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HomeMy WebLinkAboutExhibit 1AConsolidated Plan Reference Code: 1PP (a) Strategy: Achieve identified projects for quality public facilities which are responsive to the unique character and differing needs of individual neighborhoods, taking into consideration the needs of low and moderate income community members. Targeted Outcome: Improve the health and welfare of target neighborhoods through the revitalization of public facilities and parks open to the general public. Source: CDI3G Historic Preservation The National Historic Preservation Act of 1966 directs federal agencies to take into account the effects of their undertakings on historic properties. The regulations are mandated under Section 106 (36 CFR 800). Furthermore, this implies that public or private places can be rehabbed if they are eligible to be on the national list of Historic Places or are officially recognized by state or local law, as such. This category also authorizes the costs of preserving or restoring properties of historic significance, whether publicly or privately owned. The following are potentially eligible categories for CDBG assistance under historic preservation: 1) events significant in the broad patterns of our history; persons significant in our past; distinctive characteristics of type, period, method of construction, or the work of a master, or possessing high artistic values; yielding information important to history of prehistory. (24 CFR 570.202 (d)) Preserving the historic resources of the City of Miami is essential because of its importance to the City's common history and community pride. The City will work with the structures it has inherited in the course of historical transformation. The mission is to properly restore historic sites by reversing the cycle of decay through reconstruction and rehabilitation of the identified monument. 1. Activity: Provide funding of special projects directed toward the rehabilitation, preservation, and restoration of historic properties. Consolidated Plan Reference Code: 1 HP (a) Strategy: Encourage and support the restoration and preservation of sites and structures that have historical significance when such restoration activities comply with CDBG program national objectives. Targeted Outcome: Meeting the needs of the City's historic sites on a case by case basis as the needs arise during the time frame of the Consolidated Plan. Source: CDBG Infrastructure The City will ensure that targeted revitalization areas are adequately served and well-preserved. Community development studies have demonstrated a need to replace deteriorated streets, curbs, sidewalks, lights, and community facilities. The Department of Community Development will contribute CDBG dollars in eligible projects and neighborhoods, to address such conditions. Nevertheless, due to insufficient funds in other City departments committed to such improvements, the Department of Community Development will allocate funding to those projects and neighborhoods deemed as CDBG compatible and as opportunities arise on a case -by -case basis throughout the life of this plan. 2005-2006 Action Plan 56 1. Activity: Ensure that CDBG target areas are adequately restored and preserved to current City standards. Consolidated Plan Reference Code: 1 IF (a) Strategy: Provide, to the greatest extent possible all necessary public infrastructures to support the development of lower -income neighborhoods. Targeted Outcome: Create safe, attractive and accessible neighborhoods through the stimulation of economic growth and infrastructure improvement. Source: CDBG Other Community Development Needs Administration and Planning: CDBG and HOME funds are allowed to cover general and reasonable costs related to the planning and execution of community development activities, assisted in whole or partially. These costs are not directly related to providing a specific activity. Program administration includes items such as overall management, coordination, monitoring, and evaluation of the jurisdictions programs. Some of the tasks affiliated with program administration are preparing budgets, performance reports, and staff salaries. The use of program administration has a monetary cap responsive to distinctive grants. The following are the cap limitations set -forth for the subsequent categories: the cap limitation for CDBG funds states that no more than 20% of grant funds plus program income may be used for planning and administration; the cap limitations for the HOME program funds states that nor more than 10% of grant funds plus program income may be used for administration costs. (24 CFR 570.206 (a) (1)) (24 CFR 92.207HOME) Section 108 Loan: This is a very technical aspect of CDBG but very practical if put into practice accordingly. Section 108 loan is an extension of the CDBG program it involves the pledging up to five years of a community's entire CDBG entitlement as backup collateral for a loan. In other words, if something goes wrong with the project financed with a loan guaranteed by Section 108, then CDBG money must be used to pay off the obligation. Section 108 loans serve as the following: a tool to accelerate current CDBG activities; an opportunity to match sources; a means of providing long-term fixed rate financing; and a tool to receive funds without obligating general tax funds. The loan terms may last up to twenty (20) years. Some of the eligible activities under a 108 loan include but not limited to acquisition for economic development activities, acquisition, rehabilitation of real property owned or acquired by a public entity, clearance, demolition, site preparation for construction or reconstruction of public site improvements, and housing rehab and preservation. (24 CFR 570.703 & 705) 2005-2006 Action Plan 57 IX. HOME Home Investment Partnership Program HUD's Home Investment Partnerships (HOME) Program is intended to increase the supply of safe, decent, sanitary, and affordable housing for low and very -low-income households. HOME also seeks to expand the capacity of nonprofit housing providers through CHDOs. Jurisdictions can use HOME funds to carry out a wide variety of housing activities for low- and very low-income families, including: • Homebuyer programs, which may include downpayment and closing costs assistance, construction loans, or loan guarantees for acquisition, rehabilitation, or new construction; • Rental housing programs, consisting of construction loans, permanent mortgage loans, bridge loans, or loan guarantees for acquisition, rehabilitation, new construction, and refinancing; • Homeowner rehabilitation programs, including grants, loans, interest subsidies, and loan guarantees to pay for hard costs, related soft costs, and refinancing expenses; and • Tenant -based rental assistance (TBRA) to pay for rent, utility costs, security deposits, and utility deposits. The City of Miami offers three major programs funded under HUD's HOME Program: ▪ Homeownership New Construction Program • First Time Homebuyer Assistance Program • Multifamily Rental Housing New Construction Program Homeownership projects for affordable housing will receive 75% of the City's HOME funds plus 100% of American Dream Downpayment Initiative (ADDI) funds. The remaining 25% of HOME funds will be directed toward the development of affordable rental housing units. City homeownership programs offering HOME funds are supplemented by other funding sources to maximize the benefits of the City's overall strategy. Funding Source HOME Program City of Miami Programs Annual Performance Measures New construction • Homeownership New Construction Program • Multi-famil Rental New Construction Pro:ram 95 housing units 250 housin. units Homebuyer Assistance ■ First Time Homebuyer Assistance Program 50 housing units The HOME programs are designed to further the City's overall housing development strategy as outlined in the Five Year Consolidated Plan and to meet the objectives of the National Affordable Housing Act of 1990 (NAHA). The NAHA objectives are to: 2005-2006 Action Plan 58 • Provide decent affordable housing to lower -income households ■ Expand the capacity of non-profit housing providers ■ Strengthen the ability of state and local governments to provide housing • Leverage private -sector participation Affordable Housing Strategy The City of Miami will use HOME funds to carry out the housing development strategy described in the Consolidated Plan for 2004-2009. According to the Consolidated Plan, the top priority for the City of Miami is to preserve affordable housing for low and moderate income families. To do this, the City of Miami will implement of a four -tiered strategy that focuses on: • Preserving affordable rental housing for those most in need of housing assistance through rehabilitation of existing rental stock and new construction. As recommended in the Consolidated Plan, the focus will be on serving those that are most in need of rental assistance, namely small families and single person households below 80% of the median income (with the elderly at 30% below the median income demonstrating the most need). ■ Assisting existing homeowners to retain and maintain their homes through rehab assistance. The goal will be to provide financial assistance low and moderate income homeowners who lack the financial capacity and/or credit history required to obtain home repair financing from private lenders. Preference will be given to homeowners in the Model Blocks and to the elderly, disabled and persons with H1V/AIDS that are between 51 to 80% of the MFI. ■ Preserving affordable homeownership opportunities for working families who may be eligible for homeownership but may be priced out of the market due to the escalating cost of real estate, The City will seek to increase the inventory of affordable homeownership units through new construction and the creation of a Purchase Rehab program. It will also provide second mortgage, down payment, and closing cost assistance to hoinebuyers. ■ Stimulating affordable housing development through the creation ofa land acquisition program and other incentives. The intent is to create incentives that off -set the barriers that make it difficult to undertake affordable housing projects. These strategies will be achieved through new in -fill housing initiatives in the City's distressed neighborhoods. These in -fill initiatives will develop properties in the targeted Neighborhood Development Zones as well as channeling substantial financial resources into intensive redevelopment and development of vacant residential parcels throughout the City. The in -fill housing strategy will be supplemented with multi -unit development in the form of condominiums, town homes and groups of detached homes, to provide a variety of housing alternatives. The Neighborhood Development Zones include Allapattah, Coconut Grove, Edison/Little River/ Little Haiti , East Little Havana, Model City, Overtown and Wynwood. The Neighborhood Development Zones were identified in the City's Five -Year Consolidated Plan for intensive efforts to foster economic redevelopment, preserve affordable housing and improve overall neighborhood quality. The Model Blocks will provide the primary location for the development of new affordable homeownership and rental housing units through a cooperative effort with the private sector housing industry, not -for -profit community development corporations (CRCs), Miami -Dade County, the State 2005-2006 Action Plan 59 of Florida and private banking institutions that have made financial commitments through the Empowerment Zone, The following section provides a description of the various HOME programs that will be used to carry out the strategies described above. Homeownership New Construction Program The Homeownership New Construction Program is designed to provide assistance to developers for the production of new homeownership units for purchase by low-income homebuyers. Home Program funds will be provided for project -specific technical assistance, land acquisition, site development, construction and soft costs associated with the development of new affordable homeownership housing units in the City. Funding through this Program will accomplish the following objectives: • Increase the supply of new homeownership units affordable to low-income residents; • Spur reinvestment of private capital in older residential neighborhoods; • Complement other public neighborhood revitalization efforts; and • Encourage the participation of CHDOs in the development of affordable housing. The following terms govern the use of Homeownership New Construction Program funds: 1. Leveraging of funds: Developers are required to secure matching project funds from other public and/or private sources to leverage City assistance at a minimum ratio of 2:1. 2. Minimum Home Subsidy per Unit: $1,000 per assisted unit. 3. Maximum Home Subsidy per Unit: The City will not exceed the HUD -published High Cost Maximum HOME Subsidy per Unit for the Miami PMSA, as shown in the table below, For any subsidy proposed that exceeds the HUD -published maximum Basic Subsidy amount but does not exceed the High Cost Percentage, City will require a narrative justifying the need for the type of housing proposed and a comparison which proves that project area construction costs are higher than in other Miami residential areas. Table 18: Table of Basic and High Cost Percentage Statutory Mortgage Limits National Housing Act October 2005 — October 2006 Bedroom Count 0 2 a 4 or more Basic Maximum Subsidy 2005 Nun -Elevator Building $43,964 $50,691 $61,134 $78,252 $87,176 Source: http:llww1'..v Elevator $46,267 $53,036 $64,492 $83,430 $91,581 217'%o M axiniuiu Subsidy Iligli Cost Percentage Non -Elevator Elevator Building Building $95,402 $109,999 $132,660 $169,807 $189,172 . hud. govioffices/hsg/mfhlh i cost!basi c statl i mits. pdf $100,399 - $115,088 $139,448 $181,043 $198,731 2005-2006 Action Plan 60 4. Homebuyer Eligibility: In accordance with HOME program regulations, an eligible homebuyer is an individual or family whose income does not exceed 80% of the area median income as published annually by HUD, adjusted for family size. The homebuyer must occupy the assisted home as a principal residence. The City program focuses on first-time homebuyers, defined as a homebuyer who has not owned a home during the three years prior to the purchase of the assisted unit. 5. Maximum Purchase Price/Appraised Value: The purchase price or appraised value of an assisted unit may not exceed the maximum HOME value allowed by HUD as published by the Federal Housing Authority (FHA) 203(b) mortgage limit for the type of housing being purchased. 6. Period of Affordability: The affordability period on an assisted unit will be twenty (30) years from the date of purchase by an eligible homebuyer. 