HomeMy WebLinkAboutM-78-0723t•R o+A
Joseph it, dtass .e
City Mahaget
4t:%j 4 u
bens spiliman) bireotor
Community beveloptneht
INS' ll,6 t• tit MEMc ANbUM
pei ember 8.) 19/8
tILE;
3u1je_ 1. Report to City COf thissioh on CUtteht
Housing Prbgraths and housing develop,
tent program recottitttendations
hL"' 'IC" City ComMi Soh Agenda
becember 14 1918
!Clio. LG UR CS;
Accompanying this memo is a report on the status of the city of Miami's
current housing programs which incorporates recottlinendatibPs for new
Housing Development Program.
The report emphasizes the City's two -pronged approach in housing improve"
ittent and development --rehabilitation of existing housing resources„
through the Great Neighborhoods Program and the Little Havana-Lummus Park
NSA Section 8 Substantial Rehabilitation Program and developmentof new
housing resources through the UDAG funded Homeownership Assistance Loan
Program and the proposed Housing. Development Program.
In support of the attached housing program, the City Commission is requested
to approve the following:
LITTLE HAVANA-LUMMUS PARK NSA
Adoption of a resolution authorizing the City Manager to accept the
set aside of 500 units of Section 8 Substantial Rehabilitation con-
tract authority by the United States Department of Housing and Urban
Development and take other actions as defined in the resolution.
Adoption of a resolution authorizing the City Manager to initiate
and complete negotiations with proposed developers of Section 8
substantially rehabilitated housing in the Little Havana-Lummus.Park
NSA in accordance with the recommendations and procedures defined
in the report.
HOMEOWNERSHIP ASSISTANCE LOAN PROGRAM (UDAG)
Adoption of a resolution authorizing the City Manager to accept the
Urban Development Action Grant award from the U.S. Department of HUD
and take other actions incident to the implementation of the program.
HOUSING DEVELOPMENT PROGRAM (HOUSING BOND)
Adoption of a resolution authorizing the City Manager to submit the
Housing Development Program to the U.S. Department of HUD and proceed
with bond validation for $6,000,000 in General Obligation Housing Bonds. /
eorQHJ I
�/7,P- 77
7 -7J
7,47.7.2 f
77- 7"1-412.•
78 - 7?
0,R4to Ntitfttpfttitiobg P tXXt&PM
Tlie city Of Miami. s •Cifeat Neighborhoods Prograhl a btu ftihded
progratt of fleighbarhaod' reVitaii2atioi eombihih 'street, paik &hd
•
tither physical ihproveMents 'with io Wminterest home.- imprOvaMa it loafis•
for qualified residents is being imptemented in three heighborh0Odt
during the current fiscal year.
These neighborhoods are: ttieha
Allapattah, and King- Heights (see Map pp,t )
Vista
To date, 137 requests for home itnproVement assistance have been
trade by g
homeowners in the Buena Vista Great Neighborhoods Proram
area and the Dade County Department of Housing and Urban Develop-
ment has approved 11 home improvement loans.
Several streets in the Buena Vista Program area have been improved
through CDBG funded programs with others planned for improvement
over the next three years. In addition, a neighborhood park will,
be constructed in Bttna Vista during the current fiscal year.
Thirty one requests for home improvement assistance have been made
by Allapattah Great Neighborhoods Program area residents so far,
and several home improvement loans are expected to be approved by
Dade County HUD this month. CDBG funds have been budgeted this
fiscal year for continuation of the street improvements program
in the Allapattah Great Neighborhoods area.
On December l7th, a neighborhood -wide meeting of Allapattah residents
and property owners will be held for the purpose of forming a "Great
Association" similar to the association formed
Neighborhoods
Buena Vista earlier this year.
1
th January Of 19 l§ ) a nSighborhood=W de ►ceting of raSidefita and
property oW 1e1s Wi1i be held to kidk=off the dreat Neighbo 'hOod§
p og o plafifed fbr the Xing Heights areas Several Xing Heights
`Odidehts have already requested Mottle improvement aetistande and
inspeotiotis are now underway.
