HomeMy WebLinkAboutExhibit3-SUBCity of Miami
Department of Community Development
Housing Program Summary
MULTIFAMILY NEW CONSTRUCTION - RENTAL
Current Policy (effective 10/01/2004) j Proposed Policy (Effective 10/01/2005
Project Description
Affordable new construction rental opportunities in condominium/townhome style developments
Funding
HOME, SHIP, CDBG
No Change
Repayment
Requirements
Forgivable Loan converted to second
mortgages for the buyers once project Is
completed. In the case of a Developer
default (incomplete project) full payment of
construction loan and accrued default
interest of 6%.
completed. The construction loan will be
converted to a permanent mortgage on the
property once Drolect is completed. In the case
of a Developer default (incomplete project) full
payment of construction loan and accrued
default interest of 20%. Payment schedule will
be based according to the Drolect's cash flow.
Minimum/Maximum
Subsidy
$1,000 per unit to HUD Maximum subsidy
cap based on bedroom size (up to $85,225
for a 4 bedroom unit)
No Change
Affordability Period
20 years
30 years
Developer Fee
Up to 25% of the allowable 16% of total
project costs based on percentage of
project completion
No Change
Service Fee
1 % of City Loan due and payable as
administration fee 30 days after funding
approval.
No Change
Minimum ratio of City
funds to other funds in
the project
1:5
No Change
Type of Assistance Construction hard costs, pre -development cost and other soft costs
Priority Priority and preference for projects in Neighborhood Development Zones or Model Blocks
Clientele 80% and below of Area Median Income
Selection Process Request for Applications and or Proposals. Selections based on rankings and merits of the application
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City of Miami
Department of Community Development
Housing Program Summary
MULTIFAMILY NEW CONSTRUCTION - RENTAL.
Current Policy (effective 10/01/2004) I Proposed Polley (Effective 10/01/20+
Protect Description
Affordable new construction rental opportunities In condominium/townhome style
developments
Funding
HOME, SHIP, CDBG
No Change
Repayment
Requirements
orgivable Loan converted to second
m • gages for the buyers once project is
corn eted. In the case of a Developer
defau incomplete project) full payment
of cons - ctlon loan and accrued default
Interest of •°o.
Forgivable Loan conve to second
mortgages for the buy- • once project is
completed. In the • se of a Developer
default (incompl= protect) full payment
of constructlo oan and accrued default
interest of 2► ..
Minimum/Maximum
Subsidy
$1,000 per uni o HUD Maximum subsidy
cap based on be• oom size (up to
$85,225 for a 4 be • •• • m unit)
No Change
Affordability Period
20 yea =
30 years
Developer Fee
Up to 25% of the allowable ' 8% of tot=
project costs based on perce age •
project completion
No Change
Service Fee
1% of City Loan due and pay = , a
administration fee 30 days = ' : r fun. , •
approval.
No Change
Minimum ratio of City
funds to other funds In
the project
:5
No Change
Type of Assistance
Priority
Clientele
Selection Process
Constructio and costs, pre -development cost and o
Priority a preference for projects in Neighborhood D
80% an below of Area Median Income
Req >st for Applications and or Proposals. Selections
soft costs
opment Zones or Model Blocks
rankings and merits of the
S U SST I -I" UTE D