7. Recapture/Resale Provision: In connection with the original sale to an eligible homebuyer, each assisted unit will be subject to a recapture provision which provides that, in the event that the unit is resold, leased or rented during the affordability period, the homebuyer must repay the financial assistance associated with the unit, in full. Refinancing of an assisted unit during the affordability period requires prior approval by the City Manager or designee, who will at that time determine whether the assistance must be repaid in full. 8. Code Compliance: All housing projects must meet the Florida Building Code, the Miami -Dade County Building Code, the Section 8 Housing Quality Standard, the City of Miami Building Code, and the Model Energy Building Code or HUD - accepted equivalent. 9. Financing Mechanism: Form: Construction financing is provided to the developer or project sponsor in the form of an interest -bearing, non -amortizing, deferred loan which becomes payable, in full, upon default or sale of the homeownership unit. Any portion of the funds used to cover the excess of the cost to build over the market value may be forgiven upon completion of the assisted units. Interest Rate: 6% interest simple annual interest rate, unless otherwise determined by City staff based on the economic feasibility of the project. Default: Includes, but is not limited to, a failure to cure any incident of non-compliance with contractual and regulatory requirements during the term of the Loan Agreement. Other Requirements: Construction must commence within six (6) months of the contract execution date, and be completed within eighteen (18) months of the agreement execution date. All units must be sold to City -approved, eligible homebuyers within twelve (12) months of the issue date of the Certificate of Occupancy, not to exceed thirty (30) months from the agreement execution date. First Time Homebuyer Assistance Program The First Time Homebuyer Assistance Program provides funding for subordinated mortgages and down payment assistance to low-income first-time homebuyers for the purchase of.a principle residence. This program makes funds available directly to homebuyers for newly constructed or existing single family homes and will be funded, in part, with ADDI funds. The following are essential requirements of this program. 2005-2006 Action Plan 61 I. Homebuyer Eligibility: i) As defined under ADDI, a first-time hornehuyer is an individual and his or her spouse who have not owned a home during the three-year period prior to purchase of a home with assistance under ADDI. The term first-time homchuyer includes displaced homemakers and single parents. The definition used for ADDI is located in Title 1 of Cranston -Gonzalez National Affordable Housing Act (Public Law 101-625, approved November 28, 1990) (NAH-IA) ii) The home must be located within the City of Miami and occupied by the homebuyer as a principal residence throughout the affordability period; and iii) City approval of the (1) homebuyer and (2) homebuyer's superior mortgage lender(s) [bank, Mortgage Company and/or non-profit agency] for the highest level possible, not to exceed 30% of household income, is required. 2. Maximum Homebuyer Assistance: Floniebuyer assistance can be up to the maximum subsidy Limit based on bedroom size. ADDI funds are subject to a maximum of the greater of $10,000 or 6% of the purchase price. 3. Eligible Housing Types: Eligible properties are limited to single family homes, town homes, condominium units, and cooperative units, 4, Homebuyer's Down Payment Equity; Minimumdown payment of $500. 5. Subordinated Mortgage Financing: Principal and interest payments plus escrow payments on the combined mortgages shall not exceed 30% of the household total gross monthly income, If first mortgage holder is willing to make a loan under higher ratios, assistance may still be provided. 6. Recapture Provision: In the event that the unit is resold, leased or rented during the affordability period, the homebuyer must repay the financial assistance associated with the unit, in full. Refinancing of an assisted unit during the affordability period requires prior approval by the City Manager or designee, who will at that time determine whether the assistance must be repaid in full. 7. Maximum Purchase Price/Appraised Value: The purchase price or appraised value of an assisted unit may not exceed the maximum HOME value allowed by HUD as published by the Federal Housing Authority (FHA) 203(b) mortgage limit for the type of housing being purchased. 8. Period of Affordability: The affordability period -on an assisted unit will be twenty (20) years from the date of purchase by an eligible homebuyer. 9. Form: Funding will be provided to the homebuyer in the form of a deferred, non - amortizing, non interest -bearing loan which will come payable, in full, in the event of sale, lease or rental of the assisted property during the affordability period. If the homebuyer elects to refinance, the City's approval will be required. Multifamily Rental Housing New Construction Program Multifamily Rental New Construction Program is available for the new construction of multifamily rental units located throughout the City of Miami. Financial assistance for multifamily rental construction is limited to projects that require local matching funds to be approved for Florida Housing 2005-2006 Action Plan 62 Finance Corporation Housing Credit financing. Approval for financing under this program will be contingent upon funding approval for Housing Credit financing. The program is designed to provide financial assistance for developers to produce new rental housing projects with five (5) or more units and is intended to accomplish the following objectives: • Increase the supply of new rental units affordable to very low and low income residents; • Provide standard affordable housing to low and very low income residents; • To spur reinvestment of private capital in older residential neighborhoods, and; • To complement other public neighborhood revitalization efforts. The following terms govern the use of HOME funds for the Multi -Family Rental New Construction Program: 1. Leveraging of funds: Developers are required to secure matching project funds from other public and/or private sources to leverage City assistance at a minimum ratio of 5:1. 2. Minimum HOME Subsidy per Unit: $1,000 per assisted unit, 3. Maximum HOME Subsidy per Unit: The City will not exceed the HUD -published High Cost Maximum HOME Subsidy per Unit for the Miami PMSA, as shown in the table below. For any subsidy proposed that exceeds the HUD -published maximum Basic Subsidy amount but does not exceed the High Cost Percentage, City will require a narrative justifying the need for the type of housing proposed and a comparison which proves that project area construction costs are higher than in other Miami residential areas. Table 19: Table of Basic and High Cost Percentage Statutory Mortgage Li,nits National Housing Act October 2005— October 2006 Bedroom Count 0 0 2 3-" 4 or more Basic Maximum Subsidy 2005 Non -Elevator Building $43,964 $50,691 $61,134 $78,252— $87,176 Elevator BitiItIing $46,267 $53,036 $64,492 $83,430 $91,581 217"/0 Maximum Subsidy i ligb Cost Percentage Non -Elevator Elevator Building Building $95,402 $109,999 $132,660 $169,807 $189,172 $100,399 $115,088 $139,448 $181,043 $198,731 Source: http://www. htai.gov/offices/hsg/mfb/hicost/basicstatlimits. 4. Maximum Monthly Rent: pdf i) Monthly rent charged for HOME assisted units shall not exceed the High HOME Rent published annually by HUD during the Affordability Period, except as provided in (iii) of this section. 2005-2006 Action Plan 63 ii) In keeping with HOME regulations, a minimum of 20% of HOME assisted units in a project will be rented to tenants with income not exceeding 50% of the area media income at a monthly rent that does not exceed the Low HOME Rent published by HUD. iii) A project wilt not be required to lower monthly rents on HOME assisted units below the HUD level in effect at the time Program documents are executed with the City. Table 20: Maximum Monthly Rent (Issued by U.S. HUD 02/2005) for Miami, FL PMSA Bedroom count; Low HOME Rent tl 1 2 3 4 S 473 507 608 703 785 865 946 High HOME Rent 595 639 769 880 963 1043 1124 Source: http://www.hud.gov/offices/cpolaffordablehousing/programs/home/limits/rent12005/florida.pdf 5. Occupancy Requirements: i) HOME assisted units must be occupied by eligible tenants with income that does not exceed 80% of the area median income, adjusted for family size. ii) A minimum of 20% of HOME assisted units must be occupied by eligible tenants with income that does not exceed 50% of the area median income, adjusted for family size, 6. Floating Units: For projects in which less than 100% of units will be HOME assisted, the program agreement with the City will indicate that HOME assisted units are "floating" rather than "fixed" and may vary, while remaining comparable, to allow flexibility as tenants more in and out of the project. 7. Code Compliance: All projects must meet the Florida Building Code, the Dade County Building Code, the City of Miami Building Code, the Section 8 Housing Quality Standards, and the Model Energy Building Code or HUD -accepted equivalent. 8, Annual Inspection: Projects shall be subject to an annual re -inspection to insure continuing compliance with minimum housing codes. This inspection will be initiated one year after the date of the certificate of occupancy, and will occur annually thereafter for the duration of the affordability period and affordability of units assisted. 9. Affordability Period: The affordability period on an assisted project will be twenty (20) years from the date of certificate of occupancy. Community Housing Development Organizations (CHDOs) As required by HOME Program regulations, a minimum of 15% of the City's HOME entitlement will be used as financial assistance for the production of new housing to be sponsored or owned by Community Housing Development Organizations (CHDOs). Financial assistance may be provided through any of the City's programs listed in this section, except for ADDI-funded Homebuyer Assistance Specifically, the City will provide government matching for community development corporations (CDCs) applying for tax credit financing for affordable housing projects. The City will also encourage 2005-2006 Action Plan 64 CDCs to partner with private developers by giving developers extra credit points in their RFP applications if they have a 51 % partner that is a non-profit. CHDO sponsored projects must meet all the same requirements and are subject to the same terms as non-CHDO sponsored projects under the programs described above. This focus on CHDO sponsored projects is designed to assist the City of Miami in accomplishing the following objectives: ■ To spur reinvestment of private capital in older residential neighborhoods through the production of new affordable housing units sponsored or owned by Community Housing Development Organizations (CHDOs). ■ To provide standard housing affordable to low and very low income residents. ■ To complement other public neighborhood revitalization efforts. To qualify for funding as a CHDO, an entity must meet the following HOME criteria: CHDO must be organized under State and/or local laws; Must have a tax exempt ruling from the IRS under Section 501(c)(3) of the Internal Revenue Code of 1986; • No part of its earnings (profits) may benefit any members, founders, contributors or individuals; • Provision of decent housing that is affordable to low and moderate income persons must be among the purposes stated in the charter, articles of incorporation, resolution or by-laws of the CHDO; and • Appropriate organizational structure as required by the HOME Program. HOME Activities Below is a list of the activities that the City of Miami will undertake in the utilization of HOME funds: Strategies to Preserve Affordable Rental Housing I. Activity: New Construction of Multi -family Rental Consolidated Plan Reference Code: IRH (b) Strategy: Increase the supply of affordable rental housing available to very low and low income residents through new construction. Targeted Outcome: Increase the supply of affordable housing rental stock Source: HOME and SHIP Strategies to Preserve Existing Homeowners — Homeowner Retention 1. Activity: Replacement of Unsafe Housing Consolidated Plan Reference Code: 1 HA (b) Strategy: Provide assistance to homeowners to replace unsafe housing structures. Targeted Outcome: improve the quality of life of existing homeowners by reducing the number of unsafe structures that are owner occupied. Source: SHIP and HOME 2005-2006 Action Plan 65 Strategies to Increase Homeownership 1. Activity: New Construction of Homeownership Units Consolidated Plan Reference Code: 1 HO (a) Strategy 1: Increase the supply of affordable homeownership units through new construction. Targeted Outcome: Provide greater opportunities for low to moderate income families to achieve homeownership and improve their housing conditions. Source: SHIP and HOME 2. Activity: Homeownership Financing Consolidated Plan Reference Code: 1 HO (c) Strategy: Assist low to moderate income families obtain homeownership by providing financing assistance (i.e. down payment, closing cost, and second mortgages). Targeted Outcome: Increase the number of households able to achieve homeownership in the Model Blocks and the NDZs through financing assistance Source: HOME, SHIP and ADDI Strategies to Stimulate Affordable Housing Development 1, Activity: Tax Credit Assistance Consolidated Plan Reference Code: 1 HD (c) Strategy: Provide Tax Credit Assistance to projects located in the Model Blocks and NDZs by providing matching funds and assuring that all municipal items on the Tax Credit application checklist are addressed in a timely manner. Targeted Outcome: Increase the number of Tax Credit applications for projects located in the Model Blocks and NDZs. Source: HOME 2. Activity: Matching Funds for Non -Profits Consolidated Plan Reference Code: 1 HD (i) Strategy: Provide capacitybuilding support to non-profit developers by assisting such organizations to develop partnerships with private developers. Targeted Outcome l HD (1): Increase the production capacity of local non-profit developers in the area of real estate development. 