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HomeMy WebLinkAboutItem #03 - Discussion ItemFACTS ABOUT THE CITY OF MIAMI'S Xe reat OM 41C Sills 1S HOUSING REHABILITATION LOAN PROGRAM FOR OWNER OCCUPIED PROPERTIES. ADMINISTERED BY THE CITY OF MIAMI OFFICE OF COMMUNITY DEVELOPMENT IN COOPERATION WITH DADE COUNTY DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT . J U LY 1978 wier Non iiik MEEE MEEK Till MMEW IISML Midmiit Great Neighborhoods program bACi d oUNb One of the Most important tasks facing the City of Miami, is the preservation of its existing housing stock. Many dwellings in out community, while still basically sound, are beginning to deteriorate as a result of age and inadequate maintenance, proper rehabilitation of these structures at this time could assure their continued usefulness for many years to come. How-- ever, some homeowners do not have sufficient money to repair their property and are not able to borrow the funds from con- Ventional sources such as banks or mortgage companies. In view of this, the City of Miami in cooperation with Metro- politan Dade County Department of Housing and Urban Development will make direct loans at below market interest rates to quali- fied residents for the rehabilitation of their residential pro- perty. These rehabilitation loans are financed with City of Miami Community Development Block Grant Funds. ELIGIBILITY REQUIREMENTS A. The property to be rehabilitated lies in a sub -area of a Community Development Target Area designated as one of Miami's Great Neighborhood Impact Areas. B. The property must be in need of rehabilitation in order to meet certain standards established by Dade County. C. The property must be owner occupied and contain no more than two (2)living units. D. The owners' incomes must be within the following limits: Family Size 1 2 3 4 5 6 7 8 or more Gross Annual Income $ 10,750 12,300 13,850 15,400 16,350 17,300 18,300 19,250 These limits shall be adjusted automatically whenever the Federal Government periodically redetermines the median income limits for Dade County. TERMS AND CONDITIONS OF A REHABILITATION LOAN a. The loan cannot exceed $17,400 per dwelling unit and may include all necessary settlement cost such as attorney fees, escrow deposits and contingencies. the loan must be used to pay the cost of actual re, habilitation work except, where applicable, the loah May include an amount to refinance existing indebtedness oh the property. c. The interest rate on the loan shall be 3% per annum on the outstanding principal and the repayment period may vary up to the maximum of 20 years. d. All loans will be secured by a mortgage deed. Neither the loan or mortgage may he transferred or assigned to another person without prior approval by the City. REHABILITATION ADVANCE (DEFERRED PAYMENT) a. Certain property owners who cannot afford to make payments on a loan because it raises their principal interest, taxes, and insurance to exceed 20% of their monthly in - Come may be eligible for a rehabilitation advance to pay the cost of all or a portion of the rehabilitation work up to a maximum of $10,000. The rehabilitation advance shall bear no interest charges and no monthly payments will be required as long as the borrower owns and lives in the property to be rehabili- tated. The amount of the advance will be repaid at the time the property is sold or transferred to another person. REHABILITATION LOAN FOR THE CORRECTION OF HAZARDOUS CONDITIONS a. Homeowners occupants may be eligible for a rehabilitation loan up to a maximum of $5,000 to correct only hazar- dous or potentially hazardous conditions which, if not corrected, may endanger the health and safety of the occupants. The owner may be eligible for deferred payments according to his income and housing expenses. b. The rehabilitation loan may only be used to pay the actual cost of the minimal repairs and improvements necessary in order to correct substandard conditions that are determined by the minimum housing code enforcement or the building official to be hazardous or endanger the health and safety of the occupants. c. It must be evident that it is not feasible to rehabilitate the property to normal rehabilitation standards. d. Income limitations. The applicant's income must be within these limits: Fafii1y Size Gross Ahhual lhcome 1 $ 5,650 2 6,500 3 7,300 4 8,100 5 8,750 6 9,400 7 10,050 8 or mote 10,700 These limits shall be adjusted automatically whenever the Federal Government periodically redetermines the median income limits. It must be evident that the applicant has such limited assets that the repair of the property could not be accomplished without public assistance. The assessed value of the property as determined by the Metropolitan Dade County Property Appraiser shall not exceed $30,000. SPECIAL ASSISTANCE FOR MIDDLE -INCOME FAMILIES In order to encourage middle -income families, residing in impact areas to participate in the revitalization of their neighborhoods, rehabilitation loans shall be made available on the following basis: a. For a middle -income owner -occupant, not requiring refinancing of an exisitng mortgage, a rehabilitation loan may be made in the amount necessary to reduce the effective interest rate to 3% on a privately financed property improvement loan. (Example, if the total cost of rehabilitation is $10,000 and the applicant it able to obtain a ten year loan at 12% interest, an effective 3% interest rate would require payments of $97.00 per month. Payments of $97.00 per month will amortize a $6,700 loan at 12% interest in ten years. A rehabilitation loan in the amount of $3,300 would be made to finance the balance of the repair work. Payments on the $3,300 rehabilitation loan would not commence until the bank loan is paid off.) b. For a middle income owner -occupant who needs to refi- nance an existing mortgage in order for rehabilitation of this property to be economically feasible, a re- habilitation loan may be made to finance that portion of the total cost of rehabilitation and refinancing in excess of the families' ability to pay for private financing (Example, if the applicants' income will support only a $15,000 first mortgage, and the total amount needed was $20,000 including $10,000 for re- habilitation work and $10,000 for refinancing, a $5,000 rehabilitation loan, with payments deferred, could be made to complete the financing.) MEIN MEMIM MONIMMIE- =UMW' INEW mmr mom MEE MEM MIER MEW mmfe mmw MEE Mg MF 1hco ne liMitations The applicant+s ihcoine Must be within these 1ii11i,ts: Family Size 1 2 3 4 5 6 7 8 or more Gross Annual Income $ 10,751 = 13,560 12,301 - 15,600 13,851. - 17,520 15,401 = .19,440 16,351 - 21,000 17,301 - 22,560 18,301 - 24,120 19,251 - 25,680 (Inclusive) LOAN PROCESSING AND APPROVAL a. All loan applications will be processed by the staff of the Metropolitan Dade County Department of Housing and Urban Development including inspection of the property to determine the extent of work necessary and follow-up inspection during construction. b. All loan applications will be approved or disapproved by the Director of the Department of Housing and Urban Development or his designee. c. The Director or his designee may waive payments of principal and interest for a period up to one year at a time if he determines that such action is necessary to avoid severe financial hardship for a rehabilitation loan recipient. If your property is in need of rehabilitation, please contact the City of Miami Citizen Services Department Citizen Participation Division at 579-6862. INEW MEW MEM WEIMIM MIMMIW EOMMINE mow MEM MEW ES mow maw MEE MEW mmm IMP MMIM ®ro MW CITY OF M IAM I OFFICE OF COMMUNITY DEVELOPMENT 4%1 1//,„0 BACKGROUND Miami's Great Neighborhood Program is a newly initiated program of the City of Miami to improve and revitalize our older, basically sound residential neighborhoods. There has been a trend in Miami, as in most large cities, by both the government and the private sector, to bypass older inner City neighborhoods in favor of newer suburban areas. The resulting neglect has been a major contributing force to the decline of these once sound neighborhoods. This problem has been particularly acute in Miami and Dade County which have undergone phenomenal growth since World War II. Our older inner City neighborhoods have become increasingly characterized by deterioration of residential properties by reason of age, inadequate maintenance, obsolescence and overcrowding. There has also tended to be a slackening in the enforcement of building and zoning laws, a lowering of standards in the provision of public facilities and services, and a reluctance of lending institutions to make mortgage and home repair loans. The local commercial areas have also suffered as a result of these con- ditions within the neighborhoods and changing retail patterns. These factors have all contributed to an in -migration of low income families and a corresponding exodus of middle income families, further weakening the viability of these neighborhoods. Miami's older residential neighborhoods provide a vital resource for the economic and social health of our city and must be preserved and improved to insure the continual growth of the City. Through their Community Development Programs, both the City of Miami and Dade County have undertaken the challenge to reverse existing trends. Now is the opportune time to redirect both the public and private sector in a concerted effort to preserve and revitalize these once fine neigh- borhoods before blight and deterioration become rampant and the cost of improvement becomes prohibitive. These neighborhoods provide affordable housing which is centrally located to major employment centers at a time when the cost of new housing and transportation are rapidly escalating. DO [REF1IFJi,rL�� oPo[ _r c_ oc = ] Li1 Oa r r EePP-11-d 0 L' .