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Home My WebLink AboutR-87-0620WON- J-81-584 6/26/81 RESOLUTION NO A RESOLUTION APPROVING IN PRINCIPLE THE APPLICATION OF THE FOLLOWING DEVELOPER FOR SUBMISSION BY THE CITY OF MIAMI TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR HOUSING DEVELOPMENT GRANT: DESIGN MANAGEMENT INVESTMENTS, FOR THE CONSTRUCTION OF A ONE -HUNDRED AND TWENTY-FIVE (125) UNIT ADULT CONGREGATE LIVING FACILITY. BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The application of the following developer is hereby approved for submission by the City of Miami to the U.S. Department of Housing and Urban Development for Housing Development Grant: Design Management Investments, for construction of a one -hundred and twenty-five unit adult congregate living facility. PASSED AND ADOPTED this 25th AT S MA TY HIRAI CITY CLERK PREPARED AND APPROVED BY: ROBERT F. CLARK CHIEF DEPUTY CITY ATTORNEY _ day of June 1987. XAVIER L. SUA99Z, MAYOR 1 AS TO FORM AND CORRECTNESS: CITY ATTORNEY RFC:bss:M470 CITY CVIIAISS ON NEETIhC Or JUN 25 1987 ON No. — CI TY OF MIAMI. FLORIOA 36 INTER -OFFICE MEMtiRANOUM To. Honorable Mayor and Members of the City Commission FROM: Cesar H. Odlo City Manager RECOMMENDATION: DATE: J U N 1 71987 PLC SUbJECT: Resolution Approving Submission of Housing Development Application(s) REFERENCES: City Commission Agenda Item - June 25, 1987 ENCLOSURES: It is respectfully recommended that the City Commission adopt the attached resolution approving in principle the Housing Development Grant applications of the following developers for submission by the City of. Miami to the U.S. Department of Housing and Urban Development for federal assistance under the Housing Development Grant Program. BACKGROUND: On May 14, 1987, the U.S. Department of Housing and Urban Development announced the availability of funding in the amount of $99,550,000 under the Housing Development Grant Program (HDG) and established a proposal submission deadline of July 7, 1987. Through the Housing Development Grant Program, U.S. HUD will provide financial assistance to local governments to assist in financing construction or rehabilitation of rental housing. U.S. HUD will provide assistance for projects containing at least twenty (20) and no more than two hundred (200) dwelling units. HDG funds may be used to provide grants, loans, interest reduction payments or other forms of assistance to developers for the construction or substantial rehabilitation of rental housing in which at least twenty percent (20%) of the units will be occupied by lower income households. The City of Miami has been determined by U.S. HUD as an area that is experiencing a severe shortage of decent rental housing opportunities for families and individuals without reasonable and affordable housing alternatives in the private market place. As a result, the City is eligible to participate and apply for funding assistance under the HDG Program. The City, acting as the applicant for a developer, is required to submit a separate application for each project which it seeks to have funded under the Program. 8 "Or -sz(). Submission of Housing Development Grant Application(s) Page - 2 - U.S. HUD has established an application deadline of July 7, 1987, which places an extreme burden both on local government and private developers in meeting the extensive application preparation, review, and submission requirements. Due to U.S. HUD's application deadline of July 7, 1987, it was necessary to require all developers to submit their application to the City of Miami on Friday, June 12, 1987. As a result, two applications were received from private developers interested in securing federal assistance in developing rental housing projects in the City. As the City Commission must act on all applications received at the Commission meeting of June 25, 1987, in order to meet L•.S. HUD's submission deadline, it has been necessary to allow interested developers less than thirty (30) days to prepare project applications and staff only one (1) week to perform the HUD mandated local review. However, given the extreme need for affordable rental housing in the City, it is my recommendation that this item be included for City Commission consideration at their meeting of June 25, 1987, for :he purpose of considering the two (2) Housing Development Grant applications staff has determined eligible for submission. The exhibits accompanying the attached resolution provides a summary of the two rental housing developments which are being recommended for submission to the U.S. Department of Housing and Urban Development for federal assistance under the Housing Development Grant Program. It is recommended that City Commission adopt the attached resolution. 