HomeMy WebLinkAboutExhibit 2CITY OF MIAMI
COMMUNITY DEVELOPMENT DEPARTMENT
Neighborhood Stabilization Program (NSP)
IMPLEMENTATION
POLICIES
Revised: DeGember17,, 2009 July 8, 2010
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Table of Contents
Introduction.............................................................................................................................. .
NSPAdvisory Task Force..................................................................................................... 4
GeneralGuidelines: ............................................................................................................... 5
Strategy A: Financial Mechanism: ....................................................................................... 6
1. Equity Sharing Program Summary ............................................................................... 6
2. Down Payment Assistance Program Summary ......................................................... 8
Strategy B: Purchase and Rehabilitation of Foreclosed & Abandoned Properties.... 11
StrategyC: Land Banking................................................................................................... 15
StrategyD: Demolition......................................................................................................... 15
Strategy E: Redevelopment................................................................................................ 16
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Introduction
The Housing and Economic Recovery Act of 2008 ("HERA") was passed by the United Sates
Congress on July 24, 2008 and signed by President George W. Bush on July 30, 2008. This
legislation made available $3.9 billion dollars to states and local governments for the establishment of
the Neighborhood Stabilization Program ("NSP"). This program was created to provide emergency
assistance to states and local governments to acquire and redevelop foreclosed upon properties that
might otherwise become sources of abandonment and blight within our communities. Under the NSP
the City of Miami received approximately $12 million in Community Development Block Grant
("CDBG") funds to implement this program.
On September 30, 2008, the U.S. Department of Housing and Urban Development, ("HUD")
published regulations (Exhibit "A") for the implementation of the NSP. As part of the application
process to qualify for this funding, the City Commission approved on November 18th, 2008, a
substantial amendment to annual Action Plan for FY2008-2009 ("AP"), which provided a framework
for the use of the NSP funds in the City. As much as possible, this substantial amendment was
designed to allow the City to be able to perform all eligible activities under NSP.
As the economic conditions have changed dramatically, and as the structure of NSP has been further
clarified, a two 214--A-substantial amendments: #2008.1 and #2008.2 to the annual Action Plan for
FY2008-2009 (-AP22) were was approved by the City Commission on December 17. 2009 and April
8, 2010 . The proposed substantial amendment #2008.3 (AP3) has further clarified the program.
Pending final approval by HUD, the changes to the implementation plan will allow the program to
address the changes to the AP32.
It is important to note that the implementation policies contained herein may be stricter, in some
instances, than the ones listed in the AP32. Should any policy herein be broader than the AP32, the
interpretation as provided by the AP32 will govern.
The implementation plan seeks to provide further guidance to staff on how this program is to be
implemented.
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NSP Advisory Task Force
In an effort to receive community input throughout the implementation of the NSP, on November 18,
2008, the City Commission requested the Department of Community Development to create an NSP
Advisory Task Force ("Task Force".)
Composition
The Task Force will consist of two representatives from each City district appointed by the district
commissioners, one representative appointed by the Mayor and one representative appointed by the
City Manager. District appointees must not be employed by the City of Miami.
The NSP Project Manager shall be responsible for the coordinating the operation of the Task Force.
The Chair of the Task Force will be elected at its first meeting.
Meetings
Meetings will be held at least once a month during the first 18 months of the implementation of the
program. After that, the meetings will be called on an "as needed" basis by staff in consultation with
the Chair of the Task Force. In addition, a meeting of the Task Force can be called by the Chair of
the Task Force at any time.
Quorum
Since this is an advisory committee, there is no quorum requirement, except that when the Task
Force becomes a Request for Proposal (RFP) review panel, a minimum of 3 members will be
required to be present and a majority of the members present must not be City of Miami employees.
Duties
The duties of the Task Force include, but are not limited to the following:
Make ongoing recommendations to staff on the implementation of NSP.
Act as an RFP panel for the review of all RFPs under the program. The Task Force will
review and recommend applications and proposals received in response to RFPs, for
final approval/award by the City of Miami's Housing and Commercial Loan Committee.
Staff will provide scoring and review information to the Task Force for their
recommendations.
III. Look for properties in their respective neighborhoods that are eligible for NSP funding for
consideration by developers and staff.
IV. Review and recommend the purchase of properties at a 1 % minimum discount from the
appraised value prior to City Manager approval and signature.
