Loading...
HomeMy WebLinkAboutexhibitHousing Development Policy Attachment For FY'2005-2006 HOME Funds for Rental and Homeownership Housing Development FY'2005-2006 HOME FUNDS/RENTAL HOUSING DEVELOPMENT Homeownership vs. Rental Housing Development FY'2005-2006 commitments for brick and mortar housing development activities under the HOME program will be directed as follows: 75%- Homeownership 25%- Rental Funding of Rental Housing Development Proiects Developers of rental housing development projects seeking FY'2005-2006 HOME funds, must apply under the applicable Request for Proposals (RFP). Funding will be recommended only for projects that : ❖ Need local matching funds from the City to apply for Housing Credit funding from the Florida Housing Finance Corporation, Are approved for funding by the Florida Housing Finance Corporation, ❖ Meet all requirements, including eligibility requirements, of the applicable RFP and •:• Are approved for funding by the City of Miami Housing and Commercial Loan Committee. Leveraging Requirement for Rental Housing Development Developers of rental housing projects will continue to be required to leverage City - provided HOME funds using other public and/or private funding at a ratio of 5 to 1. GENERAL POLICY- RENTAL AND HOMEOWNERSHIP DEVELOPMENT Housing Development Application Fee All housing development projects proposed by for -profit developers will be subject to an application fee equal to 1 % of the total award approved by the City. The application fee will be refundable only to rental housing projects that apply for, but fail to win, Housing Credit funding from the Florida Housing Finance Corporation. The servicing fee is due and payable to the City of Miami within thirty (30) days from the date funding is approved by the Housing and Commercial Loan Committee. Failure to pay the application fee in full by the required date will result in forfeiture of funding approval by the City. Timing of Project Construction For any homeownership housing development 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 a maximum of thirty (30) months of executing the agreement. Leveraging Requirement Developers of homeownership housing projects funded under FY'2005-2006 HOME program will continue to be required to leverage City funds using other public and/or private funding at a ratio of 2 to 1. Developers of rental housing projects will continue to be required to leverage City -provided funds at a ratio of 5 to 1. Down payment Assistance/ Second Mortgages Funding for the clown payment assistance/second mortgage programs will continue to be project -driven depending on the structure of the contract and the maximum subsidy allowed by regulations. Funding will be in the form of zero percent (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's affordability period (20 years). In the event that the homebuyer seeks to refinance the home prior to the termination of the loan, the City Manager or designee will determine what portion of the loan must be repaid. Housing Program Management Support The Housing Program Management Support Program provides funding to non-profit developers/agencies in connection with the development of a homeownership or rental housing project. Funding will be allowed for up to 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. Project applicants must meet all requirements, including eligibility requirements of the applicable RFP to be recommended for funding and are subject to approval by the Housing and Commercial Loan Committee. Additional policies related to the Housing Program Management Support Program include: ❖ 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 •±• 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 Little Havana Homeownership Advisory Board Developers seeking funding under the Little Havana Homeownership Advisory Board (Board) set -aside must submit applications for review to the Board. Recommendations for final review by the Housing and Commercial Loan Committee will be presented by the Board.