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HomeMy WebLinkAboutR-89-0082J-89�70 Ol/d9/89 RESOLUTION 89782 A RESOLUTION AUTHORIZING THE CITY MANAGER TO ACCEPT A RENTAL REHABILITATION PROGRAM GRANT FROM THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) FOR $686,000 TO INCREASE THE SUPPLY OF AFFORDABLE, STANDARD HOUSING FOR LOWER INCOME FAMILIES; AND FURTHER AUTHORIZING THE CITY MANAGER TO SUBMIT THE PROGRAM DESCRIPTION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR APPROVAL. - WHEREAS, Section 17 of the United States Housing Act of 1937 establishes a program known as the Rental Rehabilitation Program to increase the supply of affordable, standard housing for lower income families; and WHEREAS, the City of Miami is experiencing a severe rental housing shortage affordable to lower income families; and WHEREAS, the U. S. Department of Housing and Urban Development has allocated $686,000 of Rental Rehabilitation Program Grant funds to the City of Miami; and ii.•iiY�� WHEREAS, a Rental Rehabilitation Program description is required to be submitted to the U. S. Department of Housing and =x Urban Development by January 20, 1989; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: j Section 1. The City Manager, as chief administrative officer for the City of Miami, is hereby authorized to accept the tiF Rental Rehabilitation Program Grant from the U. S. Department of Housing and Urban Development for $686,000. Section 2. The City Manager is further r authorized to submit the required program description to the U. S. Department #` of Housing and Urban Development for approval. N t: y StY P h _r .. - • `may- �1C [�N � CITY 11orlI t�7 MEETING OF JAN 12 198;a ESOWTIONft [7FAI t KSt 01/09/89 RESOLUTION S9-.O 82 A RESOLUTION AUTHORIZING THE CITY MANAGER TO ACCEPT A RENTAL REHABILITATION PROGRAM GRANT FROM THE U.S, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) FOR $686,000 TO INCREASE THE SUPPLY OF AFFORDABLE, STANDARD HOUSING FOR LOWER INCOME FAMILIES; AND FURTHER AUTHORIZING THE CITY MANAGER TO SUBMIT THE PROGRAM DESCRIPTION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR APPROVAL. WHEREAS, Section 17 of the United States Housing Act of 1937 establishes a program known as the Rental Rehabilitation Program to increase the supply of affordable, standard housing for lower income families; and WHEREAS, the City of Miami is experiencing a severe rental housing shortage affordable to lower income families; and WHEREAS, the U. S. Department of Housing and Urban Development has allocated $686,000 of Rental Rehabilitation Program Grant funds to the City of Miami; and WHEREAS, a Rental Rehabilitation Program description is required to be submitted to the U. S. Department of Housing and Urban Development by January 20, 1989; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager, as chief administrative officer for the City of Miami, is hereby authorized to accept the Rental Rehabilitation Program Grant from the U. S. Department of Housing and Urban Development for $686,000. Section 2. The City Manager is further authorized to. submit the required program description to the U. S. Department. of Housing and Urban Development for approval. ear COMM 4 1 ATTACHMENTS JAN 12 '1980�� ��{� ION CoHT1FRI� E D 7 70,10r4i. . . .. .... WKSs 1 r� Sa t r t - PASSED AND ADOPTED thin 12th day of 10000 y f .i y l xf r. .. f' av er L. Suarez mayor 1 s ^k a � ,• x vx`.w'ta"j ffiip �d city Clerk BUWETARY R"IEWs FINANCE REVIEW: Carl rc a, D rector Manohar , D nectar Financ Department Management d.Budge t PREPARED AND APPROVED BY: r� ,3 Robert F. CLark Chief Deputy City Attorney 'A APPROVE D AS TO FORM AND CORRECTN$SS: ti } qTZ fit Attorney K `� z •' Map L +YtI=�..Y%i,lf'... r P a 9��`> t '. 1 ,rt � a ,r .la,a*�4 *�•c .,y +� t � 7�`r e � j '` '�"t'N`�t>>�'+e -�`��' 3M S .tn 9wv aa�a RESOLUTION NO. S9--83 A RESOLUTION INSTRUCTING THE CITY MANAGER TO REJECT FROM FURTHER CONSIDERATION THE PROPOSED ONE-WAY TRAFFIC CONTROL MEASURES IN THE BAY HEIGHTS/NATOMA MANOR NEIGHBORHOODS. j raUENAL Abb151ANC Janus 20 1989 '1. tTt+E OP fuBYItfK71t suns AppfCaton Identifier S. DATE RECEIVED By STATE ADNrcatoW RaaDprrCll+on -' 0 Canstr„caOn 1) Construction t. DATE RECtIV20 BY FEDERAL AGENCY Federal IdMhlw NOR Constructerl [] Non Conn►ucton i. APPLICANT WPQRM►NOM Legal Nana. — City of Miami. 0►O+^r�ahaW tin, Housing Conservation and Developrent Agency Afteu (grin City. Coun afali. are tip ewe). Name and tetephgoe rig ibar of the person tp beCanleelad an tlullele .