V. Review and make recommendations on selection and disposition of land listed under
Strategy C: Land Banking.
VI. Review progress reports provided by staff.
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General Guidelines:
The following guidelines will apply to the NSP program as a whole irrespective of the strategy used:
a, Purchase Price of Properties to be Purrchase under thfs Program
ram
The price of properties to be purchased under this program must be at a minimum of a 1 %
discount from the appraised value.
b. Property Appraisal
1. Properties to be purchased under this program must be appraised. Appraisals can only be
accepted from qualified appraisers and made in conformity with the appraisal requirements
under 49 CFR 24.103 — Criteria for Appraisals — and completed within 60 days of the final
offer to purchase.
2. The appraisal must be ordered by the City or the developer. Appraisals provided by the seller
will not be acceptable unless the seller provides written proof that the appraisals conducted
by them comply with all HUD requirements.
C. Properties outside Areas of Greatest Need
As stipulated by HUD, properties outside the AGN can only be eligible upon prior approval from
HUD. To that extent, no funding will be provided to such properties without written approval from
HUD. Any program participant, including the City, wishing to provide funding to such properties
must provide the following information to the NSP Manager so that an approval can be requested
from HUD:
1. Proof that the property is eligible under NSP program (foreclosed or abandoned)
2. Reason to include the property under the NSP program. Such a reason might include the
extent of the deterioration of the property, crime caused by the abandonment of the property
or the property causing a blight condition which if not removed will spread to other areas of
the block, etc.
3. Have the City certify the lack of eligible properties or inability to purchase properties meeting
NSP criteria in the AGN.
d. Exception to Policy
The following are the policies related to exceptions:
1. An exception to any of the policies established herein can only be made by the City
Commission if such an exception is not at odds with the statute, regulations or the amended
annual plan approved by HUD.
2. No exception can be made to policies derived from HERA or the NSP regulation.
3. Exception to any policy derived from the substantial amendment to the annual Action Plan for
FY2008-2009 (AP3-2) can only be made through a fourth t4ird amendment of the action plan.
Such amendment must be approved by the City Commission and HUD before the exception
can be granted.
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Strategy A: Financial Mechanism:
1. Equity Sharing Program Summary
Program Description:
The NSP Equity Sharing Program provides a shared -equity investment of no less than 20% of the
purchase price to assist homebuyers in purchasing a property in the City of Miami's AGN. The buyer
locates an abandoned and/or foreclosed upon residential property within the City's AGN, meets with
the bank holding title to the property and utilizes private lenders to be pre -qualified for a mortgage
loan. The City of Miami inspects the property to ensure compliance with housing standards and
underwrites the shared -equity investment based.on all financial commitments provided to the
homeowner.
If the City of Miami inspector determines that the property has code violations and/ or is not meeting
Housing Quality Standards ("HQS") as per 24 CFR 982.401, then the property must be purchased
AND rehabilitated through the City's NSP -funded program before the buyer can start occupying such
property.
Eligible Properties:
a) Abandoned or foreclosed upon or Strategy E. Redeveloped. single family residences,
townhomes, and/ or condominiums.
b) The property must be located within the City of Miami's Areas of Greatest Need as indicated in
the new substantial amendment to the annual Action Plan FY08-09-AP2
c) The property must meet Housing Quality Standards as per 24 CFR 982.401. If the property is not
meeting such standards, the property must undergo rehabilitation under the NSP -funded
program. All repairs to bring the property to HQS standards must be completed prior to closing or
be made as part of the purchase. (Repair escrow will be required.)
Eligible Buyers:
a) Buyers must have household incomes less than or equal to 120% of median income adjusted for
household size.
b) Buyers must be able to afford a monthly payment based on the income and debt. Target for
maximum total monthly debt obligation as a percentage of monthly income is 45%.
c) Buyers must contribute at least $500 of personal funds towards the purchase of the home.
d) Buyers must not hold title to another residential property at time of closing
e) The buyer's credit must be acceptable to the first mortgage lender. However, the City of Miami
reserves the right to reject any application based on buyer's credit.
Amount of assistance: Total assistance will be the minimum amount necessary to meet credit
underwriting. The amount cannot be less than 20% or greater than 50% of the purchase price._ The
amount of assistance will be the lesser of $70,000 or the amount necessary to meet the minimum
credit underwriting standards.
