INCOME FAMILIES AND INDIVIDUALS IN THE CITY OF MIAMI; APPROVING THE HOME PROGRAM GUIDELINES ATTACHED HERETO AND INCORPORATED AND AUTHORIZING THE CITY MANAGER TO IMPLEMENT THE HOME PROGRAM IN ACCORDANCE HEREWITH; ALLOCATING SAID HOME PROGRAM GRANT FUNDS AS HEREIN DESIGNATED; FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE ALL THE NECESSARY AGREEMENTS AND DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, BETWEEN THE CITY OF MIAMI AND HUD FOR IMPLEMENTATION OF SAID HOME PROGRAM. WHEREAS, on November 28, 1990, President George Bush signed the Cranston -Gonzalez National Affordable Housing Act (NAHA) 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 itagemm r=?E*bE_ AMENDED BY: �� _ 4 � S ATTACHMENT (S) iQPaTAIfdEJ CITY COM USSAON 41 MEETING OF J 11 i_ 0 9 1992 ,jteaolutiop 2rj0.� WHEREAS, on September 26, 1991, Congress approved $1.5 billion for the new HOME Program which will be distributed by formula to participating states and units of local government to enable such entities to design affordable housing strategies tailored to the needs of their local markets; and 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 non-profit organizations; and WHEREAS, the HOME Program allows the partnerships to respond to diverse local housing needs though an array of housing activities including moderate and substantial rehabilitation, new construction, tenant -based rental assistance and other related activities; and WHEREAS, in February, 1992, the City of Miami was designated as a participating jurisdiction and is eligible to receive HOME Program funds; and WHEREAS, in May, 1992, the City of Miami was awarded a HOME Program grant in the amount of $5,314,000 from the U. S. Department of Housing and Urban Development (HUD) for implementation of the Home Program; and WHEREAS, in May, 1992, the City of Miami's HOME Program description guidelines were conditionally approved by HUD and funding in the amount of $5,314,000 is available, subject to the execution of the Funding Approval and Home Investment Partnership Agreement; -2- 9 2 - 461 NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2. The City Manager, as Chief Administrative Officer for the City of Miami, is hereby authorized to accept a Home Investment Partnership Program Grant (HOME Program) in the amount of $5,314,000 from the U.S. Department of Housing and Urban Development (HUD), for the purpose of stimulating the development and conservation of housing affordable to low and very low income families and individuals in the City of Miami. Section 3. The HOME Program guidelines, attached hereto and incorporated by reference, are hereby approved, and the City Manager is hereby authorized to implement said HOME Program in accordance with the cited guidelines. Section 4. The HOME Program grant funds are Hereby allocated as follows: $2,000,000 for new construction; $816,900 for moderate multi -family housing rehabilitation; $1,700,000 for first time homebuyers financing assistance; and $797,100 to provide financial assistance to Community Housing Development Organizations. Section 5. The City Manager is further hereby authorizedl/ to enter into and execute all the necessary 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- 92-- 461 4) 4 agreements and documents, in a form acceptable to the City Attorney, between the City of Miami and HUD to implement said HOME Program. Section 6. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 9th day of mil , 992. CITY CLERK COMMUNITY OPK9NT REVIEW: FRANK AST E A, DIRECTOR DEPT. OF COMMUNITY DEVELOPMENT BUDGETARY REIWW: MANOHAR S. SU ASSISTANT CITY AGER FINAN REVIEW: `Z 26&z. GARCIA, DIRECTOR DEPARTMENT OF FINANCE XAVIER N. SUAREZ, MAYOR -4- 92_ 461 I] PREPARED AND APPROVED BY: JULIE Q. BRU ASSISTANT CITY ATTORNEY APPROVED AS TO FORM AND CORRECTNESS: CITY JOB:kd:cdX:M3055 U. S . DEPARTMENT HOUSING AND URBAN DEVELOPMENT * JACIKSONVILLE OFFICE, REGION IV 325 West Adams street Jacksonville, Florida 32202-4303 4.6CMA MAY 1. ,j1992 Honorable Xavier Suarez 1 Mayor of Miami 3500 Pan American Drive Miami, FL 33133 Dear Mayor Suarez: SUBJECT: HOME Investment Partnerships Program Grant No. M-92-MC-12-0211 Conditional Program Description Approval and Funds Obligation Miami, Florida We are pleased to inform you that the Program Description submitted by the City of Miami for the HOME Investment Partnerships Program has been reviewed and is conditionally approved. Your Program Description includes a first-time homebuyer activity. Guidance on resale requirements for first-time homebuyer activities is provided in the enclosed memorandum from David Cohen, Director of HUD's Affordable Housing Programs dated April 13, 1992. The Information provided in your Program Description on this activity does not appear to be in conformance with these guidelines. No HOME Program funds can be committed to this activity until your revised guidelines are approved by HUD. This office will provide you with further guidance on model programs for first-time homebuyers in the near future. As a result of this approval, $5, 314, 000 in HOME Program grant funds has been obligated to Miami. You will note that the Funding Approval Form (HUD-40093) contains two special conditions as an attachment. One special condition pertains to first-time homebuyer activities while the other covers the environmental review. This obligation is, of course, subject to your execution of the Funding Approval Form and compliance with the applicable requirements for the use of grant funds. Three copies of the Funding Approval Form copy should be signed as an original by you designee. You should keep one copy and return office. are enclosed. Each or your authorized two copies to this 92- 461 2 A HUD Circular Letter on establishing the HOME funds account in the Cash and Management Information System and the Environmental Review Process will be issued shortly and will be provided to all HOME Program lead persons. Finally, we remind