+nRl V Dupont Plaza Center this apptiuton (pale area code) 300 Biscayne Boulevard Way, Suite 401 Mr. Jerry Gereaux, Director Miami., Florida 33131 (Dade County) (305) 579-3336 I- EMPLOTER IDENTIFICATION NUMBER 1EIN1: 1. TVPE OF APPLICANT; tenter ao"onsfe letter in bar) C ` A. Seta N V4001 rldtnus. l School G 1 C 041 I: State COnlrokid Ntttht M d NOW LVOW q C. Alufto l . J Prryate t wo"raay t TYPE OF APPLICATION 0 Township K tnd,sn T'do ® how 0 Continuation 13Revealat E. Ntaraula • L Indivi" Revision. F Unterraino M M Praia Orgamtaaoe It MIN appropriate IattM(sl In OOrfgl: ❑ ❑ 0 Spet:Ial District N. Other (Sow" A Increase Award 8 Owosso Award C Incrusa Duration 0. Deaassa Duration Ostler 1swityx i. NAME OF FEDERAL AGENCf.. U.S. Department of Housing & Urban DeVaCpnen Jacksonville Area Office It CATALOG n' MERAL DOMESTIC ASSISTANCE NUMBER a 11. DESCRIPTIVE TITLE OP APPLICANT'S PROJECT. Rental Rehabilitation 1rant Program TmE: Rental Rehabilitation Prociram Grant G r ssi.on of Procwam Description to utilize . Rental Rehabilitation Program Grant furAs' in tande M With private f inaanCim t0 i iii, .: i 12. AREAS AFFECTED ST PROJECT (titres. counties. States. OX.k City of Miami rental housing for lower, income families CDBG Target Neighborhoods 13 ►IIQPQSED PROJECT: 14. CONGRESSIONAL DISTRICTS OF Start Date Endwq Date a. Applicant : 0 Protect IS. ESTIMATED I UNDINO: 16. if AMLICATION SUBJECT TO REVIEW 01 STATE EtEC1fiVE 040012:72 0111=S8T &, a TES TMS PREAPPLICATIOWAPPL."TION WAS MADE AVAILABE.E TO THE a Federal f 00 686,000 STATE EXECIJTTVE ORDER 12372 PROCESS FOR REVIEW ON DATE D ADDucant 8 00 c State D NO ❑ PROGRAM IS NOT COVERED 8y E 0 12371 r ❑ OR PROGRAM HAS NOT BEEN SELECTED BY STATE FOR REytgW 0 LOGO f 00 ._ 3hi N Olrw 8 I Program Inane f .00 17. 15 THE APhXANT 091.0e01ANT ON ANT ► CA" KSTT [] Tate V was.•.nach an eVanaupn. 0, No } 4 TOTAL 686,000 Is. TO TrtE PEST OF MT KNOWLEOOE ANO BELIEF ALL GAU IN THIS APPLICATION ►REAPPLICAT1pN ARE TRUE AMO CORaECT. THE DOCUMENT HAS SEEM DUkV AUTNQR12E0 BT THE GOVERNING 100Y OP 1NE APPLICANT AND THE APPLICA1fT WILL COMFIT 1YfiN THE AITACIrfO ASSUR�NCLS N THE ASSISTANCE 1s4rfiRDSp a Typed Nana Of Authotlta0 Rtptestnut.w D Titte C tlelaphOne fi1Kllgat Cesar H. 0dio City Manager 305) S7_9Q; 0 Signature of Aurnorita4 R#Vsgaenteuva • D tS S�pnl¢ r repe..r Ad"IHa MIA uunr - _ AtaA _da►'- a: b ,. �;: rt:UhHAL AbW51ANC Janus 20,,1989 .vlvaa•.:.�►*itllon � - I TYt►E OF SueMISSON: 1. DATE D[carno 1Y STATi Stem ADDlfasllen wl1P111 w ADptrcahOn Pr►avotcanon ❑ Construction ❑ ConatrUCtOn a. DATE DECEIVED 1Y FEDERAL AOENCY Feerst bMhhM — Na+rot+slructon ❑ 4mr,onstructon 1. APPLICANT INFORMATION legal Wrr1! •- City of Miami AMOU f9me city. coon at&N. and rap eoaal Dupont Plaza Center 300 Biscayne Boulevard Way, Suite 401 Miami, Florida 33131 (Dade County) t. EYPLQYER IDENTIFICATION NUYIED IEINI S. TYPE OF APPLICATION: ® New ❑ Contmwten ❑ RanatOn tl Ramion. enter savowiale lottertaf in boRtesl. ❑ ❑ A Increase Award B Decrease Award C rleraasa Dwation 0 Doves" Duration OVW (atsecityl: It. CATA1.00 Ow FEDERAL DOMESTIC ASSISTANCE NUMBER a Tim. Rental Rehabilitation Prograr. Orant 12. AREAS AfFECTO BY PROJECT (VIMS. Cottntraa. atataa. etc.): City of Miami CDBG Target Neighborhoods Otponselow un". rasing Conservation and Develognent Agency Name and 191W Orle flu"t r of Iha t011sat b be E110100411 en N►ot1M1 t"Yows this *Wheaton (prve AMR COCO) Mr. Jerzy Gereaux, Director (305) 579-3336 1. TYPE ter APPUCAW; (enter ap"onato latter to Do,) �; j A State H trlpependent Schod Out. Ctanfy I • State Contrew WtttWon d Illtarer Leave C MuMaW J P+wa» Wwotany 0 TDwnYtip K Won TrIDe E. auerstals • L tndr.+duar F Inlernwri cipal M Profit Oraana11tion 0 Special 01stnet N Other (Soruh) 1. NAVE OF FEDERAL AOENCr U.S. Department of Housing & 17rban Developma Jacksonville Area Office If. DESCRIPTIVE THE OP A"MANI'S PROJECT: P.ental Pehahilitatior_ 'Irant Prograrn Gutrissjon of Prcx xcm Description to utilize Rental Rehabilitation Program Grant funds in tamden with private financing to rehabili rental housing for lower incase families Start Date Endmp Oslo a &'WI—rd : 0 Protect - 11. ESTIMATED FUNDINO 1s. IS APPLICATION SUtIJER To tIEYIEw BY STATE EXECUTIVE ORDER 12112 MOCCSS'l a YES THIS PREAPPLICATIGN/APPLtCArON WAS MADE AVAILABLE TO THE STATE E MCUTIvE ORDER 12272 PROCESS FOR REVIEW ON DATE p Gl0 ❑ PROGRAIs t5 NOT COVERED 8Y E O 12372 ❑ OR PROGtilL1A HAS NOT BEEN SELECTED BY STATE FOR REVIEW a Foderat E8E, 000 .00 0 Applteartt t c State 1 00 d local = 00 e Olne, i .DO t Ptograrn Income 2 .00 11. IS THE APPLICANT DELINOUENf ON ANY FEDERAL 011T7 ❑ Yes it -Yes,- attach an e':planati0n ❑ No o Toral = 686,000 '00 Ia. TO THE JEST OF MY KNOWLEDGE AND BELIEF ALL 041& /N THIS APPLICATIONPREAPPLICAT00% Atli TRUE AND CORRECT. THE DOCUMENT HAS SEEN DULY AUTHORIZED BY THE GOVERNING BODY OF THE APPLICANT AND THE APPLICANT TILL COMPLY WITH THE ATTACHED ASSURANCES IF THE ASSISTANCE IS AWARDED a TYDW NArne DI