8 7 -62( City of Miami EXHIBIT 1 Housing Development & Conservation Agency Housing Development Grant Application Residential Plaza at Blue Lagoon Project Name Residential Plaza at Blue Lagoon Project Location Project Description Percentage of units , number of rooms affordable to Very Low income persons. Projected Room Rents Project Developer Total Project Cost Average Cost per Room HODAG Request Type of Financing Sources of Other Financing Private Leverage Ratio Estimated City Taxes t Northwest 57 Avenue & 7 Street An Adult Congregate Living Facility(ACLF) housing 500 people in a 14 story building including community rooms, a dining room, and an around the clock nurse. 40% , 200 rooms Low Income Rooms $93 a month Market Rooms $137 a month Design Management Investments 11410 North Kendall Drive Suite 101 Miami, Florida 33176 $10, 660, 000 $21, 320 $4,650,000 Loan: Payments Years 1 - 5 0% Interest $0 Years 6 - 15 1% Interest Only $46,500 Years 16 - 20 2% Interest Only $93,000 Years 20-30 2% Principal Only $100,000 Year 31 Balloon Payment $1,371,500 Year 31 $2,278,500 Forgiven $0 Owner Equity Debt Financing 1.29:1 $91, 880 $1, 360, 000 $4, 650, 000 3 8': �-620, f City of Miami EXHIBIT 2 Housing Development & Conservation Agency Housing Development Grant Application Congress Building Rehabilitation & New Construction Project Name Congress Building Rehabilitation & New Construction Project Location Northeast 2 Avenue & 1 Street Project Description Rehabilitation of an existing building resulting in a total of 148, one and two bedroom, rental units and 5368 square feet of first floor commercial area, and parking area. Percentage of units , number of 30.6% , 45 units units affordable to Very Low income families. Projected Unit Rents Low Income Rents $220/$268 a month Market Rents $690/$810 a month Project Developer Winn Development Company 1620 I Street Suite 611 Washington D.C. 20006 Phone 202 - 833 - 2100 Total Project Cost $15,217,405 Average Cost per Unit $103,964 HODAG Request $7, 405, 450 Type of Financing Loan: Payments Years 1 - 20 Simple Interest at 1 % $0 Year 21 Balloon Payment $8,886,540 Sources of Other Financing Owner's Equity $1,673,969 Other Sources: City Loan $500,000 TAXABLE Mortgage Backed Bonds $7,387,254 Private Leverage Ratio 1.29:1 Estimated City Taxes $149,739 L/ S 7 -620. i • • 6/17/87 RESOLUTION NO. A RESOLUTION APPROVING IN PRINCIPLE THE APPLICATIONS OF THE FOLLOWING DEVELOPERS FOR SUBMISSION BY THE CITY OF MIAMI TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR HOUSING DEVELOPMENT GRANTS: DESIGN MANAGEMENT INVESTMENTS• FOR THE CONSTRUCTION OF A ONE HUNDRED AND TWENTY FIVE (125) UNIT ADULT CONGREGATE LIVING FACILITY; WINN DEVELOPMENT COMPANY, FOR THE REHABILITATION AND CONSTRUCTION OF A ONE HUNDRED AND FORTY EIGHT (148) UNIT RENTAL HOUSING PROJECT AND 5,368 SQUARE FEET OF COMMERCIAL SPACE. BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The applications of the following developers are hereby approved for submission by the City of Miami to the U.S. Department of Sousing and Urban Development for Housing Development Grants: Design Management Investments, for construction of a one hundred and twenty-five unit adult congregate living facility; and Winn Development Company, for the rehabilitation and construction of a one hundred and forty-eight unit rental housing project and 5,368 square feet of commercial space. S PASSED AND ADOPTED thin clay of 1987. XAVIER L. SUAREZ, MAYOR ATTEST: MATTY HIRAI, CITY CLERK PREPARED AND APPROVED BY: ROBERT F. CLARK CHIEF DEPUTY CITY ATTORNEY APPROVED AS TO FROM AND CORRECTNESS: