HomeMy WebLinkAboutpre memo' APR-28--2004 10 : 42 CITY CLERKS OFFICE
305 858 1610 P.07
CITY OF MIAMI, FLORIDA 20
INTER -OFFICE MEMORANDUM
70 : The Honorable May
Memo >rs of The Ci
FROM:
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.Toe is
City alter
R. V Ej' P4TTQN:
APR 29 2003
DATE : FILE :
29th Year CDBG and HOME
soelece : Funds: Housing Development
Policy, District 4 Pilot and Little
Havana Home Ownership Trust
REFERENCES:
ENCLOSURE$: City Commission Agenda
May 8, 2003
It is respectfully recommended that the City Commission adopt the attached Resolution, with
attachment, allocating 20 Year Community Development Block Grant (CDBG) Program funds
of $1,500,000 to create the Little Havana Home Ownership Zone Trust and 29th Year HOME
Investment Partnerships (HOME) Program funds of $500,000 to create the District 4 Housing
Pilot Project for the development of affordable housing and further adopting policies related to
the Housing :Development category of the 20 Year CMG Program and the homeownership
activities of the HOME Program, as pax the attachment, for the balance of the available funds, in
the amount of'$503,600 and $3,355,685, respectively.
1AC1(GROIND:
Under the entitlement formula, the U.S. Department of Housing and Urban. Development (U,S.
HUD) has advised the City that the projected 29th Program Year entitlement for Community
Development Block Grant (CDBG) Program will be approximately $10,132,000 and for HOME
Investment Partnerships (HOME) Program will be approximately $5,140,914. Approximately
$2,003,600 in 29a' Year CDBG Program funds is earmarked for the Housing Development
category and $3,855,685 in HOME Program funds, representing 75% of the 29th Year
entitlement, is earmarked for homeownership activities.
The Administation recoutrmends that the City Commission approve the allocation of $1,500,000
from the 29a' Year CDBO Program funds to create the Little Havana Home Ownership Zone
Trust and the allocation of $500,000 from the 29s` Year HOME Program funds to create the
District 4 Housing Pilot Project for the development of affordable housing. The allocation to the
Little Havana Home Ownership Zone Trust represents the first year of a five (5) year
co:mmitmeatt, with each subsequent year's funding source to be determined at the time of
allocation. The allocation to the Mallet :t 4 Housing Pilot Project represents the first year of a
three (3) year commitment, with each subsequent year's funding source to be determined at the
time of allocation.
For the allocation of the remaining 29th Year CDBG and HOME Program funding, the
Administration recommends that the City Commission establish a policy for funding housing
development activities that continues to encourage public/private partnerships through the
Request for Proposal (RFP) process. To provide focus to the competitive RFP process, the
Administration recommends that proposals for 29th Year CDBG Program funding of housing
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CITY CLERKS OFFICE 305 858 1610 P.08
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homeownership projects. This represents an amendment to Resolution No. 98-587, adopted by
the City Commission on July 9, 1998, which required leveraging of 5:1 for rental housing
projects and 3:1 for homeownership projects.
The down payment assistance and second mortgage programs for CDBG and HOME funding
will be project -driven. The maximum funding per eligible home purchase will be $30,000.
Homebuyer eligibility will be based on the City's State Housing Initiatives Partnership (SHIP)
Homebuyer Financing program except where CDBG or HOME Program requirements axe more
restrictive. Funding will be in the form, of 0% interest deferred loans which will come due and
payable, in full, at sale or in the event that the property is leased or rented during the term of the
loan. In the event that the hoxnebuyer seek to refinance the home prior to the termination of the
10E111, the City Manager or designee will determine what portion of the loan must be repaid.
It is recommended that the City Commission adopt the attached Resolution, with attachment,
allocating 20 Year Community Development Block Grant (CDBG) Program funds of
$1,500,000 to create the Little Havana Home Ownership Zone Trust and 29 Year HOME
Investment Partnerships (HOME) Program funds of $500,000 to create the District 4 Housing
Pilot Project for the development of affordable housing and fiirthex adopting policies related to
the Housing Development category of the 29" Year CDBG Program and the homeownership
activities of the HOME Program, as per the attachment, for the balance of the available funds, in
the arnount of $503,600 and $3,355,685, respectively.
The proposed Resolution does not have a budgetary impact on the General Fund.
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