Lased upon projected program heeds, it does hbt appear that CbtO
funds budgeted for the Creat Neighborhood home improvement loan
program Will be siiffioient to meet program demand. Alternate
methods of home improvement loan financing ate now being developed.
in an effort to maximize the use of available funds and these will
be presented to the City Commission Within the ne:t 60 days.
Little Havana - Lammas Park Neighborhood Strategy Area
On November 6th, the City of Miami received approval from the U.S.
Department of Housing and Urban Development, of its application
for the designation of Little Havana - Lummus Park (see Map pp.10).
as a Neighborhood Strategy Area (NSA) to assist the City of
Miami in realizing its long-term revitalization objectives for
the NSA, the U.S. Department of HUD has allocated 500 units of
Section 8 rental assistance authority for substantially rehabili-
tated dwellings.
To expedite the program, which will provide quality rental housing
for 450 of Miami's lower income elderly and 50 non -elderly families,
preliminary proposals for Section 8 substantial rehabilitation pro-
jects in the NSA have been requested and received (see Request for
Preliminary Proposals, attached pp. 11).
.pkoPeea g i edeived have- been rafiked by the Office cif doftiffithity,
b 0e p-sent in acdari anCe with the oritetia get forth in the
eciuegt for PYeliminAty•Ptopoals't
Today)- the Office of Cotritnunity bevel-opmeht wild. recortattend the pto
pc galg 'deemed -to be host s lit bl.e foie- final processing and sub=
ttission to the UrS, bepartnent•of•Mousing and Urban •bevelopiient.
lf,.as the result of further processing of the recotiimended propo-
sals, one or all should be . detertnihtd 'to be - infeasible - for
plementation, the Office -of Community Development will proceed with
the processing of alternate proposals in rank orders
The regulations governing the implementation of Section 8 Sub-
stantial Rehabilitation projects in Neighborhood Strategy Areas
require that a local government assume responsibility for funding
the cost of relocation of tenants occupying dwellings proposed for
rehabilitation as well as administering the relocation program.
$50,000 has been budgeted for relocation assistance in connection with
implementation of the program in the FY 1978 CDBG program and an
additional $1,100,000 for relocation will be recommended for inclu-
sion in the City's Community Development Block Grant program budget
1980 and 1981. This amount should be more
for fiscal years 1979
than sufficient to augment program relocation costs. The average
cost of permanent relocation of renter families is $4,320.00 per
family. Through the staging of rehabilitation, however, it is
anticipated that many families will be relocated on a "temporary
-3—
a i 8 t hi h w 1 stibstah Tally teciUde- telObatiofi Costs f'
.Vetale post of teMbOtaty telodatioh is $106.00 pe,r famil -r
W i e the btentiai ubiid obst of relocation donhected with the
iM lehentatibfi of the 8e :tion 8 program is substantial, the
rehabil.tatiofi o
f 500 units of e istincj housincl ifs the area -will'
cJene1ate the infusion of approxiiately $5,000,000 in. private.
cOnStructiOn dollars and increase the ta.table value of the.pro-
-potties to•be rehabilitated.
The provision of 500 units of similar type housing in the Little
Havana Lummus Park NSA through nevi construction would require
the acquisition of approximately eight acres of land, relocation
of existing tenants, and demolition of existing property improve-
ments significantly increasing overall housing production costs
and increasing the public share of costs due to demolition and
permanent relocation of existing tenants required.
To illustrate this point, the Metropolitan Dade County Department
of Housing and Urban Development estimates that the acquisition
costs for the construction of 52 units of elderly Section 8 housing
now being developed in Little Havana on a`.86 acre site will
exceed $358,000 including land cost, relocation, demolition and
related costs. The development of 500 units of new housing in
the Little Havana - Lummus Park NSA could require approximately
$3,450,000 in public funds for site acquisition, relocation,
and clearance. Notwithstanding the above costs, Section 8 new
construction' subsidies are currently unavailable in quantities
sufficient to enable the City to obtain 500 units.
