HomeMy WebLinkAboutExhibit4-SUBCity of Miami
Department of Community Development
Housing Program Summary
MULTIFAMILY NEW CONSTRUCTION - HOMEOWNERSHIP
Current Policy (effective 10/01/2004)
I Proposed Policy (Effective 10/01/2005
Project Description
Affordable new construction homeownership opportunities on both scattered sites and
condominium/town home style developments
Funding
SHIP, HOME, 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%.
mortgagoo for the buyoro
onco projeot-s
eomplotod. The loan willbe nsferre to
the buyer as a second mortome once
proiect is completed. In the case of a
Developer default (incomplete project) full
payment of construction loan and accrued
default interest of 20%.
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 tol6% ot total project costs.
Disbursements based on percentage of
rnmnIption
No Change
Service Fee
_proiert
1% of City Loan due and payable as good
faith commitment fee for for -profit
developers, 30 days after funding approval
to be reimbursed once the project is
complete.
No Change
Minimum ratio of City
funds to other funds
in the project _
1:2
No Change
Type of Assistance
Priority
Clientele
Selection Process
Construction hard costs, pre -development cost arid other soft costs
Priority and preference for projects In Neighborhood Development Zones or Model Blocks
80% and below of Area Median Income
Request for Applications and or Proposals. Selections based on rankings and merits of the application
05-- 0 0/ /03 -
City of Miami
Department of Community Development
Housing Program Summary
MULTIFAMILY NEW CONSTRUCTION - HOMEOWNERSHIP
Current Polley (effective 10/01/2004)
Proposed Pollcy (Effective 10/01/2006
Project Descript
Affordable new construction homeownership opportunities on both scattered sites and
condominium/town home style developments
Funding
SHIP, HOME, CDBG
No Change
Repayment
Requirements
•rgivable Loan converted to second
m • • _ ages for the buyers once project Is
com• ted. In the case of a Developer
default .complete project) full payment of
constructl. ' loan end accrued default
interest of 8' .
Forgivable Loan converted to - _ �..nd
mortgages for the buyers on - project is
completed. In the case of Developer
default (Incomplete proj ) full payment of
construction loan an• ccrued default
interest of 20%.
Minimum/Maximum
Subsidy
$1,000 per unit to , UD Maximum subsidy
cap based on bedro• slze (up to $85,225
for a 4 bedroom unit)
No Change
Affordability Period
20 Years
30 Years
Developer Fee
Up to18% of total project cos .
Disbursements based on percen - •e of
orolect cmmnlatlon
No Change
Service Fee
1 % of City Loan due and payable as g • • •
faith commitment fee for for -profit
developers, 30 days after funding aroyal
to be reimbursed once the proje
complete.
No Change
Minimum ratio of City
funds to other funds
in the project
1:2
No Change
Type of Assistance
Priority
Clientele
Selection Process
Construction hard •sts, pre -development cost and other soft cos
Priority and p = rence for projects In Neighborhood Development Zo s or Model Blocks
80% and be - of Area Median Income
Request .r Applications and or Proposals. Selections based on rankings a , merits of the application
Sur 1TUTED