you that HOME funds must be committed within 18, 24, or 36 months depending on the HOME Program activity (24 CFR 92.51 and,24 CFR 92.204). These time frames commence on the date of this letter. We look forward to working with you on this program to provide and improve a housing stock affordable to lower -income families. Very sincerely yours, rg haplin er, 4.6S Enclosures cc: Frank Castaneda, Director Department of Community Development 92W 461 = "r ding Approval ' . U.S. Department of Housing and Urban Nvolopment1911, ind HOME Investment Office of Community Manning Partnership Agreement and Developmem Tate 11 of the National Altordabte Housing W OMB Approval No: 2501-0013 (Exp. G,/30/93) nubtlo roporting burden for this collection of information is est}rruded to average 1.0 flour per response, including the tirrm for reviewing instructions, searching ixistng data sources. gathering and maintaining the data needed, and completing andmviewing the collection of inl mmf on. Send oomments regarding this burden 3stimateorany other aspectofthis collection ofinformation, frickaft wiggestions forreducing this burden, to the Reports thriagernentOfficer. Offloe of Information Policies and Systems. U.S. Department of Housing and Urban Development. Washington. D.C. 2W 10-3600 and tothe Off toe of Management and Budget, Paperwork Reduction Prolect (2501.0013), Washington, D.C. 20503. Dow send tttis completed form to either of these addressees. 1. Pudelpant Name and Address City of Miami, Florida 3500 Pan American Drive Miami., FL 33133 4. a. HW GeograpNe locator Code No: 121968 5• APrroPda&n Number . FundkV 1lppmval b.CountyCode: 025 0205 -- --- 1 8. Previous Obligation a. Rerrial Housing Production Set -Aside b. Regular Funds c. Community Housing DVglopment Organization Reallocation 9. Current Transactl4p. a. Rental Housing Production Set -Aside b. Regular Funds ( c. Conununity Housing Development Organization Reallocation 10. Revised Obligation a. Rental Housing Production Set -Aside. b. Regular Funds c. Community Housing Development Organization Reallocation PanIdpant Number M-92—MC-12-0211 Tax Wentlk4&n Number 59-6000375 fiber 7. FY: — 1992 -0- -0- -0- -0- ;5,314,000 1,390,000 3,924,000 -0- 65,314,000 1,390,000 3,924,000 -0- 11. Special Conditions (check applicable box) a. Not applicable l.J b. Attached This agreement between the Department of Housing and Urban Development (HUD) and the City of Miami, Fl nri da (the Participating JurisecdoNEntity) is made pursuant to the authority of the Home investment Partnerships Act (42 U.S.C.12701 at seq.). The Participating Jurisdiction's /Entity's approved Program Description/Appiication and the HUD regulations at 24 CFR Part 92(as now in ollect and as may be amended from time to time) and this Home Investment Partnership Agreement, form HUD-40093, indudurg 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 paymentot funds under this agreement is subject to the Participating Jurisdiction's/Entity's compliance with HUD's electronic funds transferand 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 Judsdiction/Entity without the Participating Jurisdiction's/Entity's execution of the amendment or other consent. The Participating Jurisdiction/Entity agrees that funds invested in affordable housing under 24 CFR Part 92 are repayable when the housing no longer qualities as affordable housing. Repayment shall be made as specified in 24 CFR Part 92. The Participating Jurisdiction agrees to assume all of the responsibility for environmental review, decision making, and actions, as specified and required in regulation at 24 CFR 92.352 and 24 CFR Part 58. and Jim Chaplin, Manager, 4.6S 461 INSTRUCTIONS for Completing the Funding Apt.,, a] and HOME Invest- ment Partnership Agreement, form HUD40093 This form should be filled out In five (5) copies. One (1) copy should be held for informational purposes, one (1) copy should be sent to the Regtorvsl Ac- counting Division (RAD), and three (3) copies should be sent tothe jurisdiction/ entity for signature. The jurisdctionlentity should be requested to sign all copies and keep one (1) copy for its records and to sign and return two (2) copies to the HUD Field Office. One (1) of the signed copies should be sent to the RAD and one (1) should be kept for the CPD office file. 1. ParilcipsntNome and Address. Enter the jurisdiction's/entity'sname and canpiete address as shown in item 4 of Standard Form 424. 2. Participant Number. Enter the participant rurmber assigned by the HUD Field Office for the participating jurisdiction/errtity. 3. Tax ID Number. Enter the Tax (Employer) identiication Number shown in item 6 of Standard Form 424. 4. a. HUD Geographic Locator Code No. Enter the appropriate HUD Geographic Locator Code available from the Geographic Codes System Directory (See computer printout D-71AAC). b. Bounty Code. Enter the appropriate County Code available from the Geographic Codes System Directory (See computer printout D-71AAC). S. ApproptiaUon Number. Enter the Appro@Wion Number from the HUD- 185.1 subassigning funds for the Fiscal Year source of funds for this transaction. r e. G. Funding Approval Number. Enter the appropriate funding approval number starting with'1' for the first funding action and numbering consecu- tively thereafter. Funding approvals may be for the purpose of processing original obligations, reallocating funds or for the purpose of deobligating funds. 7. Fiscal Year. Indicate the fiscal year source o' funds for this transaction. Only funds from this fiscal year are to be included in this transaction. (A separate form will be completed for each FY's funds.) 