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Home My WebLink AboutM-83-0900A olk _O Howard V. Gary City Manager rRoM Dena Spillman Director Community Development CITY OF MIAMI. FLORIOA INTER -OFFICE MEMORANDUM DATE: September 20, 1983 FILE. SUBJECT Community Development Float Guidelines - Commission Agenda, 10/13/83 - Committee of the WholE REFERENCES ENCLOSURES. On April 1, 1982, the City Commission approved, in concept, a $5 million Community Development Float program as part of the eighth year Community Development program. The intent of this program was to create a system whereby additional revenues could be generated for Community Development programs while expediting eligible Community Development projects in the private sector by providing below -market rate interest. The Community Development Float funds can only be used as an interim financing tool (less than a year) for projects that are eligible under Community Development, and projects developers can obtain an irrevo- cable letter of credit guaranteeing the funds. Proposal selection will be based on benefits to the public that will be produced by the project. Items that will be considered, are: a) Removal of slum and blight b) Generation and creation of jobs c) Public amenities associated with the project. Furthermore, the guidelines specify that only projects in the CD target areas will be elicible for consideration. Enclosed for your review and approval are the Guidelines For the Community Development Float program. /cr encl. /NorioN e3-90c CC:-NUNITY DE'l.'ELOPMENT BLOC X CONSTP.UCTIC"N IFINANCI:iG P-ICGR=M on April 1, 1982, the Cit.. Commi3s.Lon approved the 8th Year i...al Statement for the City of Miami's .cmmunit•: Development 310c:' Grant (C=3G) . The ;Ian was subsequently acce-,_ed _ the Deaartment of Housing & Urban Development (HUD) on .:une 15, 1932. One of the unique features of the 8th %year program is that the City is allowed to initiate a local Community Development Construction :inancinc ?roara.;�. This program presents an opportunity for the Cit. to lend aoproximately five million dollars of its unencumbered CDBG funds to provide interim financing to contractors and developers up to twelve months at below -market rates. The loans are to be used as interim financing; .or either new construction or rehabilitation of residential, ccr;_mercial, or industrial projects. The projects must :.e located; in Community Development target areas and substantially benefit low or moderate income residents. n order to qualify, developers ::ill ::a require: to prcduce a- .:ncor:ditioral and irrevocable letter of' credit _rom a L-an.-. made payable to the Cit•i of Miami. T:,is letter of credit will sw�a.;ard the C: y' s funds and will '-e utili-ed in the e :•,3nt the borrowed mcnies are needed for am• other CDBG activity 'before the anticipated rCC7ram income is real_z3d. "..".e city o_ _ mi will lend t::c. _uncs direselac".,. ievelcpers :or eligi'21a Ccmmunity Levelo-ment prc-acts. "� IDE`.I"'4ES r Cc� CC,'IMUNIL . c DE , �:...u:. G:I, _ 1. Areas of E11Qlbill�" The aroas of P_�.r:.b.lit'r •lill be d to the Community Development Neiahborr.cad tarQp-t areas of the City of :liami as described in yttach.nnent A. �. Lean Amount: The maximum amount Of ava'_labla financln; is five million dollars, and the City of Miami will not accept prc- oosals below $100,000. ;. Interest Rate: The interest rate on the construction lean will be three percent below prime or an interest rate of 53, whichever is higher. 4. Recui_emeats of Proposal: a) Description of construction or rehabilitation project. b) Development timetable. c) Identification of bank that will provide permanent irarcing . d) nt_cipated drawdown schedule. e) sene=its to public as a result of project. 5. Criteria =cr Selection: Proposal selection will be based on benefits to the public that will be produced by this project. Items that will be considered, are: a) Removal of slum and blight. b) Generation and creation of jobs. (Construction and permanent jobs created). c) Public amenities. Projects that are approved by the City under the public benefit criteria w'__1 also be evaluated on their development tima- tabl:: and drawdown .hedule in the Cit_.