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HomeMy WebLinkAboutR-92-0495i J-92-577 7/16/92 RESOLUTION NO. A RESOLUTION, WITH ATTACHMENTS, AMENDING SECTION 4 OF RESOLUTION NO. 92-461, ADOPTED JULY 9, 1992, WHICH AUTHORIZED ACCEPTANCE OF 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), APPROVING HOME PROGRAM GUIDELINES, ALLOCATING HOME PROGRAM GRANT FUNDS, AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL 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; HEREBY REALLOCATING SAID HOME PROGRAM GRANT FUNDS AS HEREIN DESIGNATED. WHEREAS, pursuant to Resolution No. 92-461, adopted July 9, 1992, the City Commission authorized the City Manager to accept a Home Investment Partnerships Program (HOME Program) grant in the amount of $5,314,000 from the U.S. Department of Housing and Urban Development (HUD); and WHEREAS, Section 4 of said Resolution specified the allocation of said grant funds among various housing programs in the City; and WHEREAS, the City Commission has reconsidered said allocation of funds and now desires to amend same; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Mote: Reference to realloca- tion of $10000,000 from "Home ATTACHMENT (S) First Time Home Buyer Financir, g Program" to Multifamily Housi g CONTAINED Rehabilitation Home Program outlined on page 2.) V` CITY COMMSSXOM MEETILIG OF J 1) L 1 6 1992 R®eolution No. 92- 495 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. Section 4 of Resolution No. 92-461, adopted July 9, 1992, is hereby amended in the following particulars:1/ "Section 4. The HOME Program grant funds are hereby allocated as follows: $2,000,000 for new construction; $1,000,000 for substantial rehabilitation of multi -family units; $816,900 for moderate multi- family housing rehabilitation; $!,?00.0 $700,000 for first time homebuyers financing assistance; and $797,100 to provide financial assistance to Community Housing Development Organizations." Section 3. This Resolution shall become effective immediately upon its adoption. 1/ Words and/or figures stricken through shall be deleted. Underscored words and/or figures shall be added. The remaining provisions are now in effect and remain unchanged. Asterisks indicate omitted and unchanged material. -2- 92--- 495 i PASSED AND ADOPTED this 16th ATTE MA HIRAI CITY CLERK COMMUNITY DPMEN REVIEW: FRAN AST A, DIRECTOR DEPT. OF COMMUNITY DEVELOPMENT BUDGETARY REVIEW: / .1 MANOHAR S. A ASSISTANT CI MANAGER FINANCIAL REVIEW: 9 Z CARL E. GARCIA, DIRECTOR DEPARTMENT OF FINANCE PREPARED AND APPROVED BY: JULIE 0. B ASSISTANT CITY ATTORNEY JOB:kd:csk:M3090 -3- day of itlly . XAVIER, L. 0 APPROVED AS TO FORM AND CORRECTNESS: 92-- 495 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. 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. -1- 92- 495 - 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`k 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- 495 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- 9 2- 495 2) Applicability of maximum income limits for tenant households as established by HUD pursuant to HOME Program Regulations and those of the City of Miami. 3) Applicability of code inspections to insure minimum code compliance as established by HUD pursuant to HOME Program Regulations and those of the City of Miami. Waivers - The Director of the Department of Development and Housing Conservation or its successors, shall have the authority to waive any program requirements to further the purpose and objectives of the City's Comprehensive Housing Affordability Strategy. -A- 92- 495 2. SUBSTANTIAL REHABILITATION The City of Miami is anticipating using $1,000,000 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- 495 Equity - a minimum equity of 10% required for any project. HOME Subsidy per Unit - a minimum of $25,001 up to a maximum of $40,000 per unit will be allowed within the HOME Program maximum subsidy limits established by number of bedrooms. Period of Affordability - ten (10) years per project for every HOME -assisted project. HOME Rents - as per HOME Program regulations, the lesser of the FMR (Fair Market Rent) or the 65% and 50% Rent Limit figures as provided by U.S. HUD. For the 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 project shall have Limit figure. LOW RENT - 20% of project shall have Limit figure. the Home -assisted units in each as the maximum rent the 65% Rent the HOME -assisted units in each as the maximum rent the 50% Rent Occupancy Standards - 90% of HOME funds shall assist tenants with annual incomes at or below 60% of median income. The remaining 10% of Program funds will assist tenants whose incomes range from more than 60% of the median income up to a maximum of 80% of the median income. Code Compliance - projects shall be subject to meeting all local building, housing and zoning codes, including the City's Property Rehabilitation Standards, the federal Section 8 Program Housing Quality Standards and the Cost Effective Energy Standards. Financing Mechanism - a ten (10) year Deferred Payment Loan with a forgiveness clause whereby 10% of the total HOME loan will be forgiven on an annual basis as long as the project is in full compliance with HOME Program requirements. 