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HomeMy WebLinkAboutR-88-0529J -88=557 5/26/88 RESOLUTION NO. A RESOLUTION APPROVING IN PRINCIPLE THE ESTABLISHME14T OF A HOML PURCHASE FINANCING LOAN POOL FOR THE PURPOSE OF PROVIDING AFFORDABLE HOME PURCHASE FINANCING FOR QUALIFIED, LOW AND MODERATE. INCOME PURCHASERS OF THE TOWNHOMES PROPOSED FOR DEVELOPMENT ON THE PUBLICLY OWNED MELROSE NURSERY SITE: BY MELROSE TOWNHOMES, INC. A NOT -FOR -PROFIT HOUSING DEVELOPMENT CORPORA'I`ION, SUBJECT TO CERTAIN TERMS AND CONDITIONS; FURTHER ALLOCATING $1,500,000 IN INTE:RE;ST INCOME FROM THE 1976 GENERAL OBLIGATION HOUSING BOND TO FUND THE LOAN POOL. WHEREAS, in January of 1987, the City Commission through Resolution No. 87-82, designated Melrose Townhome Development, Inc., a not -for -profit housing development corporation, as sponsor for the development of a 153 unit townhome complex on the publicly -owned Melrose Nursery site located in the Allapattah neighborhood; and WHEREAS, the City Commission's designation of Melrose Townhomes, Inc., as sponsor of the project was contingent, among other things, upon the corporation's ability to secure second mortgage home purchase financing for low and moderate income purchasers through Metropolitan Dade County's Documentary Surtax financed Homeownership Assistance Loan Program; and WHEREAS, Melrose Townhomes, Inc., has been unable to obtain the second mortgage financing required to make the townhomes affordable to low and moderate income purchasers through Metropolitan Dade County's Documentary Surtax financed Homeownership Assistance Loan Program; and WHEREAS, a consortium of local financial institutions through Homes for South Florida, Inc., has tentatively agreed to provide the necessary first mortgage financing to qualified low and moderate income purchasers for this project; and WHEREAS, the consortium's tentative commitment for first mortgage financing is conditioned on the availability of second mortgage financing for the Melrose Nursery housing project; and CITY COWIISSI0i�1 1 MEETING OI' JUN 991938 [SOLUTION No _88-752 AO J=88=557 5 / 2 6/88 #14� RESOLUTION NO. `- A RESOLUTION APPROVING IN PRINCIPLE THE ESTABLISHME14T OF A HOML PURCHASE FINANCING LOAN POOL FOR THE PURPOSE OF PROVIDING; AFFORDABLE HOME PURCHASE FINANCING FOR QUALIFIED, LOW AND MODERATE INCOME PURCHASERS OF THE TOWNHOMES PROPOSED FOR DEVELOPMENT ON THE PUBLICLY OWNED MELROSE NURSF,RY SITE BY MELROSE TOWNHOMES, INC. A NOT -FOR -PROFIT HOUSING DEVELOPMENT CORPORATION, SUBJECT TO CERTAI14 TERMS AND CONDITIONS; FURTHER ALLOCATING $1,500,000 IN INTEREST INCOME PROM THE 1976 GENERAL OBLIGATION HOUSING BOND TO FUND THE LOAN POOL. WHEREAS, in January of 1987, the City Commission through Resolution No. 87-82, designated Melrose Townhome Development, Inc., a not -for -profit housing development corporation, as sponsor for the development of a 153 unit townhome complex on the publicly -owned Melrose Nursery site located in the Allapattah neighborhood; and WHEREAS, the City Commission's designation of Melrose Townhomes, Inc., as sponsor of the project was contingent, among other things, upon the corporation's ability to secure second mortgage home purchase financing for low and moderate income purchasers through Metropolitan Dade County's Documentary Surtax financed Homeownership Assistance Loan Program; and WHEREAS, Melrose Townhomes, Inc., has been unable to obtain the second mortgage financing required to make the townhomes affordable to low and moderate income purchasers through Metropolitan Dade County's Documentary Surtax financed Homeownership Assistance Loan Program; and WHEREAS, a consortium of local financial institutions through Homes for South Florida, Inc., has tentatively agreed to provide the necessary first mortgage financing to qualified low and moderate income purchasers for this project; and WHEREAS, the consortium's tentative commitment for first mortgage financing is conditioned on the availability of second mortgage financing for the Melrose Nursery housing project; and CITY COM IISSIODT MEETUNTC OI' JUN 99 1938 ESOLUTION Nu. C?C7pp"7`729 EMARKS! WHEREAS, second mortgage financing such as that available through the Surtax program is established in order to bring the mortgage related carrying costs of homeownership within the affordability range of low and moderate income families; and WHEREAS, a solution to this dilemma is available through the use of a portion of the unallocated interest income generated from the City's 1976 General Obligation Housing Bond issue; and WHEREAS, approximately $1,500,000 in second mortgage financing will be required in order to make the townhomes affordable to low and moderate income families; and WHEREAS, sufficient funds are available to establish a home purchase financing loan pool for the purpose of providing affordable home purchase financing for qualifiers low and moderate income purchasers of the townhomes proposed for development on the publicly -owned Melrose Nursery site by Melrose