HomeMy WebLinkAboutR-90-0547J-90-554
7/3/90
RESOLUTION NO. 9 Q- 547
A RESOLUTION, WITH ATTACHMENT(S), RELATING TO
AFFORDABLE HOUSING, AUTHORIZING THE CITY
MANAGER TO ENTER INTO AN AGREEMENT, IN
SUBSTANTIALLY THE FORM ATTACHED, BETWEEN THE
CITY OF MIAMI AND CODEC, INC., IN CONNECTION
WITH THE DEVELOPMENT OF A ONE HUNDRED FIFTY
(150) UNIT AFFORDABLE TOWNHOME PROJECT ON THE
MELROSE NURSERY SITE; AMENDING SECTION 5 OF
RESOLUTION NO. 89-965, THEREBY MODIFYING THE
CITY'S $1,500,000 SECOND MORTGAGE COMMITMENT
TO THE MELROSE NURSERY AFFORDABLE HOUSING
PROJECT TO ALSO ALLOW THE USE OF THE CITY'S
SECOND MORTGAGE ASSISTANCE TO ESTABLISH A
FIRST MORTGAGE INTEREST REDUCTION FINANCING
PROGRAM IN THE AMOUNT OF $1,460,000 WITH
FANNIE MAE APPROVED LOCAL FINANCIAL
INSTITUTIONS) SUBJECT TO AN AFFIRMATIVE
OPINION FROM BOND COUNSEL; ESTABLISHING THREE
PERCENT (3%) AS THE INTEREST RATE TO BE
ASSESSED THE PROJECT SPONSOR FOR USE OF THE
CITY'S ASSISTANCE TO THE PROJECT DURING THE
CONSTRUCTION PHASE; FURTHER, CONDITIONALLY
AUTHORIZING THE CITY MANAGER TO TRANSMIT SAID
$1,460,000 IN CITY ASSISTANCE FROM CAPITAL
IMPROVEMENT PROJECT NO. 321037, "SECOND
MORTGAGE HOME LOAN POOL" EARMARKED FOR THE
DEVELOPMENT OF HOUSING ON THE MELROSE NURSERY
SITE TO BARNETT BANK OF SOUTH FLORIDA, N.A.,
TO SERVE AS ESCROW AGENT FOR DISBURSEMENT TO
CODEC, INC. FOR CONSTRUCTION OF THE PLANNED
HOUSING PROJECT.
WHEREAS, on October 26, 1989, through Resolution No. 89-966,
the City Commission conditionally designated CODEC, Inc., a
not -for -profit corporation as project sponsor of a low -density
homeownership project affordable to families and individuals of
low and moderate income on the publicly -owned Melrose Nursery
Site; and
WHEREAS, the City Commission, through Resolution No. 89-985,
approved and established $780,000 as the recoverable value to the
City for the Melrose Nursery Site in connection with the
affordable townhome project to be undertaken by CODEC, Inc., on
the aforementioned parcel; and
ATTACHMENTS
CONTAINED
car COMSSION
LNG OF
JUL 12 IM
90- 54
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WKSM 3, the City Commission, through Resolution No. E9-909
1t. further reaffirmed the City'a second mortgage commitment to the
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Melrose Rursory Housing Project in the amount of $11500 #.000`,
further authorising the use of said funds as an interim
construction loan to the project, and second mortgage financing
commitments to the prospective homebuyers, subject to receipt by
the City of an affirmative opinion from bond counsel for the
bonds issued, pursuant to Ordinance No. 8514; and
WHEREAS, in May of 1989, through Resolution No. 89-447, the
City Commission allocated funds in the amount of $50,000 from
Capital Improvement Project No. 321037, "Second Mortgage Loan
Pool" - 1976 General Obligation Housing Bonds -Interest Income to
provide second mortgage financing to two (2) low and moderate
income homebuyers purchasing new single family homes in the
Wynwood neighborhood developed under the City's Scattered Site
Homeownership Development Program; and
WHEREAS, approximately $40,000 was expended from the
aforementioned project account in order to provide said second
mortgages to two (2) low and moderate income homebuyers in the
Wynwood neighborhood; and
WHEREAS, in an attempt to further insure that the housing
units planned are affordable to low and moderate income families
and -individuals through lower monthly: mortgage payments of
principal, interest, taxes and insurance (PITI), it is
recommended that the City Commission modify the`City's second
mortgage assistance of $1,460,000 to the Melrose Nursery Housing
Project as an interim construction loan to the project sponsor
and subsequent second mortgage commitment to tthe prospective
homebuyers, to establish a Fannie Mae assisted first mortgage
interest rate reduction financing program in conjunction with
local financial institutions; and
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RREASi during the construction phase of the planned
housing project# the $l`460,88U in City assistance will be
provided to CODEC Inc. as an interim construction at an interest
rate of three percent (3%),; and
WHEREAS, it is advantageous for the City to designate
Barnett Bank of South Florida, N.A. as the escrow agent to
administer and disburse the 1 460 000 in City
� receive, admini $ , y
assistance to CODEC, Inc. as an interim construction loan for the
development of the affordable townhome project planned on the
Melrose Nursery Site; and '
WHEREAS, Barnett Bank of South Florida, N.A. as escrow agent
shall hold the said City funds in an interest -bearing escrow
account, said interest earnings on the principal amount to be
returned by the escrow agent to the City; and
WHEREAS, the roles and responsibilities of the City of Miami
and CODEC, Inc., are set forth in the attached Agreement;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The City Manager is hereby authorized to enter
into. an Agreement,11 in substantially the form attached, between
the. City of Miami and CODEC, Inc. for the development of a one
hundred fifty (150) unit townhome project affordable to low and
moderate income families and individuals on the publicly -owned
Melrose Nursery Site.
Section 2. Section 5 of Resolution No. 89-965 adopted
October 26, 1989, in regard to development of the publicly -owned
8.5 acre Melrose Nursery Site for affordable housing purposes, is
The herein authorization is further subject to compliance
with all requirements that may be imposed by the City
Attorney as prescribed by applicable City Code provisions.
IW3-
hereby amended in the following particulars:'/
Section S. The City Commission
hereby
finag__.provram for the Melrose Nursery
project; further authroizing the use of said
funds as an interim construction loan to the
project sponsor, subject to receipt by the
.City of an affirmative opinion from bond
counsel for the bonds issued, pursuant to
Ordinance No. 8514.
Section 3. The City Commission hereby establishes an
interest rate of three percent (3%) for use of the available
$1,460r000 in City assistance to CODEC, Inc. as an interim
construction loan to construct the proposed housing project.
Section 4. The City Manager is hereby authorized to proceed
in developing an Interest Rate Buydown Program with Fannie Mae
approved local financial institutions to provide below market
interest -rate first mortgages to the purchasers of the townhomes
planned on the Melrose Nursery Site.
Section 5. The City Commission hereby designates Barnett
Bank of South Florida, N.A., as escrow agent to receive,
administer and disburse the $1,460,000 in City assistance to
CODEC, Inc. as an interim construction loan for the development
of the affordable townhome project on the Melrose Nursery Site.
Said City funds shall be deposited in an interest -bearing escrow
account, said interest earnings to be returned by the escrow
agent to the City. The herein authorization is subject to
satisfactory assurance and acceptance by the City Administration
that all firm commitments for project financing are available.