8. Previous Obligation. Enter the total amount of funds that have been previously obligated for this participant for this FY source of funds. If this is the funding approval form for the participant's initial allocation for the fiscal year, the amount previously obligated will be'0' If this is a funding approval form for the purpose of reallocating ordoobligating funds, CPD or the HOME Gash and Management Information System win enter the amount from lino 10 of the previous funding approval form. a. Rental Housing Production Set -Aside. Enter the amount of funds, if any, that are being set -aside for rental production. It this is the funding approval form for the participant's initial allocation for the fiscal year, the amount Will be '0.' 11 this is a funding approval fort for the purpose of reallocating or deobligating funds. CPD or the HOME Cash and Mahage- ment Information System will enter the amount from line 10.a of the previous funding approval form. s b. Regular Funde. Emor the total amountof funds previously obfigatedto the participant except for those funds that have been set aside for rental production (Item 8 lest Item 8.a) and funds previously reallocated for Community Housing Development Organizations (Item 8 less item 8.4 and Item 8.c). If this is the funding approval form for the partidpant's InitiW allocation for the fiscal year, the amount will be '0 ' If this is a funding approval form for the purpose of reallocating or deobligating furxh, CPD or the HOME Cash and Management Information System win enter the amount from line 10.b of the previous funding approval form. c. Community Housing Development OrganbAtkme.Enterdteamount of funds being reallocated for Community Housing Development Organiza- tions. If this is the funding approval form fortthepwIldpanre initial allocation for the fiscal year, the amount will be'0 0 It this Is a funcliing approval form for the purpose of reallocating or deobligating funds set aside for Commu- nity Housing Development Organizations, CPD or the HOME Cash and Management Information System will enter the amount from Ine 10.cof the previous funding approval form. 9. Current Transaction. Enter the total amount of funds for this action. Indicate a deobligation either by placing parentheses wound the amount deobligated or a minus sign before the amount deobligated. a. Rental Housing Production Set -Aside. Of the amount indicated In item 9, indicate the amount of funds, it any, that are being set aside for rental production. II none, enter'0' b. RegularFunds. Ottheamount indicatedinitem 9,Indicate the a r=4 if any, that is for regular funds (item 9 less 9.a and 9.c). If none, enter'n' c. Community Housing Development Organization Sot-Aside.Offhe amount Indicated In item 9, indicate the amount. If any, that is for Community Housing Development Organizations (Item 9 less 9.a and 91). 10.Revised Obligation. Enter the total amount of funds available to tie jurisdiction/ently after this transaction (item 8 plus item 9). a. Rental Housing Production Set -Aside. Enter the total amount of funds set -aside for rental production afterthistransaction (item 8 aplusitem 9.a). b. Regular Funds. Enter the total amount ofregular bindsavailabletothe jurisdiction/entity after this transoolon (item 8.b plus item 9.b). c. Community Housing Development Organization Set -Aside. Enter the total amount of funds available for Community Housing Development Organizations after this transaction (item 8.c plus item 9.c). ��- 461 orm -40093 11. s s HUD-40093 - Funding Approval Special Conditions a. Notwithstanding any other provisions of this Agreement, no funds provided under this Agreement may be obligated or expended for First -Time Homebuyer activities until HUD's review and specific approval of such activities. First -Time Homebuyer activities shall be in accordance with the memorandum dated April 13, 1992, from David Cohen, Director of HUD's Affordable Housing Programs. b. 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. 92- 461 E S P i 110Mi: PHOGHAM 1)CsSCRIP'rION crrY OF MI.AMI, FLORIDA March 26, 1.992 Grant Year 1992 Apl` LICA1•ION ron OMB Approvah Pin 0148-0043 AVE SUn►AIT1rr) i— Appt-canl Icfewp =' FEDERAL ASSISTANCE March- 26 r_ 1992- t. TYPE OF StiO►Aisrtott. s. DATE IIECOVED Dv STATF State Appliicalron tdenhltrt =i Apnrteennn Prnar,prrceant+ [� Conslrvt,l+un [_[ Cnnsitucl'on — _¢; �. DATE nECEIVED BY TtDEnnl AGENCY federnl Idonhiicr F -1{ [] Non-Con!SInlclirm [_� Pion -CenSit lit: tlnn j{ S. APPLICANT NtrnnMAtiotl + Legal Name. Orpanuahonal Und - City of: 1.liami, Florida _ _Uct)L of Deve nm _tit- lint) -sing CnnGPrt �j AAdreSs (ptvo ctll. county. Slafn. And rtn Cnr/a) Han anti (etepl+one number of the parson to be contacted on mallets rnvolonp Z) 3500 Pail Ame J: i c all Drive this nnnt cnaon (give area Ctxto) =, Herber-L Dailey Miami, 1;lorida 33133 (Dade CotiiiLy) nGsisLanL City Manager -� (305) 579-3366 _ — i. EMPIOYt:n uurNlslcATloN NUMBER li[ar1. ►. tvrF or APPLICANT: (enter eppronrrero letter in bo•T C r A Slate If IndepState l i I IL_11�11� _—II onlialedIns tuts U County I Slate Conhollnd Institution of T1iphrt LeemtnQ _ C M+lnicipal J Private University 1. TYPE OF APPi ICAt10N: D Township K Indian Ttibe ,i New [] ConUmtAlron Revision E Interstate L Individual F Inimmunictpal M Protil otganitat+on - 11 Revision, enlet nnplopnalo lellet(s) in bow(es) ❑ ❑ G Stwiel Dtstricl N Other (Speedy) — 1 A Increase Aeard 0 Decrease A«aid C Incrense Uwation D Doctenso Duration Othet (SnaC16•1 1. I4AME Or FEDERAL AGENCY: U.S. Dept-. of Ifousing & Urban Develops - to. CATALTM Or fEDERAL DOMESTIC 1t. DESCnIPTIVE TITLE OF APPLICANT'S PROJECT: ASSISTANCE NUMBER: • TITLE: City of Miami'-s Program Description HONE Program for 11014B Program funds 13. AREAS ArrECIED BY PROJECT (CtnoS. Courlttas, !taro:. etc t C.i.ly of Miami, Florida 11. PROPOSED PROJECT. 