2005-2006 Action Plan 66 X. American Dream Downpayment Initiative (ADDI) The American Dream Downpayment Initiative (ADDI) was signed into law by President Bush on December 16, 2003 under the American Dream Downpayment Act (Public Law 108-186) (ADDI statute). Funds made available under the ADDI statute will be allocated to eligible HOME program Participating Jurisdictions (PJ) to assist low-income families become first-time homebuyers. Each local participating jurisdiction receives ADDI funds from the state's share, proportionate to the percentage of the statewide total of low-income renter households within the participating jurisdiction, as determined by the most recent available U.S. census data. The ADDI regulations can be found at 24 CFR Part 92.600 (Subpart M of the HOME rule). ADDI Funds and HOME ADDI will be administered as part of the HOME Investment Partnerships Program (HOME) by state and local participating jurisdictions. ADDI funds may only be used for downpayment 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 an eligible activity under the ADDI statute. A participating jurisdiction's total rehabilitation assistance may not exceed 20% of its annual ADDI allocation, Generally, requirements for HOME homebuyer projects apply to ADDI projects. However, there are some nuances in the ADDI statute that make the requirements differ slightly from HOME requirements. As such, the following federal requirements under subpart H of the HOME rule apply to ADDI funds: • Federal and nondiscrimination requirements (§ 92.350); • Environmental review (§ 92.352); ■ Labor requirements (§ 92.354); ■ Lead -based paint (§ 92.355); • Conflict of interest (§ 92.356); and ■ Consultant activities (§ 92.358). Downpayment and closing cost_A sistance is provided to first-time homebuyers for the acquisition of affordable -single family housing. A first-time homebuyer Fs —defined as an individual and his or her spouse who have not owned a home during the three-year period prior to purchase. A first-time homebuyer includes an individual who is a "displaced homemaker" or "single parent" and who, even if while a homemaker or married, owned a home with his or her spouse or resided in a home owned by the spouse. A "displaced homemaker" means an individual who (1) is an adult; (2) has not worked full- time in the labor force for a number of years but has, during such years, worked primarily without remuneration to care for the home and family; and (3) is unemployed or under -employed and is experiencing difficulty in obtaining or upgrading employment. A "single parent" is defined as an individual who (1) is unmarried; and (2) has one or more minor children for whom the individual has custody, or is pregnant. In accordance with 24 CFR 92.251, housing that is assisted with ADDI HOME funds, at a minimum, must upon completion be in compliance with Florida Minimum Construction Standards and FHA minimum standards, local building codes and zoning ordinances. The Administrator will conduct 2005-2006 Action Plan 67 necessary inspections to ensure that all health and safety standards are met. If necessary, the homebuyer will be notified of deficiencies and the cost and time required for repair. In addition, housing assisted with HOME funds must also meet Federal lead -based paint requirements in 24 CFR Part 35 Subpart K (see Appendix 11) and must have passed an environmental review in accordance with 24 CFR Part 58. Single Family Accessibility Standards must also be met when applicable. ADDI - Eligible Activities 24 CFR 92,602 a. Eligible activities. ADDI funds may only be used for; I. Downpayment assistance towards the purchase of single family housing by low-income families who are first-time homebuyers; and 2. Rehabilitation that is completed in conjunction with the home purchase assisted with ADDI funds. The rehabilitation assisted with ADDI funds, including the reduction of lead paint hazards and the remediation of other home health hazards, must be completed within one year of the purchase of the home. Total rehabilitation shall not exceed 20 percent of the participating jurisdiction's ADDI fiscal year formula allocation. FY2003 ADDI funds may not be used for rehabilitation. b. Eligible project costs. ADDI funds may be used for the following eligible costs: 1. Acquisition costs. The costs of acquiring single family housing. 2. Rehabilitation costs. The eligible development hard costs for rehabilitation projects described in § 92.206(a) and the costs for reduction of lead paint hazards and the remediation of other home health hazards. FY2003 ADDI funds may not be used for rehabilitation. 3. Related soft costs. Reasonable and necessary costs incurred by the homebuyer or participating jurisdiction and associated with the financing of single family housing acquisition and rehabilitation. These costs include, but are not limited to: i. Costs to process and settle the financing for purchase of a home, such as private lender origination fees, credit report fees, fees for title evidence, fees for recordation and filing of legal documents, attorneys fees, and private appraisal fees, ii. Architectural, engineering, or related professional services required to prepare plans, drawings, specifications, or work write-ups. Costso provide information services, such as fair housing information to prospective homeowners. iv. Staff and overhead costs directly related to carrying out the project, such as work specifications preparation, loan processing inspections, and other services related to assisting a potential homebuyer (e.g., housing counseling), which may be charged to project costs only if the individual purchases single family housing with ADDI assistance. v. Costs of environmental review and release of funds (in accordance with 24 CFR part 58) that are directly related to the project. 4, Ineligible costs. ADDI funds may not be used for the development costs (hard costs or soft costs) of new construction of housing or for rental assistance. c. Forms of investment. A participating jurisdiction may invest ADDI funds as interest -bearing loans or advances, non -interest bearing loans or advances, interest subsidies consistent with the purposes of this 2005-2006 Action Plan 68 subpart, deferred payment loans, grants, or other forms of assistance that HUD determines to be consistent with this subpart. Each participating jurisdiction has the right to establish the terms of assistance, subject to the requirements of this subpart. d, Minimum amount of assistance. The minimum amount of ADDI funds in combination with HOME funds that must be invested in a project is $1,000. e. Maximum amount of assistance. The amount of ADDI funds provided to any family shall not exceed the greater of six percent of the purchase price of the single family housing or $10,000. This limitation does not apply to FY2003 ADDI funds. f. Limitation on subrecipients and contractors. A participating jurisdiction may not provide ADDI funds to an entity or organization that provides downpayment assistance, if the activities of that entity or organization are financed in whole or in part, directly or indirectly, by contributions, service fees, or other payments from the sellers of housing, whether or not made in conjunction with the sale of specific housing acquired with ADDI funds. In addition, HOME funds can be used in conjunction with ADDI funds, especially when an investment of more than $10,000 is required. However, the total HOME and ADDI investment cannot exceed the maximum per -unit subsidy limits for the jurisdiction. Local Use of ADDI Funds and Outreach As an extension of the HOME funds and in line with the HOME housing objectives described in previous chapters, the City of Miami will use ADDI funds to provide down payment assistance to first time homebuyers for the purchase of a home. The funds will not be used for rehabilitation at this time, To assure that all residents have access to ADDI, the City will conduct various outreach activities. This will include advertising the program on local media outlets in English, Spanish, and Creole. Information will also be distributed among Home Counseling and Homebuyer program providers, mortgage lenders, realtors, CBOs, public housing providers and other organizations that serve individuals who may be eligible for assistance. Finally, the City of Miami will assure the suitability of the ADDI program. ADDI and HOME regulations will be implemented to meet local needs. In the 30`h Program Year, ADDI assistance will be provided in combination with the HOME First Time Homebuyer Assistance Program for total downpayment assistance of 50 housing units. The number of units funded by ADDI will be approximately 19. It is important to note that funding available from ADDI will include funds from 2003 and 2004, for a total of $444,833. Funding Source ADDI Oily of Miami Programs Annual Performance Measures Homebuyer Assistance ■ American Dream Down Payment Program* 19 housing units Source: ADDI assistance will be provided in combination with the HOME First Time Homebuyer Assistance Program. ADDI Eligibility Requirements As mentioned earlier, the ADDI program will be used in combination with HOME and SHIP. The following are essential eligibility requirements of the ADDI program. 2005-2006 Action Plan 69 1. Homebuyer Eligibility: i) Under ADDI, a first-time homebuyer is an individual and his or her spouse who have not owned a home during the three-year period prior to purchase of a home with assistance under ADDI. The term first-time homebuyer includes displaced homemakers and single parents. The definition used for ADDI is located in Title I of Cranston -Gonzalez National Affordable Housing Act (Public Law 101-625, approved November 28, 1990) (NAHA) ii) The home must be located within the City of Miami and occupied by the homebuyer as a principal residence throughout the affordability period; and iii) City approval of the (1) homebuyer and (2) homebuyer's superior mortgage lender(s) [bank, Mortgage Company and/or non-profit agency] for the highest level possible, not to exceed 30% of household income, is required; or amount that the first mortgage lender will approve. 2. Maximum Homebuyer Assistance: ADDI funds are subject to a maximum of the greater of S 10,000 or 6% of the purchase price. 3. Eligible Housing Types: Eligible properties are limited to single family homes, town homes, condominium units, and co-operative units. Under ADDI, single family homes are defined as a one- to four -family residence, condominium unit, or co- operative unit. 4. Homebuyer's Down Payment Equity: Minimum down payment of $500. 5. Subordinated Mortgage Financing: Principal and interest payments plus escrow payments on the combined mortgages shall not exceed 30% of the household total gross monthly income. If first mortgage holder is willing to make a loan under higher ratios, assistance can still be provided depending on the risk profile of the entire loan. 6, Recapture Provision: In the event that the unit is resold, leased or rented during the affordability period, the homebuyer must repay the financial assistance associated with the unit, in full. Refinancing of an assisted unit during the affordability period requires prior approval by the City Manager or designee, who will at that time determine whether the assistance must be repaid in full. 7. Maximum Purchase Price/Appraised Value: The purchase price or appraised value of an assisted unit may not exceed the maximum HOME value allowed by HUD as published by the Federal Housing Authority (FHA) 203(b) mortgage limit for the type of housing being purchased. 8. Period of Affordability: The affordability period on an assisted unit will be twenty (20) years from the date of purchase by an eligible homebuyer. 9. Form: Funding will be provided to the homebuyer in the form of a deferred, non - amortizing, non interest -bearing loan which will come payable, in full, in the event of sale, lease or rental of the assisted property during the affordability period. If the homebuyer elects to refinance, the City's approval will be required. 2005-2006 Action Plan 70 Monitoring According to regulations, HUD will credit ADDI with all first-time homebuyer downpayment assistance completed during the grant period until the participating jurisdiction's ADDI funds are depleted. Once all the participating jurisdiction's ADDI funds are depleted, HUD will credit regular HOME funds for any subsequent downpayment assistance activities. HUD will run a monthly report tracking ADDI Accomplishments, and Commitment and Disbursement deadlines. Furthermore, HUD will extract data from IDIS to compile needed reports. Participating jurisdictions will enter beneficiary information into IDIS just as if ADDI funds were regular HOME funds. The only additional information participating jurisdictions will be required to enter into IDIS is an indication of whether the beneficiary of a homebuyer activity is a first-time homebuyer. 2005-2006 Action Plan 71 XI. Section 3 Program Description (24 CFR 135) In 1994, the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) was amended by Congress to help give citizens deprived of economic opportunity increased access to employment and job training. The Section 3 Act requires recipients of HUD funds and the contractors they employ to ensure that the economic opportunities generated by the expenditures shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing. HUD -funded housing and development projects represent a major source of economic activity in many distressed neighborhoods. The Section 3 legislation assures that such funds help to foster local economic development, neighborhood economic improvement, and self-sufficiency among residents in the communities being served. It is the legal basis for providing jobs for residents and awarding contracts to businesses in areas receiving certain type of HI _JD financial assistance for certain construction projects. The City of Miami will continue to enforce Section 3 compliance in all applicable programmatic requirements. 1. Eligibility Criteria: Eligible applicants are characterized as residents of public housing and low income persons who live in an area in which a HUD -assisted project is located. A Section 3 business is defined, as a business that employs residents of public housing, welfare recipients, local construction area residents, low and very low income persons, or a business who subcontracts with businesses which provide economic opportunities to low and very low income persons. 2. Compliance Requirements: The City of Miami requires recipients who are awarded Federal Financial Assistance from HUD for construction projects which exceed $100,000 to provide economic opportunities, to the greatest extent feasible, to the following: • Residents of public housing • Residents of the neighborhood of the project under construction • Residents of HUD Youth Build Programs • Homeless persons • TANF/AFDC welfare recipients Compliance is based on the numerical hiring goals and contract awards of each individual project. The numerical goals for each category differ based on two types of economic opportunities: (1) employment or training opportunities; (2) and award of contract or subcontract to employers who take into service low to very low income persons. Moreover, the regulations require that "efforts to employ Section 3 candidates to the greatest extent feasible should be made at all job levels". The other principal way for Section 3 recipients to comply with the regulations is to award contracts to Section 3 certified businesses, contractors and subcontractors. 