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Sales Price:
Homes must be purchased at a discount from the current market appraised value of the property,
taking into consideration its current condition. The appraisal shall be completed within 60 days of a
final offer made for the property by the homebuyer. Purchase price cannot exceed the maximum
sales price as stipulated in Local Housing Assistance Plan ("LHAP") and the property shall be
purchased at a minimum of a 1 % discount from the appraised value. As of the date of this document,
the maximum sales price is $236,000.
Affordability period: The assistance shall bear a 30 year affordability term.
Security:
The assistance will be secured by a mortgage on the property. In addition, the affordability period and
the equity sharing shall be enforced by a restrictive covenant that will run with the land.
Assistance Terms
The assistance will carry a 0% non -amortizing rate for a 30 -year deferred payment period. Payment
of principal will be forgiven at the end of maturity period provided that the homeowner resided in the
house as their primary residence.
First Mortgage Restrictions:
Term of the loan must be 30 -years fixed interest rate & cannot exceed more than 150 basis points
over Freddie Mac's weekly average 30 -year rate, as published in the Primary Mortgage Market
Survey ("PMMS") at time of closing; no prepayment penalties; total percentage charged for Discount,
Origination & Broker fees must not exceed 2 points; all other lending fees must be reasonable and
cannot exceed $500 or 0.5% of the loan amount, whichever is less,
Resale Restrictions:
If the owner sells and/ or transfer the house prior to the end of the City's mortgage term, the following
provisions will apply:
1. The sale of the property must be pre -approved by the City, and the new buyers must meet the
program's income limits in effect at the time AND the sales price must not exceed the maximum
affordable sales price in effect at the time.
2. For any "early" sale or transfer, the City shall share in any gain realized, based on its pro -rated
share of participation in the original purchase. A 30 -year affordability period will be applicable
under this strategy.
3. The above shared gain proposal terminates in the event of a foreclosure, with the lender required
to provide the City the right of first refusal to purchase the first mortgage loan at a negotiated
price. In the case of a foreclosure, the City will recapture any amount of net proceeds available
from the sale of the property..
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2. Down Payment Assistance Program Summary
Program Description
Provide zero percent (0%) deferred loans to homebuyers purchasing a property in the City of Miami.
The buyer locates an abandoned and/or foreclosed upon residential property within the City's AGN,
meets with the bank holding title to the property and utilizes private lenders to be pre -qualified for a
mortgage loan. The City of Miami inspects the property to ensure compliance with housing standards
and underwrites the loan based on all financial commitments provided to the homeowner. The City
will process applications on a first-come, first -ready, first-served basis, taking in consideration any
pre -established priority based on the "Areas of Greatest Need" assessment.
If the City of Miami inspector determines that the property has a code violation(s) and/or is not
meeting the safe, sound, and sanitary standards, then the property must be purchased and
rehabilitated through the City's NSP program before the owner can start occupying said premises.
Eligible Properties:
a) Abandoned or foreclosed upon single family residences, townhomes, and/ or condominiums.
b) The property must be located within the City of Miami's Areas of Greatest Need as indicated in
the new substantial amendment to the annual Action Plan FY08-09 (AP2).
c) The property must meet Housing Quality Standards as per 24 CFR 982.401. If the property is not
meeting such standards, the property must undergo rehabilitation under the NSP -funded
program. All repairs to bring the property to HQS standards must be completed prior to closing or
be made as part of the purchase. (Repair escrow will be required.)
Eligible Buyers:
a) Buyers must have household incomes less than or equal to 120% of median income adjusted for
household size.
b) Buyers must be able to afford a monthly payment based on the income and debt. Target for
maximum total monthly debt obligation as a percentage of monthly income is 45%.
c) Buyers must contribute at least $500 of personal funds towards the purchase of the home.
d) Buyers must not hold title to another residential property at time of closing
e) The buyer's credit must be acceptable to the first mortgage lender. However, the City of Miami
reserves the right to reject any application based on buyer's credit.
Amount of assistance: The lesser of $70,000 or the amount necessary to meet the minimum credit
underwriting standards. However, the minimum amount of assistance shall be $1,000.
Sales Price:
Homes must be purchased at a discount from the current market appraised value of the property,
taking into consideration its current condition. The appraisal shall be completed within 60 days of a
final offer made for the property by the homebuyer. Purchase price cannot exceed the maximum
sales price as stipulated in Local Housing Assistance Plan ("LHAP") and the property shall be
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purchased at a minimum of a 11% discount from the appraised value. As of the date of this document,
the maximum sales price is $236,000.