Townhome, Inc.; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Commission hereby approves in principle the establishment of a home purchase financing loan pool for the purpose of providing affordable home purchase financing for qualified low and moderate income purchasers of the townhomes proposed by Melrose Townhome, Inc., subject to certain terms and conditions. Section 2. Funding in the amount of $1,500,000 is hereby allocated from interest income derived from the 1976 General Obligation Housing Bond to fund the said loan pool. - 2 - AB-529 PASSED AND ADOPTED this 9th__ day of June_ _► 1988, A`I" I'EST : *v 4 0�—- MATTY ffIRAI, CITY CLERK PLANNING REVIEW: SERG RIGUEZ, DIRECTOR PL �I DEPARTMENT FINANCE REVIEW: I0S GARCIA, DIRECTOR FINA ICE DEPARTMENT LEGAL REVIEW: -�z 4�-t , ROBERT F. CLARK CHIEF DEPUTY CITY ATTORNEY APPROVED AS TO FORM AND CORRECTNESS: JORG L. F ANDEZ CITY TTORNEY - 3 - XAVIER L. SUAR , MAYOR BUDGETARY REVIEW: (11 AAeeAA� y- drr — MANOHAR SURANA, DIRECTOR DEPARTMENT OF MANAGEMENT AND BUDGET 88--529 a •6 67 CITY OF MIAM1. FLORIDA INFER-OFWICE MEMORANDUM -O Honorable Mayor and Members of the City Commission �i FROM Cesar H. Odi o City Manager RECOMMENDATION DATE i V N i 1986 FILE. SUBJECT Recommendation Tor Melrose Townhome Home Purchase Financing Pool REFERENCES: City Commission Meeting ENCLOSURES. June 9, 1988 It is respectfully recommended that the City Commission adopt the attached resolati-)!i ,iopr.oving inprinciple the establiyhm:i(It c)f 3 home purchase financing loan pool for the purpose of providing affordable home purchase financing for qualified, low and moderate inc,3ine )txrchasers of the townhomes prop.)9:d For development on the publicly owned Melrose Nursery site by Melrose Townhomes, Inc., a not -for -profit housing dev`l�:�pment corporation, subject to cert.3ia tl!rms and conditions; further allocating $1, 500, 000 in interest income from tee 1976 general obligation Housing Boni to fund the loan pool. BACKGROUND The Housing Conservation and Development Agency recommends ratification of the attached resolution approving in principle the establishment of a home purchase financing loan pool for the purpose of providing affordable home purchase financing for qualified, low and moderate income purchasers of the townhomes proposed for development on the publicly owned Melrose Nursery site by Melrose Townhomes, Inc., a not -for -profit housing development corporation, subject to certain terms and conditions; further allocating $1, 500, 000 in interest income from the 1976 gane ral obligation Housing Bond to Errol the loan pool. In January of 1987, the City Commission through Resolution 87-82, designated Melrose Townhomes, Inc., a not -for -profit housing corporation, as sponsor for I:ie development of a 153 unit townhome complex on the publicly owned Melrose Nursery site located in the Allapattah neighborhood. The City Commission's design.;: i,)n of Melrose Townhomes, Inc., as sponsor of the project was contingent, among other things, upon the corporation's ability to secure second mortgage home purchase financing for low and moderate income purchasers through Metropolitan Dade County's Documentary Surtax financed Home Ownership Assistance Loan Program. 88-525 0 , 6 Despite innumerable attampt:s, Melrose Townhomes, Inc., has been unable to obtain the second mortgage financing required to make the townhomes affordable to low and moderate income purc1(na5,?ts through the "Surtax" program. While a consortium of local financial institutions through Homes For South Florida, Inc., has tentatively agreed to provide the necessary first mortgage loans to qualified low and moderate income purchasers, second mortgage financing such as that available through the "Surtax" program is essential in order to bring the mortgage related carrying costs of home owns-icyliil) within the affordability range of low and moderate income families. The corisortium's tentative commitment is conditioned on the availability of such financing. A solution to this dilemma is available through the use of a portion of the unallocated interest income generated from tine City's 1976 general obligation Housing Bond issue. This interest income can be used to fund the required second mortgage loans in lieu of "Surtax" funding. Approximately $1,500,000 in second mortgage financing will be required in order to* make the townhomes affordable to low and moderate income families. It is respectfully recommended that the City Commission adopt the attached resolution approving in nri nni nl e t be establishment of a home purchase financing loan pool for the purpose of providing affordable home purchase financing for qualified, low and moderate income purchasers of the townhomes proposed for development on the publicly owned Melrose Nursery site by Melrose Townhomes, Inc., a not -for -profit housing development corporation, subject to certain terms and conditions; further allocating $1,500,000 in interest income from the 1976 general obligation Housing Bond to fund the loan pool. 88-528