3. Compliance Monitoring: The City of Miami monitors compliance with Section 3 requirements in an effort to secure uniformity and consistency with Federal Regulations by 2005-2006 Action Plan 72 requesting that entities awarded contracts in excess of$100,000 develop an Economic Opportunity Plan. The plan will serve as verification that a good faith effort was executed to solicit, recruit, facilitate and hire public housing residents and other tow -income persons by the contractor or subcontractor. The City of Miami has constructed the following Economic Opportunity Plan with the intent to measure Section 3 training and employment numerical goals and subcontracting goals (where subcontracting is allowable). In addition, the City distributes a copy of its plan to all contracts recipients who must adhere to Section 3 regulations. All those who are held accountable for compliance with Section 3 requirements must render the Economic Opportunity Plan issued by the City. Each plan submitted must answer and provide written documentation to the following objectives: ii. Identify individual(s) responsible for planning, implementing and tracking the projects under Section 3 training and employment goals; Describe efforts (contractors and subcontractors) to be taken to recruit, solicit, encourage, facilitate, and hire public housing and other low-income persons, identify any private or public resources that will be used; iv. Describe contractor's activities to be taken for recruiting, soliciting, encouraging, facilitating and selecting Section 3 subcontractors, where applicable; and v. Describe plans to structure project activities in ways that create opportunities for Section 3 firms' participation, where applicable. The City of Miami offers training sessions to contractors, subcontractors and businesses, on how to solicit, recruit, encourage and facilitate employment of low to very -low income residents. The City also provides training to those entities that need technical assistance completing program forms in an attempt to maintain compliance with regulatory guidelines. The City demands from all contractors, subcontractors, as well as, any entity seeking payment/reimbursement that compliance with Section 3 requirements are met and cleared by the in-house Section 3 compliance monitor. Lack of clearance by the Section 3 compliance monitor will cause a delay in the receipt of payment. 2005-2006 Action Plan 73 XII. SHIP State Housing Initiatives Partnership Program: Local Housing Assistance State Housing Initiatives Partnership program (SHIP) is the first permanently funded state housing program in the nation to provide funds directly to local governments to increase affordable housing opportunities on a noncompetitive basis. The funds are used to produce and preserve affordable homeownership and multifamily housing for very low, low and moderate income families. SHIP dollars may be used to fund emergency repairs, new construction, rehabilitation, down payment and closing cost assistance, impact fees, construction and gap financing, mortgage buy -downs, acquisition of property for affordable housing, matching dollars for federal housing grants and programs, and homeownership counseling. The State of Florida SHIP program is a result of the William E. Sadowski Affordable Housing Act. The centerpiece of this legislation is the State Housing Partnership Act which provides a dedicated revenue source to state and local governments to facilitate the creation of public/private partnerships whose purpose is to preserve the existing housing stock and stimulate the production of new affordable housing. The City of Miami Local Housing Assistance Plan describes how the municipality will use SHIP funds to meet the affordable housing needs of the community. The following provides an overview of the items found in the Local Housing Assistance Plan for 2004-2007, Program Description The City of Miami will use its SHIP allocation to undertake various homeownership and rental housing development activities designed to enhance and facilitate the development, purchase and maintenance of housing units in the City, These housing strategies and activities will be carried out through the SHIP programs listed on the table below. Funding Source SHIP Cily of Miami Programs Annual Performance Measures Rehabilitation • SHIP Single Family Rehabilitation Program ■ Emergency Home Repair Assistance Program • SHIP Single Famil Re.lacement Housin: Pro,tram 50 housing units* 5 housin. units* Homebuyer Assistance ■ SHIP Hornebu ers Financin: Pro:ram 50 housin• units* New construction • SHIP Homeownership Development Program • SHIP Rental Housin_ Develo ment Pro:ram 95 housing units* 250 housin. units* *The Annual Performance Measures include units funded by HOME and CDBG. Income Category to be Served These activities will involve the construction, reconstruction, rehabilitation and acquisition/purchase of housing to be occupied by very low, low and moderate income households and homeowners or renters with incomes at or below 120% of the area median income, adjusted for family size, as defined in Section 420.907, Florida Statutes as follows: 2005-2006 Action Plan 74 • Very low income - one or more natural persons or a family that has a total annual gross household income that does not exceed 50% of the median annual income adjusted for family size for households within the Metropolitan Statistical Area. • Low-income - one or more natural persons or a family that has a total annual gross household income that does not exceed 80% of the median annual income adjusted for family size for households within the Metropolitan Statistical area. • Moderate income - one or more natural persons or a family that has a total annual gross household income that does not exceed 120% of the median annual income adjusted for family size for households within the Metropolitan Statistical Area. Support Services and Counseling Chapter 67-37005(5)(g,F.A.C. Applicants applying for SHIP funding receive support services based on the type of assistance requested. These services are in the form of counseling and or referral to other programs that provide services they may need. The City of Miami will work with members of the Housing Partnership to provide support services to those residents/homeowners participating in the various housing programs, The services include, but are not limited to: • Assistance/referral to Legal Services of Miami, inc. to homeowners who have title problems or outstanding liens that would prohibit their participation in the program. Referrals to other agencies and programs to applicants that do not qualify for assistance. Assist homeowners participating in the Single Family rehabilitation and Single Family Housing Replacement Programs throughout the rehabilitation/reconstruction process, from the time of application until project completion. • Referrals to consumer credit clinics and homebuyer counseling programs provided by local lenders and non-profit organizations. • Referrals to agencies funded by the South Florida Employment and Training Consortium for employment and job training. ■ Referrals to appropriate local agencies for fair housing assistance, information and counseling. ■ Information and referrals on how to apply for Property Tax Exemption, specifically for the elderly and the disabled. • Legal aid referrals for counseling and guidance on other legal matters. Purchase Price Limits 420.9075(4)(c), F.S, and Chapter67-37.007(6)F.A.C. --- The sales price or value of new or existing eligible housing may not exceed 90% of the median area purchase price in the statistical area in which the eligible housing is located. Such average area purchase price may be that calculated for any 12-month period beginning not earlier than the fourth calendar year prior to the year in which the award occurs. The purchase price limit for: New Homes: Existing Homes: $236,835.00 Income Limits, Rent Limits and Affordability Chapter 67-37.005(5)(e), FA.C..and Section 420.9071(2), F.S. The City of Miami will use Income and Rent Limits updated annually from the Department of Housing and Urban Development and distributed by Florida Housing Finance Corporation. The City will 2005-2006 Action Plan 76 ensure that housing provided through this program is affordable, Affordable means that monthly rents or mortgage payments including taxes and insurance do not exceed 30% of that amount which represents the percentage of the median annual gross income for the households as indicated in Sections 420.9071 (19), (20) and (28), F.S. However, the City will not limit an individual household's ability to devote more than 30% of its income for housing, if the first institutional mortgage lender is satisfied that the household can afford mortgage payments in excess of the 30% benchmark. In the case of rental housing the City will ensure that rents do not exceed those rental limits adjusted for bedroom size. Monitoring and First Right of Refusal Section 420.9075(3)(e)and (4) (J), F.S. The City of Miami will monitor rental projects annually to determine tenant eligibility for at least fifteen (15) years or the affordability period, whichever is greater. However, any loan or grant in the original amount of $3,000 or less shall not be subject to these annual monitoring and determination of tenant eligibility requirements. Eligible sponsors that offer rental housing for sale before 15 years or that have remaining mortgages funded under this program must give a first right of refusal to eligible nonprofit organizations for purchase at the current market value for continued occupancy by eligible persons. Leveraging Chapter 67-37.007(1)(b)(c), F.A.C. and Subsection 420.9075(1)(a) and (1)(b3, and (1)(c), F.S. The City of Miami intends to use HOME and CDBG funds from U.S. HUD to leverage SHIP funds, thereby reducing the cost of housing. In addition, the City plans to use SHIP funds for developers to use as local match to leverage additional HOME or Local Housing Credits from Florida Housing Finance Corporation. City of Miami SHIP Programs The following describes the programs the City of Miami will undertake to meet the affordable housing needs of its very low, low and moderate -income residents using the State Housing Initiatives Partnership Act (SHIP) funds according with the requirements of Section 420.907 of the Florida Statutes and Chapter 67-37 of the Florida Administrative Code. SHIP Single Family Rehab and Code Violation Elimination Program The Single Family Rehabilitation and Code Violation Elimination Program will provide rehabilitation assistance to very low, low and moderate income residents who live in single family owner -occupied properties located 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. Below is a description of the program requirements. 1. Income Category to be Served: This strategy will serve very low, low and moderate income families as stipulated in FAC Chapter 67-37, 2. Maximum Award: Residents meeting the selection criteria will be awarded a maximum of $30,000 to complete all needed repairs to bring a property to a safe and decent standard. However, in cases where the amount needed to bring the property to code is higher than $30,000, a higher amount may be provided upon approval by the City Manager or the Director of the Department of Community Development acting as his/her designee. 2005-2006 Action Plan 76 3. Recapture Provisions: Financial assistance to be provided under the Single Family Rehabilitation Program will be provided to eligible homeowners in the form of a three percent (3%), deferred forgivable payment, ten (10) year loan, There are no monthly payment requirements associated with this loan. There is no amortization of this loan. Repayment of the full principal balance and accrued interest_of the loan is required if the property receiving the financial assistance is rented or sold during the life of the loan. Homeowners that qualify and receive assistance must execute a Mortgage and Note that will be recorded in the records of Miami -Dade County Clerk of the Circuit Court for compliance with the recapture provisions for the program. In the event of death of all eligible homeowner(s), the heirs to the property can assume the obligation based on the original terms and conditions provided to the homeowner as long as the heirs qualify based on the original terms and conditions provided to the homeowner as long as the heirs qualify based on age, income and household size, remain owner occupants of the property and do not sell or rent the property for the remaining term of the mortgage and note. A heir or prospective purchaser who does not qualify based on the provisions of this strategy will be required to repay the balance of the outstanding loan amount provided by the City of Miami, 4. Selection Criteria: Alt recipients of assistance must meet the eligibility requirements as stipulated in the Florida Statutes, Florida Administrative Code, the SHIP Ordinance, Resolution and this Plan, Eligible housing includes single family homes, owner -occupied town houses or twin homes only. Manufactured housing and mobile homes are not eligible for assistance under this program. The properties to be assisted must be owner -occupied and located within the corporate limits of the City of Miami. Applications will be processed on a first -come -first serve basis from all applicants meeting the selection criteria, subject to funding availability and in such a manner as to comply with the statutory requirements. • Applicants with household income above (120%) of the median area income limit are ineligible for SHIP assistance under this strategy. • Staff will review actual performance data on a continuous basis to ensure that adjustments are made as necessary to remain in compliance with funding requirements. 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 SHIP 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 or Miami -Dade County. 2005-2006 Action Plan 77 Ship Emergency Home Repair Assistance Program The Ship Emergency Home Repair Assistance Program will provide emergency repair assistance to very low, low and moderate income owner occupied single family homes located within the corporate limits of the City of Miami. The City will provide deferred payment loan assistance to an eligible homeowner to carry out limited repairs such as roofing, electrical and plumbing to immediately rectify life hazardous and potentially hazardous conditions that threaten the safety and health of the occupants of the home. The following terms describe the requirements of the program. 1. Income Category to be Served: Available SHIP funds shall be reserved for housing units occupied by income eligible persons or households. To comply with the overall requirements under Chapter 67-37 of the Florida Administrative Code, eligible persons or households will be very low, low and moderate income. 