14. CONGRESSIONAL DISIIICIS OF Stall Date Cnding Onto a Appl-c:ant : b Prolecl 4/l/92 3/31/93 _ 15. ESTIMATED FUIIDINO: 1t. IS APPLICATION SUBJECT TO REVIEW BY STATE EXECUTIVE ORDER 13111 PROCESS? a Foderal 11 .00 a YES 1111; PI1r;APPt.ICATIONrAPPL¢CATIOt4 WAS MADE AVAILABLE TO 111C 51314,000 SIATE EXECUTIVE OnDEn 12312 PROCESS•FOn nEVIEW ON b Applicant s 00 t)ATC C State 11 .00 ' b ►() ❑ PnoGnnM IS NOT COvEREO UY EO I2372 ❑ Oil PnfX3nAlA IIAS NOT BEEN SELECTED BY STATE FOn REVIEW d Local ; .00 e Other ! .00 I Progtam Incnn+o f .00 11. IS THE APPLICANT OELINOUEHI ON ANY FEDERAL DEBT? ❑ Yes If "Yes.' Mach an explanation ❑ No g TOTAL' i .00 to. to THE DEST OF MY mNOWLEOOE ANO BELIEF. Alt DATA IN 1111S APPLICATION PnEAPPLICAItON ARE TRUE ANo CORRECT. THE DOCUMENT HAS BEEN DULY AUTNORIZED BY IIIE GOVERNING BODY OF TINE APPLICA141 AMID TIIE APPLICANT WILL COMPLY Willi THE AT?ACIIED ASSUnANCES IF THE ASSISTANCE IS AWARDED a Typed Name of AuUumrted Ileptesentaavo b Title c Telephone number Cesar 11. 0dia A, City Manager 305) 250-5400 d Srgnalurc oil Au1l+urrretl 1leptesenlabv rt� a Dale SWnt d 92- 4U� March 16 1992 revtouf dtlKUK it�N usable IanlBtd orm J s + V n - t t +y�r Prl'ffnlhd 1`►' ..r�'. 1. r.,,.A' ..• •Jt _ Atithofiri-d for Loral f1cluoductioil li PROPOSED PROPOSED USE OF HOME PUNDS 92- PROPOSED USE OF HOME FUNDS Brief Description of Major Activities 1. NEW CONSTRUCTION - MULTIFAMILY The City of Miami is anticipating using $2,000,000 in - HOME funds for new construction of multifamily units located throughout the City of Miami. i PROGRAM PURPOSE AND OBJECTIVES The HOME Multifamily New Construction Program is designed to provide financial assistance to developers in connection with the production 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 Develoment. The City's Department of Development and Housing Conservation, or its successor, is responsible for the implementation of the Program. The Department will implement the Program on a city-wide basis to accomplish the following objectives: 1) Increase the supply of new rental units affordable to very low and low income residents; 2) Provide standard affordable housing to low and very low income residents; 3) To spur reinvestment of private capital in older residential neighborhoods; and 4) To complement other public neighborhood revitalization efforts. MAJOR PROGRAM HIGHLIGHTS . Project Eligibility - 5 or more units or SRO (Single Room Occupancy) units. Program Availability - City wide . Equity - A minimum equity of 10% is required. HOME Subsidy Per Unit - A minimum of $1,000 per HOME assisted unit. -l- 92-- 461 - A maximum of. $64,552 per HOME assisted unit, will be allowed within the HOME Program maximum subsidy limits established by number of bedrooms. Maximum Purchase Price/Appraised Value - The purchase price or appraised value of a HOME assisted property to be acquired by a low or lower income household shall not exceed the 203(b) mortgage limit for the area for the type of housing being purchased (single family, condominium, manufactured home, etc.). Period of Affordability - a term of 20 years to coincide with the term of the HOME mortgage. If FHA mortgage insurance is used for a HOME project, the term of affordability must be the length of the FHA insured mortgage in excess of the HOME required 20 year term. HOME Rents - At least 20% of the HOME assisted units in each project shall have a maximum rent of 50% of median rent limit. - No less than 80% of the HOME assisted units may be rented at the lesser of the Fair Market Rents established for Section 8 Program or the 65% of median rent limit established by HUD for the HOME Program. Occupancy Standards - 90% of all HOME funds will be used to assist households having incomes no greater than 60% of the area median income, adjusted for family size. The remaining 10% of HOME funds may be used to assist households having no more than 80% of the area median income, adjusted for family size. Code Compliance - All projects must meet the South Florida Building Code, the Dade County Building Code, the City of Miami Building Code, the Section 8 Housing Quality Standards and the Model Energy Building Code or HUD -accepted equivalent. -2- 92-- 461 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. . Program Fees - Application Fee - Loan Commitment Fee - Annual Inspection - A non-refundable application fee in the amount of $20 per unit with a minimum fee of $300 (whichever is greater). - A non-refundable loan commitment fee of 1% of the HOME assistance will be required upon acceptance by the developer of a final preliminary funding award. - 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 fo the duration of the affordability period. A fee of $50.00 per unit will be assessed for each annual inspection. (These program fees are currently being utilized in City administered rehabilitation programs and as such, are customary for the Miami area). Rent Regulatory Agreement - At the time of the loan/grant closing, the owner will be required to execute this Agreement stipulating the nature of the rent controls which will be in effect for the affordability period to be revised annually as per U.S. HUD. Deed Restrictions - The mortgage deed executed at the time of HOME loan/grant closing shall provide for the following Program requirements and any subsequent revisions thereto: 1) Applicability of maximum rents as established by HUD pursuant to HOME Program Regulations and those of the City of Miami. -3- s' 92- 461 R r 2. SUBSTANTIAL REHABILITATION The City of Miami is anticipating using $-0- in HOME funds for the substantial rehabilitation of multifamily units located throughout the City of Miami. PROGRAM PURPOSE AND OBJECTIVES 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 -5- 92- 461 0 Equity - a minimum project. equity of 10% required for any HOMB 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 1992 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 the Home -assisted units in each project shall have as the maximum rent the 65% Rent Limit figure. LOW RENT - 20% of the HOME -assisted units in each project shall have as the maximum rent the 50% Rent Limit figure. Occupancy Standards - 90% of HOME funds shall assist tenants with annual incomes at or below 60% of median income. The remaining 10% of Program funds 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. 