9 2- 495 0 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-- 495 Deed Restrictions - the mortgage document executed at time of loan closing shall provide for the following Program requirements to be updated annually: 1. Applicability of maximum rents as established by the HOME Program regulations and the City of Miami. 2.. Applicability of maximum income limits for tenant households as established by the HOME Program regulations and the City of Miami. 3. Applicability of code inspections to insure minimum code compliance as established by the HOME Program regulations and the City of Miami. 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. day "correction" not yet been be subject to �� 495 I 11 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- 495 AIL 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. -10- 92 - 495 4. FIRST-TIME HOMEBUYER'S FINANCING PROGRAM The City of Miami is anticipating using $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 Ci ty'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- 495 Program Availability - Citywide. Down 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, 5 52 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-- 495 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 plex, 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, 495 11 PROPOSED USE OF HOME FUNDS Total H34E $5,314,000 ]Rental $ Owner $ Activity I I New Construction $2,000,000 (City) Substantial $1,000.000 (city) Rehabilitation Other Rehabilitation $ 82.6,900 (City) Acquisition S 700,000 (City) 1st Time Hbirebuyer Tenant Assistance 1 0 $600,000 (CHDOIS) = $2,600,000 1 $2,000?000 J $600,000 $1,000,0001 $1,000,000 1 0 $ 97,100 (CHDOIS) = $ 914,000 S 914,000 0 $100,000 (CHDO'S) = $ 800,000 100,000 $ 700,000 CIMIS 0 0 $4,014,000 $1,300,000 COMMUNITY IIOUSING DEVELOPMENT ORGANIZATIONS (CIIDO' S) 9 2- 495 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 dousing 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 nit 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 dome 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 (CEIDDs) . -15- 92- 495 El 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 CHDO must meet all the applicable requirements of the Home Program as listed below: C11D0 must be organized under State and/or local laws. Must have a tax exempt ruling from the IRS under Section 501(c) of the Internal Revenue Code of 1986. No part of its earnings (profits) may benefit any members, founders, contributors, or individuals. Provision of decent housing that is affordable to low and moderate income persons must be among the purposes stated in the charter, articles of incorporation, resolution or by-laws of the CHDO. Appropriate organizational structure as required by the home Program. Program Availability - Citywide, provided the 01D0 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 C11D0s as defined by the Home Program, in furtherance of the City's community based low income housing development and neighborhood stabilization efforts. Period of Affordability - A term of 20 years, for new construction projects; 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 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 have been determined to be less than the FMR's. -16- 92-- 495 HIGH RENT - 80% of the each project shall have 65% Rent Limit figure. [lone -assisted units in as the maximum rent the LOW RENT - 20% of the 110ME-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 Housing 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 C HDOs through the provision of project specific predevelopment loans, site control loans, project specific seed money loans. Specific terms of the loan(s) will be determined on a project by project basis. Solicitation/Acceptance of Project - applications will be acceptable from CHDOs on a project specific basis during the Home Program fiscal year. Submitted applications will be processed in the order in which they are received. ANNUAL INSPECTION - New construction and rehabilitated structures s a 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 work and will occur annually thereafter for the duration of the affordability period. -17 90- 495 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. i 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 jby the HOME Program regulations and the City of Miami. 