Section 6. All recitals and findings contained in the
Preamble of this Resolution are hereby incorporated by reference
thereto and are hereby adopted as if fully set forth in this
Section.
Section 7. This Resolution shall btj:ome effective
immediately upon its adoption.
21/ Words and/or figures stricken through shall be deleted.
Under scored words and/or figures shall be added, The
remaining provisions are now in effect and remain unchanged.
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.: PA9919b AND ADOPTED th i R 12th, day of July
FINANCE DEPARTMENT REVIEW:
CA ARCIAt DIRECTOR
FIVA-6CIr DEPARTMENT
CAPITAL IMPROVEMENT PROGRAM
REVIEW:
EDU 0 RODRIGUEZ
C.I. . PROJECT MANAGER
PREPARED AND APPROVED BY:
JOEL E. MAXWELL
CHIEF ASSISTANT CITY ATTORNEY
APPROVED AS TO FORM AND
CORRECTNESS:
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between
The City of Miami and
CODW too •
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This Agreement to entered into this ,,,-� day of
19900 by and between the CITY_ OIP M1 Nti, bade
county, a Municipal Corporation of the State` of. Florida (the
"City*) and CODW# Inc., (the "Project Sponsor*) wbose address is
300 Southwest 12th Avenue - Suite A, Miami, Florida 33130
(telephone number 642-1381).
�IIT�SBSH
WHEREAS# the City is implementing.a program to increase the
supply of privately owned housing affordable to families and
individuals of low and moderate income, known as the Affordable
Housing Developv"nt Program (hereinafter referred to as the
"Program"); and
IBREAS. Metropolitan Dade County has acquired legal title
to the Melrose Nursery Site, using City of Miami 1976 General
obligation Housing Bond proceeds, authorized pursuant to City of
Miami ordinance No. 8514 and City of Miami Resolution No. 76-339;
and
i1HSREAS# in January# 1987, through Resolution No. 87-820 the
City Commission designated the Melrose Nursery" Site -for the
development of a low density affordable homeownership housing
project# within the purchasing and affordability limits of lour
and moderate income familiest and
VUREAS# Florida Statute 125.38 provides# in part,, that any
real or personal property owned by e'county maybe conveyed -by
the Board of County Commissioners to a not -for -profit upon `terfas
and conditions set by the Board of County Commissioners# which
foster and promote the community interest and welfare; and
NNERNASs, CQDEC# Inc. has provided the. City with
documentation necessary to verify its designation as a not -for -
profit corporation* and its exemption from federal taxation under
Section $Q.1(c) (3) of the Internal (revenue Codes and
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WHEREAS, in October, 19891, the City Commission, through
Resolution No. 69-96 5, designated CODEC, Inc. to undertake the
development of a low density affordable housing project on the
- Melrose Nursery Site, to be marketed to families.,and individuals
of low and moderate income; established Seven Hundred nifty
Thousand Dollars ($7S0,000) as reimbursement to the City for the
'Melrose Nursery Site by CODEC, Inc.# and further directed the
City Manager to request Metropolitan Dade County to convey title
to the Site to the designated sponsor, subject to certain terms
and conditions; and
WHEREAS, in March, 1990, CODEC, Inc. received approval from
the Dade County Surtax Advisory Council to transfer a Surtax
funding commitment for Las Palmas Townhouse Project, in the
amount of One Million Nine Hundred Thousand Dollars ($1,900,000)
for construction financing and permanent financing, to the
Melrose Nursery project, contingent 'on CODEC, Inc. furnishing
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required documentation for review and approval by the Surtax
staff, and the Surtax Advisory Councilt,:•and
WHEREAS, the Hoard of Dade County Commissioners, through
Resolution No. , authorized conveyance of the Melrose
Nursery Site to CODEC, Inc., pursuant to City Resolution No. 89-
965; and
WHEREAS, CODEC, Inc. shall be required to .execute and
implement a First Source Agreement with the City's Community
Development Department, prior to commencement of construction;
and
WHEREAS, CODEC,. Inc., its General Contractor,
Subcontractors, Suppliers, etc., agree to comply with City
Ordinance No. 10062, known as the Minority and Vomen Business
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Affairs and Procurement Ordinance, or any modification, revision,
or substitution, thereof! and
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NOW TIMRSPORge in consideration of the mutual covenants and
promises contained herein, and subject to the terms and _
-° .-
conditions to be performed by the City and CODRC, lne , the
parties understand and agree as.followas s
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SECTION 1_-r- ORMITIONS
The words and terms not elsewhere defined in'. this Agreement
shall
have the following meanings
1.1
"DEPARTMENT" - Shall mean the City of Miami Department of
Development and Housing Conservation, or its successor.
1.2
"LOW INCOME FAMILIES/INDIVIDUALS" - Shall mean families and
persons, including the elderly, whose gross income does not
exceed 80% of the median income as defined by the Federal
Department of Housing and Urban Development, for the
Metropolitan Dade County Primary Metropolitan Statistical
Area (hereinafter referred to as' "PMSA").
1.3
"MODERATE INCOME FAMILIES/INDIVIDUALS` - Shall mean
families and persons, including the 'elderly, whose gross
income does not exceed 120% of the median income as defined
by the Federal Department of Housing and Urban Development,
for the PMSA and whose gross income does not fall below 80%
of the median income for the PMSA.
1.4
"PROGRAM" - Shall mean a program to increase the supply of
privately owned homeownership housing affordable to
families and individuals of low and moderate income known
as the Affordable Housing Development Program.
1.5
"PROPOSAL" - Shall mean the proposal submitted to the City
of Miami by CODEC, Inc., incorporated herein as Attachment
A
1.6
"PROJOCT DEVELOPMENT SITS" - Shall mean the site referred
to as the Melrose Nursery Site gene -rally located at
Northwest 28th Street and 27th Avenue, Miami, Florida and
legally described as foliowss
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Abblites: 2741 Northwest 27th Avenue, Miami # Plorids
LEGAL DROC91PTION: Unnumbered Tract lying in Pri•ts Homeeite,
West of NNW. 25th Avenue, according to the
Plat thereof recorded in Plat gook 30, Page
45, of the Public Records of Dace County.
Additionally, Lot 1, the North 40 feet of Lot
2, and the South 45 feet of lot 3, block 2,
of Groveland, according to the Plat thereof
recorded in Plat gook ll, page 54, of the.
Public Records of Dade County,#_.1Plor ida. .
SECTION 2 - TERM OLD AGREEMENT
The term of this Agreement shall be from
199� through , lgg_.
SECTION 3 - PROJECT DESCCRIPTION
3.1 "PROJECT OBJECTIVE• - The objective of the. Project is to
increase the inventory of privately owned, owner occupied,
housing units located in the City of Miami affordable to
low and moderate income families and persons, including the
3.2
3.3
elderly.
•PROJECT PRODUCTION GOAL" - The Project will include the
development of approximately 150 townhomes to be built in
three phases of approximately 50 units in each phase, and
will be constructed within the project development site.
'PROJECT FINANCING* - The Project will be financed using a
combination of public and private sources, including:
a) City of Miami 1976 General Obligation Housing Bona
proceeds for Site acquisition, with the City receiving a
third mortgage in the amount of seven hundred fifty
thousand dollars ($750,000) from the Project Sponsor,
whereupon said mortgage will. be partially released in
five thousand dollars ($ 5, 000) incrementx in exchafige
for third mortgages in the amount of five thousand
dollars ($5,000) received from the homebuyera. All
third mortgages may be prepaid without penalty.