Aulrlonde0 Representalwe D Tlne c Tew^rw number Cesar H. Odio City Manager (305)579=6040 0 S,Qnstute of Authorized Representative a Oats S-Onea 01/13/89 O Ie.K,uf mt,ons Hof vsaoK , .1 Dr �ativ oMB '' A-IO2 ss-�z _{ �x i CITY i 01P MI ANi HwSlud CONSERVATION Aft biwotOLT, hidtv RENTAL REHABILITATION GRANT PROGRAM PROGRAM DESCRIPTION The Rental Rehabilitation Grant Program is designed to provide funds to owners of multifamily rental housing to finance improvements to their properties. To insure the availability of these units to lower income families, the Program requires that the units to be rehabilitated be occupied principally by lower income families. It further provides qualified tenants residing in the project at time of application with Section 8 vouchers to subsidize their after -rehabilitation rents to avoid displacement. =r The Rental Rehabilitation Grant Program funds are to be made available as deferred payment loans to make private sector rehabilitation financing feasible. The deferred payment loans -provided by the City will cover 50 percent of the cost of rehabilitation up to a maximum per dwelling unit calculated as follows: (1) $6,650 per unit for units with zero bedrooms; (2) $8,645 per unit for units with, one bedrooms (3) $9,975 per unit for units with two bedrooms; and (4) $11,305 per unit 1 for units with three or more bedrooms. The owner will be required to provide matching funds with -private debt or equity financing. The City's loan will be subordinated to the private rehabilitation financing mortgage. Repayment of the City's loan, which will be secured by a mortgage on the real property, will be deferred pending satisfaction of the private financing mortgage. The maximum deferral period for repayment of the City's mortgage loan will be ten (10) years or the date upon which the private mortgage loan is satisfied, which ever occurs first. In the case of private financing secured from sources other than lending institutions, a maximum deferral period of seven (7) years will be permitted. The City's .loan will bear no interest during the deferral period. The interest rate of 6% per annum will be assessed once repayment of the loan begins. To qualify for the Program's deferred payment rehabilitation loan, projects must meet the following general criteria: . To be used for primarily residential rental purposes, To have existing substandard conditions violating local minimum housing standards or Section 8 Housing Quality Standards amountingto a minimum of $2,000 per dwelling P 9 unit, 4a�� A minimum of 90 percent of the existing tenants must be lower income (See Section B), andAj,? i No permanent displacement of lower income tenants will ' occur due to the proposed rehabilitation (See Section 81. P 3 r �ry A t - ij sty M- - V _ Yes ' ., .. a .... ',E i i4 • S:'' �t— r 777 Priority COnSideration will be 0-tffor8ed t cations for prt� jects s 1 }6 Containing dwelling units of two or more bedrooms (see Section C), and . Where existing tenants are very low income (See Section D). Where the above criteria are met and the total coat Of rehabilitation exceeds the following: (1) $13,300 per unit for units with zero bedrooms, (2) $17,290 per unit for units with one bedroom, (3) $19,950 per unit for units with two bedrooms, and (4) $22,610 per unit for units with three or more bedrooms; the City of Miami will consider making a grant to the owner/applicant through its existing CDBG Multifamily Rehabilitation Loan Program to make the project feasible. The City of Miami will provide code inspection services and specification writing services to owner/applicants as well as monitor construction and disburse rehabilitation loan funds. I. OVERVIEW OF PROGRAM ADMINISTRATION A. NEIGHBORHOOD SELECTION The Rental Rehabilitation Program will be implemented exclusively in the City's eight Community Development Target Areas (See Attached Map). The median income of residents of the Target Areas is less than 80 percent of the median income for the City. Rents in the Community Development Target Areas are generally affordable to lower income families. The prevailing rents are not likely to increase at a rate significantly greater than the rate for rent increases anticipated to occur city- wide over the next five years. �- The above information is based on a review of Target Area statistics, existing City/County Program -information -and,? 1980 Census information. i B. LOWER INCOME BENEFITF 1 Based on the City's extensive experience in housing rehabilitation in the Community Development 'Target Areas there is substantial evidence to indicate that the required 100 percent lower income benefit can not be achieved. Therefore, the City proposes to accomplish .,a lower income benefit ratio of 90 percent.'1� F ' t 2.