1 2. Applicability of maximum income limits for tenant households as established by the HOME Program regulations and the City of Miami. i 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 d and Housing Conservation or its successors, shall have the authority to waive any program requirements to further the purpose and objectives of the Citp"s Comprehensive Housing Affordability Strategy. =j i i 495 CHDO SET -ASIDE $797,100 Activity Proposed $ Allocation New Construction $600,000 Substantial Rehabilitation 0 Other Rehabilitation $ 97,100 Acquisition $100,000 4 Tenant Assistance 0 4 AFFIR14ATIVE MARKnTING MINORITY AND/OR WOMEN BUSINESS ENTERPRISES 0 �J CITY Or MIAMI AFFIRMATIVE. MARKETING COr1PONCNT 110ME Program Descriptions STATEMENT OF POLICY In accordance with the Regullt i ons of the HOME Program (S('.c. 92.351) and in furtherance of the City of Miami commitment to non --discrimination and equal opportunity in housing, the City of Miami. establishes procedures to affirmatively market hOME- assisted housing containing 5 or more housing units. These procedures are intended to further the objectives of Title VIII of the Civil Rights Act of 1968 and Executive Order 11063. The City of Miami believes that- individuals of similar economic levels in the same housing market area should have available to them a like range of housing choices regardless of their race, color, religion, sex, and national origin. The City of Miami is committed to the goals of affirmative marketing which will be implemented in our HOME Programs through a specific set of steps that the City and participating owns will follow. These goals will. be reached through the following procedures: 1. The City of Miami, in implementing the HOME Programs will inform the public, participating owners and potential tenants of the City's affirmative marketing policy and fair housing laws in accordance with 24 CCR 92.351(b). Specifically, the City will: A. Include a statement of its affirmative marketing policy and procedures in all media releases and reports about the TIOME 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 D. 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 (lousing Opportunity logo, slogan, or statement in all newspaper and other media announcements regarding the program, including any advertiseme6ts appearing in the three (3) local newspapers: the Miami Herald, Miami Times and Diario Las Americas. -20- 52- 495 2. Owners participating in the program will be required to submit an affirmative marketing plan at time of application. HUD form 935.2 "Affirmative Lair ►lousing Marketing Plan" or an equivalent type of plan will he 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 (lousing Agency) and requesting that staff in(orm 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 "r-or Rent" sign displaying the equal (lousing 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 comp ly with Affirmative Marketing procedures and requirements for 110ME-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 11OME-assisted units, namely Blacks, Haitians and Hispanics. The City will provide owners with a list of .local neighborhood organizations which will be able to assist the property `owner in reaching the aforementioned populations. Owners will be asked to utilize the City - provided list of organizations and/or contact any other neighborhood outreach group with which they may be familiar. (See list attached, page 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 ilispanics 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. _} -21- ya 495 -, 4. The City of Miami will. insure that adequate records are maintained to meet Lhe 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 oC Miami will require that property owners keep records on: a) the racial, ethnic and gender characteristics of tenants and applicants in the 90 days following rehabilitation; b) activities they undertake to inform the general renter public, specifically: copies of advertisements placed in the three (3) 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 Dated Organizations List or any other neighborhood associations contacted. dates on which the owner contacted the Dade County Department of [Musing and Urban Development (Miami's Public [Fusing 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 oC 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 !lousing 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 - i vacancy as possible. Tile 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. i -22- 92-- 495 If an owner continues to fail to meet the affirmative marketing requirements, the City of Miami, after fair warning and an opportunity to correct identified deficiencies, may disqualify an owner from further participation in future HOME Programs administered by the City. Assessment activities will be carried out and a written assessment of the affirmative marketing efforts will be reported to HUD on an annual basis. t 1 CITY Oi, MIAMI, FLORIDA COMMUNITY BASED ORGANIZATIONS Mr. Ilenri-Robert LamaLhe 751.