1
phyeioai and edeih iio retrital ation bli fectiV t•egtablie
fob the Little eveu—tuititnu Park iSA by the it of Miami win e
advanced considerably th ough the -implementation of the. three year.
Cotiimuhity bovelopment $lock Craht funded acd Vity pr 4tam which is hoW
being carried -out. 'the domponents• of the program to gether•with est.�
ttiated funding levels are listed on the attachment entitled "Little
Havana-litimmue ' Park, NSA Activity. Program" . (See )
City Cotnmissi.on Actio1l Requeste _
The following actions are requested by the City CommiSsion
with respect to the Little Havana-Lummus-park NSA program:
- Adoption of a. resolution authorizing
•
the City Manager to accept the' set aside of-500
• Units .Of Section 8 Substantial Rehabilitation
contract. authority by the United -States Depart-
ment of Housing and Urban Development and take
other -actions as defined in the Resolution.
(See letter from HUD, pp.:13
Adoption of a resolution authorizing
the City Manager to initiate and complete nego-
tiations with proposed developers of Section 8
substantially rehabilitated housing in the Little
Havana-Lummus Park NSA in accordance with the
recommendations and procedures defined herein.
Om ggliefhip Assistattoe 1, Aft
rani b�G�..
the U 8-: bepartineht cif housing and- Urban beve1opteht hat a PtoVed
•the City of t ttti i s Urbart beveloptneht 1Ctioh dtattt for tomeoiAif`eh p
,ssistatice Loans itt the amount of $1400000, !'here fuhdt Will:
be used -to provide second mortgage f inano tig for the coiisttudtibti of
appromitnately ' 0 single family homes iti the City. tOtropolitati bade
pp o
in su ort of the �ity's program, Wi11 provide fr the'
�Ounty j
. Federal Satfinas
financing of an additional 30 second-. tnortc#acde eDade
and Loan Association of Miami• will be providing approximately
$1,000,000 in first mortgage financing for the tlomeowner.ship Asti-
tance Loan program over the•next two years,
Of the 100 dwellings proposed for construction through the program,
14 are planned for development in Coconut Grove, 3 will be developed
in the Model Cities area, 38 are planned for Dorsey -Wheatley, and the
remaining 45 will be targeted for the Great Neighborhoodsprogram
areas for "infill" housing. Nearly $2,000,000 in Community Devel-
opment Block Grant funds have been budgeted for land acquisition,
relocation, demolition of substandard structures, and related costs
in support of the program.
Cooperation agreements and contracts between Dade Federal Savings
and Loan Association and Metropolitan Dade County are now being
drafted for purposes of program implementation.
Discussions are now underway with local architects in an effort to
develop sensitive designs for the housing to be developed through
the program.
.Fsrl®.aaA+Ma!DAY,?.AFiMMMMMIN'iUH'.yei°caehw`.�°ae,
ett imata'd that Cohstttitibh of housing under the do ae.
:AigittObt Loan PrograM W±ii dcmmehee in the Spring of 106,
t8ee attadhed ekh .bit ehtitiedt 1to meowhetship Assistance 'Pro-qt.-Me for
summary desoriptioh cif - the PYogfatt ppr 14),
•
City , Commi io t t ph .ttecii es.t0.
Adoption of a resolution authorizing the City
Manager to accept the Urban beVe1Optnent•Aetion
•
Grant award from.the United States Department
of Dousing and Urban Development•a.kd"`t2tke` o't"her
actiotzs ineiden. to the implementation of the
•
;Qineow�.ersho Assistance Loan Program as defined
14 the eso'4:utioh.
- To pass on the first reading of an amendment to
appropriations Ordinance No. 8719.