- f �P 1 i h + rir r 1 v, 9 ' f � •• �`�TTFj T f , c. D. E. ' 1 F The City-11 require all applicants 401corttfy; at the time of application, that the 90 percent lower income tenant ratio exists and further, that no lower income tenants will be permanently displaced due to the proposed rehabilitation USE OF RENTAL REHABILITATION PROGRAM FUNDS FOR HOUSING FOR FAMILIES. Priority will be given to loan applications for rehabilitation of buildings with a majority of dwelling units containing two (2) or more bedrooms. CDBG Grants to finance the cost of rehabilitation in excess of $17,500 per unit will be specifically recommended for projects with three (3) and more bedroom units to address the requirements of Section 103(c)(2) of the Technical Amendments Act. The 70 percent minimum goal required in 24 CPR 511.10(k) a_ would be unattainable, as the majority of the City's rental i housing stock is composed of efficiencies and one -bedroom units. The 1980 Census data for the City of Miami shows that 67 percent of the total number of. housing units occupied by renters•.are efficiencies and one -bedroom units. - Past experience with the ongoing CDBG rehabilitation loan program indicates that this percentage is higher (87 percent) for units in need of rehabilitation. However, the - City will strive to achieve a minimum goal of 50 percent of the units assisted under the Program to contain two (2) or more bedrooms. USE OF RENTAL REHABILITATION PROGRAM FOR DWELLING UNITS IN SUBSTANDARD CONDITION OCCUPIED BY VERY LOW INCOME FAMILIES. The City will give priority to applications for projects where existing tenants are very low income families. Applicants will be required to provide tenant income information at the time of application. This information will be verified by the City. SELECTION OF PROPOSALS 'u Proposals will be received by the Housing Conservation and., Development Agency in response to a notice of funding availability published in local newspapers of general _J; circulation., �j Proposals must contain the following information:; 1. Name and address of owner/applicant. �;✓ 2. Address of property proposed for rehabilitation.'. s 3. Evidence of site control. -3- F i �ssrn- VIA type and else of dwel.b' units propoted. far r6hab ittation. . • 86timated rehabilitation cost, before and after" rehabilitation project inet '*Psrating statements and projections. 76 Project management plan. 8. Certified rent roll. :w g• Certified statement of existing tenants' incomes. 1(�• Affirmative marketing certification. S 11. Evidence of availability of private financial resources to fund the project. F. STATEMENT OF PRIVATE FINANCING AVAILABILITY The City of Miami's experience in financing multifamily tti rehabilitation in the Community Development Target Areas indicates that private financial institutions are willing to participate in the tandem financing of multifamily rehabilitation. G. NEIGHBORHOOD PRESERVATION Implementation of the Rental Rehabilitation Grant Program in } • the Community Development Target Areas will serve to enhance r the > >- potential for neighborhood preservation by creating a Vehicle for the economic revitalization of the multifa' mil housing inventory. Several million dollars have been spent ., in each of the Target Areas in recent years with primary emphasis on improving the public infrastructure. The Rental Rehabilitation Grant Program combined with the ongoing F housing development and rehabilitation programs funded ,.1,> ,. the City through the CDBG program and other by sources will further the City's neighborhoodubimprovement improvement , sl, Al H: SCHEDULE FOR COMMITMENT OF RENTAL REHABILITATION PROGRAM FUNDS. ,. 1st Quarter: 25 percent t 2nd Quarter 50 percent 3rd Quarter 80 percent 4th Quarter. x; . 100 percent S k a z yf Stt i{{` t { �tY ! . !�f'.l 1F+'t ' h •1f. aipb I�^`S.. . 3 , pw. kY AT S -f {{ t — 2 f.� m n r•iro M t - C,t r t,c P.A Y, tY n F xI� tx + City of Miami will insure that the units that are vaeaftt after rehabilitation or that later become vacant will be affirmatively marketed according to Section S11,10 tiny i. a AWRISTRATiVE STRUCTURE Al The Rental Rehabilitation Grant Program will be administered by the City of Miami Housing Conservation and Development Agency. The Director of the Department will be !responsible for coordinating the implementation of the Program and will serve as the local contact person for HUD Area Office staff on matters pertaining to program implementation. Jerry Gereaux, Director City of Miami Housing Conservation and �f Development Agency 300 Biscayne Blvd. Way, Suite 401 Miami, Florida 33131 Telephone: (305) 579-3336`. Program operations will be the responsibility of the Assistant