2. Maximum Award: The maximum award under this strategy will be $15,000. 3. Recapture Provisions: Financial assistance to be provided under the SHIP Emergency Home Repair Program will be provided to eligible homeowners in the form of a three (3%) percent, deferred payment forgivable, and a ten (10) year loan. There are no monthly payment requirements associated with this loan. There is no amortization of this loan. Repayment of the full principal balance of the loan is required if the property receiving the financial assistance is rented, leased or sold during the life of the loan. Homeowners that qualify and receive assistance must execute a Mortgage and Note that will be recorded in the records of Miami -Dade County Clerk of the Circuit Court for compliance with the recapture provisions for the program. In the event of death of all eligible homeowner(s), the heirs to the property can assume the obligation as long as the they qualify based on the original terms and conditions provided to the homeowner (including age, income and household size) remain owner occupants of the property and do not sell or rent the property for the remaining term of the mortgage and note. An heir or prospective purchaser who does not qualify based on the provisions of this strategy will be required to repay the balance of the outstanding loan amount provided by the City of Miami. 4. Selection Criteria: All recipients of assistance must meet the eligibility requirements as stipulated in the Florida Statutes, Florida Administrative Code, the SHIP Ordinance, Resolution and this Plan. Eligible housing includes single family homes, owner -occupied town houses or twin homes only. Manufactured housing and mobile homes are not eligible for assistance under this program. The properties to be assisted must be owner -occupied and located within the corporate limits of the City of Miami. Applications will be processed on a First -come -first serve basis from all applicants meeting the selection criteria, subject to funding availability and in such a manner as to comply with the statutory requirements. • Applicants with household income above (120%) of the median area income limit are ineligible for SHIP assistance under this strategy. • Staff will review actual performance data on a continuous basis to ensure that adjustments are made as necessary to remain in compliance with funding requirements. • Other selection criteria will include the following: • The property shall consist done (1) owner -occupied residential unit. 2005-2006 Action Plan 78 • Preference will be given to eligible handicapped/disabled and elderly (62 years or older) households and homeowners. • Handicapped and/or disabled individuals will be considered an individual having a mental impairment which: (1) Is expected to be long continued and indefinite duration, (2) substantially impedes his/her ability to live independently; and is of such a nature that such disability could be improved by more suitable housing conditions. • The property must be located in the City of Miami. ■ The appraised value of the home may not exceed the maximum sales price (value) allowed under the SHIP Program. • The property must require needed repairs such as roofing, electrical and plumbing to meet the decent, safe and sanitary standard to immediately rectify hazardous and potentially hazardous conditions. ■ The maximum amount of financial assistance to be provided may not exceed the lesser of (1) the actual cost of rehabilitation or (2) $15,000. ■ The applicant may not be delinquent on any debt owned to the City of Miami. Single Family Replacement Housing Program The Single Family Replacement Housing Program is designed to address substandard and dilapidated housing units for which the cost of repairs or poor housing conditions cannot be addressed through the SHIP and HOME assisted Single Family Rehabilitation Programs. Under this strategy, only single family residential properties which are beyond repair and unsafe for human habitation will be provided assistance. The Single Family Housing Inspection.Unit will determine the economic feasibility (cost) of the rehabilitation and soundness of the structure, in consultation with the City of Miami Building Department. The SHIP funds will be used to defray the cost of temporary relocation expenses, demolition of the dilapidated structure, soft and hard construction costs associated with the reconstruction of the new home. This strategy will be used primarily 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. Below is -a description of the — program requirements. 1. Income Category to be Served: Available SHIP funds shall be reserved for income eligible persons and households who occupy the property as their principal residence. To comply with the overall requirements under Chapter 67 of the Florida Administrative Code, eligible persons and households will be very low, low or moderate income, 2. Recapture Provisions: Financial assistance under the Single Family Replacement Housing Program 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 thirty (30) years based income levels. 2005-2006 Action Plan 79 The following are the repayment schedules based on income: • Applicants with incomes Tess than 50% of median income will receive a zero percent (0%) amortizing loan with a term of thirty (30) years. Payment of principal will begin six (6) months from the issuance of a certificate of completion and occupancy of the home. • 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 thirty (30) years. Payments of the loan will begin six (6) months from the issuance of a certificate of completion and occupancy of the home. • Applicants with incomes at sixty percent (60%) or higher but less than seventy percent (70%) of median income will receive a two (2%) percent (2%) fully amortizing loan with a term of thirty (30) years. Payments of the loan will begin six (6) months from the issuance of a certificate of completion and occupancy of the home. • Applicants with incomes at seventy (70%) or higher but less or equal to one hundred and twenty (120%) of median income will receive a three percent (3%) fully amortizing loan with a term thirty (30) years. Payments of the loan will begin six (6) months from the issuance of a certificate of completion and occupancy of the home. Persons or households that qualify and receive financial assistance must execute a Deferred Payment Loan Mortgage and Note that will be filed with the Miami -Dade County Clerk of the Circuit Court for compliance with the recapture provisions for the program. This mortgage will remain against the property for the term of the loan.. If the property is rented, leased or sold during the thirty (30) year period, then the loan will become due and payable to the City of Miami at that time. In the event of death of all eligible homeowner(s), the heir to the property can assume the obligation of the original owner as long as the heirs are income eligible, remain owner -occupants of the property and do not sell or rent the property for the remaining term of the mortgage and note, 3. Maximum Award: Residents meeting the selection criteria will be awarded a maximum of $110,000 for temporary relocation expenses, demolition of the dilapidated structure, and atl costs associated with the reconstruction of the new home. 4. Selection Criteria: All recipients of financial assistance must meet the eligibility requirements as provided in the Florida Statutes, Florida Administrative Code, the SHIP Program Ordinance, Resolution, the Plan and this Strategy. Eligible. housing includes single family owner-oceupied homes that have been determined by the housing inspector, in consultation with the Department of Building, to be beyond repair, unsafe for human habilitation and suitable for demolition. Mobile homes or manufactured homes will not be a type of replacement home offered under this strategy. The properties to be assisted must be the primary residence of the owner and the property must be located within the corporate limits of the City of Miami. Applicants will be selected from an existing waiting list, on a first come first serve basis, subject to funding availability and in such a manner as to comply with the statutory requirements: • Applicants with household income above (120%) percent of the median area income limit are ineligible for SHIP assistance under this strategy. 2005-2006 Action Plan 80 ■ For eligible persons or households who are building a new home on land that they own, a State -certified Appraiser will determine the sales price or value of the newly constructed unit. The appraisal must include the land value and the after construction value of the property and must be dated within twelve (12) months of the date construction is to commence. ■ The amount of the financial assistance provided will be the full cost of demolition, temporary relocation and reconstruction of the property, to include hard and soft costs, not to exceed $ 110,000. The following costs associated with this strategy are eligible: • Hard costs, which are typical and customarily viewed as construction cost(s) by institutional lenders; ■ Payment of impact fees; • Infrastructure fees typically paid by the developer; ■ Construction soft cost such as architectural and engineering fees, appraisals, if directly related to housing construction; and • Temporary relocation cost associated with the reconstruction of the home, SHIP Homebuyers Financing Program The City of Miami through the Homebuyers Financing Program will provide down payment, closing cost and/or second mortgage financing assistance to eligible persons and households who are first time homebuyers to purchase a newly constructed or existing residential properties within the City of Miami. The strategy will be available to assist very low, low and moderate income residents to purchase a single family home, town home or condominium. The following describes the terms that govern the use of the SHIP Homebuyers Financing Program. I. Income Category to be Served: This strategy will serve very low, low and moderate income families in proportions as stipulated in the SHIP Statutes and FAC Chapter 67-37. 2. Maximum Award: Residents meeting the selection criteria will be awarded a maximum amount based on the number of bedrooms as shown in the chart below. However, the amount cannot be more than $85,225.00 or the amount needed to meet credit underwriting. Number of Bedrooms 0 1 2 3 4 Maximum-Slibsidy $42,980 $49,557 $59,766 $76,501 $85,225 3. Recapture Provisions: Financial assistance to be provided under the SHIP Homebuyer Financing Program will be provided to eligible homeowners in the form of a zero percent, deferred payment, and a twenty (20) year loan. There are no monthly payment requirements associated with this loan, There is no amortization of this loan. Repayment of the full principal balance of the loan is required if the property receiving the financial assistance is rented, transferred or sold during the life of the loan, Homeowners that qualify and receive assistance must execute a Mortgage and Note that will be recorded in the records of Miami - Dade County Clerk of the Circuit Court for compliance with the recapture provisions for the program. In the event of death of all eligible homeowner(s), the heirs to the property can assume the obligation as long as the they qualify based on the original terms and conditions provided to the homeowner (including age, income and household size) remain owner occupants of the 2005-2006 Action Plan 81 property and do not sell or rent the property for the remaining term of the mortgage and note. An heir or prospective purchaser who does not qualify based on the provisions of this strategy will be required to repay the balance of the outstanding loan amount provided by the City of Miami. 4, Selection Criteria: Applications will be processed from an existing waiting list on a first - come, first ready, first serve basis from all applicants meeting the selection criteria, subject to funding availability and in such a manner as to comply with the statutory requirements. Other selection criteria will include the following: ■ The property shall consist of one (I) owner -occupied residential unit. • 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 SHIP Program for new and existing homes. • The property must meet safe and sanitary standard conditions at closing or funds must be held in escrow to bring it to safe and sanitary standards after closing. • The applicant may not be delinquent on any debt owed to the City of Miami or Miami -Dade County. • Applicants purchasing Manufactured or Mobile homes are not eligible for funding under this strategy. SHIP Homeownership Development Program The SHIP Homeownership Program is designed to promote and create affordable homeownership opportunities for very low, low and moderate income families and individuals. SHIP Program funds reserved for this strategy will be used to assist not -for -profit and for profit housing developers or the City. SHIP funds reserved for this strategy will be utilized by the City of Miami to finance the project cost associated with site development, hard and soft construction financing and permanent financing associated with the development of affordable housing units by for -profit and not -for -profit housing developers or the City.. The following describes the program requirements for the SHIP Homeownership Development Program. 1. Income Category to be Served: This strategy will serve very low, low and moderate income families in proportions as stipulated in the SHIP Statutes and FAC Chapter 67-37. 2. Maximum Award: Developments meeting the selection criteria will be awarded a maximum of thirty thousand dollars $30,000 per unit, 3. Recapture Provisions: The financial assistance provided under this strategy to the developer may be provided as a low interest rate loan or in the form of a grant which will be determined based on the economic feasibility and affordability of the housing project(s) to be assisted with SHIP funds. The assistance provided under this strategy will be provided in the form of a construction loan at zero — six percent (0% - 6%) and there will be no monthly payments associated with the loan during the construction phase, Once the developer has successfully completed the construction and all the housing units are purchased and occupied by eligible homebuyers, the City of Miami will fully satisfy the developer's obligation to the City in connection with the financing of the project. Financial assistance made to the developer as a grant will also be satisfied upon completion of the construction phase and all the housing units must be marketed and occupied by eligible homebuyers. 