City of Miami/Metropolitan Dade County mousing Development Program
The provision of assisted housing for lower income families is a
key element in the City's comprehensive housing strategy.
In recognition of the need to utilize local, as well as Federal
housing funds to meet the housing needs of its lower income citizenry,
the City of Miami passed a $25,000,000 housing bond issue in 1976.
To date, proceeds from the housing bond issue totaling $994,000 have
been employed by the City as a bond reserve for the
424 units of Section 8 assisted new housing to be funded with
$11,600,000 of Metropolitan Dade County Section 8 revenue bond funds.
Construction of the initial 99 units of housing to be developed under
this program will commence in January with construction of the
remaining 325 units to begin in the Spring of 1979.
' e•deV61apfieht of the aboz'e t lefit oh c1 edt oh 'hoU fig tiii add
..e6hsider4bly to.the it 's oveta l effort to provide•qualiti ions
for its 1oier inotrie dit yens:
• tede fitly, Federal hotsitig. policy has dhahcged. In the future, public
housing -agencies will be expected to place emphasis on the-coistrUdtion
• Of eohVentionai public -housing rather than Section 8 renital'subsidy
housing. Currently, the. -City, in cooperation with Metropolitan Dade
County, is using Community Development Block Grant.funds to accitire'
•
land for the.development of• 415 units -of conventional public. housing
for. elderly citizens. • The reuse.proceeds froth the sale of•this land
. 'will be .used to -acquire additional public housing sites.
Despite the past and current efforts. of local government to maximize
the use of Federal and local funds to providehousing for the come
munity's-lower income households, a -greater effort.must be mounted.--
-Recent indications from Washington suggest that Federal funding for
housing assistance programs is likely to be reduced in future years
or,' at best, be maintained at current levels. •
With this in mind and. given the substantial need for -assisted housing
which exists in the Miami community, •it is recommended that the City
of Miami take the leadership in developing a partnership -with the
Federal government• -to promote additional subsidized housing -
development.
It is proposed that the City of Miami commit $6,000,000 in housing bond
proceeds for the purpose of acquiring sites for 770 units of subsidized
housing in return for the Federal government's commitment to provide
of 01 a toufi'tof housing reeervatioiis with 6$0 U tits de6i hated
fir -the elderly and TO mite for family oddupandy.
It is afitidipated thatr of the $ 6 , O00 > 00O ih•housihq bond
Prodeeds reciUited for site deveiopmetit,'$3000,O60 wild be ret=
%trued to the Cit ` when Metropolitan bade Cothty has•eReduted finial
-housing development contracts with the U.S. Department of HUbr
These Rinds•will be used, in part, :to acquire• the'tdtal number of
sites required.
It is estimated that the proposed net•investment•of-$6,000,000
in..housing-bond proceeds will generate.$16,400,000 of housing
construction.
Assuming a 6% rate on the housing bonds propbsed for sale in
support of the proposed Housing Development Program, the local
cost for implementation of the program will be approximately
.116 mils per year over a 25 year period (based on the current
total assessed value of the City).
City Commission Action Requested
Adoption of a resolution authorizing the City Manager
to submit the Housing Development Program to the U.S.
Department of HUD and to proceed with bond validation
for$5,000,000 in General Obligation Housing Bonds.
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MIAMI S GREAT NEIGHBDRH[]ODS PROGRAM
The Little Havana-Lummus
Street, Y-95, N. W.-S. W.
by the City of Miami for
zation program.