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. Program Fees - APPLICATION FEE - a non-refundable application fee in the amount of $20 per unit with a minimum fee of $300 (whichever is greater). FINAL APPLICATION FEE - a non-refundable final application fee in the amount of one-half (1/2) point calculated on the preliminary City loan amount which is based on the Department's preliminary rehabilitation cost estimate. This fee must be received by the City prior to the initiation of the detailed work write-up. LOAN COMMITMENT FEE - owners shall have seven (7) days to accept the City's loan commitment and pay a non-refundable fee in the amount of one- half (1/2) point calculated on the final loan amount. This amount may be adjusted to insure that the combined total of the two fees - the final application and the loan commitment fees - equals one (1) point based on the actual loan amount. ANNUAL INSPECTION FEE - 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. A fee of $50.00 per unit will be assessed for each annual inspection. (These program fees are currently being utilized in City administered rehabilitation programs and as such, are customary for the Miami area). 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. -7- 92-- 461 Deed Restrictions - the mortgage document executed at time of loan closing shall provide for the following Program requirements to be updated annually: 1. Applicability established by and the City of of maximum rents as the HOME Program regulations Mi ami . 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. Remedies for Breach of Provisions - Regardless of the nature of the owners' noncompliance, the following sanctions will be invoked: FINES - a flat monthly fine for the entire project in the amount of $50 per unit 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 period, projects which have brought into compliance will foreclosure by the City. -8- day "correction" not yet been be subject to 92-- 461 0 (P 3. OTHER REHABILITATION The City of Miami is anticipating using a total of $816,900 in HOME funds for the moderate rehabilitation of units located throughout the City of Miami. PROGRAM PURPOSE, OBJECTIVES AND MAJOR HIGHLIGHTS 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. -9- 92- 461 F 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. A! -10- 92- 461 W ON Li 4. FIRST-TIME HOMEBUYER'S FINANCING PROGRAM The City of Miami is anticipating using $1,700,000 in HOME funds for the purpose of providing financing to first-time homebuyers through (a) interest bearing acquisition loans, (b) non -interest bearing acquisition loans, (c) first mortgage interest rate buydown subsidy or (d) grants to consummate the acquisition of newly constructed or existing home for first-time homebuyers. PROGRAM PURPOSE AND OBJECTIVES 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 funding to consummate the acquisition. The HOME assistance may be used in the form of an interest bearing acquisition loan(s), non -interest bearing acquisition loan(s), first mortgage interest rate buydown subsidy or a grant to finance in full or part the acquisition of a newly constructed or existing home by a first-time homebuyer. The program is funded with 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 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 or existing home; 2) To spur reinvestment of private capital in older residential neighborhoods; and 3) To complement other public neighborhood revitalization efforts. MAJOR PROGRAM HIGHLIGHTS Prospective Homebuyer Eligibility - must be a first-time homebuyer or household that has not owned a home during the three (3) year period immediately prior to purchase with HOME funds. The purchaser's gross annual income must not exceed 80% of median income for the area and must occupy the property as a principal residence. -11- 92- 461, . Program Availability - Citywide. Donn Payment Equity - A minimum downpayment of 2.5% will be required. HOME Subsidy Per Unit - A minimum of $1,000 per HOME unit. - A maximum of 67% of the dollar limits for a HUD 221(a)(3) non-profit sponsor, elevator type project, indexed for City high cost areas, and adjusted for number of bedrooms. Currently these amounts are: BEDROOMS HOME AMOUNT 0 $32,612 1 $37,384 2 $45, 458 3 $58,807 4 or more $64,552 Maximum Purchase Price/Appraised Value - The purchase price or appraised value of a HOME assisted property to be acquired by a first-time homebuyer shall not exceed the 203(b) mortgage limit for the area for the type of housing being purchased (single family, condominium, manufactured home, etc.). Affordability/Deed Restriction - Any newly constructed or existing home assisted with HOME money may be resold during its period of affordability by its owner only to a family qualifying as a low income household; and The total monthly mortgage, payment for the subsequent purchaser may not exceed 30% of the gross income of an equivalent sized household at 75% of the median income; and - .Any residence purchased with HOME assistance must be the principal residence of the purchaser. -12- 92- 461 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 mortgage interest rate buydown subsidy or a grant to finance in full or part the acquisition of a newly constructed or existing home. 