Director for Conservation for the Housing Conservation and Development Agency. The Assistant Director will be responsible for ensuring that the program is implemented in accordance with program regulations. Day-to-day program administration will be carried out by the Principal Housing Specialist who manages both the single and multifamily rehabilitation programs. Additional staff members of the Housing Conservation and Development Agency will be assigned on.an "as needed" basis to insure the successful implementation of the program. K. PHA PARTICIPATION IN VOUCHER PROGRAM r The City will continue to coordinate with Dade CountyHUDj as it has for the four previous program funding cycles, 'for -the administration of the Section 8 Vouchers associated with? ; this program. e L. •.CERTIFICATION Chief Executive officer 'cerCitication (enclosed,). f 47, L J tT • • :1TM yz5 � r � 4� i s a S J i 2 } E px 1{ YYY} g' v i I 7 �� 3 '+,fir f -— Ts4 • PROGRAM GUIDELMS Alan R R • �i�t�PtNl�'i0N5 a 6ppraisal - An estimate of the fair market value of a property prepared by a professionally certified appraiser. City Rehabilitation Loan - Funds provided to the property �- owner in the form of a loan for the purpose of improving the property. All such funds are secured by a mortgage instrument and the borrower(s) personal guarantee. Dwelling Unit - A residential space containing at a minimum,jw a bathroom, kitchen or kitchenette and a living } area/bedroom. Equity - The current market value of the property i.e., assessed value OR appraisal value (if available) OR purchase price (if purchased within the past 12 months), less all indebtedness secured by subject property, i.e., mortgages, liens, etc. A minimum equity of 10% is required for all projects. Multifamily Dwelling - A residential property containing f ve 5 or more dwelling units. Owner - The individual or group holding valid legal title to the property. Private Financing - Funds provided by the owner for the rehabilitation project. Monies may be obtained from a private lending institution, owner's capital or other sources. Property Rehabilitation Standards (PRS) - The minimum standards required for rehabilitation are the City of Miami Minimum Housing Code, the South Florida Building Code, and the Housing Conservation and Development Agency's Rehabilitation Specifications. Rehabilitation Cost - The total cost of a rehabilitation project to include the actual construction cost, a 10% contingency and allowable soft costs; e.g., closing costs, architect, engineering and legal fees. ? Return on Investment - The percentage of net income returned from the rehabilitation investment in relation to they owner's equity in the property and the owner's cash investment in the rehabilitation project. r" Specifications and Cost Estimate - A property inspection v report itemizing all rehabilitation work to be. done on a a property, including an estimate of the cost to '2�— repair/correct each item. � rr� - 6- Q QQ a i S _ M Target hl An aditinistrat'ivelyoNdighit*A, geogtaphic section bf the City of Miam'L"in, activities are implemented and which contains alum aridlor blighting conditions and/or the majority 6f the residents are low income. B. PROGRAM ELIGIBILITY Eligible Properties - To be eligible under the prograst proposals must meet all the following criteria: I. Multifamily residential dwellings, 2. Structures in substandard condition (not meeting P.R.S.), and 3. Structures located within Community Development Target Areas Eligible Applicants - Investor/owner (individual, not -for - profit corporation, private corporation, partnership). Eligible Improvements - Owners are required to make -repairs to meet the City of Miami Minimum Housing Code, the South Florida Building Code, and the Agency's Rehabilitation Specifications. General property improvements (non -code required) may be undertaken to the extent feasible, up to a maximum of 40% of the total cost of rehabilitation. All applicable Federal, State and local Fair Housing, Labor, Environmental and City-wide Historic Preservation regulations shall be a program requirement. - Eligible Costs - The following items are eligible to be -d in the rehabilitation loan: The actual cost of rehabilitation necessary to bring* the property in compliance with the South Florida Building Code, the City of Miami Minimum Housing Code and the Agency's Rehabilitiktion Specifications. This is the mandatory minimum work required for any loan. The cost of rehabilitation to correct or remove incipient code violations, including all physical conditions of the property which, if not -repaired, would deteriorate into actual violation of the- P.R.S. within two years. The cost of general property improvements (G.P.I.). Such improvements shall not be the major focus of the loan, and will have a maximum tu -7- 'iW w a 17 tit Of forty 00%) p��t ` ��. the ct,sti of; rs�tabilitation.inritided oily if iL 1 the minimum improvements required are satisfied and the project's financial feasibility can aocritimodate such improvements. 