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HomeMy WebLinkAboutR-81-0609g -609 itrAtv6ti *hd* ih M16 v.0tit tlie Citq Atid the ha :.tpebid that tut:h fly Pfir c�ti'tIeiEidh may, bd .ovId �ittod ih i'he `tdf(h dt u EiEuEh d hibi` chichi updti Initialth� bv'thly Aoth6t0cd 0 d t 611 fLip'dohtmg the amik Acid the 241, CiLy, slAl bitoino p�i�E sErati� 'dthe dxtii'bit sd rd.ptdtred 2041 Without tidtostity tit Euttlicir AtbOhdmrttt''l0fetib, 081 w609 I�f I Howard V, CA y Mine 24r 198t i City Manager i <.3 resolution authorizing City Manager to enter an agreement with Dade Savings and Loan ,_ Association for the deposit Dena Spillman "` of Community Development ;D.irector, Department of Funds Community Development pot Commission Agenda .1uly 91 1981 "It is recommended that the City Commission authorize the City Manager to enter an �.� agreement with Dade Savings and Loan Association :. to deposit Community Development funds received from the United States Department -' of Housing and Urban Development pursuant :. to a Lump -Sum Draw -Down agreement as per the attached resolution." Federal Regulations allow municipalities who have allocated Community Development funds to housing rehabilitation to deposit all or part of those funds in a local lending institution to further the locality's rehabilitation program. The deposit of these funds is used to leverage additional private funds to improve the local rehabilitation program and involve local lenders in the rehabilitation process. In an effort to increase the funding available to implement the City's Great Neighborhood Residential Rehabilitation Program, staff prepared an RFP for a subsidized leveraging program which was distributed to all local lending institutions meeting the requirements mandated in the Federal Regulations. Dade Savings and Loan Association was the only lender to respond to the RFP. The proposal made by Dade Savings and Loan Association meets all federal requirements. The City proposes to deposit at least two and one-half million dollars of Community Development funds with Dade Savings and Loan Association. In return, Dade Savings and Loan will make available two and one-half million dollars in private funds to create a rehabilitation loan pool of five million dollars. City staff will screen all loan applicants and refer them to Dade Savings and Loan Association for final loan approval. Approved applicants will receive an FHA Title I insured Home improvement Loans from Dade Savings and Loan with the City portion of the loan as a subsidy reducing the effective interest rate. The agreement will be for a one year period with an option for a one year renewal. The City will use the interest earned from the deposit of the Community Development funds to provide further rehabilitation assistance in the targeted Great Neighborhoods as required by Federal regulation. The agreement between the City and Dade Savings and Loan Association requires approval by the United States Department of Housing and Urban Development before the deposit can be made. Staff is continuing to negotiate with Dade Savings and Loan Association to obtain more favorable terms in regard to the leveraging program. However, the terms proposed, included the fees stated above, are minimum acceptable terms for the City. The resolution authorizes the City Manager to approve the agreement with Dade Savings and Loan Association to administer the Community Development funds, enabling the City to request the funds from the Department of Housing and Urban Development. No further legislation would be required to implement the program. Approval of the resolution would increase the capacity of the rehabilitation program, using funds currently allocated in the Community Development budget, from approximately two hundred and fifty cases to four hundred cases. By using the administrative services of Dade Savings and Loan this increased volume can be achieved without an increase in program staff. Approval of this item by the City Commission will enable the City to meet its Federally mandated draw -down goal by September 30, 1981. If the City does not proceed to implement these lump -sum draw -down procedures, total or partial loss of Community Development Block A' A 1:H..,_ N .t fi �1 fi 1.0 N � T `� � V I N C, L. *Bank of Miami Bitoayne Bank *Cadital Bank *City'htional Safik of Miami Central Bank and Trust Conahy, CoMMAC ial Bank and Trutt Company *Central National Bank of Mimi F1agthip National Bank of H14ami *Coconut Grove Bank First National Sank of Greater Miami First State Bank of Miami Hemisphere National Bank Florida National Bank of Miami National Bank of Florida Intercontinental Bank People's Downtown National Bank Miami National Bank Republic National Bank of ;Miami Pan American Mortgage Corp, Safrabank Royal Trust Bank -Totalbank Southeast First National Bank United National Bank of Miami of Miami Continental National Bank *Dade ;Savings & Loan Association Sun Bank of Miami *Chase Federal Savings ! Loan Association Barnett Bank of Miami Lomas & Nettleton Company J.I. Kislak Mortgage Corporation Baldwin �'ortaage Corporation Brickell Savings & Loan Association Caldwell Mortgage Corporation I N T Pt 01) .(TI N Dade SaVings sitd town Association, in eomplianee with the Federal Community Reinvestment Act, has involuted itself, in evaluatings counseling, processing and servici'tig the credit' needs of targeted neighborhoods within the City► of Miami. lie have undertaken this position in 'order that certain minority n LENDFR FSLIC