io't±F1CAfl613 8tdtiON 8ttUtAt SUttfb/ 4111
F'Uttnd AVAtLMMtt tTY FOFt StitttAt4ttALLY
ktirtilifiAtAttb MUL'I'iztiN1T SFI'FtUCTuk15 t)`)
fit LITTLVANA ttiM IUS iMtft NtiCi oP.,
Hoot) StP.ATEGir APtA AND itSQUEST i'oi PE2E
tIMItIA t? 1stoposALS
The City of Miarii has received authorization from the U. 84 Uepartrneilt of tibuting
and titbah bevelopmeht to solicit proposals tot the substantial rehabilitation of
tultiunit residential properties in the Little t-iavaha-LLt fltus Par): Neighborhood
Strategy Area for the award of Section 8 Housing Atsistance Payments doitraCts•
Sufficient Section 8 contract authority. is available to provide fair market rent
CohtraCt subsidies for approximately 500 dwelling units for lower income families
With occupancy type designated as follows:
450 dwelling units - Elderly
50 dwelling units family
Park Neighborhood Strategy Area, bounded by N. W. 5th
8th Avenue, and S. W. 6th Street, has been designated
the implementation of a five year, neighborhood revitali-
Preliminary proposals for substantial rehabilitation should be subt;iitted to the
Director, Office of Community Development, 3342 Pan American Drive, idiatni,
Florida, 33133, no later than 5:00 P. M. December 6 , 1978.
Preliminary proposals should optimally include the following information;
1) Address(es) of property(ies) proposed for rehabilitation.
2) A description of the propert1(ies) proposed for rehabilitation, including:
the number and type of structures, number of stories, structural systems,
number of dwelling units by size, living area, and composition, special
features and amenities, if any, and interior floor plans.
A description of the proposed rehabilitation, including: structural rehabili-
tation, mechanical systems improvements, kitchen and bathroom facilities and
equipment, landscaping and amenities, and general remodeling and interior
unit alterations.
4) The number of dwelling units, classified by size (number of bedrooms) and.
type of occupancy (elderly, handicapped, or family) proposed for the property
upon, completion of rehabilitation.
5) A, description of the existing utility combination and a description of the
proposed utility combination (if a change: is anticipated).
6)` A description of the extent of architectural services to be employed.
7) Anticipated schedule of rehabilitation, including estimated start and completion
dates on a unit -by -unit basis.
b) : toposed method of ptojedt flhancing and ahtidipated tetiitsY
the proposed cohttadt tent pet dwelling unit, by Site of Unit and strtdtute
type) if determined,
10) the utilities and services proposed for inclusion ih the contract tent and the
estimated monthly cost of utilities and serVices Plot ihctuded ih contract rent
by dwelling unit size and:structure type, if available,
11) The proposed term of the Housing Assistance Payments contract with justifies
cation for proposed term, if available.
12) Relationship of proposed rehabilitation to applicable Zoning, building, housing,
or other` :lodes and Ordinances.
13) The identification of the owner(s), deVeloper(s), architect(s)(if applicable),
investors, shareholders, or other parties having an interest in the proposed
project: (The qualifications of developers) and architects) and experience
in similar projects should also be submitted:)
14) A description of the proposed method of project management (by owners) or
through management contract).
15) Existing occupancy of building(s) proposed for rehabilitation, 'including:
total number of dwellinc units occupied and vacant by:dwelling unit type
and occupancy, type (family, handicapped, elderly):
The City of Miami Office of Community Development will review all preliminary
proposals received by 5:00 P.::•i., December 6 ,1978,
and will select, for further processing, those' proposals which are deeried by the
City to best support the objectives of the Section 8 substantial rehabilitation
program and revitalization objectives established for the Little Havana-Lummus Park
Neighborhood Stcategv Area.
In selecting proposals for further processing, the City of Miami will take the
following factors into consideration:
1) Location of Buildinq(s)- Favorable consideration will be given proposals for
the rehabilitation of buildings located:in close proximity to completed and/or
proposed municipally sponsored improvement projects and programs:
Degree of Rehabilitation — Favorable consideration will be given proposals
which will positively contribute to the physical quality of the specific
building proposed for rehabilitation and the immediate physical environment
of the block.