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b) Citir ref Mimi 1976 General Obligation Housing nand
Interest income its the amount of one million five
hundred thousand dollars ($1,500,000) gill be tided gs
- second mortgage construction financing and- first
mortgage assistance for the homebuyers.'.The City will
receive three percent (.3%) interest, pet antrum, on the.-.
second mortgage' construction loan and a cash payment
equivalent to the present value of each unit's
applicable amount of the $1.5 million used to assist the
homebuyer. Three percent (3%) will be used as the
interest rate to calculate the present value, over a
thirty (30) year pay back period.
c) Metropolitan Dade County Documentary Surtax Program
funds in the minimum amount of one million nine hundred
thousand dollars ($1000,000), for use as second
mortgage construction financirsg to the Project Sponsor,
and second mortgage permanent financing to the
— homebuyers.
d) Homes for South Florida, Inc. will provide up to two
million one hundred thirty, thousand eight hundred
nineteen dollars ($2,130,819) in firstmortgage
construction financing to the Project Sponsor, and
permanent first mortgage financing up to three million
dollars ($3,000,000) to the homebuyers.
The specific roles and responsibilities of the City, and
Project Sponsor in implementing and developing the housing
project under the Program are defined in Section 4 and 5 of this
Agreement. c
SECTION 4 - PROJECT SPONSOR SCOPE OF SERVICES
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The Project Sponsor will have the following roles and
responsibilities in -implementing the Projects r`
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4.1 *V98 P963EiwT* The Project to be
constructed by the Project
Sponsor shall be substantially in
accord with that contained
?.
in the proposal submitted to
the city- and with the
requirements set forth therein.
The Project shall- consist
of one hundred fifty (150) dwelling units, shall bt
constructed in three phases of
approximately fifty (50)
units in each phase, and have the
following characteristics:
a) BUILDING TYPE - The Project
shall consist of
structures situated on the Project Development;Site in
accordance with. the site plan incorporated herein as
Attachment
b) DWELLING UNIT MIX - The
Project shall contain
substantially the following dwelling unit mix:
86 units shall consist of 2-bedrooms 2-baths
32 units shall consist of 3-bedrooms 2-baths
32 ynits shall consist of 3-bedrooms 2.5 baths;
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c) DWELLING UNIT SIZE - The dwelling units to be
constructed shall contain the following, minimum net
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square footages:
Model A - 2-bedrooms 2-baths i,152 square feet
Model B - 3-bedrooms 2-baths 1,443 square feet
Model C - 3-bedrooms 2.5-baths 1,443 square feet
DWELLING UNIT FLOOR PLANS - The- dwelling units to be
constructed shall be constructed substantially in
accordance with the preliminary floor plans contained in
the Project Sponsor's proposal.
PROJECT'S AMENITIES - The project to be constructed will
have the following amenities:
- Pool
- Recreation Area/Tot Lot
DWELLING UNIT AM£NITIE&.- The dwelling units to he
constructed shall each contain the following amenities:
- Refrigerator
- Range i Hood
- Central Air Conditioner
- washer and Dryer connection
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4.2
4.3
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g 1 PROJECT PARKING .. The Pro jeot will have ,. ,.. parking
spaces and oomph with the City Code.
"PAYMENT post PROJECT OBVELOMMT SITS' i- The payment method
and terms of compensation. to the City for the purchase of
the Project Development Site are provided in Resolution No.
89-965, which is incorporated herein and made a part of this.
Agreement as Attachment_____.
'PROJECT DEVELOPMENT COSTS' - Means an amount, provided in
reasonable detail to the City by the Project Sponsor: equal
to the aggregate of all costs and expenses actually incurred
by the. Project Sponsor for the purpose of and properly
allocated to the initial development* construction, and sale
of the Project as designated in accordance with the
development costs contained in the proposal submitted to the
City, including all on -site improvements. The estimated
Project Development Costs are:
Land $ 750,000
Site Work - 10054,725
Soft Costs 699,523
Hard Costs 61014,617
Total Development Costs 9805181865
4.4 "PROJECT SPONSOR RESTRICTIONS ON SPECULATION' - The Project
Sponsor promises and agrees to incorporate a restrictive
covenant in the warranty deed of each homebuyer which will
serve as a mechanism to impede investor speculation in the
Project, in addition to providing the City an opportunity to
participate as an equity partner in the sale proceeds in the
event the dwelling unit is sold prior to the tenth (loth)
anniversary of the signing of the deed by the homebuyer.
After the tenth (10th) anniversary of the signing of the
deed, the homebuyer will be released from the covenant and
may retain all said sale proceeds.
5.1
5.2
5.3
5.4
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O.RCTxOa _ 5� . CIM SCOPH or SuRVICKa
The City will have the following roles and tteponsibilities
In implementing the development of the Project:
"PROJECT DEVELOPMENT SIVN_ &MJs1Tt0M* bade County has
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acquired the Project Development Site, which to suitable for
the -development of approximately one hundred fifty --(150)
townhouse units.
"RELOCATION" i The City will be responsible for all
residential and commercial relocation activities necessary
for the -preparation of the Project Development Site.
"TITLE" - The City will facilitate the conveyance of good
and marketable, fee simple,, absolute 'title to the Project
Development Site to the Project Sponsor, at or prior to the
construction loan closing, provided all City and County
provisions and requirements have ':been complied with by the
Project Sponsoi.
"ADMINISTRATING AGENT: CITY" - The_Department of Development
and Housing Conservation, or its _successor, will act on
behalf of the City in fulfilling the requirements set forth
in this Section except as otherwise determined by this
Agreement.
SECTION 6 - PROJECT IMPLEMENTATION SCHEDULE
6.1 Project Sponsor shall submit plans to the City which shall
consist of final working drawings and specifications
including (without limitations) the following information:
a) Definitive architectural drawings;
b) Definitive foundation and structural drawings;.
c) Definitive electrical and mechanical drawings and final
specifications within sixty (60) days after the issuance
to the Project Sponsor of firm construction and
permanent. first mortgage home purchaser financing
commitments to finance the Project.
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6,2 The City shall review the final working drawings and
specifications and shall promptly provide 4tojeet>Sponsor }
notice of its approval or disapproval# and sha<_il further, in
event of 'disapproval, set forth in detail its reasons for
any disapproval within thirty (30) days after such receipt. `;
It is further understood that any changes to the final,
working drawings and specifications shall require the prior
written approval of the.City, and such approval shall not be
unreasonably withheld.
6.3 The Project Sponsor shall complete Phase I, II, and Ili of
the project and obtain a Certificate of occupancy no later
than eighteen (18) months, twenty-four (24) months, and
thirty-six (36) months, respectively, from the date of
conveyance of the Project Development Site by the City.