Loan Terms
The loan will carry a 0% non -amortizing rate for a 30 -year deferred payment period. Payment of
principal will be forgiven at the end of maturity period provided that the homeowner resided in the
house as their primary residence.
Affordability period: The loan shall bear a 30 year affordability term.
Security:
The loan will be secured by a mortgage on the property. In addition, the affordability period shall be
enforced by a restrictive covenant that will run with the land.
First Mortgage Restrictions:
Term of the loan must be 30 years, fixed interest rate, & cannot exceed more than 150 basis points
over Freddie Mac's weekly average 30 -year rate, as published in the Primary Mortgage Market
Survey ("PMMS") at time of closing; no prepayment penalties; total percentage charged for Discount,
Origination & Broker fees must not exceed 2 points; all other lending fees must be reasonable and
cannot exceed $500 or 0.5% of the loan amount, whichever is less.
Resale Restrictions:
If the owner sells and/ or transfer the house prior to the end of the City's mortgage term, the following
provisions will apply:
1. The sale of the property must be pre -approved by the City, and the new buyers must meet the
program's income limits in effect at the time AND the sales price must not exceed the maximum
affordable sales price in effect at the time.
2. For any "early" sale or transfer, the City shall share in any gain realized, based on its pro -rated
share of participation in the original purchase. Furthermore, if the sale occurs within the first 3
years, the City shall keep 100% of its pro -rated share of the "gain", from year 3 up to year 20, the
City's share of its pro -rated "gain" shall decrease by 5% every year, while in turn, the owner's
share shall increase by 5% each year. At year 20 up to the City's loan maturity, the owner shall
retain 100% of the City's gain.
3. The above shared gain proposal terminates in the event of a foreclosure, with the lender required
to provide the City the right of first refusal to purchase the loan at a negotiated price. In the case
of a foreclosure, the City will recapture any amount of net proceeds available from the sale of the
property.
NSP -Funded Rehabilitation Program
The obiective of this program is to orevent moderately declining,, neighborhoods in the City from
further deteriorating by suDDortina the principles by which the NSP program was created and by
providing an avenue to achieve decent. safe and sanitary conditions.
Eligible rehabilitations:
All repairs necessary to bring the house to a decent, safe, and sanitary condition.
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Eligible properties:
Abandoned or foreclosed upon single family residences. townhomes, and/ or condominiums
with a buyer applying through Strateav A as explained above. The propertV must be
located within the Citv of Miami.
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Strategy B: Purchase & Rehabilitation of Foreclosed &
Abandoned Properties
Program Description:
Under this strategy, the City will purchase and rehabilitate homes and residential properties that have
been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties.
The City will primarily use qualified for-profit and non-profit developers in the execution of this
strategy. Funds used for single family purchase/rehabilitation may be used as equity sharing or
down payment assistance.
1. Selection of Developers
Developers for this strategy will be selected pursuant to a Request for Proposals (RFP). The City
will solicit proposals from qualified developers for funding for the acquisition and management of
qualified properties under the NSP program.
(a) RFP Advertisement
The RFP will be advertised in a newspaper with wide circulation in the City The
advertisement will allow the public a minimum of 30 days before proposals are due, unless
otherwise warranted.
(b) Contents of RFP Advertisement
The RFP advertisement must contain at a minimum the amount of funding that will be
available, the strategy and the date, place and time the RFP will be due. It should also
provide the website where the RFP will be available for downloading and the name and
contact information, including email address of a staff person who can answer RFP
clarification questions pertaining to the RFP. The advertisement must also provide a date for
a workshop, if any.
(c) Selection Panel
The recommendation of developers through the RFP will be made by the NSP Advisory Task
Force for further selection/award of the RFP funding by the City of Miami's Housing and
Commercial Loan Committee,
2. Qualification of Developers
Developers selected for the implementation of this program must have the following qualifications
(a) A minimum of 3 years experience in constructing/rehabilitating and managing affordable
rentals or constructing/rehabilitating and sale of homeownership units.
(b) For new development entities, experience of the principals may be counted as experience of
the new entity.
(c) Experience of partners or joint ventures may only be counted with a signed partnership or
joint venture agreements.