•'s atte:^.pt tc maximize the use of our limizad resources under c:is program. FZORI•�I O- A v. Contract Recuirements: a) Irrevocable and unconditional letter of credit in an amount equal to the loan. b) The maximum period of the loan may not exceed one year, and the loan is callable at any time by the City during the period for any reason except to use the proceeds to make a similar loan to another private developer, c) All laborers and mechanics employed by contractors Jr subcontractors in the performance of construction work- financed in ;+Thole or in cart with this loan shall be raid :cages in tha local;t_; as determined by the Secretar.• of Labor in accordance :with the Davis -Bacon -Not. d) Compliance with the Cit. 's minority procurement ordinance. This ordinance will be applicable to contractors, su-- contractors, laborers, mechanics, and other personnel or ccmpanieS related to any work financed in whole or in part by the Float Procram. e) The prc ject :gust comnply with all federal, state and local laws that may be applicable to this project. 7. C"=,,=oScf `SaIection Ccrn 'tt e: The Selection Committee wi-1 be comprised o: at least the following participants. a) Director of the Department of Cem.^:un'_ty Develocment b) Director of the Department of Rcono.mic Develcnmen` c) Director of Finance d) City Manager e) Minority Procurement Compliance Officer. All loans approvad will be awarded subject to HUD's approval and release of funds floc the pro3act. ^he developer has ninet•: G;avS _rom accroval to obtain all necessary recuirements Ter elcsinc; not, approval of the loan will 'e cancelled. Ow U Termination or Cancellation off -Loan 'if ter ?,:yard The contract can be terminated for any breach of contract reQuirement, including failure to provide proper documentation in relation to wages paid under the Davis -Bacon tict. If the ccntract is terminated for any reason other than breach of contract, an cicsina fee paid by the borrower shall be pro -rated for the p er-od e 1.�,n has been out -standing. 4. 83 -9000 u Ok .,1 TAC:::'lENT A • V r r � • r r - ■ • � r � I ( I '�• t` 1 • •� i II I MVER 'I i 4--canl =.y j t _ •• s t �• �� is {� � i � . 1 • ■ 1 I I ,.,a I I .�� i •• Be of ;- - -- .Am �.Y..... _ wcco ■. to tr �ALLAPATTAH 2, I 1 ,ji moto if w • ■ ...al �� I f IT ON Io .�. OVL"RTOWN • "Q j� • i V I irr.w ' I DOWNTOWN I • ,. UTTLE HAVANA i = (� 1 `•� I a I ZIP see 611i n 1 � 14600 i 83-9001 U U w CITY OF MIAMI. FLORIDA INTER -OFFICE MEMORANDUM -o Howard V. Gary Citly Manager CROM Dena Spillman Director Community Development OArc August 18, 1983 WILE: SUBJECT: Community Development Float Guidelines REFERENCES: ENCLOSURES: Enclosed is a memo requesting your approval of the attached guidelines "or the Community Development Float program. You indicated in the past that you would like the guidelines presented to the City Commission for their review prior to implementation. All changes you requested have teen included. Your latest comment on this matter was whether the City Commission had approved the new policy targeting funds to Community Development target areas; no, it has not been approved. The guidelines as written, however, limit the areas of eligibility to Community Development target areas. /or encls. 83--9001 1 CITY OF MIAMI. FLORIDA INTER -OFFICE MEMORANDUM -o Howard V. Gary City Manager `ROM Dena Spillman, Director Community Development DATE: August 16, 1983 MLE: SUBJECT Community Development Float Guidelines - City Commission Agenda, 9/7/83 - Committee of the Whole 4EFERENCES: ENCLOSURES: On April 1, 1982, the City Commission approved, in concept, a $5 million Community Development Float program as part of the eighth year Community Development program. The intent of this program was to create a system whereby additional revenues could be generated for Community Development programs while expediting eligible Community Development projects in the private sector by providing below -market rate interest. The Community Development Float funds can only be used as an interim financing tool (less than a year) for projects that are eligible under Community Development, and projects develelopers can obtain an irrevocable letter of credit guaranteeing the funds. Proposal selection will be based on benefits to the public that will be produced by the project. Items that will be considered, are: a) Removal of slum and blight b) Generation and creation of jobs c) Public amenities associated with the project. Furthermore, the guidelines speci'y that only projects in the CD target areas will be eligible for consideration. Enclosed for your review and approval are the Guidelines for the Community Development Float program. /cr enc- . 