6.4 For the purpose of any of the provisions of this Agreement,
neither of the parties, nor any successor in interest, shall
be considered'. in breach of or in default An any of its
obligations in the event of unavoidable. delay in the
performance of such obligations due to strikes, lockouts,
acts of God, inability to obtain labor or materials.
governmental restrictions, enemy action, fire, unavoidable
casualty or,other similar causes beyond the reasonable
control of a party (not including Project Sponsor's
insolvency or financial condition). In the event of the
occurrence of any such unavoidable delays, the time or times
for performance of the provisions of this Agreement shall he
•�., extended for the period of unavoidable delays provided,
however, that the party seeking the benefit of this
provision shall, within fifteen (15) days after such party
shall have become aware of such unavoidable delay, give
notice to the other party in writing of the cause or,cau$ea
thereof and the time delayed.
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SECTION `f �- C•OMP41ANCS NITR 10E0ERAL, STA,
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AND LAIN$
LOCAL,
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both parties agree to comply with all
applicable laws,
ordinances, and coder of federal, state, and local +government.
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SECTION 8 - NONELEGA9ILITY
-
The Project Sponsor shall not assign
or delegate its.
obligations under this Agreement to any other
;party without the
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prior written consent of the -City.
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SECTION 4 - AUDIT RIGHTS
City reserves the right to audit the records of Project
Sponsor at any time during the performance of this Agreement and
for a period of one (1) year after final payment is made under
this Agreement.
SECTION lA - AWARD OF - AGRBEMENT
Project Sponsor warrants that it has not employed or
retained any person employed by the City to solicit or secure
this Agreement and that it has not offered to pay, paid, or
agreed to pay any person employed by the City any fee, commission
percentage, brokerage fee, or gift of any kind contingent upon or
resulting from the award of this Agreement.
SECTION 11 - CONSTRUCTION OF AGREENRUT
This Contract shall be subject to and governed .by the laws
of the State of Florida, both substantive and remedial.-
SECTION 12 SUCCBSSORS AND ASSIGNS
This Agreement shall be binding on, and shall inure to the
- benefit of, the parties to it and their respective heirs, legal
representatives, and successors.
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Project Sponsor shall indemnify and save City harmless from
and
against
any and all claimso liabilities, lossas# and causes
of
action which may arise out of -Project Sponsor's activities
under this
Agreement, including all other acts or omissions try
act
on the
part of Project sponsor, including any person acting
for
or on
its behalf, and, from and against any -orders,
judgments, or decrees which may be entered, and, from and against
all
costs,
attorneys' fees, expenses and liabilities incurred in
the
defense
of any such claims, or in the investigation thereof.
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SECTION 14 - CONFLICT OF INTEREST
14.1 Project Sponsor covenants that no person under its employ
who presently exercises any functions or responsibilities
in connection with this Agreement has any personal
financial interests, direct or indirect, except as
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disclosed in Attachment which is incorporated herein
and made a part of this Agreement, with the City. Project
Sponsor further covenants that, in the performance of this
Agreement, no person having such conflicting interest
shall be employed. Any such interests on the part of the
Project Sponsor or its ,employees, must be disclosed in
writing to City.
14.2 Project Sponsor is aware of the conflict of interest laws
of the City of Miami (City of Miami Code Chapter 2,
Article Vj, Dade County, Florida (Dade County Code;Section
2-11.1) and the State of Florida, and agrees that it shall
fully comply in all respects with the terms of said laws.-
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The parties hereto are independent contractor&. No other
relationship, legal or otherwise, shall be deemed to have been #'
created by this Agreement, including without limitation# a
partnership, joint venture, employer/employee, or principal/agent 41
relationship. Project Sponsor and its employees and agents shall
riot attain any rights or benefits under the Civil -Service or
pension Ordinances of the City, or any rights generally afforded
classified or unclassified employees of the City; further he/she
shall not ,be deemed entitled to the Florida workmens'
Compensation benefits as an employee of the City.
SECTION 16 - TERNINATION OF CONTRACT
City retains the right to terminate this Agreement at any
time prior to the completion of the services required pursuant to
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- Section 2 hereof without penalty to City. In -that event, notice
of termination of this Agreement shall be in writing to the
Project Sponsor, who shall be paid for those services performed
prior to the date of its receipt of the notice of termination.
In no case, however, will the City pay the Project Sponsor an
amount in excess of the total such provided by this Agreement.
SECTION 17 - NONDISCRIMINATION
Project Sponsor agrees that it shall not discriminate' as: to
race, sex, color, creed, national origin, or handicap in
connection with its performance under this Agreement.
Further that no otherwise qualified individual shall, solely
�i by reason of his/her race, sex, color, creed, national origin, or
handicap, be excluded from the participation in, he denied
benefits of, or be subjected to discrimination under any program
or activity receiving federal financial assistance.,
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��C�'tbN lti_ � MIt�Ot�t'�`Y.�t�iM�tlit�ME�tT COMpLIAt�CS
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Project Sponsor acknowledges that it has been furnished a
Copy of Ordinance t4o.10062 as amendedo the Minority Procurement
ordinance of the City of Miami, and agrees to comply with- all
applicable substantive and procedural provisions thorein,
including any amendments thereto.}
SECTION 19 CONTINGENCY CLAUSE
Punding for this Agreement is contingent on the availability
of funds and continued authorization for program activities and
is subject to amendment or termination due to lack of funds, or
authorization, reduction of funds, and/or changes in regulations.
SECTION 20 - DEFAULT PROVISION
In the event that Project Sponsor shall fail to comply with
each and every term and condition of this Agreement or fails to
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perform any of the terms and conditions contained herein, then
-
the City, at its sole option, upon thirty (30) days written
a
notice to Project Sponsor may cancel and terminate this
Agreement.
Specifically, should the Project Sponsor fail to complete
the Project and obtain a Certificate of Occupancy within the time
prescribed in Subsection 6.3 herein, the City, upon such time,
may cause the reversion of said property to the City.
SECTION 21 - ENTIRE AGREEMENT
-
This instrument and its attachments constitute the sole and
A
only Agreement of the parties hereto and correctly set forth the
_
rights, duties, and obligations of each to the other as of its
-
x
date. Any prior agreements, promises, negotiations, or
representations not expressly set forth In this Agreement are'Qf
k.
no force or effect.
SECTION 22 - AMENDMENTS
r
No amendments' to this Agreement shall he binding on either
Yz£
party unless in writing and signed by both parties.
T fir;;
r t Y%g
13
23.2
23.3
23.4
E
SWTION 23 GIMERA16 CONDITIONS
All notices or other communication given pursuant to this
Contract shall be in writing and shall be delivered by
personal service, or by regular mail addressed' to the party
at the address indicated herein or as the same may be
changed from time to time. Such notice shall be deemed to
be given on the day on which it is personally served or on
the date of its actual receipt, whichever is earlier.
FOR PROJECT SPONSOR
Jose Fabregasp Executive Director
CODECj Inc.
300 Southwest 12th Avenue
Suite A
Miami, Florida 33130
FOR CITY
Herbert J. Bailey
Apsistant City Manager
Housing Conservation and Development Agency
Dupont Plaza Center
Suite 401
300 Biscayne Blvd. Way
Miami, Florida 33131
Title and paragraph headings are for convenient references
and are not a part of this Agreement.
No waiver of any of the provisions of this Agreement shall
be deemed to, or shall constitute, a waiver of any other
provision, whether or not similar, nor shall any waiver
constitute a continuing waiver. No waiver shall be binding
unless executed in writing by the party granting the
waiver.
in the event that any provision of this Agreement is found
to he legally unenforceable, such provision shall he deemed
modified to the extent necessary in order to conform with
such laws, or if not modifiable to conform with such laws,
then the same shall be deemed severablO, and in either
r.
event; such unenforceability shall not prevent enforcement
of any other provision of this Agreement.