4, The cost of rehabilitation to convert a property# i.e., increase or decrease the number of units, is allowed provided such conversion is in accordands - with the City of Miami zoning classification for that property. 5. The cost of building permits, related fees, (including architect's, engineering and legal fees), and other soft costs including loan closing f Costs, accruals for taxes, insurance, etc., required to carry out the proposed rehabilitation c work. 6. A contingency reserve not to exceed 10$ of the cost of rehabilitation. -= { C. DISBURSEMENT OF LOAN PROCEEDS -' The City, at time of closing, will reserve the funds necessary for project completion. 1. Disbursements will be made for the following purposes: a) To make progress and final payments to the contractor; } " ' b) To pay expenses incidental to closing, and; {. c) To close out the account by appropriate r' disbursing of unutilized funds remaining in the account. t 2. Progress Payments to contractor -Upon receipt of a contractor's invoice for a progress payment, the City shall determine if the work has been performed satisfactorily, and draw payment from t the account. The Ci ty' s payment shall coincide with the owner's approval of the work and the 1 owner's payment to the contractor of the private share of the authorized payment. i 3. Final Payments to contractor - When all work is - found to be satisfactorily completed in accordance r the specifications and upon receipt of all ,.` WithL 1 Yj` S ' kF ■ ■� kEl p (ES t� f} tJ V i itY� IFJ' Qrrsr — ^ry j.stn 4 � a •'i °kr N'rilf tPj-#tom -- n • D. 17kelease of liens# warranti eta., the City will draw payment for its portio.: of the final payment. he with progress payments, the owner's approval of work and payment to contractor must coincide with the City's. In the event of a dispute between the property owner and the contractor with respect to rehabilitation work,the City shall take appropriate action in accordance with the provisions of the rehabilitation contract. Such appropriate action shall include mediation to assure the protection of both the property owner and the contractor. Mediation will be provided by the City who will inspect the work and determine if it has been performed in accordance with the contract and in a workmanlike manner. If the work has not been completed properly, the contractor will be ordered to make the necessary corrections before receiving final payment. If the contractor does make corrections as requested and the work is deemed satisfactory by the City and the property owner, final payment by both parties shall be authorized to be disbursed to the contractor. If, on the other hand, the contractor fails to make the necessary corrections prior to the expiration of his contract, the City shall assist the property owner in obtaining another contractor to make the corrections. Once corrections are made to the satisfaction of the City and the owner, the contractor that failed to perform shall be paid the balance of the funds earned by him or her remaining in the project account after the new contractor has been paid for the corrective work. Such payment shall be made upon receipt of the appropriate release of liens documents. PROPERTY MANAGEMENT Management Plan - Applicants shall submit a management plan. At a minimum this plan will include: 1. Name and qualifications of the management entity 2. f. latual and/or propo sodfor i��►�a,��mas �_ ..; ;..1, .4 Certification of no, evictions without cause for, e six (6) month period prior to the date of application. 9. WMI3ILITATION CRITERIA AND EVALUATION Proposals shall be accepted during the advertised submission period. Submitted applications shall be processed In , t44 order in which they are received. All proposals which are determined feasible will be preferenced by the dousing r Conservation and Development Agency based upon the following x factors: 1. Amount of code required rehabilitation work preference for greater amount of work. {r 2. Private funds provided for rehabilitation financing - preference for greater percentage of project cost provided by owner. Number of bedrooms - preference for projects consisting of units containing more than one (1) — bedroom. 