(d) Priority may be given to qualified non-profit developers
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Eligible Singale Family Properties
For a single family property to be eligible to be included under this strategy, the property must meet
the following criteria:
a. The property must be located within the City of Miami's Areas of Greatest Need as indicated in
the new substantial amendment to the annual Action Plan FY08-09AP2
b. Be foreclosed upon or abandoned as defined by the NSP Statute and AP3.
c. Must be vacant unless the property will be sold or rented to the tenant.
d. The purchase price of the property must be at a discount of at least1 % of the appraised value.
e. The purchase price of the property and the cost of rehabilitation, if any, cannot exceed the
maximum sales price as stipulated in Local Housing Assistance Plan ("LHAP"). As of the date of
this document, the maximum sales price is $236,000.
f. The selling price of the property must be affordable to families with incomes not exceeding 120%
of Area Median as adjusted for family size.
For a multifamily property to be eligible under this strategy, it must meet the following criteria:
a. The property must be located within the City of Miami's Areas of Greatest Need as indicated in
the substantial amendment to the annual Action Plan FY08-09 AP2.
b. Be foreclosed upon or abandoned as defined by the NSP Statute.
c. Priority will be given to vacant properties; however, occupied properties may be considered if any
of the following conditions apply:
i. The property requires little or no rehabilitation. Any rehabilitation can be completed without
moving any tenant; or
ii. The property has enough vacant units to be able to move tenants from occupied units to
them after they have been rehabbed; or
iii. The operating pro -forma of the property can support a minimum of 6 months relocation and
all associated payments.
A. HOMEOWNERSHIP PROPERTIES
Program Description:
Provides assistance to developers for the purchase and rehabilitation of foreclosed or abandoned
homeownership units. The units can be condominiums, townhomes, or single family scattered sites.
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All funds used for home ownership units can be used for purchase. rehab/construction and
conversion to second mortgages or equity sharing to homeowners at 120% of HUD's Area Median
Income adiusted for family size.
Type of Assistance:
Purchase and rehabilitation soft/hard costs and/or set-aside for homebuyer assistance after
completion.
Income of buyers must be at or below 120% of Area Median Income as published annually by
HUD. Refer to the NSP Equity Sharing or NSP Down_payment Assistance Program for
additional terms and conditions.
Developers to be selected only from a Request for Proposal process, unless the proposed
development will be owned by a governmental entity. Projects will be selected based on
rankings and merits of the application.
For -sale Repayment Requirements
Forgivable purchase and rehabilitation loan can be converted to mortgages for the buyers once the
project is completed. In the case of a developer's default (incomplete project), full payment of the
construction loan and accrued default interest at the maximum rate allowed by law will apply.
In addition, the developer and all principals with a minimum of 10% share in the development will be
barred from participating in any City of Miami program for a minimum of five (5) years.
Mortgages to home buyers will have the same terms and conditions as the NSP Equity Sharing or
NSP Down Payment Assistance Program.
Amount of assistance:
Minimum: $1,000 per unit
Maximum: $120,000 per unit
Affordability Period:
30 -year affordability period.
Maximum Selling Price:
Developer's selling price cannot exceed the maximum unit sales price as stipulated in Local Housing
Assistance Plan ("LHAP"). As of the date of this document, the maximum sales price is $236,000.
Restrictive Covenant: Affordability period and gain sharing shall be enforced by a restrictive covenant
that will run with the land.
Developer Fee
Up to 1-5% of total project costs. Developer fee will be generated from sale proceeds.
Minimum Leverage Ratio
Determined on a project by project basis.
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B. MULTIFAAzILY RENTAL PROJECTS
Program Description:
Provides assistance to developers or the City for the purchase and rehabilitation affordable rental
units. All rental units. or a pro -rata share of them. shall be rented to low-income families whose
income does not exceed 50% of HUD's Area Median Income adiusted for family size.
Type of Assistance:
Purchase and rehabilitation hard and soft costs.
L Income of renters must be at or below 50% of Area Median Income as published annually by
HUD. Incomes above 50% of AMI will be approved on a case by case basis.
ii. Developers to be selected only from a Request for Proposal process. Projects will be
selected based on rankings and merits of the application.
iii. Annual compliance monitoring will be enforced for the duration of the affordability period.