IN NIT"1188 HRR9010i the parties hereto have caused this
F instrument to be executed by the
respective officials hereunto
duly authcrixedi this the day and year first above written.
�i
SIGNATURE OF PROJWT SPONSOR
iCl'ii3RO � � 1`1tt ,►
PRESIDENT DATE
ATTEST: ;
CORPORATE SHCRETARY SEAL
WITNESSES (two required)
SIGNATURE OF CITY
CITY'OF xxAMI FLORIDA
By.
ESA He ODIO
CITY MANAGER
ATTEST:
_ MATTY HIRAI
CITY CLERK
WITNESS (two required)
APPROVED AS TO INSURANCE
RROU I RErMENTS :
DATE.
A.�
9
SEAL
44
x
q7 �r
{r 2
J
APPROVED AS
TO FORM
AND ''
CORRECTNESS
A'
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OROR M
A A
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Insurance Coordinator
City Attorney
Law D000rtmenk
,
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D��-j�9�
nxecutive birector
CODIC INC'
.300 S.M. 12 Avenue
Suits A
Miami FL, 33130
Dear Mr. Fabregas:
Re: Appr oval, to transfer surtax funding from the
Las Palma , a 'totheMelrose Nursery Project.
At its March 221 1990 meeting, the surtax Advisory Council approved
the transfer of $1. 9 million -frou . the "Las Palmas TOUT&CUielf
project to the "Melrose Nursery" project..
These funds. are availabl . e for use as interim construction financing
at three percentinterest pending required documentation, for. roviev
and approvak`by staff and the Documentary Surtax Advisory, Council.
All other general conditions set forth in the Melrose RYP and Board
of County Comission-resolution apply*i
Sincerely,,
APete g M. K;o�pe�nits
Assistant Director
PMK:o9
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k
100 East Flagler Street
Second Floor
Miami, Florida 33131
305•S79.307SAM
June 210 1
Mr. Cesar Odio
Manager
City of Miami
330b Peen American Drive
Miami, Florida 33133
Dear Mr. Odio:
I am writing at the request of Jose Fabregas, Executive Director of
CODEC, tnc., to explain the status of Homes for South Florida`s involve-'
ment in the financing of Melrose Townhouses.
The members of Homes for South Florida's lending consortium .. Barnett
Bank, Citicorp Savings, First Union, NCNB, Southeast and Sun Banks —
have met and given preliminary approval to a proposal submitted by
CODED for 150 townhouses on the Melrose Nursery site. As part of that
proposal, it was understood that the City of Miami would be asked to
provide construction financing at no more than three percent, and that,the`
construction funds would be converted into second mortgages for the
Purchasers of the townhouses, more or less according to the model estab
fished by the Dade County Surtax program.
In order to become a firm commitment, the other parts of the financing
Will have to be finalized, and a more detailed review by Barnett Bank,
acting. as lead lender for the consortium, will need to be undertaken. But
based upon theproposedstructure of the financing, the members have
agreed to proceed, and have extressed a strong commitment to working
with the City and CODEC to complete the project.
It on the other hand, a substantial change is made in the assumptions on
which the preliminary approval was based — particularly the rate, terms
and conditions of the other source of financing -- then our preliminary
approval would have to be reconsidered in light of the new assumptions.
i
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Inhibit 1
; r
F'ANNIE MAN NO AU ZWMARST
RA" Bu tbon PROGRAM
-
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pB1�M� �� i��itST ♦1'Ai�B
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l5~ gSS
2 BED
2'
2 BBDW
�tO
2 ONDROOK
BATS$
2 BMMS
.1/2 BATHS
Sales Price
$55,000.00
$66,600.0067,400.00
Downpayment-(58)
2,750.00
3,330.00
3,370.00
Total Finance
Pirst Mortgage.(58)
52,250.00
63*270.00
64,030.00
Surtax Mortgage-(38)
24,750.00
27#500.00
30,270.00
33,000.00
31,030.00
33,00.0.00
Monthly Payments
—
Surtax
First Mortgage
$ 25.00
$ .25.00
$ 25.00
Condo Fee
132.86
162.50
16b.58
Insurance
70.00
70.00
70.00
Taxes
50.00
50.00
50.00
73.00
73.00
73.00
=
Est. Total Monthly Payment
$ 350.86
$ 400.50
$ 404.58
Monthly Savings..
$ 93.60
. $ 114.50
$ 117.34
Annual
Life of Mortgage.(Savings)
1,123.20
33,696.00
1,375.05
41,221.47
lr408.13
42,243.93
Annual Family income
Required at 28%
$15,036.86
$17,164.29
$171,339.14
-
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90, 547
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FYI}ice ,
A
December a, 19g9 - �rannieMse
Mrb Robert Pollack
Executive Director
Greater Miami Neighborhoods, Inca
1491 south Miami Avenue
Miami, FL 33131 .
R,ir: Compensating Balance M Interest Rate Buydown Program
Dear Mr, Pollack:
We have reviewed the proposal from the Greater Miami
Neighborhoods, Inc.# to use the net proceeds from a
"Program Related Investment" as a source of funds to
compensate a lender for its. logs associated with selling
below market interest -rate first mortgages to Fannie Mao.
This letter confirms Fannie Mae's willingness to enter
into a community leading agreement, with a Fannie Mae
approved lender, under which below market interest -rate
first mortgages may be sold to Fannie Mae at a price which
in based on our market yield requirements.
Enclosed are the special community lending terms and
conditions under which Fannin Mae normally agrees to
purchase first mortgages originated in connection with the
Dade County Surtax Subordinate Mortgage Program or any
similar subsidized second mortgage program. Greater
Miami Neighborhoods may use this letter and the enclosed
terms and conditions to assist it in its effort to raise
the desired "Program Related Investment" from interested
investors.
You may also use this letter and the enclosed terms to
discuss this program with interested lenders, however,
Fannie Mae requires that you confirm the landerfs
eligibility for participating in this community lending
program, in advance, by contacting me. I am also
available to assist the Greater Miami Neighborhoods in
discussions with prospective investors or lenders.
6
b�
It :165 6238 FR 441 E MAE � � 12/ 11 /89 09 : 0#7
r,,
Mr. ]Robert Pollack
bacember 1, 1484
Page 2
% understand from•our meeting with Mrs Noble and from.our
recent conversation, that Northern Trust Bank of Florida
is interested in selling loans under this community
lending program. Northern Trust Bank of Florida sells
loans to Fannie Mae through its affiliate, The Northern
Trust sank in Chicago. The Chicago bank is currently
approved as a. Fannie Mae Geller/Sorvioer. Please ask
Mr. Noble to discuss the community lending program with
The Northern T3ftst bank in Chicago. if. Northern in
Chicago agrees to participate in the program, they should
contact Marty Long in Fannie Maus Chicago Ragional office
to discuss contracting to sell these mortgages when
appropriate. Mr. Long can be reached at (312) 368-6247.