2005-2006 Action Plan 82 Financial assistance provided to a project in the form of permanent second mortgage financing for the homebuyers will be provided to eligible households based on the same criteria as described in the Homebuyers Financing Program Strategy as previously outlined in this chapter. 4. Selection Criteria: SHIP funding to be provided by the City of Miami under the Homeownership Development Program strategy will be awarded through a Request for Proposal process. Any SHIP Program allocation including the term of the loan will be recommended by City staff to the City's Housing and Commercial Loan Committee for approval/disapproval based on the following criteria: Project feasibility and ability of the developer/sponsor to commence construction within six (6) months funding award. • Evidence of availability of construction and first mortgage financing. ■ Consistency with the City's Five (5) Year Consolidated Plan (2004-2009). • Ability to demonstrate project will be affordable to low and moderate income households. SHIP Activities Below is a list of the activities that the City of Miami will undertake in the utilization of SHIP funds: Strategies to Preserve Affordable Rental Housing 1. Activity: New Construction of Multi -family Rental Consolidated Plan Reference Code: 1 RH (b) Strategy: Increase the supply of affordable rental housing available to very low and low income residents through new construction. Targeted Outcome: Increase the supply of affordable housing rental stock Source: HOME and SHIP Strategies to Preserve Existing Homeowners — Homeowner Retention 2. Activity: Single Family Rehab and Code Violation Elimination Assistance Consolidated Plan Reference Code: 1 HA (a) Strategy: Provide rehab assistance to homeowners for deferred maintenance, home repairs and elimination of code violations. Targeted Outcome: Improve the quality of existing owner occupied housing through rehab assistance. Source: SHIP and CDBG 2005-2006 Action Plan 83 3. Activity: Replacement of Unsafe Housing Consolidated Plan Reference Code: 1 HA (b) Strategy: Provide assistance to homeowners to replace unsafe housing structures. Targeted Outcome: Improve the quality of life of existing homeowners by reducing the number of unsafe structures that are owner occupied. Source: SHIP and HOME Strategies to Increase Homeownership 4. Activity: New Construction of Homeownership Units Consolidated Plan Reference Code: 1 HO (a) Strategy: Increase the supply of affordable homeownership units through new construction. Targeted Outcome: Provide greater opportunities for low to moderate income families to achieve homeownership and improve their housing conditions. Source: SHIP and HOME 5, Activity: Homeownership Financing Consolidated Plan Reference Code: 1 HO (c) Strategy: Assist low to moderate income families obtain homeownership by providing financing assistance (i.e. down payment, closing cost, and second mortgages), Targeted Outcome : Increase the number of households able to achieve homeownership in the Model Blocks and the NDZs through financing assistance Source: HOME, SHIP and ADDI 2005-2006 Action Plan 84 XIIT. Local Affordable Housing Incentives for Developers The City of Miami will continue to provide incentives to developers through the implementation of Affordable Housing Incentive Plan, This plan provides developers of affordable housing projects with a number of local incentives that are intended to expedite the pre -development process and reduce certain cost(s) in connection with the production of affordable housing projects in the City of Miami. The incentives include: • Expedited Permitting for Affordable Housing Projects • Ongoing Review Process • Impact Fee Wavier / Exemption • Interim Proprietary and General Services Fee Waiver / Exemption • Reduction of Parking and Setback Requirements The requirements of the plan will be amended to limit the incentives to projects that are located within the Model Block and the NDZ areas. Description of Local Affordable Housing Incentives Below is a detailed description of the Affordable Housing Incentives. Expedited Permitting: Priority is given to affordable housing developments by expediting the permitting process. The City of Miami Department of Community Development works closely with the Building Department in assisting developers through this process. Developers of affordable housing projects whose projects have been certified as affordable by the City of Miami Department of Community Development are eligible for certain incentives that assist with expediting the permitting process. Prior to presenting the project's building plans to the Department of Building for the plan review process, developers are able to schedule a pre -construction meeting with the Department of Building. A pre -construction meeting is attended by a representative from each of the plan review sections. This meeting provides the developers with information and suggestions -that will better prepare them for the plan revision process. Once the building plans have gone through theplan review process, developers can schedule a "Joint Review" meeting, also attended by a representative of each of the planning review sections, to address the comments made by the plan reviewers. This process can shorten the permit approval process by 15 days. There is no charge for this service to developers of certified affordable housing projects. Ongoing Review Process: The Department of Community Development conducts on -going reviews of actions being considered by the City of Miami's Planning Advisory Board, Zoning and Code Enforcement Boards and the City Commission that are being considered and may have an impact on affordable housing. 2005-2006 Action Plan 85 Impact Fee Waiver / Exemption: Affordable housing projects are exempted from the payment of Development Impact Fees, as stipulated in Ordinance No. 10426, adopted April 25, 1998. The Department of Community Development is required to certify to the Department of Building that the proposed housing project(s) will be affordable to low and moderate income families and individuals, which results in the developer securing an exemption from the impact fees. This incentive is functioning as intended. Interim Proprietary and General Services Fee Waiver / Exemption Affordable housing projects are exempted from the payment of interim proprietary and general services fees as stipulated in Ordinance No. 010705, adopted February 7, 1990. The Department of Community Development is required to certify to the Department of Building that the proposed housing project(s) will he affordable to low and moderate income families and individuals which results in the developer securing an exemption from the above mentioned fees. This incentive is functioning as intended. Reduction of Parking and Setback Requirements Affordable housing projects are afforded an opportunity to receive a reduction in parking by the City of Miami, as stipulated in Section 917.5 of Ordinance No. 11000, adopted September 4, 1990. The Department of Planning and Zoning is responsible for facilitating this incentive for providers of housing affordable to low and moderate income. This incentive is functioning as intended. Interim Proprietary and General Services Fee Waiver / Exemption Affordable housing projects are exempted from the payment of construction debris removal fees as stipulated in Ordinance No. 11725, adopted November 17, 1998, The Department of Community Development is required to certify to the Department of Building that the proposed housing project(s) will be affordable to low and moderate income families and individuals which results in the developer securing an exemption from the aforementioned fee. This incentive is functioning as intended. 2005-2006 Action Plan 86 XIV Monitoring Outcome -based Community Development The Community Development Director, Assistant Director and Program Managers oversee the planning process and budgeting process to ensure that projects are developed consistent with grant requirements. This planning process also ensures that each funded project is consistent with the Consolidated Plan and makes progress toward identified community development objectives. The aforementioned staff members make certain that projects are being completed in a timely manner and that the expenditure deadlines for various grants are being met. CDBG- Sub -recipient Contracts For sub -recipient contracts, the Contract Compliance Analysts approves the scope of service. As a result, the contract analyst engages in contract negotiations consistent with HUD regulations and with the priority needs identified in the Consolidated Plan. This process will ensure compliance with applicable laws and HUD guidelines. Then, the plan is reviewed by the program manager who makes sure conformity is exercised and that the plan coincides with program directives. Finally, the City Law Department prepares a contract consistent with applicable laws and guiding principles. Upon, the Law Department endorsing the contract for execution of services the agency will commence program operations. The agency will then forward expenditures for reimbursement to the Fiscal Department. The Fiscal Assistants will process payments and review the information rendered for eligibility, compliance, and reasonableness with the scope of service. Once a payment reimbursement has been processed by the Finance Department, it is given to the Assistant Director for final approval. The Contract Compliance Analyst also administers implementation of the funded request for proposal, to secure that the work is carried out in accordance with the guidelines stipulated in the contract. The forthcoming sub -recipient agencies will be monitored at a minimum of once per year for compliance with administrative, financial, and internal control guidelines. The targeted goal for compliance monitoring will be twice per year for every agency. Each agency with significant findings on such a monitoring will be typically monitored, on a more frequent basis in the future. All recipient agencies must provide periodic reports which describe the activities carried out and identifying the beneficiaries for the project. Moreover, the agencies must also submit performance and reimbursement reports on a monthly basis. These reports help to identify and ensure that minority outreach is occurring in conformity with HUD's program objectives. HOME- Contract Execution Pre -requisites For projects carried out with the use of HOME funds Contract Compliance Analysts are assigned to monitor the progress of each project and submit invoices for payment. All payment requests for HOME construction projects will be cleared and verified by City of Miami Inspectors. The inspectors will assume responsibility for inspecting construction projects prior to authorization of payment. Payments for reimbursement are reviewed and approved by the Fiscal Assistants, whom obtain the final approval from the Finance Assistant Director. This operation protocol preserves a checks and balance system that minimizes overpayment and promotes sound fiscal management practices. In addition, the Contract Analyst assures that all prerequisites have been finalized, as it concerns environmental reviews, Section 3 compliance, and Davis -Bacon monitoring in an attempt to coincide 2005-2006 Action Plan 87 with Federal Regulations. Consequently, all pertinent documentation will be in accordance with Federal Mandates prior to submission for reimbursement and payment. The Department of Community Development will implement and outcome -based Consolidated Plan. The goal of this initiative is to increase the focus, accountability, impact, and ease of monitoring funded projects. Funds expended through the fiscal years will be tied to performance benchmarks. A forma monitoring strategy will de developed to evaluate the viability, reliability and impact of funded projects. The decision to provide continuing funding for an organization should be shaped, in large part, upon review of their success in meeting established outcomes. The City understands that all efforts using Federal, State and Local resources must be in accordance with established laws, regulations, and sound management accounting practices. All programs awarded Federal monies will be monitored and reported according to the program statutory and regulatory rules of those programs. Affordable housing programs will be monitored on an ongoing basis by contract compliance analysts. The Department of Community Development will establish a sub -recipient monitoring plan at a minimum establishing the submission of periodic reports and audited financial statements. A description of the standards and procedures that the City will use to monitor activities carried out in furtherance of the plan and will ensure long term compliance with requirements of the programs involved, including minority business outreach. The objectives of the Department of Community Development's monitoring system are: • To minimize the City's liability by identifying and correcting major program deficiencies before resulting in financial payment or funding sanctions. • To conduct production monitoring as part of an overall process. ■ To conduct quality control and compliance monitoring, by assessing the quality of the process and product delivery. CD will continue to comply with HUD's requirements by preparing the following documents: > Five Year Consolidated Plan ➢ Annual Action Plan > Consolidated Annual Performance and Evaluation Report Davis -Bacon Prevailing Wages This section provides a brief overview of Davis -Bacon Streamlining and Labor Standards Administration and Enforcement Objectives: • Apply Federal labor standards properly. Make certain that labor standards, including Davis -Bacon prevailing wage rates, are applied where required, Ensure that any exemptions or exclusions are identified. ■ Through education and advice, support contractor compliance with labor standards. Provide basic training and technical support to contractors to ensure that they understand their obligations under prevailing wage and reporting requirements. • Monitor contractor performance. Perform reviews of payroll submissions and other information to help ensure contractor compliance with labor standards provisions and the payment of prevailing wages to workers. • Investigate probable violations and complaints of underpayment. Thoroughly explore any evidence of violations, especially allegations of underpayment. 