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. Type of Housing - Single family, duplex, triplex, four Alex, townhouse, twin home, condominium or cooperative share. Return on Investment - The Program will utilize an arrangement in which the public subsidy is forgiven over the required period of affordability, i.e. no less than 15 years for existing housing and no less than 20 years for newly constructed housing. For example, if an assisted homeowner wishes to sell his existing home in the 12th year of occupancy, then 12/15ths or 4/5ths of the subsidy is forgiven and 1/5th is due upon sale or transfer of the property. If the sales price is still not affordable to a new low income family, the City may choose to reduce what is due to it under the sale, reduce the return to the original homebuyer or subsidize the subsequent sale until the affordability requirement is met. Waivers - The Director of the Department of Development and Housing Conservation or its successors, shall have the authority to waive any Program requirements to further the purpose and objectives of the City's Comprehensive Housing Affordability Strategy. -13- 92- 461 10 U PROPOSED USE OF HOME FUNDS Activity Thtal HOME $5,314,000 rental Owner $ New Construction 1 $2,000,000 (City) Substantial 0 Rehabilitation Other Rehabilitation $ 816,900 (City) Acquisition $ 1,700,000 (City) 1st Time Horebuyer 71anant Assistance 1 0 $600,000 (CHDO's) = $2,600,000 1 $2,0001-000 1 $600,000 E Ef $ 97,100 (CHDO's) = $ 914,000 $ 914,000 $100,000 (CHDO's) = $1,800,000 $ 100,000 c. .HDOTs 0 0 0 $ 1,700,000 0 $3,014,000 1 $2,300,000 COMMUNITY 110USING DEVE1,OPMENT ORGANIZATIONS (CHDO I S) E-1 PROPOSED USE OF HOME FUNDS 5. HOME ASSISTED COMMUNITY HOUSING DEVELOPMENT ORGANIZATION DEVELOPMENT PROGRAM The City of Miami is anticipating using $797,100 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. PROGRAM PURPOSE AND OBJECTIVES 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 or acquisition/rehabilitation of the City's existing housing stock, to be sponsored or owned by Community Housing Development Organizations (CHDOs). Financial assistance will be provided in the form of project -specific technical assistance and/or site control loans for early project planning and development expenses; including but not limited to: 'feasibility studies, consulting fees, cost of preliminary financial applications, legal,' architectural and engineering fees, engagement of -a development team, site control, and title clearance. In addition, the Program will also make available low interest project -specific seed money loans to CHDOs to cover preconstruction costs, including but not limited -to firm financing commitments, zoning approvals, engineering studies and legal fees. Seed money loans shall be repayable to the participating jurisdiction (PJ). Through the Program, CHDO sponsored housing projects will be advanced flexible predevelopment loans and said loans shall be forgivable if a project fails to come to fruition as a result of circumstances reasonably beyond the control of the CHDO. The Program is funded through Home Program funds provided to the City of Miami by the U.S. Department of Housing and Urban Development. The City's Department of Development and Housing Conservation is responsible for the implementation of the Program. The Department will implement the Program on a city-wide basis to accomplish the following objectives: 1. To spur reinvestment of private capital in older residential neighborhoods through the production of new affordable housing units and/or rehabilitation projects sponsored, or owned by Community Housing Development Organizations (CHDOs). -15- 92- 46i 2. To provide standard housing affordable to low and very low income residents. 3. To complement other public neighborhood revitalization efforts. MAJOR PROGRAM HIGHLIGHTS CHDO Program Eligibility - the CiIDO 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. 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 CiiDO. Appropriate organizational structure as required by the home Program. Program Availability - Citywide, provided the CIiDO 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 C11DOs as defined by the Home Program, in furtherance of the City's community based low income housing development and neighborhood stabilization efforts. • R Period of Affordability -.A term of 20 years, for new construction projects; a term of 5 up to 15 years for rehabilitation projects depending upon the per unit dollar amount expended. 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 }TOME Program regulations, the lesser of the FMR (Fair Market Rent) or the 65% and 50% Rent Limit figures' as provided by U.S. 11UD. For the 1992 Program Year the 65% and 50% Rent Limit figures shall be utilized as they have been determined to be less than the FMR's. -16- 92461 rdr HIGH RENT - 80% of the home -assisted units in eaci project shall have as the maximum rent the 65% Rent Limit figure. LOW RENT - 20% of the HOME -assisted units in each project shall have as the maximum rent the 50% Rent Limit figure. Occupancy Standards - 90% of. HOME funds shall assist tenants with annual incomes at or below 60% of median income. The remaining 10% of Program funds may assist tenants whose incomes range from more than 60% of the median income up to a maximum of 80% of the median income. 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 dousing Quality Standards, and the Cost Effective Energy Standards. Project Financial Assistance - financial assistance will be provided by the City for the production or rehabilitation of housing projects to be sponsored by CHDOs through the provision of project specific predev,elopment 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 and rehabilitated structures shall e 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 occupancy or completion of the rehabilitation wor4 and will occur annually thereafter for the duration of the affordability period. -17- 92- 461 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: 1. Applicability of maximum rents as established by the IIOME 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 program requirements to further the purpose and objectives of the City's Comprehensive Housing Affordability Strategy. C. -18- 92- 461 n7 CHDO SET -ASIDE $797,100 Activity Proposed $ Allocation. New Construction 1 $600,000 Substantial Rehabilitation 0 Other Rehabilitation $ 97,100 Acquisition $100,000 Tenant Assistance 0 0 �er*i F AFFIRMATIVE MARKETING MINORITY AND/OR WOMI3N BUSINESS ENTERPRISES 92-- 461 all CITY OF MIAM I AFFIRMATIVE MARKITTING