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HomeMy WebLinkAboutR-86-08401 J- 86-895 RESOLUTION NO. ` W A RESOLUTION APFROVI N(37 I r ;_.rt'rh'TATION OF A CITE' SPOFSOPT n SCATT TRFD SITE AFFORDAPT-T H011ST117G D17AIFLOPM4ENT PROGRAM IN THE CITY' F COP;1't?NITY DEVELOPME1,7T TAPC=1'7 PF?:G FOR THE PURPOSE OF PPOP1!CI NG S I"GI.,t; FAMILY HOMES WJ T HJN THE AFFORDAPIT,ITY RANGE OF QUALI F J r D I..0W AND MIODFRATF INCOME PURCHASERS; FURTHER AUT140RIZ3NG THE CITY MANAGER TO PROCEED I1� SECURING APPRAISALS OF HOM'FSITrS, WJTH I141TIAL EMPHASIS 114 THE AI_,LAPATTAH, VXjr WOOD, MODEL CITY A14D OVERTOkdt.' TARGET AREAS AND DESIGJJATING PREVIOUSLY APPROPRIATED IITH YEAR COMMUNITY DEVELOPMENT LAND ACQU I S I TI O1J FUNDS IN THE AMOUNT OF $1,000,000 TO COVER THE COST OF SAID HOMESITE ACQUISITION. WHEREAS, there exists a shortage of housing in the City of Miami affordable to families and individuals of low and moderate income; and WHEREAS, the shortage of housing affordable to the City's low and moderate income families has an. adverse affect on the overall social and economic stability of the City's neighborhoods; and WHEREAS, the future growth and stability of the City's neighborhoods is, in part, dependent upon the provision of new homeownership opportunities to low and moderate income families; and WHEREAS, since 1974, federal Community Development funds have been spent by the City to improve the living quality of Miami's predominately residential Community Target Areas in an effort to encourage maintenance and growth of private investment; and WHEREAS, it is clear that new affordable homeownership opportunities in the City's Community Development Target Areas must be created in order to achieve an increase in the incidence of owner -occupancy of the target area housing stock; and WHEREAS, implementation of a City of Miami sponsored Scattered Site Affordable Housing Development Program would increase the supply and affordability of homeownership housing in the City's target areas; 11 SIT Cd ISSI N: MEETING OF I + 4 NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. Implementation of a City -sponsored Scattered Site Affordable Housing Development Program in the City's Community Development Target Areas for the purpose of producing single family homes within the affordability range of qualified I low and moderate income purchasers is hereby approved. Section 2.. the City Manager is hereby authorized to proceed in securing appraisals of lhomes .tes with initial emphasis in the Allapattah, Wynw,00d, Model City and Overtown target areas for the purpose of implementation of the Program. Section 3. Eleventh Year Community Development Block Grant land acquisition funds in the amount of $1,000,000 previously authorized by the City Commission is hereby designated to fund the cost of said homesite acquisition, PASSED AND ADOPTED this 23rd day of October , 1986. ATTES av er L. Suar z Mayor = Matty Hirai, City Clerk PREPARED AND APPROVED BY: Robert F. Clark Chief Deputy City Attorney 1 .e CITY OF MIAM1, FLORIDA INTER -OFFICE MEMORANDUM ra: Honorable Mayor and VArIE' 0 CT 1 61982 nL[, Members of City Commission 9UOJWCT Scattered Site Affordable Housing Development Program rRom: Cesar H. Odio REFEREMCF9,•Ci t y Commission Agenda City Manager October 23, 1986 ENCLOSLIPFF it is recommended that the City Commission adopt a Resolution approving implementation of a City - sponsored, Scattered Site housing Development Program in the City's Community Development Target Areas for the purpose of producing single family homes within the affordability range of low and moderate income purchasers; further authorizing the City Manager to proceed in securing appraisals of homesites with initial emphasis in the Allapattah, Wynwood, Model City and Overtown Target Areas and designating previously appropriated llth Year Community Development land acquisition funds in the amount of $1,000,000 to cover the cost of said homesite acquisition. Since 1974, over $95,000,000 in federal Community Development funds have been spent to improve the living quality of Miami's predominately residential Community Development Target Areas in an effort to encourage maintenance and growth of private investment. Streets have been upgraded, new parks and recreational facilities have been built, efforts to stimulate neighborhood level economic development have been undertaken, and below market rate home improvement financing is being provided to Target Area homeowners. While substantial progress is being made in encouraging private investment in the Target Areas, much work remains to be done if the City's neighborhood stabilization objectives are to be realized. Most experts agree that one of the keys to long-term neighborhood stability is owner -occupancy of the neighborhood housing inventory. However, the carrying costs associated with the I r Honorable Mayor and Members of City Commission page 2 purchase of a home in the Target Areas is substantially beyond the economic reach of most target area residents. A median priced home in Mia.mi requires an annual income of about $35,000 to sustain. The median family income of Target Area families is substantially below this figure. The majority- of target area families have annual. incomes of less than c243,0(10, sufficient to support the monthly mortgage related costs of a home in the $50,000 price range and few homes in the Target Areas are priced within this range.. It is clear that new affordable homeownership opportunities in the Target Areas must by created in order to achieve an increase in the incidence of owner -occupancy of the housing stock. To realize this objective, it is recommended that the City of Miami implement a City -sponsored scattered site Affordable Housing Development Program with initial emphasis in the production of single family homes in the Wynwood, Allapattah, Model City and Overtown neighborhoods. In brief, the program will entail: Acquisition, by the City of vacant and underutilized single family homesites scattered throughout the Target Areas. The development of single family homes on the acquired homesites by builders retained by the City and selected through a public competition. Sale of the homes, by the City, to qualified low and moderate income families selected through a public lottery. $1,000,000 in Community Development Block Grant Funding previously authorized by the City Commission for housing land acquisition is available to fund the cost of homesite acquisition. The Housing Superfund will be used to fund the cost of building the homes. Proceeds of the sale of the homes to be built will be returned to the land acquisition fund and the Housing Superfund to be used on a revolving basis to produce additional affordable housing in the Target Areas. Sufficient land acquisition funding is available to acquire sites for the development of approximately fifty homes during Phase I of the Program. City Commission approval of the proposed program is recommended.