2005-2006 Action Plan 88 ■ Pursue debarment against repeat labor standards violators. HUD will not tolerate contractors who violate the law. The Davis -Bacon Act (DBA). The Davis -Bacon Act requires the payment of prevailing wage rates (which are determined by the U.S. Department of Labor) to all laborers and mechanics on Federal construction projects in excess of $2,000. Construction includes alteration and/or repair, including painting and decorating, of public buildings or public works. As stated a prevailing wage must be paid to laborers when federal funds are used to pay labor costs for any project over $2,000 or any multi -family project over eight units. The prevailing wage is usually higher than competitive wages, raising the cost of housing production and rehabilitation activities. Davis -Bacon requires extensive paperwork that adds to housing costs by requiring documentation of the prevailing wages for compliance with labor monitoring requirement. Additionally, federal paperwork requirements are extensive, which increase housing costs. While the objective of the prevailing wage requirements is to protect workers from being paid less than their labor is worth, the increased cost results in higher housing construction expenses. These requirements often restrict participation by small, minority contractors. Conversely, many of the workers hired for such projects are better paid attributed to Davis -Bacon requirements. This is vital for low income limited skilled workers who are intended to be the beneficiaries of this federal law. The City of Miami will continue to enforce Davis -Bacon compliance to the greatest extent practicable. Section 3 In compliance with the Code of Federal Regulations 24 CFR 135, recipients and covered contractors must demonstrated compliance with the "greatest extent feasible" requirement of Section 3 by meeting the goals set forth for providing training, employment and contracting opportunities to section 3 residents and section 3 business sectors. Under Section 3 of the Housing and Urban Development Act of 1968, wherever HUD financial assistance is give for housing or community development, to the greatest extent feasible, economic opportunities will be given to residents and businesses in that area. The assistance may be in the form of job training, employment or contracts, The Housing and Urban Development Act was amended by Congress in 1994 to help give citizens deprived of economic activity increased access to employment and job training. The Section 3 Act requires recipients of HUD funds and the contractors they employ to ensure that the economic opportunities generated by the expenditures go to benefit low-income persons "To the greatest extent feasible". The City of Miami will continue to enforce Section 3 compliance in all applicable programmatic requirements. Environmental Reviews The environmental review process for entitlement jurisdictions is outlined in the Code of Federal Regulations 24 CFR-58. The procedures outlined in this regulation are -used by entities that assume HUD's environmental review responsibilities in determining program compliance with the intent of satisfying the National Environmental Policy Act (NEPA). Jurisdictions must assume this responsibility in all applicable federal programs through a system of enforced rules and policies. The Department of Community Development maintains an effective system of communication with HUD to sustain departmental regulatory compliance. The City endows compliance monitoring by adhering to the following categories: • Exempt • Categorically Excluded > Not Subject to 58.5 ➢ Subject to 58.5 2005-2006 Action Plan 89 ■ Environmental Review Assessment The City's Environmental Review Process is explained in detail the subsequent flowchart. 2005-2006 Action Plan 90 9. CDBG, HOME and HOME- CHDO funds are to be used as gap financing and not as the only funding source for a project or program. Applicants must provide written documentation wit lication, of the availability and status of all other current sources of funding (towards the project or its administration) at the time the application is submitted. 10.HOME funds are loans, not grants. All HOME funds will be treated as loans requiring property or another form of collateral to be used as security for repayment for the duration of the affordability period. t rgiveness jf the loan will be considered on a, case -by -case basis, only for projects serving very -low income residents, homeless persons and families. pR.Qit.. r„l'7 11. For major pita1 improvement and housing projects, OCED may require that th CDBG gint awarded be in the form of a loan which must be,' secured by a mortgage on all real property acquired or improved in whole' or in part with CDBG funds. Contractors shall execute any mortgage required by OCED and pay any costs associated with recording and perfecting of said mortgage. However, the contractor will not be required to make any payments on the mortgage until theproperty is sold or fails to be used to meet a CDBG national objective. 12.In accordance with industry standards, OCED will hold 2. of te_total ram, award as a retainer until the completion of the construction work is 1 ve flit ed by OCED. The 10% retainer will be released after satisfactory final certification of completion or occupancy, final release of liens and as - built drawings are received by OCED. IA ff.1; Sara LE -r-o ALL k,�..d s p QJ;) r) (c.c. .4k 1 ac-1%J i5;TiDl•-5) . 79 XV Citizen Participation In an effort to stimulate citizen involvement and promote citizen participation in the planning process, the City Commission adopted a revised Citizen Participation Plan which complies with federal regulations at a publicly advertised Public Hearing (See attached Citizen Participation Plan at the end of this section). The Citizen Participation Plan was designed to provide city residents the opportunity to be actively involved in the planning, implementation, and assessment of community needs to be addressed through the City's grant/loan programs funded by the U.S. Department of Housing and Urban Development (HUD). These programs include; Community Development Block Grant (CDBG), Emergency Shelter Grant (ESG), HOME Investment Partnerships Program (HOME), and Housing Opportunities for Persons with AIDS (HOPWA), and any resulting program income. The focus of the plan is to: • Increase public participation; • Encourage a diverse representation of residents, including minorities, non-English speaking persons, and persons with disabilities; • Involve low- and moderate -income residents, especially those living in slum or blighted areas, and in areas where CDBG funds are being utilized; • Receive comments, views, suggestions or complaints from residents; and • Reduce public isolation from government. In its effort to increase citizen involvement in the Consolidated Plan process, the Department of Community Development implemented its approved citizen participation endeavor that integrated a series of public hearings at the District levels that were chaired by the City Commissioners representing each of the five City Districts. The City Commission's participation in the process continues to be the catalyst that has contributed to the increased participation by neighborhood residents. The intent of the District Public Hearings is to determine community needs and solicit neighborhood input. In order to create maximum awareness and accessibility of the various activities described above, the City of Miami implemented a public information campaign intended to: 1) Inform the community about the Consolidated Planning process, 2) Obtain community buy -in from the beginning, and 3) Build consensus on the end goals. To accomplish this, the City carried out the activities listed below. The City diligently advertised the ratification of the Consolidated Plan fourteen (14) days prior to the June 10, 2004 Commission meeting and strictly followed. • Published notice of activities in general circulation newspapers, including minority ---- and non-English language newspapers; • Made notices available in Spanish, English and Creole; • Used the City of Miami website to convey information on the times and schedules of the public meetings; • Worked with community groups to help disseminate information and assure attendance at public meetings; • Mailed post cards to city residents notifying them of the public hearings. This was done at the request of the City Commissioners. 2005-2006 Action Plan 91 Priority Needs Commission District Priorities During the Neighborhood Public Hearings, residents and non-profit agencies identified the needs and priorities for each of the city's Commission Districts. The following is a brief summary of the priority needs for each Commission District by topic area. Category: Public Service District 1,2,3,4,5 Elderly Meals Childcare After -school Care & Recess Pros rams for •ersons with Develo•mental Disabilities Categor : Economic Development District 1,2,3,4,5 Multifamily New Construction — Homeownership Multifamily New Construction — Rental Single Family Homeownership Single Family Rehabilitation Single Family Re•lacement Homes Categor : Housin• District 1,2,3,4,5 Commercial Facade Program Commercial Code Compliance Program Technical Assistance To For Profit Businesses Commercial Loan Pro. ram ('ategory: Capital Improvements Parking ADA compliance Beautification of Sth Street Parking Open to all facets of capital improvements Capital Improvements Maintenance of roadways and rights of way 2005-2006 Action Plan 92 Code Enforcement Use Law Enforcement Trust Fund to address youth crime Open to all facets of Code and Law Enforcement Illegal dumping Abandoned houses Traffic Control/Speeding Noise control in residential areas Open to all facets of Code and Law Enforcement Neighborhood appearance Code Enforcement Coordination and Government Administration Lobby Washington for funds Representative City Boards (i.e. Zoning Board) Lobby for programs to assist non -citizens and illegal immigrants Open to various improvements Open to various improvements Open to various improvements Open to various improvem ents IIOI'WA Program County -wide Long-term tenant based rental subsidies Emergency rental, —mortgage and utility assistance Project -based rental subsidiaries Housing information, referral and advocacy Special needs residential care Program inspections Technical assistance 2005-2006 Action Plan 93 City-wide Priority Needs The information provided by the residents, local officials and stakeholders was compiled and analyzed in order to determine the high priority needs for the City of Miami. The following are the issues deemed to be the highest priority needs for the City: • Poverty Reduction • Neighborhood Preservation (Infrastructure Improvements, Slum and Blight Removal, Crime Reduction, Code enforcement, etc.) • Preservation of Affordable Housing (rental and ownership) • Economic Development and Community Revitalization • Workforce Development/Job Creation • Education • Services to Persons with HIV/AIDS • Elderly Services 2005-2006 Action Plan 94 Public Notice and Review To assure that residents had an opportunity to provide input and review the proposed polices in the Action Plan, the City of Miami advertised notice of the public hearings and information on how residents could access the Action Plan document and submit comments or complaints regarding the proposed activities. The notices were advertised in the subsequent newspapers; The Miami Herald, El Nuevo Herald, Miami Times and the Haiti en Marche. Below is a list of the public notice activities: ■ January 24, 2005-February 9, 2005 Notice of Special District Public Hearings: Advertised notice of Special District Public Hearings with the intent to solicit public participation. Furthermore to set priorities for funding allocations responsive to the 3151 Program Year Annual Action Plan covering fiscal years 2005-2006. The public hearings established funding priorities for the following grants: Community Development Block Grant (CDBG), Emergency Shelter Grant (ESG), American Dream Downpayment Initiative, Housing Opportunities for Persons with AIDS (HOPWA), and Home Investment Partnership (HOME). ■ June 9 2005 — Special Public Hearing: Held Special Public Hearing to solicit public comment and participation for the funding allocation process of activities subsidized, under the following grants: + CDBG; HOPWA; + HOME; •+• ESG; + ADDI; for the 315' Program Year Annual Action Plan. As such, funding allocations were approved at the meeting. • June 13, 2005 — Notice of Comment Period: Advertisement of public notice referencing the timeframe and commencement of the Action Plan comment period. ■ June 27, 2005 — Comment Period: Commencement of Action Plan comment period for public review and written comment for a period of thirty (30) days. 2005-2006 Action Plan 95 Table lA Homeless and Special Needs Population Estimated Current Unmet Need Inventor Nced / Gap Relative Priority Individuals Example.; E^mergeflcy Shelter ` ` ,115 ; S Zfta i M Beds / Units Emergency Shelter 1483 773 532 L Transitional Housing 1495 938 1587 M Permanent Housing. 2874 701 1398 H Total 5852 2412 3517 Estimated Supportive Services Slots Job Training 158 106 52 L Case Management 4400 2155 2245 H Substance Abuse Treatment 968 215 753 M Mental Health Care 1056 132 924 H Housing Placement 4400 2412 1988 H Life Skills Training 4490 2412 1988 H Other Estimated Sub- populations Chronic Substance Abusers 2420 1185 1235 H Seriously Mentally I11 616 301 315 M Dually - Diagnosed 968 474 809 H Veterans 748 366 382 L Persons with HIV/AIDS 132 48 84 M Victims of Domestic Violence 264 129 135 M Youth NA NA NA NA Other Persons in Families with Children Example _ ,. f Emergency Shelter 115 '>° : ' $9 26 M:' . . Beds / Units Emergency Shelter 826 617 209 L Transitional Housing 1542 1044 166 M Permanent Housing 2043 751 1092 H Total 4411 2412 1467 Estimated Supportive Services Slots Job Training 2161 1181 980 M Case Management 4411 2412 1999 H Substance Abuse Treatment 396 217 179 M Mental Health Care 705 385 499 M Housing Placement 4411 2412 1999 H Life Skills Training 4411 2412 1999 H 2005-2006 Action Plan 96 Example .. Emergency Shelter 115: $9 26 IVI Other Estimated Sub- populations Chronic Substance Abusers 400 EST 200 200EST M Seriously Mentally I11 617 217 400 M Dually - Diagnosed 475 385 90 L Veterans NA NA NA NA Persons with HIV/AIDS NA NA NA NA Victims of Domestic Violence 750 410 341 H Youth NA NA NA NA Other ALL NUMBERS ARE BASED ON THE MIAMI-DADE COUNTY'S CURRENT INVENTORY OF HOUSING — NEEDS ARE BASED BY A POINT IN TIME SELF REPORTED SURVEY CONDUCTED BY THE CITY OF MIAMI HOMELESS PROGRAM OF 200 INDIVIDUALS. NEEDS ARE BASED ON THE PERCENTAGES OF THOSE SURVEYED. NA=POPULATIONS THAT EITHER ARE NOT TRACKED AND/OR SERVED. 