HomeMy WebLinkAboutExhibitCity of Miami
Department of Community Development
Housing Program Summary
OLICY — DEVELOPERS
Program Description
Provides assistance to developers for the construction or rehabilitation of
affordable rental units
Funding
HOME, SHIP, CDBG
Repayment
Requirements
Zero percent construction loan converted to a 3% permanent mortgage on the
property once project is completed. Payment of principal and interest will be
required during the term of the loan. Or, payment of principal during the term of the
loan and accrued interest to be paid at the end of affordability period.
Determination for repayment is made at the sole discretion of the city. For non-
profit developers, the loan will be forgivable at the end of the affordability period.
No payment of principal and interest will be required during the affordability period.
Minimum/Maximum
Subsidy
$1,000 per unit to HUD Maximum subsidy cap as published based on bedroom
size.
Affordability Period
30 years
Security
Recorded mortgage on the property. In addition, affordability period to be enforced
by a restrictive covenant that will run with the land. In the case of phased
developments, the covenant will run with the land making up all phases of the
development.• In the case of a developer default, the restrictive covenant will
continue throughout the affordability period.
Default penalties
i. Full payment of construction loan (total disbursed amount) and accrued
default interest at the maximum rate allowed by law depending on loan
amount.
ii. Developer and all principals with a minimum of 10% share in the development "
will be barred from participating in any City of Miami programs for a minimum
of five (5) years
iii. If the City assistance is used for land acquisition for any predevelooment
activity). profit realized from the sale of the land will be considered program
income and will revert to the City.
iv. Recorded covenant will not be removed upon sale of the property.
Developer Fee
Up to 25% of the allowable 16% of total project costs. Reimbursement will be.
made on project completion.
Service Charge
1% of City Loan up to a maximum of $15,000 will be due and payable as good
faith commitment fee for for -profit developers, 30 days after funding approval. No
commitment fee for non -profits
Minimum ratio of City
funds to other funds in
the project
Will be determined on a project by project basis
Revised 2-02-06
(re_
Type of Assistance
Maximum Rent
Miscellaneous
Construction hard costs, soft cost (predevelopment), or first mortgage refinancing
As published by HUD
1. Income of renters must be at or below;80% of Area Median Income as
published by HUD
2. Priority and preference for projects in Neighborhood Development Zones
or Model Blocks
3. Selections from Request for Applications and or Proposals. Projects will be.
selected based on rankings and merits of the application.
4. Annual compliancemonitoring for duration of affordability period.
Revised 2-02-06