HomeMy WebLinkAboutexhibit30th Year Housing Development Policy Attachment
District 4 Housing Pilot Proeect
30th Year CDBCT funds are allocated to the District 4 Housing Pilot Project for the acquisition of
land for scattered site affordable borne development. First -Time Homcbuyer Assistance will be
made available to low-income hoinebuyer.s in conjunction with this project. This allocation
represents the second year of a three (3) year commitment, with each subsequent year's funding
source to be determined at the time of allocation.
Eligible Housing Development Programs
30th Program Year funding of new construction - rental housing is limited to twenty-five percent
(25%) of PIOME Program funds. All other funds designated for housing development will be
allocated to homeownership activities. The ,Following homeownership housing programs will be
offered through the 30`h Program Year Request for Proposal (REP) process.
) New Construction -- Homeownership
> Housing Program. M.an.agement Support
Request for Proposals Criteria and Eligibility: Developers seeking finding in the 30th
Program Year must submit an. application through under the appropriate RFP. Only project
applications that meet all, requirements, including the following minimum eligibility
requirements, of the applicable RIP will he recommended for funding to the I-Iousing and
Commercial Loan Committee.
o The applicant and related City -funded entities must be current with OMB A-133
(audited. financial statements) requirements at the time of application submission.
a Applicant and related City -funded. entities must resolve any delinquencies on amounts
due to the City prior to application submission
o All City monitoring and/or audit findings for the applicant and related City -funded
entities must be resolved to the satisfaction of the Administration prior to application
submission.
o The project application must score no less than 75 points on. the appropriate RFP
rating criteria.
o Construction mast be ready to begin within six (6) months and be able to be
completed within thirty (30) months of executing agreements with the City.
o Applicants seeking CDBG funding for housing activities must meet Community
Based Development Organization (CBDO) criteria as required by applicable federal
regulations and must either undertake the activity directly or through contracts under
which the CBDO clearly has the major direct and controlling interest in how and
where the activities are undertaken,
• T!ousii g Program Management Support Program: Funding to non-profit developers/
agencies in connection wi.th the d,evclopment of a homeownership or rental affordable
housing project. This funding is limited to a maximum of three (3) years, not to exceed a
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total of, $1.50,000 per project regardless of the number of City assisted units or total number
of units in the project. Additional policies related to the Housing Program Management
Support Program. include:
0 No more than. 50% of the total award may be disbursed before permits have been
issued,
Funding is provided for the appropriate October 1 through September 30 Program
Year, and
Final disbursement of funds must occur within thirty (30) days after the end of the
Program Year, with the unexpended award balance subject to automatic de -
obligation.
• Housing Development Application Fee: An application fee of 1 % of the total award
amount is due and payable within, thirty (30) days of funding approval by the Housing and
Commercial Loan Committee from for -profit developers of housing development projects.
The application fee will. be refundable only to rental housing development projects that apply
for, but fail to win, approval for Housing Credit funding from the Florida Housing Finance
Corporation. Failure to pay the application fee in full by the required date will result in
forfeiture of funding approval. by the City.
Developer Fee .Disbursement: All developers of affordable housing projects may include a
Developer Fee not to exceed 16% of total project costs excluding the cost of land and/or
building acquisition, except where otherwise prohibited or limited by funding source
regulations. Th.e Developer Fee is designed to cover developer profit, as well as all
administrative costs related to the development and sale or initial lease -up, including
mar.ketin.g costs, of the project, Disbursement of Developer Fee is based on percentage of
total project completion.
If the project is not completed within the timefrarne specified, developer fees disbursed on
the project trust be repaid to the City, in full, along with interest accrued itt accordance with.
th.e executed agreement. A developer that does not deliver the committed affordable housing
units and is unable to make full repayment of the disbursed developer fees, will not be
eligible to apply for or receive City funding.
City -Administered Homeownership Programs; The following homeownership programs
administered by the Department of Community Development will receive 30th Year Program
funds on a first -come, first -served basis:
First Time Homebuyer Assistance
Y Single Family Rehabilitation
First Time fomebuver Assistance Program: provides financial assistance to first-time
low- and moderate -income homebuyers in the form of a closing cost, down payment and/or
mortgage loan for the purchase of a borne. The maximum Homebuyer Assistance per
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eligible home purchase cannot exceed the greater of: (i) 25% of the purchase price, or (ii)
$30,000.
• Single Family Rehabilitation Program: Funding to individual low- and moderate -income
homeowners for the rehabilitation of their principal residence. Funds will be awarded
through the Code Compliance process.
• Other Program Requirements:
o Homeownership Leveraging Requirement - 2:1 on City funding
• Maximum sale price will be $150,000 on housing projects awarded funds in the 30th
Program Your, regardless of funding source.
• First Time Hoanebu.yer, Assistance & Single Family Rehabilitation Programs:
A The affordability period and term of the loanwill be twenty (20) years,
regardless of funding source.
• Assistance per eligible home will be subject to regulations covering the funding
source, not to exceed $30,000.
• Funding will be in the form of a zero percent (0%) interest, deferred loan
• The loan will come clue and payable, in full, at sale or in the event that the
property is leased or rented during the term of the loan.
• Prior approval from the City Manager is required for the homebuyer to
refinance the home prior to the termination of the loan. Based on the impact of
the refinancing, the City Manager or designee will determine whether the loan
must be repaid at that time.
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