----- a0DL1 J L. -- --L___ _JOl 1U r- 1, ____ II 1 . 1iI_ l - L __: J L___�_ r--� `- [v---�CJCJC__.) Mtn ! r -2r-- Onn0 :Ill J[ iLit._ (( II 000000nc7n r' 'L.l_.:! .111 f;r1 ni^�j i[.1[.Jr 1ti 111 nn I Ii u IL.---.... _A L i JC I -'ir 't L_ 1 .: .,, .i:._ L i 1 1! L. IL JET:. `1 1r 1•-: l 7 ___)t , C-- , r r LA_ �. C _ - DEflL - r - 1 nr,11-1(C fl 1I , �ClL7[Jr r E _ J N r ,, iVVL_54 1,, JLC �r][1 -J ) I,; 1 11 1: BUENA VISTA Jr. BUENA VISTA NEIGHBORHOOD The Buena Vista Neighborhood is located in the north central portion of the City of Miami. It is bounded by N.W. 54th Street on the north, I-195 (Airport Expressway) on the south, I-95 on the west, and North Miami Avenue on the east. Decorator's Row and the residential areas between North Miami Avenue and N.E. 2nd Avenue are part of the overall Buena Vista Neigh- borhood but are not part of Miami's Great Neighborhoods Program at the present time. Buena Vista is one of the oldest residential areas of the City of Miami. It developed as one of the first suburban areas of Miami, lying in close proximity to Downtown Miami and Miami Beach. Major dPvPtopment of the area got under way during the late 1920's and 30's, The bulk of the housing stock was constructed prior to World War II. Until the mid- 1960's it remained a stable, predominantly white, middle income neighborhood. During the last fifteen years, it has become a predominantly middle income, black neighbor- hood, with an increasing Haitian population. The overall neighborhood quality has temaihed, although there are increasing indications of neighborhood decay decreasing population, declining levels of homeownership, increasingly elderly population and increasing housing deterioration. In 1974, the Buena Vista Neighborhood was made part of the Edison -Little Ritter Community Development Target Area, one of eight such areas in the City, Special community improvement projects are undertaken in these areas, by both the City and the County, through the utilization of federal Community Development Funds. The Buena Vista Neighborhood was selected for the Great Neighborhoods Program because it is basically a sound neighborhood that can be greatly improved with minimal public and private investment. During the last three years there has been significant public improvements in the neighborhood including the con- struction of sanitary sewers, rebuilding of local streets and the acquisition and development of a new neighborhood park at 53rd Street and N.W. 2nd Avenue. ELEMENTS OF MIAMI'S GREAT NEIGHBORHOOD PROGRAM 1. The Establishment of a Neighborhood Association. The key element for the success of any neighborhood revitalization program is the involvement of the residents of the area. A Community worker from the City of Miami Office of Community Services will assist in the formation of a neighborhood association. The Association will play a crucial role in the revitalization program by means of pro- viding a mechanism for community involvement and a forum for neigh- borhood issues. Neighborhood and block level meetings will be held on a regular basis to inform residents about the Great Neighbhorhood Program, and to generate involvement. Technical assistance will be provided by Community Development Planners and other professional staff. Plans for public improvements and a general neighborhood strategy will be developed with input from the residents. It is anti- cipated that the Neighborhood Association will remain as a permanent organization within the Community upon the completion of this program. 2. Concentrated Building Code Enforcement In older neighborhoods, often many of the residential structures do not meet the standards of the Dade County Minimum Housing Code in structural integrity, electrical wiring, plumbing requirements, etc. An integral part of the Great Neighborhoods Program is to improve housing in the neighborhoods by identifying these defects and seeing that they are corrected. This is accomplished in the following manner: Qualified inspectors from the Dade County Department of Housing and Urban Development will make a systematic check of all structures in the area and let the owners know the type of work that needs to be done to bring the home up to code. The inspectors are flexible in their approach, however, and try to work with the property owner rather than imposing penalties. Most often only minor repairs are needed which can be done by the property owner. If property owners cannot afford to make the repairs on their own, various loan programs will be avail- able. A voluntary compliance time will be established to complete required repairs. 