COMPONENT 11014E Program Descriptions STATEMENT OF POLICY In accordance with the RegulaLi.ons of the hOME Program (Sec. 92.35.1) 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 11OME- 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. Tile 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. Tile 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. he reached through the following procedures: 1. The City of Miami, in implementing the 11OME 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,' tree 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. -20- 92- 461 2. Owners participating in the I*)rogram 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 i.nform 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 and/or referrals made by local community based organizations and the placement of a "For Rent-" sign displaying the Equal dousing 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. (:gee list attached, page 24 ). 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. 92- 461 -21- 4. The City of Miami will. insure LhaL- adequate records are maintained to meet• Hie 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 appIi.cants in the 90 days following rehabilitation; b) activities they undertake to inform the general renter public, specifically: copies of advertisements »laced in the three (3) local newspapers: Miami Herald, Miami Times and the Diario Las Americas. dates and names of the community based organizations contacted by the owner as per the City -provided Community Based Organizations List or any other neighborhood associations contacted. dates on which the owner cont•act-ed the Dade County Department of dousing and Urban Development (Miami's Public (lousing 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. -22- I 92 461 If an owner continues Lo 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 11UU on an annual basis. _23_ ' I I ' 92-- 461 CITY OF MIAMI, FLORIDA COMMUNITY 11ASED ORGANIZATIONS Mr. Henri -Robert Lamot-he 751-4692 Executive Director 11a i t- i an Task Force Incorporated 5925-27 N.E. 2nd Ave., Mezzanine Miami, rlorida 33137 Pis. Mai.ra Diaz Executive Director Downtown Miami Business Association,: Inc. One Biscayne Tower, Suite 1810 Miami, Florida 33131 Mr. Jay Rodriguez Executive Director Small Bt!siness Opportunity Center, Inc. 1417 West Flagler Street Miami, Florida 33135 Mr. William Rios Executive Director i Wynwood Community Economic Development Corporation Inc. 225 N.E. 34th Street, Suite 209 Miami, Florida 13137 Mr. Samuel Mason Executive Director Martin Luther King Economic Development Corporation, Inc. j 6116 N.W. 7th Avenue ( Miami, Florida 33127 579-6336 643-1555 576-0440 757-7652 Ms. Rosemary Canals 751-1222 r Executive Director Greater Biscayne Boulevard Chamber of Commerce,, Inc. { 8101 Biscayne Boulevard, Suite 509 Miami, Florida 33138 - 24- 92- 461 Mr. Octavio Descalzo Executive Director Little Havana Development Authority, Inc. 970 S.W. 1st Street, Suite 407 Miami, Florida 33130 Mr.. Carlos Dr i to Executive Director Allapattah Business Development Authority, Inc. 2515 N.W. 20th Street, Suite 2A Miami, Florida 33142 Mr. David Alexander Executive Director Coconut Grove Local Development: Corporation, Inc. 3 582 Grand Avenue Miami, Florida 33133 Mailing Address P.O. Box 75 Miami, Florida 33133 Mr. David Days Executive Director St. John Community Development Corporation, Inc. 1324 N.W. 3rd Avenue Miami, Florida 33133 Mailing Address P.O. Box 015344 Miami, Florida 33101-5344 324-81.27 635-3561 446-3095 372--0682 Ms. Jackie Dell t 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, 92- 461 --25- f 4 Doh Pollack Executive Director 374-5503 Gr%titer Miami Neighborhood 1 S.W. 15th Road r Miami, Florida 33131 f T. Willard Fair 696-4450 f President Urban League of Greater Miami 0500 N.W. 25th Avenue Miami, Florida 331.47 Carlos Rodriguez-Quesada 649-7592 President Lisette Rodriguez, Vice Sec. Florida Housing Cooperative, Inc. 900 S.W. 22nd Avenue Miami, Florida 33135 Manuel Rivera 856-2547 Executive Director East Little Havana CDC _ 1699 Coral Way, Suite 510 -! Miami, Florida 33145 - Jose Fabregas 642-1381 - Executive Director CODLC, Inc. 300 S.W. 12th Avenue, Suite A = Miami, Florida 33130 Y 41 --26- f 92-- 461 f rip UTILIZATION OF MINORITY BUSINESS ENTERPRISES (MBE) AND WOMEN BUSINESS ENTERPRISES (WI38) Statement- of Policy and Commitment 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 insLit-utions, etc. as per Section 92.350 (a) (5) of the HOME Investment Partnerships Program regulations. As has been the case with the Community Development Block Grant Program (CDBG) and Rental. Rehabilitation Program (RRP), the City of Miami has had tremendous success with private property owners' use of minority business enterprises (MBE) especially in the fields of construction, real estate and property management. More than 90% of all rehab.il.itaLion contracts for single and, multi -family projects were awarded to minority -owned general contractors, primarily Hispanic and Black. As there has been only very limited participation by Women Business Enterprises (WBE), the City's efforts will be concentrated on improving their level of participation. Efforts will include: providing owners with lists of women -owned business enterprises obtained through local minority and/or women Is business associations and publishing newspaper advertising requesting minority business enterprises' and women business enterprises' participation in project construction bidding. 