2005-2006 Action Plan 97 Table 1B Special Needs Subpopulations SPI?CIAI. NEI+;1)S SIJBr()PULATIONS Elderly, Frail Elderly* Severe Mental Illness, Developmentally Disabled, Ph sicall Disabled** Persons w/HIV/AIDS*** TOTAL Priority Need Dollars to Address Level Ili ;h, mcduun, I.uw, No Such Need High High Unmet Need 2,207,440 372,867 6,867,150 9,447,457 *Combination of Senior Centers in Public Facilities and Senior Services in Public Service Needs as reported in Table 2B. ** Handicapped Services as reported in Table 2B. ***HOPWA: 5,386 unmet need x S1,275 = $6,867,1501year 2005-2006 Action Plan 98 Table 1C Summary of Specific Homeless/Special Needs Objectives (Table 1A/1B Continuation Sheet) Obj Il Specific Objectives Performance Expected Measures (Inns 31" Program (31" Year 20I15-2006 Program Year) 2SN (a) Tenant -based Rental Housing: Provide long-term Households 1,100 tenant -based rental subsidy and the support of a comprised of low households Housing Specialist to individuals living with AIDS and their families and increase the current number of households that can be served by the program from 1,200 households to1,250 households per year. YEARS 1-5 income persons living with AIDS and their family members provided tenant -based rent assistance. per year. 2SN (b) Project -based Rental Subsidy: Expand the number Project -based rent- 42 units of project -based rent -subsidized units for low income persons living with AIDS and their families. YEARS 1-5 subsidized units restricted to housing low income persons living with AIDS and their family members. per year. 2005-2006 Action Plan 99 Obj it Specific Objectives Performance Expected Measures Units 31'1 Program (31" Year 2005-2006 Program Year) 4 SN (a) Homeless Prevention Strategy: Develop a homeless prevention strategy for City residents — YEAR 2 Adopt a plan to end chronic homelessness na 4 SN (b) Limit Street Feeding: Develop a plan to limit street feeding — YEAR 1 Enact legislature na 4 SN (c) Outreach Services: Expand outreach services — YEAR 1 Make 25000 contacts and 4500 placements yearly na 4 SN (d) Low/Demand Haven Beds: Expand the availability of low-demand/safe haven beds --- YEAR 2 Fund 80 Additional Beds 80 4 SN (e) Mental Health Services: Fund the availability of mental health services on a street level --YEAR 2 Hire an LCSW na 4 SN (f) Collaboration with Miami Police: Strengthen communication of collaborative efforts with the Miami Police Department —YEAR 1 Became part of the yearly training sessions 40 4 SN (g) Follow-up on all placements Hire an additional Case Manager na The City of Miami only provides outreach services to homeless individuals and families and as such will, implement its objective within the first year of the plan. As Housing units become available within Miami - Dade County Continuum of Care System of Services, we hope to eliminate homelessness by year 2012. 2005-2006 Action Plan 100 Table 2A Priority Needs Summary Table l'1tIOR1"1'1' HOUSING NH:1,11)ti (households) Small Related (2 to 4 members) Priority I evel lligh, Illeditun, 0-30% Need Low H Total households <811'%, 7,818 Estimated NeedTotal1111 6,708 `%, of in Need 12% Annual Goals 63 Renter 31-50% M 5,600 5,270 9% 47 51-80% H 7,188 5,463 10% 52 Total 20,606 17,441 31 % 162 Large Related (5 or more members) 0-30% L 2,241 2,127 4% 80 31-50% L 1,765 1,756 3% 58 51-80% L 2,542 2,349 4% 80 Total 6,548 6,232 11% 218 Elderly (1 & 2 members) 0_30% H 11,236 7,326 13% 24 31-50% M 4,965 3,679 6% 11 51-80% L 2,773 1,528 3% 5 Total 18,974 12,533 22% 40 All Other 0-30% M 6,376 4,195 7% 0 31-50% M 3,262 2,841 5"/00 51 $0% L 3,507 2,325 4% 0 Total 13,145 9,361- 16% 0 TOTAL 59,273 45,567 - 80% 420 Owner 0-30% M 4,636 3,658 6% 140 31-50% M 4,593 3,546 6% 195 51-80% M 7,064 4,528 8% 140- TOTAL 16,293 11,732 20% 475 g`.. =e e}T+Q Special Needs* 0-80% H 6,996 5,386 100% 1,216 2005-2006 Action Plan 101 PRIORITY MUSING NEEDS (households) Priority Nced Total I.cvcl Households Ili/ lk, Medium, LowHIY`%� Estimated Need 'i, of 'rolall1lt in Need Total 215 Goals 215 Renter Goals 215 Owner Goals Annual goals 4,455 3,500** 955 Source: US Department of Housing & Urban Development- SOCDS CHAS Data, 2000 H = 10% or greater of Total HH in Need M= 9-5% of Total HH in Need L = 4-0% of Total HH in Need Definitions Unmet Need: The number of eligible households in need of assistance. This includes households with a cost burden greater than 30% of income and/or overcrowding, and/or lack of a complete kitchen or plumbing facilities. Small Related: A household of 2 to 4 person that includes one person that is related to the householder by blood, marriage or adoption. Large Related: A household of 5 or more persons that includes one person that is related to the householder by blood, marriage or adoption. Elderly: A household of one or more persons in which the head of the household or spouse is at least 62 years of age. Special Needs Population: A household of one or more persons that include persons with mobility impairments, HIV/AIDS, or persons with alcohol or other drug addiction that may require supportive services. Other: A household of one or more persons that does not meet the definitions described above. Goal: Number of households to be assisted with housing. Calculations — *Special Needs: Refers to individuals with HIVIAIDS. **Rental Units/Year Section 8 Rental 420 Multifamily Rental 250 Multifamily Rental 30 (25%) 700 ***Homeownership Replacement Housing 11 New Construction 95 (75%) Single Family Rehab 50 Homeownership Assist 40 191 5 Years 3,500 955 2005-2006 Action Plan 102 Table 2B Community Development Needs PRIORITY ('OMM(UNFIN DEVELOPMENT NEEDS RUIIJ4C> CTLI , N1 F�AS (pro ecl�s) � ` } Priority Need Level high, hlydinm, l.uu, Nu Surf Nerd x Dollars to Address Unmet Priority Need (5 Yeas) }t s Senior Centers High $189,904.80 Handicapped Centers High Homeless Facilities* * Medium - Youth Centers High Child Care Centers High Health Facilities High Neighborhood Facilities Medium Parks and/or Recreation Facilities High $254,600.00 Parking Facilities High Non -Residential Historic Preservation - INF'RA S TRU C:)<'URE : (projects) Water/Sewer Improvements High $16,553.80 Street Improvements High $11,297,000 Sidewalks High Solid Waste Disposal Improvements High Flood Drain Improvements High PUBLIC SERVICE NEEDS (people) Senior Services High $2,017,535.09 Handicapped Services High/Medium $372,867.44 Youth Services High $1,993,939,75 Child Care Services High $274,500.90 Transportation Services Medium $108,520.63 Substance Abuse Services High $282,368.75 Employment Training High/Medium $223, I57.5 Health Services High $184,541.88 Lead Hazard Screening Medium - Crime Awareness High $408,571.25 Other Public Service Needs High/Medium $829,150.63 2005-2006 Action Plan 103 Priority Need PRIORITY C OMMl1NITY bevel DEVELOPMENT NEEDS tlik"OUcdium, I.ou, No Such Nerd ECONOMIC DEVELOPMENT i` Dollars to Address 1lnniel Priority Need (5 Years) ED Assistance to For-Profits(businesses) High $59,446.25 ED Technical Assistance(businesses) Medium/Low $991,319.38 Micro -Enterprise Assistance(businesses) High $222,260.00 Rehab; Publicly- or Privately -Owned Commercial/Industrial (projects) Medium $621,562.50 C/I* Infrastructure Development (projects) Medium - Other C/I* Improvements(projects) Medium $1,108,413.75 PLANNING Planning TOTAL ESTIMATED DOLLARS NEEDED: * Commercial or Industrial Improvements by Grantee or Nan -profit ** At this time the City of Miami does not operate any facilities. 2005-2006 Action Plan 104 Table 2C Summary of Housing and Community Development Objectives (Table 2A/2B Continuation Sheet) Obj I RH (b) 1 RH (c) 1 HA (b) Specific Objectives New Construction of Multi -family Rental: Increase the supply of affordable rental housing available to very low and low income residents through new cdnstruction. Section 8 Housing Assistance: Provide rental assistance to residents through the Section 8 Program. Single Family Rehab and Code iolation Elimination Assistance: Provide rehab assistance to homeowners for deferred maintenance, home repairs and elimination of code violations. Replacement of Unsafe Housing: Provide assistance to homeowners to replace unsafe housing structures. Program Multi -family Rental New Construction Program Rental Housing Develo • ment Program Section 8 Program Single Family Rehab Loan Program Emergency Grant Home Repair Assistance Program Single Family Replacement Housing Program Funding Source CDBG HOME SHIP Section 8 Program CDBG SHIP SHIP / HOME Expected Annual Units 31' Program Year 2005- 2006 250/yr 420/yr 50/yr 5/yr Performance Measure Housing Units Households Housing Units Housing Units Expected Units (5 ears) Program Years 2004- 2009 1,250 2,100 250 25 Actual (1999-04) 5-Year 375 420 259 6 2005-2006 Action Plan 105 Obj # Specific Objectives Program Funding Expected Performance Expected Actual Source Annual Measure Units (1999-04) Units 31' (5 Years) 5-Year Program Program Year 2005- Years 2004- 2006 2009 Affordable Homeownership portunities (LfO) - increase Homeownership 1 HO (a) New Construction of Homeownership Units: Increase the supply of affordable homeownership units through new construction. I Homeownership Development Program Homeownership New Construction Program SHIP HOME CDBG 95/yr Housing Units 475 l 92 1 HO (c) Homeownership Financing (Down Payment Assistance): Assist low to moderate income families obtain homeownership by providing financing assistance (i_e_ down payment, closing costs, and second mortgages). First Time Homebuyer's Financing Program Homebuyer's Financing Program American Dream Down Payment Program HOME SHIP ADDI 50 Housing Units 250 Combination of H.O. from Genesis Stimulate Housing Dew!, , i E I ti it } 1 HD (c) Tax Credit Assistance/Housing Credit Match: Provide Tax Credit Assistance to projects located in the Model Blocks and NDZs by providing matching funds and assuring that all municipal items on the Tax Credit application checklist are addressed in a timely manner. The Housing Credit Match is part of the New Construction of Multi -family Rental. HOME 2 projects/yr Approved Applications 10 projects at $250 DDQ each for 5 years 2 projects at $250,000 each per year I HD (i) Capacity Building to Non -Profits: Provide capacity building support to non-profit developers and assist such organizations to develop partnerships with private developers. Capacity Building/Technical Support CDBG 1 CDC 1 partnership # of capacity building support # of partnerships 3 CDCs over a period of 5 years 5 partnerships 3 CDCs 2005-2006 Action Plan 106 Obj Specific Objectives Program Funding Expected Performance Expected Actual # Source Annual Measure Units (1999-04) Units 31" (5 Years) 5-Year Program Program Year 2005- Years 2004- 2006 2009 COMMt1NTFY DIVE'LOPMENT O CTIVES Public Services Objectives- I PS (a) 1 PS (b) Elderly Meals and Senior Center Support: Increase the quality of health for elderly citizens through the reduction of malnourishment and isolation of income groups through de -concentration of housing for lower income elderly persons. Elderly Meals and Senior Center Support CDBG 700/yr Number of persons served 3,500 4,000 1 PS (c) Transportation: To link elderly persons in need of support services to essential community resources. Transportation Services CDBG 300/yr Number of Persons Served 1,500 2,000 2 PS Disabled Services: Amplify the supply of supportive and transitional services required to enable persons with special needs to live with dignity and independence. Disabled Services CDBG 40/yr Number of Persons Served 200 550 3 PS Youth Services: Prepare children and youth to transition into successful adults. Youth Services CDBG 100/yr Number of Persons Served 500 750 4 PS Childcare Services: Endow a suitable living environment to low income children and families that helps to meet both quality of health and sustains economic self-sufficiency through the provision of quality childcare services. Childcare Services CDBG 300/yr Number of Persons Served 1500 2000 2005-2006 Action Plan 107 Obj Specific Objectives Program Funding Expected Performance Expected Actual 0 Source Annual Measure Units (1999-04) Units 31' (5 Years) 5-Year Program Program Year 2005- Years 2004- 2006 2009 6 PS Employment & Training: To prepare youth Employment & Training and unskilled adults for entry into the labor force. CDBG I00/yr umof peNons er Served 500 0 Economic Beve1°. I ment IN I'ectives 1 ED Job Creation: Create employment opportunities in financially distress neighborhoods while promoting job creation in the business development corridors, to include areas within the vicinity of the Job Creation CDBG Number of persons served 125 8 CBC's as well. 2 ED Job Retention: Develop business attraction and retention programs within the business development corridors creating a chain reaction that will sprout economic development activities for low and moderate income residents. Job Retention CDBG 16 Number of Persons Served 80 8 3 ED Micro -enterprise: Improve the financial growing potential of small business firms in targeted business corridors that will increase Micro -enterprise Number of the demand for labor and create living wage jobs. CDBG 25 businesses assisted 125 4 4 ED Technical Assistance: Secure small business incubators, loans that provide inexpensive manufacturing space to include support Technical Assistance Number of services, managerial advice and consulting CDBG businesses 500 25 services for business activities that benefit low and moderate income persons. 100 assisted 2005-2006 Action Plan 108 Obj 5 ED Specific Objectives Commercial and Industrial Improvement: The improvement of street trees, landscaping, sidewalk replacement, awnings, signs, lighting and other exterior facade improvements. Program Commercial and Industrial Improvement Funding Source CDBG Expected Annual Units 3155 Program Year 2005- 2006 480/yr Performance Measure Number of businesses assisted Expected Units (5 Years) Program Years 2004- 2009 2,400 Actual (1999-04) 5-Year 2,500 6 ED Code Compliance: Improved safety and appearance of commercial corridors and neighborhoods_ Code Compliance CDBG SO/yr Number of businesses ass isted 250 NA Public aci eaud ParkShiectivCS • 1 PP (a) Manual Artime AC Installation 1 CIP Project CDBG To Be Completed 2Q 05 AC Installation To Be Completed in 2005 NA 1 PP (c) Park West Entertainment District: Land Acquisition and improvements CRA Project CDBG To Be Completed 1Q 05 Land Acquisition and Improvements To Be Completed in 2005 NA 1 PP (d) Overtown Gazebo: Land Acquisition and improvements CRA Project CDBG To Be Completed IQ 05 Land Acquisition and Improvements To Be Completed in 2005 NA 2005-2006 Action Plan 109 Table 3 Consolidated Plan Listing of Projects REFER TO FY 05-06 HUD MATRIX Applicant's Name Priority Need Project Title Project Description City of Miami Location Objective Number Project ID HUD Matrix Code CDBG Citation Type of Recipient CDBG National Objective Start Date (mmldd/yyyy) Completion Date (mmlddlyyyy) Performance Indicator Annual Units Local ID Units Upon Completion The primary purpose of the project is to help: the Homeless 1 Funding Sources: CDBG ESG HOME HOPWA Total Formula Prior Year Funds Assisted Housing PHA -- Other Funding Total Persons with HIV/AIDS Public Housing Needs Persons with Disabilities 2005-2006 Action Plan 110 Attachments ➢ HUD Matrix ➢ MAPS (NDZ) 2005-2006 Action Plan 111