3. Housing Rehabilitation Special assistance will be provided to homeowners who wish to correct housing code violation and to those who wish to modernize their property. A rehabilitation loan program has been established to provide low income families with rehabilitation assistance. This program is for MEMO MEW MEM MIMESIS MEM MEEK MEME tesidehts who ate unable to obtain conventional financing. These ldahs will catty an interest tate of 3% per annum with repayment tetts up to twenty years, Vety low income families may be eligible for deferred payment basis loans when money is needed to correct a hazardous or poten= tially hazardous condition in their home. The maximum loan to correct hazardous conditions may not exceed the actual cost of repairs or $5,000. Repayment of the loan becomes due' when the property is sold or transferred to another owner, except to a surviving spouse in case of death. The participation of middle -income families is encouraged by the provision of two types of financial assistance. Middle -income owner occupants who do not require refinancing of an existing mortgage, may borrow the amount needed to reduce the effective interest rate to 3% on a privately financed rehabilitation loan. Middle income owner -occupants who need to refinance existing mortgages to rehabilitate their properties, may borrow to finance that portion of the total cost of rehabilitation and refinancing in excess of their ability to pay for private financing. Additional information about the loan program is included within the brochure entitled "Miami's Great Neighborhoods Housing Re- habilitation Loan Program". As part of this program, the cooperation of various financial institutions has been obtained. They have agreed to make mortgage and home improvement loans in the area and to give special attention for requests for loans from the area. All property owners will receive free technical assistance from Dade County Department of Housing and Urban Development on making necessary home repairs. 4. Demolition of Dilapidated Structures There are various structures in Buena Vista which are unsafe and in a deteriorated condition such that rehabilitation is either impossible or economically impractical. The City of Miami, through its Building Demolition Program can condemn these buildings and have them demolished with or without the owner's cooperation. If the owner refuses to pay for demolition, a lien will be placed on the property by the City. Through this process, the property does not change hands and noattempt is made on behalf of the City to acquire it. 5. New Infi11 Housing Contruction The City of Miami will be purchasing a limited amount of vacant land and dilapidated structures for sites for new housing construction. The construction of new single family housing for homeownership will be financed through the City of Miami's Second Mortgage Housing Program. This program will provide affordable new housing. The anticipated monthly cost for a three bedroom two bath home will be approximately $200.00. 6. Public Improvements The condition of the local streets, trees, availability of park and other public facilities are important components in neighborhood quality. The City of Miami is currently completing a Sanitary Sewer System in Buena Vista. The City will continue to rebuild local streets and will plant trees throughout the neighborhood. During the het six Months the hew Buena Vista Neighborhood Park at N.W. 2nd Avenue and 53td Street will be constructed and itptdve,. iitehts will be made to PutiMafi Mini Park at 49th Street and North Miami Avenue. tmproved.public Services The City of Miami and Dade County will undertake a program to improve the delivery of public services within the Community. Representatives of various City and County Departments will work closely with the Neighborhood Organization in correcting existing problems. 8. Revitalization of the N.W. 2nd Avenue Commercial Corridor Special 3% loans for the renovation of storefronts along N.W. 2nd Avenue will be made available by Dade County Office of Commu- nity Development. Planners will work with the merchants in up- grading the commercial district and promoting new businesses in the area. ROLE OF THE RESIDENTS The success of the revitalization efforts underway in the Buena Vista Neighborhood are dependent on the active involvement of the property owners and residents of the area. On Thursday, July 27, 1978 a meeting will be held at Shadowlawn Elementary School at 7:30 p.m. to establish a neighborhood organization. This organ- ization will work closely with the City in the implementation of the Great Neighborhoods Program. Further information about the Great Neighborhoods Program is available from the City of Miami Department of Citizen Services, telephone: 579-6862. Information about particular loans or how to apply, is available from Ron Kipp, Rehabilitation Officer, Dade County Department of Housing and Urban Development, 3050 N.W. 7th Street, Miami, Florida 33125, telephone: 649-4900.