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HomeMy WebLinkAboutpre priority activitiesPPR--28-2004 10: 42 CITY CLERKS OFFICE 305 858 1610 P.10 development activities and HOME Prograin funding of homeownership activities be limited to programs designated as a District priority, according to the chart below. District Stith $$Y •tire° District 1 - (1) Down payment Assistance / Second Mortgage (2) New Construction, Homeownership District 2 - (1) New Construction, Homeownership (2) Down payment Assistance / Second Mortgage District 3 - (1) Down payment Assistance / Second Mortgage (2) Multi -family Rehabilitation (3) New Construction, Homeownership District 4 - (1) Multi -family Rehabilitation (2) Down payment Assistance / Second Mortgage (3) New Construction, Homeownership District 5 - (1) New Construction, Homeownership (2) Down payment Assistance / Second Mortgage Housing is one of the funding priorities set forth in the City's Action Plan for the 291 Program Year. It is recommended that the City Commission continue the policy of directing 75% of HOME Program funds for Brick and Mortar housing development activities to new construction of homeownership units and 25% to rehabilitation and new construction of rental housing. Under this scenario, there will be a single RFP published for 29th Year CMG. and HOME Promo funding covering the activities designated above by District. Housing administrative costs on Brick and Mortar activities of affordable housing projects will be covered through developer fees of funded projects, thereby eliminating the use of U.S. HUD funds for housing 9rinni„istration. Priority will be given to Community Housing Development Organizations (CHDOs) in all funded activities. Funding of down payment assistance and second mortgages must be projeci-driven. New construction of homeownership projects and projects requesting down payment assistance and second mortgages will be considered in all Districts. Multi -family Rehabilitation projects will be considered only in District 3 and District 4. For a project to be eligible for funding, construction must be ready to begin within six (6) months of executing an agreement with the City and the project must be able to be completed within twenty-four (24) months of executing the agreement. Brick and Mortar housing development proposals submitted outside the RFP process seeking gap flnanel g due to unforeseen cost overruns for projects which are consistent with the City's Action Plan and policy may be considered for funding pending availability of funds from other projects which, have been deobliga'ied or which are suffering significant delays. Current procedure, as per the settlement of the Audit Report issued by the Office of the Inspector General March 27, 1998, requires fimding approval of all housing development projects by the Housing and Commercial Loan Committee. The Administration further recommends that developers be required to leverage City funds using other public, and/or private funding at a minimum of 5:1 for rental housing projects and 2:1 for TOTAL P.10