-4692 Executive Director Na it ian Task Force Incorporated 5925-27 N.C. 2nd Ave., Mezzanine Miami, Florida 33137 Ms. Ma i. ra Diaz 579-6336 Executive Director Downtown Miami Business Association,. Inc. One Biscayne Tower, Suite 1818 Miami, Florida 33131 Mr. Jay Rodriguez 643-1555 Executive Director Small Business Opportunity Center, Inc. 1417 West Flagler Street Miami, Florida 33135 Mr. William Rios 576-0440 Executive Director Wynwood Community Economic Development Corporation Inc. 225 N.U. 34th Street, Suite 209 Miami, Florida 3'313 7 Mr. Samuel Mason 2 757-7652 Executive Director Martin Luther King Economic Development Corporation, Inc. 6116 N.W. 7th Avenue Miami, Florida 33127 Ms. Rosemary Canals 751-1222 Executive Director Greater Biscayne Boulevard Chamber of Commerce,, Inc. 0101 Biscayne Boulevard, Suite 509 Miami, Florida 33130 -.24- y2-95 z . Mr. Octavio De calzo 324-•0127 Executive Director Little Havana Development Authority, Inc. 970 S.W. 1st Street, Suite 407 Miami, Florida 33130 Mr. Carlos Br i to Executive Director Allapattah Business Development Authority, Inc. 2515 N.W. 20L-h 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 635-3561 446-3095 372•-0682 Ms. Jackie Bell s 573-0217 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, --25- 4 "W 52- 495 f , f 13 Bob Pollack Lxecutive Director Greater Miami Neighborhood L S.W. 15th Road Miami, Florida 33131 'r. Willard Pair President Urban League of Greater Miami 8500 N.W. 25th Avenue Miami, Florida 33147 Carlos Rodriguez-Quesada President Lisette Rodriguez, Vice Sec. Florida !lousing Cooperative, Tnc. 900 S.W. 22nd Avenue Miami, Florida 33135 Manuel Rivero Executive Director Fast Little Havana, CDC 1699 Coral Way, Suite 510 Miami, Florida 33145 Jose Fabregas Executive Director CODLC, Inc. 300 S.W. 12th Avenue, Suite A Miami, Florida 33130 Is 374-5503 696-4450 649-7592 856-2547 642-1381 -•26- 9 2- 495 -�. J UTILIZATION OF MINORITY BUSINESS ENTERPRISES (MBE) AND WOMEN BUSINESS ENTERPRISES (WBE) Statement- of Policy and Commitment 'Clio City of Miami is committed to and shall make every effort to encourage the use of minority and wo men'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 i.nst•itutions, 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 rehabilitation 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 (WBC), 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':; business associations and publishing newspaper advertising requesting minority business enterprises' and women business enterprises' participation in project construction bidding. 4 -27- 92w 495 CERTIFICATIONS 4 92- 495 Attachment A B014E Program ParticiRatir.q Jurisdictions (P.J.) Standard Program Certification I. '1'he I101.18-Program P.J. certifies that: (A) Before committing funds to any project, the P.J. will evaluate each project and not• invest any more ❑OME Funds in combination with oilier Federal assistance than is necessary to provide affordable housing. (B) A submission of the program description is authorized under. State and Local law (as applicable) and the P.J. possesses the legal authority to carry out the Home Investment- Partnership Program in accordance with the Home regulations, 24 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 (CHAS) 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. Signature: Date: March 16, 1992 certifying Official 92-- 495 ATTACII14EIlT 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 ita requirement- that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph (a); (d) Notifying the employer in the statement required by paragraph (a) that, as a condition of employment under the grant, the employee will- 9 (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; (a) Notifying [IUD within 10 days after receiving notice under subparagraph (d)(2) from an employer or otherwise receiving actual notice of such conviction; 92-- 495 (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 PERFOR14ANCE FOR CERTIFICATION REGARDING DRUG -FREE WORKPLACE REQUIREMENTS Name of Grantee: City of Miami, Florida Date:_yarcb 16, 1992 Grant Program Name: HOME Program Grant Number: The grantee shall insert in the space provided below the sites) 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 [lousing Conservation 300 Biscayne Blvd. Way, 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 (8) , .�'_. 495 t 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 Congres3 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 subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. fAny 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