83-9001 40 Ak COMMUNITY DEVELOPMENT BLOCX GRANT CONSTRUCTICN FINANCING PRCGRAM Cn April 1, 1982, the City Commission approved the 8th Year Final Statement for the City of Miami's Community Development Block Grant (CDBG). The plan was subsequently accepted by the Department of Housing & Urban Development (HUD) on June 15, 1982. One of the unique features of the 8th year program is that the City is allowed to initiate a local Community Development Construction Financing Program. This program presents an opportunity for the City to lend approximately five million dollars of its unencumbered CDBG funds to provide interim financing to contractors and developers up to twelve months at below -market rates. The loans are to be used as interim financing for either new construction or rehabilitation of residential, commercial, or industrial projects. The projects must be located in Community Development target areas and substantially benefit low or moderate income residents. In order to qualify, developers will be required to produce an unconditional and irrevocable letter of credit from a bank made payable to the City of Miami. This letter of credit will safeguard the City's funds and will be utilized in the event the borrowed :ponies are needed for any other CDBG activity before the anticipated rrocram income is realized. The City of Miami will lend the funds directly to selected developers for eligible Community Development projects. 83-9001 AOW GUIDELINES FCR COM:4 LAITY DEVELOPMENT FLOAT 1. Areas of Eligibility: The areas of eligibility will be limited to the Community Development Neighborhood target areas of the City of Miami as described in Attachment A. 2. Loan Amount: The maximum amount of available financing is five million dollars, and the City of Miami will not accept pro- posals below $100,000. 3. Interest Rate: The interest rate on the construction loan will be three percent below prime or an interest rate of 5%, whichever is higher. 4. Requirements of Proposal: a) Description of construction or rehabilitation project. b) Development timetable. c) Identification of bank that will provide permanent financing. d) Anticipated drawdown schedule. e) Benefits to public as a result of project. 5. Criteria for Selection: Proposal selection will be based on benefits to the public that will be produced by this project. Items that will be considered, are: a) Removal of slum and blight. b) Generation and creation of jobs. (Construction and permanent jobs created). c) Public amenities. Projects that are approved by the City under the public benefit criteria will also be evaluated on their development time- table and drawdown schedule in the City's attempt to maximize the I of our limited resources under this prcgram. 2. 83-900 o. Contract Requirements: a) Irrevocable and unconditional letter of credit in an amount ecual to the loan. b) The maximum period of the loan may not exceed one year, and the loan is callable at any time by the City during the period for any reason except to use the proceeds to :Hake a similar loan to another private developer. c) All laborers and mechanics employed by contractors or subcontractors in the performance of construction work financed in whole or in part with this loan shall be paid wages in the locality as determined by the Secretary of Labor in accordance with the Davis -Bacon Act. d) Compliance with the City's minority procurement ordinance. This ordinance will be applicable to contractors, sub- contractors, laborers, mechanics, and other personnel or companies related to any work financed in whole or in part by the Float Program. e) The project must comply with all federal, state and local laws that may be applicable to this project. 7. Cc=osition of Selection Committee: The Selection Committee will be comprised of at least the following participants: a) Director of the Department of Community Development b) Director of the Department of Economic Development c) Director of Finance d) City Manager e) Minority Procurement Compliance Officer. All loans approved will be awarded subject to HUD's approval and release of funds for the project. The developer has ninety days from approval to obtain all necessary requirements for closing; if not, approval of the 'loan will be cancelled. 83-w(). Termination or Cancellation of Loan aster award The contract can be terminated for any breach of contract requirement, including failure to provide proper documentation in relation to waves paid under the Davis -Bacon act. If the contract is terminated for any reason other than breach of contract, any closing fee paid by the borrower shall be pro -rated for the period the loan has been outstanding. 4. APW a. t CU 1 t m W