Loading...
HomeMy WebLinkAboutexhibit 2-policy30th Year Housing Development Policy District 4 Housing Pilot Project 30th Year Community Development Block Grant ("CDBG") funds are allocated to the District 4 Housing Pilot Project for acquisition and construction for scattered site affordable home development. First -Time Homebuyer Assistance will be made available to low-income homebuyers 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 30t Program Year funding of new construction — Homeownership housing is limited to (75%) seventy-five percent and (25%) twenty-five percent rental housing of available HOME Program funds. • Housing Program Management Spport Program: Funding to Community Housing Development Organizations (CHDO)/developers/agencies in connection with the development of a homeownership or affordable rental housing project. This funding is limited to a maximum of three (3) years, not to exceed a total of $150,000 per project regardless of the number of City assisted units or total number of units in the project. Reimbursement will be based upon negotiated benchmarks. Additional policies related to the Housing Program Management Support Program include: o No more than 50% of the total award may be disbursed before permits have been issued, o Funding is provided for the appropriate October 1ST through September 30TH Program Year, and o 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 deobligation. • 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. The fee collected will be used to fund future affordable housing projects through an Affordable Housing Reserve Account. • 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. The Developer Fee is designed to cover developer profit, as well as all administrative costs, of the project. Disbursement of Developer Fee is based on percentage of total project completion. Affordability Period The minimum period during which the project must maintain affordability and occupancy by eligible individuals or families is specified by segment below: • Homeownership Project Affordability Period: 20 Year Affordability • Rental Project Affordability Period Total funds per Assisted Unit Minimum Affordability Period (in years) *Rehab: Under $15,000 5 *Rehab: $15,000 to $40,000 10 All New Construction 20 *Rehab = Rehabilitation of existing building • Maximum Proiect Subsidy: Provides financial assistance to first-time low -and moderate -income homebuyers in the form of a closing cost, down payment, buy - down and/or mortgage loan for the purchase of a home. The home must be a primary residence and owner -occupied. All financial assistance is deferred for a maximum of 20 years at a 0% interest rate. if the property is sold or transferred prior to the 20th year, all financial assistance is due and payable to the City. The maximum subsidy per eligible home purchase may not exceed the per -unit dollar limits. 2004 Maximum Per -Unit Subsidy: Statutory Mortgage Limits Sec. 221(d) (3) issued 11/2003 Bedrooms Subsidy Amount 0 $42,980 1 $49,557 2 $59,766 3 $76,501 4 $85,225 For projects funded to developers, the maximum project subsidy may be eligible for use for pre -development, land acquisition and/or construction costs, depending on project need and subject to Housing and Commercial Loan Committee approval. 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 -serve basis: • Single Family Rehabilitation • First -Time Homebuyer Assistance Single Family Rehabilitation Program: Funding to individual low -and moderate -income homeowners for the rehabilitation of their principal residence. Funds will be awarded on a priority basis through the Code Compliance process. o The affordability period and term of the loan will be ten (10) years, regardless of funding source. o Assistance per eligible home will be subject to regulations covering the funding source, not to exceed $30,000. o Funding will be in the form of a three (3%) interest, deferred forgivable loan. o The loan will become due and payable, in full, at sale, or in the event that the property is leased or rented during the Affordability Period of the loan. o Property must be kept Code Compliant. 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. • Other Program Requirements: o Leveraging requirements on City funding are: ■ Homeownership — 2:1 ■ Rental — 5:1 o Maximum sales price will be $ 199,117 for a new home and $173,701 for an existing housing projects regardless of funding. Priority Homeownership Assistance to City of Miami Residents Financial assistance will be given on a priority basis to City of Miami residents who meet certain eligibility requirements and: • Need replacement home assistance on an existing property • Are interested in purchasing an affordable home within the City of Miami and the home contains some rehabilitation costs • Are currently renting and are looking to purchase an affordable home within the City of Miami limits The following programs are available to existing City of Miami residents and those interested in moving into the City limits. The American Dream Down Payment Assistance Initiative ADDI funds may only be used for down payment assistance towards the purchase of single family housing by low-income families who are first-time homebuyers. Rehabilitation that is completed in conjunction with a home purchase assisted with ADDI funds is also eligible. The amount of ADDI assistance provided to any low-income family cannot exceed the greater of six percent or the purchase price of a single family housing unit or $10,000. Single Family Replacement Home Program The Single Family Replacement Housing Program is designed to address substandard and dilapidated housing units. This is to assist existing owners of single family homes where the most appropriate solution to their housing problem would be to demolish the existing structure and replace it with a newly constructed housing unit on the exiting lot. The amount of the financial assistance provided is not to exceed $95,000. The funds can be used to: • defray the cost of temporary relocation expenses • demolition of the dilapidated structure • construction costs associated with the reconstruction of the new home. Financial assistance will be provided to eligible homeowners based on incomes adjusted for household size. The terms will be a zero (0) to three (3) percent loan that will be repaid in fifteen (15) or twenty (20) years based on income levels. Payments of the loan will begin six (6) months from the issuance of a certificate of completion and occupancy of the home. The following are the repayment schedules based on income: 1. Applicants with incomes less than 50% of median income, will receive a zero percent (0%) non -amortizing deferred loan with a term of fifteen years. 2. Applicants with incomes at fifty percent (50%) or higher but less than sixty percent (60%) of median income will receive a one percent (1 %) fully amortizing loan with a term of 20 years. 3. Applicants with incomes at sixty percent (60%) or higher but less than seventy percent (70%) of median income will receive a two percent (2%) fully amortizing loan with a term of 20 years. 4. Applicants with incomes at seventy (70%) or higher but Tess or equal to eighty (80%) of median income will receive a three percent (3%) fully amortizing loan with a term of 20 years. Single Family Purchase/Rehabilitation Program The Single Family Purchase/Rehabilitation Program will provide rehabilitation assistance to very low, low and moderate income residents who are looking to purchase an affordable property within the corporate limits of the City of Miami. The City will provide deferred payment loan assistance to an eligible homeowner to complete needed repairs such as roofing, plumbing and electrical work to meet the decent, safe and sanitary standard conditions after rehabilitation. Other selection criteria will include the following: • The property shall consist of one (1) owner -occupied residential unit. • Preference will be given to eligible handicapped disabled and elderly (62 years or older) households and homeowners. • The property must be located in the City of Miami. • The appraised value of the home may not exceed the maximum purchase price limits (value) allowed under the program. • The property must require needed repairs such as roofing, plumbing and electrical work to meet the decent, safe and sanitary standard conditions after rehabilitation. • The applicant may not be delinquent on any debt owed to the City of Miami.