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NLwMIAMI
To: Honorable Mayor and
Members of the City Commission
From: Marva L. Wiley, Acting President/CEO of the Model City TrustkVJ'.
Subject: Replacement of HOME Investment Partnership Funds
Date: April 7, 2004
RECOMMENDATION:
It is respectfully requested that the City Commission approve the attached
resolution authorizing an additional $1.8 Million in Homeland
Defense/Neighborhood Improvement Bond designated for Model City
Infrastructure Improvements for the refund of prior expenses in HOME
Investment Partnership Program ("HOME") dollars and current land acquisition
in the Model City Homeownership Zone.
BACKGROUND:
In February 2003, the Model City Trust was asked to reimbursement $1,815,133
of land acquisition expenses incurred with HOME dollars for the Model City
Homeownership Zone Pilot Project between February and May of 2002. In April
2003, the City Commission authorized that amount to reimburse the HOME
Investment Partnership Program credit line for those acquisitions.
Later, it became apparent that the List of properties used to establish the $1.8
Million list included in error several properties that had not closed.
Additionally, several expenses that were defined as acquisition had not been
included in the amount requested for reimbursement (e.g., a 1st position
mortgage interest on Miami Limited properties, taxes paid on Miami Limited
properties to secure the City's interest, etc.)
In the interest of totally purging all land acquisition costs from the HOME
account, the Department of Community Development has requested that the full
amount of expenses for "Acquisition" for the Model City Homeownership Zone
Pilot Project against the HOME credit line be refunded. Though the Department
of Community Development and the Model City Trust is working to find
supporting documentation for the listed transactions and reconcile the
acquisition list, currently the anticipated amount for refund is anticipated to be
$2.4 Million.
Presumably the Trust/City is in a better position to obtain its goal of mixed
income homeownership with the acquisitions funded by a source other than the
HOME dollars. The federal entitlement dollars that are made available in the
project are then available for such purposes as infrastructure improvements and
second mortgages to subsidize home purchases.
The additional dollars available after the reimbursement of the HOME credit line
are sought to facilitate certain strategic acquisitions that advance the
implementation of the master plan that the City Commission approved in
December 2003.
/MLW