3) Proximity to Neighborhood Facilities and Services - Favorable consideration
will be given proposals for rehabilitation located in close proximity to
neighborhood services and facilities (retail services, social services facili-
ties, transportation services', medical care services and facilities).:
4) protect Ownership - Favorable consideration will be given proposals in which
minority participation in project development, ownership, or management is
proposed.
-11a-
t1 0.:01.ih 0ahlch1are Com Caatirt bi .ity = Favorable obPsideration Wiii. be G i en pft potelS
,patible with ekisting toning: building# and other applicable
dodos.
�1chitecttita_.„Qtiaiity Favorable consideration Will be given proposal which
feflecta high degree, of desigh sensitivity in the maintenance and improvement
Of etistinq architectural design.
7) th ehities Favorable Consideration will be giyeh proposals which include
site amenities deemed to positively affect the quality of the physical and
socail ehvitenmeht of the iitimediate area
In addition to the above, the following will be taken into consideration by
the City of Miami in selecting substantial rehabilitations proposals for ptocessing:
1) The extent of displacement of existing tenants (temporary and permanent)
required to implement the substantial rehabilitation of proposed buildings.
2) The ability of the owner and/or developer to obtain construction and permanent
mortgage financing.
3) The construction and rehabilitation experience o£ owner and/or developer,
4) The experience and project management capacity and capability of owner and/or.
proposed management firm.
5) The Affirmative Action record of owners) and developer(s).
Regulations governing the Section 8 Housing Assistance Payments Program and
Special Procedures for Neighborhood Strategy Areas may be obtained at the City of
Miami Office of Community Development, 3342 Pan American Drive, Miami, Florida 33133.
HUD Minimum Design. Standards for Rehabilitation for Residential Properties and
HUD Minimum Property Standards are available for sale by the Superintendent of
Documents, U. S. Government PrintingOffice, Washington, D.''C. 20402.
This advertisement should not be construed as a formal offer of Section 8
Housing Assistance Payments contract authority by the City of Miami.
For further information and assistance, contact Dena Spillman, Director of
Community Development, or Jerry Gereaux housing Specialist, at (305)579-6848.
-11b-
tittlx HAVA toLt MMtis tARk tisA
ACTIVITY FROGRA,'f
$ NSA Relocation t'und
,. Land Acquisition Lummus park
Elagier Street Iinprovetents***
Residential Rehabilitation***
5, Little Havana CotmunitY Center RenoVation
6, Latin Community Riverfront park
7, Beautification &Street Improvements
8, Tree planting .
9. Commercial Rehabilitation
10, Miami River Latin Specialty Center
11. Small Business Opportunity Center ***
12. Catholic Services ***
13. Housing Counseling
14. Transportation Program
15. Centro ?later
16. Homemaker Services
City Wide Demolition Program
Lumps Park Improvements
* * *
Funding Year and Anticiipated Al1oca€iot
rt 78
$ 50,000 $ 400,000 $ 500i000
250,000 250,000
730,000 520,000
580,000
130,000
290:,000
**
565,000
100,000
30,000
**
10,000
30,000
85,000
**
20,000
500,000 500,000
250,000
** **
1,000,000
100,000
30,000
**
10,000
30,000
85,000
2,000,000
100,000
20,000
This is a Multi -Target Area CD project which will provide services to
or impact upon the NSA.
County funded program
**
10 , 000
30,000
85,000
iiF}�S pz S� 4a
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OtNiNttit..AR PLAZA
661 RtVt.RSibE AVE!1UE
JACKst!IVILLE, FLCRIDA
iN p1=Pl:V 101kF'04 tot
44 6nti
Etnorable Maurice A. 1 erre
Mayor, City of Miami
Post Office Bo: 333708
Lia i r L 33133
Dear :•l_7or r erne
PL29- 002
M 978 . y u cr t � " ± by Secret ,, r.�i�of
Cn October cbe_ 10, 1.103 ,�ca w_ no �_z�_.. Secretary t' T .� . the
apnro va1 of your request to participate
te in the Neirt.hbJ/.erhoc�d Sir teF'j
Area Program,. fori.,he'Miami/Little Havant l�eig Neighborhood. hi s le t ter
serves to co ilrr the C\M1e 41 notification.
vJZLic4UJCy. This apy fot41 ls b45 ed
on tht information, plans, anti. Cca'.z_t entt_ contained in:your recvcst.