Repayment Requirements
Zero (0) percent purchase and rehabilitation loan converted to a 3% permanent mortgage on the
property once the project is completed. Payment of principal and interests will be required during the
term of the loan. Or, payment of principal during the term of the loan and accrued interest can be
paid at the end of the affordability period. Determination for repayment is made at the sole discretion
of the City. For not-for-profit developers, the loan will be forgivable at the end of the affordability
period. No payment of principal and interest will be required during the affordability period.
Amount of assistance:
Minimum: $1,000 per unit
Maximum: $80,000 per unit
Affordability Period:
30 -year affordability period.
Security:
Recorded mortgage on the property. In addition, affordability period shall be enforced by a restrictive
covenant that will run with the land. In the case of phased developments, the covenant will run with
the land making up all phases of development. In the case of a developer's default, the restrictive
covenant will continue throughout the affordability period.
Developer Fee
Up to 15% of total project costs. Developer fee will only be reimbursed upon full occupancy of the
project.
Minimum Leverage Ratio
Determined on a project by project basis.
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Strategy C: Land Banking
Program Description:
Under this strategy, the City will purchase properties that have been abandoned or foreclosed upon,
provide proper maintenance to such property/ land in an effort to protect the surrounding property
values and the community. This strategy shall be utilized whenever applicable with Strategy D,
Demolition. At the City's discretion. properties that have an estimated rehabilitation cost that is 50%
or greater of the "as is" appraised value. may be recommended for demolition.
Eligible Properties:
Properties to be selected under this strategy must meet the following criteria:
a. The property must be located within the City of Miami's Areas of Greatest Need as indicated in
the substantial amendment to the annual Action Plan FY08-09 AP2
b. Be foreclosed upon or abandoned as defined by the NSP Statute.
c. Must be vacant.
Selection of Properties
List of properties meeting the eligible criteria in the AGN will be compiled by staff with assistance from
Code Enforcement, NET and Unsafe Structures. The properties with information on conditions, cost
of demolition (if any), recommended use and redevelopment schedule and cost will be presented to
the NSP Task Force for review and recommendation. The Task Force will make recommendations to
the City Manager based on the availability of funds under the program.
Strategy D: Demolition
Program Description:
This strategy may be undertaken in conjunction with Strategies, C and E. Under this strategy, an
eligible property may be demolished and the vacant land kept under the land banking strategy or
redeveloped for eligible residential use. Blighted structures not owned by the city and located in the
AGN, may be demolished without being purchased by the City. To qualify for NSP funding, blighted
structures do not have to be foreclosed.
For City acquired properties under Strategy C, the City may at its sole discretion, demolish
a structure if the City determines the rehabilitation costs exceed 50% of the appraised "as is" value of
the property.
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Eligible Properties
a. The property must be located within the City of Miami's Areas of Greatest Need as indicated in
the substantial amendment to the annual Action Plan FY08-09 AP2.
b Must be a blighted structure, or-.
c. For City acquired properties under Strategy C, the City may at its sole discretion, demolish a
structure if the Citv determines the rehabilitation costs exceed 50% of the appraised "as is" value
of the property.
Use of Vacant Parcel
Properties purchased and demolished can only be used in the following ways:
a. Developed into an eligible use under the NSP regulations.
b. Set aside under the Land Banking strategy.
Strategy E: Redevelopment
Program Description:
This strategy allows the City to redevelop demolished or vacant properties into eligible use under the
NSP program.
Eligible Properties
a. The property must be located within the City of Miami's Areas of Greatest Need as indicated in
the substantial amendment to the annual Action Plan FY08-09-AP2
b. Must have been purchased or owned by the City or purchased by a developer for use as
affordable housing At the City's sole discretion, long-term land leases would be considered.
Eligible Redevelopment
a. Property to be built must be single family or multifamily residential.
b. Redevelopment into other eligible use will only be permissible with prior approval by HUD, or
allowed under HERA.
Disposal of Redeveloped Property
Properties built under this strategy can only be used as follows:
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a. Single family properties must be sold to families with household incomes less or equal to 120% of
Area Median Income adjusted for household size.
b. Multifamily properties must be rented to households with incomes less or equal to 120% of the
Area Median Income adjusted for household size.
Loan Terms:
Terms of the assistance provided under this strategy depend on the type and use of the property
built.
The City of Miami allows a Strategy A like subsidy to stay in the property, the amount of the City's
loan will be based on the first mortgage lender's commitment or the City can finance the complete
transaction.
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