Please feel tree to call me if you have any questions
pertaining to this letter, the enclosed terms and
conditions or any other community lending program which
you may wish to discuss.
sincerely,
;t
Robert J. Detjen
Investment officer, Low- and
Moderate -income Housing
RJD/vit
Enclosures
90- 547
P�
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365 6239 PAW I E MAt .4. i'fi1
on, ity ifs Pro am
Tar" asd Comitiorrs
Kligible .This ooMUnity lending agreement is approved
nders between rannis Mae and _
the "Seller", .
gligiblo Tha following commmunity landing programs are
eomw:unity Lending eligible for participation under this
Prograus agreements
s
A. DODUVAWktarY Stoup Surtax
SUboYdinats LMU
Dadelmmty, plorida►
D. Greater Kiani Me a # .. Inca
Program Related Investuent
Compensating ftlawn - Interest Rate euydown
Progran for First Kortgages
Additional community lending programs may be
approved by amendment of this community
landing agreement. Seller may obtain approval
of additional community lending programs by
submitting the following to the Low- and
Moderate Income Investment officer,
Multifamily/Public Finance, 950 East Paces
Ferry Road, Atlanta, Georgia 30326-11611
a. A description of the community lending
program and the name, telephone number
and address of a local contact person in
charge of the community programs
4
b. The name of the local Seller Affiliate
interested in participating in the
program along with the name and telephone
number of a local lender representative;
c. Any recommendations or commenter that the
Seiler has regarding the local community
lending program.
Eligible one -family owner -occupied principal
Properties residences, including units -in condominiums,
and planned unit developments (PUDS).
Properties may be new, existing, or
rehabilitated, and may .be located in stable
neighborhoods or neighborhoods targeted for
revitalization. Rehabilitation must be
completed prior to sale of the loan to Fannis
Mae.
90- 547
365 6238 I'ANN I P_ MWE
Pederal National mortgage Association
tomsriunityr L4nding Ptogram Terms and Conditions
Pa90 g
lntereet VAtras
and Priaing
4 '
l�in3�u�e/l�raximu�
original
Mortgage .
Asounts
interest rates on the loans Say be below
currant market rate. Loans sold for cash will
be priced to squat* to a market yeild to
pannis Mae. Loans sold through a neagotiat6d
securities transaction must meet Fannie Mae t s
standard pooling requirements in the M
Selling and servicing Guide.
There in no minimum loan size:
Maximum mortgage amounts are the standard
Fannie Mae limits as stated in the Selling
Guide, Part_ 111, Chapter 1, Section 208.
Because of our community lending household
income limits, we do not expect the maximum
amount limits to apply.
Xaazinun.Loatn- If subordinate financing is used, the maximum
to value Ratio loan -to -value of the first mortage will not
exceed 80 percent.
Maximum Combined Up to 95 percent: first mortgage plus
Loan -to -Value subordinated secured financing, except for the
Ratios Dade County Surtax Program, if the borrower s
income is at or below Sot of the area median,
the aazimun CLTV is 97a. (Also see downpayment
requirements and MS limitations.)
Loan -to -value ratios are normally defined as
the lower of the sales price or appraised
value. If the owner -occupant mortgagor has
completed the rehabilitation, than the
percentages are based on lower of:
(1) acquisition cost plus rehabilitation cost,
or (2) appraisal value after completion of
rehabilitation.
Loan Terms 15-year and 20-year fixed-rate, level payment
mortgages. '
Servicing Fetes For cash purchasers, the standard Fannie Mae
fee of 3/8 percent will apply= for MRS, the
standard Fannie Mae fee of 1/4 percent will
apply.
Excess Yield and Retained by seller.
Buydow n Funds
Mortgage current Fannie Mae/Freddie Mac uniform
instruments instruments must be used.
90-• 547
36S 6238 FANNIE MAE �"� 12i11i Mgt
Pedaral Hat3.onal Moirtgage Association
C*=Uhity Lending ftograik Terms and conditions
Palo 3
Age of Loans
Mortgage insurance that reduces Fannie Mae's
exposure to a maximum 7S percent of value, is
required from a Fannie: Mae approved insurer on
loans where the loan -to -Value ratio exceeds so
percent. Standard Fannie Mae, requirements
apply.
Required on all loans per Selling Guide
requirements. All loans must be new originations.
Reporting Systems LASER Actual/Actual only for whole loans;
LASER Scheduled/Scheduled only for MBS
Borrower Income Borrowarts income will not exceed the area
median income as calculated by HUD, or other
income guidelines required by any approved
subordinate -mortgage or grant program.
The Seller must verify income for two full
consecutive years in order to determine its
adequacy and continuance. The sailing Guide
details the types of income Fannie Mae
considers acceptable (e.g., salary, wage,
social Security, military, commission,
overtime, bonus, alimony, and other income)
and the methods for calculating certain types
of income.
counseling Borrowers may participate in a homeownership
and personal finance counseling program by a
recognized community organization or in a
counseling session arranged by the lender. It
performed, this must be documented by a letter
in the loan file from the lender or a
community group.
Subordinato Subordinated second 'mortgages may be provided -
Financing by public/governmental or private/philan-
thropic programs, under any or all of the
following terms:
a. Below market -rate interest is allowed on
subordinate mortgages. Repayment of
principal and payment of interest may be
deferred for a predetermined period. A
nominal carrying cost may be required
during the deferred repayment period.
94- 547
l
36S 6288 FAt414 I V: We
Pederal National Mortgaga Asaaoiation
C6%*uhity lending program Torso and conditions
Page 4
b. Interest may accrue during the deferred
.repayment period, but any accrued
interest must be fully forgiven after the
deterred payment period , . Aecrued
interest may be payable only upon Gale ` or
default at the first mortgage during the
deferred repayment period.
o. After the deferred eepaymant period,
principal may be full or partially
forgiven. If repayment is required, the
loan balance must. be fully amortized by
level payments over the remaining term of
the first mortgage.
Other subordinate financing terms may be
approved by amendment of this community lend-
ing agreement only. For each public or private
subordinate mortgage program which masts the
approved terms, the subordinate financing
documents and any changes thereto must be
approved in advance of loan deliveries.
Subordinate Seller may obtain approval of subordinate
Mortgage mortgage program and documents by submitting
Approval the following to taw- and Moderate -Income
Investment officer, Multifamily
Activities/Public Finance, 950 East Paces
Ferry Road, Atlanta, Georgia 30326-1161:
a. A complete description of the subordinate
mortgage program terms and conditions,
including the name and address of Lender,
funding source cif appropriate), and any
qualifying restrictions placed on
borrowers=
b^. A copy of all related loan documents to
be used in connection with the subordi-
nate mortgage program including the note,
mortgage and other loan documents; and
c. Name and address of :subordinate loan
servicer, if different from Lender.
maximum Monttily The maximum monthly housing expense -to -income.
housing Expense- ratio is 26 percent of the borrower's stable
Income Rat o monthly income. Monthly housing expense is
defined in the Fannie Mae Selling Guide.
90- 547
x
t
365 6238 FAM I E MAE 12/ 11 / E9 09 0'09
Pedejral stational Mortgage Aaeoeiation
Community Lending progran Terms and Conditions
page 5
Any secured subordinate financinq which fully
deters principal and interest payments for at
least 60 montha,. fully forgives all aderued
interest, and requires no other foes or
payments that would add to the borrowers
monthly housing ®xpense until at least the
61st month, may be excluded from calculation
of this ratio.
maximum Total The* maximum total obligations -to -income ratio
Obligations -to- is 36 percent of the borrower's stable monthly
Income Ratio income. This ratio is defined in the Fannie
Mae Belling Guide.