Should ;.ou decide to participate in and accent the terms of the'.
,.o • _ >;, 1 e , o sign o of this f 1 �LI"2 on to
p_.•��...w, please ul�;_: both copies t.r_�.c IE a, ,;cam • a.*Id e e
uflr.s office,
i n 1 r •t'i,•. e t h t, C t t o it f e
t �. i,ex-::a cf a,i. ,,eore�rx.�; ar_^�o � 1, � fetal 0 5C0 S cticn 8
substantial re;..-,.Gilitaticn units have been designated for use in the
NSA. Contract and budget authority fo:.. 500 units will be made available
in FY 1979. 'fair., approval should not be construed as a commitment of
other De .:-._ y a� c c 16an u
Gang o� 1'a+�J,w. UWv�♦tti.i resources 4 ♦1 as 312 funds.
You should now work with local prot,orty owners and developers in the
desiL fated NSA to arrang. for the necessary financing and to prepare
proposals for projects under the Section 8 Housing, Assistance Payments
Prc ram.
You may solicit proposals by whatever method 'is most appropriate.
However, Section 881.305 of the regulations requires that the chosen
method be published in a newsy _.per of general local circulation.
The local '- orn.-.,ont is
subrittth to HUD ttbnc:
to ETD :3ha11 not e.•:ceed
responsible for reviewing all proposals and for
it endorses for approval. Proposals submitted
the total number- of units that have been made
-13
ux'v.21ao1e for t}1? NSA in a codatco 41ii h the a rove i s i .au19 a
. c1 .ow t ?ea;_; 1 ,. 500.
r� t i t- K t Py o: I { the
e 1 ' ', r' , e o ` ,. i
3.Ci).i' a„' i.r'. • :? . :., 1 e __ ei� i �`r C' by t,x. liu:. t�iJ 7.c::L
Procepdures
:ii F rt C ..r .z c-. C) T..Giirihcd for effect on
January 31) 191 / and by all o hs r r a1..t.'„v:�ar C..i^1r�. policies c." )1. i %' able
to the CU' ee lricn 8 Substantial r .::2abi11 t, r,,.i3L:n Cr : , it particular)
the tnif o Eel rJ•c t? cri l .�.^_ . t. ce and l......1 P.^' ""'tcr _t2 tio:1 Policies
eat
Act ofr 1970 call : ies to di p1 a .e,,:ont GC::u-+";1 as a result of PHA
f b..,-2'ecno'2_.. t;le ler ' e.L.:,c ti . n pay:..en U Gu a ce ._C '✓ al.,G lever ec 'i a—
e:. J
to t:_4 revue:L n s of the nLfor . Act for all te'' __:t•:. displaced by
8 ..Lion 0 S:..,:i _. _ti:n 1:1..... _. the NSA ite�j_aiu i•::i i2 t%�~'.
rehabilitated units 'Lr2 privately C. ' 'r•. or,when no PHA aaoquisi uicn is
in i"o1 :'i1..