4. Temporary tenant relocation - preference for proposals requiring no temporary relocation of tenants to carry out rehabilitation work. 5. Owner's track record - preference for proposals ' sponsored by owners who have demonstrated the # ability to complete required work in a competent and timely manner. j= =r 6. Owner's equity -preference for greater percentage of equity in project. �- 7. Not -for -Profit housing development corporations -, preference for proposals sponsored by non-profit g roups. 4 F. PROCESSING PROCEDURES Listed below are the step-by-step procedures to,be followed for each application: Phase I - Preliminary Application ;5 t } 1. Interested applicants will answer the RFP,. (placed pt_ in newspapers of general circulation) by making appointment with Agency staff.>. e h j -10 _ tl >! y f S A v t � h ■ yt �+ T 1 J r 1 M✓sir fi,w 'Kr. .',.r„ - u `` r �t r^, 3 a ■£�,yi` x�„ ��w�,T f uuu �, t x F i� d t•`ct n5 Irk !t '''.� T'��1`"�` � — tkwt 4 x q� sr rr Tr\,C 5 3Cy a#yti }$ Lr 1 an e ri e yea z 'N r r r w a nFI Y 1 y 7' r{. k. ...::.-4C��''.. •r/3,::. .. ...: = s�. . •. .. '.-s.ek svkakt 6`J+iia6L.5:7 :t. �«.. OEM a Phase ��yknai Appl icat i. Owner(a) will pay a nonrefundable final application fee in the amount of one-half (1/2) point -calculated on the preliminary City loan amount which is based on the Agency's preliminary rehabilitation cost estimate. This fee must bb received by the Agency prior to the continuation of processing of the final application. 2. Agency staff will conduct a detailed inspection of the subject property and prepare a detailed rehabilitation work write-up to include the rehabilitation cost estimate. 3. Owner(s) will provide the following documentation required to complete the loan application package: a) For legal entity: (corporation, partnership, etc.) articles of incorporation corporate resolution specifying officer(s) authorized to borrow funds b) Personal financial statement for individual as applicant OR corporate officer(s) authorized to borrow funds c) Personal guarantee from individual as I applicant OR corporate officer(s) authorized to borrow funds d) Engineer's report and plans, if necessary e) If commercial use exists as part of the property: evidence that commercial space meets minimum code OR proof of financing available for necessary rehabilitation work to correct code violations of commercial space f) For structures constructed prior to 1940 photographs of the exterior and interior of the building must be provided for the Florida Department of State to assess the property's r N: historic significance ' g) Upon receipt of rehabilitation work bidding . packages prepared by the Agency staff, owner will obtain a minimum of three (3) bids from licensed general contractors 4. Agency staff will prepare the final project { financial feasibility. _ . Hs �. -12- rx a7� ; y h 4-? �p alk _ * Ry�� 'f .t. `+fi in :�k L f :.f J. T � .. ��'i S'�•�Air- -.'F` s is }ag,1 --- a` `;may a — — - k•• ,3: 5. Upon application approv Agene staff shall ibode loan commi �ftent lett tea 6whei (s ) h It Loan Commitment i. Ownar(s), upon receipt of City's loan commitment letter, shall have seven (7) days to accept said { commi tment 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. 2. Owner will provide the final documentation required to settle the loan: a) Property insurance (with the City of Miami as Y additional insured). is b) Title insurance (with the City of Miami as beneficiary). c) Evidence of firm private financing commitment to include dollar amount, interest rate and term for private share of rehabilitation costa i I Phase IV - Loan Clnsine after ttie'�ate of completion of the',%abll,itwtion work and will occur annually thereafter - for, this,:�d+ifabi it of the loan term. A fee of $10 per unit with a minimum fee of $150 per s project will be assessed for each reinspection. if any violations are found, the property owner will be given a reasonable amount of time to correct any and all violations. Violations not corrected within the specified period of time will result in the City's recall of its loan. Moan cancellation to the case of a loan which has already been closed but monies have not been disbursed for construction, and cancellation of the transaction is requested by the owner,_ the following fees are to be levied by the City to defray I the costs associated with the City's issuance of the satisfaction of note and mortgage. 1. Owner shall pay a fee equivalent to one (1) point calculated on the City's loan amount. 2. Owner shall repay to the City any monies already - drawn down from the loan proceeds, e.g., closing costs, recordation fees, etc. 3. Owner shall pay the maximum interest allowed by law on any monies previously drawn down on the loan amount, e.g., closing costs, recordation fees, etc. Subordination After the City's rehabilitation loan has been settled and the City's mortgage recorded, the Agency upon the owner's ` request will consider subordinating the City's housing f= rehabilitation loan mortgage to a new mortgage under the following conditions: 1. The purpose of the new financing is to provide ,g private rehabilitation funds to complement the �j City's rehabilitation loan. a) The amount of this loan has been pre -approved !