Any unsecured financing made as part of the
home financing or closing costs, which
requires payments before the 61st month,
should be included in the calculation of total
monthly obligations ratio. Any repayment of
unsecured financing which is fully deferred
for at least 60 months and is then either
forgiven or requires repayment over a reason-
able amortization period may be excluded from
the calculation of this ratio.
salt -Employed Fannie Mae regards any individual With a 25
Borrowers percent or greater ownership interest in a
business as self-employed. income Prom
self-employment is considered stable if the
borrower has been self-employed for two or
more years. Anyone self-employed between one
and two years must have at least two years
previous continuous employment in the same
occupation to be eligible for financing.
Anyone who has been self-employed for less
than one year has not established a history of
stable self-employed earnings and is not
eligible for financing. "
DoWnpayment The equity requirement is the appropriate
percentage, specified in the Fannie Mae
Selling Guide, but no less than five percent
on a 95 percent loan -to -value ratio loam,
except that for the Dade County Surtax
program, if a borrower's income is at or below
50 percent of the area sedian, the equity
requirenant is no less than $1,000 or. three
percent, whichever is greater, on a 97 percent
CLTV loan. Median income for this exception
trust be documented in each file.
90- 547
M
365 62.38 F'A"A t E MAE 1211118? 0? : i
L=
Federal National Mortgage Association
Comunity tending program Terms and conditions
Vag* G
cloning costs Closing costs and other prepaid items must be
paid by the borrower front, personal resourcea,
if such resources are available. If they are
not, the borrower may fund closing costs with
grants or unsecured loaner that may be made
available, subject to the downpayment
requirements described above. The repayment
of any unsecured loans made as part of the
home financing must be included as a monthly
obligation in calculating the income ratios as
described above.
Gifts and
Gifts can be used as part of the cash for
contributions
closing if the donor is a gamily member,
pursuant to the terms and conditions of the
Sellinq guide. Also, other grants from
governments, foundations, or other charitable
organizations are Allowable as gifts.
In addition to the gift, the borrower must
make a cash downpayment of at least five
percent from their own resources.
credit History
Fannie Mae requires a residental mortgage
and Credit
credit report from an independent credit
Report
reporting agency that meets the requirements
stated in the Selling Guide. The credit
report should reflect the borrower's overall
credit history and a public record search for
each locality in which the borrower has lived
during the two-year period that precedes the
report's issuance.
The borrower's demonstrated willingness and
ability to repay may be documented also by
verifications from utility companies, current
and previous landlords, and other sources of
• credit or service where the borrower was or is
required to meet a regular financial
obligation as indicated in the Selling Guide,
Part IV, Chapter 20 Section 205.
Appraisals Where other non -subsidized newly -constructed
comparables exist, appraisals should not be
based on comparable properties that use
subordinate financing, due to resulting
distortions in the measure of fair market
value.
90- 547
0
-36b Ea _38 F'k,#41 E 11HE ,. 12/ 11 /89 09110
Fod6ral National Mortgage Association
Community Lending Program Terms and Conditions
Pago 7
1krajo,at All oondo%inium projents must be ap raved in
standards advance by Fannie Mae under our gro�ect
Standards guidelines, in part IV of the Sannie
Mae Selling Guide. Under these guidelines, a
projeat?s legal documentation', budget,
architect, and engineer reports should bs
reviewed by the seller and submitted to Fannia
Maets Project Standards group in the regional
office.
Inspections Fannie Mae requires the Seller to perform a
final inspection of each rehabilitated or
newly -constructed unit prior to settlement so
as to assure that the property has-been
rehabilitated or, constructed in accordance
with program requirements.
Fannie Mae reserves the right to perform its
own inspection of any unit prior to
settlement.
Special Loan Terms A copy of these terms and conditions should be
Documentation placed in each.applicable file submitted to
Fannie Mae, as well as in each file maintained
by the Seller.
Low- and Noderate- In Atlanta, the contact is Mr. Bob Detjen,
Income Housing Multifamily Activities/Public Finance, Federal
Investment Officer National Mortgage Association, 950 East Paces
Ferry Road, suite 19008 Atlanta, GA
30326-1161; (404) 365-6023.
A
90- 54'7
x
365 6238 FRA 4 i E MHE -�.` 12 / 11 /89 r3lil: it
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Padaral National mortgage Association
} Community Tending Program 'berms and conditions
t page 8
Option for stand-alone cash standby commitmentas
Cash Standby standhbd fee will be �rdiVed. �
Commitx ent Foe
Cash standby standard fee will be waived.
Conversion tree
�tR#*RllitRlRtMtMfkRRirk#+k#+k*R*�rtk*A�*t��R�RRAM�RtMR9l1k#R��tk#t*�#tkk*tk�r#t4RtkRRRtAitki
Option for negotiated MBS and Cash commitments under a Master
Agreement INOTE: Loans vitb CM gXceedl 95a may, not he sold_ for
Securities W14ar an "S ag=ene" at thLe tlze.Lx
MM special For all mortgages originated under the
Feature Code Community Lending Program that Seller wishes
to include in MBS pools, Seller is required to
enter Special. Feature Code 054 when submitting
the Fannie Mae Form 2005 or Hornet
transmission. All other standard Fannie Maa
pooling requirements contained in the Selling
Guide apply.
To be eligible to deliver Community Landing
Program loans in Fannie Mae MBS pools, Seller
must document that it has internal procedures
! in place to ensure that Special Feature Code
054 will be entered on Fora 2005 or Mornet
transmission.
Negotiated For all mortgages originated under the
Cash Community Lending Program that Seller
Commitment wishes to sell for Cash, Seller is required to
specify the following information when
negotiating a commitments
Program Code for Community Home Buyer
Program in LKE 009;
X-Codes for Community Home Buyer Program
is 009;
Community bending Program loans may not be
mixed with standard product loans when
delivered for cash (a separate negotiated oash
commitment contract is required). Lender is
required to enter special reature Code 054
when submitting the Fannie Mae Form 1068 or
Mornet transmission.