H ✓ 2> ec ,: -. ^c'.::�t ^.'te"• _c., e p o'r, .:: .1•`.. a, :C "le wail C/'1e. eo or; d rJy lrhC
c: . i renn . u
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o rc — 1: tJi) _rcul Cart 130.1 and
9J.2 1•;:21c_1 implOsIont the lc= vi;`3: `1 E.^:'.?._,c=..:.t,:.i Policies Act oi' 196
Sirn:'.n. and re!;urnir_ this letter) yC'u plods° on behalf of thelocal
gevern=nt to trevide all %l:i:ii C 1i':= ._ : t c:nd ser, '_C. s as described
in L. - Ti�ii CCr" a .,. �C_' Ilt I J'._t.. o
the f - r i._n1 Office. Failure. to ti.c . _.::(: those _ s and re!--.r`._cot
z _. ._- _,e
[•.. _...�:: C U: .,._. des.. -nation for t'• V area, For the
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I...—,._•.. •�. ot. IC.,., 't ,. -.J .. a,..-.—t•
;-•T 2d in the recr.lest C'• all o considered as t:_c' rh
t'.ey were now cc-:tl e, This, howcver, docr not elis:inate the i,.. .rc-
men for en i__d' i:; 1_ 112.._. •:'Ci .1' review of e »c.L ap-01.4cat4cn for
Any l:r:uoo;l Contr t an'I bi' : ot. a 1he'ri uy maybe canccaltd 1f p=. posr,l
`::'.f fi C. ' c t n._:b''s' of unit to 11t 1e the .ut.1 - rocery od
•
i t.t = the, ;�"_ Dprc\'e 1
i'_�:.' not a.a..... . t. � �i� .i,2/ accordance' +_'t,:� :i°or with its?1?".0'i 0� £.i'_ t. 3:i1C or �._1`� is
c::«::1 v3 .�! or if. c1:_ ed. pro cr o�1:� fail to�•r.L::':.1 t in Ar7rcesi ni s to Enter
:1 } :o'.'. r_ c c, - r • S
into- � ........._t...C.". �� ._'1i:., �%:.. l.r,n•4,.. : ..^.G' Section �i4.i. ��.'J OZ 1'�>_1
a, a T...c.. G_a:,,. ) Any �'L..'3...:LC._., 1.I:Jtl:C 1::_:? plan slust be. approved by
) , 1 of t e•1iSsis tan t•
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Inca 1 ssueS `th .: .1: aC . "t: .i.c ' o the U2.'CE:`:'_'i 1'io
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neeec..,._ ,,',•p'.. se i::!.:_.i i c .ens .t`•the 11.'::i r':C:...:.t::. ,E.o C•:1Ct12i r r :i2.'i-m
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Pact Of2ica t' : 3 )702
nia.7111 noricla 33133
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hOMOW1tRSt IP ASS±STA et LOMM - tiP t At, atAa
The Homeownership Assistance Loan Program enables eligible
faritilies to purchase homes, Using a combination of private
financing and public assistance. The basic features of the
program will be as follows!
1:. The home buyer finances the purchase of the
housing with tWo mortgages. The first mortgage
has a minimum term of 20>years and is provided
by a private financial institution. The second
mortgage is held by the City of Miami.
Payments of both principal and interest on the.
second mortgage may be deferred until the first.
mortgage is paid off.
3. The family must pay a minimum of 20% of its ad-
justed income, but hot more than 30%, for prin-
cipal, interest, taxes and insurance.
4. If the family's income increases so that its`.
monthly payments for principal, interest, tastes
and insurance drops below 20% of its adjusted
income, then it would be required to begin
payments on the second mortgage to the extent
that the total payment again equals 20%.
5. The maximum second mortgage is 55% of the pur-
chase price on a 3-bedroom unit. and 65% of the
purchase price on a 4-bedroom unit.
6., In all cases, the buyer must pay a minimum of
5° of the purchase price as a down payment,
plus any prepayments and closing costs.
7. Interest on the second mortgate is compounded
only during the first five years of the loan
starting at 5 and reducing to 1% in the fifth
year and then interest accumulation stops. This
procedure minimizes windfall profits to buyers
in the early years, yet encourages long term res-
idency because of the low interest accumulation.
and a faster equity build up.
Extensive pre and post purchase counselling is pro-
vided to include credit responsibility, ownership
responsibility and maintenance assistance. This
counselling is provided by the Urban League's
Housing Opportunity Center under contract with
the C.D. Program.
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