92-- 461 -2 7- CERTIFICATIONS 4 92- 461 I. Attachment A 11014E Proqram Participating Jurisdictions (P.J.) Standard Pro rain Certification 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. (D) 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 CFR part 92. (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 CFR part 24. and the requirements of 24 CFR part 92.353. (D) The P.J. will use IiOME Funds pursuant to the participating jurisdiction's HUD approved housing strategy (CIiAS) and in compliance with all requirements of 24 CFR part 92. (E) The P.J. certifies compliance with the drug -free workplace requirements at 24 CFR part 24, subpart F. See Attachment C. (F) The P.J. certifies compliance with the anti -lobbying requirements at 24 CFR part 87. See Attachment D. 4 Signature: Date: March 16, 1992 Certifying Official 92- 461 ATTACI114EIlT 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 stratement 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- C (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; y - 461 -- A = .Y (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- (1) 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 PERFORMMCE FOR CERTIFICATION REGARDING DRUG -FREE WORKPLACE REQUIREMENTS Name of Grantee: City of Miami, Florida Date: March 16_, 1.992 Grant Program Name: HOME Program Grant Number: The grantee shall insert in the space provided below the aite(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 Housing Conservation 300 Biscayne Blvd, hay, Suite 401 Miami Florida 33131 (Dade County) Total estimated number. -of employees expected to be engaged in the performance of the grant at the site (s) noted above: Eight (S) ��-- 461 l ATTAC1114ENT 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: (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 agreement, 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 of this certification be included in the award documents for all eubawards 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 civil penalty of not less than $10,000 and not more that $100,000 for each such failure. Signature: Date: March 16, 1992 Certifying Official y W-- 461 hog 12 1 INi ER -OFFICE MEMORANDUM TO The Honorable Mayor and DATE ATolution � r) `3 '+SC��2 FILE Member of the City Commission L 1sua,ECT Authorizing City Manager to Accept $5,314,000 Home Program Cesar H. Odio Grant City Manager REFERENCES :City Commission Agenda Item ENCLOSURES : JU ly 9 , 1992 RECOMMENDATION: It is respectfully recommended that the City Commission adopt the attached resolution authorizing the City Manager to accept a grant in the amount of $5,314,000 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. BACKGROUND: The Departments of Development and Housing Conservation and Community Development recommend ratification of the attached resolution authorizing the City Manager to accept a grant in the amount -of $50314,000 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. On November 28,.1990, President George Bush signed into law the Cranston -Gonzalez National Affordable Housing Act. 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 .ito come out. of Washington in well over ten (10) years. 92- 461 12'I Honorable *Mayor and Members of the City Commission Page 2 Subsequently, in February of 1992, the City of Miami was designated as a participating jurisdiction and will be receiving $5,314,000 in Home Investment Partnerships Program funding in connection with the implementation of the HOME Program in the City of Miami. 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 $ 30,400.00 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 $ 22,800.00 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: 92 - 461 Honorable Mayor and Members of the City Commission Page 3 HOME Multifamily New Construction Program The HOME Multifamily New Construct.J-n Program is designed to provide financial assistance to Community Development Corporations and for -profit developers in connection with the production -of new rental housing projects having 5 or more units through a loan, grant, or combination thereof, for all or part of the project cost. The financing terms will allow the rents necessary to support the operations and debt service of the project to be affordable to very -low and low-income tenants. Approximately $2,000,000 in HOME funds are being. recommended for the construction of new multifamily units in the City. HOME Multifamily Housing Rehabilitation Loan Program 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 $1,816,900 in HOME funds are being recommended for the rehabilitation of substandard multifamily housing located throughout the City. HOME Assisted Community Housing Development Organization Development Program The HOME assisted Community Housing Development Organization (CHDO's) Development Program is designed to provide financial assistance to assist, in part, in financing the production of new housing or acquisition/rehabilitation of the City's existing housing stock, to be sponsored or owned by Community Housing Development Organizations (CHDO's). CHDO's are special types of nonprofit housing developers that have emerged over the past decade to be among the most active developers of low-income housing. The HOME Program attempts to promote and expand the capacity of these nonprofit housing developers by mandating that a minimum of fifteen (15%) percent of each participating jurisdiction's HOME allocation be set -aside for investment in housing owned, sponsored, or developed by CHDO's. 3 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 $797,100 in HOME funds are being recommended for this activity. HOME Assisted First -Time Homebuyer's Financing Program The HOME assisted First -Time Homebuyer's Financing Program is designed to enable low and very low income first-time homebuyers to purchase a newly constructed or existing home utilizing HOME funds to consummate the acquisition. The HOME funds would be provided in the form of a permanent first or second mortgage financing to assist very low and low-income families in purchasing affordable housing units developed under the City's Scattered Site Affordable Homeownership Development Program or by CDCs/Develope rs. 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 $700,000 in HOME funds are being recommended for this activity. 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.' 92- 461