To be eligible to deliver Community Lending
Program loans for cash, Seller is required to
document that it has ••internal procedures in
place to ensure that the above contracting and
reporting requirements are mat. 9 0 - 5 4-7
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CITY OF MIAMI, FLOAIDA
INTER -OFFICE MEMORANDUM
!able Mayor and Members
y DATE : Jill w 3 i90 FILE'". of the CityCommission
Melrose Nursery Affordable
sua,Ecr : Housing Project
'ROM: Cesar Odio REFERENCES: City Commission Agenda
city Manager Item - July 12, 1990
ENCLOSURES:
RECOM4S MATION:
It is respectfully recommended that the City Commission approve:,the
attached resolution, authorizing the City"Manager to enter into.an
Agreement between the City and CODEC, -Inc., for the.development.-of
a 150: unit affordable townhome project on the 8.5 acre Melrose
Nursery Site.' The resolution further. amends Section 5t of
Resolution No. 89-965, adopted October 26, 1989, by.modifying the
t
City's commitment to provide $1,500,000 in second, mortgage
financing to the prospective homebuyers of the housing units
planned on' the Melrose Nursery Site, to $1,460,000 in City .
assistance to establish. a Fannie Mae first mortgage interest
reduction financing program. The attached resolution:.further
establishes an interest rate of three percent (3%) to be. assesses'
CODEC, Inc.# for the•use of the City funds during construction, in
addition to authorizing the City Manager to transmit the $1,4601,00.0
'
in City assistance, earmarked for the- development of the
aforementioned housing• project,, to Harnett Bank of South .Florida,`
N.A. for disbursement to CODEC, Inc.,.during the construction phase
°.
of the
,project.
z
BACKG D:
The Department of Development. and Rousing Cohservation recommend$
ratifigatior. of the attached resolution,,'.; authorizing- the City'
Manager to . enter . into " an . Agreement, between. the' .City and CODEC_
Inc., for the. development of the 8.5 acre Melrose ,Nursery, 15iter,
The .resolution furthest amends section 5 • of Resolution No,' 89-965
adopted October 26, 1989•, by modifying. the City.'s cQm>aitment .: to
k
"
.provide' $1, 500', 000 -in second mortgage financing -to the, prospectiye,,
purchasers. of the housing units planned on the Malrose. Nursery
Site, to $1; 460, 000 in City assistance to establish a. yarini+
first mortgage interest reduction financing program,. Ths ;att.e+e
resolution further establishes anw interest., Late of, tbtee percent
($") to be assessed CODi{C, Inc., four use of the City, fcA+de=delr.3ts
construction,' in addition to authorix.ing . the . City : ,Xaaa$�e,c
transmit the 4.1, 460 000 in City Apsillstance
development of the Mellow Nursery Housing Projec' t to Narllott
ox.. oo4zh nor ido, N,A9 for d.isbul>rels<elment to CONC. &44 q 1F dcr timt. G
Construction; phase of . this project. ,ta
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ftlroae nursery Housing project Page 2
At its October 26, 1989 meeting, the City Commission# through
Resolution No.'89-965, approved the designation of-CODEC;'Inc. a9
project sponsor for the development of a 150 unit affordable
townhome'development on the 8.5 acre publicly -owned Melrose Nursery
Site.
Since October of 19890 CODEC, Inc. has been working diligently on
moving the construction of the proposed 150 unit housing project
forward. To date, CODEC, Inc. has secured a preliminary commitment
for $2,130,819 in construction financing and $3,000,000 in
permanentfirst mortgage financing from Homes for South'Florida,
Inc* for the prospective homebuyers of'the Melrose Nursery Housing
Moreover,- at the March 221, 1990 Dade County Documentary
Surtax" Advisory. Council meeting, the Advisory Council z approved
CODEC', Ines request to transfer its $1,900,000 in surtax funded
interim construction financing and second mortgage financing,
commitments' from the Civic Center Site (Las Palmas H(iusing'-Projest)
to the Melrose Nursery Housing Project. "
The '` aforementioned financial commitments to the' project, in parts
would'enable CODEC, Inc. to move forward in developing Phase i`and
II, consisting of ' approximately one hundred .(100) 'dwelling units:
Additional -surtax and private financing will have 'to'be secured `by
CODEC, Inc.'in'order to develop''Phase IIi, which consists of fifty
(50) dwelling units.
On June 8, 1988'0 through Resolution --No. 88-529,-the City Commission
approved the use of $1,500,000 in 1976 General Obligation 'Rousing }
Bond�Interest' Income for the 'purpose of < providing second mortgage
financing commitments to the prospective homebuyers of the fiousing
units planned on the Meltose Nursery Site. Through Resolutiom:No. h
89-96'5, the City' 'Commission reaffirnmed the City°s commitment" '.to
provide $1,500,000 in City assistance to the Melrose Nursery
Housing Project for the- above mentioned purpose, ;In addition to `>
authorizing the use of said funds as aft interim construction loan
to CODEC _Inc. during the construction of'tne project. p ` X
In May of 1989, through Resolution No. 89-447, the City, co i Alsi+on
allocated :funds it . the amount of $50#,000 from Capital .1�aproVime4t
Project No.. 321037, "Second Mortgage Loan Pool" 1976;, Gene ol.
Obligation dousing Bonds -Interest Income,' =to' . `pflvide ,"second
mortgage financing to two- (2) low' and/*r moderate incoue..home.bu i$
purchasing now single family horses ian.the Wynwood neigbborbow �
developed under the C ty's Scattered Bite Af fordable'.. Homeoitooiji6A.
Development Program. Approximately $40000 was ,expended from . tree
aforementioned project account in order to provide second m6ft90e }
loans to the two (2) hosmebuyers in the Wynwood not +� 19 h0
Presentlys, there exist a remaining balance of $1,480,400.in Pr6'
NO, 321037 "Second Mortggge Doan pool* 1974 ne�al
Housing Bonds -Interest income available to provide Citi► B40,B�
to the. Melrose Nursery Housina Proiect. .
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Melrose Nursery Housing project Page 3
It is recommended that. the City Commission approve the
establishment' of an interest rate of three percent (31) to be
assessed CODEC, Inc. for use of the $1,460#000 in City.assistance
during the construction phase of the proposed project. The
proposed three percent (3%) interest rate is in line with- the
interest rate which has been assessed by Metropolitan Dade County
for use of the $1,900,000 in surtax funding which will also be used
by the aforementioned not -for -profit corporation during the
construction phase.
In view, of the fact that Barnett Bank of South Florida,-N.A. will
" be providing and disbursing the surtax funds during construction of
the proposed mousing project, it is also recommended that Barnett.
Bank be designated as the escrow agent' to receive, administer and
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disburse the $1,460-,000 in City assistance to CODEC, Inc. during
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the construction of the townhome project planned on the ,,Melrose
Nursery Site. The $1,460,000 in City assisted construction
financing will be returned to the 'City on a prorated basis as _each
individual .housing unit. is marketed and sold by the project"
sponsor. Should the -City Commission designate Barnett Bankas;the
escrow, agent, it is further recommended, that the City funds be
deposited in an interest -bearing escrow. account during
construction, and that the interest earnings on the principal
amount be returned by Barnett Bank to the City.
Lastly,,' in an attempt to ensure that the proposed townhome:: units
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are within the affordability range and purchasing power of families
and. individuals of low and, moderate income, ,it is further
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recommended that the City Commission also approve the use of the
$1,460,000 in City assistance to establish a Fannie Mae-, first
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mortgage interest reduction financing program in conjunction with
Greater Miami Neighborhood, Inc., and with . local.; financial.
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institution(s�, for the purpose of providing below market interest
rate first mortgages' to '`the prospedtive homebuyers. It 'is .
anticipated that through this financing mechanism -the City could
assist in.provid;ing'affordabl.e !first mortgages -to the purchasers.of
the town -homes at' interest .rates as low as five percent (51) . The,:
het result of this financing,. strategy would enable., the .City,. to
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provide affordable homeownership -opportunities to families and.
individuals earning as low as $15,000. - $17,000-.annually. Tie
projected monthly mortgage payments on the townhomes.financed under
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this program would range from $350:86 to.$804.58 monthly,
With approval of the attached resolution, conetr'uetfon on;this much
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needed housing project can' move forward.
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