- by the Agency during the loan application process and the Agency has closed. its loan subject to this private financing. _ b) The request for subordination is made during the rehabilitation construction period. � .. <; i, .. .. w1 IRL ..... ._.: � t 7.... ...w wt. .. ....w .. .+..�.. .. ,..i L... wl. .. R.�.. r. w.• X i, • pill _�e amount Of tht- nevi it'` f c _.i., exceed the outstanding prindfoh -ta`lane�Y of the existing } loan(s) secured by the property and senior to the City's Mortgage. s) A $500 subordination issuance fee will be assessed by the Agency in advance to cover staff's and attorney's costs.' 3. The amount of the new financing exceeds the s, outstanding principal balance(s) of the existing loan(s) secured by mortgages senior to the City'+s Mortgage. a) The amount of the new loan, in addition to all outstanding loans secured by •the property (including the City loan), will not exceed 8©% of the market value of the property. a b) The market value of the property will be determined by an appraisal procured by the Agency. The owner will deposit with the Agency, the amount necessary to cover the cost E of the appraisal. i ►. c) A payment of 25% of any amount realized by the owner after satisfying the existing- senior mortgages, in excess of 10% of the new financing, will be required to be applied towards reducing the principal balance of the City loan. d) A fee of 1/2 point of the outstanding principal balance of the City loan will be charged in advance by the Agency to process this type of subordination. i 4. The purpose of the new loan is to -finance improvements to the property, after the City ' sponsored rehabilitation has been completed. . f a) The nature and cost of the improvements will, s require the approval of the City. i b) An advance subordination issuance fee of 1'/2 ' point of the ,7{ p principal balance of the City loan will be assessed by the Agency. ,. in addition to the policies stated herein, the following _1. will "apply to all subordination requests: t x �l h 4 j i < f. t .t: It9 i • � yF111AY .a,.4 rt,T A F �.. • Y a t Z ti x t l S"•h. �" CAS cY.ti «y. kt )t«"k •n99M,}}M 4' � ".. r» - l � ��L �rL ,rtr ��1 •f£b� CS i�`¢y'*,• r .c rp °'4 {a `�' .�: •`. S ', 1_4YAK (i5 1 •t} AZ f �, — q rt +as.hf-Ax ;N n+.•4rw. ,. ,r9dt<aypa3w*c•3 ;n- IMN% k C .t1 � ^. eYi•4: ,YP�•FF•�S'..'.i). em .r.''+. .. C.. .,.:t'.. '. ..- .. ..: .. .. i mortgage fil :. 6OttWr.:.ils":fi�i':--7CLqAt VCre e el�p lent Agency6 f� m nftum of days is required ftsf e) Gopplete disclosure of the new financing terms and conditions is required to determine meat feasibility t aximun of two (2 ) mortgage suboidthai along { will be granted during the life of ohs4,dt't' � at: �' 9f zt 1^'• fF +,F ;ty . - LL. . — _ __ _.- _ __. _ - __ ATIPIChTiONS,. �� . , I ' _ . "ilitiy Miamiertiies that: 4. --w (1) The The -submission of thin Program Descriptit� is fi authoritted under ical law, anti the City of. Miami possesses the legal authority to carry bait' 'the y __ Y.• Rental Rehabilitation Program described hetein, in accordance with 24 CPR part 511; . _ (2) The Rental Rehabilitation Program was de�ehped1. - after consultation with the public and its r description of program activities has been made available to the public; rr (3) The lower income benefit standard is hereby - reduced to 90 percent as provided by 24 CFR 511.10(a) (2). The discussion of lower income .benefit in this Program Description contains a "' Specific explanation of the reasons why this reduced benefit standard fs necessary, which f explanation complies with 24 CFR 511.10(a) (2). 1` Ii , O It will adopt a written tenant assistance policy "conforming to the requirements of 24 CFR 511.10(h) 'T, �_ (2), and such policy will be made.available to the k va I; . yc.f yr public on request; f1. -(5) It will conduct and administer its Rental z Rehabilitation Program, in conformity with "the { '" requirements of 24 CPR 511.10(m)' �? (6) It will conduct and. administer _`'its Rental' "Rehabilitation Program in accordance with, he � f I; r requirements of 24 CFR Part 511. t y}; V - 1. r ut ; i, r, Cesar Odio !�t sr, ,y ,� 6 City Manager . r t �,tk 7<x , 1. 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L ". . ,.� now ALLAOATTAM 2 n at.- V- -mb-" . .. A..A�-4 . mall as of Book raw' it W000 pow www".6ft 7-1 NEME Is rimy wo -' 6 1. LITTL FIAVANA can" aAA or—ONUT Gotcrve N, COMMUNITY DEVELOPMENT TARGET AREAS I Arta:—