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HomeMy WebLinkAboutloan committeeCITY OF MIAMI HOUSING AND COMMERCIAL LOAN COMMITTEE Summary of Meeting Held: October 11, 2002, @ 9AM City of Miami 444 SW 2" Avenue 3rd Floor South Conference Room Approved 11/07/02 as Corrected In attendance: Mr. Alphonso Brewster, Committee Member Ms. Ann Kashmer, Committee Member Mr. Sam Miles, Committee Member Mr. Robert Nachlinger, Committee Member Ms. Carmen Sanchez, Committee Member Mr. Frank Santana, Committee Member Mr. Scott Simpson, Committee Member Ms. Cecilia la Villa-Travieso, Committee Member Ms. Lydia Beltran, City of Miami Staff Mr. Dan Femandes, City of Miami Staff Ms. Barbara Gomez -Rodriguez, City of Miami Staff Ms. Ana Mendoza, City of Miami Staff Ms. Robin Sloan, City of Miami Staff Ms. Ilene Temchin, City of Miami Staff Mr. Clyde Judson, Judson and Partners/BAME, Guest Mr. Alberto Milo Jr. The Urban Development Group, Guest Mr. Luis Gonzalez, The Carlisle Group, Guest Mr. Sean Schwinghammer, Pinnacle Group, Guest Ms. Kathy Bums, Habitat for Humanity, Guest Ms. Anne Manning, Habitat for Humanity, Guest • Item I on the Agenda - The Housing and Commercial Loan Committee Meeting was called to order at 9:25 AM. • Item II on the Agenda — August 22, 2002 and September 13, 2002 Minutes to be approved. Corrections were noted that there was one abstention on the Wynwood and two abstentions on the Rayos del Sol and corrections were noted: the spelling of Ann Kasmer and Alphonso Brewster's names and inclusion of Mr. Cabrera's first name. A motion was made to approve August 22, 2002 and September 13, 2002 as corrected. Motion passed unanimously 1 • Item III on the Agenda - Discussion/recommendations pertaining to the 2002-2003 HOME Request for Proposals (RFP) funding. Staff recommended that seven of the ten applications not be funded (as detailed in attached write- up). Discussion was held regarding several applications including a project consisting of one manufactured home which is a type of housing that the City has not funded in the past. Ms. Kashmer reported that the State is recognizing manufactured housing as a key component of affordable housing with one of six homeowners living in manufactured homes. Mr. Brewster reported that there was no law in the County prohibiting manufactured housing but that the value depreciates as the housing ages and that homeowners need to be aware of this prior to purchase. It was suggested that Staff research the potential for this type of housing. It was further suggested that it could be an item for discussion in the upcoming Housing Summit which will involve non- profits, and local funding entities. The Housing Summit will address administrative funding and how to merge requirements and funding schedules. In addition, it was asked whether Jubilee Community Development Corporation would be affected by not receiving HOME funding. It was reported that the project would be affected but there are concerns regarding the lack of progress with two City funded projects. Staff will be meeting with Jubilee to further discuss the Rio del Sol and that it is anticipated that the Pueblo del Sol will start up within a reasonable timeframe. A motion was made to accept Staff's recommendations. Motion passed unanimously. • Item IV on the Agenda - Discussion/recommendations pertaining to Habitat for Humanity. Habitat requested that the $400,000 which was approved for HOME Program funds in February 15, 2001, for acquisition and construction be approved for homebuyer down payment assistance. It was reported by Ms. Anne Manning, Executive Director of Habitat for Humanity that the land for the project is being donated. A motion was made to accept Staff's recommendation to finance homeowner down payment assistance. Motion passed unanimously. • Item V on the Agenda - Discussion/recommendations pertaining to New Century Development Corporation/The Carlisle Group-Allapattah Garden Apartments project. The Borrower's request included (1) that the loan commitment be extended to December 31, 2002, (2) that the HOME loan be re -paid with available cash flow from the project over the thirty year period and (3) that the Limited Partner be changed to Related Corporate Partners XXII, L.P. It was reported by Ms. Temchin that the Borrower also wanted the Loan to go to New Century Development/The Carlisle Group and then flip the money to Allapattah Gardens Ltd. and that this type of transaction was approved under the Commission and advised that the Committee would have to undergo the same approval process. 2 Mr. Luis Gonzalez, representing the Borrower stated that the funds would be re -loaned to Allapatah Garden Apartments Ltd. because it will be developed by them. It was confirmed that three principals of The Carlisle Group would still personally guarantee the loan. Ms. Temchin also reported that this type of transaction would include a note and mortgage going from the single asset entity, Allapattah Garden Apartments, Ltd., to New Century Development and The Carlisle Group which will be assigned to the City. The City will have the obligation of the New Century Development/The Carlisle Group and the obligation between the project sponsor and the developer. A motion was made to approve funds to be transferred to Allapatah Garden Apartments, Ltd. from New Century Development/The Carlisle Group. Motion passed unanimously. Discussion was also held regarding Staffs recommendation a s stated above with regards to the HOME loan to be paid with available cash flow over the thirty (30) year affordability period. The funds have to be considered as a loan in order to meet the tax credit criteria. Several tax credit projects have been structured as such. It was clarified that if the project experiences a cash flow, it will be paid to the City. Although the original loan terms would have allowed for the repayment of $400,000, this structure would allow for the City to be paid on the basis of cash flow without jeopardizing the project and will secure 128 units of affordable low income housing in combination with tax credits. A motion was made to accept Staffs recommendations. Motion passed unanimously. • Item VI on the Agenda - Discussion/recommendations pertaining to BAME Development Corporation -New Hope Overtown. Discussion was held regarding (1) acceptance of the attached pro forma to meet conditions imposed by the June 26, 2001 Loan Committee for the approval of the $538,000 shortfall funding, (2) extend the Contract through December 31, 2003 and (3) reduce affordable units from 40 to 21 single family homes with the remainder to be sold at market rate. Ms. Rodriguez reported that the Local Initiatives Support Corporation (LISC) is meeting with BAME on a monthly basis to provide guidance in progress of the project. Start-up of construction is scheduled for November 1st. The project experienced major delays related to existing conditions of fiber optic materials which are currently being remedied. Ms. Rodriguez also reported that the change in units is based on the request of the private funding and residents in the area for mixed income households to include teachers and police officers. In addition, it was confirmed that the down payment assistance would be available to those of 80% of average median income for 21 units. A motion was made to approve Staffs recommendation. The motion was moved and seconded. 3